WEBVTT 1 00:00:00.000 --> 00:00:04.240 42 recession-proof money secrets and if you don't know who I am and it's oxymosy 2 00:00:04.240 --> 00:00:08.000 I sold two of my companies last year for 46.2 million and my current portfolio at Acquisition.com 3 00:00:08.000 --> 00:00:13.200 There's over 200 million dollars a year and I want to take 10 years of money secrets that worked in both boom and 4 00:00:13.680 --> 00:00:14.560 bust 5 00:00:14.560 --> 00:00:21.080 Economies so that you can save the decade and apply them today. Number one. He who gives the money has the power 6 00:00:21.080 --> 00:00:23.880 So a lot of times poor people they're always trying to get money 7 00:00:23.880 --> 00:00:26.920 I was trying to get money the person who gives the money is the one who's in control 8 00:00:27.000 --> 00:00:30.680 Like if you think about the biggest institutions in the world. Where are they banks? What do they do all day? 9 00:00:30.680 --> 00:00:35.880 They give money when you give someone money you get to dictate the terms you actually now own them 10 00:00:36.120 --> 00:00:40.680 Number two never trade reputation for money because you can get money back 11 00:00:40.840 --> 00:00:44.920 But you can't get reputation back if you think about reputation is something that compounds over time 12 00:00:44.920 --> 00:00:48.200 The longer you have it the more you build it the more compounds unto itself 13 00:00:48.280 --> 00:00:52.360 It is your brand which allows you to do more deals do bigger deals do them faster 14 00:00:52.440 --> 00:00:55.640 The moment you lose the rep because you traded it for money in the short 15 00:00:55.720 --> 00:01:02.840 You cut the compounding and that's where all of the gains in life come from number three money loves speed wealth loves time poverty 16 00:01:03.240 --> 00:01:04.440 Loves in decision 17 00:01:04.440 --> 00:01:09.080 Micro money loves speed you want to move quickly on faster customers follow up with your leads etc 18 00:01:09.080 --> 00:01:11.560 But when you think about building wealth it's not about transacting 19 00:01:11.560 --> 00:01:17.320 It's about letting that compounding happen and that takes time and it takes not interrupting it most people never achieve 20 00:01:17.320 --> 00:01:22.920 Either of those things because they sit in decision for we can always make more money than we need 21 00:01:23.000 --> 00:01:25.800 This is a belief that has served my wife and I really really well 22 00:01:25.800 --> 00:01:29.480 We look back on our lives and we've never not been able to eat not head shelter 23 00:01:29.640 --> 00:01:35.080 And we've continued to increase our skill set a lot of times we have this desire or you know our animal brain wants to make us 24 00:01:35.160 --> 00:01:37.160 Make decisions out of scarcity out of fear 25 00:01:37.160 --> 00:01:41.320 We don't need any of the money that's coming because we have always had enough 26 00:01:42.520 --> 00:01:47.960 Fortunes are made by taking a lot of risk with a little bit of money and fortunes are maintained 27 00:01:48.360 --> 00:01:50.920 By taking a little bit of risk with a lot of money 28 00:01:51.000 --> 00:01:55.160 Somebody who's self-made had nothing and so they risked everything in order to make it big 29 00:01:55.240 --> 00:01:59.080 But things is when you have nothing you're not risking a lot you have nothing to lose which makes you dangerous 30 00:01:59.080 --> 00:02:01.160 Which is one of the biggest advantages of having nothing 31 00:02:01.160 --> 00:02:05.640 But if you continue to do that when you do have something to lose you can lose your fortune 32 00:02:05.640 --> 00:02:09.560 And so you have to change the behavior once you have the castle once you have the empire 33 00:02:10.040 --> 00:02:15.400 Six money flows where attention goes if you spend time thinking about fashion all day your attention's going towards buying clothes 34 00:02:15.400 --> 00:02:18.680 If you think about carsel day is going towards your car if you think about your business all day 35 00:02:18.760 --> 00:02:22.840 It should be going towards your business pick one thing go all in because you only have so much judo 36 00:02:22.840 --> 00:02:26.440 You think about it like a magnifying glass and you're the sun in this instant 37 00:02:26.440 --> 00:02:29.400 And you've got to burn a hole to get through to the next level 38 00:02:29.400 --> 00:02:32.120 If you're a spread across two thin of an area 39 00:02:32.120 --> 00:02:36.280 You never get enough concentrated heat most people have the potential 40 00:02:36.280 --> 00:02:38.680 But they don't have the focus which is why they can never break through 41 00:02:38.840 --> 00:02:43.400 Seven your home life and your business life have to be aligned money-wise 42 00:02:43.400 --> 00:02:46.680 So you can't try to grow a business and like reinvest everything here 43 00:02:46.680 --> 00:02:50.520 While you're living a super lavish lifestyle trying to flex like it has to be aligned 44 00:02:50.520 --> 00:02:54.360 All of our business rules around money are also our home rules around money 45 00:02:54.360 --> 00:02:57.320 And so if we don't live with any debt within our personal lives 46 00:02:57.320 --> 00:03:01.720 We do the same thing within our business lives eight ignore money advice from poor people 47 00:03:01.720 --> 00:03:04.120 This may sound ridiculous, but let me say it differently 48 00:03:04.120 --> 00:03:08.680 Ignore money advice from your dad or mom who are poorer than you want to be 49 00:03:08.680 --> 00:03:11.960 It's from your good friends who are poorer than you want to be 50 00:03:11.960 --> 00:03:15.160 From people who have smaller dreams for your life than you do 51 00:03:15.240 --> 00:03:18.040 The reason that rich people can lose everything and then recreate it 52 00:03:18.040 --> 00:03:20.280 Is because they see reality more accurately 53 00:03:20.280 --> 00:03:24.760 The reason people can't make money is because they don't see reality the way it actually is 54 00:03:24.760 --> 00:03:28.600 Most of life is trying to pull these rocks out of our vision so that we can see more clearly 55 00:03:28.600 --> 00:03:30.840 Nine it's always easier to buy than to sell 56 00:03:30.840 --> 00:03:33.640 You want to get into a stock you want to get into something you can buy it instantly 57 00:03:33.640 --> 00:03:35.960 You want to get into a real estate deal you want to get into a business 58 00:03:35.960 --> 00:03:39.560 You have to be extra careful you want to put all the slow on the buy 59 00:03:39.560 --> 00:03:41.800 And you want to put all the lubricant on the sell 60 00:03:41.800 --> 00:03:43.480 Ten money is fickle 61 00:03:43.480 --> 00:03:47.320 Money is jealous it sticks and goes to the person who pays it the most attention 62 00:03:47.320 --> 00:03:50.600 Money comes into the system but there are these grooves in the ground 63 00:03:50.600 --> 00:03:54.760 Where it all eventually flows up to the few people who pay it the most attention 64 00:03:54.760 --> 00:03:56.840 Someone gets paid they go buy their groceries 65 00:03:56.840 --> 00:03:58.680 The grocery person has to go buy for the supplier 66 00:03:58.680 --> 00:03:59.800 Supplier buys it from whatever 67 00:03:59.800 --> 00:04:03.400 But the person who has the access is the one who pays it the most attention 68 00:04:03.400 --> 00:04:05.000 Is the one who it sticks to at the end 69 00:04:05.000 --> 00:04:09.640 Eleven we stay poor until we've learned all the lessons that poverty has to teach 70 00:04:09.720 --> 00:04:11.240 People stay in poverty 71 00:04:11.240 --> 00:04:16.200 But they're not trying to pay attention to like what lesson do I need to be learning that I'm not actually taking action 72 00:04:16.200 --> 00:04:18.840 Learning how to save money at a basic level personal finance 73 00:04:18.840 --> 00:04:20.040 Let's be guys it's grain here 74 00:04:20.040 --> 00:04:23.000 These are the lessons that we have to learn in poverty to get out of poverty 75 00:04:23.000 --> 00:04:25.000 And until you do that you don't beat the level 76 00:04:25.000 --> 00:04:25.640 12 77 00:04:25.640 --> 00:04:27.320 Frigality drives innovation 78 00:04:27.320 --> 00:04:28.520 Even when you have money 79 00:04:28.520 --> 00:04:30.520 One of the best things to do in my opinion is 80 00:04:30.520 --> 00:04:33.000 Constrain your resources, constrain time 81 00:04:33.000 --> 00:04:36.600 It'll force you to think creatively to solve problems 82 00:04:36.600 --> 00:04:38.440 Without using money as the solution 83 00:04:38.520 --> 00:04:41.400 And if you have constraints right now on time and or money 84 00:04:41.400 --> 00:04:45.240 Don't see it as a disadvantage because it's what people who do have money try to get into 85 00:04:45.240 --> 00:04:46.040 To solve problems 86 00:04:46.040 --> 00:04:48.200 And the only thing this is the disadvantage is thinking it is 87 00:04:48.200 --> 00:04:48.600 13 88 00:04:48.600 --> 00:04:49.880 Think once before investing 89 00:04:49.880 --> 00:04:51.080 Think twice before spending 90 00:04:51.080 --> 00:04:54.360 Investing is something that you're putting money into that is going to give you a return of some kind 91 00:04:54.360 --> 00:04:57.000 It's either going to give you a skill that's going to increase your earning capacity 92 00:04:57.000 --> 00:04:59.000 Or it's going to be something that's going to quite literally give you a return 93 00:04:59.000 --> 00:05:00.920 In terms it's going to be yield or worth more in the future 94 00:05:00.920 --> 00:05:04.440 Spending is something that's going to never be worth more in the future and it's going to be consumed 95 00:05:04.440 --> 00:05:05.000 14 96 00:05:05.000 --> 00:05:07.080 Money flows to the person who needs it the least 97 00:05:07.160 --> 00:05:08.680 The risk get richer because they don't need it 98 00:05:08.680 --> 00:05:10.440 And because they don't need it they have leverage 99 00:05:10.440 --> 00:05:13.720 You have to sell not from your own wallet but from the person in front of you 100 00:05:13.720 --> 00:05:15.640 Come to the table with other options 101 00:05:15.640 --> 00:05:17.080 It's the person who needs nothing 102 00:05:17.080 --> 00:05:18.600 Who's the person who has the most power 103 00:05:18.600 --> 00:05:19.800 And that's where the money will go 104 00:05:19.800 --> 00:05:20.520 15 105 00:05:20.520 --> 00:05:21.480 We make money 106 00:05:21.480 --> 00:05:22.600 Our money does not make us 107 00:05:22.600 --> 00:05:24.680 You start tying your self-worth to your network 108 00:05:24.680 --> 00:05:28.040 Then your network itself becomes a liability to your own self-esteem 109 00:05:28.040 --> 00:05:31.480 It is my ability to make money which is what creates my value 110 00:05:31.480 --> 00:05:33.000 Not the money itself 111 00:05:33.000 --> 00:05:34.200 Because the money itself can be taken 112 00:05:34.200 --> 00:05:36.040 My family was in the Iranian Revolution 113 00:05:36.120 --> 00:05:37.480 And everything they had was taken 114 00:05:37.480 --> 00:05:38.760 All it takes is one government saying 115 00:05:38.760 --> 00:05:39.800 Oh all that land 116 00:05:39.800 --> 00:05:40.680 All those cars 117 00:05:40.680 --> 00:05:41.400 All those homes 118 00:05:41.400 --> 00:05:42.840 Those are ours now 119 00:05:42.840 --> 00:05:43.400 And that's it 120 00:05:43.400 --> 00:05:45.480 And so a lot of people have this idea of legacy and permanence 121 00:05:45.480 --> 00:05:46.840 That's just an illusion 122 00:05:46.840 --> 00:05:48.920 Which is why we make our money or money doesn't make us 123 00:05:48.920 --> 00:05:49.640 16 124 00:05:49.640 --> 00:05:51.400 It may be an amazing opportunity 125 00:05:51.400 --> 00:05:53.640 But not our amazing opportunity 126 00:05:53.640 --> 00:05:56.360 One of the things that I needed early on was permission to not do things 127 00:05:56.360 --> 00:05:57.960 Because in the beginning you don't know how to do anything 128 00:05:57.960 --> 00:05:59.960 Your analysis paralysis and you just get scared 129 00:05:59.960 --> 00:06:01.320 And once you get over that 130 00:06:01.320 --> 00:06:03.640 The problem is that your yes muscle becomes too flexed 131 00:06:03.640 --> 00:06:05.000 And you start saying yes to everything 132 00:06:05.000 --> 00:06:06.600 We should do this thing and we should do this thing together 133 00:06:06.600 --> 00:06:08.120 You say dude I think it's amazing opportunity 134 00:06:08.120 --> 00:06:09.720 I just don't think it's my amazing opportunity 135 00:06:09.720 --> 00:06:11.400 And it's gotten me out of so many situations 136 00:06:11.400 --> 00:06:13.240 That I know long-term wouldn't have been good for me 137 00:06:13.240 --> 00:06:13.880 17 138 00:06:13.880 --> 00:06:16.040 We control the money flow wherever possible 139 00:06:16.040 --> 00:06:17.640 People who have a lot of control 140 00:06:17.640 --> 00:06:18.600 Payment processors 141 00:06:18.600 --> 00:06:21.560 Everybody thinks they're amazing until the day you can't process money 142 00:06:21.560 --> 00:06:24.280 And so the idea is the further upstream you can go 143 00:06:24.280 --> 00:06:26.520 The more leverage and control you have over the money 144 00:06:26.520 --> 00:06:28.840 Banks get the money and then they give it back later 145 00:06:28.840 --> 00:06:30.680 The person who's further substreamed the money 146 00:06:30.680 --> 00:06:32.040 Has the most power over it 147 00:06:32.040 --> 00:06:33.720 18 always have a new shit fund 148 00:06:33.800 --> 00:06:37.000 Me knowing that I can take whatever risk I want 149 00:06:37.000 --> 00:06:38.840 And I am still protected 150 00:06:38.840 --> 00:06:41.080 And everything that I have for the rest of my life is taken care of 151 00:06:41.080 --> 00:06:42.280 Gives me a lot of peace 152 00:06:42.280 --> 00:06:43.720 Which allows me to be more aggressive 153 00:06:43.720 --> 00:06:44.680 Be more offensive 154 00:06:44.680 --> 00:06:46.760 As soon as you can have your ocean fund 155 00:06:46.760 --> 00:06:48.440 Whether it's three months, whether it's six months 156 00:06:48.440 --> 00:06:50.200 Start putting that away that nut 157 00:06:50.200 --> 00:06:52.520 So that you can go more on the offensive 158 00:06:52.520 --> 00:06:53.240 19 159 00:06:53.240 --> 00:06:56.360 The biggest eroder of wealth is ignorance 160 00:06:56.360 --> 00:06:58.200 Not knowing how to make a million dollars 161 00:06:58.200 --> 00:07:00.040 Is costing you whatever you make every year 162 00:07:00.040 --> 00:07:01.160 Minus a million dollars 163 00:07:01.160 --> 00:07:02.680 And so if you make 50 grand a year 164 00:07:02.680 --> 00:07:06.040 It costs you $950,000 a year to not know how to make a million dollars 165 00:07:06.040 --> 00:07:09.320 Which is why I put so much money into paying down this invisible hand 166 00:07:09.320 --> 00:07:11.240 That's been suppressing my income my whole life 167 00:07:11.240 --> 00:07:12.200 And yours too 168 00:07:12.200 --> 00:07:12.760 20 169 00:07:12.760 --> 00:07:15.080 You get paid for the value you create 170 00:07:15.080 --> 00:07:16.680 Times your ability to negotiate 171 00:07:16.680 --> 00:07:18.760 Divided by how hard you are to replace 172 00:07:18.760 --> 00:07:20.840 If you provide something that's very valuable 173 00:07:20.840 --> 00:07:21.880 And you're very good at negotiating 174 00:07:21.880 --> 00:07:24.360 But somebody else can provide the exact same thing as you 175 00:07:24.360 --> 00:07:25.480 For a tenth of the price 176 00:07:25.480 --> 00:07:27.560 You still don't have that good of a negotiating position 177 00:07:27.560 --> 00:07:29.720 Making money is capturing a percentage of the value 178 00:07:29.720 --> 00:07:30.600 They create for other people 179 00:07:30.680 --> 00:07:32.840 21. Mistakes love a rush decision 180 00:07:32.840 --> 00:07:35.640 I've trained myself now enough that like when I feel pho-mo 181 00:07:35.640 --> 00:07:36.920 I pause 182 00:07:36.920 --> 00:07:39.000 Phomo means slow go 183 00:07:39.000 --> 00:07:40.680 Mistakes love a rush decision 184 00:07:40.680 --> 00:07:43.880 And so it's just one of those easy beliefs that has slowed me down 185 00:07:43.880 --> 00:07:46.200 And has saved me so much money 186 00:07:46.200 --> 00:07:49.640 22. Leverage comes from not needing the other person 187 00:07:49.640 --> 00:07:51.960 And more specifically, leverage comes from needing nothing 188 00:07:51.960 --> 00:07:53.640 You can't control somebody who needs nothing 189 00:07:55.400 --> 00:07:55.880 Right? 190 00:07:55.880 --> 00:07:58.040 If someone needs nothing, you have no influence over them 191 00:07:58.040 --> 00:07:59.160 How do I become that person? 192 00:07:59.160 --> 00:08:01.640 The monks do it by relinquishing everything and needing nothing 193 00:08:01.640 --> 00:08:04.440 And the rich man does it by satisfying all his needs 194 00:08:04.440 --> 00:08:06.600 And not needing the other the deal on the other side of the table 195 00:08:06.600 --> 00:08:08.680 In both of the situations you create leverage 196 00:08:08.680 --> 00:08:12.120 23. Markets take longer to adjust than you expect 197 00:08:12.120 --> 00:08:14.280 And then they move faster than you can imagine 198 00:08:14.280 --> 00:08:15.720 The big short if you saw that movie 199 00:08:15.720 --> 00:08:17.720 The guy was shorting for like four years 200 00:08:17.720 --> 00:08:19.400 And he's like the math doesn't make sense 201 00:08:19.400 --> 00:08:21.880 The bubble kept going, bubble kept going, bubble kept going 202 00:08:21.880 --> 00:08:25.080 And then it happened faster than people imagined 203 00:08:25.080 --> 00:08:27.880 We have to be comfortable with the fact that we might have to sit in 204 00:08:27.880 --> 00:08:29.800 Discomfort for an extended period of time 205 00:08:29.800 --> 00:08:32.520 Before what we believe to be reality is reflected 206 00:08:32.520 --> 00:08:34.840 24. Money is a game treated as such 207 00:08:34.840 --> 00:08:37.160 You can't win the game if you don't know you're playing one 208 00:08:37.160 --> 00:08:40.120 The wealthiest people in the world see money as a game 209 00:08:40.120 --> 00:08:43.480 They don't even use money to satisfy material needs because they already have it 210 00:08:43.480 --> 00:08:46.920 How can I adopt that perspective earlier on in my career 211 00:08:46.920 --> 00:08:49.160 Thinking about things in terms of personal bests 212 00:08:49.160 --> 00:08:50.280 Bank account PRs 213 00:08:50.280 --> 00:08:51.880 What gets measured gets improved 214 00:08:51.880 --> 00:08:55.320 You can get someone to lose weight just by simply getting them to weigh themselves every day 215 00:08:55.400 --> 00:08:56.840 Without giving them any advice at all 216 00:08:56.840 --> 00:08:58.200 So if you pay attention to it 217 00:08:58.200 --> 00:08:59.160 It will start sticking to you 218 00:08:59.160 --> 00:09:01.640 25. Don't bet the empire for a pot of gold 219 00:09:01.640 --> 00:09:03.400 Even though you might have this opportunity here 220 00:09:03.400 --> 00:09:05.720 It's never worth risking the whole pie 221 00:09:05.720 --> 00:09:07.160 And I can't tell you the amount of times where I'm like 222 00:09:07.160 --> 00:09:09.160 Man, if I went all in on this thing 223 00:09:09.160 --> 00:09:09.800 Money-wise 224 00:09:09.800 --> 00:09:11.800 So the thing is that you can go all in on your attention 225 00:09:11.800 --> 00:09:13.240 But I wouldn't go all in on your money 226 00:09:13.240 --> 00:09:15.800 26. Always do a starter deal with new faces 227 00:09:15.800 --> 00:09:16.760 So this is a hard one 228 00:09:16.760 --> 00:09:18.040 One of your friends comes to you and it's like 229 00:09:18.040 --> 00:09:19.560 Dude, I want to do this Airbnb thing 230 00:09:19.560 --> 00:09:21.560 Hey, I've got this to do a starter deal first 231 00:09:21.560 --> 00:09:22.840 You got to see how these people are 232 00:09:22.840 --> 00:09:24.360 Everything should still look great on paper 233 00:09:24.360 --> 00:09:25.240 Everything should still make sense 234 00:09:25.240 --> 00:09:26.280 They should still be amazing characters 235 00:09:26.280 --> 00:09:29.080 etc. You still mitigate your risk by saying 236 00:09:29.080 --> 00:09:31.080 First deal I'm going to do with you is a small deal 237 00:09:31.080 --> 00:09:34.200 27. Trust is worth more than a bigger return 238 00:09:34.200 --> 00:09:36.440 Trust lubricates deal velocity 239 00:09:36.440 --> 00:09:37.640 Trust compounds 240 00:09:37.640 --> 00:09:39.960 You don't want to take all the meat on the bone 241 00:09:39.960 --> 00:09:41.800 Because you want to have a long-term relationship 242 00:09:41.800 --> 00:09:44.200 When I talk to partners, when I talk to business owners 243 00:09:44.200 --> 00:09:46.360 How they talk about the people that they do business with 244 00:09:46.360 --> 00:09:48.600 Tells you a lot about them and how they do business 245 00:09:48.600 --> 00:09:49.640 When I talk to somebody and I'm like 246 00:09:49.640 --> 00:09:50.680 Hey, why didn't you do this? They're like 247 00:09:50.680 --> 00:09:52.920 Hey, these guys have been good to us for a very long time 248 00:09:53.000 --> 00:09:54.840 We've had a very good relationship for 10 years 249 00:09:54.840 --> 00:09:56.440 That is something I respect a lot 250 00:09:56.440 --> 00:09:58.760 And that is what people who have money act like 251 00:09:58.760 --> 00:10:00.920 Poor people are always trying to run over everyone 252 00:10:00.920 --> 00:10:01.640 Over and over again 253 00:10:01.640 --> 00:10:03.960 And they never get any trust from anybody 254 00:10:03.960 --> 00:10:05.960 Which means they have no compounding relationship 255 00:10:05.960 --> 00:10:08.120 28. Money is not a zero sum game 256 00:10:08.120 --> 00:10:09.560 The older I've gotten the more I'm like 257 00:10:09.560 --> 00:10:11.320 How can I get onto their side of the table 258 00:10:11.320 --> 00:10:12.520 And both make money together 259 00:10:12.520 --> 00:10:15.480 Why don't we both take a big piece of this upside 260 00:10:15.480 --> 00:10:17.960 Rather than slice up a pie that's in front of us 261 00:10:17.960 --> 00:10:19.480 29. Never take a standard deal 262 00:10:19.480 --> 00:10:20.360 There's always a better one 263 00:10:20.360 --> 00:10:21.640 There's always a better deal 264 00:10:21.720 --> 00:10:23.160 And a lot of times you just have to ask for 265 00:10:23.160 --> 00:10:25.160 Hey, this term and this term and this term 266 00:10:25.160 --> 00:10:26.360 Are things that are concerning to me 267 00:10:26.360 --> 00:10:27.480 Is there anything we can do about these 268 00:10:27.480 --> 00:10:29.480 Remember earlier leverage comes from not needing the deal 269 00:10:29.480 --> 00:10:30.840 You have to be willing to walk away 270 00:10:30.840 --> 00:10:32.440 And I can't tell you the amount of times 271 00:10:32.440 --> 00:10:33.960 That I've walked away from a deal 272 00:10:33.960 --> 00:10:35.480 And the person comes back after saying 273 00:10:35.480 --> 00:10:36.520 Well, I can't do a deal and I'm like 274 00:10:36.520 --> 00:10:37.400 Cool, no worries 275 00:10:37.400 --> 00:10:38.760 And they come back three or four days later 276 00:10:38.760 --> 00:10:39.400 And they're like 277 00:10:39.400 --> 00:10:40.600 All right man, I'll do the deal 278 00:10:40.600 --> 00:10:41.400 And then I might be like 279 00:10:41.400 --> 00:10:42.440 Hey, well the terms have changed 280 00:10:42.440 --> 00:10:43.240 You know, I'm kidding 281 00:10:43.240 --> 00:10:45.240 30. Expect low risk 282 00:10:45.240 --> 00:10:46.280 Amazing returns 283 00:10:46.280 --> 00:10:47.480 The wealthiest friends that I have 284 00:10:47.480 --> 00:10:48.600 Who are a billionaire plus 285 00:10:48.600 --> 00:10:51.080 They're just not interested in 10 286 00:10:51.080 --> 00:10:52.200 20% returns 287 00:10:52.200 --> 00:10:54.520 They're looking for 50% 288 00:10:54.520 --> 00:10:56.200 Plus annualized returns 289 00:10:56.200 --> 00:10:57.400 Most people expect 10% 290 00:10:57.400 --> 00:10:58.680 Because that's what the S&P does 291 00:10:58.680 --> 00:11:00.760 It doesn't mean that that has to be your personal standard 292 00:11:00.760 --> 00:11:02.120 Thinking through that way has changed 293 00:11:02.120 --> 00:11:03.720 How I saw investing in general 294 00:11:03.720 --> 00:11:05.560 31. Don't think in IRRA 295 00:11:05.560 --> 00:11:07.240 Which means internal rate of return 296 00:11:07.240 --> 00:11:08.280 Instead thinking 297 00:11:08.280 --> 00:11:09.880 How long will this take to double 298 00:11:09.880 --> 00:11:11.240 How long will this take to triple 299 00:11:11.240 --> 00:11:12.120 It's hard to say 300 00:11:12.120 --> 00:11:13.960 This is going to grow by 25% a year 301 00:11:13.960 --> 00:11:15.560 What is easier to say is 302 00:11:15.560 --> 00:11:17.400 This is going to double in three 303 00:11:17.400 --> 00:11:19.560 Changing how you ask the question 304 00:11:19.560 --> 00:11:20.760 Change is how you'll find the answer 305 00:11:20.760 --> 00:11:22.440 32. This is a buffetism 306 00:11:22.440 --> 00:11:24.600 But diversification is a hedge against ignorance 307 00:11:24.600 --> 00:11:26.600 And it's only risky if you don't know what you're doing 308 00:11:26.600 --> 00:11:28.040 There's a million games 309 00:11:28.040 --> 00:11:29.640 And all of them make tons of money 310 00:11:29.640 --> 00:11:31.560 And so it's really about taking one game 311 00:11:31.560 --> 00:11:33.080 And taking it to its natural conclusion 312 00:11:33.080 --> 00:11:35.160 Which is learning every single aspect of that game 313 00:11:35.160 --> 00:11:36.200 Rather than saying 314 00:11:36.200 --> 00:11:37.400 I want to be in stocks 315 00:11:37.400 --> 00:11:38.040 I want to be in real estate 316 00:11:38.040 --> 00:11:38.680 I want to be in crypto 317 00:11:38.680 --> 00:11:39.720 I want to also have my side hustles 318 00:11:39.720 --> 00:11:40.440 I want to like 319 00:11:40.440 --> 00:11:41.720 You can't get good at any of them 320 00:11:41.720 --> 00:11:43.960 Because your competing against people who are all in 321 00:11:43.960 --> 00:11:45.240 Play one game and play well 322 00:11:45.240 --> 00:11:46.040 34 323 00:11:46.040 --> 00:11:48.600 I skipped 33 because I covered it in that last one 324 00:11:48.600 --> 00:11:50.200 Returns are in the terms 325 00:11:50.200 --> 00:11:51.080 Everybody who's watching this 326 00:11:51.080 --> 00:11:53.320 If you make money doing anything that's the side of something 327 00:11:53.320 --> 00:11:54.840 I'll pay you billion dollars 328 00:11:54.840 --> 00:11:56.200 For your business but it's on my terms 329 00:11:56.200 --> 00:11:57.400 And I can make that deal every time 330 00:11:57.400 --> 00:11:58.040 And not lose money 331 00:11:58.040 --> 00:11:59.880 Understanding the terms of the agreement 332 00:11:59.880 --> 00:12:01.800 And how many different ways you can make terms 333 00:12:01.800 --> 00:12:02.760 And the only way you do that 334 00:12:02.760 --> 00:12:03.960 Is through having the conversations 335 00:12:03.960 --> 00:12:05.720 And trying to structure it from learning from other people 336 00:12:05.720 --> 00:12:07.160 35. Whenever possible 337 00:12:07.160 --> 00:12:08.200 Use house money 338 00:12:08.200 --> 00:12:10.520 If you have the opportunity to recoup your principle 339 00:12:10.520 --> 00:12:12.360 And still have money in the game 340 00:12:12.360 --> 00:12:13.000 Do that 341 00:12:13.000 --> 00:12:14.440 Then you can get super aggressive 342 00:12:14.440 --> 00:12:16.200 With the investments and things like that that you're making 343 00:12:16.200 --> 00:12:17.320 But you're doing it on a house money 344 00:12:17.320 --> 00:12:19.560 You're doing it with no chance of losing principle 345 00:12:19.560 --> 00:12:21.720 36. Always know how to get your money back 346 00:12:21.720 --> 00:12:23.560 You have to know the exact way of doing it 347 00:12:23.560 --> 00:12:24.120 Not just like 348 00:12:24.120 --> 00:12:25.160 Oh yeah, I can get my money back 349 00:12:25.160 --> 00:12:25.960 It's like no but 350 00:12:25.960 --> 00:12:27.400 But how would I do it 351 00:12:27.400 --> 00:12:28.920 Walk me through each of the steps 352 00:12:28.920 --> 00:12:31.240 So that I have full understanding of how this would work 353 00:12:31.240 --> 00:12:32.360 If they actually don't mean it 354 00:12:32.360 --> 00:12:33.560 Then they won't have a way to do it 355 00:12:33.560 --> 00:12:35.160 And you'll be able to stiff something out immediately 356 00:12:35.160 --> 00:12:37.720 37. Cash flow is king 357 00:12:37.720 --> 00:12:39.400 Alright and that's both on a personal level 358 00:12:39.400 --> 00:12:40.520 And on a business level 359 00:12:40.520 --> 00:12:41.160 So for you 360 00:12:41.160 --> 00:12:44.040 Your cash flows can be dictated by your income minus your expenses 361 00:12:44.040 --> 00:12:45.480 It's really your saving slow 362 00:12:45.480 --> 00:12:47.320 If there's one thing that you get from money rules 363 00:12:47.320 --> 00:12:49.000 Is that you'd be switching your metric 364 00:12:49.000 --> 00:12:51.400 Towards what am I saving every month 365 00:12:51.400 --> 00:12:53.160 Rather than what am I making every month 366 00:12:53.160 --> 00:12:54.360 38. Buy for forever 367 00:12:54.360 --> 00:12:56.200 This is a Warren Buffett and Charlie Mungerism 368 00:12:56.200 --> 00:12:59.160 Charlie says the money is it made in the buy or the sell 369 00:12:59.160 --> 00:13:00.200 It's made in the wait 370 00:13:00.200 --> 00:13:02.760 If you could never sell anything you buy 371 00:13:02.760 --> 00:13:04.680 When you are buying you could never get out of it 372 00:13:04.680 --> 00:13:05.720 Then you buy differently 373 00:13:05.720 --> 00:13:07.080 And you buy super long 374 00:13:07.080 --> 00:13:08.440 And then ultimately that's what 375 00:13:08.440 --> 00:13:10.360 Does it interrupt the compounding process 376 00:13:10.360 --> 00:13:13.000 And that's what unlocks huge wealth later 377 00:13:13.080 --> 00:13:14.280 39. You heard me say it earlier 378 00:13:14.280 --> 00:13:16.040 But FOMO means go slow 379 00:13:16.040 --> 00:13:17.720 You feel FOMO means slowed out 380 00:13:17.720 --> 00:13:18.600 It means take a second 381 00:13:18.600 --> 00:13:19.240 Give a breather 382 00:13:19.240 --> 00:13:20.680 Put some space between you and the decision 383 00:13:20.680 --> 00:13:22.040 And the only reason you feel FOMO 384 00:13:22.040 --> 00:13:23.480 Is because your timer has been too short 385 00:13:23.480 --> 00:13:25.720 40. If you can't afford to lose the money 386 00:13:25.720 --> 00:13:27.080 Then don't use the money 387 00:13:27.080 --> 00:13:28.760 If you're like this is my last dollar 388 00:13:28.760 --> 00:13:30.760 Then it's probably not a good idea 389 00:13:30.760 --> 00:13:31.720 To risk it 390 00:13:31.720 --> 00:13:33.720 Right? Which is why we always have the OSHIT Fund 391 00:13:33.720 --> 00:13:36.200 41. Peace of mind can be bought 392 00:13:36.200 --> 00:13:37.560 And it can be sold 393 00:13:37.560 --> 00:13:39.160 If there are situations where you're like 394 00:13:39.160 --> 00:13:40.920 Man this is going to keep me up at night 395 00:13:40.920 --> 00:13:41.720 Don't do it 396 00:13:41.800 --> 00:13:43.560 Peace of mind can very much be bought and sold 397 00:13:43.560 --> 00:13:45.640 And I can tell you make much better decisions when you've got it 398 00:13:45.640 --> 00:13:47.000 42. And final 399 00:13:47.000 --> 00:13:49.480 A lot of people think about diversification in terms of industry 400 00:13:49.480 --> 00:13:51.400 But they don't think about it in terms of capital stack 401 00:13:51.400 --> 00:13:53.000 A bank for example is at the top 402 00:13:53.000 --> 00:13:53.960 It's a preferred creditor 403 00:13:53.960 --> 00:13:55.320 It's a reason a lot of banks don't lose money 404 00:13:55.320 --> 00:13:56.680 And it's because they are the first creditors 405 00:13:56.680 --> 00:13:58.360 So you can think about diversification between like 406 00:13:58.360 --> 00:14:00.360 Stocks, crypto, businesses, whatever 407 00:14:00.360 --> 00:14:02.120 You can also think about it vertically