Demystifying Stock Options: Strategies for Success

ABOUT CODY
The well-recognized 7-figure income stock options coach, real estate investor, and entrepreneur. With over 10 years of expertise in the investment industry, Cody is revolutionizing stock options investing and the financial game for aspiring elite professionals who want to achieve financial success and independence. In the past year alone, Cody has been featured on TD Direct Investing Webinars and more than 80 investor-focused podcasts. His expertise in the field has made him a go-to resource for investors seeking to grow their wealth.

Connect with Cody:

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• Wealth Busters: https://rb.gy/p2fhnd
• Email: codyyehchannel@gmail.com
• Website: https://codyyeh.com

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Transcript

SPEAKERS

Cody Yeh, Alfonso Cuadra, Carl Richards

Carl Richards  00:05

Welcome to The WealthGenius Podcast! The WealthGenius Podcast: strategies for multifamily real estate investing, mindset, community, success. The WealthGenius Podcast with your host, the godfather of real estate, Alfonso Cuadra, who has expansive experience in business and massive success as a real estate investor. The WealthGenius Podcast, let's dive in to today's episode. 

Alfonso Cuadra  00:32

Cody Yeh. What's going on?

Cody Yeh  00:36

What's going on Alfonso?  

Alfonso Cuadra  00:37

Yes, sir. Thank you for coming by. Like I was telling you, before we started filming, I'm going to put myself in a position of a student, of someone that needs to know about this stuff. Because I'm a real estate guy. You're the stock options guy. And I like to do some stock options. It looks fun. But when I start thinking about it, it just becomes complicated in my mind. So pretend I'm like a 12 year old. Okay? 

Cody Yeh  01:03

Yeah. 

Alfonso Cuadra  01:04

And I want to get into your brain, you know, because you are The Stock Options Guy. And I want to know, kind of what makes you so successful in that game? How you came to even be in stock options in the first place because most people look at the market, it's like, "Oh, I want to get in the market." You know, and they go to a maybe a broker or they go get a self directed account, and they start trading. 

Cody Yeh  01:28

Yeah, start gambling.

Alfonso Cuadra  01:29

Yeah start gambling, because they don't know what they're doing. So before we get to all that. Bring us up to date. What do you do? How do you do it? And what is your daily activity?

Cody Yeh  01:40

Okay, so first of all, my name is Cody Yeh, I started investing in stocks in 2011, I came to this country, Canada 2009. So I started in second year of university. I might look younger than what my actual age is and I intend to keep it that way. But then I- throughout the years, I invested in stocks. And I was a day trader 2015 to 2017. And meanwhile, at that time, I was working full time. I graduated as an engineer from the University of Toronto, and I was working as a second job trading in the Asian market. Right now that looking back it was crazy. 

But at that point, I was trying to prove something, you know, like all the engineers were very single direction brain, we just want to prove something if someone else could do it, we could do it. Right now looking back, not the most efficient of time and not a highest win rate, right. And that's why 2018 That's when we start stabilizing our stock option investing strategy. And hence, we have our fast money, medium money and slow money. Just like in real estate, you can have your wholesaling, flipping fast money, you can have your BRRRR medium money, you can buy and hold, slow money or a private lending all that good stuff. Right? 

So we have that established since 2018. And that's when, you know, going all the way back would make a lot of mistakes. Like we have lost money in stocks, because we were one time thinking that we were better than Warren Buffett, right. And then the more books that we read from Warren Buffett and Charlie Munger, that we found that there's reason why they were so successful. In the long term, there's a reason why they don't treat stock investing, or stock option investing as gambling because they have something that is so simple. So- lack of better words, was so boring, but it's worked consistently, right? So we attract, we draw a lot of the insights on that and make a modified version for what works for myself, and 1000s of my students.

Alfonso Cuadra  01:43

I can get on board with that. Because in any industry that I've seen, the people that are least successful, are the people that are flipping right like in real estate, I want to be a flipper, I want to make millions of dollars and- and theres always like "the get rich quick" and when you look at you know Warren Buffett's strategy is to simply buy and hold. 

If you can do that in any industry, like buy, if you want to be in Bitcoin, and you want to be you know, get in, get out, get in, get out, get in, you're not going to be successful. The people that are successful is like, okay, let's have a long term plan. Let's do this long term, buy and hold. And so what got you attracted to stocks in the first place?

Cody Yeh  04:13

Because when you're a second year in university, you don't have a lot of money, I can't go and buy real estate at that time, I was still an international student. My tuition fee was $30,000. So I want to be like other people that go and work part time. But with a visa, you can only work 10 hours, I think around 10 hours per week 30,000- 

Alfonso Cuadra  04:32

You've got to maximize those hours. 

Cody Yeh  04:34

So I'm like, should I just focus on learning more or should I go get paid minimum wage and learn a little bit so at that time I pick, just maximize on learning everything I was like- I don't know if you know, but engineers' schedules are very packed in school. 

We have a maximum of six courses each semester. I cannot take on any more. But at night I go sit in on accounting, corporate finance, investing, corporate behavior, all those courses at night until the professors know me, and don't kick me out and I'm like "I promise I won't talk. I won't eat." 

Alfonso Cuadra  05:04

So you, you were taking your course, you had your course load? 

Cody Yeh  05:07

Yeah. 

Alfonso Cuadra  05:08

And then you decided, okay, on my spare time, I'm going to go to all these other courses. 

Cody Yeh  05:12

Yeah at night! I just asked my friend "Hey, I saw you sign up for- what's your timetable look like?" I just go. And it's free, right? I already paid for it. I pay 30k per year might as well maximize. 

Alfonso Cuadra  05:21

Yeah, right. 

Cody Yeh  05:22

So that's where we started and then soon I realized that schools don't really teach you the real strategy. They teach you everything. They teach you the things that the computer can do. For example, if you go to like a one schools teach real estate, they teach you everything about-  "How does, how do you do appraisal? How do you come up with this?" But they don't tell you the strategy, how do you make money in real estate long term, same thing as stock options.

Alfonso Cuadra  05:46

Well- and I would have to say, because in order to teach something, you kind of have to have done it hard to teach something that you don't believe in, or you've never done.

Cody Yeh  05:57

So I always love the guest speaker that they bring in from the industry. 

Alfonso Cuadra  06:01

Ah, yes.

Cody Yeh  06:02

And that's where I learned the most whenever there's guest speaker I go and as hard question, right? Instead a- that no, no offense to all the professors. But a lot of time that professor is teaching something that they don't have real experience in where they just have a little bit of it. So I like the professor has not just put the name on accompany but the actual advising and put their money with skin in the game if the company goes up or down. 

So I respected those people a lot more early on. And that's still today, I only listen to people like yourself, I want to ask people about WealthGenius I'm like, "Who should I listen to?" Right? I you know, I work for the mortgage broker that kind of helped a lot of your people too. So I know, you know, the names that I know I can fully trust because the mortgage broker trusts them because they see everything right. I was telling everyone between mortgage broker and my accountant, each of them half naked. If they talk to each other. I'm fully naked.

Alfonso Cuadra  06:53

Nice, nice. So 2011 you start getting into the- was it just trading, you're just doing trading?

Cody Yeh  06:59

No that's just boring investing. Like bank stocks. 

Alfonso Cuadra  07:02

Yeah.

Cody Yeh  07:02

Right. And that time, like index funds, mutual fund was still-

Alfonso Cuadra  07:05

Making money at this point.

Cody Yeh  07:05

It's like, Boy money is that what  5%, 8%. And I'm like, there's gotta be something faster. You put in $10,000 Oh, that's too slow. 

Alfonso Cuadra  07:13

Yeah, yeah.

Cody Yeh  07:14

That was too slow.

Alfonso Cuadra  07:14

So how did you get introduced to stock options? 

Cody Yeh  07:17

Yeah. So before that I was day trading. I met my day trading coach to a friend, a friend that introduced me to the Day Trading Coach. So she's from Taiwan. She doesn't have any social media, no marketing, right, because she was taking people's money through exemption. I don't know if she has the right structure set up. But I was looking at her trading life. She was 24 years old. And she was driving a Rolls Royce. 

So when you're like 23, 24, that's how you equate to rich or being wealthy is that "this girl is 24 years old driving a Rolls Royce. That must be something she was matching $50 million options. Why was someone trusting her? So I was trying to learn it. And in the beginning. It was you know, we're losing money the first eight months. I was yelling at my coach, like "What the hell? I learned from you. You're successful, I'm not, why?" She said Cody this part of the process because this is not for normal people. So I did it, you know, after a year, we're like, we were up, second year I'm like, I'm still up, but I'm like, five, six hour per day. This is way too much. Right? 

So I kind of stopped doing that to say how can I spend my time on something that can generate me the most amount of money with the least amount of stress? And that's why we start stabilizing the stock option. And that's where we get into, you know, reading Warren Buffett stuff, Charlie Munger stuff like, "what do they know that I don't?" And that's where we get introduced to the selling option strategy. 

Alfonso Cuadra  08:35

Yes. 

Cody Yeh  08:35

We're kind of like an insurance company now. We're like the casino.

Alfonso Cuadra  08:39

Well, I want you to explain it to me, like I'm 12 years old. Okay? Yeah, stock options. It's not trading.

Cody Yeh  08:46

Well, I only make one to four transaction per month. 

Alfonso Cuadra  08:49

Okay. 

Cody Yeh  08:50

So in the CRAs world, I'm trading but truthfully-, 

Alfonso Cuadra  08:54

Do a lot of people do this? 

Cody Yeh  08:56

Hundreds of student paying high ticket 1000s-

Alfonso Cuadra  09:00

I'm just saying like, generally like, because it's not something that is talked about, when you hear-

Cody Yeh  09:03

Not done much, no. 

Alfonso Cuadra  09:04

When you when you watch like, what's that movie, the uh-

Cody Yeh  09:08

Wolf of Wall Street.

Alfonso Cuadra  09:09

Wolf of Wall Street or whatever, or the- 

Cody Yeh  09:11

The Big Short? 

Alfonso Cuadra  09:11

There's the other one is Ballroom or no, uh Boiler Room 

Cody Yeh  09:15

Boiler Room. Yeah.

Alfonso Cuadra  09:16

You know, it's like trade da-da-da-da. It's like it's so exciting. You know, it feels like theres adrenaline is that what stock options? Do people know about stock options?

Cody Yeh  09:27

I think a lot of people really think stock investing or stock option investing like That's why I don't like to use the word trading. Because I'm really not that active. I only spent 30 minutes per week, write off all my coach, reading everything, analysis, so I just look at the data. I make a decision if I need to make a decision if I want to make a decision. 

But most people who got drawn to stocks like this is how we screen people, whether we know they're the right person is if they're here looking for the adrenaline if they always feel "I need to do something." If they don't do something, something's wrong them, those are the people that usually have that gambling mentality and that we're very careful with that. And that's not what we do at all. We want people to be boring. 

Alfonso Cuadra  10:09

Go play a sport or something.

Cody Yeh  10:10

Yeah, that's we said and done. So imagine you can buy a real estate deal you put in offers, this is my offer, and you get paid to put in an offer. 

Alfonso Cuadra  10:18

Wow. 

Cody Yeh  10:19

And then if you don't come down to that point, I'm not buying it, but you're still pay me money.

Alfonso Cuadra  10:23

Okay, hold on. That's the whole point. Okay. Please, please. So what is the function of stock options? And how does it work? What is the function? Is it like, I'm hedging against potential up or down? Or how does it work?

Cody Yeh  10:37

Yeah, so option is very different than stocks, stocks, you want to buy low, you want to sell high, you profit it different just like real estate, buy and hold. Very seldom people short the market, that means they think the market will go down. So they sell the stocks thinking will go down and buy it back later and profit the difference. Alfonso is like a lot of question marks. Now-

Alfonso Cuadra  10:58

I'm thinking of Gamestop 

Cody Yeh  10:59

Yeah, GameStop. 

Alfonso Cuadra  11:00

You know what I mean? Like, I'm thinking I'm like, you know, someone obviously hedged against a loss. And then you had, excuse me for my ignorance, because I don't know exactly what happened. But this is my my perspective of it. You had all of these people that have influence, that said, "No." That drove it up, even though based on the P&Ls like the profitability of the company, it should have, it should have went down. So someone made a hedge against GameStop. And other people just drove it up.

Cody Yeh  11:29

Yeah, we can quickly get into that for one minute. So the GameStop what happened there, you're very close to the point. So basically, it's like open book, everyone look at the financial statement of Gamestop and say, this company is not making money, so we gonna beat them up. All the hedge funds said that "we're going to beat them up, we're going to short selling on that we're going to bet that the stock will go down." Well it makes sense because the financials really bad. And then these Robin Hood, or Reddit traders come on be like, "You know what, this is the first time ever, we can get an up on these hedge fund managers. So why don't we all gang up and go buy the stock and push it up?" 

Alfonso Cuadra  12:05

Wow. 

Cody Yeh  12:06

And the more they push it up, the more these hedge fund managers have to cover their position. Because every price that goes up, they are losing money, and the stock price can technically go to infinite. 

Alfonso Cuadra  12:17

Yeah.

Cody Yeh  12:17

As it goes down can only go to zero, but going up it can go to infinite. So they were so scared and they're were covering the losses. The more they cover, means they had more they need to buy, the more the stock goes up, the more they push.

Alfonso Cuadra  12:28

So what would you do in that strategy? Like what would you do if you were in that position? 

Cody Yeh  12:31

I never touched GameStop. We never touched GameStop. 

Alfonso Cuadra  12:34

So okay, let's go back to explaining the stock options.

Cody Yeh  12:37

So going back to stock option, this whole difference between Stock options and stocks, stocks is all about price. 

Alfonso Cuadra  12:46

Yeah. 

Cody Yeh  12:46

Nothing about timing. An option has a different dimension, there's an expiration date, you can predetermine price and there's an expiration date. What that means is that if you think Apple will go up, you can say "Hey I buy a contract, I pay money for a lottery ticket." I think Apple stock will go up by $5 in one month, if it goes up by $5. In one month, I will make money. Otherwise $100 I pay it to the option seller or I pay it to the OLG.

Alfonso Cuadra  13:16

So if it doesn't go up you just get your money back. 

Cody Yeh  13:18

No, you give your money to OLG, I bet that will go up. If it doesn't go up. That's the only the $100 I lost. 

Alfonso Cuadra  13:24

Yeah. 

Cody Yeh  13:25

But meanwhile, our strategies mainly focus on being the OLG or the casino owner or the- or the option seller. This is where Warren Buffett standing at, right? If we say we want to own a stock. Let's say I want to own Apple right now let's says is $150. You know what? I want to own apple at a cheaper price, let's say you want to get off market deals and real estate. 

I'm okay only at $130. Historically, that's been a low point. Seems that there's a strong resistance or support there. Okay, I sell option to say if the Apple stock price drop of 150 to 130 in 30 days, I will buy Apple at 130. But you're going to pay me hundreds of dollars upfront. Why? Because I'm the insurance broker, I sell you option contracts, someone bought that.

Alfonso Cuadra  14:09

So this is something very important that I'm discovering. You're not the one making the bet.

Cody Yeh  14:14

I'm the one taking the bet. Okay, we're like an insurance. We're just like an insurance company. We sell you a contract, we get paid a premium. 

Alfonso Cuadra  14:22

And so anybody can put themselves in that position? 

Cody Yeh  14:25

Anyone can with the right permission, you know what you're doing, then you can.

Alfonso Cuadra  14:29

Yeah. 

Cody Yeh  14:30

Right? And that's what we're doing.

Alfonso Cuadra  14:31

Wow. Okay. The house always wins. 

Cody Yeh  14:35

Yeah. So, yeah. So that's why when I talk to people, we have 95% win rate on individual stocks with higher win rate with S&P 500.

Alfonso Cuadra  14:43

But this is important, an important point that you've just made because I've always thought about stock options, and it was maybe my ignorance that said, "Oh, this is how that works. And what you've just explained to me is completely different than what I thought and it brings a lot more clarity, and security. 

Cody Yeh  14:43

We want to be on the winning side. That's how we win long term. Right with 95% win rate. Okay, if we lose 5% of time. So be it. 

Alfonso Cuadra  14:49

Yeah.

Cody Yeh  14:50

We know what's the worst case scenario.

Alfonso Cuadra  14:52

How many trades are you doing at one time? Or how many options should you have out there?

Cody Yeh  15:16

Just like real estate, our stock option, strategy's comprehensive in the way that we have to slow money wereas buy and hold. So I think few days ago, I just took a screenshot of my Tax Free Savings Account, I didn't do much it was a buy and hold 40% year over year, I don't know if you guys see that. I think a lot of people saw it, I'm like, I didn't do much there. Okay, my active account, which where I make about one to four trades- 

Alfonso Cuadra  15:38

So everybody should have these pots.

Cody Yeh  15:41

Fast, medium and slow money, separate the money, just like in real estate, you should know your goal going in. 

Alfonso Cuadra  15:45

So overall, you're gonna get a return because you might this might not go as fast, but it's more secure. 

Cody Yeh  15:50

Yeah, so we have fast money, you know, more like flipping wholesaling. Yeah. And then we make our active income there to replace her income or replace your wives or partners and come there. And then we have our medium speed money, kind of like BRRRR, take a few months sometimes it could take years and might get stuck on individual stocks that we want to own or selling options on it only at a cheaper price. And then there's a buy and hold. Buying index which is just buying stocks like Apple, Warren Buffett put 90- 40% of his money in. So we have fast, medium and slow money. Sometimes the fast money might be slow, sometimes-

Alfonso Cuadra  16:23

So what's the percentage of money that I should allocate to these- 

Cody Yeh  16:26

Everyone's kind of different though. Some people come to me and is like "Cody, I have 6 million I want to replace half of my income because you know, I work in hospital work in a clinic, I want to replace one of them." I'm like  okay, we reverse engineer. I'm an engineer, I reverse engineer the number based on that number, okay? That's how much you put in that the rest, put in more passive, right, just by index, depending on how active they want to be. 

But usually I'll have three "buckets"; fast, medium and slow money. So when one stops working with temporarily not working, doesn't mean that doesn't work in the long term, always work in the long term, but will balance out or just for example, like real estate when interest rate is high, everyone's Airbnb, Airbnb, we get more cash flow, right? But is Airbnb a better long term strategy? Debatable, but in the meantime, your fast money might work better because of that, right. But if you always have three different bucket, you have equity building for the slow money, you have some BRRRR going on, you have some fast money, you're more invincible to any of the market movement. Right?

Alfonso Cuadra  17:23

And so what's your favorite thing about stock options?

Cody Yeh  17:26

It doesn't cost too much time. It only took me like 30 minutes per week?

Alfonso Cuadra  17:30

30 minutes. So what do you do? 30 minutes per week.

Cody Yeh  17:34

So I didn't start with that. I used to be that guy-

Alfonso Cuadra  17:37

How much time did you put into it at the beginning?

Cody Yeh  17:40

Lots of it. So because- 

Alfonso Cuadra  17:42

Because you want to do like learn the ins and outs.

Cody Yeh  17:44

Learn the ins and outs and go through the mistakes. I have a whole like four coaches now. And to be my coach, you have to make 20% year over year for one to four years in a row as how we qualify them. And then they have to know how to coach and I have to trust them with my students. Right? So it's very strict criteria. But really, in the beginning, you're going to put in like 10 to 20 hours just to learn it. Why? Because we dumb it down so much. 

We have 70 year old students, four of them at first I say no, but they were like "Cody, I will prove you wrong. In six months I'll be your case study. Get me on your podcasts." I'm like, okay, okay, okay, four months, and she's doing well. So that's how we know that they really stress tests us to dumb it down by so much. So now we're very confident to say that 10 to 20 hours to learn our Fast Money and go from there and you can slowly learn our Slow, Medium and Slow money if you have other money that you want to boost your returns. I was put in mutual fund that make 5-8% Right? So they have the whole package of things but to learn our flagship strategy has been featured on TD Bank 10 to 20 hours.

Alfonso Cuadra  18:48

And what's the hardest thing about what you do? What has been the most challenging or something that you had to overcome or something that would be challenging for someone that is trying to get into the game?

Cody Yeh  19:00

I think the challenge for someone to get into the game will be really being coachable. Because now that we screen people very crazy when people come in and say "Cody, this is my last $10,000 it better work or are going to jump the bridge." I'm like dude, this is not the right fit. 

Alfonso Cuadra  19:19

Oh man!

Cody Yeh  19:20

I want someone to say you know what, Cody? I don't need to see this money five years, but hey, I'm trying to replace my income. Do you think this- 

Alfonso Cuadra  19:27

Scared money never makes any.

Cody Yeh  19:28

No. Because the moment something happened, you're like, Oh, your coach taught me wrong. And then they're very stubborn at things right? So when they're more flexible and when they're more relaxed and open to being coached. I think that's a we take away all the rest throughout the years. Don't pick individual stocks. Don't do this. Don't do that because either I make the mistake my coach make the mistake when my students make the mistake. 

We always feed it back up. So we draw smaller circle and say when you're fresh come in, trust me, trust us on this one. Okay, it's not like we don't want you to make more money it's because we have seen it so master the small circle first. And if you want to expand your appetite, then expand it from there. But learn the core first, right, get the basics first.

Alfonso Cuadra  20:09

So if you have a crystal ball, and obviously no one can make real predictions, right. I mean, it's a crapshoot, you know, but what can you expect that the market is going to do? What's the market going to do in the next 12 months? 

Cody Yeh  20:26

So, I mean, it's just like asking Real Estate, where do you think it's gonna go for the next 12 months? 

Alfonso Cuadra  20:30

Yeah. 

Cody Yeh  20:31

Right? And you- 

Alfonso Cuadra  20:31

I can tell you in real estate, you're going to see a lot of opportunity in the next 12 months, the opportunity's right now. So to give some context to the listeners, we're sitting in January of 2024. 

Cody Yeh  20:44

Yeah, it's February 1. 

Alfonso Cuadra  20:46

Oh, is it February 1, February 1, February 1 of 2024. So some of the opportunities that are happening are happening now. The US just announced that they're planning to reduce the interest rates.

Cody Yeh  20:57

Correct.

Alfonso Cuadra  20:58

Three times. 

Cody Yeh  20:58

Correct. 

Alfonso Cuadra  20:59

This year. 

Cody Yeh  21:00

Correct. 

Alfonso Cuadra  21:00

And when that happens, in my opinion, because the entire 2023 I mean, I took action, but people were on the sidelines. I think it's going to be bigger than it was back in 2020. So that's a prediction that I can make based on past experience, correct my own experience, and kind of like to foresee what's going to happen in the future. But I'm not- there's no crystal ball here. And we could be sitting here and you know, watching this and 2025 and say, Boy, were you wrong. 

Cody Yeh  21:31

And there's always a chance of that, right? So the same thing, I totally with you on the real estate side. And guess what? Stock option, when you ask about it, where's the stock market going? Well if it's overall market, if it's US market we're talking about, US has been leading the world, strongest monetary policy's strongest army. So I still believe like everyone's talking about China's taking over. Ray Dalio is talking about China is taking over US. The US dollars going down. I'm like, I don't know. There's- they have their own problem in China too. 

Alfonso Cuadra  22:01

Sure. 

Cody Yeh  22:01

So far, I think for the next 10 years. 

Alfonso Cuadra  22:03

Well you gotta feed 1.3 billion people. I mean, yeah.

Cody Yeh  22:05

And there's a big gap in wealth, just like the US, right? Yeah. But I still believe the US will be the strongest country in the world in the next 10 years. So with that being said, the S&P 500, which is the only vehicle we use for our Set and Done strategy has been going up 8 to 10%, since 1930. Every year 8 to 10%. 

Will that continue to be the thing, maybe one year go down one year go up more, but average out of 8 to 10%. And that's the only thing we focus on. So piggyback on that real estate idea. Stock market front run the real estate market, about three to six months faster. Why? Because doesn't take us much work or money to move. It's just one swipe right? Buy, Sell, so it was a lot faster reflected. So when US come out and say we will drop the rate three times. The stock market already started, like buying on the rumor since it hasn't happened. But the market just shot up like it's just like a straight shoot. 

Alfonso Cuadra  22:05

Yeah. 

Cody Yeh  22:05

Now my question is, why does the US say that? Because the US government never come out and say we're gonna cut the rate. What if they keep it the same or actually turn it up? 

Alfonso Cuadra  22:52

Yeah. Sucker Punch. 

Cody Yeh  22:55

Yeah, I feel like they would-

Alfonso Cuadra  23:04

They can do it. Because they never said we're going to do that. 

Cody Yeh  23:18

Yeah. 

Alfonso Cuadra  23:19

We're thinking about maybe-

Cody Yeh  23:21

Testing out, maybe just throw it out and see, if the economy already got better.

Alfonso Cuadra  23:25

Theres a tick or if there's no tick. 

Cody Yeh  23:26

Yeah, just just by saying it, they know they moved the market ready. So see what people do and wait for three months and say, "Hey, that didn't really help. Okay, maybe we need to drop it." Or maybe it really helped and like, "Okay, guys, the inflation is still going up. We still can't control we actually need to hike up the rate." I don't think- 

Alfonso Cuadra  23:43

Yeah. 

Cody Yeh  23:43

The chance is really low. 

Alfonso Cuadra  23:44

Yeah. 

Cody Yeh  23:45

But I'm always thinking, if that happened, how are we still protected? 

Alfonso Cuadra  23:49

Yeah.

Cody Yeh  23:49

Right? So that's why we don't focus on individual things. We just like the whole index, if the market is going up, right, the volatility is a lot slower. Imagine if you invest in the whole US real estate rather than one house in the one county in one city, right? We invest in the whole US. So volatility is less.

Alfonso Cuadra  24:08

So let's address the gorilla in the room. What's going to happen with AI, the whole AI industry? Are we going to even know what's going on? Yesterday, I had a whole AI conference, I had a conversation with- I thought it was a human being. But it comes- after like 10 minutes of having this conversation with someone. I figured out I'm talking to AI. Okay, so, you know, AI is coming for the jobs are coming for the economy, it's going to be doing stock options, or I don't know. So what is your opinion on the AI situation? 

Cody Yeh  24:43

It's actually a very popular question. And-

Alfonso Cuadra  24:46

And obviously it creates a whole new industry. It's a whole new industry that people are investing in, right?

Cody Yeh  24:53

And I think AI overall will definitely increase a lot of efficiency. But because whenever we increase efficiency, we deal with a lot of redundancy in any of the jobs. But that doesn't mean there's less jobs. I believe it'd be adapters, more jobs.

Alfonso Cuadra  25:07

So there'll be new jobs created. 

Cody Yeh  25:08

New jobs created, but you gotta adapt too. 

Alfonso Cuadra  25:10

Yeah. 

Cody Yeh  25:11

Now as an investor, well the AI stocks are really hot.

Alfonso Cuadra  25:14

Is it like 98, 99? Like the dot com? 

Cody Yeh  25:18

Dot Com Bubble? Is it like the website? 

Alfonso Cuadra  25:20

Yeah. 

Cody Yeh  25:20

It could be by think that humans are still moving in the direction where everything's becoming more efficient. Now, I don't invest. I have some Google stocks. Okay, not stock advice. But I just think because I pay Google so much money every month. I have run ads. My YouTube channel's on it. Yeah, my google drive everything. 

Alfonso Cuadra  25:38

Yeah. Well, that's a Warren Buffett strategy: invest in things you use. 

Cody Yeh  25:42

I use! Yeah. So I only invest the things I use and I can see I pay them tons of money, and I see their financial report, right? But I think AI will be very interesting. And you can't stop it. And you know, my team yesterday, showed me a software that they can write something. And then someone talking with my voice. 

Alfonso Cuadra  26:01

Wow. 

Cody Yeh  26:02

So they sent it to me and say, "Cody, can we use this?" But I never said that before. 

Alfonso Cuadra  26:08

Wow. 

Cody Yeh  26:08

Yeah. Do you want to use it? I'm like "Oh, wow, this is scary." But I think don't be scared about it, but learn about it. And there's still a lot of things you can Google and say, they're hard to replace. 

Alfonso Cuadra  26:19

Well, yeah, because of the investment, like the economy, it's obviously there's going to be- it's a disrupter, right. And so there's going to be some companies that are affected, there's gonna be some winners and losers, right. And when it comes to the market as a whole, I think that there's going to be something happening. And I would just curious, you know, what was your perspective?

Cody Yeh  26:41

Yeah, to me, I don't really worry as much because in a market as a whole, when they become more efficient means more productivity, more productivity, more money, more money, the stock goes up. So as long as US is leading the AI movement, I'm happy about it, because most of my money in North America. But if individually, people are worrying about AI, learn about ChattGPT, learn about any of the more fundamental and mundane jobs, it could be replaced by AI, but utilize it. 

Alfonso Cuadra  27:09

Wow. 

Cody Yeh  27:09

And if you really want to say "you know what, Cody, I want nothing to do with AI" Find a job that the AI cannot do. For example, a plumber? I don't think AI can go in and change. Oh, not in the next 10 years, right. Things like that. 

Alfonso Cuadra  27:23

Yeah. 

Cody Yeh  27:23

Right? So you can do those jobs if you really like, but we're like wealth builders. So we have to embrace what will increase efficiency and use it as he was coming in and keep rolling with the punches and adapt to it. 

Alfonso Cuadra  27:37

Love it. We learned about stock options. I learned something today. I'll tell you a finally- 

Cody Yeh  27:43

Something clicked!

Alfonso Cuadra  27:44

 I finally understand what you do.

Cody Yeh  27:45

You've been having me on the stage. "Cody's a guy making money off thin air." Now you finally understand what the thin air is. 

Alfonso Cuadra  27:53

No, I want to thank you for coming by. I want to always leave people with something inspirational. And what's your mantra? What's your mantra? What's your quote? What do you live by?

Cody Yeh  28:04

I'm a boring guy. I read audiobooks a lot. I don't have a mantra, you know, my mom likes to say, "Where's your focus is where your results." And I'm like okay, that kind of makes sense. So there's so many mantra but the way I treat myself with my entire team has guys, treat yourself as the top athletes. If you treat yourself as a top athlete, you treat your body accordingly you treat your mind accordingly you treat how you manage yourself or other people accordingly, everything's else will be solved. That's why all these top company like to hire Ex-Olympians, Ex-people who are top athletes. Why? Because they're proven.

Alfonso Cuadra  28:40

They know the discipline, and they know how to take care of themselves in their mind. 

Cody Yeh  28:43

And if you can do that, you can do anything. So that's the way I live by; top athletes, I eat while I sleep while I take care of myself take care of my team and everything. I was just I can roll a lot more punches than anyone else.

Alfonso Cuadra  28:54

So all your information is going to be in the show notes. Everybody's going to know how to find you. And I just want to thank you. You know, we've had a lot of fun. And even since we met back in, you know, the COVID years.

Cody Yeh  29:08

Yeah, we met in Montreal. Yeah.

Alfonso Cuadra  29:11

You know, we've always had a lot of fun together. So thanks for coming by. There will be a part two to this interview. But for now, thank you. And guys, make sure you reach out to Cody, if you want to know what's going to happen next with AI. Thank you. We'll see you next time. Let's go.

Cody Yeh  29:28

Let's go. Thanks for having me, man. 

Alfonso Cuadra  29:29

Yeah!

Carl Richards  29:30

Thanks for listening to The WealthGenius Podcast. If you have a question or comment about something you heard today reach out to The Godfather via social media or email him anytime. All that information is in the show notes. And of course don't forget to subscribe so you never miss an episode of The WealthGenius Podcast. The WealthGenius podcast; until next time, see you at the top!