The Capitalist Investor - Episode 51

As of Wednesday, November 18th the Cleveland Browns are 6-3. If they go 8-8 it will be their first non-losing season since 2007. So in this episode of The Capitalist Investor, we thought it would be fun to go through and compare some of the players and coaches on the Browns to stock categories. Don’t miss this fun episode!

Outline of This Episode

  • [3:41] Myles Garrett: the steady out-performer
  • [7:55] Kevin Stefanski: the “handsome” stock
  • [13:21] Odell Beckham Junior: the under-achiever
  • [18:42] Jarvis Landry: Mr. Consistency
  • [20:10] Nick Chubb and Kareem Hunt: The workhorses
  • [23:09] Baker Mayfield: the love/hate relationship
  • [26:16] Bill Belichick: the stock that got away
  • [29:13] Josh Gordon: stay-at-home stock
  • [32:08] The Browns overall stock picks
  • [35:20] Where is the Browns season heading?

Myles Garrett: the steady out-performer

Myles Garrett is leading the league in sacks. I would label him the steady out-performer. He was the #1 overall draft pick. You get what you pay for. He is Amazon. When you price what you pay per unit of growth you’re getting, Amazon is dirt cheap. Myles Garrett is worth every penny the Browns paid for him. Amazon is just going to keep disrupting industries. Derek would say he’s like Apple. When will it slow down? It’s a name that isn’t going away. They’ve built an ecosystem that locks people in. They haven’t grown their earnings, but their stock value continues to grow.

Kevin Stefanski: the “handsome” stock

Kevin Stefanski is a huge change from Freddie Kitchens. Freddie didn’t have himself together, so how was he supposed to instill discipline in his team? Kevin is young, he’s in shape, and he’s not getting hit with awful penalties left and right. Stefanski is the market-leading “handsome” stock. He’s like Microsoft. The big tech companies carry the entire stock market. You’d expect that if Microsoft and the rest of the Big 5 are doing well, everyone else does well. Microsoft isn’t going anywhere. It’s a handsome stock.

Derek says Stefanski is like Penn National Gaming stock. When it first came out, Derek wasn’t on board, just like Derek wasn’t on board when Stefanski was hired. He didn’t believe he was ready for a head coaching position. The marketing power behind Barstool will do great things for Penn National. Derek has seen what they’ve done. So far, both have surpassed expectations.

Odell Beckham Junior: the under-achiever

ODJ is the shiny new object, the under-achiever, and the stock that blows up in your face. He has been a huge disappointment. He looks like he didn’t want to be there. Derek believes he’s like Beyond Meat stock. Derek loves barbecuing and HATES the Beyond Meat concept. It’s priced so high that most of the country would have to switch to fake meat to make it work. If you’re buying at this point, it’s got a long way to go.

I think he’s overvalued, just like Disney is right now. It’s trading around $145 at the time of recording. When the parks were open and they announced Disney Plus, the stock zoomed from $110 to $130 in one day. Orlando is currently running at a reduced capacity and it’s somehow still trading higher. I cannot believe it’s trading where it’s at.

Baker Mayfield: the love/hate relationship

Baker Mayfield is the epitome of the love/hate relationship. We love him every other week. He’s got to get the run game working. His stats are frustrating. The last two games were impossible—50 mph winds and hail? No one is going to do well in those circumstances. You have to rely on the run game. That’s coming off the best game of his career with 5 touchdowns. He’s Tesla. We love the company, they have a great product, and they’re innovative in the electric car game. But the valuation is egregious. It’s rich.

The Browns: poised to improve

The Browns have been struggling for years—but they’re poised to rapidly improve. So who can they compare to? I’m going with T.J. Maxx. The stock didn’t get crushed like other brick & mortar retailers. Now they’re trading at their 52-week high. Other brick & mortar retailers are dead—but T.J. Maxx and Home Goods are unique. Women love these stores. It’s a treasure hunt experience that cannot be done online. They’ve had some significant headwinds working against them (with hundreds of stores still closed). But they will be one of the few that survive in their brick & mortar state. Who does Derek think they compare to? Listen to the whole episode for the answer. Plus, we share our stock picks for Jarvis Landry, Nick Chubb, Kareem Hunt, Bill Belichick, and Josh Gordon. Check it out!

Resources & People Mentioned

Connect with Derek Gabrielsen

Connect With Mark Tepper

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Episode 23:
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Episode 39:
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Episode 55:
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Episode 11:
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Episode 24:
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Episode 40:
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Episode 56:
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