Playing to Win - 041 - @George Gammon

00:00:00.000 live and we're live there we go yeah what's up guys uh welcome george how you doing bro

00:00:06.500 i'm doing real well i sure appreciate you having me on rich i'm a huge fan of the show

00:00:11.380 and obviously i'm a big fan of uh your content and rollo's content so i'm really happy to be

00:00:18.740 here it's an honor to be on the broadcast with you awesome so um some guys don't know who you

00:00:26.060 are and um you know you're a car guy you're a red pill economist you i mean you know a lot about

00:00:33.060 the ladies too you've got some interesting friends like robert kiyosaki you run a conference i mean

00:00:37.900 i haven't seen it yet but i've heard a lot of stories about it but um i'm i'm gonna start from

00:00:43.420 the get-go here and just say guys you want to go subscribe to his channel so it's hyperlinked in

00:00:47.300 the title of the video um but what's like your batman origin story like what like what bat cave

00:00:52.920 did you come out of to create this like red pill economist supercar driving like capitalist dude

00:00:59.740 that's a good question i just uh you know i just out of college i i just was like well let's just

00:01:08.740 start a business and i uh i tried to start a a t-shirt business because it was the only thing i could

00:01:14.440 kind of think to do and at the time i was living in vegas and um so i i i didn't know anything about

00:01:23.660 it but i'm like well i'll just set this up but i need a gig that i can work nights uh so i can

00:01:28.600 allocate the days to kind of building the little t-shirt business and so i got a gig working at the

00:01:34.060 golden nugget uh valet in fact at the golden nugget uh down in in uh in vegas so i was working

00:01:41.260 graveyard four graveyards um every uh week so i oh i was in like my mid-20s something like that

00:01:51.280 okay yeah so you had a t-shirt business in vegas yeah i mean it didn't go anywhere i lost money but

00:01:57.480 that was the the first uh kind of trial balloon and then i'm asking you a question about like

00:02:02.340 moving physical products because i always get like people always ask me business questions they

00:02:07.120 have a business idea i've had people do one-on-one consults with me with you know physical product

00:02:12.280 businesses often like what's your take on moving t-shirts it doesn't matter what it is you know

00:02:16.840 t-shirts trick kits nutraceuticals like it's a waste of time yeah now now it is you got to keep in mind

00:02:24.040 this was back in the 90s and they're a lot slimmer now yeah you you just you you didn't have the uh

00:02:31.400 the opportunity with digital products that you have now i mean uh what we do or what i do on youtube

00:02:39.520 is a great example that you know i just started uh the rebel capitalist show podcast uh at the

00:02:45.840 beginning of 2020 and i started the george gammon youtube channel at in the middle latter stages of

00:02:52.040 2019 and you know you grow it to a brand where now you can sell at a live event with 700 uh attendees or

00:03:01.200 i've got a membership program called rebel capitalist pro uh we've got over 800 uh subscribers for that

00:03:08.980 and that's just an opportunity that was not there in the mid 90s when i got to the game even in the

00:03:15.600 early 2000s when i kind of figured out what not to do uh by having failed so many times and then i started

00:03:24.360 to to make a substantial amount of money uh with the entrepreneurial ventures but even back then

00:03:30.980 you know you kind of had to have a brick and mortar location i remember uh the first business that i

00:03:36.560 started that did really well i had about a hundred grand saved up and i borrowed 400 because you needed

00:03:42.440 500 to start the business and have enough runway to where you could start having positive cash flow

00:03:47.860 and uh you know now and then i grew that business to a point where it was making

00:03:54.960 you know maybe a million dollars a year something like that um but the thing is now you can create

00:04:04.420 that same type of income with 500 bucks with a thousand and it's true it's never been easier to

00:04:12.600 make money it never has been now now that said the barrier of entry is a lot lower but but if you have

00:04:19.480 something that uh makes what you do unique and if you have an edge then it's going to be tough for

00:04:26.420 people to compete with you because they can't replicate what you do and that is king right i

00:04:31.700 mean like you probably see people in your space you know when you talk about economics um that just

00:04:37.260 haven't got a clue what they're doing and it's like you know like did you even have a day job anywhere

00:04:40.820 close to this space at one point or is this just shit you're making up because you read an article

00:04:44.260 don't have a clue what they're doing rich so the people in the central banks don't have a clue

00:04:48.760 so yeah i want to talk about your views on economy too but hey let me ask this question because i asked

00:04:54.240 aaron cleary this you know as well when i was chatting with him on my live and uh do you think

00:04:59.560 it's easier to find that one true love like that one kind of perfect girl to be a partner in your life

00:05:05.920 or is it easier to make a business that throws off a million dollars a year in revenue

00:05:10.160 well i don't know what's easiest i know what path you should take that that's easy so it's a two-part

00:05:19.320 question now so which one do you think is easier making a million dollars a year or the girl and

00:05:24.560 which path should you take you got to make the million dollars because then you'll get both right

00:05:29.320 and and if if you're not out there uh trying to make the million dollars then even if you get hooked

00:05:37.540 up with a great gal you're you're gonna lose her um and i'm not saying that it's all about money

00:05:43.760 that's not what i'm saying there but what i am saying is that guys have to have that ambition

00:05:48.580 how did you get red pilled by the way well like was it a girl was it uh no no like was it just a

00:05:56.600 sequence of events no no red pill like what brought you to rollo stuff and seeing my stuff

00:06:00.840 well i've been single since college yeah and i i've you know you want to term use the term spinning

00:06:07.240 plates or whatever you know uh and and even prior to that even when i was in grade school and high

00:06:13.780 school i i that was never a problem for me as far as uh we'll say getting a date right you know

00:06:22.100 that's never really an issue and then uh i played a lot of sports and i was athletic and uh i just um

00:06:29.820 you know it's just let's we'll just leave it at that it was never an issue okay and then i started

00:06:34.240 to make uh quite a bit of money and uh so then it became even easier uh than it was before and

00:06:41.860 before it was very very how old were you when you made your first million i was a self-made millionaire

00:06:47.060 at 34 cool and so uh and you're how old now 48 oh shit you're almost same age as me man

00:06:55.800 you're like you're exactly the same age as me yeah so uh i i so it was never an issue and um

00:07:05.140 what was fascinating this must have been 2007 or something like that i never watched tv but i

00:07:11.840 stumbled across mystery show remember uh method no well his show first i stumbled across his show

00:07:19.260 remember uh the one where he walked around the platforms with the painted fingernails and the big

00:07:23.440 hat and all that yeah and he'd show that the the the nerdy kids you know what they're doing wrong

00:07:28.680 and stuff what the heck was it called the lovable loser or something i don't know what it was but

00:07:34.200 anyway i saw that show that he had on vh1 and i was immediately uh interested by it you know i'm like

00:07:40.640 well this is kind of a fascinating concept and and then i i started to listen to the psychology

00:07:46.740 behind what he was talking about and i'm like wait a minute this this makes sense because this

00:07:54.200 aligns with all of the experience i have had with women up to that point and not just me but my

00:08:02.820 buddies in college you know you got some buddies in college that it's weird it's like you know it's

00:08:08.440 like seeing the code in the matrix like you see how everything works you know yeah instead of seeing

00:08:12.820 like the summary you see like the full equation to get to the summary yeah and and when i saw what

00:08:18.300 he was teaching the the nerdy kids or whatever and you know how that that was all the guys that i knew

00:08:25.040 in college and in high school for that matter that just had women just flock to them just naturally

00:08:30.300 that's how they were that was just their normal personality you know when he was talking about

00:08:36.500 nagging or something like that or it's just that was just the way they naturally were they they came

00:08:42.220 from a mindset i don't know what's first the chicken or the egg but they would come from a

00:08:46.380 mindset of total abundance when it comes to women uh and and instead of this scarcity mindset and

00:08:54.360 because they always felt as though there was just abundance and they always had an abundance

00:08:59.060 when they were uh texting you know back in the day paging or whatever you know when they were

00:09:03.920 talking to the gals around them that really dates you when you talk about paging so for those of you

00:09:08.600 that are watching this that are in like the core of my demographic they've probably never heard of

00:09:12.220 pages we used to carry around these little boxes on our belt and they would buzz with a number on top

00:09:17.000 of it and it was usually you know somebody was calling you to call you back at that number so

00:09:21.140 they could get you take your voicemail yeah yeah yeah yeah so so but what mystery was talking about

00:09:28.380 i'm like that's it all the guys that i know where this came very easy this is just how they are

00:09:33.580 naturally so it kind of went from a subconscious thing to a conscious thing and then he just kind

00:09:38.880 of made it a science but that's what really uh fascinated me and then but you know the key

00:09:45.560 component that he was missing is he obviously tells you you know how to interact uh when you first

00:09:52.240 meet a gal and that's going to be beneficial if you don't know what you're doing um but then once

00:09:57.980 you start to date the gal you know that's when you have to read rollo stuff because if you just have

00:10:04.980 mystery stuff let's say if you just have game without the red pill stuff you're you're you're

00:10:11.460 you're still not gonna you're gonna screw up and cause problems yeah you've never been married you said

00:10:16.980 you've never had a long-term relationship so you've mostly been a lifetime plate spinner i mean did you ever

00:10:20.900 get like what stopped you from inviting a woman into your life on a more intimate basis

00:10:25.480 i think there's a lot of things first and foremost when i uh got out of college

00:10:33.860 i i i knew that that well you know you don't have the conscious thought i was just hardcore

00:10:41.420 entrepreneur that's all i wanted to do is make money i i just really the did you have an icon that

00:10:46.800 you follow like somebody that inspired you what's that did you have an icon that you follow like

00:10:51.100 somebody that inspired you to become an entrepreneur like i want to be that guy

00:10:53.820 no no i i just i wanted to make money and i wanted to figure out ways to make money and um you know

00:11:02.200 once i got my claws into something uh i i i've been like this my whole life i get very ocd

00:11:08.920 yeah and so um it can be good it can be bad but i i'd get into a business and i just get tunnel vision

00:11:15.740 where i wouldn't date i mean i you know you'd go out with gals here and there but i it wasn't even

00:11:22.260 part of my conscious thought for uh a long periods of time when i was just hyper focused on uh building

00:11:29.260 a business as an example so um you know i there's there's a lot of things that go into it i'm i've

00:11:36.140 always been very independent um and you've always been getting in the way of that goal like they

00:11:41.180 distract you from it or take you away from it or well i think you can definitely uh allow that to

00:11:47.720 happen where uh gals can be i think from 99 of guys out there they're a huge distraction because

00:11:54.900 they allocate so much time and energy into pursuing women when if they would just take that same time

00:12:00.780 and energy into pursuing their business or pursuing excellence like you say the women would fall into

00:12:06.460 place see that's what guys don't understand they think that they actively have to pursue women and

00:12:12.380 that's it's not the case if you pursue other things and if you pursue personal growth and professional

00:12:18.460 growth then that you don't have to pursue the women they'll pursue you it's four words chase excellence

00:12:25.840 not women yeah that's all you need to know i mean if you can do that well and you know when women start

00:12:33.620 coming into your life you know you don't screw it up by being a total simp or like a plugged in beta

00:12:37.440 um it's not hard and it's fun yeah yeah and and the magic to what you just said is is not only

00:12:45.640 if you're single but if you are in a relationship it's just as applicable if not more so because

00:12:53.160 there's a lot of guys with a lot of money out there and i'm sure you see a lot of them too that

00:12:56.440 have been very successful they put a dent in the universe they've built some kind of world-class

00:13:00.380 product or service they've changed people's lives you know things have improved and they

00:13:03.720 have a massive store of value of it with aka money you know as a result of that but they just like

00:13:09.460 suck so bad with women man like they've been through multiple marriages they have just women

00:13:14.340 that they just bend the knee to completely even though they're like champions of their craft

00:13:18.620 i'm not going to mention any names but but you and i both know uh people that i'm very very good

00:13:26.820 friends with that would that would admit that they fall into that category to a great degree

00:13:33.480 happens to a lot of men man and i like i wish i could talk to more of those guys right like i talked

00:13:38.540 to a lot of dudes but i but those guys would have the biggest effect because of what they do in their

00:13:43.480 lives with their businesses yeah it's it's unbelievable that they can um be so uh i don't know if alpha is the

00:13:51.680 right word in their business life yet be so beta in their personal life yeah it's crazy yeah i've

00:13:58.940 never understood that that that that is i think uh the majority of guys that are like you know because

00:14:05.100 the majority of the guys have this um idea of what women want and it's just completely skewed uh

00:14:14.820 for whatever reason they they think that well women want you to just constantly compliment them and

00:14:21.200 constantly buy them chocolates and roses and constantly just to defer to them to every single

00:14:27.980 decision you make and what they don't understand yeah is that's that's not that's not the way it

00:14:34.820 works that's not what they want and i think even gals who are honest you know if if you say hey would

00:14:41.900 would you want a guy who behaves this way or this way they'd say no no that other if they're too sappy

00:14:48.580 if they're too over the top it's just a complete turnoff but it's not to say that you you have to

00:14:53.840 be a jerk or you have to be an asshole that that's that's really and see guys take it too far and then

00:15:00.220 they become a jerk you've got to be this even uh kind of right in the middle i think and uh you know

00:15:06.660 not to be cliche but if you look at like a james bond type figure how you know you're in control

00:15:12.960 you've you maintain uh frame to use your term but at the same time you're a gentleman when you're in

00:15:19.340 the presence of that gal you're an extreme extreme gentleman but you're you're calling the shots you

00:15:25.660 know and and and you are um someone that uh any woman would look up to and actually respect and i think

00:15:35.180 women respect ambition and uh they also respect a guy that's a decision maker um that is a leader

00:15:43.420 of other men that can solve problems and uh that can take control of a situation while at the same

00:15:51.360 time someone that's going to treat them well you know yeah and guys just James Bond is like the

00:15:55.760 perfect avatar for that i think you really you know hit the nail on the head because i because i've talked

00:15:59.800 to a lot of guys now privately that are that are seasoned gentlemen and i think the james bond avatar

00:16:05.300 is probably the best way to accurately define that you want to aim for a target aim for that it's not a

00:16:12.520 bad target to aim for yeah it's just you're you're in control of of you you you know what speaking of

00:16:19.980 that target control but yet you're a gentleman at the same time you're not you're not a prick you're

00:16:24.440 not arrogant you're not you know yeah and you know speaking of that target you know um

00:16:29.440 james bond happened to be a car guy he had a thing for aston martin's yeah yeah i had a napkin back

00:16:35.180 in uh i think it's 2011 or something and that's just a piece of garbage it's a db9 and it was uh you

00:16:42.720 know it's fun to look at uh yeah yeah i had the v12 i came i came this close to buying a 2008 dbs you

00:16:51.420 know the one from casino royale even in like the same colors you know from the film with like that

00:16:56.140 oh it was gorgeous car gorgeous car it was like 120 grand when i was looking at it they're like

00:17:01.820 well over 220 000 like some of these things can really pump up in value i yeah yeah they can't

00:17:08.500 well especially some of the the right cars you know they're really a store of value and they can

00:17:14.140 definitely appreciate that's for sure do you have any cars as like investments right now because i mean

00:17:18.920 i have a bunch of trucks i talk about that on my channel all the time mid 90s uh and late 90s

00:17:25.040 land rovers no ford uh f250s and 350s with the 73 diesel okay i i've i've collected a ton of them

00:17:33.800 and man they just they stay really consistent with inflation and and they've appreciated massively

00:17:40.020 over the past uh two or three years those fun to drive like i mean i've driven a couple of big

00:17:44.400 diesel trucks but i always found them just kind of like you know i feel like i should have a trailer

00:17:49.100 on them and towing something yeah i mean it's i don't know that i would buy it because it's fun to

00:17:54.820 drive uh it all depends where you live too like like right now i've got one of them up uh that i'm

00:18:02.220 well i just it's a long story but i've got one here in my garage and i'm in a high-rise condominium

00:18:07.620 building that has valet and all the parking is is underground and it's a big it's a pain in the ass

00:18:14.720 you get it around and stuff and it's it's definitely not the mclaren so i've got to figure out another

00:18:22.540 yeah what's the driver car yeah what's the scoop on mclaren so you got a 570 gt which let me see if i

00:18:30.220 can find a picture because i was actually looking at these two uh and 570 gt and how long you had it

00:18:38.360 just a couple months or so i bought it when i was in miami for my live event and i usually i kind of

00:18:44.820 go in and out of cars maybe once every six months or so i i don't know if i'll still be in the states

00:18:50.220 uh next year we'll see how the world looks but uh i just signed a six-month lease here so i thought

00:18:56.300 it'd be a fun car to have and i figured i could just flip it at barrett at barrett and uh it's a

00:19:02.480 really nice movie looking uh body design and it's got a slightly softer suspension the springs are

00:19:08.860 like 10 softer or something like that but it's got the same powers of 570 so it's a rapid car i mean

00:19:13.700 i drove the 570 yeah it's it's really really quick um it's there's some quality issues yeah quality

00:19:22.420 here um we were talking about these you know before we went live and i was talking to you about

00:19:26.680 the elva which is this thing over here a friend of mine just bought this thing wow windshield there's

00:19:33.920 no roof to it you have to wear helmets uh depending on how you spec it and this one has a livery paint

00:19:39.780 job like this is not stickers in the car like this is painted that way from the factory yeah these

00:19:44.000 things can be upwards of like 1.5 2 million 2 and a half million you know depending on how how much

00:19:49.080 you want to spend on it yeah see the thing is is i always think about okay if i'm going to drop

00:19:55.320 that's the lt i was telling you about earlier too so that's a seven six seven six five lt

00:19:59.180 yeah yeah i mean they're fantastic cars and just they're just wicked fast oh yeah i just think the

00:20:06.180 um you know it i don't want to say that the quality is the construction quality is poor but it's just

00:20:13.180 not as solid as like a finish like we were talking before we went live you know there's like trim pieces

00:20:19.340 that you kind of push and they like wobble a little bit you know where if you get a mercedes as an

00:20:24.640 example everything robots built it yeah it's just going to be solid and i had a giardo back in the day

00:20:31.940 and um you know that was fantastic there it was just really put together but basically you're buying

00:20:39.060 uh an audi with uh a v10 lamborghini engine in it that's what the giardo was and so um you know

00:20:46.740 that engine was was um hand built by porsche that contract was sent to porsche to build the engine i

00:20:51.940 didn't know that yeah for the r8 and for the um guillardo generation i think leading up to the

00:20:57.600 hurricane i'm not sure if they still do it for that but but for the r8s and the um guillardos at the

00:21:02.960 time they were hand built by porsche great engines i mean i've got an r8 so i think uh you already

00:21:08.080 know this and most of my viewers i mean i don't post as many car videos as i used to but that r8

00:21:12.400 is also a store of value right yeah that's really been a store of value yeah like the v10s with the

00:21:17.940 manuals i saw one that sold on bring a trailer the other day for 270 000 for a 2012 yeah any any manual

00:21:25.640 i think if you get like a manual hellcat or something like that i think it it would be the

00:21:30.620 same thing if you hold on to it uh for a few years i had an r8 as well but i had the back prior

00:21:36.340 uh to the v10 i had a v8 v8 yeah yeah i drove one of those and i found it wasn't that

00:21:41.080 just wasn't quick enough but the mclarens are off the chart eh like that it's a freaking spaceship

00:21:47.360 it's it's especially once you get into the power band when the turbos kick in i mean so sick

00:21:52.700 rip your face off fast i mean it almost driven like this 720 or a 765 lt have you driven anything

00:21:59.720 that that that active air you know with the wing you know the back of it flips up like that

00:22:04.480 that thing makes a big difference man there's times where you're where you're letting it rip

00:22:09.660 and you and you see a corner come in and i look down at the speed i'm like are you fucking kidding

00:22:14.200 me like i'm going that fast yeah yeah yeah i'm on the brakes and it's like somebody throws an anchor

00:22:19.660 out the back and it's dragging down the road behind you because the wings up the carbon ceramics and

00:22:24.320 you're just doing this shit fucking shaking all over the place holding on to the wheel before you get

00:22:28.280 into the corner yeah i'm telling you man it's the most fun you can have you know with your clothes on

00:22:32.200 people don't understand you know when i talk to somebody and they're not a car guy they're like

00:22:36.140 i just can't be bothered i'm just like really like oh no just give them a ride in the mccarran that's

00:22:41.180 all you got to do just give them one ride in that and they're like yeah they always say oh why would

00:22:45.820 you even want that you know the speed limit's 55 or whatever you're like listen let me give you a

00:22:50.720 real fast ride around the block and you will know within seconds why the the you know why i bought

00:22:56.320 this car yeah yeah they're crazy um let's talk about your channel and the um whole red pill economic

00:23:03.020 approach and the way that you know the government's running things that you know i've seen hashtag and

00:23:06.920 the fed you know around quite a lot on on some merch and you know stuff on your channel so like

00:23:12.640 what's your philosophy right now on the state of the western economy is is it good is it bad is it

00:23:20.160 getting better is it getting worse like just overall from 30 000 feet well fundamentally it's in

00:23:26.220 very bad shape and it's it's very it's very similar to a heroin addict in the sense that if you give the

00:23:32.840 heroin addict enough heroin sure they can function they might be able to walk around they might be able

00:23:38.520 to go to the grocery store um but under you know underneath the skin they're incredibly unhealthy

00:23:45.740 and uh you know maybe very near death uh as it's all about that heroin and we've gotten to the same

00:23:53.340 point especially in the united states uh with first quantitative easing and then with this government

00:24:00.500 uh these government deficits that they've uh now you know five trillion dollars for heaven's sakes in

00:24:06.900 2020 alone what what what instrument in the economy would be the heroin because i mean we know the addict

00:24:13.900 is the u.s right but what is the actual instrument the dollars they're creating out of thin air

00:24:18.800 printing out dollars yeah we want to say monetary heroin it's cheap money it's it's it's them sending

00:24:24.460 out stimulus checks uh to everyone for staying at home and not going to work uh this is uh this is a

00:24:32.160 monetary drug uh whether you want to call it ubi a welfare state it's more and more government

00:24:38.160 fiscal spending i'm actually bumping out monthly to an individual in the u.s right now

00:24:42.460 it depends on which individuals you're referring to but i mean they just every single month it's

00:24:49.880 something else rich they just came out with a child tax credit which is a five five we've had

00:24:56.180 that here for a long time they probably ripped that off our system yeah and it but it's not a tax

00:25:00.640 i mean they say it's tax credit but they're just sending people checks directly in the mail um

00:25:05.320 here in the united states the average income is up almost 20 percent

00:25:12.460 from where it was in 2019 uh this was the this was a going back to january february of this year

00:25:19.660 so you say how on earth can that be when the economy was locked down when you have way higher

00:25:27.060 unemployment you have a lot of people that just refuse to go back to work so how is that even

00:25:33.020 possible well it's possible when the government just continues to send people stimulus checks or

00:25:38.620 increase their unemployment benefits or give them these uh you know child tax deductions um and then

00:25:44.860 also too on the uh expense side of the equation you know here we had a rent uh or an eviction moratorium

00:25:52.780 where you couldn't kick people out the landlords couldn't kick people out for not paying rent so you

00:25:57.460 had a lot of people that just said screw it i'm not gonna pay rent so you had landlords carrying the

00:26:02.760 the the the burden of running that home while they had a tenant in it like a basically a squatter

00:26:08.440 not not paying rent and they couldn't do anything about it yeah yeah and then they a lot of them had

00:26:13.760 uh they didn't wouldn't have to pay their mortgage because we had a a mortgage forbearance here as

00:26:19.840 well okay so that moved on to the homeowners too it's some of them if you had a loan with fanny and

00:26:24.900 freddie yeah uh there are some stipulations there but you've got the government coming in and

00:26:30.480 creating all of these economic distortions and what your viewers who might not have uh you know

00:26:35.960 might not be as as nerdy as i am when it comes to economics the thing you just have to understand

00:26:41.080 is that wealth is not a measurement of dollars or of of currency that doesn't matter at all what

00:26:48.580 wealth is is goods and services it's a society's ability to create goods and services and if you want

00:26:55.120 an extreme example just go out to a deserted island with a chest full of a million dollars let's say

00:27:01.740 uh you know how rich are you you're dirt poor because there's there's no goods and services

00:27:07.220 right you've got kindling basically you have something to start fires with

00:27:10.840 yeah it doesn't matter how much cash you have in that sense it wouldn't matter how much gold or

00:27:15.880 bitcoin or anything you have there's no goods and services for heaven's sakes right so when when

00:27:20.780 you look at this government the distortions that they're creating through this deficit spending

00:27:25.040 you just have to ask yourself the question okay is this going to create more goods and services in

00:27:32.140 the future or fewer goods and services and if it creates fewer goods and services then by definition

00:27:38.920 we as a society are becoming more poor and uh i mean let's look at uh our example or or let's use

00:27:48.100 the two of us right my guess is your investment portfolio is larger today as far as the nominal

00:27:56.400 value than it was in 2019 of course yeah for for me my investment portfolio is substantially larger

00:28:04.120 but then you have to ask the question are you richer today or are you poorer so let's say this

00:28:10.960 another way rich cooper do you have access right now in canada to more goods and services

00:28:18.100 than you did in 2019 or fewer goods and services do you have more personal freedom today or less

00:28:26.540 personal freedom today less freedom today definitely less freedom that's right and and then you have

00:28:31.200 access to fewer goods my guess is it's like here in the united states it's far harder to get a

00:28:37.100 reservation at a restaurant it you used to be able to get an uber in two minutes now it takes you 20

00:28:43.420 minutes if you can even get one that's if you're lucky you know try getting a rental car they're

00:28:48.080 just sold out everywhere there's there's far fewer goods and services therefore even if your portfolio

00:28:54.620 is significantly higher even if we're getting more income it doesn't matter we're just getting these

00:28:59.160 green pieces of paper at the end of the day it's about society producing goods and services i was

00:29:05.300 listening to a podcast the other day and uh this uh he's a guy i like a lot his name is simon black he's

00:29:13.800 got a company called sovereign man.com just to give him a shout out but he was talking uh to this gal

00:29:20.720 that grew up in uh soviet russia right and she made a very interesting point that i think kind of goes

00:29:30.140 over a lot of our heads that grew up in the western world because we see you know russia or back in the

00:29:37.340 70s and 80s as being very poor that was a poor country you know but she said that they they it

00:29:44.140 wasn't they everyone had money like that wasn't the issue everybody had money but there was just no stuff

00:29:52.780 to buy so you sit there and you see a line you know you have to wait in line for uh five hours to get a

00:29:59.280 loaf of bread and in the u.s we we associate that with not having enough money but no no that's not

00:30:06.480 the problem the problem is there's no goods and services you see and that's what the united states

00:30:12.820 is doing right now by not only quantitative easing but especially they've kicked it into overdrive

00:30:19.000 with this deficit spending that they that just has gone completely parabolic in 2020 and they'll have

00:30:25.800 to continue to uh maintain that level because it's like the heroin you know once you start taking

00:30:31.740 that level of heroin you've got to take more and more and more to have the same effect but the problem

00:30:37.500 is look like what's that what does the end look like like like how does this end where do you think

00:30:43.960 this is going to go well i mean because being a heroin addict is not a solution to life right like

00:30:49.960 that ends at some point usually quite badly yeah and that's exactly how it's going to end for the

00:30:55.120 u.s economy so you've got you you have to have a deleveraging just like the heroin addict has to

00:31:00.840 get off the drug but that time where they go through the withdrawals is very very difficult and it's

00:31:09.460 extremely painful but you recommend guys do today to sort of prepare for that like is it hedging with

00:31:15.360 real estate gold bitcoin well that's a very broad question i think that you have to you've got to

00:31:22.620 buy correctly you know you've got to buy things when they're cheap you've got to sell them when

00:31:27.260 they're expensive but i think that the the things that just the everyday person can do is make sure

00:31:33.100 you've got some gold and i i like to do what i call a 10 80 10 portfolio so 10 in gold 80 in assets

00:31:41.420 that pay me to own them and then 10 in just speculations where i think there's good asymmetry

00:31:47.980 there bitcoin would would be an example of that and a rental property would be a good example something

00:31:53.180 that pays me to own it but the problem right now is you can't just say well rental property because

00:31:58.320 people go out there and buy it in california or toronto uh as an example and they probably have a

00:32:03.300 negative carry on it well i have a i have a rental property in toronto that i've had for i don't know

00:32:08.680 since 2014 or something like that um so what's your do you have positive cash flow i do because i

00:32:15.420 don't have like i don't owe much on it um but the rents have come down from like 29 50 maybe 3 000

00:32:24.660 a few years ago to about 2600 and the value of the property it it's not moved much i mean it's it's

00:32:33.500 pretty static that you know if anything with inflation it's you know it's probably a losing

00:32:37.640 bet right now as far as value but that might change in a few years i mean people are moving out of

00:32:41.160 cities right that's why there's so many vacancies yeah well here rents are are going up pretty much

00:32:47.620 everywhere but see that that's a good example of where do you live you're in arizona right yeah i'm in

00:32:51.900 arizona right now i mean those were all being six months but i i think it's it's a matter of of the

00:32:57.320 deal you know in the numbers and it's not just a blanket statement now back in 2012 you could have

00:33:03.720 said yeah just buy real estate it's cheap you know uh today you can't do that and you have to

00:33:10.780 understand how to utilize debt because in the united states as an example that's really your asset when

00:33:18.660 you're buying real estate now it shouldn't be but unfortunately it is uh the the debt the 30-year

00:33:24.700 fixed rate mortgage is your asset because if we get substantial inflation which i think we will

00:33:31.360 long term then you're going to be paying that loan back with devalued dollars and if you're paying the

00:33:37.900 loan back with devalued dollars that's a transfer of wealth purchasing power from the lender to the

00:33:44.020 borrower and so i think right now it's the complete opposite that it usually is most of the time

00:33:50.840 in a healthy market the property would be the asset and the the mortgage would be the liability

00:33:57.460 but i think it's flopped to where now the uh liability is the property because you're buying

00:34:03.780 at all-time highs but the asset is the 30-year fixed rate mortgage that's where you're going to

00:34:08.760 make your purchasing power that will compensate you from probably your loss of purchasing power

00:34:12.880 that you'll have with the property and people forget that you can lose purchasing power

00:34:17.720 in real terms but increase in nominal terms so as an example and you know very few people especially

00:34:25.740 real estate because the real estate guys get down in the weeds about the real estate but they forget

00:34:30.360 about macro and so let's say you go out and buy a hundred thousand dollar property and it goes up in

00:34:36.460 nominal price by five percent per year and you say well wow i'm getting rich well not if we've got

00:34:43.180 ten percent inflation you're not because now in real terms you're losing five percent per year

00:34:49.560 compounded so you you take that out let's say eight years at a five percent real loss even though

00:34:58.460 at a five percent nominal gain and now you that that the value of that home and purchasing power has

00:35:04.300 been cut in half and so that's what i why a lot of people don't pay attention to those details though

00:35:09.560 they just look well past them because they because they fall for the marketing crap right like oh you

00:35:13.840 know you're richer than you think you know just go and borrow and we'll throw you in this thing and

00:35:18.500 you're and you'll be wealthy in a few years and most people don't understand like the deep dynamics like

00:35:22.620 like there's a red pill with money like you know there's red pill in relationship like it's it's

00:35:27.500 basically the uncomfortable truth about stuff that's peeled back behind the surface people are very

00:35:32.080 service surface oriented man yeah but i think you hit the nail on the head there and and if you i know

00:35:38.040 that that's kind of a blanket term red pill and it gets way way overused but the concept is the same

00:35:43.700 is that we you know whether it's with relationships um men and women we we've we've been lied to for a

00:35:51.880 long long time uh the the way that they tell you the world works is not the way it works in reality

00:35:58.800 and it's the exact same thing with economics and investing the the way you were told it works

00:36:05.700 that that's completely irrelevant uh you're whistling by the graveyard so to speak and uh if you want

00:36:13.580 the to take that economic or investing red pill it you're going to go through the same process

00:36:19.360 as you went through by taking the red pill and looking at the opposite sex and and and relationships

00:36:25.940 it's going to be a struggle because of how you've been conditioned to view the world and we've been

00:36:32.160 conditioned to view wealth as currency units as pieces of paper and and and that is completely

00:36:39.920 inaccurate just ask venezuelans how wealthy they are because if you look at their nominal wealth

00:36:46.020 they they're the wealth every single person's a trillionaire but but of course they're dirt poor

00:36:52.140 in a currency that has no value that's right that's right so that that and once people start going

00:36:59.160 down that path then they start to um see how things truly are and then that like uh being red

00:37:06.880 pilled in anything else is kind of like having a sixth sense and it's a huge edge massive edge

00:37:11.860 you you said that you're only temporarily there so i take it that you move around a lot like is

00:37:17.740 there a place in the world that you like sort of fancy or you just kind of like go where the wind

00:37:21.880 takes you yeah i like medellin colombia i've been investing in real estate there since 2015 i've got an

00:37:27.740 operation there um the climate's fantastic the people are great uh the food is amazing the cost

00:37:34.120 of living is is it's just i love medellin unfortunately um it's not the place you want

00:37:40.020 to be right now because of the lockdowns and the restriction well it's not the place you want to be

00:37:44.500 if you enjoy personal freedom and liberty oh why are they locked down the country which i well i got

00:37:49.940 stuck in a lockdown there and it was very draconian and uh according to my employees they're still

00:37:56.060 making you wear masks in uh grocery stores and they're kind of haphazard you know they it's the

00:38:02.860 same thing here though right i mean like you can't even sit down in a restaurant today and have a meal

00:38:06.800 i mean you can sit outside on a patio with four people but that's it well see that's why i'm in

00:38:11.660 arizona yeah there's a lot more freedom there in arizona texas because i don't want to put up with

00:38:16.300 that i don't want to put up with that so i'm fortunately i've got the um the resources and

00:38:23.720 the lifestyle to where if if wherever's the most where i'm gonna get the most personal freedom that's

00:38:29.140 where i'm going whether it's what's your take on this whole beer bug thing well i think that initially

00:38:36.140 there you didn't know what the hell was going on so you had to sit there and say okay we need to

00:38:43.300 look at the data we need to look at the r naught value we do that's exactly what i did for the first

00:38:47.280 three months i'm like okay let's see the numbers coming let's see what's going on yeah yeah yeah

00:38:50.640 that's right but i even at the height of my concern and this was way before the normies let's say got

00:38:59.260 concerned i'm talking about january february of 2020 uh not not you know april i was i was concerned

00:39:05.780 then but even back then when i would go on podcasts i'd say listen we need to be concerned with this

00:39:10.940 but the one thing we don't want to do is get the government involved the government needs to allow

00:39:17.820 people to make their own decisions if you want to stay inside you go ahead and stay inside what we

00:39:25.100 don't want is the government coming in and locking people in their own house at gunpoint yeah or taking

00:39:30.980 their businesses away and doing all of these draconian measures because once they you want a big fat

00:39:36.700 red pill on on people and humanity and and society i was watching the show on uh netflix

00:39:43.360 basically about uh psychopath leaders around the world i can't remember what it was called but

00:39:47.600 one of the things i said in it that really stood out is that human beings love being ruled and i was

00:39:53.140 like oh shit i had to like rewind that for 15 seconds and then play it back i'm like he's right

00:39:58.080 people love being ruled like they want a fucking ruler and it's yeah it's just bizarre to me man

00:40:03.640 because i mean like it just doesn't feel right you know what i'm saying like it just doesn't feel

00:40:09.060 right yeah i i look around the world today and um there's there's a lot of opportunity but there's

00:40:17.480 a lot of things to be concerned with and um at some point in time we're gonna have to pay the economic

00:40:25.900 fiddler and um i don't know how much further they can kick the can down the road the problem is

00:40:31.460 you feel like it's you know it's supposed to collapse at some time though right like you're

00:40:35.600 like you know really like it's still going down the road well that there's that saying that the

00:40:40.700 market can remain irrational way longer than you can remain solvent yeah you're right and and and so

00:40:46.880 but see that the thing is though just because they can kick the can down the road doesn't mean that

00:40:52.460 you should bet that way bet as though they're going to be able it's like blackjack you know i when i

00:40:59.000 first started playing blackjack i was doing it to help train my kind of investing mind to think in

00:41:04.520 terms of probabilities so you you sit there and you've got two people at a blackjack table let's

00:41:10.260 say i'm paying with someone who doesn't know what they're doing and they've got a 19 and they're

00:41:13.900 going to hit because they think they're on fire right and i'm like oh no no you don't want to do

00:41:18.340 that that's uh that that's not a good play you want to stay on three twos in the last like 10 seconds

00:41:23.940 yeah and i go oh george you're just being you're fear mongering you know i'm on fire here and let's

00:41:29.940 say they they hit and they get a two you know did they do the right thing or the wrong thing and i

00:41:34.740 would always argue they did the wrong thing uh because if they continue to bet that way they're

00:41:39.580 going to go bust and it's the exact same thing today with buying stocks or certain assets that are

00:41:45.060 in massive massive bubbles that yes the bubble can continue but it doesn't mean that you're making

00:41:51.080 the right investment decision by buying now just because your portfolio goes up doesn't necessarily

00:41:56.940 mean that you did the wrong the right thing uh you could have just gotten lucky you could be a part of

00:42:01.400 a bubble because even if you think you made money in the short term if you continue with that strategy

00:42:06.640 you do not have an edge you have a negative edge and at some point you're going to lose

00:42:11.440 what do you what do you think about cryptocurrency defi and bitcoin specifically

00:42:16.740 well i think that they're very good speculations uh some of them uh some things can be but you have

00:42:25.420 to realize that it's a speculative asset and it's going to be uh very volatile for you know at some

00:42:33.040 point if the whole world is using bitcoin as as global money then yes it won't be as volatile but

00:42:40.000 you got a long way to go to get to that point and i think that people need to really compartmentalize

00:42:45.920 the probabilities of bitcoin going to uh x price let's say your price targets a hundred thousand

00:42:53.940 uh and then the probabilities of bitcoin becoming global money because those are two completely

00:42:59.900 completely separate questions i don't think it's money i feel like it's a store of value i think

00:43:04.240 michael saylor got it right when he called it uh digital real estate well it's it might be digital

00:43:11.240 real estate but it's wildly volatile uh right now so my my point and then how do you how to see the

00:43:18.040 tough thing about bitcoin is uh how do you value it right and i i think that it's it's very difficult

00:43:26.300 to know when it's cheap quote unquote and when it's expensive and that's the very first question that i

00:43:32.300 always ask myself i i never if i could give your audience one piece of advice it's to never worry about

00:43:39.060 the price direction that's the what that's what most people think about first well what's the price

00:43:43.880 going to do don't worry about it just ask yourself if it's cheap or if it's expensive and if it's cheap

00:43:49.080 buy it if it's expensive sell it you're not going to pick all the tops and all the bottoms um but if

00:43:54.960 you continue with that mindset again going back to probabilities that's an edge so how do you determine

00:44:00.360 if bitcoin is cheap uh i don't know but what i try to do is look at the um the market sentiment

00:44:07.320 right so you you see like the google searches just going parabolic when it gets up to let's you know

00:44:15.800 it's just up to 60 000 or whatever its peak was 65 000 something like that and then you see every

00:44:21.420 single person on uh cnbc talking about it and you know you get your uber driver and they're talking

00:44:28.040 about it i had my housekeepers come over your housekeeper starts talking about it it's yeah

00:44:33.440 they were talking about bitcoin that's when you start selling some off and taking profits

00:44:37.020 or at least you're not buying you know what i like to do is i like to have a long-term macro view

00:44:42.140 but then i like to just uh create kind of a a watch list right and it doesn't mean that i have to go

00:44:48.160 out there and buy everything that i'm bullish on long term you know copper would be a good example

00:44:52.760 of that i do like the volatility though like i'll be honest with you i mean you know if you're

00:44:56.840 if you're in and out and you know what you're doing like the it's good yeah i i think so but

00:45:02.860 as long as you compartmentalize it in your portfolio and understand what purpose it serves

00:45:08.160 at what what most people do is they don't think about portfolio construction at all they don't

00:45:12.980 think about risk reward they just sit there and look at assets and then ask themselves okay do i think

00:45:19.420 that's going to go up in price yes okay i buy it what about that thing i think that's going to go up

00:45:24.380 yeah i'm going to buy that too they don't understand how the the two um assets behave

00:45:31.280 together in a portfolio over the long run you know example i can give to you rich is an example i got

00:45:37.260 from my good buddy chris cole who is the author of the dragon portfolio he runs a a hedge fund called

00:45:43.980 artemis capital uh that specializes in volatility and he put it better than anyone i've ever heard

00:45:50.280 he said listen you can have a team of five michael jordans let's say and you're not going to win as

00:46:00.000 many championships as if you have a team with a michael jordan and a dennis rodman you see dennis

00:46:07.620 rodman no one would ever buy or go long a dennis rodman by himself because he couldn't make a shot

00:46:14.540 outside two feet right so no one would ever look at that asset and say oh my gosh i i've got to buy

00:46:20.640 myself a dennis rodman because that price is really really really going to go through the roof

00:46:25.480 no they'd have five michael jordans you see but over the long run the portfolio or in this case the

00:46:32.700 basketball team with not only michael jordan but with uh dennis rodman is going to perform better

00:46:40.680 than the team with all michael jordans what about scotty pippen or scotty pippen or any of the other

00:46:47.000 guys steve kerr you know that that uh that kind of made up that team and so that's what people have

00:46:52.800 to understand with their investments in their portfolio it's the exact same thing i agree they

00:46:57.920 need to understand portfolio construction and not just try to figure out each asset within the

00:47:03.600 portfolio if it's going up or down in price what do you think of decentralized finance you think this

00:47:08.040 is something that's going to displace the financial institutions today

00:47:10.720 i think it's it's got its place and i i wish it would philosophically i'm all about it

00:47:23.820 but but again it's a matter of of probabilities and if you look at the way the system functions right now

00:47:32.400 the global monetary system and you know i i could go into this for the next three hours but you've got

00:47:39.080 the the commercial banks that have been in control the creation of currency dollars for a long long

00:47:46.120 time many many decades they're the ones that create new currency units by lending them into existence

00:47:52.660 so if you get a loan for a million dollars those million dollars did not exist before the bank created

00:47:59.660 those out of thin air so this process of how money is created around globally when you think of the

00:48:07.320 dollar being the reserve currency gets incredibly esoteric and very complex and it's a lot of it is

00:48:14.300 done in the shadows where you really can't see it but the whole thing is just basically a ledger

00:48:20.420 system that's all it is is a ledger system and i think that you could come up with a decentralized

00:48:26.460 ledger system um you know obviously uh with blockchain or or bitcoin you know they they the

00:48:34.700 people would point to that and say well there you go it already exists you could create something like

00:48:39.300 that that would i think would be superior to what we have today uh a superior ledger system and again i

00:48:46.700 want to reiterate that the entire global monetary system all it is is a big ledger system that even the

00:48:53.640 central banks that's all they have is just an electronic ledger and they just obey those specific

00:49:00.280 rules that where all the banks agree that you have as much purchasing power as your bank account says

00:49:06.220 you do because at the end of the day it's just an electronic scoreboard just like basketball teams

00:49:11.540 playing right so i don't want to get too far into the weeds there but i philosophically

00:49:16.600 philosophically i hope it does work out it solves a lot of problems and it gives you a lot more

00:49:21.720 control and freedom that's for sure well to the individual that's right but it solves problems

00:49:26.720 beyond your wildest uh what you can even conceive because in order to explain how the euro dollar

00:49:32.740 system works or the international banking cartel or how dollars are created with the federal reserve

00:49:39.000 uh that would take the next uh you know that take hours and hours and hours but that centralized

00:49:44.320 ledger system that we have right now is completely broken and uh the the global economy will not

00:49:52.540 function again on all eight cylinders until we fix it and it's been broken since 2008

00:49:59.000 yeah and nobody well not nobody but the vast majority of the population doesn't realize it's broken because

00:50:04.760 if they did they would all move to the blockchain and decentralized finance and it would just kind of

00:50:09.340 collapse on itself but i think what's going to have to happen is it's going to have to let people down

00:50:14.400 and they're going to be left with no other option but blockchain bitcoin defi technology yeah so i i

00:50:20.360 talked to breed love robert breed love about that the other day because we always kind of try to figure

00:50:25.540 out the end game at my uh event the the last panel discussion we had was with myself uh brent johnson

00:50:34.160 jeff snyder and and robert breed love where we tried to kind of think through what this end game

00:50:39.780 looks like right like if if we had a collapse in fiat currency did you have an agreement on that

00:50:45.860 what's that did you guys come to an agreement on that uh no no uh breed love so we said okay if fiat

00:50:56.180 currency collapses tomorrow then what do we do because everyone agrees that the the global governments

00:51:03.520 would have to instill confidence so then the question becomes how and my my answer was okay

00:51:11.300 if it happens tomorrow then i think they would instill confidence with gold because it's just been

00:51:18.200 the go-to for the last 5 000 years but if this you know uh system collapses in 10 years and let's say

00:51:27.240 at that point in time bitcoin is being used by such a a much larger percent of gold markets what

00:51:33.460 it's 10 trillion what's that i think the gold market you know comes to about 10 trillion and

00:51:38.880 about 10 and bitcoin was up to about one probably now it's yeah so like one tenth of that so you're

00:51:44.060 right yeah well it's a lot lower now gold yeah yeah but you know people have that familiarity with

00:51:49.940 gold uh at scale uh and and not as many people do with bitcoin but my point was in five years or 10

00:51:56.520 years then i could have a different answer based on how uh the adoption has gone uh with bitcoin not just

00:52:04.720 as a uh store of value but maybe even from a transactional standpoint and then so snyder um who's

00:52:13.100 the smartest guy on this topic i've ever seen he kind of said i we don't know that we we we want to

00:52:19.120 have a market solution but uh does it exist right now uh maybe it does maybe it doesn't maybe there

00:52:26.680 has to be some tweaks some changes made but he thought that uh what we would get in five to 10

00:52:32.100 years uh is not going to be what we have today because technology will advance so far uh breedlove

00:52:39.820 uh who i think would consider himself a bitcoin maximalist uh thought that the the answer would

00:52:46.120 be uh bitcoin and that's what uh the private sector would gravitate towards and then brent johnson

00:52:52.060 um said he he did not he didn't he couldn't even imagine what would happen if the fiat currency system

00:53:00.320 uh crashed or collapsed right now uh but he said that we would have to think of a market-based solution

00:53:09.000 if we want a long-term uh you know it can't be centralized again because he thinks that's

00:53:15.220 where the loss of confidence is going to be not just with the currency but with the government

00:53:19.740 and with the global elite themselves and so um now whether that's bitcoin or something else

00:53:25.940 you know he he doesn't know but it's a very interesting thought experiment what what what

00:53:31.180 percentage of the government would you just cleave off right now like if you had you know 100 you

00:53:35.260 wanted to cleave off some of it to like you know cut off some of the fat how much of it would

00:53:39.800 you get rid of well i'd take us back down to where we were prior to the fed so if you think about

00:53:47.120 that in terms of gdp uh prior to the fed the government represented about five percent of gdp government

00:53:57.320 spending represented about five percent of gdp that means that the private sector represented

00:54:04.460 95 and as pretty much everyone on this live stream uh or that watches this video i i i think whether

00:54:13.940 you're on the right or the left you would agree that government is for the most part uh much less

00:54:21.060 efficient than the private sector uh so you think about if the private sector is control in control

00:54:27.440 let's say of 95 of the economy government five percent now the government spending is almost

00:54:35.440 sixty six zero percent of gdp in the united states that means the private sector is only responsible

00:54:45.120 for forty percent so think about that in terms of efficiencies or lack thereof so i would want to

00:54:52.400 take it back to where government spending was uh five percent of gdp a lot to unpack with that let's

00:55:01.040 get into a couple of these super chats here because uh some have popped in before a uh moody millennial

00:55:05.840 george is a real deal friend of yours oh i think he's on my live streams all the time that i use in my

00:55:12.660 whiteboard videos okay um michael j says i have a great business idea that can be monetized so many ways

00:55:18.380 but i have no idea how to start okay here we go uh i know i need help and no compete disclosure

00:55:24.320 contract i need help finding the right net help networking advice i have advice on this i want to

00:55:29.900 hear you george so but you know chime in yeah i think a lot of people get the paralysis of analysis

00:55:36.140 and um i would just get up and do it i i think so many people get hyper focused on uh you know setting

00:55:43.760 up llcs and s corps and asset protection and non-competes and sign this contract uh yeah and

00:55:50.980 and listen i i agree that at some point you want to cross that bridge but you got far bigger fish to

00:55:57.460 fry my friend like making money that's part of a business to make money yeah so i i see real estate

00:56:04.400 investors do this all the time they'll sit there and they'll spend twenty thousand dollars on setting

00:56:09.400 up all these elaborate llcs and you'll ask them how many properties they have and they'll say well

00:56:14.280 i haven't bought one yet but i have a great idea that can be monetized and it'll blow up george i'm

00:56:18.620 ready yeah and so i i always encourage them to buy the property first yeah and you know learn use it as

00:56:25.640 an experience and you know then worry about the llc maybe 10th or 12th or 15th uh down the list that

00:56:33.880 that shouldn't be your biggest priority but so my point michael is you know work on your business

00:56:39.100 um i don't know what it is but let's get the go out to investors let's get uh let's get these things

00:56:45.240 going um i i wouldn't be so you know i don't want to tell anybody this because they're going to steal

00:56:51.160 my idea because let me tell you what uh an idea is worth basically zero i mean i i hate to break it to

00:56:59.080 you but what's most important is the execution uh you can have the best idea ever and it's not going

00:57:05.880 to come to fruition it's all about execution so uh you know so what if someone steals your idea they'd

00:57:12.440 still have to execute and like let's use uh rich's channel as an example you know okay i had this great

00:57:18.240 idea i'm going to start a youtube channel that talks about cars and red pill and relationships and

00:57:25.440 all these things that's that's my great idea oh okay but what's important is how you execute

00:57:32.640 and so there you know when rich started his channel there could have been uh 10 other channels that had

00:57:38.760 the same type of idea the same type of content but rich executed he he did it the right way and so that's

00:57:46.040 why he's here long term and it's the same thing with a business focus more on the execution and less on

00:57:52.360 the idea that's very very good advice i co-sign all of that um how much time you got though by the way

00:58:00.080 i forgot to ask you to start we're at the 60 no it's up to you i can go for another 30 you good for

00:58:04.800 another 30 yeah yeah all right um let me ask you this question so what's something that you wish men

00:58:10.640 today would understand like if you could like have a sit down you know with guys

00:58:15.400 and provide some clarity on on something that you see men commonly do wrong

00:58:22.140 well boy as far as their uh investments or just in life in general generalize it

00:58:31.420 or is investments the biggest problem right i mean is there something really big there that

00:58:36.020 they're not paying attention to it's in their blind spot well i i think it's where your focus is

00:58:41.380 and people and guys have to understand that um your focus should be being the i'm going to use your

00:58:52.300 term you know the best version of yourself and whether it's finances whether it's fitness whether

00:58:57.720 it's your mental state um that needs to be everything needs to revolve around that because once you've got

00:59:03.960 that squared away that the rest falls into place uh it really does and so many guys kind of

00:59:11.100 you know are chasing things that really um don't matter in the grand scheme of things you know they're

00:59:18.280 out there chasing women as an example and if they would just take that same energy and allocate it to

00:59:24.980 chasing something else to improving themselves then they would get both they then they would have the

00:59:30.820 money they would have the lifestyle they would have the personal freedom which is at the end of the

00:59:35.800 day is what it's all about but then you would also have a a significant amount of sec of uh of success

00:59:42.880 with uh women or you know with with other relationships you know whether it's um hanging out with people

00:59:51.080 that uh you respect and enjoy uh you know communicating with um you know let's look at my uh podcast as an

00:59:59.780 example you know i could have sat there and focused on a hundred different things but because i sat and

01:00:07.040 focused on expanding my own knowledge and creating content and trying to seek out other individuals that

01:00:13.980 were a lot smarter than i was that i could learn from and improve my own skills now all of a sudden i've got

01:00:20.460 the opportunity to set up this live event to talk to you you know i've met rollo was out at my live event i got to

01:00:27.540 meet him personally so you you get all of these opportunities by going out there and just making

01:00:34.200 it happen on your own and if i would have uh you know if i would have gone the other direction i i don't

01:00:40.940 think i would have had uh you know i i wouldn't have been able to have the success that i have in so

01:00:47.740 many different areas you know uh i guess that that's the best way that i can put that's probably the best

01:00:53.980 advice i could give them there's some there's some there's some gems in there uh jeremiah says

01:00:59.180 my advice to men under 40 stop valuing women and they will value you learn a skill spend all your

01:01:04.620 money on starting the business exactly like he said yeah be careful with all your money starting a

01:01:10.500 business i like to bootstrap businesses i mean my view on it is if you can't get it off the ground

01:01:14.720 bootstrapped and there's no point yeah and you've got to uh yeah there's a there's so many things that

01:01:22.680 i've learned over the years like selling the farm to start a business i just don't ever think it's a

01:01:26.620 great idea yeah you know you know i i was i was talking to uh i was having dinner with with robert and

01:01:35.400 kim uh kiyosaki the other day and um they they were telling me that that one of the things that they

01:01:41.720 learned at a very early age from a mentor that they had uh was if um

01:01:48.260 you should be making money off of other people's money if you're not the only reason you're not

01:01:55.120 because you're too lazy that's that's exactly how they they they phrased it right so um i think that

01:02:03.980 the the access especially in today's world the access to startup capital is just almost limitless

01:02:11.260 so i don't think that should be what you're what you're most concerned with it's it's going back

01:02:18.440 to that execution and figuring out how what gives you that edge and then going out there and doing

01:02:23.860 it just do it do it do it prove the concept and then take the plan and then go to someone who who

01:02:30.440 might be able to or would even be interested in financing the project it's just you know guys and

01:02:36.620 gals the entrepreneurs that they a lot of times they get things in reverse and they just get in

01:02:41.740 their own way uh but another thing on that note though is that i would want men and women to realize

01:02:47.940 is that to be successful you have to be willing to sacrifice things that other people are not

01:02:58.300 willing to sacrifice that's the bottom line that that's the only way to to get ahead in the world

01:03:05.140 is you've got to get out there and hustle and if you want to achieve let's say you want to be in the

01:03:13.420 top five percent of men you have to be willing to sacrifice what those other 95 percent were not

01:03:19.920 willing to sacrifice and there is no um uh what do they call it cheat code that that's the word you

01:03:27.440 the term you use all the code there is no cheat code there's no cheat code to making money there's no

01:03:33.340 cheat code to this i mean again using your youtube channel you know how many hundreds or thousands

01:03:39.020 maybe of videos you know how much hate i get for talking about stuff like that it's unbelievable man

01:03:44.100 like i get a lot of hate from guys like he's a snake oil salesman he's making shit up he's just trying

01:03:49.280 to sell you stuff it's like nope i'm just spitting facts my friends that that that is absolutely true

01:03:55.560 i mean you look at any type of uh success that i had uh and it's because what i was willing to

01:04:02.800 sacrifice and the 80 hour uh constant i mean never taking a day off the work ethic the focus

01:04:10.020 uh the ocd it's it's uh the the willingness to take risk i mean very few people are are you know most

01:04:19.880 people would rather just go have a nine to five gig and take weekends off and have their whole life

01:04:25.360 planned for them it doesn't uh it's a it's a rare breed that uh actually wants the you gotta be a

01:04:33.740 little bit crazy to start a business a lot crazy yeah yeah and and and what's interesting too is that

01:04:40.420 you have to be the complete opposite of a good investor and that's one thing that i had to learn

01:04:44.980 when i retired was that because entrepreneurs see opportunity in everything yeah uh where a good

01:04:52.080 investor should see risk in everything and i i had to learn that the hard way uh but once it dawned on

01:05:00.760 me you know it made a lot of sense and i'm like george you know when you're investing you got to take

01:05:06.700 your entrepreneurial hat off uh because they don't they don't blend yeah did i ever talk to you about the

01:05:12.120 differences between playing to win and playing not to lose

01:05:14.580 no but that's that's a good way to look at entrepreneurship and investing yeah basically

01:05:23.380 like i had this retreat and um there was about eight of us together it was facilitated by the guy

01:05:28.520 that was the one of the founders of entrepreneurs organization like he was a former c um president and

01:05:34.440 ceo but he had this guy down in my group and he said something to him that just like never went away

01:05:41.600 from him he said you know in life as an entrepreneur you're either playing to win or you're playing not

01:05:45.860 to lose and he goes you my friend are a racehorse giving pony rides which is basically you know

01:05:51.240 playing not to lose which is which is fine you know like you can play not to lose when you've

01:05:55.020 acquired your wealth like you're 40 50 years old you've made a ton of money you're playing more on

01:06:00.680 the defense yeah so i'd say an investor should play not to lose right number one rule is don't lose

01:06:06.800 money investor plays not to lose a entrepreneur plays to win that's right that's right yeah

01:06:11.760 awesome i love chopping that up man that's uh i don't know if that would have come out if we didn't

01:06:16.200 get into that christopher rowbottom uh says what are your thoughts on the british columbia canada

01:06:20.960 housing market you always hear about the bubble breaking the laws favor the renter to a point that

01:06:26.240 seems to risk the investment as a holder of real estate in canada myself um i'm not big on it i think

01:06:33.720 i'm going to start to unload to be honest with you well you just have to ask yourself if it's cheap

01:06:37.840 or if it's expensive yeah and i don't think there's anything uh cheap about canadian real estate right

01:06:44.380 now like um that answers again don't give you an idea george so you tell me what they go for in

01:06:50.720 arizona but like here in downtown toronto in the core you're going to be paying about 900 000 for

01:06:56.540 two bedroom two bath just under 800 square feet and you'll get a parking spot and a storage locker which is

01:07:02.480 like um six by six basically so let's say a million bucks so what can you rent it out for

01:07:08.280 26 2700 see that is horrible right that is absolutely atrocious now if you could rent that

01:07:16.220 out for 10 000 a month now you got a one percent rv ratio right that's not bad but see my point is

01:07:21.920 that that last um viewer uh he he's focusing on exactly what i'm talking about it was uh this guy

01:07:29.060 see what what question is he trying to answer he's trying to answer is the price going to go up or

01:07:34.440 down that's what i'm sorry christopher i i don't want to you know this is a good question i'm glad

01:07:40.720 you asked it but this is the point i'm making you're trying to figure out if prices are going up or down

01:07:45.260 i'm saying i would suggest not doing that i would suggest forgetting about what direction the price is

01:07:52.000 going and just ask yourself if it's cheap and if it's not cheap don't buy it and if it's expensive

01:07:58.820 sell it that's it don't don't worry about which direction the price is going you know you've talked

01:08:05.160 about prices crashing up yeah can you can you clarify that for the uh viewers because i don't think we've

01:08:11.260 talked about it on my channel yet yeah so let's say you buy a place this a place in canada for a million

01:08:17.300 bucks and it goes up by you know like we're saying five percent per year uh but if inflation goes up

01:08:24.260 at ten percent per year you're you're actually losing purchasing power even though the nominal

01:08:30.200 price of the asset is going up and and that's another reason why you'd want to secure real estate

01:08:37.160 with 30-year fixed rate debt and i know if that's not an option in canada well then just buy it in the

01:08:42.900 it's super easy for canadians to invest in the u.s but again the numbers have to be right you know

01:08:49.180 going back to that rv ratio it most people they take that million dollars they get 2600 that's a

01:08:55.520 2.6 percent or excuse me a um a 0.2 per six to a 0.26 percent rv ratio so the rv ratio is the amount

01:09:06.020 of gross rent you're getting based on your cost basis so that's terrible when you could take that same

01:09:12.520 million dollars and buy 10 100 000 homes let's say at a one percent rv ratio and get ten thousand

01:09:18.400 dollars a month so that's what i'm saying that you you've got to look at things in in those terms

01:09:24.000 and you know going back to um march of 2020 which is when i i most recently bought the the most amount

01:09:33.900 of uh equities you know i thought back then that oil was going to continue to go down in price because

01:09:39.320 it was about 20 or 25 a barrel and uh but i wanted to play by my own rules and i went heavy heavy heavy

01:09:48.720 and bought a massive amount of not only oil producers but a lot of commodity producers at the

01:09:54.860 time now but i thought that the price was still going down but i still bought why because it was cheap

01:10:01.440 it was cheap when you look at a historic chart adjusted for inflation you that that's where you've got

01:10:08.260 to start and if you look at the housing market in bc or in canada in a chart going back 40 or 50 years

01:10:15.400 adjusted for inflation i can promise you you're at all-time highs uh and and even and i know that by

01:10:23.380 just looking at the the rent and the rv ratio that you just told me that's extremely extremely expensive

01:10:29.260 so uh that that's how i that's the best advice i can give to that person but i mean a lot of guys out

01:10:36.080 there have the you know have the notion that um you must acquire real you know real estate to

01:10:41.140 be anybody right so like they'll like they'll fight tooth and nail to do whatever they can to

01:10:47.700 acquire real estate a lot of it you know i see a lot of guys in relationships with women like i've had

01:10:53.940 renters in and out of my condo yeah it's like whenever they leave it's always because they get

01:10:59.480 pregnant and she wants to buy a place one or the other or a combination of both yeah well now you're

01:11:06.860 talking about household formation and and that takes us back to a conversation that we've had

01:11:11.360 before an even deeper conversation about uh you know where this is headed from a standpoint of

01:11:16.440 demographics and um again i don't if you want to get fixated on the price which i don't think you

01:11:23.300 should but you got to start thinking about those demographics and the trends and the the thing that

01:11:28.100 uh the guys on this channel who are quote unquote red pilled they have a huge advantage that i don't

01:11:34.600 even think they understand they have an economic advantage because they understand demographics a lot

01:11:41.260 better than most economists and what i mean by that is that you guys talk about uh you know the the

01:11:49.400 Pareto distribution where 20 of the guys are uh you know dating 80 of the women uh but that

01:11:57.880 Pareto distribution in my opinion is shrinking it's where now it's like five like 95 percent of the

01:12:04.640 women want to date like five percent of the guys and so you you've got and then you guys talk about

01:12:10.680 hypergamy all the time and with with women uh you know increasing their education levels and making

01:12:16.780 more and more money that means that there's fewer and fewer guys that are acceptable to them uh whether

01:12:23.600 that they're justified or not that's another conversation doesn't matter so so what this means

01:12:29.320 is fewer and fewer babies being born and less household formation well that means less population

01:12:37.400 over the long run and population problems like we've seen in japan that's hugely deflationary

01:12:43.600 uh especially for asset prices so that's not a prediction that's just to say that that's one

01:12:50.600 of the cross currents that we have to consider when we're thinking about real estate when we're

01:12:56.020 thinking about the future of the western economy in and of itself and that guys and gals who are

01:13:02.460 are quote-unquote red-pilled uh in what you and rollo talk about i think they've got a big advantage

01:13:08.580 that uh like i said that they don't even realize because they i think have a better uh they can predict

01:13:16.100 the probabilities of population changes a lot better than most people can yeah um jeremiah says i agree

01:13:25.120 39 single 23 year old girlfriend with no kids who knows there is no marriage contract coming

01:13:30.720 i say yes except i'm building a full service plumbing business the first 10 years is brutal

01:13:36.100 great show today thank you both of you thanks man yeah so i agree 39 single so his girlfriend's

01:13:42.900 he's 39 his girlfriend's 23 with no kids and he doesn't sound like he's getting married i said

01:13:48.580 i'd say yes except i'm building well it sounds like he's chasing excellence not not women so good for

01:13:54.300 him yeah i mean i think he's on the business yeah he's doing exactly what you need to do and just uh

01:14:00.180 don't get one itis i mean if if if the gal's great then she's great uh you know keep her in

01:14:06.000 your inner circle um but just get fixated on uh you know pursuing the best in in in pursuing the

01:14:14.800 business pursuing wealth uh you know becoming a better person uh in general and and personally

01:14:21.500 and professionally and but that see the thing is that's what you're going to need to do to uh keep

01:14:27.600 the relationship healthy anyway uh then that's what most guys they get turned around when they get in

01:14:33.440 that relationship and they think that what they need to do to maintain a healthy relationship or

01:14:38.360 a fun relationship is just uh you know tell the girl the gal she's good looking uh 24 hours a day

01:14:46.080 tell her you love her five times a day buy her flowers you know and do all these things and they they

01:14:52.220 just don't understand that that that may work for a month or two but if you're not out there

01:14:58.020 creating wealth and um and you know having that ambitious attitude and chasing excellence

01:15:06.220 that the gal is not going to respect you and it's just a matter of time before the relationship

01:15:11.600 deteriorates in my opinion well said um stay curious want you to come around here more often my friend

01:15:18.600 yeah i'd love it i mean uh it's it's great to talk about these concepts i like just learning from

01:15:25.720 people in general uh that know more than i do about a variety of topics and that's uh what's been

01:15:31.420 your biggest takeaway watching my channel because i mean you've said a few times that you're that

01:15:34.640 you've watched quite a bit of the stuff oh i i've got a lot of takeaways from from watching your stuff

01:15:42.180 uh rich i mean we've talked about the my main takeaways but i think you're just a great example

01:15:47.920 of uh of of of what the opportunity is out there and uh i think you should be um you know kind of

01:16:00.340 motivational or inspirational to people watching your channel because you came from the blue pill side

01:16:06.740 and you you didn't allow that you didn't stay in that rut you know once you recognized that there was

01:16:14.460 a deficiency in your thinking you did everything you possibly could to change it and become better

01:16:20.700 right and then we you know i don't know would you start your youtube channel like six years ago five

01:16:25.520 years ago 2014 may 23rd 2014 yes like six years ago and you just kept working on it and working on it

01:16:33.100 not only the youtube channel but improving your understanding of how the world works everything

01:16:39.660 yeah and look at how um i i would assume that that now uh you don't have as much of a struggle

01:16:48.120 with uh with dating or i don't know that you ever did but i would assume that now you have far less

01:16:54.300 struggles with dating than you did prior uh to starting the youtube channel and uh but every i i would

01:17:01.320 assume that in every aspect of your life is probably better than it was prior to starting that youtube channel

01:17:08.520 because you have tried to increase your knowledge improve your yourself and you you know you practice

01:17:15.600 what you preach you got to be curious as a man i mean you really do yeah but i i think that's what

01:17:20.900 what makes your content great is because you practice what you preach and people can see that and they and

01:17:27.720 they can see the results that you've obtained for your own life and they and they know that it's

01:17:32.640 possible and i think that's what's so inspirational so stay curious my friends um let's get to winding

01:17:41.600 this down um who should be watching your channel george

01:17:45.600 who should be watching it people who want to

01:17:54.640 have an edge in predicting economic probabilities in the future and people who um who viscerally

01:18:10.280 understand that there are risks out there that that are underneath the surface you know they see the

01:18:19.280 federal reserve uh print quote unquote printing money they see all these stimulus checks go out

01:18:24.580 and and they just they're like something doesn't seem right here i don't know what it is

01:18:29.260 but something doesn't seem right and i either want to increase my wealth in the future or i want to

01:18:36.320 preserve my current uh amount of purchasing power but i know that there are a lot of risks out there

01:18:44.540 that i don't even understand and i need to understand those risks so i can make better

01:18:49.940 financial decisions for my future uh that's the type of person that would really benefit from my

01:18:55.520 channel i think there you go guys let's do this one last super chat uh duka says i have a startup

01:19:01.540 30 000 net every month or sell it by 1.5 million to invest i have a startup 30 000 net every month or

01:19:12.080 sell it so i think he's asking whether he should sell it or continue to earn the money

01:19:15.760 uh i need to decide five yeah it's a pretty big multiple in 30k i was gonna say i'd i'd sell that

01:19:22.400 thing yesterday if you get that multiple i mean that's not the home run man just take the money and

01:19:27.860 run um i need to decide until the end of the year maybe i'm getting lazy because i want to invest and

01:19:32.400 get dividends he's 28 years old um i i'd concur with george i mean like unless you have like

01:19:37.860 major upside in the next 24 months pretty guaranteed um even if you sell the the the owner should want

01:19:45.440 to keep you around in some capacity to where you still have equity to where you could uh participate

01:19:50.560 in in the upside there assuming that you started the business and this this brings up a good point

01:19:56.560 though and another uh piece of investment advice that that i give people is i think the first thing

01:20:04.340 that you should do is try to cover your your monthly expenses through passive income if you can do it

01:20:10.560 right so i had i talked to a lot of business owners and like you know what should i do with my cash what

01:20:15.560 should i do my cash because a lot of them they get a much higher return on their investment if they

01:20:20.340 just dump it back into business but yet they feel as though they're not diversified right and which

01:20:26.040 and that makes a lot of sense and i always say listen take profits and just buy stuff that pays you

01:20:32.440 to own it whether it's dividend paying stocks or real estate that's good positive cash flow with

01:20:37.660 good numbers um it doesn't have to be in the u.s it can be other places but let's say your monthly nuts

01:20:42.860 uh 10 or 15 grand okay well make go out and invest in enough stuff to where you've got that 10 or 15 grand

01:20:51.600 coming in per month uh from from passive investments and then go ahead and take the money that your cash

01:20:59.800 flow and allocate it to where you're getting the highest return and i i think that uh if if people

01:21:06.580 did that especially entrepreneurs that are that have been successful and are successful that moving

01:21:13.560 forward they'd be able they'd have a willingness to take a lot um well i don't want to say they'd have

01:21:21.660 a willingness to take more risk but but they'd have a willingness to take a smart risk in the future

01:21:28.700 that they might not otherwise have because of this fear of loss you know when we start off we all we

01:21:35.940 see is opportunity we just want the opportunity but once you've made a bit of money um then you start

01:21:42.340 to get in that camp where uh i think you have a fear of losing uh what you've already uh earned and

01:21:51.100 what you've already made instead of just seeing nothing but opportunity in the future when you don't have

01:21:56.140 a pot to piss in sounds like he's a sas business um yeah it's interesting because sas for those of you

01:22:03.380 that don't know is software as a service um many of them have no monthly revenue it can sell for stupid

01:22:10.260 multiples i think um what was it was instagram that sold for a billion dollars like within 36 months of

01:22:16.040 startup and it didn't really have any revenue like you know stuff like that does happen yeah so i mean

01:22:22.360 that that's a great multiple uh i i don't know the business but again if i was in this person's shoes

01:22:28.900 what i would be doing even if i didn't sell the business my first priority would be taking my money

01:22:35.540 and buying enough assets that pay me to own them to where it covers my monthly nut and then you know

01:22:41.880 take all the excessive cash flow and dump it back into the business there you have it guys so on that

01:22:47.660 note we'll wrap up uh go subscribe to george gammon's youtube channel he has a podcast show

01:22:52.700 called the rebel capitalists you also do a conference what's the conference called again

01:22:55.920 rebel capitals live rebel capitalists live so you can check that out off his youtube and his uh

01:23:01.380 website as well so thanks for joining us george go subscribe don't go anywhere i want to talk to

01:23:06.860 for a minute after we get off but we'll see you guys

Playing to Win - March 02, 2022

041 - @George Gammon - The Rebel Capitalist

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