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The Compound and Friends

The Investor Utopia is Here with Eric Balchunas

08 May 2026

Transcription

Chapter 1: What is discussed at the start of this section?

0.031 - 22.323 Unknown

Don't even get me started. Don't get me started. I saw what you posted the other day and deleted. Which one? I saw the tweet. about mixed fans harassing Sixers fans as if... Oh, no, I didn't delete that. Oh, you didn't? No, no. I left that one up. Hold on. As if you are not the most aggressive fan base in the entire United States.

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22.343 - 24.066 Josh Brown

I know. Well, that's why you shouldn't do that. Literally.

0

24.867 - 35.147 Unknown

Literally. I know. But it's different sports. Basketball fans are not as psychotic. They're not as psychotic. And they're not as drunk. No. I probably can get away with it. And Embiid asked for it.

0

36.029 - 49.058 Josh Brown

If he shut his mouth and didn't say anything. Oh, man. I get it. Everybody, I went to an X game with my kid three months ago, and, like, everybody boos Embiid constantly. He's hated. No, he loves it. Oh, he likes it.

0

49.078 - 50.141 Unknown

He loves it. He's a great villain.

50.161 - 51.604 Josh Brown

But I'm saying he's hated here, yeah.

51.584 - 51.985 Unknown

Oh, yeah.

52.005 - 56.613 Eric Balchunas

He loves it. He loves being there. It's also the longstanding thing with Kat. That's like seven years old already.

56.633 - 72.343 Unknown

But he said New Yorkers don't come to Philly. It's like, dude, literally, you're holding up a sign. Great idea. Say, please come. Anyway, Josh and I are going. Josh is taking Nugget. Tickets are plummeting like a stone. Are they? Cracking hard. Yeah, I might go. Lower bowl is now below 400.

Chapter 2: How do sports fan dynamics influence investor behavior?

73.284 - 80.814 Eric Balchunas

And you can get in for below 200. This might be the worst. This might be the worst Sixers home loss in postseason history. What's about to happen?

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80.834 - 84.499 Josh Brown

Well, I will say. I don't love you saying that. Yeah.

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84.519 - 85.921 Eric Balchunas

I said might be, not will be.

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85.961 - 87.604 Josh Brown

Pride come, might fall. Be careful.

0

87.624 - 88.705 Eric Balchunas

Seriously. Might be.

89.065 - 90.808 Josh Brown

And you know, the Knicks. What are they going to do? They can't run.

Chapter 3: What are the implications of ticket pricing for sports events?

90.888 - 95.274 Josh Brown

It's not about us. It's about you. I know, but at the end of the day. Dude, don't end of the day.

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95.294 - 107.451 Eric Balchunas

Eric, they can't. It's about you. You have no bench. Listen. Eric, they can't play Maxie 45 minutes. Yeah. To the point where by the third quarter, he's settling for pull-up threes because he can't even make it coast-to-coast another time.

0

107.471 - 111.577 Josh Brown

We shouldn't have traded Jeremy Keane. What was Dow thinking? I don't know. Because we only have seven guys.

0

111.617 - 128.622 Unknown

You gave him away. Eight with Embiid. You gave him away. By the way, yesterday, I said to my friends, I'm happy. I mean, I'm sorry. I want Embiid to play. I wasn't happy that he would miss a game. You're clearly better without him. The offense is not stagnant. He's a corpse on defense. You guys are better without him. I'm not kidding.

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128.602 - 137.873 Josh Brown

Let me just say one thing. Go ahead. I'm okay if we lose. You know why? Because we beat the Celtics. F*** them. The Celtics... have owned us for 10 years.

Chapter 4: How does the conversation shift to market trends and investment strategies?

138.413 - 152.637 Josh Brown

This was like defeating the dragon. It was a great win. This is like- At game seven in their backyard. Oh, we beat them three times in TD and it was glorious and it felt good. I was like, we're going to win this game. I don't have that feeling with the Knicks. I'm like, I think they're going to win.

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152.657 - 154.741 Eric Balchunas

I am actually happy that you guys beat the Celtics.

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154.761 - 164.896 Josh Brown

Me too. But if you were playing the Celtics, I would become a Knicks fan. Like you would, you have no idea. I hate the Celtics. Knicks are my second favorite team. Really? But F you for now.

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164.956 - 166.117 Eric Balchunas

He's been in New York long enough.

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166.137 - 181.032 Josh Brown

Yeah, no, I was here in the late 90s for Larry Johnson's four-point play. I was on a rooftop in Brooklyn at a party. No kidding. In my early 20s. And Alan Houston hitting the dropper against Miami. Against Miami. So I was there for that Latrell Sprewell run where they lost the Sands.

181.052 - 186.578 Unknown

But that was so fun. It was a great run. The Sixers are very likable, except them being. Like, Edgecombe and Maxey are very likable.

186.858 - 194.77 Eric Balchunas

Yeah. And Max is incredible. And you know what? You're going to have them for, like, that's your core now for years, hopefully, for years to come.

194.79 - 213.418 Josh Brown

And those are great players. I agree. Edgecombe, his energy, he's really good at guarding. Brunson's going to score anyway, but I thought Edgecombe did a good job. He gets over screens and he gets back on Brunson. He did great. He's good. Go to the game. One of your dumbass bench players messed with Edgecombe at the end of the game. Did you see that?

213.398 - 214.96 Unknown

Yeah. Yes, I saw the chirping.

Chapter 5: What personal investment experiences shaped Eric's views on ETFs?

2798.095 - 2806.028 Josh Brown

We're so jaded. Nobody cares. I know, but that's amazing. And I agree. People have to sometimes remember how that took a long time to get to.

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2806.048 - 2810.035 Eric Balchunas

Eric, people that never called a broker on the phone.

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2810.215 - 2813.661 Unknown

How much did it cost to buy a mutual fund back in the day? The transaction fee.

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2814.061 - 2828.798 Eric Balchunas

So I don't think I've ever told this story here before. And it only takes 10 seconds to tell. The first time I ever bought a stock Ever, ever. I was 18 and I called my dad's broker. And his name was Jerry. And he was at Merrill Lynch in like Huntington, Long Island.

0

Chapter 6: How do active and passive ETFs compare in today's market?

2829.62 - 2847.181 Eric Balchunas

And just mocking me the entire time. Like, oh yeah, you want to buy? What do you want to buy? Like... And I don't even blame him. Like, looking back in hindsight, I don't blame him. I totally get it. It's like, oh, I got to take this call on my f***ing client's son. Hang on. Hang on a sec, guys.

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2847.301 - 2867.75 Eric Balchunas

I can almost picture the golf putter in his hand as, you know, the cordless phone in between his chin and his shoulder. So I, for whatever reason, I gave him some ticker symbol of some stupid oil stock somebody told me to buy. The whole experience was so humiliating. And I knew it at the time. I was old enough to know that I was being mocked, right?

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Chapter 7: What trends are emerging in the ETF landscape?

2868.211 - 2891.844 Eric Balchunas

Most people even aren't. And then... Of course, the stock goes down five points. It was like 13. I went to eight. I was so humiliated by the purchase. I was afraid to call him and ask him why it was down. And like that stuck with me. So I'm with you. Anytime I see somebody creating something, ways for people to not have to go through that and be able to invest. I do think it's punk rock.

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2891.904 - 2906.926 Eric Balchunas

I do think it's cool. And we probably take for granted how much easier it is today for an 18 year old to put their first trade in and not feel like a total fucking asshole versus even 25 years ago, or maybe even 15 years ago. How do you like me now, Jerry?

0

Chapter 8: How are prediction markets influencing investment strategies?

2907.387 - 2907.968 Eric Balchunas

So.

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2907.948 - 2909.875 Unknown

By the way, speaking of punk rock.

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2909.895 - 2911.14 Eric Balchunas

Joey's probably a fan of the show now.

0

2911.16 - 2917.603 Unknown

Speaking of punk rock, you make the best metaphors with music, with ETFs. Have you not been to a concert at Future Proof?

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2918.242 - 2935.143 Josh Brown

No. Well, okay. I feel like we haven't seen you. First of all, the future proof, you tend to have it right after Labor Day. Yeah. Is that a big one for you? Well, it's the first week of school. I have two young kids. It's a weird time. I got to go out there. It looks great. And you have the one in Miami that competes with Vetify.

2935.463 - 2937.365 Eric Balchunas

We're two weeks after Labor Day this year.

2937.385 - 2942.876 Josh Brown

But I went to the first one when it was called what? No, no, no. No, no. It wasn't called Future Proof.

2943.337 - 2944.238 Eric Balchunas

No, don't even try it.

2944.258 - 2949.486 Josh Brown

This was like when Pearl Jam was called Honor Friday. No, Radiohead was called Honor Friday.

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