One of our favorite conversation topics in the office is sports. No matter the season, we find something to discuss aside from our day to day conversations about money. Football, however, holds a special place in our hearts. That's why we are back this year with another "If Quarterbacks Were Stocks" episode. We hope you enjoy.
Ross Marynell 00:00
Now remember, as always, we have to say this. We are not making stock recommendations. We're just having fun doing a cute quarterbacks comparison. This is all for just fun learning and and, you know, seeing where it goes. Welcome to the money huddle,
Michael Baker 00:49
Welcome back to the money huddle. My name is Michael Baker. And I'm here with Ross Mary now. And Ross. I think it's time we've waited one season we sat out COVID season of 2020 but it's time to bring back quarterbacks or stocks. So for everyone that this is out and told us that you liked that episode, we wanted to bring it back. Ross is sitting here he's got his Peyton Manning jersey on. He is ready to go. So Ross without further ado, take it away.
Ross Marynell 01:26
I'm feeling I'm feeling fired up today. This is one of my favorite podcast days. I have the circled on my calendar because I love the if quarterbacks were stocks comparison, we get to comb through a handful of NFL quarterbacks find their doppelganger stock and compare it to them in some of these, Michael, I may have to convince you of this year.
Michael Baker 01:50
Okay, but I'm ready.
Ross Marynell 01:52
Let's recap everybody. So the last time we did this, let me just do a quick recap. On some of the quarterbacks we compared the last time.
Michael Baker 02:01
So survive. We skipped we skipped COVID year. Because last year, we were just excited to have a football season. Like they could have been playing like the third string, offense and defense out there. But the fact that there was something on TV to watch, while we were all isolated in our homes was phenomenal. So
Ross Marynell 02:21
not to mention last year, we had a lot of topics to cover. I mean, we had the secure Act, the cares act COVID recovery presidential election. So, there was rule changes, political changes. It was a big cram year for things to talk about in this podcast. But you know what? We're settled in. We're heading into what feels like a full football season. And I'm ready to roll. So, the last time we did this, Michael, we compared the great Tom Brady to Microsoft, stellar long-term returns. It's a little archaic, but it still works. I feel like we hit a homerun on that one.
Michael Baker 03:00
Ross Marynell 03:03
Tom Brady. Come on. That one was pristine. anyone's a Super Bowl at last year, so
Michael Baker 03:07
he won a Super Bowl.
Ross Marynell 03:09
So then we go to Russell Wilson compared him to Amazon. So a little Seattle connection. Russ gets cooking. He's hard to beat Amazon when they're cooking. Boy they have some components of their business that are just really stellar. AWS, they have some great things. Then we compared Lamar Jackson to Disney. Magical must watch TV can't really argue with that one. Looking back when I compared Baker Mayfield you had a little issue with this to be on me. I said he's all sizzle those state and I'm going to take a little victory lap on my comparison to Baker Mayfield. You are listen listen in 2020 Teddy Bridgewater, three wall yards of Baker Mayfield I'm taking a victory lap. Hey, that boy more commercial than any other player in the league.
Michael Baker 04:08
I can't hate on the boy for fulfillment as many commercials as he can. He's a quarterback in Cleveland. You got to bank that. You got to get the bag when you can but he didn't do. Cleveland went to the playoffs. They were in the playoffs. Listen. He might be handed the ball he might be handed the ball to Nick Chubb. But that's that's a playoff team right now.
Ross Marynell 04:33
That's a playoff team. In 2020 he threw 3563 yards he beat out Daniel Jones. Okay. Oh Teddy Bridgewater, three more yards in him. He's all sizzle no steak but hold on.
Michael Baker 04:48
Pause. So Teddy B had more yards but how many attempts that Teddy B have last year. I'm pretty sure I heard the other night during the Panthers game that the Panthers he led the league and attempts last Last year,
Ross Marynell 05:01
I don't know if that's true or not, but no, no. Okay. But we had 492 attempts, Baker had 486. So, okay, then we went on to another one I had to convince you. I'm taking a full victory lap on this one. This was Jared Goff. I compared him to we work, contractual bust. You know, we work long term debt obligations, short term, customer revenue. That was an asset liability mismatch. And I think we could say the same for our friend Jared.
Michael Baker 05:34
He got sent to Detroit.
Ross Marynell 05:37
But we had one. One big bust one bigness. And that was Listen, our hometown, our hometown hero. At the time, Cam Newton, we compare them to Netflix. We thought there's rising competition, that there was streaming service competitors that were going to be nipping at their heels. But Netflix is still holding strong and arm sorry, our free Can we just cut the other day from the New England Patriots? And so we missed on that one? Close.
Michael Baker 06:14
Yeah, you wouldn't really say Netflix is out there. scraping the bottom of the barrel. They're still rolling, it runs strong.
Ross Marynell 06:21
Netflix made news just just the other day, I think securing Seinfeld, so I'm sure they'll get some eyeballs on the screen. They had a huge run with the office, if you remember Netflix when they when they secured that package. So I'm sure they're hoping for more of the same. So unfortunately, we missed one but I've got five new comparisons. I'm ready. Are you ready?
Michael Baker 06:41
I'm ready. Let's rock Let's rock. So here we are. quarterbacks or stocks. 2021 NFL football season.
Ross Marynell 06:48
Let's go. Alright, so the first one, some big moves in the NFL this year, and some big moves in our in the stock market. So we have one time great. Matthew Stafford, Detroit quarterback for many, many years. He throws big yards and has a big arm. He hasn't really gotten the results. Isn't that a little bit of a letdown. But he was in Detroit. Now he's newly acquired by the Los Angeles Rams. My friend. He is Ford. He's Ford. He is Ford. I'm connected to the Detroit connection. I'm on come on. Detroit connection. Ford has had they have sold millions of vehicles. The F 150 is the most popular truck in the world. They have a new lineup. They have just got upgraded. Yeah. Is that what it is? The lightning. It's the line. That's the electric vehicle. Okay, Ford F 150. Lightning, getting in pretty aggressively into the electric electric vehicle space. Okay, they've got the new Ford Bronco. Listen for it's got some they've got some things coming. They've got some inventory. They've got some product to put out there. And I looked at Stafford has some new players to throw the football to.
Michael Baker 08:17
I looked at that I actually walked past a brand new Bronco today. I think it was one of the big ones is pretty sharp. It's pretty sharp. So Alright, so Matt, our upgrade. Stafford gets an upgrade and Ford is getting the new up some upgrades as well.
Ross Marynell 08:39
All right, that's right. So the market comparison, you know, 10 year return of Ford. So Ford stock over the last 10 years has returned 5.95% it's underperformed the s&p 500 pretty dramatically over that time frame. The s&p 500 has generated 60 point 40% I would say that's fairly emblematic of Matthew Stafford's career. Excellent individual player throws tremendous amounts of yards but just hasn't had the overall success and return that you would have hoped. Cool.
Michael Baker 09:10
All right, I can I can roll with that I can roll with others. Number one, see if he see if his new team allows him to have a breakout year
Ross Marynell 09:18
and we'll see if the Ford lightning can catch up with Matthew Stafford this year. Let's go. Alright, so number two, we have Big Ben Roethlisberger. Okay, career long Pittsburgh Steeler? He's nearing the end of his career. He seems rejuvenated for one more final push. But let's be honest. His best years are behind them. He was a huge star in the league 1012 years ago. Okay, my friend. He is Exxon. de Lis excellent. Exxon is a declining market. cap. It used to be the big kid on the block. But look, it's a different era. Now. Mobile quarterbacks are the new breed. We want guys. We want to see players run, escape be elusive in the pocket. Ben was the big statue took dad's stood tall and threw the ball down the field. But that's the old way to play the game. These young players like Kyler Murray like Patrick mahomes, Lamar Jackson, they're using their feet to escape Trevor Lawrence. And so look, the new companies that are emerging are probably surpassing what Exxon was doing. However, is there one more final push on the doorstep?
Michael Baker 10:43
I want to say negative. I think Ben I think been a little long in the tooth buddy. Well, I think he's a little long in the tooth and those people that have to play him up in the AFC in their division i don't i don't think mind that at all that Pittsburgh continues to cling to that to that. You know, it's just so here's my
Ross Marynell 11:05
take on it market comparison, Exxon. After a very disappointing, dismal returns of the last reset years as at a one year return of 46%. So okay, can Ben give us some magic one more year?
Michael Baker 11:23
You're You're banking on a magical season for the for Pittsburgh? Ah,
Ross Marynell 11:28
yes, I Yeah. Hey, and I'm planning to those. Listen, everybody loves Pittsburgh. So I'm getting a little Pittsburgh love out there to our listeners. Okay. All right, here we go. This one, listen to our Alabama fans, this one might sting a little bit. So number three, quarterback comparison is to a taggable who is 2020 drafted fifth and the 2020 draft. Behind the only quarterback he fell behind was Joe burrow. He got drafted ahead of Justin Herbert who had a fantastic season to a had a big hype coming out of Alabama. You remember the ones game where he came in? Oh, yeah. And the second half replaced Jalen hertz brought Alabama back to win a national championship. Right? He was potential going to be the first number one draft pick. But he goes very hard break his hip. He did break it. So he's got injured but he's listened he he played most of last season. So anyway, I was looking at IPOs that he might represent from 2020. And I came up with Airbnb. To okay is Airbnb. Listen, we've all stated in Airbnb at this point. But listen, people weren't traveling last year. The ball wasn't traveling in Miami either. We weren't getting the ball downfield in Miami last year to a struggle throw the ball deep. Guess what Airbnb struggled to get people to travel to their properties. And in 2020, Airbnb his return was only 1.44% fits nicely with to his 1800 passing yards last year.
Michael Baker 13:17
So I got a big
Ross Marynell 13:18
name. very flat first year discipline. We'll see what happens.
Michael Baker 13:26
So you're thinking, hey, if we can get through the different variants, people start traveling again. The upside is still there for Airbnb. I think that we're saying Okay, all right. I think so. too. Still has upside just a little slow out of the gate.
Ross Marynell 13:46
Now remember, as always, we have to say this. We are not making bad recommendations. We're just having fun doing a cute quarterback stock comparison. This is all for just fun learning. And
Michael Baker 13:59
yeah, absolutely. Don't worry, we're not out here giving it stock advice based on NFL quarterback.
Ross Marynell 14:07
Okay, all right, number four. I couldn't believe going back to the original podcast that we did, that we somehow Miss Patrick mahomes
Michael Baker 14:19
I just don't i don't i don't think we found something at the time that we really liked for him.
Ross Marynell 14:26
So what we know now, he is a superstar. He is already a world class quarterback. He is in the elite. It's only been a short few years. But he is a Super Bowl winner. He received a monster contract. Okay, here we go. Patrick mahomes is Facebook.
Michael Baker 14:54
I do that to his face. Why don't you do that?
Ross Marynell 15:01
Everyone talks bad about Facebook and then uses it's like, well what I mean there's 2 billion users across their platform facebook,
Michael Baker 15:10
facebook is like a Tina at this point there's there is no alternative. You know, every they're so huge and have their tentacles and everything. That where do you where could you possibly go and argue with your friends?
Ross Marynell 15:26
Exactly. How do you stop Patrick mahomes on the football field, he can do it all. He's Instagram, Facebook, Whatsapp, virtual reality all combined. He's Facebook is the latest entrant into the $1 trillion market cap club. That's the elite, you're running with the big boys, right. And mahomes is in that class now of some of the greatest quarterbacks of all time. And, you know, if he has a long enough career, it wins a few more Super Bowls.
Michael Baker 15:59
And you have where's the cupboard is his internal catchphrase is domination. So there you go.
Ross Marynell 16:11
Move fast break things. Down domination, there we go. So, Facebook three year return of 29.55%. They have a 35% profit margin off of that type of operating revenue is just mind blowing. Yeah.
Michael Baker 16:30
Okay. All right. I've already got a return on equity. They're just saying like, you got to look at what the facts are. And the facts are the facts.
Ross Marynell 16:41
The facts are the facts. And so this brings us to our last one. Listen, there is no way on earth we could do a cuby comparison without putting our our local college hero.
Ross Marynell 16:55
Mr. Trevor, Trevor, Clemson superstar quarterback, beloved in this area unless you're a gamepacks fan. Now, number one overall pick consensus for overall pick to the Jacksonville Jaguars. He's about to embark on his first season. He is a talented hard worker, he is ready to play. He is so I had to pick a top a current year IPO. He is Coinbase
Michael Baker 17:27
Ross Marynell 17:28
Coinbase is already a 56 billion crazy. They are the new era of custodians focusing on what decentralized Finance? Right, this is the next is this the wave? Is it? What's the long term trajectory of these asset classes? I have no idea.
Michael Baker 17:50
But coinbase. Alright, man? Well, you know, it's it's definitely, you know, the fact that they took it public. I mean, and there was such a huge demand for people, you know, or those who don't know what Coinbase is, it's an online platform where you can buy and sell cryptocurrency or tokens, a lot of the big ones that you might know about are on there, you know, Bitcoin or Etherium. But you know, they've added some, they've added some just pure for for, for giggles. I think like they added Dogecoin on there because that I hope they're forgetting where the demand but but obviously, you know, they, they took the company public and they're planning to be around for a while. And so that's one of our major exchanges here in the United States. So I like it. I don't hate it. If you're if you're having to use an IPO, I would say that's a solid, that's a solid connection right there.
Ross Marynell 18:52
Listen to this one, this is just an insane stat on Coinbase. So I'm looking at my charts here. coin bases. Now obviously, there's there's limited data, because they just came out but their profit margin is calculated at 72% profit margin. That is and I just, I just, you know, glowingly talked about Facebook having about a 35% profit margin 72% profit margin. It just tells you how much profit they can bank with their revenue. So we will see what the future holds for Coinbase. Again, not a stock recommendation. It all comes with risks. But I think what Jacksonville is hoping for is that type of return from Mr. Trevor Lawrence. And so I know a lot of our South Carolina friends will be rooting for him as well. And that is our 2021. quarterbacks were stocks. I was fun. So we got
Michael Baker 19:50
really, really surprised you didn't have something for our hometown guy. Sam Donald, the new quarterback, the new key one for the Carolina Panthers. Do we? Well off the cuff What do you got for Sam Darnell?
Ross Marynell 20:06
No, I can't because I've already my brain is fried. Coming up with these. I literally been poring through stocks tried to find some great comparisons. There was a couple that there were a couple that we'll have to keep our eye on for next year. We still haven't paid one for Josh Allen man.
Michael Baker 20:26
We need our friends saying Josh Allen just signed. Didn't he just sign a monster deal from Buffalo? I don't know how they're gonna pay the other teammates, his other teammates. But buffalo is gonna be good this year. I think they're gonna be good. But Wow. Yeah. Josh Allen. He's, he's a stud. So Alright, well, we'll have to we'll have to put him on the watch list. You know, for for this year. Definitely. And, and same for Sam Donald's who have to go on the watch list as well.
Ross Marynell 20:58
No doubt. Well, if you're not a football fan, and you're still listening, thank you for enduring our football conversation and giving us some grace, because we do love chatting about that a little bit. But Michael, I know we're gonna pivot now and move on to a couple of other topics.
Michael Baker 21:13
As far away. I mean, our podcast is the money huddle. Because two of the things Ross and I talk about in the office amongst ourselves all the time, our you know, financial stuff, and football, and sports. So it seemed very appropriate for our, in our podcast, we named the money huddle. But what I had today was an interesting article, I just came across it yesterday or the day before. And it was financial planning. And you know, one of the things that we talk about a lot, especially when we do we speak in public, or we do any kind of public event, is we're talking about the importance of financial education, and how employers especially could get in the game with their employees by helping them giving them access or providing them with access to people, like financial advisors, like someone who could come in and be a financial literacy coach, because people are hungry for financial information.
And in the age of information, you don't always know if you're getting good quality information, especially if you're just turning to Google, or wherever to get to information. Anyway, there was an article on financial planning calm, and it says investors are focused on retirement savings, but get little help from employers. And there was a you know, survey was a financial planning financial wellness report, where they did a survey of financial priorities for people working in employees. And of course, at the top of the list, were the the two that tend to stay at the top of the list. One is continuing to save for retirement with over 65% of people saying that was their top priority, and then building up cash reserves with 56%.
So more than half easily more than half of the people responding were saying those are the top two, you know, financial priorities. But what caught my eye was it says down here that over, I think 69%. So almost 70% of the respondents said that their employer does not offer access to a financial advisor. And the same number 70% said that they don't have a workplace financial literacy program. Now for me, I'm biased, of course, because this is our field. But also kind of feel like this is low hanging fruit for employers to like, get in the game and just bring somebody in and do lunch and learns or or provide their employees with access. And I think it would be a remarkable benefit. What do you think Ross?
Ross Marynell 24:01
Well, I think if you're if you're listening at home in the car, think about how much time you've had to spend going into your own 401(k) and just handpicking funds on your own, you know, has any Has anyone associated with that company or that plan, reached out been proactive about doing some type of risk assessment to learn a little bit more about you to help position some of those assets inside the plan. You know, what, what we typically find is that when we sit down with people who are contributing to a 401(k) is that they're pretty much the decision maker. And a lot of those fund selections, they've done their best. They've looked through the data to their comfort level, and made some selections. The challenges as we know the 401(k). There, there is one or $5 trillion in 401(k) assets. I saw a statistic just recently that it was a little over it's like around 5.6% only dollars, that was the number from first quarter of 2020. So it's a big, big, big chunk of someone's personal savings, that is going to be a very important and crucial part of their retirement income distribution plan when they retire. And it's difficult, in some cases to get some guidance on how to invest that allocation. So within the 401(k), what do I do? So just think about it, who's who has reached out and help? And if the answer is nobody, then that's a situation where we would love to see somebody come in and help those plan participants get some feedback, right? I think,
Michael Baker 25:37
you know, and looking at the the information here, one of the things that that I'm thinking about specifically, is bringing in someone that would just do basic financial literacy, coaching or teaching, where you could have lunch and learn events. To me, this is like such low hanging fruit when employee employers are really trying to find ways to recruit and add talent, you know, keep people and provide benefits and so forth. And one of the responses here is says that 43% of said they work with a financial advisor already. Here, it says nearly half 47% of millennials. So that's the generation that, you know, people are trying to reach in so many different ways.
47% of millennials said that they would be more inclined to work with a financial adviser if their employer offered a discounted or free access to such service. So employers, this is where you can, you know, get creative, and maybe hire, look at some local advisors, or some people that you might be able to hire and bring them in, and, you know, pay for a couple of sessions or pay for a workshop or educational event out, trust me. Good, good financial advisors would love the opportunity to come into and speak with your employees, and you don't have to endorse but just providing a platform where people can come in and actually get some education because people are so hungry for that. And I saw this article, and it just made me think like, wow, this is such low hanging fruit.
For businesses, you know, if you have employees, especially small business owners, where you're having to compete in a labor pool against, you know, maybe larger employers that have better benefits or a little bit higher, you know, you know, more filled out benefits packages, you can say, hey, well, we have somebody here that we bring in, and does financial literacy does financial education, people aren't getting that. And so that's a huge, that's a huge opportunity, I think, for advisors, of course, but really, for employers to you know, take the initiative and put somebody on that.
Ross Marynell 27:56
And I love the idea to have having somebody come in, who can just, you know, like you said, do a financial planning session, it doesn't have to be, you don't necessarily want to be in product sale, you just need guidance, sometimes it's just a choice, sit down and talk to somebody and get some structure to finance, right. And to that point, so many people are using.
Michael Baker 28:20
So many people are using the tools that are available. So there they are going in and using the portals with the 401(k). And they are filling out the you know, it's a generic risk tolerance questionnaire, but they are doing that they're using, you know, financial apps, but what we're talking about is at a person, like a real life person, that people could sit with and talk to, and have them like tell, you know, tell their story and have them you know, learn about them as people because, you know, personal finance. This is a catchphrase in our industry, personal finance is much more personal than it is about finance. And so, you know, having that is is huge for for people. And if you're an employer and you can bring that to the table, I think you're doing something pretty unique and special for your employees. It's not not commonplace in the in the market.
Ross Marynell 29:15
Okay, awesome. Love it. What other topics?
Michael Baker 29:19
one other topic I had is Today is September 2, and September is life insurance Awareness Month. So get ready. They'll probably probably be some commercials on TV. I imagine. So many big life insurance companies sponsor college football games, I lament that every year because you know, I can't watch a football game anymore without seeing I'm getting bombast you know, lambasted with commercials, but September is life insurance Awareness Month. And I think that for me, you know, insurance a lot of times just feels like I feel like it gets a bad rap, but No financial plan is complete without having appropriate insurance protection. You know, and especially if you are, if you are a high earner,
I know a lot of younger people are coming into their their prime earning years, where they're finally, you know, they've got some work experience, they're they're finding some jobs where they're making some really great income, maybe getting some debts paid off, and they're starting to see a lot of discretionary money for them to use and save. But remember, like, if you've got kids, if your spouse is not working, you need to help me making sure that you have adequate life insurance protection, not that we think we're going to run out and get eaten by T rex next week. But things happen, especially coming through COVID. This pandemic, which we're still not through, I think many of us know someone who we would have never had suspected, possibly got really sick with COVID, maybe someone who we know has died of COVID. And it just shows you how quickly life can turn. And so we just think that's just an encouragement for me to get a review, if you haven't had a life insurance review, we encourage you to do that.
Make sure you just have adequate protection, you know, if you have benefits at work, where there provides some type of life insurance, that's great, but you know, does it you know, how does that work? Exactly? does it leave the when when you leave the job? Do you lose the benefit? How does that transition happen? If you have old policies that you just haven't looked at in a while, make sure you pull those out, see if they're still working the way they're supposed to give you a new adequate protection. Here's a big one Ross, making sure your beneficiaries are correct. Right. There are a lot of times I mean, people get married people get divorced. You know, people have children, people have blended families you have, you know, parents die, spouses pass away, there's all kinds of life transitions that may result in you have beneficiary forms that are incomplete, or outdated.
And so you want to make sure that you know, the beneficiaries are adequate, because life insurance, for the most part is designed so that the benefits are paid out tax free. You, you want to make sure that whoever you are wanting to get those funds, receives those funds. So that's another great thing. And so, again, this is the end of my little infomercial on life insurance, but no financial plan is complete without having adequate insurance protection. And so that's just something to consider. It's been it's been a while since you've looked at your life insurance or you had a review, to make sure you do that. Make sure that you're protecting the people that you care about the people that depend on you. from a financial standpoint, that's what it's there for. And so with that, what do you got to close this with?
Ross Marynell 32:57
What we needed that public service announcement because I had no idea this was like life insurance awareness month
Michael Baker 33:01
It's a big deal. You know, and you probably you probably would know after Saturday, because I'm sure that the commercials will be airing during football.
Ross Marynell 33:09
All the college football commercials. Ah, good to catch up with him always fine. I'm
Michael Baker 33:15
glad we got to do a real segment of so I got to tell you something. I gotta confess I am. I have never ever Never have I ever done fantasy football. But I was talked into doing fantasy football this year. So I don't have a clue. Oh boy. How was your dress come as your team draft is coming up on Sunday? I think so. You know if you want to know where my energy goes, it's not to fantasy football whatsoever. But this year I will I will gladly report periodically on this podcast how my team is faring.
Ross Marynell 33:54
I will say I was proud of myself for drafting a relatively terrible fantasy football team because it shows you that I'm not thinking a lot more about
Michael Baker 34:06Yeah, no good financial advisors that are horrible at golf and don't know what on earth is going on with fantasy football. Where are your guys alright, so like always if you if you enjoy the podcast and if you got some comments if you disagree with Ross's. If quarterbacks were stocks, pay now Hey, you know, let us know. Give us shoot us shoot us a message. You can email us at the money huddle at VC planning calm. And as always, thank you for listening. Talk to you next time.