Almonds, Airplanes and S&P 500 – Ep. 291

Welcome to the Accumulating Wealth podcast. I’m Hunter Satterfield. And I’m Judson Crawford. We’re CPAs, wealth advisors, and partners at Cain Watters & Associates, a financial services firm here to help people navigate the decisions they face every day. Every day brings a fresh wave of headlines, some encouraging, some cringe-worthy, and some that are downright outrageous. 

You got it. This is another scattershooting episode. We’re going to talk about almonds, travel etiquette, and maybe the S&P 500. That’s right. And instead of relaying every piece of the news, we’ve got what’s most important to know. Or not important and just funny. All right, let’s go. 

 Okay, Hunter, welcome back. We are recording today, Tuesday, May 19th. What do you got? Oh, we’ve got a wonderful list. These are things that we save up, listeners. We’re actually going to do IPO talk here in an upcoming recording, given the IPOs that are coming. 

We talk about investment stuff. We’ve got an awesome one coming up with some legacy planning. I just listened to the lifestyle creep one this morning. It was very good. It was excellent. Yeah, and we save little things that we want to talk about, and so that’s what we get, scattershooting. 

And so yeah, we are going to run through maybe a deeper conversation on credit card fees and surcharging. That’s something our clients are always talking about, and we’ve got some good stuff on that. Also, some investment stuff as usual, but Judson, I feel like we have to start with almonds. Almonds. 

Okay. Why wouldn’t we? I don’t know where you’re going with this, but I feel like it’s high on my list of nuts. It is. We should do top five, bottom five nuts. First ghosts- Or not. First ghosts. Or not. 

So, I saw this stat that almonds, the water usage for almonds is more than data centers. Really? Yes, because all this data center stuff, right? Everybody’s like, “Oh, data centers, water, cooling, energy,” all this, that almonds actually cost more water. So, it sent me down a rabbit hole. 

But first I just want to talk about the data center count, Judson. Currently there are 4,000 data centers in America. Okay. Okay. 4,000. That’s right. There are th- I would’ve guessed more. Yeah, I guess so too. Maybe because we feel like that in Texas because they’re everywhere in Texas. There are 3,000 under construction, so we’re about to almost double. Okay. So that sends us, again, down this, “oh no, what’s going to happen to all the water?” 

How many almonds would it take to water the data centers? So current water consumption for data centers… Is it data or data? It’s data because of The Goonies. Data. Correct. Okay. On this podcast, folks, it is data. Data centers. Yeah, because he was the man on The Goonies. 

Current estimates are that data center water consumption is 200 billion gallons a year. Seems like a lot. It is. It’s a lot. Almonds use 2 trillion gallons. Yeah, but I feel like it’s better used because it’s natural. It’s like plants, they giveth and receiveth. But the almond, 2 trillion? I mean, I don’t know. But you could basically just, the things that I know that you’re on ChatGPT with, which you have to understand that history is saved, Judson. 

Uh, yeah, I know. People can go back and look at that. It’s true. In fact, maybe on one of these episodes we should just read each other’s prompts in there. Okay. I decline. So, I like almonds. I do too. So, I don’t feel like this is something that can be replaced. I don’t think it’s going to be.  

But there are things… last night I’m watching baseball and I’m like, “There are things that I could replace.” So, I went and I asked, Grok. I have decided to eliminate eggplants, artichokes- Wait, artichokes are delicious … no, no. This is my game, not yours. Olives, tofu, and grapefruit, and I have just found enough water for the data centers. 

Really? Yeah. So, when I was in Hong Kong, I had stinky tofu. It was possibly the worst bite of food I’ve ever had in my life. Is that like eggplant tofu? It… no. Eggplants I’m with you on. All right. You heard it here first. If Judson and I can get rid of eggplants, artichokes, olives, although no olive oil, which would be tough, tofu, and grapefruit, we can have data centers. 

Yeah, I’m really only with you on the eggplant. I mean, it’s not that I love grapefruit, but I feel like it has its place. To flavor water? In fruit. In the fruit… In the fruit genre.  

All right. Moving on, congratulations to Nvidia, Judson, who is now the third-largest country in the world as far as GDP goes. 

What’s their population? I don’t know. Really? 80,000? 60,000 employees? I don’t know. Yeah, I don’t either. $5.5 trillion is what they hit. They’re down the last few days, no big deal. US $32 trillion, China $21 trillion, but Germany has been surpassed. They were $5.4 trillion, and now Nvidia is bigger than them. 

And we probably, in all honesty, with this technology surge that’s coming, we got some that are going to continue to pass Germany, Japan, UK, et cetera, et cetera. Did you find the answer? 42,000. 42,000 employees? That’s a lot of market cap per employee. Their per capita GDP is strong to quite strong indeed. 

And that got me going down another rabbit hole. This is what happens. I start and then I go. And so, I went and found a couple of interesting stats that I want to talk to you about. So first off, we are now at an all-time high of the top 10 companies in the S&P and how much of the profit of the S&P is theirs. 

Okay? So, in 1996, you take the top 10, and only 17% of the profit for the S&P 500 was those. What was the… Are you going to tell me the market cap at that time? So, 17% was the income- the net? They shared- yeah, 17% of the profits. Okay. It is now 34%, so it’s 2X in the last 30 years So over a third of the total profits of the S&P 500 is those 10 companies, which is crazy. It’s wild. 

And again, that sort of goes to this broader like software theme, intangible asset theme because those 10, I mean, we can pretty much name them. We do oftentimes on here. And I mean, again, I don’t know that’s telling us anything other what we already know. 

The big get bigger. They’re highly, highly profitable. And even with this recent setback on their stock price, many of them, their PE ratio’s not that terrible. Yep. But it does show, even more so, not even just like we talk about the market capitalization so heavy toward those 10, but also the profits as well. It does show that index is not very diversified. 

It’s interesting because, in this scenario, unlike maybe times in the past when it’s been, banking or it’s been, oil and gas, how does this get supplanted? Yeah, I don’t know. I mean, it’s going to be… because the reality is that AI is going to, while it will, again, go across everything it’s going to go to those companies as well. 100%. You know? 

I think there will be new entrants in, right? Like, you might find these new companies that sort of wiggle their way in, certainly like SpaceX or Anthropic could as well. But I mean, it does create some broad concern when it’s like, man, those 10 are just, they’re ruling the roost on the S&P because there was another good stat. 

I’ve got some decent concerns about where inflation is going right now. And remember, listeners, where inflation goes, interest rates have to go as well. And so, I think that’s a big story for this year, like we’ve talked about. But I have some decent concerns, Judson, because I went and did a little bit of research on this. 

The average year over year return of the S&P 500 when inflation is sub 3%, is 10%, and that’s in the history of the S&P 500. Okay. So really, really good average returns. When it’s over 3%, it’s only 5.5% average rates of return. It’s a large difference. Yeah, I mean, just because it eats away, right, at their profit margins, inflation does. 

And I think when we see what’s happening right now with the 10-year yield and 30-year as well, inflation is a big, big, big problem. Yes, it is. And we are not done with what’s going on in the Middle East. So, it will be interesting with that much concentration existing in the S&P what are the implications if inflation stays high? 

All right we’re going to do an about-face. Okay. Judson, I have decided it is travel season, and so we need to bring our listeners the truth, which is flight etiquette. Well, before we go to flight etiquette, I’d like to say that as a recent purchaser of flights inflation is real. Insane. Good Lord. Insane. Wild. I mean, just a simple flight to Austin or Houston is, like, $500. Yep. It’s wild. Everything’s basically doubled. Yeah. 

And I think, I mean, again you look at that, and I actually saw a stat the other day, prices are surging, but demand is still there. People are still traveling this summer. Now, you might see some that are like, “Hey, I’m actually going to just drive across country instead of fly.” But we have gotten so used to, “Hey, I’m going to Europe this summer,” that there’s almost like, “Hey, I’m still going to pay it.” Find a way. Yeah, I’m going to find a way. I’m going to pay it. I’m going to use miles or whatever else it is. 

So it will be interesting to see as we maybe see some contraction in costs for the airlines. Do they still… It’s like during COVID when we were talking about, hey, all this inflation that’s happening right now, it’s sticky. Prices don’t just go back down to their original value. Nope. 

Like, if a product goes from $5 to $10, it doesn’t go back to $5 when inflation’s done, it goes back to $7, and that’s the new norm. I have some concerns on travel. 

Well, and if you didn’t listen to the market update, which you should Brad said it specifically. If the conflict in the Middle East ended today, that doesn’t mean gas prices just go back to what they were. Exactly. It does not happen that way. Exactly. 

So, speaking of flights, we’re going to do some flight etiquette, listeners. Okay. We’re going to judge Judson’s. You have to be truthful on these. Oh. All right? I’m going to read them really quick, but let’s rip through them. Okay. 

Should you ever take your shoes off on a plane?  

1. Never. 
2. Why not? 
3. If I’m wearing socks, I might.  

The correct answer is B. Why not? Oh, dear. Oh, dear. Only 5% of Wall Street Journal listeners agree with you, Judson. The correct answer is never. It’s because those of us that take our shoes off don’t read the Wall Street Journal, so there.  

Would you ever give up your aisle seat for a middle seat so a family can sit together? Yes. So, your choices are: 

1. If it’s a long flight and they ask nicely, or  
2. Absolutely, I’ll survive the discomfort.  

It depends if I’m alone and not with my family, number one, and I also think that if we’re talking about an extremely long flight, then that changes things. All right, so this one. Yeah. All right. Well, the answer is no way, but whatever. You and I are very different. Only 35% of journal readers agree with you, Judson. That’s way better than the first one. 

In a row of three, this one threw me off. In a row of three, who gets the middle seat’s armrests? Ooh. 

1. Depends on who’s sitting where 
2. First come, first served
3. The middle sitter every time

I think the middle sitter has the rights to it because they don’t have another option. And the outside seaters do have… But it’s verification that window seats suck because their arm- They do suck … they do suck. And I’m hitting my head on- I had this conversation with Ivy the other day. 

She’s like, “Daddy, you never sit by the window.” Yeah. And I was like, “Yeah, there’s a reason for that.” Right. Middle sitter it is. Hey, two-thirds of people agree with you on that one. All right. 

Do you chat… Oh, boy. We’re going to be polarizing on this one. Do you chat with your seat neighbor? I’d rather die is my answer. 

You’re going to be surprised at this, but I’ve changed. I’m going to go with C. I try not to. No one else wants to hear it. Yeah, I used to talk more, but I’ve become affected by you. 

Is it okay to watch an R-rated movie on a flight? Yes. Now, it depends. You have to be conscious, but yes, of course. “I’d check my surroundings first” is your answer then? Exactly. All right. I’d check my- Hey, 58%. Very good. Doing good.  

Do you bring your own meal onto the plane? No, I can’t- it invades … it smells everything up. Yeah, well most people would agree with you, as would I. I guess when you’re sitting in first class like you, you don’t need to. 

 What do you do with your window shade, Judson? Don’t sit in the window seat. 

1. Keep them up, I paid to see the clouds
2. Put it down in case someone wants to sleep
3. Depends on what my seatmates need. 

All right. If I was in the window seat, it’s C. It’s C. 

When do you stand up after the plane lands? 

1. As soon as I hear the ding
2. When it’s my row’s turn 
3. I’ll go out of order if people are being slow.  

When it’s my row’s turn. All right. It’s overwhelming on that one too. 

You, Judson, final answer, are a selfless passenger. So basically other than the shoe thing. 44% of journal readers got the same result as you. You’re a flight attendant’s dream. Now let’s be honest here. I specifically wear slip-on shoes, well most of my life, but specifically on a plane so that they can slip on and off easily. My shoes are coming off on most planes. My feet don’t stink because I have decent health, hygiene. 

But I would never look at somebody who has their shoes off and be like, “You disgusting pig.” Now here’s the sidebar. If you’ve ever seen somebody go to the bathroom without their shoes on, that’s a sick individual. Yeah, that’s an absolute hard no. Yeah. And I’ve seen it. That’s disgusting. I’ve seen it. That’s disgusting. What is wrong with you people? If you’re listening and you do that, I don’t know, email Mason@cainwatters.com. Exactly.  

All right, folks, last but not least, we’re going to do a little credit card surcharge talk. This is a big, I think a continual issue that clients bring up. Yep. 

So the question, listeners, is, “hey, with costs rising, I can’t necessarily do fee increases like I would want to. Do I add a surcharge for patients that are paying with credit card?”  

Which we’re going to talk about our thoughts on this, but I do want to just bring a little bit of… There was an article written back in October of last year by Merchant Advocate, who’s a big player in the space for credit cards and they talked about it. And so, I do want to bring up a couple issues, and I think these are really good. 

First off, there are some legal things you have to clear here. First, as of 2025, surcharging is actually illegal in certain states, including Connecticut, Maine, Massachusetts, and California. 

So there are some that allow it with caps or other restrictions. So like Colorado, for instance, limits it to 2%. Now who knows in 2026, I didn’t go a deep dive on necessarily who is allowing this by state by state, but I do think it’s something that you need to ensure that your state rules are being followed. So that’s number one.  

Number two, there are actually card brand rules as well. So Visa allows one thing, MasterCard allows another. And those, if you disobey those or if you’re turned in by one of your customers on those, then you can actually… They can basically deny folks using their credit card with you, which would be a negative. It would be a big negative. I think that’s another one, right? You’ve have to make sure that you understand the rules of each card that’s out there. 

Third and final, most insurance providers do not allow, and that’s something that I have talked about with clients, they do not allow surcharges. And that’s also the case with folks that say, “Hey, well, I’m going to just discount… or I’m going to essentially add it to my fees and then discount if they’re not using it.” It’s the exact same thing. 

So, I think those three, Judson, before we talk about, like, our thoughts on it right now in the current climate, number one, listeners, make sure you’re following your state rules. Number two, the card companies rule themselves. And then number three, the insurance rules as well. 

And I feel strongly, and sorry for my clients out there if this is you, I feel strongly- I didn’t know this before I read this article- I feel strongly that my clients that have done this are probably unaware of those things. Agreed. I do not think that they have checked with their state or the credit card companies. I totally agree. 

I mean, and again, it’s probably one of those where it’s like, “Oh, I mean, who’s really going to come after me?” But the reality is if you get a patient- One pissed off patient. Yeah. Yeah, that’s all it’s going to take. A pissed off patient that knows the rules. And you could get fined or hand slapped.  

Last thing before we talk about maybe some of the softer pieces of this is if you are operating offices in multiple states, you do have to abide by the state rules for each office depending upon where it’s located. 

Okay. Judson, with that, what do you think about this? It’s a hard one for me because I think that while people have become more used to it than they were a few years ago, I still think that it’s a hot button item for some people. And I feel like it’s something where… to our clients that are thinking about this, it makes sense. 

It’s like I’m passing this on to you, right? It feels like, this fee is agnostic to your practice. I don’t think that’s the way consumers feel, and I think that it can be an easy way to annoy some patients, honestly. I think that we are in a society where it’s not like it was 10 years ago where people are walking around with multiple options of ways to pay. 

People are used to paying with credit card, and they want to pay with credit card, whether that be for points, convenience, safety, honestly. And so if you’re putting any barrier up to that, I think it could be seen as a negative. That’s not to say that I haven’t had clients that have told me they’ve had some success with it. 

Most of my clients that felt like they’ve had success with it are orthodontists who are getting patients to sign up on ACH debit as opposed to credit card when they’re talking about their ongoing things. 

I think that may be a little bit easier when you’re talking about an ongoing contract that’s running for a long time rather than “I’m going to the front desk to pay for this procedure that I just had done and be done with this office for a while, and that’s when I find out that this is my option.” 

Yeah. I agree on everything you said. When I’ve been talking to clients about it, I’ve given them the sort of pros and cons, not just these things that I just mentioned from this article, but I’ve given them the pros and cons of, “hey, this will change potentially how your patients view you,” right? 

Like, do you become the convenience store on the corner? And there’s nothing wrong with a convenience store, it’s just a different type of business than a medical practice. So, I mean, that’s an important thing to understand. 

What are the implications on your staff? Because they’re going to be the ones that are actually addressing it with patients, not you. How are your staff going to feel, like, having that conversation? How are your staff going to feel about you wanting to implement it or whatever else it is? 

So, I think that’s a big one as well. And also, what are your other competitors or referrals doing in the area? So, I’ve had a few situations where my clients have gone back, they’ve looked around their community, they’ve talked to their team, they’ve implemented, it’s gone fine, and it’s an immediate boost.  

I’ve had situations where that exact same thing happens, they implement it, and they get enough patient pushback that they pull it off. Yep. And then the third one I’ve had is I’ve had them go back and treatment coordinators, the folks that are actually presenting treatment, the lead up front at the front desk basically say, “Doctor, please don’t do this.” 

And I think on those, really looking at your team and saying, “Okay, if this is…” because again, they’re going to be the ones that are in front of the patients themselves. I think that’s how you can more or less address whether or not you do it. 

Well, and I think when you look at it, you have to assess- for each individual practice, you have to assess how much you are getting by credit card and what that potential inflow would be if you charge that on everybody. 

And I think it’s a frustrating thing for our clients to see how big these credit card fees have grown to over the years as everybody’s using credit cards. But I think that you have to weigh exactly what you just said with “are there other areas we can do that?” Whether that is a fee increase, that’s just a general fee increase, maybe you haven’t done that in a while, or are there other areas where you can save? 

Or frankly, even though it won’t go away, have you done a good analysis on your own credit card fees to see if you are efficient? Because as we’ve talked about in the past, credit card fees change ongoing, and it’s something you need to be analyzing once every… at least 18 to 24 months. Agreed. 

Well, all good stuff, listeners. We found out that Judson is a selfless traveler. Yep. We have found out that I despise eggplants, artichokes, olives, tofu, and grapefruit. And with that, we’ll be back in front of you next week. 

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