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David Tepper: $7 Billion in ONE Year (Documentary)
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Dec 11, 2024
From a difficult childhood to dominating Wall Street, this is the incredible rags-to-riches story of math genius David Tepper. Learn how he transformed Appaloosa into a hedge fund empire and made $7B betting on the 2008 crisis. š Chapters 00:41 - The Early Years 05:53 - Transformation 16:00 - Transcendence Want to learn to invest like David Tepper? Join the newsletter: https://bit.ly/47pcTJT
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0:00
it's the sweltering summer of 1998 and
0:03
the financial world has been rocked to
0:05
its core Russia a global Powerhouse has
0:09
defaulted on its debt sending Tremors
0:11
through the international markets
0:13
investors worldwide scramble to salvage
0:16
what they can from the wreckage yet
0:18
amidst this turmoil one man perceives a
0:20
golden opportunity David teer The
0:23
Mastermind behind Appaloosa management
0:25
one of history's most successful hedge
0:27
funds today we delve into the remarkable
0:30
story of a man who defied his father's
0:32
oppressive rule constructed a global
0:34
Empire from the dust and became the
0:36
father he was denied all by adhering to
0:38
his own unique investment
0:49
[Music]
0:53
strategy born in the steel Laden heart
0:55
of Pittsburgh Pennsylvania tea hailed
0:58
from a family that straddled the line
0:59
between poverty and the middle class an
1:02
introverted child he resided in a modest
1:04
four-bedroom brick Row House nestled in
1:06
the Stanton Heights neighborhood David
1:09
was raised in a household of contrasts
1:11
shaped by his parents' professions and
1:13
their personal interactions with him his
1:15
father Harry an accountant by trade
1:18
imparted the principle of equity
1:20
instilling in David the importance of
1:21
treating everyone with equal respect his
1:24
mother Roberta a dedicated teacher
1:26
cultivated his innate curiosity and
1:28
fostered his intellectual growth yet
1:32
away from the public eye David contended
1:35
with a grim truth despite the values
1:37
Harry preached he was an abusive
1:39
presence casting a long shadow of fear
1:41
over David's day-to-day existence
1:44
David's childhood marred by the Spectre
1:46
of domestic violence left an indelible
1:48
mark on his Spirit fueling an intense
1:50
yearning to break free from the cycle of
1:53
[Music]
1:56
abuse his means of Escape manifested in
1:59
a prec cous gift for mathematics David's
2:02
aptitude for numbers distinguished him
2:04
from his peers even in his earliest
2:06
years as a mere toddler he astounded
2:09
those around him with his ability to
2:10
perform intricate calculations
2:12
effortlessly in his mind it wasn't long
2:15
before David's extraordinary talents
2:17
were discovered by others when David was
2:19
just five his sister presented him as
2:21
her showand tell exhibit to her class
2:24
issuing the traditional choice of a
2:26
cherished toy the room watched in
2:28
Collective astonishment as the boy who
2:30
had yet to receive any formal education
2:32
recited multiplication tables with
2:34
impeccable
2:36
Precision to build on his early aptitude
2:38
David's passion for numbers intensified
2:41
when his grandfather a fervent Sports
2:43
Enthusiast gifted him a set of baseball
2:45
cards David perfectly memorized the
2:48
stats for each player a rare talent that
2:50
would later prove useful in the world of
2:52
investing his early shyness and tendency
2:55
to retreat into numbers was a byproduct
2:57
of his home's tense atmosphere a sh
2:59
shadow of his father's unpredictable
3:02
moods yet it was on the playing field
3:04
where he found his escape and his
3:07
voice amidst the solemn backdrop of a
3:09
cemetery the vibrant energy of football
3:12
games with friends carved out a space
3:14
for laughter and connection a stark
3:16
contrast to his silent struggles at
3:18
home over time David's remarkable
3:21
transformation unfolded the reticent boy
3:24
who once retreated into the World of
3:26
Sports began to emerge with a newfound
3:28
boldness his humor once a private
3:31
Comfort now Spilled Out in classrooms
3:33
and hallways his Antics lighting up the
3:35
faces of his peers signaling the
3:37
shedding of a weight once carried in
3:40
solitude but not all of David's exploits
3:42
were harmless fun though once he found
3:45
himself in hotwater after instigating a
3:47
squirt bottle jewel in the chemistry lab
3:50
the aftermath LED both him and will
3:51
Waker his ever ready accomplice to the
3:54
vice principal's office as they braced
3:57
for a choice between a paddling or a
3:59
suspension Fortune intervened with the
4:01
unexpected ring of the fire
4:03
[Music]
4:05
alarm while David sidestepped that day's
4:07
disciplinary action he had been tempted
4:09
to choose the paddle out of fear of the
4:11
far Graver repercussions awaiting him at
4:14
home despite his innate gift for numbers
4:17
High School report cards never bore an a
4:19
for David it simply wasn't report cards
4:22
that defined him instead David came
4:25
alive under the spotlight stealing the
4:27
show as the lead in bye-bye birdie
4:30
and occasionally the irresistible Allure
4:33
of free pancakes from the nearby
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Seminary proved stronger than the pull
4:36
of the classroom leading David our math
4:39
Savant on a Savory
4:41
Escapade yet behind that playful
4:44
exterior David bore the weight of a much
4:46
deeper Story wrestling with dark
4:48
remnants at home he also found himself
4:50
amidst the thorny complex Maze of racial
4:53
tensions a testament to that complexity
4:56
Peabody High stood distinct while
4:58
surrounding Neighbors neighborhoods
5:00
remained predominantly white David's
5:02
school was an even split half black half
5:05
white a microcosm of a changing world
5:08
the weight of these tensions became
5:10
palpable during football
5:11
matches facing Westinghouse high school
5:14
games were played in haunting Silence
5:16
with empty stands as a precaution
5:18
against potential violence yet these
5:20
societal challenges didn't just stay on
5:22
the football field seeking a job at
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McDonald's to support his hardworking
5:27
family David faced rejection not for
5:29
lack of skill or Spirit but because of
5:31
his afro but life much like a football
5:34
game has its twists and turns while one
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door closed David found openings
5:40
elsewhere from the sizzle of the deli
5:41
griddle to the doorstep sails of sharp
5:44
knives and into the flower air of a busy
5:46
Bakery yet amidst all these Ventures
5:49
another pivotal chapter
5:58
unfolded driven by his innate knack for
6:01
numbers David teer made his very first
6:03
foray into the stock market behind this
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budding interest was more than just
6:07
curiosity it was a way for David to find
6:10
Hope and control in a world that had
6:12
often been harsh a subtle Defiance
6:14
against the Shadows at home with the
6:17
determination of someone Beyond his
6:18
years David made his entry purchasing
6:21
100 shares of career acmy at $2 a piece
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today's value a tidy sum of roughly $600
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yet as the Winds of Fortune would have
6:32
it career declared bankruptcy dealing a
6:35
setback to Young David however this also
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proved a revelation serving as his
6:41
maiden voyage into the turbulent Waters
6:43
of distressed
6:44
debt while it felt like the worst of
6:46
times for young David it ended up being
6:49
his secret weapon later in
6:51
life stepping beyond the trials of high
6:54
school David's next chapter began at the
6:56
University of Pittsburgh with the weight
6:58
of Finance ing his education on his
7:00
shoulders it was time to truly immerse
7:02
himself in his studies the same David
7:05
who once dodged High School's academic
7:07
accolades transformed in college the
7:10
report cards now told a different story
7:12
they were adorned with Straight A's a
7:14
testament to his new found drive and
7:16
commitment David's commitment to his
7:18
studies was matched only by his resolve
7:20
to financially support his educational
7:22
Journey he meticulously sought and
7:25
secured employment at the esteemed Frick
7:27
Fine Arts Library a decision that
7:29
reflect Ed his practical approach to
7:30
funding his academic
7:32
Pursuits but the Allure of numbers
7:34
beckoned him once more and this time his
7:37
calculated risks in the stock market
7:39
paid off covering not just books but his
7:42
tuition and housing too a student in the
7:45
day a budding financier by night yet the
7:48
stock market as David soon realized was
7:51
a Fickle friend its highs had supported
7:54
his college life but its lows threatened
7:56
to disrupt it luckily when the market
7:59
turned bearish and trading could no
8:01
longer foot the bills David still had
8:03
his Library gig to fall back on despite
8:06
the dance of balancing his studies with
8:08
the highstakes world of trading and the
8:10
quiet sanctuary of Library work David
8:12
emerged as a shining star at the
8:14
University of Pittsburgh he crossed the
8:16
finish line of his undergrad journey in
8:18
1978 his name adorned with the Laurels
8:21
of honors but for David this was merely
8:24
the first chapter in his academic
8:26
Odyssey hungry not just for pancakes but
8:28
to First further his education David
8:30
applied and was later accepted to the
8:32
prestigious business school at Carnegie
8:34
melon
8:35
University at the outset David was
8:38
daunted by The Prestige of Carnegie
8:40
melon an institution known for its
8:42
Financial Acumen he questioned his own
8:44
intelligence having only attended the
8:46
Lesser acclaimed University of
8:48
Pittsburgh however this self-doubt was
8:50
soon
8:52
dispelled in his inaugural year at
8:54
Carnegie melon David started with a bang
8:57
earning Straight A's his academic
8:59
performance continued to soore with each
9:01
successive level of Education this was
9:04
not merely a consequence of his growing
9:06
seriousness but also a reflection of the
9:08
escalating cost of Education there was
9:11
no space for
9:12
frivolity in a few short years
9:15
graduating from Carnegie melon with an
9:17
MBA in hand David's transformation was
9:19
complete from a disinterested high
9:22
schooler to a business school graduate
9:24
he had not just traversed academic
9:25
terrains but mastered them each book he
9:28
shelved each stock he traded were mere
9:30
steps in an academic Ascent that
9:32
prefaced a grander ambition and ambition
9:34
led him to the industrial heartbeat of
9:36
Republic
9:38
Steel fresh out of Academia this was a
9:41
crucible where his financial Acumen
9:43
could be tested a forge for his future
9:45
in
9:46
finance here was a gateway to the real
9:48
world where theories met practice and
9:51
David was ready to step through but the
9:53
Stark reality of the business World
9:55
greeted David harshly within months the
9:57
glowing promise of republic steel dimmed
10:00
as the company battered by economic
10:01
winds slashed wages across the board
10:04
there amid the clatter of Industry David
10:07
encountered his first bitter taste of
10:09
corporate austerity it was a somber
10:11
lesson in the volatility of markets and
10:13
the fragility of Financial Security
10:16
David who had analyzed countless
10:17
companies from a distance now faced the
10:19
consequences of fiscal distress
10:21
firsthand this setback however was
10:24
merely a Prelude to David's resilience
10:26
and his capacity to thrive amidst
10:28
adversity
10:30
[Music]
10:31
a Moment of clarity emerged David
10:33
recognized that this environment while
10:35
Rich with real world lessons would not
10:37
be the soil in which his Ambitions would
10:39
flourish it was time for a pivot time to
10:42
steer towards a path that would lead to
10:44
financial sovereignty drawing on the
10:47
invaluable insights gained at Republic
10:48
Steel David made a strategic pivot to
10:51
Keystone mutual funds poised to apply
10:53
his sharpened grasp of market dynamics
10:55
as a financial analyst his tenure at
10:58
Keystone was marked by Relentless effort
11:00
akin to a workhorses toil even though
11:03
the compensation did not mirror the
11:05
intensity of his dedication nonetheless
11:08
his exceptional performance did not go
11:10
unnoticed it resonated within the
11:12
corridors of wall Street's
11:14
Elite barely a year into his role and at
11:16
the youthful age of 27 David's prowess
11:19
earned him a coveted position at the
11:21
venerable institution of Goldman Sachs
11:24
it was clear that David's zuman and
11:26
drive were rapidly catapulting him
11:27
toward the upper strut of of the finance
11:30
industry yet he was well aware that his
11:32
most significant achievements were still
11:34
on the
11:35
horizon in the financial mailstrom of
11:37
the '90s with the Savings and Loan
11:39
crisis Rippling through America's
11:41
economic Waters David teer brought to
11:43
Goldman Sachs a strategy that would soon
11:45
be whispered about with a mix of
11:47
reverence and awe it wasn't just that he
11:49
was making money he was redefining
11:52
profit within a system on the brink this
11:55
period marked by the Tremors of
11:56
financial institutions quaking on Shaky
11:58
Ground round was tepper's playing field
12:01
while the crisis devoured lesser firms
12:03
teer with a blend of foresight and nerve
12:06
chose to invest in the very eye of the
12:08
storm troubled entities like republic
12:11
bank and
12:12
mcorp to the Casual onlooker these
12:15
Investments appeared to be fraught with
12:16
risk but teer saw through the veil of
12:19
distress he perceived a lce of
12:21
undervalued assets and potential his
12:24
moves were not capricious they were
12:26
calculated they spoke of a man who OD
12:29
that sometimes the essence of strategy
12:31
is not in avoiding the storm but in
12:33
harnessing its energy David a financial
12:36
Savant forsaw the government's
12:38
intervention in the failing Banks a move
12:40
that would inevitably lead to their
12:42
restructuring under new ownership and
12:44
consequently a surge in their stock
12:46
value this astute prediction was a
12:48
winfall for Goldman Sachs netting The
12:50
Firm
12:52
billions in recognition of his Acumen
12:54
the company rewarded David with a bonus
12:56
check of
12:57
$600,000 elated he hurried home to share
13:00
the news with his wife marleene pausing
13:03
only to purchase celebratory sugar
13:04
Wafers from a
13:06
7-Eleven yet amidst their Joy neither
13:09
David nor marleene grasped the fact that
13:11
David's compensation was a mere pittance
13:14
compared to his true worth a realization
13:16
that would Dawn on them only much
13:19
later during his tenure at Goldman Sachs
13:22
David found a mentor in Bob Rubin the
13:24
presiding head of the company's
13:26
International risk Arbitrage desk their
13:29
conversations often centered around
13:30
equities and under Bob's guidance David
13:33
climbed the corporate ladder his Ascent
13:35
paralleling the firm's growing
13:37
Fortune however the Dynamics shifted
13:40
when Bob ascended to the position of
13:41
co-chair of the firm and John Corine
13:43
assumed control of the fixed income
13:45
Department David despite the change in
13:48
management continued to seek Bob's
13:50
counsel Corine though a competent leader
13:53
lacked the depth of understanding that
13:54
Bob possessed in the realm of corporates
13:56
his expertise lying more in the treasury
13:58
sector ctor this subtle tension between
14:00
the Old Guard and the new between a
14:02
mentor's wisdom and a successor's
14:04
ambition began to subtly yet irrevocably
14:07
alter David's professional journey in
14:10
the high stakes world of Wall Street
14:12
where loyalty is often a commodity and
14:14
integrity can be a liability David found
14:17
himself caught in a web of power plays
14:19
and ethical dilemas but David was not a
14:22
schema nor a manipulator he was simply a
14:25
man of diligence who sought answers and
14:27
efficiency in his work
14:29
David said I was stupid because I was
14:31
just working hard and wanted answers and
14:34
to be as efficient as possible I wasn't
14:36
trying to screw or not screw
14:38
anybody yet the complexities of his
14:41
workplace extended Beyond his
14:42
relationship with coine David found
14:45
himself regularly at odds with Fisher
14:47
black another player in the Goldman
14:48
Sachs Arena black was a man who
14:51
challenged David's strategies once
14:53
criticizing him for overvaluing a
14:54
Stock's debt and urging him to invest in
14:56
equity instead da David however was not
14:59
swayed by Black's advice he knew the
15:02
immediate consequences of such a move
15:04
could cost him his job David said Fisher
15:08
if I listen to you I'm going to be fired
15:10
you're probably right over the longer
15:11
term but in the next 3 months I don't
15:14
think you're right if I listen to you
15:16
I'm going to get
15:18
killed the tension in David's
15:21
professional life only escalated when he
15:23
found himself at odds with a powerful
15:25
partner who managed sack's restricted
15:27
lists this partner who had recently
15:30
launched a fund for bankrupt companies
15:32
wanted David to invest in a company he
15:33
had just removed from the restricted
15:35
list David a man who valued Integrity
15:38
over opportunism found this suggestion
15:41
ethically
15:42
dubious even though the legal department
15:44
had given the green light David stood
15:46
his ground he refused to buy the shares
15:49
much to the Chagrin of the higher ups at
15:51
Sachs his ethical stand cost him his
15:54
partnership a bitter pill to swallow
15:56
considering the significant profits he
15:58
generated for the firm it was at this
16:01
critical juncture that David's
16:02
professional Journey took a
16:10
turn the frustration of being overlooked
16:13
for partnership twice coupled with the
16:15
realization of his significant
16:17
contributions to the company made him
16:19
see that he was worth more than what
16:20
Goldman Sachs had to offer this
16:23
realization marked a pivotal moment in
16:25
David's career a moment that transcended
16:27
his financial ACC and spoke volumes
16:29
about his character in the year 1993
16:33
David teer a man who had built a
16:35
formidable reputation in the hallowed
16:37
Halls of Goldman Sachs decided to step
16:39
out of the shadow of the institution and
16:41
into the glare of the financial world he
16:44
was embarking on a journey that was
16:45
fraught with risk and uncertainty but
16:48
held the promise of immense reward with
16:50
Jack Walton his Confidant from Goldman's
16:53
junk bond desk tea founded his own hedge
16:55
fund Appaloosa management the jeo
16:58
unflinching in their pursuit of success
17:01
saw a staggering 57% return on assets
17:03
within half a year of Appaloosa
17:05
Inception yet the true magnitude of
17:08
their achievement didn't dawn on teer
17:09
until
17:10
1995 in that year teer along with
17:13
another partner Ronnie Goldstein decided
17:16
to spread their wings and take Appaloosa
17:18
to the global stage they booked a flight
17:21
to France intending to meet with a
17:23
French Bank just as they were settling
17:25
into their first class breakfast an
17:27
explosion reverberated from the back of
17:29
the plane one of the engines had failed
17:32
teer ever the humorist quipped to
17:34
Goldstein if we're going to die I'm
17:37
finishing my breakfast I'm not dying
17:38
without a full stomach but their Journey
17:41
was far from over a new Concord Jet was
17:44
waiting to whisk them away upon their
17:45
safe return to JFK their late arrival in
17:49
Paris had them convinced that they had
17:50
missed their golden opportunity but to
17:53
their astonishment the French Bank
17:54
salesman were still eager to meet even
17:57
at the stroke of midnight
17:59
it was at this juncture that tea
18:00
understood the gravity of Appaloosa
18:03
success however managing Appaloosa was
18:05
not without its
18:07
trials in 1998 Russia defaulted on its
18:11
debt a move that blindsided the
18:13
financial world teer found himself
18:15
staring at an $80 million loss A
18:18
crushing blow to the Empire he had
18:20
painstakingly built but teer was not one
18:22
to be easily defeated amidst the chaos
18:26
he spotted a silver lining Russian Bonds
18:28
were now severely
18:30
undervalued with the flexibility of his
18:32
low leverage and the ability to invest
18:34
without margin calls teer took a gamble
18:37
he reinvested in Russian bonds when they
18:39
were at their lowest e his odesus move
18:42
bore fruit teas saw a 61% gain on his
18:45
Investments not only recovering apoa's
18:48
losses but also turning a profit it was
18:51
a testament to his resilience and Acumen
18:53
A Narrative of a finer who defied the
18:55
odds and emerged Victorious though
18:58
David's Journey at the helm of Appaloosa
19:00
was marked by many a triumphant stride
19:02
the path was not devoid of missteps the
19:05
year 2000 bore witness to one such
19:07
stumble where David swayed by the
19:10
persuasive chorus of his fellow
19:11
investors wagered against the
19:13
NASDAQ this financial faux par was a
19:16
costly one though not
19:18
disastrous still David bore the burden
19:21
of this mistake marking it as his
19:23
career's most regrettable trade yet in
19:26
the face of adversity David's olve
19:28
remained unshaken he viewed his losses
19:31
not as defeats but as lessons his risks
19:34
rather than deterrents became the
19:36
Stepping Stones to
19:37
rewards in the wake of his NASDAQ
19:40
debacle the year 2001 saw David Rebound
19:43
with a remarkable 67% net return a feat
19:46
he achieved by investing in bonds that
19:48
others had hastily dismissed 2 years
19:51
later he demonstrated his knack for
19:53
turning the Market's lemons into
19:54
lemonade multiplying his profits by
19:56
acquiring the debt of companies that had
19:58
succumbed to
19:59
bankruptcy among these fallen giants
20:01
were Enron Worldcom and cono when 2009
20:06
rolled around and the world teet on the
20:08
brink of a financial Abyss David saw not
20:11
impending doom but opportunity his
20:14
gamble on the banking sector's recovery
20:16
proved to be a master stroke netting him
20:18
an astonishing $7 billion this feat
20:21
catapulted him to the top of the
20:22
financial World earning him the New York
20:25
Times Accolade as the year's highest
20:26
earning hedge fund manager
20:28
that same year David made a move that
20:30
would have swelled his sports-loving
20:31
grandfather's heart with pride he
20:34
acquired a 5% stake in the legendary
20:36
Pittsburgh Steelers a testament to his
20:38
personal passions beyond the realm of
20:41
Finance today David teer remains at the
20:44
helm of Appaloosa management his eyes
20:46
always scanning The Horizon for the next
20:48
big wave in the financial Seas his
20:51
sights are set on the burgeoning
20:52
frontiers of technology and artificial
20:55
intelligence sectors ripe with potential
20:58
yet he has plans to gradually reshape
21:00
Appaloosa into a family office a move
21:02
designed to keep the operation lean and
21:04
the returns robust the heart of the
21:07
Sportsman in David still beats strong he
21:09
made a daring play in 2018 acquiring the
21:12
Carolina Panthers from Jerry
21:14
Richardson not content with just one
21:16
team he expanded his Sports portfolio
21:18
launching the Major League Soccer
21:20
franchise Charlotte football club in the
21:22
heart of Charlotte but the true Mark of
21:24
the man is not the size of his wallet
21:27
but the breadth of his generosity David
21:29
regularly chars a private jet his
21:31
closest companions in tow to cheer on
21:34
the Pittsburgh Steelers at their home
21:35
games yet his philanthropy extends far
21:38
beyond the confines of his close friends
21:40
and the football field education and the
21:43
Jewish Community are causes that hold a
21:46
special place in David's heart his
21:48
generosity has found a home in the
21:50
University of Pittsburgh where he has
21:52
funded scholarships Outreach programs
21:54
and academic
21:56
centers a year after he joined the
21:58
billionaire club David also donated a
22:00
staggering $55 million to Carnegie
22:02
melon's business school in recognition
22:05
of his unwavering commitment to
22:07
education the school was renamed the
22:09
David a teer School of Business David is
22:12
also a champion for public education
22:14
reform in New Jersey a cause he supports
22:16
through his B4 NJ kids
22:18
nonprofit his compassion extends to
22:21
those grappling with food insecurity as
22:23
he has made significant contributions to
22:25
the food bank and the United Jewish
22:26
appeal at the heart of Tea's success and
22:30
his capacity to give back is his
22:32
audacious investment strategy his knack
22:35
for identifying distressed debt and
22:37
stocks with untapped potential is a
22:39
skill that has served him well in both
22:41
finance and
22:42
philanthropy now removed from the fervor
22:44
of Wall Street teer is a Bastion of
22:46
support and guidance not in the world of
22:48
High Finance but on the Su dappled
22:50
fields of his children's sports games as
22:53
he stands on those fields the memory of
22:55
a crumbling Russia and a world in panic
22:57
seems like like a distant Echo here teer
23:00
coaches with a paternal passion his
23:02
legacy no longer tied to the EB and flow
23:04
of stocks but to the rise and fall of a
23:06
soccer ball or the crack of a bat each
23:09
game is less about keeping score and
23:11
more about imparting the values that
23:13
helped him navigate the complexities of
23:15
life and the markets resilience strategy
23:19
and seizing moments that matter his
23:21
wealth significant though it may be
23:24
doesn't cast the longest Shadow instead
23:27
it is the lesson learned from a life
23:28
spent playing the long game that Define
23:31
him freed from the constraints of his
23:33
upbringing teer has Rewritten his
23:36
narrative no longer the reticent child
23:38
from Stanton Heights nor solely The
23:40
Mastermind behind Appaloosa management
23:43
he stands as the father he once needed
23:45
the father he has chosen to be a beacon
23:48
of unwavering strength and
23:56
love
23:58
[Music]
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