In This Episode
Our co-host Buck Sexton is back from his 45-minute interview in the Oval Office with President Trump – and as could be expected, it came with a bombshell throwaway comment. It’s not President Trump’s opinion of “the single greatest mistake in America’s history” or even his response to Porter’s question over whether or not some Cabinet members are really conspiring to use the 25th Amendment to overthrow him. Instead, it has to do with his own Attorney General – who if anything has been eclipsed of late by his Deputy Attorney General, Rod Rosenstein, whose fate is hanging in the air after The New York Times reported he suggested secretly recording the President. Between that and the latest Kavanaugh allegations – not to mention Porter’s deepening respect for Stormy Daniels – there’s a lot to unpack in this week’s Stansberry Investor Hour episode – and that’s before Buck sets off to interview with Trump’s newest antagonist and obvious 2020 presidential hopeful, porn star lawyer Michael Avenatti.
Recording: Broadcasting from Baltimore, Maryland, and New York City, you're listening to the Stansberry Investor Hour. Tune in each Thursday on iTunes for the latest episode of the Stansberry Investor Hour. Sign up for the free show archive at investorhour.com. Here are the hosts of your show, Buck Sexton and Porter Stansberry.
Buck Sexton: Hey, everybody. Welcome back to another amazing, insightful, and raucous episode of the Stansberry Investor Hour. I am nationally syndicated radio host Buck Sexton, and I'm also co-host of Rising on Hill.tv with Krystal and Buck. With me as always, none other than the founder of Stansberry Research, Mr. Porter Stansberry. As for Country Club Guy, he's doing country club things. He's swinging some golf clubs and he's in a tournament today, so he can't be with us, but we've got Porter here, the man himself. Let's get to it.
All right, so, Porter, it's crazy today in D.C. We had this bombshell from Michael Avenatti. For those who just need a quick refresher, he's the porn star lawyer for Stormy Daniels who accused the president of – not even really accused, just says that she had an affair with him, so it's not a criminal thing. It's just a, "He had sex with a porn star" thing. He has now released the third major – and it's a named person, photos out there, sworn affidavit – allegation of sex parties involving Supreme Court nominee Brett Kavanaugh. He is not alleged to have actually raped anybody himself, but to have been present at 10 named parties, from what I understand from this sworn statement. I mean, Porter, I'm sitting here. We can go through ___ I tweeted out, it's on the record last night. We all know that tomorrow they're going to come out with a third accusation and it's going to be the craziest one yet. The media's going to act like this isn't coordinated. Porter, this is insane.
Porter Stansberry: I think it's hysterical. I think that all this is just a – I love it, in a way, because it just reveals what an absolute shit show politics is and why – no offense, Buck – why everybody should just avoid it.
Buck Sexton: No, it's fine.
Porter Stansberry: A couple things. First of all, it occurs to me, I've always admired Stormy Daniels because she took her – she took her best assets and she leveraged them the most. Who was the – remember the – I always appreciate this about people who accomplish incredible things with zero talent because it reminds me of myself. Who was the Marky Mark guy?
Buck Sexton: Mark Wahlberg?
Porter Stansberry: Mark Wahlberg, right. Mark Wahlberg created a hit song where he doesn't even sing, and this is before auto-tune. There's no singing in that song. Where's the Funky Bunch today? No one knows. Marky Mark is no longer Marky Mark. He's now Mark Wahlberg. He still can't act at all, but he's been in blockbuster movie after blockbuster movie. I mean he's a guy who took an underwear ad and a set of abs and he probably has built a $100 million fortune with it in entertainment. That is impressive.
Now, Stormy Daniels – forgive me for being a little pejorative here, but she's basically a white trash hooker. I mean that's – come on, that's what we're really dealing with. To go from white trash hooker to porn star to making a lot of money to getting paid off by the president, I think you've got to respect that. The only thing I loved about Stormy was she never, ever alleged that she didn't get exactly what she was expecting out of the deal. When the 60 Minutes guy said, "Well, you know, did President – " or "Did Trump force himself on you?" or whatever, she was like, "No, I'm not a victim. I knew what was going to happen when I go to a middle-aged man's hotel room," which I always admired for her. This latest allegation, I think, in a way is brilliant. I've got to hand it to the slimy lawyer, Avenatti. All the affidavit says was that, if you read it carefully, all it says is that there were parties where grain alcohol was served. That's all it says. This woman says she was gang raped because she was fed either Quaaludes or grain alcohol. She doesn't say it was – she didn't say she was drugged. She didn't say – she doesn't really say affirmatively that anyone drugged her. She just says she got drunk and a bunch of guys had sex with her, and she was an unwilling sexual participant. By the way, Brett Kavanaugh was there. So what? How many times have you been at a party in your life where grain alcohol was served?
Buck Sexton: Well, there's a – I mean, a lot, and there's a reference to how Kavanaugh –
Porter Stansberry: All right. All right. How many times when you – how many times when grain alcohol has been served, mixed with Kool-Aid mixture, usually, did girls drink too much?
Buck Sexton: Yes, that's what happens, but Porter –
Porter Stansberry: Every time.
Buck Sexton: She mentions spiking the punch.
Porter Stansberry: How many times in those cases do girls the next day claim that they were unwilling sexual participants? Not infrequently. In other words, what is – what exactly is the charge here? That Brett Kavanaugh went to everyday social events while he was in high school and in college?
I guarantee, too many times, those same exact things happened at the parties that I went to at Winter Park High School – Go Wildcats! – and at the University of Florida – Go Gators! I had nothing to do with it. I wasn't the guy serving the grain alcohol. I was telling the girls, "slow down." Although it is true that I used to take gin and juice to parties in high school, and gallon jugs. I would offer to trade girls, because I preferred beer. I would offer to trade girls for a Bud Light or something like that in exchange for a cup of gin and juice. It wasn't grain alcohol, but it was gin and juice. I knew that girls were going to get completely snockered, which they did. My favorite was old "Half-a-Can – Half-a-Can Heather." If you went to high school with me, you know who Half-a-Can Heather is. Now, to my knowledge, no one ever abused Half-a-Can Heather. We just knew she was going to get drunk and pass out in someone's car, which she did. Then you're going to take her home and explain to her parents that she must've gotten sick, which we all did. Anyway, I don't think there's anything unusual about this. I think it's amazing that the media falls for this kind of stuff. This is an affidavit that testifies to nothing related to Brett Kavanaugh.
Buck Sexton: Yes. Well, also I find it completely – there's a whole bunch of things. I mean, Porter, we're combing through it. I mean, the newsroom here, as you can imagine was like a – it was a whirlwind of activity when this first came out, especially because we were supposed to have Michael Avenatti with us today on set. It looks like now he's doing a phoner at 3 o'clock with us, but we –
Porter Stansberry: Oh. Don't have much time.
Buck Sexton: Yes. No, that's all right. Ah, whatever. I've got co-hosts.
Porter Stansberry: Michael Avenetti is far more important than I am.
Buck Sexton: Avenatti is now –
Porter Stansberry: Avenatti.
Buck Sexton: – unsure of being flown on Anderson Cooper's private jet to New York City for whatever interview he's going to do. I'll just say this: A few things that come up about – by the way, this is the biggest story in the country by far. People are saying it's a fight for the soul of the nation and the presumption of innocence.
Porter Stansberry: Oh my God.
Buck Sexton: It's turned into a really big thing. A few things about this third allegation: One, I straight up called it last night, on the record, publicly. Not because I'm some genius, but because, Porter, it is so friggin' obvious what is going on here in terms of the coordination, the timing, all that stuff, right. At every stage, "Oh, we're going to have this person testify under oath. Okay, now it's getting close. Oh, that's right, we're going to have a new allegation now." That's one part of it.
The other part of it that I think is really important is, when you, as you said, look through what's been alleged in all of this, this woman who came forward, Swetnick, is saying that when she was – I believe she, she's at least two, maybe three years older than Kavanaugh. She was a college student who was showing up. Therefore, she's an adult. They're showing up at high school kids' parties where there are gang rapes occurring. Not only does she never tell anybody about this –
Porter Stansberry: Oh, she said she told two people.
Buck Sexton: No, no, no. Well, she told two people about her own experience she says. She didn't tell anyone about the other – I mean, this was supposed to be happening on a regular basis, that she was aware of this happening.
Porter Stansberry: Oh, that's silly.
Buck Sexton: Porter, look Porter –
Porter Stansberry: Again, it's just all about how you characterize it.
Buck Sexton: Nobody else at these parties says anything? No way.
Porter Stansberry: Listen, you could've characterized any house party that me and my friends organized or attended in high school or in college as a sex party if you wanted to. Somebody was having sex. Unfortunately, it wasn't me. I mean come on. That's what 15-, 16-, 17-, 18-, 19-, 20-, 21-, 22-, 23-, 24-year-olds do. They drink too much and they fornicate. That's what everyone does at that stage in their lives. It's not abnormal.
Buck Sexton: I can tell you this.
Porter Stansberry: There's nothing to talk about because it happened every weekend.
Buck Sexton: I knew people in high school, including early on in high school, growing up in New York City in the '90s, who went to rehab for cocaine. I mean teenagers, right, and that's how intense it could be in the city. I never in my entire young adult life heard of anything like what is being alleged in this D.C. area prep school.
Porter Stansberry: Oh, please. Oh, please. What is being alleged? They're being alleged that they were serving grain alcohol –
Buck Sexton: Porter, wait, hold on, wait.
Porter Stansberry: – and that there were people engaged in sex at these parties.
Buck Sexton: No, no, no. She's alleging that there were gang rapes going on –
Porter Stansberry: No, that's –
Buck Sexton: – of, like, five guys and –
Porter Stansberry: That's a ridiculous exaggeration of the truth. It has to be.
Buck Sexton: Well, that's what I'm saying. That sounds crazy.
Porter Stansberry: By the way, there have been any number of these same kind of accusations that were leveled at frat guys, right. I mean, this happened to me. I was in a fraternity. It was a bunch of mostly loud, bad drunks, but they're not rapists. By the way, I said on another show – we all have mothers and sisters and girlfriends, and 90% of the girls that were at our fraternity parties were somebody's girlfriend. I mean, there's no way you're going to get – I mean, you can't even imagine what happened to you if you were in my fraternity house and you even touched a woman where it wasn't invited, you would've gotten your ass kicked. The idea that there was an upstairs room where there were five guys raping some poor girl, impossible. Just impossible. Could've never happened. There was never that privacy. There was no way a secret like that gets kept, and there is no way those guys wouldn't have been thrown out of the fraternity if they weren't beaten up that night. The idea that there is a culture of rape or abusing women inside men's organizations is absurd. That is what all of these female activists presuppose, and it's just false. I've got one concluding thing to say about this that I think is really important. This, I think, explains the visceral reaction I have toward these kinds of allegations. If you're going to bring an allegation like that, in my opinion, you had better have a whole ton of facts to bring it up. If you don't, then as a woman, you're exactly the same kind of person that I loathe in men. What do I hate in a man? I hate men who assume that women are promiscuous. I hate men that assume that a woman is there to provide them with sexual gratification. What do I hate in men? I hate men that don't treat women with tremendous respect. I absolutely will never tolerate that in my presence, and I've never seen it in any of my peers. Ever. The exact same kind of person, the exact same chauvinism is present in women who assume that all men behave that way, which is absolutely ridiculous. It's crazy that the leadership of the Democratic party, who has said, in this case, because it's a Supreme Court justice potentially, he doesn't deserve the presumption of innocence. There doesn't need to be some kind of proof that's offered. The fact that he's simply been accused bars him from serving. That is absolutely antithetical to everything that we hold dear as Americans.
Buck Sexton: Yes. No, I'm with you. This is the crazy – I mean, Porter, we have lived in a country now where, for over a year, people have been saying that the president of the United States worked with a foreign power to steal an election from Hillary Clinton and is an agent of that foreign power. We're just going to find that evidence any day now. Those people, by the way, are delusional. They've been shown to have actually concocted and fabricated a lot of that evidence, and that's the country we've been living in.
What we've seen in the last two weeks is even crazier than that. It's even a level beyond, in terms of what is being said here. I mean, the way the media reports on this, they were across the board this morning, before the Avenatti allegation saying that there were people corroborating the second allegation. By corroboration, what they meant was that, yes, she had told people a couple years ago that this was a thing that happened to her. That's not really corroboration. If I told you – if I told 100 people, Porter, that I was born in 2000 B.C., the media should not report on that as, "100 People Corroborate Claim That Man Is 4,000 Years Old." That's not how it works.
Porter Stansberry: How about this? How about this? I can't serve on the Supreme Court because one time I was inside a bank and it was robbed.
Buck Sexton: Yes, I mean –
Porter Stansberry: Even if you assume everything this woman is saying is true, which I find completely implausible, there are not gangs of high school rapists running around elite prep schools. It's completely absurd. It's completely absurd. There are stories I wish I could tell. There are no stories like that. I mean, no way. No one would put up with it. No one would.
Buck Sexton: Yes, it's insane. It's insane, Porter. Just be happy you're not here in the swamp. The swamp is like –
Porter Stansberry: It's just laughable. It's laughable to me that anybody believes those narratives. Don't give me the stuff about, "Women need to be believed." Absolutely, women need to be believed. You know what? They could really help their case if they would scream and yell and report what happened to the police. How about that? I promise you, if I get raped on the way home tonight, I'm not going to go home, get in the tub, and cry about it. I'm going to want someone's balls cut off and somebody hung from the highest tree branch. I don't – as a society, we can't dignify outrageous accusations when there is zero proof. That just can't be done. Otherwise, we have no due process. We have no process at all.
Buck Sexton: Yes. I can tell you this: I'm actually speaking to people in the White House, which we could talk about. We've got an answer to your question for the president, Porter.
Porter Stansberry: Yes, let's move on. You had a nice afternoon meeting with President Trump. What was he like in person? Did he seem delusional, like you were wondering if someone was going to invoke the 25th amendment?
Buck Sexton: No. I spent 45 minutes with the president in the Oval Office, asking him a whole array of questions. Obviously, we printed some stories on it at thehill.com right afterwards. We broke a lot of news. For one thing, he said that he didn't have an attorney general, which then – I mean, that just – that went viral, because that's a huge thing for the president of the United States to say. The reality of dealing with President Trump is, Porter, this guy is – he is magnetic. He is an incredible storyteller. He has kind of an almost hard-to-believe energy. I mean, he'll just go off and talk about things and you find yourself sitting there, like, this guy is a – he's really a world-class entertainer. I mean, I can put it to you that way. He would be – I mean he was, obviously, a very successful TV host. He was really interested in that stuff. He is honestly pissed off about the Russians. He's just like, "These people are nuts," and that's his honest – "They're just crazy, like, there was no – I didn't work with the Russians. This is just complete garbage."
Porter Stansberry: It's an absurd allegation. Again, where's the proof? The only proof I have seen is that the Democrats were fabricating evidence.
Buck Sexton: That's right. He really, at his core, he's like, "These people are just completely" – He's like, "Tell me you don't like my tax cuts. Tell me you think that I'm like mystery women. Like, fine, we can talk about that. Don't tell me that I worked with the Kremlin to steal the election from Hillary, the worst candidate ever, who didn't go to Michigan or Wisconsin. Give me a break." I did get to your point about the Middle Eastern troops. He flat-out said – he said the worst mistake, I believe, in the country's history was going into the Middle East. So he thinks this is a disaster.
Porter Stansberry: Did you see his speech yesterday at the UN?
Buck Sexton: Yes.
Porter Stansberry: I thought it was masterful.
Buck Sexton: Yes.
Porter Stansberry: By the way, I have never been a fan of Trump. I didn't care for him personally. I think he's done a great job as president. I'm thrilled at his policies. I just thought he was a bore. I didn't like him on The Apprentice or anywhere else. I've never met him in person. My opinion could change. I wasn't a fan of his. For me to say, I think that was the greatest speech that has been given in public by a U.S. president on international topics since Ronald Reagan was at the wall in the late 1980s – "Tear down this wall, Mr. Gorbachev." When our president said, "The Middle East oil producers are ripping the world off," that is a thundercloud. That is Zeus from the temple saying, "You guys are now completed effed, because we've got plenty of oil and we don't have to put up with your garbage anymore." I mean, that is American triumphalism. That is fantastic stuff. I can't believe he said it.
Buck Sexton: I like when they laughed at him very briefly and he kind of looked at them like, "Okay, you guys are going to laugh? I'm the leader of the free world and our economy's kicking ass. I don't really care what Kazakhstan and Botswana have to say about this."
Porter Stansberry: Shithole countries.
Buck Sexton: Can I ask you a finance question, by the way?
Porter Stansberry: Sure, shoot.
Buck Sexton: I'm curious. One thing that came up this morning on the radio – I heard it on NPR or one of those things – is that everyone's saying, "Oh, Nike. Nike stock is up and the sales are up," and all this stuff. Then, at the very end, they go, "Well, but that's for the last quarter." Meaning that we don't really know what the reaction has been to this latest campaign that people were saying – do you have any thoughts on that one, by the way? Do you think that Nike –
Porter Stansberry: Yes, I thought that what Nike did was really foolish. Just as foolish as Under Armour's CEO joining one of Trump's faux counsels, right. It was always counsels. They don't mean anything. It was a way for people who are Under Armour detractors to be divisive.
I like what Michael Jordan used to always say about it. People would ask Michael Jordan all the time about his politics, and he'd say, "I don't talk about politics. People on both sides of the aisle buy tennis shoes or buy basketball shoes." That's exactly right.
I think you make a grave mistake when you're running a consumer brand to ever take a stand at all on politics. I think Nike has and will be revealed to have made a huge mistake. There are a number of people that have reached out to me from our audience who had been longtime devotees of Nike who will now no longer use the brand. There are a number of colleges that will be separating their agreements from Nike going forward because their alumni won't have it. Colin Kaepernick, like it or not, is seen as someone who is disrespectful to the military and to veterans and to the flag. The idea that he's protesting about something is completely lost on a large segment of the population. They don't care what he's protesting about. He's disrespecting the military, veterans and the flag.
For Nike to put that guy at the face of their advertisements, it's as tone-deaf and as idiotic as Eddie Lampert's Sears – no, no, sorry, not Eddie Lampert's Sears. It was, who was the fancy – ? It was Ackman's JC Penney. Ackman's JC Penney, who put a lesbian couple on the cover of the JC Penney catalog. Now, you guys want to call me a bigot or something, go ahead. I do not care what anybody does in their bedroom. Makes no difference to me at all. In fact, if you do really weird stuff, I might even be interested in hearing about it just because it's tawdry and that's interesting to human beings, including to me. I don't want to participate, but I think it's pretty crazy. I don't care at all. I'm not a homophobe, I'm not a bigot. None of that bothers me. I don't care what you do in your bedroom. What I do know is that most of the overweight, middle-aged women who are clinging to their marriages and who buy clothes from JC Penney are not going to relate to the lesbian slick couple on the cover. I just think that these are these great faux pas in business, and I suspect that the Kaepernick case will be one of them. The idea that the fans that Nike gains in the inner cities is going to offset all of the privileged white middle class that's buying Nike's expensive shoes is crazy. It's just not – it's a bad business decision.
Buck Sexton: Do you think that there's – is there a play, maybe, then to short Nike, or is that just –
Porter Stansberry: No, no, no, no, no, no. These things are all in the wash. I mean, I don't think it's going to destroy Nike as a business. I think it doesn't build Nike's intrinsic value. It does not add to their corporate goodwill. As a result, it was a very poor management decision. I don't think it's going to result in Nike going out of business. I don't think it's going to result in anything other than a minor impairment to earnings over the next three or four years.
Buck Sexton: Like a temporary blip in the stock, but not anything that's structurally significant.
Porter Stansberry: Yes. By the way, just so you know my own position. Obviously, Under Armour is local to Baltimore, where my business is located. The CEO of Under Armour is in the same social circles as I am, and locally in Baltimore, although I've never met him. His kids go to the same school. He lives down the street from me. I mean, you'd think I'd be a huge fan of Under Armour, and I am. I support it as a local business, but I had been a Nike customer since I was 12 years old. I never switched to Under Armour. I've always been a Nike guy. I'm just saying – I'm not saying it because I have an axe to grind about Nike or because I'm an Under Armour guy. I'm just saying that I think it was a very... obvious, stupid corporate blunder.
I'll give you a great example. Disney World hosts an enormous event for the gay community called Gay Day at Disney World. I can't remember what day it is. Hopefully we have some homosexual listeners who will fill in the details for us, but it's sometime in the summer. It was always a difficult day for me when I worked there, and I worked there for five years during my time in college. I had a great second junior year, by the way. I highly recommend that to anyone who's entering college.
Anyways, I was a lifeguard. I was one of the lifeguard managers at the Contemporary Resort, which is on the monorail loop at the Disney World Resort in central Florida. The lifeguard costume that was approved was you had to wear these bright red shorts. On Gay Day, one of the things that the homosexual community does to identify each other is they wear bright red clothes. Anywhere I went in the park that day with my bright red shorts on, I was attracting attention from a subset of the population that normally ignores me. That was always interesting. That was always an interesting day.
My point about all this is just that Disney World doesn't do anything officially to embrace Gay Day. They don't have Gay Day promotions. They don't market Gay Day corporately. The reason why they don't do that is because so much of their brand is about traditional family values and so much of their audience is children that embracing that officially would put at risk their main core constituency. Whether Nike knows it or not, its main core constituency is wealthy, middle-class, and largely rural and white. They're stupid if they don't understand that putting Colin Kaepernick on the face of their advertising is going to alienate them from their core demographic. Now, listen, one last political question for you, and then I think we'd better get to something that can help people make money. Why on Earth has Rod Rosenstein not been fired?
Buck Sexton: If he were fired, and I think he wants to be fired. I mean that's why you had all those news stories earlier this week saying that he was about to either resign or be fired, then he becomes a hero to the resistance. They'll say that Trump is obstructing the Russia investigation because Rosenstein is the one who oversees the Russia investigation. Mueller's the one running it, but Rosenstein oversees it because Jeff Sessions, my buddy, recused himself from overseeing that investigation. That's why he's not being fired. I just want to go and say that the story about him saying that he was going to wire tap the president or he was considering it, and that they should remove him with the 25th amendment. I do not believe that he was joking. I believe that he said that. A lot of other people in the room have come out to say that he was not joking.
Porter Stansberry: That's crazy.
Buck Sexton: That him saying he's joking now is because even with all the other political realities, a senior government employee like the Deputy Attorney General saying that about the President of the United States should be a fireable offense. Porter, if you had employees that were walking around saying, "We're going to have" --
Porter Stansberry: Done, done, done. Not only that, I mean he would've never set foot on campus again. If I had an employee who was telling our customers, for example, that they believe that I was incapacitated mentally or emotionally and that they were planning on recording me secretly to embarrass me or to try to have me removed by our board or something, I'd fire them immediately. Absolutely.
Buck Sexton: Of course.
Porter Stansberry: No question.
Buck Sexton: No question. Yes.
Porter Stansberry: Yes. Sorry. You're done.
Buck Sexton: This is the situation we're in now where that's the reality of who Rosenstein is but because of the politics around it, they won't fire him. I mean my guys here in the newsroom are actually working on – we got a couple things. I mean I know this week has already been crazy for those that care about the news and are following it. We got some stuff about that investigation that, when people find out, they're going to realize that Papadopoulos, for example, that guy who they were claiming was the reason for starting the investigation. They knew there was no need to investigate him. It was totally a pretext. That's going to come out soon. You heard it here first. Very soon.
Porter Stansberry: Wow, that guy, we interviewed him.
Buck Sexton: No, we interviewed Carter Page, the other guy who was the pretext for the investigation. You interviewed him.
Porter Stansberry: Yes. He seemed completely innocent to me. I mean –
Buck Sexton: He is completely innocent. The whole thing's a joke. Imagine if you found out, Porter, that you were like, "Hey, I want to volunteer. I really believe in this political campaign." Then –
Porter Stansberry: Well, I would never do that because I know what happens to those people.
Buck Sexton: That's right. Then you found out that the federal government was essentially tapping your phone calls and your emails for a multi month-long period and there was no justification for it. I mean if you believe in civil liberties and the constitution –
Porter Stansberry: Well, I would be furious. I'd be furious. There's no probable cause and not engaged in law breaking. Come on. It's ridiculous. Is it just me or does it seem like, in this administration, there are more deputies and assistants and people who are three or four rungs down the power structure who are more principally involved in what's going on than any other administration. I mean I just get the sense that it's like the third and the fourth people in the office who are really fighting the Trump-resistance wars.
Buck Sexton: Yes. I mean people have said I actually, I called it a Cabal and then the White House started using that. They reached out to me and said they liked that. I'm just saying that might have happened. It is a Cabal, though. It's a crew and that's what people need to understand. All it takes is six or seven people who have enough authority in an organization. I love this, Porter. One of the explanations that you got from one of these conspirators against Trump and the DOJ was, "I could never do this because of all the oversight." That's not how these organizations work. If you're the top dog in the office, you run that portfolio. I mean the guy – wasn't there one guy who basically destroyed Bering's bank in the UK? It was one guy.
Porter Stansberry: Yes.
Buck Sexton: There's oversight but one guy can do a lot of damage.
Porter Stansberry: Yes, one guy can do a lot of damage. I've seen it in my own company. We had one guy who almost bankrupted me. Woo. Glad that didn't happen.
Buck Sexton: Do we have Jedidiah by the way because we got to get –
Porter Stansberry: Hey, one last thing about – one last – yes, let's go to our interview, Jedediah. I also wanted to ask you a question because I'm sensitive about this issue. You said that Anderson Cooper has an airplane.
Buck Sexton: I was kidding about that.
Porter Stansberry: Oh.
Buck Sexton: I'm sure he does have a private jet but I was kidding.
Porter Stansberry: How does he have a private jet? It's got to be CNN's private jet or Time Warner's private jet, right? It's not his private jet.
Buck Sexton: No, he probably has a private jet.
Porter Stansberry: No way.
Buck Sexton: Hey, Porter, he makes $15 to $20 million a year.
Porter Stansberry: Jesus. That's crazy. For what?
Buck Sexton: I don't know. Not being as good as his job as Buck Sexton. That much I can tell you.
Porter Stansberry: I thought his interview with the white trash hooker was pitiful.
Buck Sexton: Yes. CNN has turned into a parody of itself really.
Porter Stansberry: All right. Well, I guess there's things I still don't know about the world. Let's get to Jebidiah Bila.
Buck Sexton: Jedidiah J-D-E-D.
Porter Stansberry: Jebediah.
Buck Sexton: Jedidiah. J-E-D.
Porter Stansberry: Jedidiah. Oh, look at that. That's an interesting spelling. Jedidiah.
Buck Sexton: Today our guest is Jedidiah Bila. Jedidiah is a two-time Emmy-nominated television host, former cohost of The View and a regular on Fox News. Jedidiah's the author of the upcoming book #DoNotDisturb: How I Ghosted My Cell Phone to Take Back My Life which is out October 9th. Please welcome everybody Jedidiah Bila, good friend of mine. Great to have you here, Jedidiah.
Jedidiah Bila: I am here. I'm listening.
Buck Sexton: Hello.
Jedidiah Bila: It's fun for me to listen to people try to pronounce my name. It's always – I was just sitting back and listening.
Buck Sexton: Jedidiah, I have the distinguished honor of introducing you to the founder of Stansberry Research, the guy –
Porter Stansberry: The name bumbler. You can just call me the name bumbler Jedidiah.
Buck Sexton: What I was going to tell you, Porter, is not to be upset at all about it because I called her Bila for the first two years I knew her. Her last name I got wrong.
Jedidiah Bila: He did.
Buck Sexton: People get her first name wrong. Good to have you, Jedidiah.
Jedidiah Bila: Thanks for having me. I heard a little bit of what you guys were talking about. Does anybody have a private jet for me or is that not going to happen?
Buck Sexton: I'm hoping at some point. Some things. For Porter's background, Jedidiah's been a host at Fox News, she was a host on The View, which I don't know if Mrs. Porter is a viewer of but it's very well-watched. A few million people every day turn into The View. She has a – how would you describe it, Jedidiah? Conservative rationalist perspective? What would you say?
Jedidiah Bila: I call myself a freedom lover but I hate these labels because then everybody decides who you are based on the label. I guess I'm a libertarian conservative but I like my freedom. I don't like to boss people around. I don't like to be bossed around. I like limited government, low taxes. I want people to keep more of their money. That about sums it up.
Buck Sexton: Porter and I were talking about this before. Porter, there's mansplaining and there's Porter-splaining as we like to say. Porter and I were in complete agreement about what's going on here with this Kavanaugh stuff. I would certainly like to hear a lady's perspective on this one, especially one that I respect as much as you, Jedidiah. What the heck is going on here?
Jedidiah Bila: It's insanity and I feel like every day I wake up and there's a new allegation. I've been saying the same thing since the start which is that none of us know what happened 30-plus years ago and in some cases, 36 years ago and in some cases 30 years ago. We weren't there. For me to wake up tomorrow or today or yesterday and just decide that he's guilty is completely absurd. I've been saying bring these people in. Let's have them testify under oath. Let's have him testify under oath. Let's see what everybody has to say. We need evidence. We need corroboration. Corroboration, by the way, doesn't mean that, "Oh, one of these accusers told her friend and now the friends comes out and says 'Oh, yeah, she conveyed that story to me.'" No. Corroboration means that you were at the scene, that you witnessed the incident, that there's evidence that you can provide. I don't see any of that as of today. Not only that, you hear a lot of stories. "Oh, this accuser doesn't want to provide her therapist notes forwarded now," someone on Twitter was saying. "Oh, we're not going to provide therapist notes. We'll provide the results of the polygraph but not the therapist notes." There's no proof now. Now this new accuser that Avenatti has, Avenatti, however you say his name. Which, by the way, he tweeted a photo of her out saying, "Oh, I want everybody to protect her privacy but here's exactly what she looks like." I'm wondering if next maybe we're going to get her address, all the locations she's lived, worked, kids go to school. I mean he's just ridiculous. This is his political campaign that he's launching. He doesn't care about any of these women, as he's made abundantly clear in my opinion when I watch him. I don't understand how, just using my common sense. Once again, I don't know what happened. I'm awaiting evidence. If it turns out he did these things, it's horrible. How could these parties – now this new charge of him being involved in these gang rapes and these lines of girls that were – lines of guys, I'm sorry, that were lining outside of doors and raping these women at these high school parties. How could that have gone on? You're going to tell me not one person told anybody about it? Nobody told their friend, their parent. Nobody reported it at the time. There's tons of witnesses at a party. There's no witnesses coming forward and saying, "I was there. I was raped. I was" – why hasn't she named any of these people? Why hasn't she named a single person? She's saying that she was raped. Where is this –
Buck Sexton: Yes. I've been saying that too, Jedidiah. She'll name Kavanaugh as somebody who was at a party but not the people who actually violated her at the party or the people that were closer to the actual incident. Well, one thing I think is interesting in your background. So, Porter, Jedidiah is very connected in the media, worked at all these big places. Her background is as a person who worked as a dean of, it was a high school right, Jedidiah?
Jedidiah Bila: That's correct. I was a teacher, grade seven to 12. I was academic dean of a high school.
Porter Stansberry: You know how good high school kids are at keeping secrets.
Buck Sexton: Yes, exactly. You have a particular perspective here.
Jedidiah Bila: It's unbelievable. No, you can't – I mean somebody does one small thing and it spreads throughout the school. I have a hard time believing plus she was in college at the time. Why is she going to high school parties? Let's say, okay, she had friends there, whatever. You keep going back? I mean I don't understand how this – it just doesn't make sense to me. Logically, that doesn't mean it wasn't happening but then I have larger questions about what's going on in this world that you could be at a party like this and no one says anything. That just doesn't – especially, remember, we're going way back in time now. We're going decades ago at a time when promiscuity and things like that – this would be a huge scandal for a school. I mean I just – I have a very hard time believing. Now, look, if they turn up witnesses and people come up and say, "I was raped and now all of the sudden this is coming out." I want to hear it. I want the proper people to be held accountable. I mean if this is true, people should be in jail. Forget about who's supposed to be on the Supreme Court. These are now criminals. I want to hear it all and I'm not – I can't sit here and make judgment because, the truth is, I don't know. I find it all very strange that this wouldn't have come out. Now, remember, Kavanaugh has been through six background checks. This is a guy who has a long career. Why has none of this come out? If this is his background, he shouldn't have been serving in any leadership position without people knowing about this.
Porter Stansberry: Hang on a second. If this is his background. What's actually been alleged that is credible in any way? The only thing that I find credible about any of this is that Brett Kavanaugh went to high school and that there was alcohol served at many of the social functions in high school and college. That's the only thing I find credible about any of these allegations. I think it's laughable if you read the affidavit, what the woman says is that, at a high school party, men served her punch that had been spiked with either Quaaludes or grain alcohol. Yes. I mean I went to a lot of parties in high school as I was telling the audience earlier. Pretty much all of them featured some kind of alcoholic beverage. A lot of high school parties that I attended, somebody was engaging in sex acts. Now, as far as I know, they were all consensual. I don't recall ever being at party where I saw a woman ever being abused, much less gang raped. If I had ever seen anything like that, I'm certain I would have remembered when it happened, where I was and who was involved. I'm 100% sure because I would have never seen anything more shocking in my life.
Jedidiah Bila: I mean for me, this latest allegation which is, once again, is just an allegation. Allegations don't mean anything unless you can back them up because then we're in a world where anybody can wake up and say anything about anyone and they don't get due process. People decide who's a victim and a perpetrator on second one. We can't have that. That's not how the justice system works. That's not how normal people should be reacting to allegations. This latest allegation of gang rape and guys waiting in line to rape women, that, as a female, I can tell you that's a very scary allegation. That's something that I have – I look and I say, "Okay, we need to figure out was this going on? Was Kavanaugh on these?" I mean first of all, it's terrible if it's happening in general. Then, more specifically, was he in line? He's now said he's a virgin. It's called into question all of these things. Acts that are consensual are very different, obviously from stuff that's forced upon somebody else. Regardless, my theory is the same, which is no matter how terrible how terrible the allegation and that to me, that final one that Avenatti just brought up, that is terrible. I need to see proof, evidence, corroboration from people who were there. I have a lot of questions. These people should be – if this is true and they are deeply opposed to Brett Kavanaugh holding a high-level leadership position because they feel he's dangerous, he's menacing to society. They should be more than happy to provide any and all evidence, show up, get under oath, testify and let us all hear what happened and give him a chance to respond. That's the only way to do this. For me to sit here and say, "I believe her in second one" does no justice to her or anybody else. That's not how it works. That means that somebody could wake up tomorrow, accuse me of something and I have no right to defend myself. They could have no evidence, they could have no corroboration. The media could pick up on the story and, suddenly, my whole life is derailed when, in fact, we haven't even decided. Nobody has even had a chance to look at the facts of this and decide whether it's true or not. I'm deeply opposed to the way this has been leveled out. I don't know much about Kavanaugh except that he has a solid career as a judge. I've looked at a lot of his opinions. I'm confident in his ability to adhere to the constitution. His personal life. I'm learning right now from these allegations that there may be something there, there may not be something. Let's find out.
Porter Stansberry: Buck, can you get me a reservation wherever Ted Cruz had dinner the other night?
Buck Sexton: Oh, yes. Yes, I can, actually. It's on Capitol Hill. It's called – it starts with an F. I'll find out the name of it. I felt the same way about it.
Porter Stansberry: Seems like my kind of place.
Buck Sexton: That's where I'm going to go. That's my jam. It's really very good. It's an Italian place on Capitol Hill. Yes, Jedidiah, I actually had drinks with Ted last week and we were talking about the climate here. Then, of course, he gets chased out of a – it's a fancy restaurant. To their credit, Porter, they put out a statement which is rare for these kinds of restaurants. They were like, "We give people a place to relax and eat delicious food in a tranquil environment where they are to be protected. We don't care what our patron's political ideology is. They are welcome to come here and people that want to cause a ruckus can get the F out" basically. It's very good. I liked it.
Porter Stansberry: Someone in Washington acting sane. I didn't know that was possible.
Jedidiah Bila: You know it's funny, too. This was the one topic – this topic of harassing people in public places, restaurants, movie theaters was the one topic when I was on The View that we were all on the same page. Whoopi, Joy, we would always be disagreeing about political issues but Joy and Whoopi, they're very famous. If they walk into a place, they don't want to be driven out because of their views or their beliefs. That's the one area where I feel like all sane people should be able to get on the same page. Yet, just yesterday I'm arguing on Twitter with some lunatic that thinks it's awesome. "Oh, this is so great because" –
Buck Sexton: A lot of people think it's awesome, Jedidiah. It's crazy. A lot of people.
Jedidiah Bila: Even O'Rourke when he tweeted out, "This should not happen to Ted Cruz." If you read the comments below, they're like, "What are you talking about? You can take the high road. He deserves it." I mean people have lost their minds if they think it's acceptable to drive somebody and their wife out of a restaurant because you don't like their political ideology.
Porter Stansberry: That's totally nuts.
Jedidiah Bila: That's disturbing but it's the norm.
Buck Sexton: It's called Fiola on Capitol - F-I-O-L-A so when you come to DC next time, we're going to dinner at Fiola.
Porter Stansberry: Fiola. Well, listen, the one thing that I thought was just so ironic was – by the way, I'm not on Twitter. I think that – this is just an opinion of course. I think there's – Twitter is like the absolutely dregs of human beings. I don't know why anyone wants to converse with anyone on Twitter.
Jedidiah Bila: True.
Porter Stansberry: Doesn't make any sense to me. There's lots of things I don't understand. What was so funny was the post that I saw that Twitter posted had been put out on the Drudge Report and other places online. The woman was celebrating that the crowd had heckled and had shouted Cruz and his wife out of the restaurant. She was calling the Cruzes fascists.
Jedidiah Bila: Oh, yes, of course.
Porter Stansberry: Which I thought was so – I thought it was so funny. You and your jack-booted thug friends are kicking people out of restaurants who are minding their own business. The people that you're kicking out, they're the fascists.
Jedidiah Bila: Yes, it's crazy. The problem is that people think, "Oh, that's just a small percentage." It's actually not. There's a lot of people that believe that that's what should be done. I mean that you are entitled to go and disrupt people and harass them and that's what protest – that's just bad behavior. That's not protesting in a civilized normal way. The number of people, if you actually went and hit the streets of New York City, for example, where I live and ask if that was appropriate, they'd be 100% on board with that kind of behavior.
Buck Sexton: Jedidiah, before we go I want to give you a chance to give a shout out to your new book which is coming out. #DoNotDisturb.
Jedidiah Bila: Yes. #DoNotDisturb: How I Ghosted My Cell Phone to Take Back My Life. I'm really excited. It comes out October 9th. It fits in right with what you guys are talking about, about Twitter being a cesspool. It talks about how I managed to use social media on my cellphone and my devices in a way that was helpful and not in a way that it was going to drive me absolutely mad. I talk about how Silicon Valley programs these things, these apps to lure you in. Talk about bullying. Talk about what it's doing to us, too. We talk about – we were just talking about the bad behavior. Well, that bad behavior starts on social media because that's becoming normalized in those spaces. That's what people take to television, to their personal lives, to their conversations. Yes, it's coming out. Actually, I have a book signing at Barnes and Noble on the upper east side. I'm going to tell people about that soon. I'm going to put a little graphic out –
Buck Sexton: All righty.
Jedidiah Bila: – to tell them but out on October 11th so it'll be good stuff.
Buck Sexton: Fantastic. Jedidiah Bila, everybody. #DoNotDisturb is the book. Jedidiah, my friend, always great. Thank you so much for joining us on the Investor Hour.
Jedidiah Bila: Thanks for having me.
Buck Sexton: She is, Porter, I can tell you, and I would say this. I don't know if she can still hear me or not. Jedidiah is one of the nicest and most genuine people who have achieved any level of notoriety and success in media. She's a real –
Porter Stansberry: She seems also very clear-thinking and rational as you described her.
Buck Sexton: Yes. She's a good lady and really brings it. All right. Let's get into the mail bag because I got to run and see if we're going to get this Avanati phone call.
Porter Stansberry: Our favorite part of the show.
Buck Sexton: Our governor is calling in a few minutes.
Porter Stansberry: Love us or hate us, Buck. Just don't ignore us.
Buck Sexton: That's right. Love us or hate us. Just don't ignore us. Email number one. "Buck and Porter, the discussion about having to pay taxes to vote and the good American car is not an original idea. It's taken straight from the communist Chinese playbook. In China, it's called the social credit system and is implemented as we speak. Thousands, if not millions of Chinese have been blacklisted from booking airline and high-speed rail travel for having committed such heinous crimes as failing to cancel a restaurant reservation and then not showing up, or cheating an online games or jaywalking. I realize that portion of your show was tongue in cheek but please be careful what you wish for. Just saying." Steve.
Porter Stansberry: Huh? I don't quite get how you think that's analogous. I was talking about the number of votes that you would have. In other words, if you pay $10,000 a year in federal taxes, then you get 10,000 votes. If you're someone maybe like someone I know, you pay $10 million a year in federal taxes, then you get to have more votes because you're making a bigger contribution. You have a larger equity stake in the society. That has nothing to do with not being allowed to – I'm not saying that you should – what is it? I'm not talking about anyone being blacklisted. I'm not sure Steve is making logical analogy.
Buck Sexton: Well, anyway, that's what Steve had to say. Next up here we have Gary who says, "Porter and Buck. Porter, I know you can help me understand something. I've been thinking about what price to book means and how to interpret the values. I've assumed that price is market cap and that book is shareholder equity. Basically, total assets minus total liabilities. If that is true, wouldn't healthy companies such as Prudential Financial with a price to book of .89 be considered a good investment, especially with a yield of almost 4%? Thanks to both you guys. You make this all so much more fun." Porter?
Porter Stansberry: No. I would tell you, Gary, in my opinion, book value metrics are almost completely worthless as indicators of actual earnings power and, therefore, of value. In fact, I just finished doing a correlation study about this very topic. If you go back to the 1960s, 1970s, investment strategies based around book value and discounts to book value like the kind that Buffett was using in the '60s and in the early '70s, those strategies were very effective because there were many assets that were still badly mispriced going all the way to the great depression and World War II. Going forward, intangible assets have become much more important to company's earnings power. Think about it this way. The Coca Cola Company has a book value of about $10 billion. On $10 billion in net assets, they're able to earn, in a good year, more than $10 billion in cash. How is that possible? How is it possible you could double the value of your net assets in one year? Well, it's only possible because Coca Cola owns the world's third most valuable brand. Interbrand says that Coke's trademarks are worth $73 billion. There's other things that are intangible that Coke owns as well, like the relationships it has with its bottlers. None of those contracts, none of those – none of that goodwill, none of that brand is anywhere on Coke's balance sheet. Therefore, saying that Coke probably – Coke probably trades at a book value multiple of 10 or 12 so, therefore, would be a bad stock to buy. No, it doesn't make any sense. What I'm saying is that the importance of book value assets in the modern economy is greatly reduced. As an indicator, book value would've been important perhaps in 50% or 60% of investment decisions going back in the 1970s. Today, they're less than 11% correlated to investment success, so they're almost irrelevant.
Buck Sexton: All right. That's going to be it for this week's Investor Hour. Everybody check out investorhour.com. We have the transcripts of the show, all kinds of good stuff. Stansberry Investor Hour coming to you every week by the way. I'm in Vegas next week with the whole Stansberry squad. It's going to be amazing. Porter, I am legitimately super excited about it.
Porter Stansberry: If you can fly out on Saturday, our plane is leaving at I think 2:00.
Buck Sexton: All right. Fantastic. All right, everybody. Thank you again.
Porter Stansberry: Anderson Cooper's not the only jackass with an airplane.
Buck Sexton: I love it. Love us or hate us. Just don't ignore us. Porter, I'll see you in Vegas. Everybody else, we'll see you next week.
Porter Stansberry: Bye, everybody.
Recording: Thank you for listening to the Stansberry Investor Hour. To access today's notes and receive notice of upcoming episodes, go to investorhour.com and enter your email. Have a question for Porter and Buck? Send them an email at [email protected] If we use your question on air, we'll send you one of our studio mugs. This broadcast is provided for entertainment purposes only and should not be considered personalized investment advice. Trading stocks and all other financial instruments involves risk. You should not make any investment decision based solely on what you hear. Stansberry Investor Hour is produced by Stansberry Research and is copyrighted by the Stansberry Radio Network.
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