1 00:00:09,700 --> 00:00:12,000 And welcome everybody to another update. 2 00:00:12,000 --> 00:00:12,900 I'm Adam. Sorry. 3 00:00:12,900 --> 00:00:15,200 And as always I want to, thank you very much for being here. 4 00:00:15,200 --> 00:00:18,500 Today's guest on Smart money, circle is Zane Jaffer. 5 00:00:18,500 --> 00:00:22,100 Who is a lifelong entrepreneur. He started his first Venture. 6 00:00:22,100 --> 00:00:24,900 As a teenager. He co-founded mobile advertising 7 00:00:24,900 --> 00:00:28,900 startup vangel, which was acquired by Blackstone in 2019 8 00:00:28,900 --> 00:00:30,800 for almost 800 million. Congratulations. 9 00:00:30,800 --> 00:00:33,400 And that is a huge feat. And shortly afterward. 10 00:00:33,400 --> 00:00:36,200 He started Zane Ventures, which is his family office and he 11 00:00:36,200 --> 00:00:39,300 invests in a diverse portfolio of real estate investment. 12 00:00:39,600 --> 00:00:43,100 Other things and he's currently a partner at Bluefield Capital 13 00:00:43,200 --> 00:00:44,500 Zane. Welcome to the show. 14 00:00:45,100 --> 00:00:46,800 Thank you so much for having me on here. 15 00:00:47,100 --> 00:00:49,200 Thank you for being here. So then I was like to begin. 16 00:00:49,200 --> 00:00:51,700 Can you tell us how you got started in the business and a 17 00:00:51,708 --> 00:00:53,100 little about you and your background? 18 00:00:53,900 --> 00:00:57,200 Yeah, when you hear headlines like a big acquisition for 19 00:00:57,200 --> 00:01:00,400 almost 800 million, it's easy to think of it as an overnight 20 00:01:00,400 --> 00:01:02,000 success. Definitely not. 21 00:01:02,000 --> 00:01:04,900 I think when you said as a teenager, absolutely, it took 22 00:01:04,900 --> 00:01:07,700 years and years of just banging my head against the wall. 23 00:01:08,200 --> 00:01:12,000 So I grew up in a poor family. Emily in the UK, parents are 24 00:01:12,000 --> 00:01:18,500 immigrants and I stayed out of trouble by building websites and 25 00:01:18,600 --> 00:01:21,000 I kept trying to make money over and over again. 26 00:01:21,000 --> 00:01:24,200 And sometimes it worked often. It wasn't very scalable. 27 00:01:24,200 --> 00:01:28,100 I'd be running my own agency, building websites for others, 28 00:01:28,100 --> 00:01:31,900 doing SEO Consulting, whatever you have to do, just to hustle 29 00:01:31,900 --> 00:01:35,800 and make some money. And I would say failure after 30 00:01:35,800 --> 00:01:38,200 failure. After failure, right to the 31 00:01:38,200 --> 00:01:43,500 point where you just I have no hope you, you know, the Lost Art 32 00:01:43,500 --> 00:01:47,300 of prior to the one that was very successful and did with one 33 00:01:47,300 --> 00:01:50,000 of the other co-founders embezzling money. 34 00:01:50,000 --> 00:01:53,300 And, you know, you know, I remember that moment. 35 00:01:53,300 --> 00:01:56,400 It was very dark and I London office, tiny office. 36 00:01:57,500 --> 00:02:00,900 And I was just scratch. I'd finished. 37 00:02:00,900 --> 00:02:03,400 My University was during the credit Crunch, and they were 38 00:02:03,408 --> 00:02:05,500 just all these papers on the floor and me, and my, the 39 00:02:05,500 --> 00:02:07,900 co-founder, ER, we're looking at all these papers. 40 00:02:07,900 --> 00:02:10,199 And these are all like, really All documents. 41 00:02:10,199 --> 00:02:13,100 And we were just thinking, can it get worse than this? 42 00:02:13,700 --> 00:02:16,300 You know, we'll all our money's gone and it just sucks. 43 00:02:16,300 --> 00:02:18,900 But we remember that night. And when I looked at each other, 44 00:02:18,900 --> 00:02:21,900 like, my work, what kind of fight through this, you know, I 45 00:02:21,900 --> 00:02:26,100 think we need to cut our losses. Let's just, let's just have the 46 00:02:26,100 --> 00:02:29,600 guys, settle the lawsuit and passed a little bit, and let's 47 00:02:29,600 --> 00:02:33,700 go on to the next thing. And wow, you know, it wasn't an 48 00:02:33,700 --> 00:02:36,300 overnight either. It was like, pitching VCS and 49 00:02:36,300 --> 00:02:39,300 getting rejected and we just hustled. 50 00:02:39,500 --> 00:02:42,100 Somehow we convinced a few people to take a chance and ask 51 00:02:42,100 --> 00:02:45,800 me raise two million dollars and we moved to the u.s. 52 00:02:45,900 --> 00:02:49,900 From the UK and then we raise 20, you know, in total 25 53 00:02:49,900 --> 00:02:54,500 million and business was off right started with no Revenue. 54 00:02:54,500 --> 00:02:58,800 Then 150k in the first year, 15 million the second year, 56 55 00:02:58,800 --> 00:03:02,000 million, the third year a hundred and something that you 56 00:03:02,000 --> 00:03:04,600 know fourth year and just kept growing until you know, we 57 00:03:04,600 --> 00:03:08,400 exited the business and it was a wonderful lover wild ride and it 58 00:03:08,408 --> 00:03:10,900 was very tough. And you know those stats that 59 00:03:10,900 --> 00:03:15,300 true nine, out of ten, Pounders will fail and fail, doesn't 60 00:03:15,300 --> 00:03:18,200 literally mean go to 0, but fail is in. 61 00:03:18,400 --> 00:03:21,400 They won't make more, they'd be better off. 62 00:03:21,400 --> 00:03:23,400 Just working a normal job. Right. 63 00:03:23,500 --> 00:03:27,400 One out of ten is quite exciting still right string and you'll 64 00:03:27,400 --> 00:03:30,400 eventually hit it. Are you familiar to the in with 65 00:03:30,400 --> 00:03:33,100 the power law distribution versus a normal bell curve 66 00:03:33,100 --> 00:03:35,000 distribution? Unfortunately. 67 00:03:35,000 --> 00:03:35,800 Yes. I know. 68 00:03:35,800 --> 00:03:38,900 I know I messed a lot of startups UNAM, you know. 69 00:03:39,400 --> 00:03:40,500 How it is. Yeah, from case. 70 00:03:40,500 --> 00:03:42,800 Our guests aren't familiar. There's a normal bell curve to 71 00:03:42,800 --> 00:03:46,000 give like a kids in classrooms. I'm get a some get B's most good 72 00:03:46,000 --> 00:03:48,700 C's and D's and F's. But a power law distribution 73 00:03:48,700 --> 00:03:51,100 would be lets say, for example, number of people in the city, 74 00:03:51,400 --> 00:03:53,700 you know, you can't take the average city in America has x 75 00:03:53,700 --> 00:03:56,600 amount, you know, 200,000 residents, when you have the 76 00:03:56,600 --> 00:03:59,500 majority, you know, maybe 10 or 20 cities, have millions and 77 00:03:59,500 --> 00:04:02,100 millions and then the others have hundreds of thousands or 78 00:04:02,100 --> 00:04:03,900 less than that. So, if you're going to build a 79 00:04:03,908 --> 00:04:06,900 water system, or police system, for the average city, you can't 80 00:04:06,900 --> 00:04:09,200 say, let's build it for 200,000 people. 81 00:04:09,400 --> 00:04:12,400 He averaged city has 200,000 people when you've got cities 82 00:04:12,400 --> 00:04:13,800 like New York and Miami and Chicago. 83 00:04:13,800 --> 00:04:15,800 La so on and so forth that have millions and millions. 84 00:04:16,200 --> 00:04:17,899 So that's a power law distribution. 85 00:04:18,000 --> 00:04:20,300 And the same thing is true with startups, or with trading it. 86 00:04:20,300 --> 00:04:23,400 I see that Zane what you're saying and that experience of 87 00:04:23,400 --> 00:04:27,100 just plowing through and overcoming adversity in so many 88 00:04:27,100 --> 00:04:30,200 businesses and in, in any Performance Based business for 89 00:04:30,200 --> 00:04:33,000 that matter, to Tom, Brady had a good line to where he was 90 00:04:33,000 --> 00:04:35,200 getting crushed in one of the Super Bowls and he went to the 91 00:04:35,200 --> 00:04:36,600 halftime. He had the biggest, you know, 92 00:04:36,600 --> 00:04:39,200 deficit ever and anyone ever had here. 93 00:04:39,400 --> 00:04:41,300 This team is like listen, we have one of two options, either. 94 00:04:41,300 --> 00:04:43,200 We lose. We got history as the worst loss 95 00:04:43,200 --> 00:04:45,200 ever, or we can have the greatest comeback ever. 96 00:04:45,200 --> 00:04:47,100 He had the greatest comeback in one that Super Bowl. 97 00:04:47,400 --> 00:04:49,100 So what you're saying really, really ring. 98 00:04:49,100 --> 00:04:53,500 So true. Can you tell us a little now 99 00:04:53,500 --> 00:04:56,400 that you've hit it, you made it big, you know, what, the startup 100 00:04:56,400 --> 00:04:58,000 you get the power law distribution. 101 00:04:59,200 --> 00:05:01,200 Now, you have your own family office and you have glue field. 102 00:05:01,200 --> 00:05:03,500 Capital that you work with. What is your investment 103 00:05:03,500 --> 00:05:06,600 strategy? What do you look for and speak 104 00:05:06,600 --> 00:05:09,200 about that a little bit, please, you know, an incline. 105 00:05:09,300 --> 00:05:11,300 It's like today. I still feel like I'm figuring 106 00:05:11,300 --> 00:05:12,900 it out. And I think that's part of being 107 00:05:12,900 --> 00:05:15,500 a good money manager. You have to be nimble, but 108 00:05:15,500 --> 00:05:18,100 overall I wanted a well-diversified portfolio. 109 00:05:18,100 --> 00:05:19,600 You've got to realize where I came from. 110 00:05:19,600 --> 00:05:22,500 I came from situation where didn't have much money growing 111 00:05:22,500 --> 00:05:24,200 up? Didn't want to screw it up. 112 00:05:24,400 --> 00:05:26,900 Find myself having a hundred percent of my net with 113 00:05:26,900 --> 00:05:29,300 concentrated. Liquid startup. 114 00:05:29,600 --> 00:05:33,500 So that's scary. Because it's on paper. 115 00:05:34,000 --> 00:05:37,700 And, you know, you know, you're going out for dinner with 116 00:05:37,700 --> 00:05:41,100 partners and you can barely make The, you know, you can barely 117 00:05:41,100 --> 00:05:43,300 pay the bill and you're nervous about that and your paper, 118 00:05:43,300 --> 00:05:45,800 you'll your with just a crazy amount of money. 119 00:05:46,100 --> 00:05:49,300 And so those, this magic trick, I wanted to pull off the magic 120 00:05:49,300 --> 00:05:54,400 trick was, how do I take this money that's on paper and turn 121 00:05:54,400 --> 00:05:56,200 into something real? That's in the bank account that 122 00:05:56,200 --> 00:05:58,100 I can access them as much more liquid. 123 00:05:58,400 --> 00:06:02,500 So that that turning to, you know, a big exercise and I 124 00:06:02,800 --> 00:06:05,900 decided to create an investment strategy focused on the idea 125 00:06:05,900 --> 00:06:09,800 that ultimately, I made this money because I want to To, you 126 00:06:09,800 --> 00:06:13,500 know, enjoy the rest of my life. I will probably do another 127 00:06:13,500 --> 00:06:16,400 company and I'm still working pretty hard, but I want to live 128 00:06:16,400 --> 00:06:19,200 a lifestyle and enjoy that lifestyle, but I want to see my 129 00:06:19,200 --> 00:06:22,000 wealth increase. So the idea is you live on a 130 00:06:22,000 --> 00:06:25,300 fraction of your interest. The idea is that you've got all 131 00:06:25,308 --> 00:06:28,900 this principle Capital. If you can just figure out how 132 00:06:28,900 --> 00:06:32,100 to live below, your means and that's a relative term, right? 133 00:06:32,100 --> 00:06:37,400 When you take out some money out of the portfolio, but it's not 134 00:06:37,400 --> 00:06:39,100 so much money that it strangles growth in. 135 00:06:39,400 --> 00:06:42,500 That's so little money that it's a fraction of Interest, right? 136 00:06:42,700 --> 00:06:45,100 Then the magic happens. If you live in a fraction of 137 00:06:45,100 --> 00:06:47,700 Interest, no matter what happens, as long as you stick to 138 00:06:47,700 --> 00:06:50,600 that budget the rest of your portfolio, should overtime grow 139 00:06:50,800 --> 00:06:52,100 it? So that meant building 140 00:06:52,100 --> 00:06:55,600 diversification and there's many models of diversification. 141 00:06:56,400 --> 00:06:58,700 You know, I came up with a model and I ultimately ended up 142 00:06:58,700 --> 00:07:01,500 changing it, but overall on paper. 143 00:07:01,500 --> 00:07:04,900 It looks like 50% stocks with a little bit of bond, exposure of 144 00:07:04,900 --> 00:07:07,800 them, selling bonds because of, you know, the market right now 145 00:07:07,800 --> 00:07:12,000 and probably rebalancing into other assets and then probably 146 00:07:12,000 --> 00:07:14,900 heavier than others. And some people might go heavier 147 00:07:14,900 --> 00:07:16,600 than others, when they're young onto stocks. 148 00:07:16,900 --> 00:07:19,000 I have a lot of stocks, but I've also gone having into 149 00:07:19,000 --> 00:07:23,400 Alternatives. So if it's 50% stocks and bonds 150 00:07:23,500 --> 00:07:27,000 little bit of cash, the rest of it is basically Alternatives. 151 00:07:27,300 --> 00:07:30,200 And I consider alternatives tools to be real estate, which 152 00:07:30,200 --> 00:07:34,000 is a big chunk. So 50% stocks and bonds 25%. 153 00:07:34,000 --> 00:07:38,000 Real estate. And another 25% other stuff that 154 00:07:38,000 --> 00:07:41,300 other stuff is Maybe. Sir, private Equity, 10% 155 00:07:41,300 --> 00:07:44,900 startup, and venture capital, and then maybe how the 5%, what 156 00:07:44,900 --> 00:07:47,800 I call the anti portfolio things that just don't make sense. 157 00:07:48,000 --> 00:07:51,000 It can be, cryptocurrency could be any of these metaphors. 158 00:07:51,200 --> 00:07:54,200 It could be, you know, just stuff that you're going to just 159 00:07:54,200 --> 00:07:57,000 swing for the fences with, it's not startups for some people 160 00:07:57,000 --> 00:07:58,400 that might be swing for the fences. 161 00:07:58,700 --> 00:08:01,700 I mean, I'm tired portfolio is something that I just want to 162 00:08:01,700 --> 00:08:04,900 invest in because you know, I might not understand it, but I 163 00:08:04,907 --> 00:08:07,400 don't want to miss out in case it's big and it really, you 164 00:08:07,400 --> 00:08:09,100 know, it seems to pay off in the sand. 165 00:08:09,300 --> 00:08:11,500 Environment today, where things like crypto of come out of 166 00:08:11,500 --> 00:08:14,700 nowhere. So, you know, ultimately what 167 00:08:14,700 --> 00:08:16,300 happens is you've got some of these. 168 00:08:16,800 --> 00:08:19,500 Some of these will kick out cash flow like real estate and some 169 00:08:19,500 --> 00:08:22,300 of these might be gross areas like private Equity or startups 170 00:08:22,300 --> 00:08:25,600 that you can tap into. But the idea is, you know, this 171 00:08:25,600 --> 00:08:28,700 will change over time. Startups, will become larger and 172 00:08:28,700 --> 00:08:31,500 larger on my portfolio. Potentially just because, you 173 00:08:31,508 --> 00:08:33,900 know, they'll be generating high are ours and you want to sort of 174 00:08:33,900 --> 00:08:37,200 rebalance carefully over time and I think you also want and I 175 00:08:37,208 --> 00:08:39,100 might be a typical to most found. 176 00:08:39,299 --> 00:08:42,600 Is and entrepreneurs because I think I'm a bit conservative 177 00:08:42,600 --> 00:08:45,500 even in the types of, you know, real estate and stocks that I 178 00:08:45,500 --> 00:08:50,200 own a lot of its income focused and I care about that income. 179 00:08:50,200 --> 00:08:52,400 The idea of compounding your wealth. 180 00:08:53,100 --> 00:08:58,700 I don't want to be 100% in Gross and I can scratch that itch like 181 00:08:58,700 --> 00:09:01,800 to say, by doing things. I'm passionate about, I've got a 182 00:09:01,808 --> 00:09:07,200 foundation where I contribute to causes often anonymously, but 183 00:09:07,200 --> 00:09:10,500 sometimes more publicly as well. And other things I just like and 184 00:09:10,500 --> 00:09:13,100 enjoy, like, startups. That gives me such a buzz, a lot 185 00:09:13,100 --> 00:09:15,600 of benefits that sort of my investment strategy. 186 00:09:16,000 --> 00:09:16,900 Interesting. So Zane. 187 00:09:16,900 --> 00:09:19,300 How do you handle risk? And then what mistakes you see, 188 00:09:19,300 --> 00:09:21,500 people make with respect to risk management. 189 00:09:23,600 --> 00:09:29,200 So risk is also relative time and one fallacy is to assume 190 00:09:29,200 --> 00:09:35,900 that the expected return is proportional to the risk of 191 00:09:35,900 --> 00:09:38,100 taking. It's not true at all. 192 00:09:38,100 --> 00:09:39,800 Right. This is sort of, I think a Wall 193 00:09:39,800 --> 00:09:42,100 Street mistake, a lot of veterans come in and assume. 194 00:09:42,100 --> 00:09:45,100 Well if that's got a high investment return projection 195 00:09:45,100 --> 00:09:47,400 than the must be high risk, that's not true at all. 196 00:09:47,400 --> 00:09:51,600 In my view. It's more complicated than that, 197 00:09:52,000 --> 00:09:56,200 but Ultimately, I think I reared towards lower risk when it comes 198 00:09:56,200 --> 00:09:59,600 to traditional assets, and I try to just find good money managers 199 00:09:59,600 --> 00:10:05,500 or other, L other GPS. So there's a term here and LPS 200 00:10:05,500 --> 00:10:08,500 when you invest in someone else, to manage your money for you. 201 00:10:08,700 --> 00:10:11,800 And a GP, a general partner is someone who invests other 202 00:10:11,800 --> 00:10:13,200 people's money. I do it. 203 00:10:13,200 --> 00:10:15,300 Go to both but I came to realize. 204 00:10:15,300 --> 00:10:17,500 Trust experts. Find good managers. 205 00:10:17,500 --> 00:10:20,400 I had a really hard time with the idea that I've made. 206 00:10:20,400 --> 00:10:21,700 All this money. I'm not going to give it to 207 00:10:21,700 --> 00:10:22,600 someone else, and I'm going to pay. 208 00:10:22,700 --> 00:10:24,500 All these fees. I'm going to pay management 209 00:10:24,500 --> 00:10:26,200 fees. I'm going to give a promote or 210 00:10:26,200 --> 00:10:28,100 carry on me, you know. Returns. 211 00:10:28,100 --> 00:10:31,700 They make me then you realize, wait this person day in day out, 212 00:10:31,700 --> 00:10:34,900 just is an expert in their narrow field, right? 213 00:10:35,100 --> 00:10:37,200 They're going to do way better than I can do. 214 00:10:37,400 --> 00:10:41,100 So, let me make sense to find great stock managers or great 215 00:10:41,100 --> 00:10:43,400 one managers or whatever. I at this point. 216 00:10:43,400 --> 00:10:46,600 I have well over 50 different General Partners who manage 217 00:10:46,600 --> 00:10:51,000 different aspects of my portfolio that allows me then to 218 00:10:51,000 --> 00:10:55,000 invest more actively. Things that I enjoy, right? 219 00:10:55,100 --> 00:10:57,400 And if I'm going to invest other people's money and I do that 220 00:10:57,400 --> 00:11:00,000 through beautiful Capital, which is a different entity. 221 00:11:00,000 --> 00:11:02,700 It's a private Equity Fund. Hundreds of millions of dollars 222 00:11:02,800 --> 00:11:05,600 under management, you know billions of dollars worth of 223 00:11:05,600 --> 00:11:07,600 real estate. I'm a, you know, a general 224 00:11:07,600 --> 00:11:10,000 partner, there manage other people's money, alongside a 225 00:11:10,008 --> 00:11:12,400 great team. That's something I do day in day 226 00:11:12,400 --> 00:11:15,300 out and I'm an expert, you know, buying real estate and so is the 227 00:11:15,300 --> 00:11:17,100 to, and investing in startups or something. 228 00:11:17,100 --> 00:11:20,000 I do day, they are, however, I've made a lot of mistakes. 229 00:11:20,000 --> 00:11:22,600 There are things that, you know, you wanted a date. 230 00:11:22,700 --> 00:11:24,600 Trading and you're going to get your butt handed to you. 231 00:11:24,600 --> 00:11:25,900 It's better to find a great hedge fund. 232 00:11:25,900 --> 00:11:28,000 Will, you know, you want to pick in me? 233 00:11:28,000 --> 00:11:30,400 I thought I'd be good at this. Picking tech stocks. 234 00:11:30,700 --> 00:11:34,600 I'd much rather find a good manager and, you know, II use if 235 00:11:34,600 --> 00:11:37,500 we might want to talk about this, you know, a range of 236 00:11:37,508 --> 00:11:39,100 managers. And I'm a big fan of Kathy 237 00:11:39,100 --> 00:11:44,400 Woods, just being beaten, you know, in the market and just has 238 00:11:44,400 --> 00:11:49,600 developed sort of a I mean, you know, Arc, which is an ark 239 00:11:49,600 --> 00:11:52,100 invest as an ETF, but you can invest directly. 240 00:11:53,200 --> 00:11:57,000 She's like the Venture capitalists of stock picking and 241 00:11:57,000 --> 00:12:02,100 she invests in very, very high gross tech stocks were valuation 242 00:12:02,300 --> 00:12:04,700 and Bottoms Up analysis, not the primary way of doing it. 243 00:12:04,700 --> 00:12:08,100 And I returns would be awful this year, but I've been really 244 00:12:08,100 --> 00:12:10,300 amazing over the longer term Horizon. 245 00:12:10,700 --> 00:12:13,100 So I really like that opportunity now because the 246 00:12:13,100 --> 00:12:14,800 markets a lot and I don't have time. 247 00:12:14,800 --> 00:12:17,700 Here's what happened. When you have all this money, 248 00:12:17,700 --> 00:12:20,000 you start, you know, you should see my mobile phone. 249 00:12:20,500 --> 00:12:23,800 I use the Yahoo. Apple stock thing and it's just 250 00:12:23,900 --> 00:12:26,500 just, you know, every day I wake up and I'm looking at it and I 251 00:12:26,500 --> 00:12:29,800 got to stop doing this. Yeah, you know your friends will 252 00:12:29,800 --> 00:12:32,600 start texting you. Oh, you know lemonade is down 253 00:12:32,600 --> 00:12:35,000 right now. Uber is down or you know who 254 00:12:35,000 --> 00:12:37,400 Burr or Airbnb, just announced this. 255 00:12:37,400 --> 00:12:39,200 You should do invest and you get carried away before. 256 00:12:39,200 --> 00:12:41,700 You know it you're spending a lot of your time going to rub it 257 00:12:41,700 --> 00:12:44,600 in a little going on platforms and making trades and you need 258 00:12:44,600 --> 00:12:47,100 to get away from that. That's Supplemental energy 259 00:12:47,300 --> 00:12:48,800 before you know it you're checking your stock. 260 00:12:48,800 --> 00:12:51,900 So that's why I wanted to go and find great managers who I 261 00:12:51,900 --> 00:12:55,100 trusted to do things and I gave an example of Kathy was in the 262 00:12:55,100 --> 00:12:59,200 reason I gave a and jobless. I feel like I didn't like the 263 00:12:59,200 --> 00:13:02,700 current index funds and money managers for attack stopped. 264 00:13:03,800 --> 00:13:06,400 I like Turkish. She picked Tesla very early on 265 00:13:06,400 --> 00:13:09,600 if she's got some really crazy fisa system. 266 00:13:09,600 --> 00:13:14,200 She publishes his, you know, for the public and very excited by 267 00:13:14,208 --> 00:13:16,700 that. I thought, you know what, I like 268 00:13:16,700 --> 00:13:19,400 the stock. She's picking and she's training 269 00:13:19,400 --> 00:13:20,800 for me. Right? 270 00:13:20,900 --> 00:13:23,700 She's not just picking stocks and leaving them short trade, 271 00:13:23,700 --> 00:13:26,000 when there's opportunities when stocks are down and I sort of 272 00:13:26,008 --> 00:13:28,100 did experiment, but some money with her fun. 273 00:13:29,800 --> 00:13:33,800 This is a organization strategy. So that's sort of a, it's a 274 00:13:33,800 --> 00:13:37,000 mirrors, the public ETF that it's a lot cheaper to invest 275 00:13:37,000 --> 00:13:40,200 directly with her and her friend to text me and like okay, that's 276 00:13:40,200 --> 00:13:42,300 interesting and I look at what Kathy with his already trading 277 00:13:42,300 --> 00:13:43,900 that position. That's good. 278 00:13:43,900 --> 00:13:47,300 Now I can start deleting those. Starts off my watch list and I 279 00:13:47,300 --> 00:13:49,200 can focus on things that actually add value. 280 00:13:49,400 --> 00:13:53,500 So the idea what I'm coming back to here in a full circle is you 281 00:13:53,500 --> 00:13:56,300 want to not be a slave to your money because often the more 282 00:13:56,300 --> 00:13:58,100 money you have, you become a slave to it. 283 00:13:58,300 --> 00:14:00,600 You want to let your money work for you. 284 00:14:00,700 --> 00:14:03,400 By trusting people who are aligned with your vision, the 285 00:14:03,400 --> 00:14:07,100 way you would do things, which frees you time to do, things 286 00:14:07,100 --> 00:14:09,000 that you're passionate about that you enjoy. 287 00:14:09,300 --> 00:14:11,500 In my case. It's investing in other Founders 288 00:14:11,500 --> 00:14:13,900 and focusing more on, you know, value-add real estate 289 00:14:13,900 --> 00:14:18,000 opportunities and a lot less. A saint, you know, oh, look. 290 00:14:18,000 --> 00:14:20,400 Look, the stock is down today, and that stocks up today. 291 00:14:20,400 --> 00:14:22,900 And, you know, let me make a quick option trade, which is 292 00:14:22,900 --> 00:14:24,900 also very addicting, you know, yes. 293 00:14:25,200 --> 00:14:26,400 Yeah. Actually is and what you're 294 00:14:26,400 --> 00:14:28,200 saying, Rings? Really, really true. 295 00:14:28,400 --> 00:14:30,500 I just published a new book. It's called psychological 296 00:14:30,500 --> 00:14:32,400 analysis. It's number one on Amazon. 297 00:14:32,600 --> 00:14:34,500 It came out three weeks ago. It's been number one every day 298 00:14:34,500 --> 00:14:37,100 since and in it, I talk about exactly what you're talking 299 00:14:37,100 --> 00:14:38,600 about. The mental capital and physical 300 00:14:38,600 --> 00:14:41,300 capital, and how if you sit there and look at every tick, 301 00:14:41,500 --> 00:14:43,400 you know, when you have bronchitis or any other kind of 302 00:14:43,400 --> 00:14:46,900 itís, I call it take a situs way like My goodness, you just like 303 00:14:46,900 --> 00:14:49,100 sucked into you and they like your eyes next, you know, the 304 00:14:49,100 --> 00:14:52,000 whole day goes by and you've lost money and said what just 305 00:14:52,000 --> 00:14:54,200 happened and nothing happened. There's no productivity. 306 00:14:54,200 --> 00:14:57,100 So, I smelled what you cooking 1000%. 307 00:14:57,800 --> 00:15:02,000 So, you know, it doesn't just apply to stock picking or, you 308 00:15:02,000 --> 00:15:05,300 know, transactional or, you know, automated trading or 309 00:15:05,300 --> 00:15:07,100 whatever, right? Could be Commodities crypto, 310 00:15:07,100 --> 00:15:10,700 anything. It also applies to any 311 00:15:10,700 --> 00:15:13,900 investment activity, you do and sometimes active investment or 312 00:15:13,900 --> 00:15:15,800 actual operation. So I start now. 313 00:15:15,900 --> 00:15:18,800 Now, trying to build a portfolio of real estate, you know, 314 00:15:18,800 --> 00:15:20,800 single-family homes, hard money, construction. 315 00:15:20,800 --> 00:15:24,100 Lending. I tried to build out portfolios 316 00:15:24,100 --> 00:15:27,000 of multifamily buildings. I personally own hundreds, I 317 00:15:27,008 --> 00:15:32,200 think, for 500 units myself that in multifamily, and I also gave 318 00:15:32,200 --> 00:15:34,600 some to other GPS who do this for a living. 319 00:15:34,600 --> 00:15:37,400 And there I am taking calls from tenants because the plumbing 320 00:15:37,400 --> 00:15:39,300 isn't working. I'm having to figure out, I'm 321 00:15:39,308 --> 00:15:41,500 going to pay these taxes are going to file my K 1s. 322 00:15:41,500 --> 00:15:43,700 Now I've got, I've got a crazy amount of paperwork. 323 00:15:43,700 --> 00:15:47,100 And and when all is said and done, You realize? 324 00:15:47,100 --> 00:15:50,100 Wait. I made how much right? 325 00:15:50,400 --> 00:15:54,000 I mean X and I gave money to these other people and they made 326 00:15:54,000 --> 00:15:56,000 why they make more than me. How is this possible? 327 00:15:56,900 --> 00:16:00,400 What if I do this myself and I'm really actively involved. 328 00:16:00,600 --> 00:16:03,100 I'm going to be able to save money on fees and it's such a 329 00:16:03,100 --> 00:16:07,800 fallacy just trust experts and let them do it for you and 330 00:16:07,800 --> 00:16:09,700 decide what you're going to do and be the best in the world of 331 00:16:09,700 --> 00:16:11,400 that. And if you're not like I 332 00:16:11,400 --> 00:16:13,200 certainly have to admit, you know, it took me a while to 333 00:16:13,200 --> 00:16:16,100 understand real estate. So I partnered with Other 334 00:16:16,100 --> 00:16:17,600 people. And now I've got a team at 335 00:16:17,600 --> 00:16:19,900 Bluford where you can learn from, and there's no shame in 336 00:16:19,900 --> 00:16:22,900 doing that often. There's this ego. 337 00:16:22,900 --> 00:16:25,300 Like I had an ego, you know, I built a company from scratch. 338 00:16:25,400 --> 00:16:28,300 No one believed in the everyone turned me down right now. 339 00:16:28,300 --> 00:16:31,000 I built this company from nothing to invest the store. 340 00:16:31,000 --> 00:16:33,700 I wouldn't be able to, you know, even generate a million dollars 341 00:16:33,700 --> 00:16:34,900 a year. I was generating a million 342 00:16:34,900 --> 00:16:36,900 dollars a day in Revenue. Right? 343 00:16:36,900 --> 00:16:39,100 Right, you know, you this thing will never suffer 10 million 344 00:16:39,100 --> 00:16:40,400 will. How about almost a billion, 345 00:16:40,800 --> 00:16:43,300 right? So you develop this ego and as a 346 00:16:43,308 --> 00:16:45,700 CEO, eventually, you're a stop, the song for others. 347 00:16:46,500 --> 00:16:49,100 Right, you don't strain Yourself by the estimate, you make 348 00:16:49,100 --> 00:16:52,900 decisions and a lot of people. The very people who tell you, 349 00:16:52,900 --> 00:16:54,700 when you're running a company, you're going to fail in the 350 00:16:54,700 --> 00:16:57,700 media or the industry are the very people who are glorifying. 351 00:16:57,700 --> 00:16:58,700 You. Why are you were such an 352 00:16:58,700 --> 00:17:01,500 innovator, such a disruptor. So you start to think I can do 353 00:17:01,500 --> 00:17:03,800 this myself. And that is a learning curve 354 00:17:03,800 --> 00:17:06,099 because when I sold my company, I thought I can do everything 355 00:17:06,099 --> 00:17:10,000 myself and then you realize no. Don't try to do everything 356 00:17:10,000 --> 00:17:11,900 yourself. Find experts instead. 357 00:17:12,099 --> 00:17:13,900 Yeah, and pay them. Well, that's really really smart 358 00:17:13,900 --> 00:17:16,200 if they weren't providing value. They wouldn't be in Business, 359 00:17:16,200 --> 00:17:17,400 right. So clearly they're providing 360 00:17:17,400 --> 00:17:19,800 value. And yeah, I fully fully get that 361 00:17:19,800 --> 00:17:20,599 too. Okay. 362 00:17:20,599 --> 00:17:24,099 So the way that you would handle risk is by diversifying your 363 00:17:24,099 --> 00:17:25,200 portfolio. Number one. 364 00:17:25,200 --> 00:17:29,300 Number two, making sure that you allocate to experts, pay them 365 00:17:29,300 --> 00:17:31,700 well and let them do their job. Almost like, get out of their 366 00:17:31,700 --> 00:17:33,800 way. And then the third part, if I 367 00:17:33,808 --> 00:17:37,200 understand you correctly is to focus on the highest Roi 368 00:17:37,200 --> 00:17:40,800 activities that you can possibly do, like the top 1% Forget. 369 00:17:40,800 --> 00:17:43,100 The 80/20 rule is like 90 91, right? 370 00:17:43,100 --> 00:17:45,300 I have that in the book to where it's like just focus on the 371 00:17:45,300 --> 00:17:47,500 stuff. Leaves, most critical, highest 372 00:17:47,500 --> 00:17:50,600 level, highest Roi activities, and almost Outsource the rest if 373 00:17:50,600 --> 00:17:52,800 at all possible, is that more or less? 374 00:17:52,800 --> 00:17:54,600 What you're saying, more or less. 375 00:17:54,600 --> 00:17:58,800 I'd adopt that last part to say sometimes you want to focus on 376 00:17:58,800 --> 00:18:02,000 the best Roi activities are. Oh I can only be generated in 377 00:18:02,000 --> 00:18:03,500 the area where deep expertise is needed. 378 00:18:03,500 --> 00:18:06,400 So bringing someone who's an expert in that area instead, 379 00:18:06,400 --> 00:18:09,300 folks members that you love and you enjoy and it's more than 380 00:18:09,300 --> 00:18:13,000 about money itself. So for me I can invest and I've 381 00:18:13,000 --> 00:18:15,700 invested I don't know how many, maybe 10 different venture. 382 00:18:15,800 --> 00:18:19,800 It'll funds might just because I know those Reese's maybe some of 383 00:18:19,800 --> 00:18:22,700 them invested in me. And I love that but that could I 384 00:18:22,708 --> 00:18:24,100 could be done. I can be done in the say. 385 00:18:24,100 --> 00:18:26,200 Okay? Here's my exposure to startups. 386 00:18:26,200 --> 00:18:28,300 I invest in 10, BC funds, know what do I do? 387 00:18:28,600 --> 00:18:31,700 I go and invest in startups directly as well because I love 388 00:18:31,700 --> 00:18:34,500 it. And the truth is maybe these VCS 389 00:18:34,500 --> 00:18:36,900 will outperform me because, you know, these species have been 390 00:18:36,900 --> 00:18:39,300 doing this for a long time and I've generated good are, you 391 00:18:39,300 --> 00:18:41,700 know, they've got a good platform here. 392 00:18:41,700 --> 00:18:43,900 I am investing in startups myself. 393 00:18:44,200 --> 00:18:47,700 Maybe my irr might not There is but I love what I'm doing. 394 00:18:47,700 --> 00:18:51,100 I just love talking to Founders. And for me, that is the best Roi 395 00:18:51,100 --> 00:18:53,800 that every time I invest in a start-up, I want to meet the 396 00:18:53,800 --> 00:18:55,700 founder and talk to them. I don't like the idea that I'm 397 00:18:55,700 --> 00:18:58,200 just passively investing in a farm and they're doing a lot of 398 00:18:58,200 --> 00:18:59,600 that right? You'll make more money. 399 00:18:59,600 --> 00:19:02,400 Probably, I'm probably not. So my portfolio is doing really 400 00:19:02,400 --> 00:19:05,700 well and the powerless Works Investments. 401 00:19:05,700 --> 00:19:09,200 You make the crazier, the returns there are sometimes, but 402 00:19:09,300 --> 00:19:11,300 do things you enjoy as well. Yeah. 403 00:19:11,300 --> 00:19:14,300 I meant Roi is not just money, but overall, like, what do you 404 00:19:14,300 --> 00:19:15,600 enjoy the best? What's the best route? 405 00:19:15,800 --> 00:19:17,800 Turn on your time. So yeah, I'd love that to thank 406 00:19:17,800 --> 00:19:20,600 you for clarifying. Okay, what are some Timeless 407 00:19:20,600 --> 00:19:22,100 lessons? You've learned along the way. 408 00:19:22,100 --> 00:19:24,900 Like, if you go back to when you were 20 or 30 games started, 409 00:19:25,000 --> 00:19:27,400 what advice would you give your former self or share with the 410 00:19:27,400 --> 00:19:30,700 audience? And there's a lot, feel free to 411 00:19:30,900 --> 00:19:33,400 go as much as you want. So if you were running back a 412 00:19:33,408 --> 00:19:36,800 little bit to the start of this podcast, I talked about my story 413 00:19:36,800 --> 00:19:40,800 and, and many times success comes right? 414 00:19:40,800 --> 00:19:43,400 When you're about to give up when you feel like there's no 415 00:19:43,400 --> 00:19:46,500 hope left. I gave that analogy that Dark 416 00:19:46,500 --> 00:19:51,200 room we were in after, you know, trying to Sue this other guy in 417 00:19:51,200 --> 00:19:55,700 cult, the state of my money and paper after paper on the floor 418 00:19:55,700 --> 00:19:57,100 and you're like, how we're going to get through this. 419 00:19:57,100 --> 00:20:00,000 We don't have a company anymore. Just when you feel like quitting 420 00:20:01,400 --> 00:20:04,900 that something is a break and that's when your mind somehow 421 00:20:04,900 --> 00:20:07,100 creates opportunities and it's almost like a test from the 422 00:20:07,100 --> 00:20:11,000 universe, right? I feel like if you really want 423 00:20:11,000 --> 00:20:13,300 it, you have to prove you're hungry for it right now. 424 00:20:13,400 --> 00:20:15,300 That's going to give you that metal. 425 00:20:15,300 --> 00:20:18,300 That's Strength, that armor, two poles or anything. 426 00:20:18,800 --> 00:20:21,200 So, that's one success comes right. 427 00:20:21,400 --> 00:20:24,700 At the point where you feel like you're about to quit, and maybe 428 00:20:24,700 --> 00:20:27,000 it might be, you know, after you've broken your leg of that 429 00:20:27,000 --> 00:20:30,400 marathon, and you still crawling beyond the Finish Line, it comes 430 00:20:30,400 --> 00:20:31,700 around that time. Okay. 431 00:20:31,700 --> 00:20:38,200 So have faith in that. Then, the other thing is, The 432 00:20:38,800 --> 00:20:41,100 and I think this is unique perspective, I can offer because 433 00:20:41,100 --> 00:20:42,500 I can say, a lot of generic stuff. 434 00:20:42,500 --> 00:20:45,000 But I want to say something I think is more, you know, some 435 00:20:45,000 --> 00:20:47,300 wisdom. I've learned right, being a 436 00:20:47,300 --> 00:20:50,400 founder and being an investor are completely different skill 437 00:20:50,400 --> 00:20:54,500 sets, right? And very powerful statement. 438 00:20:54,600 --> 00:20:58,200 Yeah, and even being one type of investor that doesn't 439 00:20:58,200 --> 00:21:00,900 necessarily translate to a different type of investment 440 00:21:00,900 --> 00:21:03,300 asset class. So given, all right. 441 00:21:03,300 --> 00:21:06,100 I run a venture capital fund as well. 442 00:21:06,400 --> 00:21:07,800 Will we? Invest in the very narrow 443 00:21:07,800 --> 00:21:12,800 vertical, which is prop tag, and I also invest in real estate. 444 00:21:14,000 --> 00:21:16,300 Now, the way you look at investment opportunities need to 445 00:21:16,300 --> 00:21:20,200 be totally different. And even as a Founder to us the 446 00:21:20,200 --> 00:21:23,200 same founder and a VC, look at World in similar ways. 447 00:21:23,500 --> 00:21:27,800 So what I'm talking to Founders, I really am betting on the 448 00:21:27,800 --> 00:21:30,400 Parson, everything. They're telling me, that's what 449 00:21:30,400 --> 00:21:33,400 I put a lot of weight on. You do not want to take that 450 00:21:33,400 --> 00:21:36,900 same approach in real estate. If you're buying real estate and 451 00:21:36,900 --> 00:21:39,000 you're believing what the burglars telling you, you 452 00:21:39,000 --> 00:21:40,700 believe it. What the cell is telling you, 453 00:21:42,000 --> 00:21:47,200 your host, right? Same in the same way. 454 00:21:47,200 --> 00:21:50,000 You need to look at those. Spreadsheets and you need to do 455 00:21:50,008 --> 00:21:52,300 a lot of modeling and you need to look at cops. 456 00:21:52,800 --> 00:21:56,300 That is a useless activity when it comes to startups and found 457 00:21:56,300 --> 00:21:59,200 what you're investing in startups spreadsheet. 458 00:21:59,200 --> 00:22:02,100 So useless Beyond understanding the assumptions. 459 00:22:02,500 --> 00:22:04,700 It doesn't really matter what they're projecting for you, 460 00:22:04,700 --> 00:22:07,200 three, four, five. You just want to understand or 461 00:22:07,200 --> 00:22:10,700 even you do for that matter. You just want to understand what 462 00:22:10,700 --> 00:22:12,900 are their assumptions? What are the drivers of growth 463 00:22:13,100 --> 00:22:14,800 is the market big? But yeah, it doesn't really 464 00:22:14,800 --> 00:22:16,700 matter. I bet it on the person, right? 465 00:22:16,700 --> 00:22:20,200 So I believed a little bit too. Much initially, you know, in the 466 00:22:20,200 --> 00:22:22,800 vision of what the Realtors telling you that you can do in 467 00:22:22,800 --> 00:22:26,300 this property and how you can turn this into an amazing, you 468 00:22:26,300 --> 00:22:30,100 know, vacation rental and, you know, telling you emotionally, 469 00:22:30,600 --> 00:22:33,200 and you got to be careful. If someone knows you have money 470 00:22:33,200 --> 00:22:36,500 or you're calling from a zip code, like California, yeah, 471 00:22:36,600 --> 00:22:39,000 falling out of state. Like I was calling out of state 472 00:22:39,000 --> 00:22:41,300 taxes, and all those Brokers, love it. 473 00:22:41,300 --> 00:22:46,200 When the 650 full 15 area code is ringing up the presenter. 474 00:22:46,200 --> 00:22:48,500 I am looking to diversify and I live in. 475 00:22:48,700 --> 00:22:50,700 In value. Oh, please come over because of 476 00:22:50,700 --> 00:22:52,600 great off Market opportunities for you. 477 00:22:52,900 --> 00:22:59,700 Where's Betty 40% more? And so you learn that way, that 478 00:22:59,700 --> 00:23:02,400 probably brings you to another one and this is a really sad 479 00:23:02,400 --> 00:23:05,700 piece of advice, really sad. Because I'm a trusting guy. 480 00:23:06,300 --> 00:23:09,100 I'm a founder of ha and I like to view the world through these 481 00:23:09,100 --> 00:23:12,800 rose-tinted spectacles and I like to give everyone a chance, 482 00:23:12,800 --> 00:23:17,900 but you better be very very You're gonna have to go double 483 00:23:17,900 --> 00:23:20,600 time. People are trying to rip you off 484 00:23:20,600 --> 00:23:22,700 constantly. There's a whole Shadow industry 485 00:23:22,700 --> 00:23:28,800 of these unqualified Brokers and broker-dealers to on qualified 486 00:23:28,800 --> 00:23:31,400 and bring opportunities to sell you snake. 487 00:23:31,400 --> 00:23:34,500 Oil will try to be, you know, appeal to emotion and I've seen 488 00:23:34,500 --> 00:23:38,500 this, you know, if you run if you're high-net-worth very ultra 489 00:23:38,500 --> 00:23:40,600 high net worth individual or you want a family office. 490 00:23:40,900 --> 00:23:44,200 You're bombarded with people offering opportunity after 491 00:23:44,200 --> 00:23:48,600 opportunity and eventually you Develop the psyche spider-sense. 492 00:23:48,700 --> 00:23:50,400 You have to get screwed, a little bit to develop it. 493 00:23:50,400 --> 00:23:53,400 But you're like, you know, it doesn't smell right right? 494 00:23:53,700 --> 00:23:55,200 Easiest, you know, I'll give an example. 495 00:23:55,300 --> 00:23:56,400 I'm not going to name names here. 496 00:23:56,400 --> 00:23:59,800 But you got a lot of people that talk a lot of talk. 497 00:23:59,800 --> 00:24:00,800 Right? Right. 498 00:24:01,100 --> 00:24:03,000 And they'll come to another like, you know, interested in 499 00:24:03,008 --> 00:24:05,500 buying a property and there's this whole thing in real estate 500 00:24:05,500 --> 00:24:08,100 where you can put a deal on the contract without actually using 501 00:24:08,100 --> 00:24:10,000 any money. You can just tie it up, right? 502 00:24:10,400 --> 00:24:14,700 And one thing you always do as an investor is reference, check 503 00:24:14,700 --> 00:24:16,400 the hell out of everyone, I do that. 504 00:24:16,500 --> 00:24:19,300 Even with an investigator founder or whether I'm investing 505 00:24:19,300 --> 00:24:23,400 in real estate or, you know, a money manager reference people. 506 00:24:23,600 --> 00:24:28,700 I wonder if someone is sort of and I've had this at that, this 507 00:24:28,700 --> 00:24:30,500 happen a few times and get insulted. 508 00:24:30,600 --> 00:24:32,400 What were you trying to reference me for? 509 00:24:32,600 --> 00:24:34,500 You know, I'm a respected person. 510 00:24:34,600 --> 00:24:37,200 I've done this, I've done that. I can close Faust. 511 00:24:37,500 --> 00:24:39,900 Well, sir, if you can't, well, I need is a few references. 512 00:24:39,900 --> 00:24:42,300 You know, I'm glad to give references to people when they 513 00:24:42,300 --> 00:24:44,600 were with me because I want them to know, right? 514 00:24:44,900 --> 00:24:46,400 Do what I say, and I had one guy. 515 00:24:46,600 --> 00:24:49,700 Recently, I wanted to put some of my properties under contract 516 00:24:49,700 --> 00:24:51,700 and I was like, oh, great. Well, you've done all of this. 517 00:24:51,700 --> 00:24:53,900 Just people who introduced me to a few other sellers. 518 00:24:53,900 --> 00:24:56,300 So you've, you know, done business with. 519 00:24:56,400 --> 00:24:57,900 Oh, no, I can't do that. I like to keep things 520 00:24:57,900 --> 00:24:59,600 confidential. And you know when you dig in 521 00:24:59,600 --> 00:25:02,300 deeper you like. Whoa, this doesn't feel, right. 522 00:25:02,300 --> 00:25:06,500 So if you're new to money, if you get rich quickly and you 523 00:25:06,500 --> 00:25:09,500 haven't built that, you know, muscle, you're going to be 524 00:25:09,500 --> 00:25:12,800 tempted to make a lot of decisions and trust people don't 525 00:25:13,500 --> 00:25:15,000 watch only. If it is too good to be true, it 526 00:25:15,000 --> 00:25:17,700 often is referenced. Eight people and if someone ever 527 00:25:17,700 --> 00:25:21,400 puts up a red Sun of a, put some resistance to being referenced 528 00:25:21,500 --> 00:25:24,300 walk the hell away, obviously, right. 529 00:25:24,300 --> 00:25:27,400 But away, when you, when you do the reference, the number one 530 00:25:27,400 --> 00:25:29,500 question you start was very, how long have you do business with 531 00:25:29,500 --> 00:25:30,600 that person? How do you know them? 532 00:25:30,800 --> 00:25:33,100 The amount of times I've heard what? 533 00:25:33,100 --> 00:25:35,400 You know, how I know him. I've known him for. 534 00:25:35,400 --> 00:25:36,400 What? Have you known him? 535 00:25:36,400 --> 00:25:37,800 What, you know, he's my brother-in-law. 536 00:25:38,500 --> 00:25:40,400 Exactly. But forever is my cousin. 537 00:25:40,400 --> 00:25:43,400 You're like, okay, this on a biased reference, right? 538 00:25:43,500 --> 00:25:45,100 What about it's difference at all. 539 00:25:45,200 --> 00:25:48,500 And also not noticed. Character reference because 540 00:25:48,800 --> 00:25:52,800 that's hard to kind of validate go deeper and reference things 541 00:25:52,800 --> 00:25:54,700 like tell me about the transaction. 542 00:25:54,700 --> 00:25:57,400 How long did it take to close? What was the process? 543 00:25:57,400 --> 00:26:01,100 Like go really deep and detailed and then you'll realize that 544 00:26:01,600 --> 00:26:05,100 okay, you know, this isn't as clean as you thought it was 545 00:26:05,400 --> 00:26:09,100 because when you enter a contract, even if you're selling 546 00:26:09,100 --> 00:26:11,500 a company, for example, right? And I had this happen with some 547 00:26:11,500 --> 00:26:14,400 large tech companies, some very large tech companies, wasted our 548 00:26:14,400 --> 00:26:16,400 time to, they pretending, they were interested in acquiring, 549 00:26:16,500 --> 00:26:19,700 Iran us and wasted our time, you know, and I'm they're distracted 550 00:26:19,700 --> 00:26:23,200 or even feces can do this to. You really want to make sure 551 00:26:23,200 --> 00:26:26,100 that once you have all the leverage before you enter into a 552 00:26:26,100 --> 00:26:29,800 contract, like negotiating with the Chinese. 553 00:26:29,800 --> 00:26:31,700 For example, I did a lot of business with Chinese and over 554 00:26:31,700 --> 00:26:35,300 there, you know, we may try to reach a huge revenue streams, 555 00:26:35,300 --> 00:26:37,100 second largest revenue stream for our business. 556 00:26:37,100 --> 00:26:39,800 But in China, it feels like the negotiations. 557 00:26:39,800 --> 00:26:42,100 Happen often you sign the contract, not before. 558 00:26:42,400 --> 00:26:45,300 Oh, wow. And so, this, this phenomena is 559 00:26:45,300 --> 00:26:47,100 dangerous, because once you're on the clock, Franklin people 560 00:26:47,100 --> 00:26:50,200 start to trade terms of you. You've lost your leverage. 561 00:26:50,200 --> 00:26:52,900 And then you sort of, as they say become pregnant, you know, 562 00:26:52,900 --> 00:26:55,000 you're pregnant now, with the still, you told your team, 563 00:26:55,000 --> 00:26:56,600 you're going to do to do, especially if you're selling a 564 00:26:56,600 --> 00:26:59,400 company, you have to give concessions and the dualism. 565 00:26:59,400 --> 00:27:02,800 We thought it was so do your due diligence before you enter into 566 00:27:02,800 --> 00:27:05,600 a contract? That's a really, really really 567 00:27:05,800 --> 00:27:08,000 great set of lessons. And it's funny as they miss 568 00:27:08,000 --> 00:27:09,700 their first time Evers meeting you're speaking. 569 00:27:09,700 --> 00:27:12,500 But there's so many parallels with what you're saying in your 570 00:27:12,500 --> 00:27:15,200 experience is what I've observed and even wrote about in the 571 00:27:15,208 --> 00:27:16,800 book. To its I have some He called the 572 00:27:16,800 --> 00:27:20,300 one second rule where you can give up almost one proverbial 573 00:27:20,300 --> 00:27:21,400 second later. Boom. 574 00:27:21,400 --> 00:27:24,000 That we go your way and hit whether you own a stock, and you 575 00:27:24,000 --> 00:27:25,200 can't take it anymore and you sell it. 576 00:27:25,200 --> 00:27:27,800 And then right away, it goes up afterwards and you're laughing, 577 00:27:27,800 --> 00:27:29,700 or you own a business, and you can't take the pressure anymore. 578 00:27:29,700 --> 00:27:32,100 You give up and then had you just fell for that one more 579 00:27:32,100 --> 00:27:34,500 proverbial, second. It would have worked in gone, 580 00:27:34,700 --> 00:27:37,400 and then same with your other points, to the reference, 581 00:27:37,400 --> 00:27:41,200 checking is so critical and I love these lessons. 582 00:27:41,200 --> 00:27:43,600 These are really, really, really good and it's amazing. 583 00:27:43,600 --> 00:27:46,200 How in the book. I say winners win? 584 00:27:46,500 --> 00:27:49,300 Three that one line in the book and what you were talking about 585 00:27:49,300 --> 00:27:51,900 to where it's like, okay, you're going to do something that you 586 00:27:51,900 --> 00:27:54,200 get that smell tested. That six the spidey sense or 587 00:27:54,200 --> 00:27:56,900 just watch Spider-Man with my kids, the other day and you get 588 00:27:56,900 --> 00:27:58,700 that spidey sense. Something doesn't make sense. 589 00:27:58,700 --> 00:28:00,400 Here. Something doesn't smell right 590 00:28:00,500 --> 00:28:03,000 and you walk away. So Warren Buffett has something 591 00:28:03,000 --> 00:28:05,900 called the circle of competence and he goes, I just know what I 592 00:28:05,900 --> 00:28:08,400 know and that's it. You know, he missed the 2098 593 00:28:08,400 --> 00:28:11,400 2000 Tech bomb bubble and he said, it's okay. 594 00:28:11,400 --> 00:28:14,300 It's not my circle confidence. So you master the art of saying, 595 00:28:14,300 --> 00:28:17,100 no is what I say. And just look for that one. 596 00:28:17,100 --> 00:28:20,200 Gem to say yes to but wow, it's really it's almost like the same 597 00:28:20,200 --> 00:28:23,400 language but two parallel different stories and here's the 598 00:28:23,408 --> 00:28:26,300 intersection of them. But yeah, winners win, it's just 599 00:28:26,300 --> 00:28:28,200 that simple. Okay, that's fantastic. 600 00:28:28,200 --> 00:28:29,600 Those are a lot of great Timeless lessons. 601 00:28:29,600 --> 00:28:31,500 Thank you for that. What about sometimes? 602 00:28:32,700 --> 00:28:36,400 I want to add another Timeless lesson to trade time the train 603 00:28:36,400 --> 00:28:39,600 and train the time. Okay, so try not to change the 604 00:28:39,600 --> 00:28:42,800 way halfway through the process. Be be strong understanding 605 00:28:42,800 --> 00:28:45,300 initial conviction, because you're often right sometimes 606 00:28:45,300 --> 00:28:47,900 writes in investment memo. You must and I do that for, you 607 00:28:47,908 --> 00:28:51,100 know, RVC Investments. That way, you can go back and 608 00:28:51,100 --> 00:28:52,800 understand. Here's why I invested what my 609 00:28:52,800 --> 00:28:55,400 thesis is. And the other thing I want to 610 00:28:55,400 --> 00:28:58,500 depart is wisdom, especially as you know, this is a lot about 611 00:28:58,500 --> 00:29:00,200 advice. In this particular podcast. 612 00:29:01,500 --> 00:29:05,700 This is a very Tech Silicon Valley mindset, but I really 613 00:29:05,700 --> 00:29:08,700 believe in it. It's not cutting your losses in 614 00:29:08,700 --> 00:29:11,900 the windows as much as holding on for dear life. 615 00:29:11,900 --> 00:29:16,300 Sometimes holding on and letting that thing, right? 616 00:29:16,400 --> 00:29:18,900 Right? And the greatest, VCS have 617 00:29:18,900 --> 00:29:22,500 understood this Sequoia Capital One and the best VC firms has 618 00:29:22,500 --> 00:29:24,100 changed their investment Horizon. 619 00:29:24,100 --> 00:29:27,100 And basically it will hold forever if they must because 620 00:29:27,400 --> 00:29:30,400 once that thing starts to grow especially in start of that, 621 00:29:30,400 --> 00:29:33,100 right? My god. 622 00:29:33,100 --> 00:29:35,500 Wow, and the fact that some of these assets like real estate 623 00:29:35,500 --> 00:29:37,300 and startups are not. Liquid is actually a blessing 624 00:29:37,300 --> 00:29:40,500 because then you can't just go to Robin Hood and hit cell, you 625 00:29:40,500 --> 00:29:43,100 know, your stock and you have to ignore it. 626 00:29:43,200 --> 00:29:44,800 It can grow. I want it grows. 627 00:29:44,800 --> 00:29:47,300 It can grow 10x, 100x. Thousand exceeding. 628 00:29:47,300 --> 00:29:50,400 Some of these things and so holding onto your winners, were 629 00:29:50,400 --> 00:29:54,000 those the public stock, whether it's real estate project to 630 00:29:54,000 --> 00:29:57,900 whether it's a start-up holding on and just let him that thing 631 00:29:57,900 --> 00:30:00,400 where I and sometimes holding on for a long time, you know, if 632 00:30:00,400 --> 00:30:05,200 you if you held on throughout the Early times in the market, 633 00:30:05,200 --> 00:30:07,700 so crypto our only asset you'd be much better off to training 634 00:30:07,700 --> 00:30:09,800 in and out. Yeah, I couldn't agree with you 635 00:30:09,808 --> 00:30:12,200 more. There's no question again in the 636 00:30:12,208 --> 00:30:15,100 book of buffer cause of the Great American Tail wind or he 637 00:30:15,100 --> 00:30:16,300 calls it. The American Tail wind. 638 00:30:16,400 --> 00:30:18,400 Right. I called the Great American Tail 639 00:30:18,400 --> 00:30:20,800 wind, just to make some new, make a little different, and 640 00:30:20,800 --> 00:30:23,800 this is ho true if you just hold on to the winners, but let's 641 00:30:23,800 --> 00:30:25,800 talk about the losers for a second because this next 642 00:30:25,800 --> 00:30:28,400 questions about mistakes. What are sometimes mistakes? 643 00:30:28,400 --> 00:30:31,600 You see people make, would you say doubling down and owning too 644 00:30:31,600 --> 00:30:33,500 much of their losers? Or would you say, you know, 645 00:30:33,500 --> 00:30:36,100 keeping those laws of smaller? How do you handle all that? 646 00:30:36,200 --> 00:30:37,500 And what are some mistakes? You see people made? 647 00:30:37,800 --> 00:30:41,800 I mean, it's time to emotions and there's this idea that I'm 648 00:30:41,800 --> 00:30:44,700 buying this, because it's low. Wow, it's dropped even more. 649 00:30:44,700 --> 00:30:46,300 Let me keep buying. Okay, instructed him. 650 00:30:46,500 --> 00:30:48,500 Let me keep buying and eventually you will hold you end 651 00:30:48,500 --> 00:30:53,600 up holding a falling knife and you actually have to be willing 652 00:30:53,600 --> 00:30:56,300 to buy on the way up as much as you are on the way down. 653 00:30:56,400 --> 00:30:59,400 Right dollar cost. Averaging is such a true 654 00:30:59,400 --> 00:31:02,500 time-tested strategy when you're entering into an asset. 655 00:31:02,500 --> 00:31:05,000 You just keep buying no matter what like I do that. 656 00:31:05,000 --> 00:31:07,700 There's a few money managers who are dollar cost average into 657 00:31:07,700 --> 00:31:11,600 even more than my initial and like, Kathy Woods Arc. 658 00:31:11,600 --> 00:31:14,500 Right now. I don't care if to ETF or the 659 00:31:14,500 --> 00:31:16,300 mom. If the thing is down, I started 660 00:31:16,400 --> 00:31:19,400 investing around 120. It's not that at 78. 661 00:31:19,400 --> 00:31:20,900 I don't care. I'm arresting every month. 662 00:31:21,100 --> 00:31:21,600 Right? Right. 663 00:31:21,600 --> 00:31:25,200 I see it. If the next two years, I get to 664 00:31:25,200 --> 00:31:28,200 reduce my cost basis if it goes up who cares like it's supposed 665 00:31:28,200 --> 00:31:32,500 to go up, just investing no matter what always be investing, 666 00:31:33,400 --> 00:31:37,000 create sort of a system and it goes back earlier. 667 00:31:37,000 --> 00:31:39,500 When I said you live a lifestyle, we live on the 668 00:31:39,500 --> 00:31:41,200 fraction of your interest, right? 669 00:31:41,200 --> 00:31:43,100 Well, so keep deploying the rest of it. 670 00:31:43,100 --> 00:31:44,700 Always be deploying the plane, the plane. 671 00:31:44,700 --> 00:31:47,700 You compounding beautiful. Just just beautiful. 672 00:31:47,700 --> 00:31:49,300 Like what compounding can do for you? 673 00:31:49,500 --> 00:31:51,700 It really is. It said it's the eighth wonder 674 00:31:51,700 --> 00:31:54,900 of the world, right? Certainly is. 675 00:31:54,900 --> 00:32:01,500 Yeah, in terms of other mistakes. 676 00:32:01,900 --> 00:32:04,700 There's there's just so many mistakes. 677 00:32:04,700 --> 00:32:11,900 You can make go make sure that investing doesn't take up your 678 00:32:11,900 --> 00:32:13,700 life. Unless you're a professional 679 00:32:13,700 --> 00:32:17,000 money manager, if you're on the lp side and you Investing with 680 00:32:17,000 --> 00:32:21,200 someone else, trust them. I mean, trust the verify 681 00:32:21,200 --> 00:32:24,100 obviously. Yeah, but don't micromanage. 682 00:32:24,100 --> 00:32:27,100 And don't actually become a day trader because you will lose 683 00:32:27,100 --> 00:32:30,600 ultimately, eventually, those hedge funds have a lot more 684 00:32:30,600 --> 00:32:32,400 technology than you do. Yeah. 685 00:32:32,600 --> 00:32:36,000 That's a lot of amateur mistakes me to I started, you know, 686 00:32:36,000 --> 00:32:39,000 shorting the markets at some stage and trading in, and out of 687 00:32:39,200 --> 00:32:42,400 stocks, and it was a mistake. Yeah, and don't do that. 688 00:32:42,600 --> 00:32:46,300 It's it happens way too often. I always tell people, there's no 689 00:32:46,400 --> 00:32:48,800 In areas that are day Traders, but there's many billionaires 690 00:32:48,800 --> 00:32:50,500 that our investors. Yeah. 691 00:32:50,500 --> 00:32:52,700 Exactly. Yeah even position Traders. 692 00:32:53,100 --> 00:32:55,300 Okay. Fantastic, I guess the final 693 00:32:55,300 --> 00:32:57,900 question I have for you is a name is what's the best piece of 694 00:32:57,900 --> 00:32:59,200 advice? You'd like to share with the 695 00:32:59,200 --> 00:33:02,600 audience? Like we've been piloting, a lot 696 00:33:02,600 --> 00:33:08,900 of advice. Ultimately time is very 697 00:33:08,900 --> 00:33:13,900 precious. You only live on this planet for 698 00:33:13,900 --> 00:33:18,200 a fraction of its existence. So do something meaningful with 699 00:33:18,200 --> 00:33:22,600 your life and your money, I've had a lot of people who have 700 00:33:22,600 --> 00:33:27,000 common if said stuff like one day I want to help my parents 701 00:33:27,000 --> 00:33:29,900 and I want to save up for their retirement and I want to 702 00:33:29,908 --> 00:33:31,700 contribute to these social causes. 703 00:33:32,000 --> 00:33:36,000 These are very Noble causes. Why are you waiting for a magic 704 00:33:36,000 --> 00:33:38,600 number? I was working with someone who 705 00:33:38,600 --> 00:33:40,200 said look when I reach 100 million dollars. 706 00:33:40,200 --> 00:33:45,300 I'll be so much happier because I'll I'll be able to do XY and z 707 00:33:45,300 --> 00:33:47,800 and I said, two things first. I've got well over $100. 708 00:33:47,800 --> 00:33:49,300 My mother happy, right? Okay. 709 00:33:49,500 --> 00:33:52,200 I'm still just as unhappy as I was before, you know? 710 00:33:52,700 --> 00:33:55,900 Now, I want a billion even though it doesn't stop, right? 711 00:33:56,000 --> 00:34:00,700 Just just know that, your Chute of mole will make you will never 712 00:34:00,700 --> 00:34:02,300 make you happy. Secondly. 713 00:34:02,300 --> 00:34:04,300 Why are you waiting? Here's what you do? 714 00:34:04,300 --> 00:34:08,699 Okay, and this is advice for anyone who's waiting till they 715 00:34:08,699 --> 00:34:11,000 reach a certain Milestone before they do something. 716 00:34:11,300 --> 00:34:15,000 You know, here's what you do. Okay, whatever income you have 717 00:34:15,000 --> 00:34:18,500 now just take 1% of that income and put it in the countinue. 718 00:34:18,500 --> 00:34:21,699 If we are parrots, even if you're making only a thousand 719 00:34:21,699 --> 00:34:24,699 dollars a month, in extra income, right? 720 00:34:24,699 --> 00:34:28,300 Take 10 bucks and put it in that account and don't touch it. 721 00:34:28,400 --> 00:34:31,000 Okay, right. Take another one percent for 722 00:34:31,000 --> 00:34:33,600 other causes or whatever it is. You're saving up for and put 723 00:34:33,600 --> 00:34:35,600 another 1% there. Just just keep the number 724 00:34:35,600 --> 00:34:36,800 smaller one percent. Okay. 725 00:34:37,199 --> 00:34:42,000 I'm glad you obsessively measure and you're like, hey last month 726 00:34:42,000 --> 00:34:45,500 after ten bucks it I'm getting closer to his this Noble goal, 727 00:34:45,500 --> 00:34:48,800 helping my parents. Fire, I'm just making this 728 00:34:48,800 --> 00:34:51,199 example up. There could be so many right 729 00:34:51,300 --> 00:34:52,300 now. It's 11 bucks. 730 00:34:52,300 --> 00:34:54,000 Now. It's 12 bucks before, you know 731 00:34:54,000 --> 00:34:55,900 it Wonder there's a million bucks in that account and you're 732 00:34:55,900 --> 00:34:57,800 worth a hundred million dollars, but you're a hundred times 733 00:34:57,800 --> 00:35:02,400 happier because you enjoy the process and you have your folks. 734 00:35:03,200 --> 00:35:07,500 There's no traction than doing something than saying, you're 735 00:35:07,500 --> 00:35:09,200 going to do it. I want to make a hundred million 736 00:35:09,200 --> 00:35:11,300 dollars liquid. I'm then going to go with 737 00:35:11,300 --> 00:35:13,100 million dollars to here and there, and I'm just start doing 738 00:35:13,100 --> 00:35:15,200 it now, man. Just out buying it, and it will 739 00:35:15,200 --> 00:35:17,000 eventually happen in your life. Enjoy the process. 740 00:35:17,000 --> 00:35:21,900 So that's why I think advice that is actionable and it's just 741 00:35:21,900 --> 00:35:24,600 amazing what you can do. Once once that once that's in 742 00:35:24,600 --> 00:35:26,100 place. I did that to believe. 743 00:35:26,100 --> 00:35:28,100 No one's amazing. Like, okay, this is growing. 744 00:35:28,100 --> 00:35:29,900 This is growing. What I did do though is I dipped 745 00:35:29,900 --> 00:35:31,700 into my savings a lot. It's like gambling. 746 00:35:31,700 --> 00:35:34,200 When I didn't have much money. I started buying stocks and 747 00:35:34,200 --> 00:35:37,300 trading and I kept losing money and that was really good lesson 748 00:35:37,300 --> 00:35:39,600 for me. Because then once I lost like, 749 00:35:39,600 --> 00:35:43,400 you know, I when I was CEO of the company, eventually I was 750 00:35:43,400 --> 00:35:45,800 making hundreds thousands in salary, right, but I was only 751 00:35:45,800 --> 00:35:48,200 seven weeks. You 200k right here. 752 00:35:48,200 --> 00:35:50,300 I'd be like I'm going Dustin public stocks because I want to 753 00:35:50,300 --> 00:35:52,000 make more money and I'd lose like everything. 754 00:35:52,200 --> 00:35:56,300 Of course, good lesson because later on we had more great. 755 00:35:56,600 --> 00:35:59,600 Your last like the screw-ups if anyone especially there's a lot 756 00:35:59,600 --> 00:36:00,800 of investors are listening to this. 757 00:36:00,800 --> 00:36:02,400 They're going to make mistakes, right? 758 00:36:02,400 --> 00:36:05,300 It will probably come back from nothing after investing losing. 759 00:36:05,300 --> 00:36:08,700 Its very, very depressing. When you work for a long time, 760 00:36:08,700 --> 00:36:12,000 like a few years, you save this and you can blow it and like a 761 00:36:12,000 --> 00:36:16,500 trade seriously. It's your backpack and Guys, 762 00:36:16,500 --> 00:36:19,000 next time, I'm not going to make the same mistakes and also, this 763 00:36:19,000 --> 00:36:21,400 was actually a really powerful Learning lesson. 764 00:36:21,400 --> 00:36:23,800 Because when I have more wealth, when I have a thousand times 765 00:36:23,800 --> 00:36:27,500 more often, this I will not make the same mistake and I will only 766 00:36:27,500 --> 00:36:30,500 lose the fraction, you know, now I love that. 767 00:36:30,500 --> 00:36:32,700 So, you're basically setting people creatures of habit, 768 00:36:32,700 --> 00:36:35,400 right? So by doing that 1% or 2% or 769 00:36:35,408 --> 00:36:38,900 whatever number you want, you're creating positive winning habits 770 00:36:39,300 --> 00:36:42,200 and you're doing something right now to plan for the future. 771 00:36:42,200 --> 00:36:44,300 So when the future comes almost like the slight Edge. 772 00:36:44,300 --> 00:36:46,700 If you familiar with that book, it just take a little Little bit 773 00:36:46,700 --> 00:36:49,300 every single time over time. It just you just work and it 774 00:36:49,300 --> 00:36:50,900 wins. It's much better than just 775 00:36:50,900 --> 00:36:52,100 saying. Wait until I get a million 776 00:36:52,100 --> 00:36:54,700 dollars or a hundred million or some other arbitrary number that 777 00:36:54,700 --> 00:36:56,300 you just picked randomly out of a hat. 778 00:36:56,400 --> 00:36:58,700 And then once you get there, the number changes like you're 779 00:36:58,700 --> 00:37:00,300 saying because it doesn't make you happy. 780 00:37:00,300 --> 00:37:03,200 It's just material thing and that comes and goes, but that 781 00:37:03,200 --> 00:37:05,600 happiness comes from within. So, okay. 782 00:37:05,900 --> 00:37:07,800 I love this thing. So, I'm sorry, I'm gonna ask you 783 00:37:07,808 --> 00:37:10,300 one more question here because I love picking your brain. 784 00:37:11,200 --> 00:37:13,900 Let's talk about the psychology. Did when you had a shift. 785 00:37:13,900 --> 00:37:15,400 You said you started with nothing like me. 786 00:37:16,300 --> 00:37:17,500 Couldn't eat. I couldn't pay for bills and 787 00:37:17,500 --> 00:37:20,000 dinner and I know exactly how that feels till this day. 788 00:37:20,400 --> 00:37:23,400 And you shifted. You had a bunch, you had a lot 789 00:37:23,400 --> 00:37:26,900 of success and you shifted the mindset. 790 00:37:27,300 --> 00:37:31,500 Can you talk a little about you? A pessimist at the beginning or 791 00:37:31,500 --> 00:37:33,300 will you optimistic at the beginning? 792 00:37:33,400 --> 00:37:37,700 Were you unhappy early on? And now are you happy or are you 793 00:37:37,700 --> 00:37:39,400 still unhappy? Can you speak to that a little 794 00:37:39,400 --> 00:37:43,100 bit and let us know little about your Evolution from a mindset 795 00:37:43,100 --> 00:37:44,600 standpoint and psychological standpoint? 796 00:37:44,600 --> 00:37:48,500 If you don't mind, I think I was wildly optimistic, but I was 797 00:37:48,500 --> 00:37:51,400 easily swayed by other people's opinions because I felt like 798 00:37:51,400 --> 00:37:53,200 they knew something. I didn't know they were wiser 799 00:37:53,200 --> 00:37:57,100 than me. A lot of pessimistic people and 800 00:37:57,300 --> 00:37:58,900 this is the worst thing that can happen. 801 00:37:59,400 --> 00:38:02,300 You have a hunch. You want to follow it. 802 00:38:02,300 --> 00:38:04,600 Someone took you down from that ledge, right? 803 00:38:04,600 --> 00:38:06,900 I think we're wrong. You're going to really resent if 804 00:38:07,700 --> 00:38:10,700 you would have so much more. You should have a lot more 805 00:38:10,700 --> 00:38:13,700 ownership in the decision. When you fail, you were wrong, 806 00:38:13,700 --> 00:38:15,500 you own it. You pick up and you keep 807 00:38:15,500 --> 00:38:17,800 swinging. It's not cool that you didn't 808 00:38:17,800 --> 00:38:20,000 strain because someone else told you not to follow your God. 809 00:38:20,000 --> 00:38:23,700 So, I started off very optimistic, but I was easily 810 00:38:23,700 --> 00:38:27,400 swayed by the people whose views and opinions when I became 811 00:38:27,400 --> 00:38:30,500 stubborn and I went to the other Spectrum where I don't listen to 812 00:38:30,500 --> 00:38:33,000 anyone and I built my company like that, right? 813 00:38:33,400 --> 00:38:39,000 And that is you're still optimistic, but you just don't 814 00:38:39,000 --> 00:38:41,300 listen to other people. Sounds like, you know, and you 815 00:38:41,300 --> 00:38:44,000 look at this, this pattern people that are in a high tech 816 00:38:44,000 --> 00:38:46,100 company. Look at people like Elon Musk. 817 00:38:46,200 --> 00:38:50,100 Those that we crazy things and they you know, it is the listen 818 00:38:50,100 --> 00:38:53,100 really feels. That works very well when you 819 00:38:53,100 --> 00:38:56,900 are the king and you know, short Empire and you run everything 820 00:38:56,900 --> 00:39:00,100 but it doesn't work very well. Once you're not the king 821 00:39:00,100 --> 00:39:01,500 anymore. It's not your Empire and you're 822 00:39:01,500 --> 00:39:04,600 just managing money. Now at that point you really 823 00:39:04,600 --> 00:39:07,000 need experts and you need you you need to remain optimistic, 824 00:39:07,000 --> 00:39:12,200 but you need to be balanced. And so really, there are certain 825 00:39:12,200 --> 00:39:15,200 times in your life where you need a certain mindset and you 826 00:39:15,200 --> 00:39:17,900 can't try to have this. This one fits all approach. 827 00:39:17,900 --> 00:39:21,800 I'm not here to say to your listeners be balanced, right? 828 00:39:21,800 --> 00:39:24,100 And everything objectively. No, do not. 829 00:39:25,500 --> 00:39:28,000 Look at where you are in your journey and decide. 830 00:39:28,100 --> 00:39:30,300 If I don't do this, while I resent it. 831 00:39:30,600 --> 00:39:33,300 I think I want to do this and I want ownership in this decision, 832 00:39:33,300 --> 00:39:35,600 and I'm playing a game here, right? 833 00:39:36,700 --> 00:39:39,600 Who knows what's going to happen, but I got to swing, so 834 00:39:39,800 --> 00:39:44,600 decide what the strategy needs to be for this particular round 835 00:39:45,000 --> 00:39:48,200 or stage that you're in. The stage I'm in. 836 00:39:48,200 --> 00:39:49,800 Now. I absolutely need to listen to 837 00:39:49,800 --> 00:39:52,600 others because when you have a lot of money you can easily blow 838 00:39:52,600 --> 00:39:54,700 it. Oh, yeah, so you need God rails 839 00:39:54,700 --> 00:39:56,100 for yourself. Like I have an investment 840 00:39:56,100 --> 00:39:58,300 committee for my own family office. 841 00:39:58,300 --> 00:40:02,200 I have my closest trusted advisors and I will make sure 842 00:40:02,200 --> 00:40:04,000 that I try to stay true to my portfolio. 843 00:40:04,000 --> 00:40:08,800 Allocation. I was just I'm someone who loves 844 00:40:08,800 --> 00:40:10,300 to double down on things when they work. 845 00:40:10,300 --> 00:40:12,500 I mean I was a founder and unfortunately when you have a 846 00:40:12,508 --> 00:40:15,800 hundred percent of your net worth and you know stock and 847 00:40:15,800 --> 00:40:18,400 when you've been Broke as hell. You never want to go back there, 848 00:40:18,400 --> 00:40:20,200 but you're not uncomfortable anymore. 849 00:40:20,200 --> 00:40:23,000 You're like I can do a stress. I can't believe this, right? 850 00:40:23,200 --> 00:40:27,000 I can I can imagine myself wanting to keep investing in if 851 00:40:27,000 --> 00:40:29,600 I do another company to put like a hundred million dollars into 852 00:40:29,600 --> 00:40:30,300 it. Right? 853 00:40:30,800 --> 00:40:35,200 How many Reckless instead, you know, I can fund it to a point 854 00:40:35,200 --> 00:40:37,100 but no more than a certain percent of my net worth and then 855 00:40:37,100 --> 00:40:40,700 I want to bring another people's money, of course and very 856 00:40:40,700 --> 00:40:42,600 successful. People actually don't just put 857 00:40:42,600 --> 00:40:44,700 their money and they bring other people's money on top as 858 00:40:44,700 --> 00:40:48,200 Leverage. Humming a money manager means 859 00:40:48,200 --> 00:40:50,500 you put some of your own skin in the game, but you're bringing 860 00:40:50,500 --> 00:40:52,500 leverage with others, you know, just bringing other people's 861 00:40:52,500 --> 00:40:54,800 money, you're bringing in their expertise, their advice. 862 00:40:55,000 --> 00:40:58,300 This doesn't apply to a company. It could be like, you know, 863 00:40:58,300 --> 00:41:00,800 invest in real estate. And I raise money from other 864 00:41:00,800 --> 00:41:04,200 people, too. I raise money from Brokers from 865 00:41:04,200 --> 00:41:06,900 other, you know, real estate people from other other high net 866 00:41:06,900 --> 00:41:09,000 with people. This is a network of people that 867 00:41:09,000 --> 00:41:15,100 can help me be better to. So that's also another mindset 868 00:41:15,100 --> 00:41:17,600 shift. But when you do that, you know, 869 00:41:17,600 --> 00:41:20,600 you have to be willing to take advice. 870 00:41:20,800 --> 00:41:23,100 And also when you manage other people's money, you have to 871 00:41:23,100 --> 00:41:24,900 manage it differently than you manage your own money. 872 00:41:24,900 --> 00:41:29,000 And I know it's weird to say that it's true because some 873 00:41:29,000 --> 00:41:32,200 people say, well, why you should manage your money or other 874 00:41:32,200 --> 00:41:32,900 people's money. Exactly. 875 00:41:32,900 --> 00:41:35,900 Like your own right there. Saying no food for listeners. 876 00:41:35,900 --> 00:41:38,000 Who can't see you on video here, right? 877 00:41:38,200 --> 00:41:41,800 Oh, your lip syncing that. I'm okay, losing my money. 878 00:41:41,800 --> 00:41:43,700 I'm not okay, with using someone else's money. 879 00:41:43,900 --> 00:41:46,000 Unfortunately, that means you're not willing to take as many 880 00:41:46,000 --> 00:41:49,700 risks. I frankly, I just cannot I 881 00:41:49,700 --> 00:41:52,400 cannot remember when I raised 25 million dollars in venture 882 00:41:52,400 --> 00:41:56,300 capital. Is it screwed up my psychology 883 00:41:56,300 --> 00:41:58,400 when I raised my first friends and family around hundreds of 884 00:41:58,408 --> 00:42:00,800 thousands of dollars from friends and family, not having 885 00:42:00,800 --> 00:42:02,500 those tens of thousands dollars actually. 886 00:42:02,500 --> 00:42:06,100 Right, at the beginning. I couldn't sleep. 887 00:42:06,300 --> 00:42:07,500 It's like, oh my God. What if I fail? 888 00:42:07,500 --> 00:42:09,500 This is a lot of money for that person, right? 889 00:42:09,500 --> 00:42:13,800 So and I know like, when you're taking money from people, like 890 00:42:13,800 --> 00:42:16,100 you've got to realize you're just part of the diversity. 891 00:42:16,200 --> 00:42:18,400 Suffocation. They want you to take risk. 892 00:42:18,500 --> 00:42:20,100 I still have a really hard time with that. 893 00:42:20,100 --> 00:42:23,500 No, I don't want a fight. It's a lot of Burden management, 894 00:42:23,500 --> 00:42:25,200 people's money. Other people are like that. 895 00:42:25,200 --> 00:42:27,400 Other people have it, and take your money and go make crazy 896 00:42:27,400 --> 00:42:29,500 bets me. I don't know. 897 00:42:29,500 --> 00:42:31,600 It's the way I am, is probably a weakness, doesn't make you the 898 00:42:31,600 --> 00:42:35,900 best money manager, but I have integrity and I would rather 899 00:42:35,900 --> 00:42:39,000 lose my money and someone else I fully understand that and I 900 00:42:39,000 --> 00:42:41,300 smell what you cook in there. 100%. 901 00:42:41,600 --> 00:42:44,000 Well, Zane is have been absolutely fantastic. 902 00:42:44,100 --> 00:42:47,000 I can't thank you enough. This has been ton of light of 903 00:42:47,000 --> 00:42:51,900 Timeless lessons and and a ton of advice that people can watch 904 00:42:51,900 --> 00:42:54,000 and re-watch and benefit from a tremendously. 905 00:42:54,000 --> 00:42:56,100 So thank you kindly for coming on the show, and hopefully we'll 906 00:42:56,107 --> 00:42:58,600 have you back on again soon. Great. 907 00:42:58,600 --> 00:43:00,700 Thank you for having me on to Thanksgiving.