00:00:00
so which is better paler or SCD one's a
00:00:03
highflying crazy appreciating machine
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named paler that's been absolutely
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crushing it lately and the other is kind
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of flat lately but there has to be a
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reason why Professor g a lots like 33%
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of his entire portfolio to this SCD and
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why all these YouTubers and bloggers are
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talking about SCD as the Holy Grail of
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dividend investing so let's discuss in
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this video I'm going to give you some
00:00:30
pros of paler and then some pros ofd
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then I'm going to give you some cons of
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paler and some cons ofd I'll tell you
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not only which one I think is better but
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also how to invest in each or both for a
00:00:43
very successful portfolio for any
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investors I'm Nolan Goa my students call
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me Professor G and I made this channel
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to make investing simplified paler is
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definitely one that's been quite popular
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this year amongst investors it's also
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one that's a bit confusing even when I
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look here at investing.com which is
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where I usually go first for investing
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research it shows that the company
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health is great but the fair value is
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way overvalued but the technical
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analysis says strong bu but analyst
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sentiment is actually neutral what yeah
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that's kind of what I'm thinking let's
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dive deeper so here's some pros of paler
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paler is definitely a lone wolf in its
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separate specific category within AI the
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hardware side of AI has a bunch of big
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names think things like Nvidia Taiwan
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semiconductor Micron a bunch of
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different companies trying to take
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pieces of that market chair Palante tier
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is in the software space and they seem
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to be Head and Shoulders above any of
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their competitors recently paler just
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skyrocketed up over 20% in a couple of
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days paler reported a huge growth
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handily beating wall Street's
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expectations the company delivered
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earnings per share of 14 cents on 828
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million in Revenue that beat the 11
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cents on 776 million expected by
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analysts CEO Alex karp known for his
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bold pronouncement said of the sales
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momentum that it was unlike anything
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that has come before and that he
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believes paler will lead a revolution in
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the US over the next 3 to 5 years
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several analysts have raised their price
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objectives for the stock since paler on
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Monday gave a strong forecast for 2025
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with Bank of America City UBS w Bush
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Morgan Stanley and others boosting their
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targets paler on Thursday also announced
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it would integrate Gro the chatbot from
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Elon musk's xai into its artificial
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intelligence platform in a note to
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clients Tuesday Bank of America analyst
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suggested Elon musk's new development of
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government efficiency and the Trump
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administration's focus on artificial
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intelligence could present a major
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opportunity for paler for me one of the
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biggest things about this business that
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I really like is not just that they're
00:02:59
in in A League of Their Own but also
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that they manage their cash
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exceptionally well especially for a high
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growing company like this they have over
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$2 billion in cash on hand with zero
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debt the reason why this is so important
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is because they have crazy competitive
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Advantage a company that's going to try
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to compete against palen tier who has
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not only first mover advantage and all
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this competitive Advantage there but
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also has a bunch of cash just sitting
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there ready to deploy that's going to be
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very hard to beat so what even is palen
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paler is a tale of two businesses Gotham
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and Foundry the former is an aid driven
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platform that helps Federal governments
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collect data and assists military
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organizations with Mission planning and
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execution meanwhile the latter is an AI
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and machine learning fueled platform
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designed to help businesses better
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understand their data with the goal of
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streamlining their operations but let's
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talk about SCD what are some pros about
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this this is a dividend ETF with some of
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the best and safest Blue Chip dividend
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stock available it takes the guesswork
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out of it for you and buying just one
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share gives you access to over a hundred
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great companies so this is an ETF versus
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paler being an individual stock that
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alone is a huge Pro because that just
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brings down your risk so much when you
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invest in an individual stock you have
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to be right about not only the sector
00:04:20
but also that specific company within
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the sector whereas withd you don't even
00:04:24
have to be right about one of those
00:04:26
companies or even one of the sectors
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within the ETF the entire ETF will make
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up for it if one or two of the sectors
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and 10 or 20 of the companies go down
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the rest of it should pull it back up
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and keep your risk very very stable it's
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also one of the most balanced ETFs out
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there as far as sector balance so no one
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sectors taking up the majority the top
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10 companies are very sustainable and
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safe companies that aren't going away
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anytime soon like fiser ABY Coca-Cola
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Cisco Black Rock and even Lockheed
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Martin the dividend yield is used
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usually around 3.6 to 3.8% which is
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solid but the more important thing is
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the dividend growth you can see each
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year here some very solid growth over
00:05:08
the past 10 years and you can see even
00:05:10
more here the actual kager or compound
00:05:13
annual growth rate of the fund a good
00:05:15
kager is usually 5 to 8% this one
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consistently is in the double digits
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this is huge if you ever dream about
00:05:22
having passive income in the future so
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what are some cons about Palante here
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well the PE Ratio is pretty nuts but you
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already knew that along with a pretty
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crazy PE ratio the other concern for
00:05:34
palente company valuation would
00:05:37
specifically pertain to the price to
00:05:39
sales or Ps ratio looking back to the
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bubble a quarter century ago leaders
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like Amazon and Cisco Systems peaked in
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the vicinity of a trailing 12mon PS
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ratio of 40 interestingly enough Nvidia
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may have also topped out at a PS ratio
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of around 42 last summer so this price
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the sales ratio is important we usually
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want it to be as low as possible
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anything in the 40s it starts raising
00:06:05
some pretty crazy red flags based on
00:06:07
palente teers trailing 12 Monon sales
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of$
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2.86 billion and its market cap and
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after our trading on February 3rd it's
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commanding an almost unheard of PS ratio
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of 83 so obviously the biggest cons or
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anything negative that I've heard about
00:06:24
paler only has to do with investing in
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the stock obviously the company itself
00:06:28
is amazing keeps crushing it as far as
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all their earnings reports and
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everything that they keep doing but as
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far as how much we have to pay the
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premium to be investors in the company
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it's kind of insane but just know as
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investors especially for a company like
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this that's kind of new the whole idea
00:06:45
is that we're investing for the future
00:06:47
and not necessarily for the present so
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I'm excited to see what happens with
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this company so now the cons of SCD
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straight up it's been pretty flat for a
00:06:55
bit definitely underperforming against
00:06:57
the S&P 500 or Tech or growth in the
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past couple of years I get it it's tough
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to invest in SCD especially if you're a
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newer investor and you see all these
00:07:06
other ETFs things like any of the growth
00:07:09
sector stuff or the semiconductor stuff
00:07:11
or any of those you see those going up
00:07:13
10 15 20% and you see shd at like 3%
00:07:17
that's not exciting I understand it's
00:07:20
definitely hard to keep with a
00:07:22
disciplined approach so out of paler and
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shd which one's best which one should
00:07:27
you invest in well which which is best
00:07:29
on a football team offense or defense
00:07:32
which is best in getting healthier
00:07:34
stopping eating bad food or getting
00:07:37
moving and working out the answer is
00:07:39
definitely going to be both and it's a
00:07:40
combination and you're using both for
00:07:43
different reasons and same thing happens
00:07:45
with picking a high growing and risky
00:07:47
stock like paler with also having a safe
00:07:51
solid sustainable ETF that has some cash
00:07:53
flow like SCD both can be used for the
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performance of an amazing portfolio and
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that's exactly what I do and why I do
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that I have such a large portion of SCD
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that really is quite conservative and
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very very safe and so I can afford to
00:08:08
take a little bit more risk and that's
00:08:10
what I did with paler paler is
00:08:12
definitely my riskiest stock pick even
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though SD has been underperforming for
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the past 2 or three years you can't just
00:08:19
put all of your portfolio into something
00:08:21
highflying like Nvidia even though
00:08:23
nvidia's been absolutely on fire for the
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last couple of years those of you that
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just started investing in Nvidia
00:08:30
probably had a huge shock when you woke
00:08:32
up and saw that it was down like 20%
00:08:35
last week if Nvidia was the vast
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majority of your portfolio or any
00:08:38
significant portion of your portfolio
00:08:40
your portfolio probably looked pretty
00:08:42
bad and since Nvidia is in things like
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the snp500 and all of the growth ETFs
00:08:47
and AI ETFs if that's what you're mostly
00:08:50
investing in then most of your portfolio
00:08:53
is down last week when Nvidia went down
00:08:55
SCD was really one of the only ETFs that
00:08:58
was actually in the group green when
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everything else was in the red and just
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remember even with all the slow growth
00:09:04
of shd over the past 2 or 3 years over
00:09:07
the past 10 years the average rate of
00:09:09
return for the fund is still over 11%
00:09:12
per year it also works great to keep
00:09:14
your portfolio safe in the event of a
00:09:17
huge Market drop it has much lower
00:09:19
volatility than any of the other ones
00:09:21
and that means that if the whole Market
00:09:23
drops shd will only drop somewhat
00:09:26
keeping your portfolio afloat so now
00:09:28
what you want to do is you want use both
00:09:30
in your portfolio or both Styles in your
00:09:32
portfolio one is used to make sure you
00:09:34
get the highest highs if AI does boom
00:09:37
like crazy you should have your growth
00:09:39
ETFs or maybe a couple of individual
00:09:41
stock picks and for me paler is
00:09:43
definitely that one but then you also
00:09:45
want to make sure that you don't hit the
00:09:47
lowest lows so you want to mitigate risk
00:09:49
and that's what SCD is for shd also
00:09:52
gives this very solid dividend that just
00:09:55
keeps growing and that snowball effect
00:09:57
of the dividend is amazing when I first
00:09:59
started investing in shd I used to get a
00:10:01
couple dollars worth of dividends then
00:10:03
it started getting to the point where
00:10:05
every single time that dividends were
00:10:06
given every quarter it would buy me like
00:10:09
one or two shares
00:10:10
ofd now I'm at the point where it's
00:10:13
buying either multiple shares of shd
00:10:16
without me doing anything every single
00:10:18
quarter or I could take that money out
00:10:20
and just pay bills and things and that's
00:10:23
just an awesome way to earn some passive
00:10:25
income with me doing absolutely nothing
00:10:27
just being a long-term investor in it I
00:10:29
love that but I also love the potential
00:10:31
growth that palente tier could have and
00:10:32
I'm excited to see what both do over the
00:10:35
course of this 2025 I'll be dollar cost
00:10:38
averaging into both of them and I'm
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excited to see what happens by 2026
00:10:43
watch either of these videos to keep you
00:10:44
going strong in your investing and let
00:10:46
me know down in the comment section down
00:10:48
below which one do you think is better
00:10:50
for your portfolio paler or SCD
