The Mikhaila Peterson Podcast - November 14, 2023


How to Get Rich From the Wolf of Wall Street ｜ Jordan Belfort


Episode Stats


Length

1 hour and 1 minute

Words per minute

192.66

Word count

11,846

Sentence count

598

Harmful content

Toxicity

75

sentences flagged

Hate speech

7

sentences flagged


Transcript

Transcript generated with Whisper (turbo).
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 I know there's so many people out there that are successful, smart, educated, diligent,
00:00:04.960 but when it comes to putting the money that they've made to work, they screw it up.
00:00:09.040 The mathematical studies are conclusive.
00:00:11.360 The best investment of all is literally, it's the one exception to the rule of,
00:00:18.720 I should seek out an expert to help me get a better result. 1.00
00:00:21.420 Financial planners, meet the fuckers. 1.00
00:00:23.880 They take more than they give. 1.00
00:00:26.740 Bottom line.
00:00:27.860 Juan Buffett's been screaming this from the hilltops for God knows how long.
00:00:31.160 Because these people are very good at talking themselves up.
00:00:33.280 Like, oh, I'm the best around.
00:00:35.100 This will help you.
00:00:35.880 You don't know what you're doing.
00:00:37.200 Let us do it. 1.00
00:00:37.920 I'm like, oh, I can't believe they're saying this shit. 1.00
00:00:40.000 It's bullshit. 1.00
00:00:41.180 When it comes to investing, it's so easy. 1.00
00:00:43.660 Once you know the formula, it's almost the blueprint for success.
00:00:47.120 Over the last hundred years, that type of investment structure haze off every time.
00:00:52.180 Here's the deal.
00:00:52.860 jordan belford welcome to my podcast thank you it's great to be here you've got an extremely
00:01:01.860 interesting life uh you made tons of money then you lost it and then you fairly quickly managed
00:01:09.200 to make tons of money again so right what do you think it is about you that enables you to
00:01:15.380 capitalize i guess on opportunity and make that kind of money when the average joe i would say
00:01:20.800 can't do that or doesn't think they're able to do that? What makes you different?
00:01:25.440 So I think a couple of things. Number one, I've always been sort of, you know, that, that, that
00:01:30.360 ultra hardworking entrepreneurial type, great natural salesperson, right? And those things
00:01:36.260 certainly are skill sets and natural born tendencies that have given me an edge in the
00:01:42.260 business world to just, you know, from a very young age, I was starting businesses, paper routes,
00:01:47.980 selling ices on the beach. And then, you know, when I got older, I started starting formal
00:01:52.360 businesses. Right. But, but in terms of, of, of why I'm able to bounce back, was able to bounce
00:01:58.400 back and reinvent myself and then come back stronger is that, you know, business and making
00:02:04.280 money has rules. And there are certain core strategies that you need to know to start a
00:02:11.020 business or succeed at selling or marketing, whatever that might be. And if you don't know
00:02:15.860 those rules or strategies, then you're typically going to struggle, suffer. And also your brain
00:02:22.300 is probably, most people's brains are pretty smart. So deep down, when you're thinking about
00:02:26.840 taking action, maybe you're going to start a business. When you play in the movie, you're
00:02:30.680 like, I don't really see myself succeeding. I don't think I'm like that. So you have beliefs
00:02:35.880 that sort of say, I'm not really meant to be rich or I don't possess the skills to be rich.
00:02:41.160 it's not me. So what happens is when you have those types of beliefs, it will stop you
00:02:46.180 from taking action. So you won't charge for when you should, or you'll probably pull back when you
00:02:51.520 shouldn't. So I was fortunate that I had very empowering beliefs about making money, about
00:02:58.240 my ability to create my own destiny, that life doesn't happen to me, I can create my own destiny.
00:03:04.000 And I possess very high level skills. I know how to be an entrepreneur. There's rules to
00:03:10.120 entrepreneurship. I know how to start businesses. I know how to scale businesses. And I certainly
00:03:14.860 know how to train salespeople and market myself and my products in a way that gives me an edge.
00:03:20.220 So I think that is the business is it's a learnable skill that is available to anybody.
00:03:26.940 So in the past, I've taught that at different courses. I've released learning modules on this
00:03:32.380 stuff that have really helped millions and tens of millions of people around the world to sell
00:03:35.860 more effectively, start businesses. So that's one side of the equation. It's like, you know,
00:03:40.460 is becoming successful in business and making money and living an empowered life. This book
00:03:45.740 was about, okay, what happens next? What do I do with the money I make? How do I take that money
00:03:50.740 and put it to work the right way? So for me, it's a combination of like, there's an inner game of
00:03:56.440 success, your mindset. So I have a very strong success mindset, you know, the ability to manage
00:04:01.420 my state of mind, to be, I feel positive and confident and clear and certain. Um, and then
00:04:07.780 have a vision for my future. And then as well as ultra high standards, like I won't settle
00:04:13.060 for mediocrity. I strive. It's important to me to literally do, I want to do the extra work.
00:04:19.660 I think part of being successful is learning or training yourself, conditioning yourself to do
00:04:24.840 the things you know you have to do to succeed even when you don't feel like doing them. So those are
00:04:30.100 just a few of the things on the, on the mindset side. Then again, on the outer game, it's literally
00:04:35.480 possessing the skills. Like what are the real world skills you need to succeed as a business
00:04:41.740 person, as a salesperson, or even as an employee trying to move up the food chain and a company.
00:04:47.160 So I possess those skills and I taught them and continue to teach those skills to people.
00:04:51.480 And then the last piece of that is, and then what do I do with the money I've made? How do I take
00:04:55.700 the money I've made and really put it to work the right way to ensure that I don't end up with less
00:05:03.000 than I started with or hopefully lose everything, but, but, or a subpar return. Hey, quick break to
00:05:10.300 discuss your health, which I do care about more than is probably healthy because of how sick I've
00:05:16.200 been and I'm no longer. Thank God. If you don't sauna, you should do it. There's basically
00:05:21.440 definitive evidence it's incredibly good for you it's really easy and it feels really good
00:05:26.900 i've been using saunas for years i first started when i was in antidepressant withdrawal and i've
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00:06:07.740 traveling go to bondcharge.com slash mp and use code mp to save 15 that's b-o-n-c-h-a-r-g-e.com
00:06:17.700 slash mp and use code mp for 15% off enjoy the rest of this episode you talked a little bit
00:06:24.520 about skills do you have you actually taken people who don't have so you're obviously
00:06:30.200 extremely extroverted you're smart you're most likely extremely disagreeable don't you think
00:06:37.960 that you you laugh don't you think that you need that type of personality in order to make it in
00:06:43.420 the business world? Because I know CEOs, surgeons, a lot of very high net worth people kind of have
00:06:50.880 that type of personality and it makes it easier for them. Have you ever taught an agreeable person
00:06:55.520 how to sell and how to become a business person? Yeah, the answer is absolutely yes. So the system
00:07:02.840 that I teach for selling was called the straight line. That system could take any person. I don't
00:07:07.680 care what your natural tendencies are or your talents. It could take anybody and turn them into
00:07:12.540 a really effective closer or communicator.
00:07:16.160 But again, here's what I always say.
00:07:17.780 Listen, I love playing tennis, right?
00:07:19.860 And I'm really good at tennis.
00:07:20.820 And I've taken a lot of lessons from world-class players.
00:07:24.700 And I've used those lessons in practice daily to get myself to a level I could beat almost
00:07:30.660 any average player by a significant margin, right?
00:07:34.440 But put me on the court with Roger Federer.
00:07:36.500 I'm going to get blown off the court without getting a game from him.
00:07:39.520 No matter how hard I try, how much I practice, how many lessons I take, I lack the natural ability to be the best in the world, the top 50 in the world.
00:07:49.020 That's just not the way I am.
00:07:49.940 I don't have that natural ability, right?
00:07:52.240 That's why I'm not a professional tennis player.
00:07:53.900 But I've gotten myself really, really good so I can enjoy the sport and beat most people.
00:07:59.320 Well, I'm not saying that I can, you know, in three easy lessons, I could take you and make you just as good as me at sales, whatever bit as good at business or that.
00:08:08.040 But I could easily, and I have been doing this for 30 years, making people good enough so that if you're being held back, it's not because of your ability or your inability to communicate or close or sell.
00:08:22.140 So it essentially allows you to get to a level that good enough is good enough.
00:08:26.080 You don't have to be the world's greatest salesperson to become an effective closer and to be a great business person.
00:08:31.460 You need to be good enough.
00:08:33.100 So it's not about perfection.
00:08:34.840 It's about progress, and it's about getting yourself to that level of being good enough,
00:08:38.240 which is very easy to do for anybody that wants to commit.
00:08:41.880 That's number one.
00:08:42.900 Number two is that one of the successful things that entrepreneurs do is they surround
00:08:47.600 themselves with people who possess the skills that they lack.
00:08:51.100 So if you're very, very good at one aspect of business, and yet you hate the idea of
00:08:58.200 sales or just communicating or whatever, financial stuff, right?
00:09:03.740 Well, you might then want to survive as if it's a very strong sales type or a great financial
00:09:07.920 person.
00:09:08.280 So you bring in those skill sets into your business that you lack.
00:09:12.500 So, you know, you don't have to be at a deficit.
00:09:15.140 All the information you need to train yourself out there and all the people, the experts
00:09:19.820 that you would need to round out the skill sets that you're missing are out there as
00:09:23.380 well and ready for the taking.
00:09:25.280 But just to be clear, there is, unless you're missing like some brain cells, seriously,
00:09:30.920 or you have some sort of impediment of speech, right?
00:09:34.500 You can easily get yourself to be proficient enough at selling.
00:09:39.560 And for that matter, proficient enough at investing your money.
00:09:43.720 So if you read my book, literally, it's all you need to have is,
00:09:48.700 you read my book, you know everything you need to know to build a world-class portfolio.
00:09:52.680 You don't need a money manager.
00:09:54.380 You don't need to have mutual funds managing your money and giving yourself all returns.
00:09:57.380 You just follow the term key solution as a step-by-step in the book.
00:10:01.440 And it's like inaudibly the right way to go about investing for the long term.
00:10:05.020 That doesn't mean that you can't have fun speculating.
00:10:08.700 There's nothing wrong with that.
00:10:09.900 And I speculate.
00:10:11.000 So maybe you want to take 5% of your portfolio and speculate and buy individual stocks or
00:10:17.320 buy crypto or invest in venture capital, whatever that might be, right?
00:10:20.800 That's fun.
00:10:22.040 But you just can't expect that that's going to be where your big returns are going to
00:10:26.100 come from.
00:10:26.400 Maybe you'll get lucky.
00:10:27.040 maybe you won't. But, you know, healthy speculation is fun. It's engaging. And if you
00:10:34.020 get lucky, it can work out very well for you. Do you have any advice for people who are
00:10:39.200 more on the shy side, trying to get into sales? Is there one thing you teach people first?
00:10:46.220 Yeah, so I think that, you know, shy is a very broad term. But let's say people who are not,
00:10:52.940 they don't feel comfortable it's not their natural inclination to build rapport with people or they
00:10:59.420 don't like putting themselves out there right i think that that this the straight line what i
00:11:03.620 teach the system i teach right is very effective for those because what it does it is a lot of
00:11:08.920 this is doing beliefs they have that they're not good at it so i'm not naturally good at selling
00:11:13.620 or communicating so you shy away from it and and what happens when you learn the straight line
00:11:19.040 system when you when you learn the skill set of persuasion your brain slices oh wow i feel more
00:11:26.780 confident about this i'm feeling better you it makes you more served so the inner game and the
00:11:31.080 outer game they they work for each other or against each other for example if you have a if you have
00:11:36.360 a belief that i'm terrible at selling and and i'm just not good at this and you know what you're 0.60
00:11:40.700 probably right you probably suck and you probably shouldn't be putting yourself out there selling 0.99
00:11:46.360 when you're terrible at it 1.00
00:11:47.460 because you're not going to get a great result.
00:11:48.800 And all that will happen is it will reinforce the belief
00:11:50.620 that, yo, see, I do stuff.
00:11:51.940 No one's buying from it, right?
00:11:53.460 So in order to interrupt that cycle,
00:11:56.080 you need to do something, change your actual competency,
00:11:59.400 learn, grow yourself,
00:12:01.200 learn to become a better communicator, a better closer.
00:12:05.340 Once you do that, your brain is very smart.
00:12:07.900 It goes, oh, wait a second.
00:12:09.340 You know, I actually know something now.
00:12:11.020 I didn't know before.
00:12:11.800 I'm feeling much better about this more confident.
00:12:13.740 and then they start to feed on each other in a positive way.
00:12:17.280 For example, you know, one of the big mistakes that companies make, right?
00:12:22.100 Or investors make, here's a classic one, let's start with investors, right?
00:12:25.360 So you don't really know what you're doing.
00:12:27.320 You don't know how to invest properly.
00:12:29.680 You haven't read a book like mine, which lays it out for you, right?
00:12:32.980 And you go out there and you use a stockbroker or the latest tip on TikTok or Insta
00:12:38.660 and you get destroyed.
00:12:40.480 You lose 75% of your money, which is very common, right?
00:12:44.460 Then you say to yourself, you know what? 0.81
00:12:45.920 I suck at investing. 0.86
00:12:47.200 This is not for me. 1.00
00:12:48.200 I can't do this shit. 1.00
00:12:49.320 And you develop a belief that you're a terrible investor. 1.00
00:12:52.720 The reality is, is that it's not that you're such a terrible investor.
00:12:55.640 You just don't know the first thing about investing.
00:12:57.480 You're trying to do something without possessing the skill set.
00:13:00.060 The only way to change that belief really is honestly, you just can't, if someone's like
00:13:03.940 rah, rah, rah, go, you just keep going.
00:13:05.920 You're great.
00:13:06.500 You're awesome.
00:13:07.180 You're capable of greatness.
00:13:08.400 You can close like an animal.
00:13:10.260 You have it within you. 1.00
00:13:11.260 if they're just saying that to you your brain's like bullshit bullshit yeah like no i actually 1.00
00:13:17.420 suck i do suck so those words those that that's a motivation doesn't work because it almost 1.00
00:13:25.300 reverses our stuff because you're actually in reality no you're you can't say you're great 1.00
00:13:29.980 you're capable no i'm not capable of grace i kind of suck the only way motivation works is if you're
00:13:36.420 simultaneously choosing people's skill sets that actually make a difference. So they're like,
00:13:43.340 oh, wait a second. Maybe I thought I sucked in the past and I did, but now I know new things.
00:13:48.820 I am a strategy. I'm different. I'm better than I was. That's how you break a false belief. So 0.93
00:13:54.600 you actually make yourself better. And then you go out and take that. You'll be more likely to
00:13:58.160 take action. Your brain will say, you know what? Wait a second. I'm much better now. I actually
00:14:01.920 know this skill. It makes you more serve and suddenly your results start to improve. And
00:14:06.160 then that cycle works in your favor. You get results that are positive and you say, oh, wow,
00:14:09.900 I'm getting better. And you work harder and study more. And it feeds on itself in a positive way.
00:14:14.340 So, and that's exactly what I did with Stratton, where I, you know, took kids that didn't die
00:14:18.620 to close, that were never successful before. And I didn't just say, oh, you're capable of success.
00:14:23.100 You're great. You're awesome. No, they're not. But what I did is I told them that while I actually
00:14:28.540 made them great, I taught them a skill that fundamentally changed and made them expert
00:14:34.000 communicators. So by doing that and giving them the motivation, those two work hand in like a
00:14:38.620 one-two punch, you can accomplish anything. I always thought that was something you had to
00:14:43.020 learn young or you needed some, a certain type of personality. I thought there were just natural
00:14:47.540 salespeople, natural marketers, natural entrepreneurs. And it was difficult for
00:14:52.280 some people to change their mindset or even their personality to get into that.
00:14:56.220 But you think it's possible. Well, like I said, so I can become a great tennis player,
00:15:01.200 But I'm never going to be a pro
00:15:02.460 I'm not going to be
00:15:03.620 So the point is yes
00:15:05.080 If you're like a terrible communicator 0.96
00:15:08.220 Awful at selling 0.74
00:15:09.920 I'm not saying that I can teach you a system
00:15:12.600 And then in 30 days
00:15:14.740 You're going to sell every bit as good as me
00:15:16.500 No, you probably won't
00:15:18.120 But what you can do
00:15:20.200 Very quickly in fact
00:15:22.140 Is in a matter of weeks
00:15:23.840 Raise your level up so you're good enough
00:15:26.340 So that if you don't succeed
00:15:28.760 It's not because of your communication
00:15:30.500 You don't have to be an expert.
00:15:32.180 You only have to be good enough in life.
00:15:34.860 Good enough is good enough.
00:15:36.340 Combined with all your other natural skills you have.
00:15:39.060 So that's the goal is just to be good enough, proficient.
00:15:42.840 Okay, that, yes, anyone can become proficient
00:15:45.600 unless you have something wrong with you.
00:15:48.160 I find it so hard to believe
00:15:50.480 that you can take some of these people
00:15:52.000 that are bad communicators,
00:15:54.000 because I've met bad communicators,
00:15:55.460 and teach them to be good communicators.
00:15:57.340 Is that, is that just a matter of becoming more disagreeable in conversation or being
00:16:01.860 more confident or does it help?
00:16:03.740 I mean, I suppose it helps if you know what you're talking about as well.
00:16:07.000 Well, number one is I wouldn't use the word disagreeable because that sort of creates 0.99
00:16:12.180 a picture that you have to be an ass or combine it. 0.98
00:16:14.940 That doesn't work well in sales. 0.99
00:16:16.400 That breaks rapport with people.
00:16:17.840 So it's not about becoming disagreeable.
00:16:20.320 It's, it's how do you get a core cross your point to someone else in a way that very
00:16:27.260 quickly, in the first few seconds of the conversation, they perceive you
00:16:31.000 as being sharp, on the ball, enthusiastic, and
00:16:35.240 most importantly, an expert in your field. How do you learn to come across
00:16:39.560 like an expert? There's many people who are, in fact, experts,
00:16:43.520 but when you hear them speak, you're like, oh, I don't sound very confident.
00:16:47.380 They don't say, right? Well, guess what? That's a problem of communication.
00:16:52.060 Like that, you know, inside, you feel certain, you feel confident
00:16:55.300 when the words come out, between your tonality, your body language,
00:16:58.280 your words you say, you sound like you're a novice, right?
00:17:01.080 That's a correctable problem.
00:17:03.220 It just is.
00:17:04.280 And I taught people all over the world, in every industry you could imagine,
00:17:09.720 to become effective communicators.
00:17:12.260 And some of them were awful when they started, and they very quickly improved.
00:17:16.560 I'm not saying they're as good as me or they're experts,
00:17:18.460 but they're certainly good enough that they possess enough knowledge
00:17:23.080 to get whatever they want in life.
00:17:25.300 So, again, it's not about perfection.
00:17:27.540 It's about growth and progress and being good enough.
00:17:31.280 And by the way, the irony is when it comes to investing, right, it's so easy.
00:17:36.720 Once you know the formula, like I lay out a formula, it's so simple.
00:17:40.780 It's like any, honestly, a five-year-old could do it.
00:17:43.680 So, you're like, I'm a 10-year-old, okay?
00:17:45.320 And then you're a really smart five-year-old.
00:17:46.540 But certainly a 10-year-old could easily read my book and beat 95% of the money managers
00:17:52.360 out there and have a massive portfolio waiting for them when they turn 40.
00:17:56.760 It's really, that's the idea.
00:17:58.500 It's easy to do.
00:18:00.220 It's just that you have to just take the time, read the information, open up a couple of
00:18:04.480 different accounts, and it's just, it's like literally set and forget.
00:18:08.580 It's less is more, not more activity is less.
00:18:11.380 That's the irony of the whole thing when it comes to investing.
00:18:15.040 Do you find that some people have a hard time simplifying complex problems into just a step
00:18:20.180 five-step solution, which is part of the reason maybe some people have a difficult time becoming
00:18:25.220 entrepreneurs. Because maybe when you see a project, you say, okay, here are the main steps
00:18:29.980 I need to do in order to make this project successful. And somebody else might see a
00:18:34.280 million steps and not be able to sort it out for themselves. That's certainly an issue,
00:18:38.640 but I think even more common is people that take a simple thing and try to complicate it.
00:18:41.960 here's the deal when it comes to overarching success right many people when they're trying
00:18:52.520 to become successful right they try to move in multiple directions at the same time they try to
00:18:59.220 pursue four or five interests or things they like and and they're trying to go why dig that let me
00:19:04.100 go in five directions at once and hopefully one of them will get traction and work and then i'll
00:19:08.120 stop focusing more on that. Unfortunately, that's really not a recipe for success.
00:19:12.300 People that succeed typically, they focus on one thing and they put everything
00:19:16.440 into it and they leave themselves no exit ramps
00:19:20.200 because they make the positives of failure so dire
00:19:24.340 so unthinkable, they give themselves no choice. They put them back
00:19:28.300 to the wall. Famous examples, Elon Musk was almost bankrupt back in
00:19:32.200 2008, right? He was sleeping on the factory floor one day away from bankruptcy, right?
00:19:36.220 Put every last dollar on the line, every last inch of his soul on the line.
00:19:42.300 There's millions of those stories about people who do that, right?
00:19:45.740 And ultimately, it starts to work.
00:19:47.680 They succeed or they fail and then even move on to the next idea.
00:19:52.120 So I'm not saying you never want to stick with a failing idea, but it's like one thing
00:19:56.760 at a time, first things first.
00:19:59.040 Not I'm going to go with five directions at once and try to dabble and stuff and become
00:20:03.240 successful that way.
00:20:04.680 So that's the first thing is to be focusing on one thing and really putting your all into
00:20:08.520 one thing versus trying to like do three things or four things at once, because it makes it
00:20:13.580 too easy to give up when you shouldn't give up.
00:20:16.040 And also you only have so much, you know, focus that you could put in if it's being,
00:20:19.780 you know, frayed into five directions and the focus is not going to be that powerful
00:20:23.700 in any one direction.
00:20:24.880 That's number one.
00:20:25.920 Number two is that, yeah, it's like there's this really important concept is keep it simple.
00:20:32.100 You know, first things first, right?
00:20:34.180 You know, you look at a large business that's making a ton of money and you see all these
00:20:40.400 employees and all these different divisions and all these amazing things happening with
00:20:46.840 their marketing, their product, well, they're doing interviews and they have a brand they
00:20:51.080 build around it.
00:20:51.880 And next thing you know, they're doing a podcast or writing them.
00:20:53.920 And you look and say, wow, so to be successful, I have to like sort of do all that stuff.
00:20:58.340 I have to start a podcast, write a book, do this launch thing.
00:21:01.620 But that all came later. 0.74
00:21:04.180 I don't know your dad's entire story about how he became uber successful and to where he is today, but I'm going to guess it started organically where he started giving some speeches and people were like, holy shit, this guy makes a lot of sense.
00:21:20.600 I like to hear what this guy's got to say, so he gave a few more speeches.
00:21:24.400 Next thing you know, the speeches got bigger and he was able to charge some money for those speeches.
00:21:28.240 Suddenly, as he got real traction, maybe I should build a product or write a book or do that.
00:21:32.340 In some order, it flowed to this pool, and now he probably has 15 employees, different divisions, different courses, mastermind events, and this and that.
00:21:40.260 And you look at his business now, maybe even as a vitamin line for a while.
00:21:43.120 I don't know what that does, but you see all these things he's developed, but it all started from one idea of what thing he was doing well.
00:21:50.240 So it started simple and small, and I'm going to guess that's probably correct without knowing the real story.
00:21:54.880 You know what? So I don't think this works for very many people, but he always did too many things at the same time. Always. So he started, he's got a couple of products like self-authoring and understand myself. It's just an online products. Those did, did nothing for 20 years. They were online and available. They work really well, but there was no marketing and nobody knew about them for 20 years.
00:22:20.880 So they were there. He had his clinical practice. He was a university professor. He wrote books. Um, and then he had YouTube, which was just to put his, his like classes online. And then randomly those started getting picked up. And then that's what made the product successful. And then that blossomed into a podcast. So you're partly right there, but he was always like, at one point he became a pro at picking out valuable paintings.
00:22:45.920 so our house was suddenly filled with hundreds and hundreds of like Soviet Union paintings
00:22:50.220 because that was part of what he was doing with his time but he was he's always been I don't know
00:22:56.440 hands in 12 buckets which is just right it's a lot which will which which by the way is prop
00:23:04.320 my guess is he probably could have been successful five years earlier if he had his hands in a few
00:23:08.340 less buckets because it's possible but it doesn't matter the point is is that is that it was one
00:23:13.940 thing, one aspect of his business started to work big and gave him traction. And from
00:23:20.940 there, he started building on that and building on that. And then suddenly the other things
00:23:24.620 flow through after. Okay. So at the end of the day, again, it's, it's, it's a very common
00:23:29.900 theme among success, whether it's in business or investing in the stock market, it doesn't
00:23:35.200 matter. It's literally less is typically more having a laser guided focus and not over
00:23:40.680 complicating stuff when it when it comes to investing right i'll tell you what people do
00:23:45.120 they over complicate trying to beat the market try to time the market uh what's the next shiny
00:23:53.500 object is it nfts is it the latest uh point offering when the fact is simple proven system
00:24:02.400 for investing when i land the but it's so easy you can't help but succeed at it same thing goes
00:24:09.240 for business and in life. It's a simple, like, you know, first things first, laser
00:24:13.220 diposition, and ultimately things start to, you know, before you
00:24:17.240 know it, you might have five or six things doing really well. You spoke a little
00:24:21.300 bit about having people around you that can make up for skills that you
00:24:25.300 lack. What about knowing when to fire somebody?
00:24:29.560 When do you let somebody go? How do you decide?
00:24:33.100 So, it's a good question, right? And so this is why
00:24:37.080 it's important i think to not if you're not naturally good at something you should still
00:24:44.180 spend some time at least bringing up your level as high as possible don't be one of these people
00:24:49.140 i don't like anything you're confused i don't know i don't and this because it makes it very
00:24:53.640 easy for people to bullshit you right so you want to have some basic understanding of all aspects of
00:24:59.700 your business right but you know i'm a big believer in letting um letting performance speak for itself 0.77
00:25:05.260 and not buy into words.
00:25:07.060 Words talk is cheap, performance matters.
00:25:09.740 So as a business owner,
00:25:11.740 you need to be tracking performance of your,
00:25:14.320 this is what really entrepreneurship is about
00:25:16.520 is finding the right people,
00:25:19.800 delegating authority in the right way,
00:25:21.660 but not just delegate recklessly or aimlessly.
00:25:24.620 It's like finding the best people
00:25:26.080 and then watching them, having KPIs,
00:25:28.420 keep performance indicators in place
00:25:30.100 and making sure that people are living up
00:25:32.120 to what they say they're doing
00:25:33.200 and not getting into this situation where you start to believe that someone's indispensable
00:25:37.700 i can't live without them no one but you mr or mrs business owner is indispensable anyone can be
00:25:45.440 replaced so you know you and and and the stronger you feel internally about your own skill sets that
00:25:50.980 you like you know especially the ability to go out and hire people like that's a sale like selling
00:25:56.180 people persuading people to come work for you to buy into your vision your dream your vision for
00:26:00.640 the future, right? So, you know, that's why I think for all people, they should become at least
00:26:04.400 proficient at selling and communicating because it cuts to everything, negotiation, all aspects
00:26:09.360 of business. But you don't want to be that person that thinks that each or any one person is so
00:26:16.120 important that you can't afford to let them go. That's bullshit, okay? You need to be watching 0.99
00:26:20.760 the people that you delegate to, having key performance indicators, looking, tracking numbers,
00:26:25.860 tracking the results, and remain accessible in your business. And if something's not working,
00:26:29.200 you give someone a warning the second one and they're gone and you replace them okay so it's
00:26:34.500 like three chances basically so maybe two wow okay it depends how listen it depends how egregious it
00:26:43.140 is sometimes you know someone will do something that if someone's i'll tell you even as bad as
00:26:47.740 incompetence is negativity i have no room and no tolerance for negative people in my business
00:26:54.280 if someone is negative it's like cancer you gotta cut it out really really fast so so i would not
00:26:59.180 even if someone has talent and doing a DCHO, they're negative. They're not towing the company
00:27:03.060 line. Rebel rousers, out. So you want to get rid of those people as quickly 1.00
00:27:07.220 as possible. And also, remember, some of this is to
00:27:11.020 attract late people. You also have to move to compensate people and make people feel like
00:27:15.180 partners. So it's like, you know, there's nothing wrong with having profit
00:27:19.040 sharing plans and incentivize people to feel like they're treating you like it's their business
00:27:23.140 as well. It's a crucial part of being a successful entrepreneur.
00:27:26.920 And I think also just remember that the worst position you could be in is to think or believe
00:27:33.660 that you're being held hostage by someone else.
00:27:38.220 Like you can't fire them because if you do, you'll be lost. 1.00
00:27:41.300 That is simply bullshit. 1.00
00:27:43.560 It is not true. 1.00
00:27:45.320 People are replaceable.
00:27:47.440 Okay.
00:27:47.640 There's no one that's so, you know, crucial that they can't be replaced, especially if
00:27:52.180 they have to do a good job because that's what you want to replace them, right?
00:27:54.160 So as an entrepreneur, you have to be willing to make those tough decisions.
00:27:59.080 Yeah, I definitely fell into that trap.
00:28:02.040 I was young, though, and naive.
00:28:04.240 I mean, I'm still fairly young and naive, but I definitely fell into that trap with some lawyers we were working with.
00:28:11.260 My whole family did, where it was they're indispensable for keeping things running.
00:28:15.360 It was like, what exactly do you do?
00:28:17.180 We're not even sure at all.
00:28:18.140 You wouldn't understand what we do.
00:28:19.720 It's so complex.
00:28:20.760 You don't have the business experience.
00:28:22.440 Like, just let us take it from here.
00:28:24.600 Plus a large chunk of your money.
00:28:26.060 They're gone now, but.
00:28:27.960 Exactly.
00:28:28.620 But they were good at it.
00:28:31.260 Yep.
00:28:31.520 So there you go.
00:28:32.180 I mean, then lawyers could be the worst, but they're, they come in all shapes and sizes
00:28:35.520 and all different, you know, facets of the business.
00:28:38.900 You have people that, you know, pretend to be great marketers and, you know, they talk
00:28:42.400 a big game, but when you really get down to what they're just all doing is delegating
00:28:45.540 it out to someone else.
00:28:47.580 You see it in manufacturing, you see, you see it all over the place.
00:28:50.860 So, again, that's what makes a CEO or an effective entrepreneur is that you're managing people.
00:28:56.840 And that means, you know, getting honest with yourself, getting honest about your business and not just looking at results and intuitively making decisions, actually analyzing data, keeping track of numbers, having your KPIs, your key performance indicators and keep track of things.
00:29:11.800 And if things are not working, intervene quickly.
00:29:13.800 Don't wait for things to get out of control.
00:29:15.540 Things typically don't improve by themselves.
00:29:17.340 If something is going in the wrong direction, do you have to intervene and take action to make it better?
00:29:22.140 Yeah, that's for sure.
00:29:23.040 We learned that too.
00:29:24.200 Because if you let that go, then those people that cause tiny problems end up causing extremely large year-long problems.
00:29:30.940 It's amazing how troublesome some people can be.
00:29:34.020 No, it's truly, and that's why, like, I'd rather, you know, I'm a big believer in trying to hire the best people, great talent, and pay them well.
00:29:42.960 Don't try to, sometimes, you know, the person that will work the cheapest is the most expensive person you'll ever hire.
00:29:47.340 Hey, everyone. What do you think of the episode? What do you think of Jordan Belfort? I'll give
00:29:53.300 my response to it in general impressions in my upcoming Q&A, but I'd like to hear what you guys
00:29:58.840 think too. If you haven't tried my hangover supplement, it's available at fullerhealth.com.
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00:30:54.680 fullerhealth.com enjoy the rest of this episode let me know your thoughts on it please given you
00:31:01.440 have a massive amount of wealth and success already why why bother with another book
00:31:07.700 You know, writing is one of those funny things to me.
00:31:10.960 It's something I hate writing.
00:31:12.420 I love having written.
00:31:14.080 And, you know, throughout my career, this is my fourth book now.
00:31:17.260 And I never really touched on the subject of investing before.
00:31:21.980 You know, I focused on entrepreneurship, sales, my life stories.
00:31:26.200 But, you know, I had some things happen with members of the family that I actually write about in the book.
00:31:32.660 But I know there's so many people out there that are successful, smart, educated, diligent.
00:31:39.460 But when it comes to putting the money that they've made to work, they screw it up.
00:31:44.180 They make decisions that are self-defeating.
00:31:47.240 They take advice from the wrong people.
00:31:49.880 They chase the latest story or shiny object, whatever that might be.
00:31:54.260 And because of that, when it comes time for them to retire or buy a house, whatever that might be,
00:31:59.100 they don't have the capital to do it in a way that they would otherwise be able to.
00:32:04.260 So for me, investing money in the right way, meaning not like there's a difference between
00:32:10.060 speculating and legitimate investing with the former being fun and you can make some
00:32:16.460 money with that.
00:32:17.500 But when it comes to really saving for your future and retirement, it's a very different
00:32:21.740 sort of a protocol required.
00:32:24.040 So this book really came out of a personal experience from someone in my family that
00:32:29.000 lost a lot of money, um, playing in the crypto in the short term trading world. I was like,
00:32:34.100 you know what? Enough is enough. I'm going to, I'm going to write a book that really shows
00:32:37.580 everybody, whether you're young, middle-aged or, you know, approaching retirement, the proper way
00:32:43.460 to take the hard earned money that you have from everything you've done and like put it to work
00:32:47.400 the right way so you can truly retire wealthy and with pride, dignity, and freedom. So that was the
00:32:53.620 impetus for writing the book. Okay. Do you get into your views on money managers, CFOs? Well,
00:33:00.080 maybe you don't have to put those two in the same category, but business people in general coming in,
00:33:05.120 taking a percentage of what you're going to make and saying, hey, I'll do it for you. Don't worry
00:33:08.920 about it. How do you feel about those guys? Yeah. Well, so, you know, generally speaking,
00:33:14.120 I think it's the last chapter I call the meet the fuckers instead of meet the fuckers, right? 0.99
00:33:18.380 So take on, I love that movie, right? 0.99
00:33:20.640 But I, listen, I think that, you know, the problem is, is that we've been trained and
00:33:26.880 conditioned to seek out experts to help us solve our problems, eliminate pain from everything,
00:33:33.500 whether it be, whether it be, you know, psychology, medicine, legal, the legal world.
00:33:37.940 You know, we've been taught rightfully so that when you have a problem, seek out an
00:33:40.980 expert, right?
00:33:42.840 Alas, Wall Street's the one exception where like the experts are going to cause you to
00:33:47.300 do far worse than you would do if you just did it yourself because the stock market's
00:33:53.840 a funny place.
00:33:54.500 It's like this is a vast sort of entity that where there's all the information on individual
00:34:00.920 stocks is readily available to everyone at the same time.
00:34:03.720 So unless you have some sort of edge, like you're working at Goldman Sachs with lightning
00:34:08.540 fast computers on the exchange, they're front running everybody, but in this sort of ultra
00:34:12.520 short term trading, the average person that tries to short term trade or the average money
00:34:17.280 manager that tries to beat the market, so to speak, the S&P 500, after their fees, their
00:34:23.320 commissions, and the pleasure they're under to actually engage in some short-term trading
00:34:27.840 because you want to see, if you give your money to a money manager, you expect to see
00:34:30.800 them do something, not just, oh, I'll buy the S&P 500 and index, right?
00:34:34.300 So what happens when it comes to Wall Street and investing, experts work against you.
00:34:40.740 They actually cause your returns to go down, not up.
00:34:43.640 And this has been proven like scientifically, mathematically with study after study after
00:34:49.220 study.
00:34:50.000 It's like the best and worst kept secret at the same time that the most surefire way
00:34:54.560 to really build wealth over time is through long-term investing and buying something like
00:35:01.200 the S&P 500, which in a fund list is ultra low fees, which is very tax efficient and
00:35:08.140 balancing that with some other investments as well, but primarily that and engaging in
00:35:13.200 speculation, which is a small amount that might have some fun. Hopefully, maybe you can make a
00:35:17.420 hit or not, but chances are you might lose more than you make in speculation. But this is obvious
00:35:23.100 to people that really know the deal on Wall Street. But if you turn on CNBC, they'll have
00:35:29.900 you think that you should be trading back and forth from crypto to oil to this stop to one
00:35:34.320 sector from AI into industrials. And by the way, it's a disaster. It doesn't work. It literally
00:35:41.380 does not work. And you would fall between those people that actually end up making any money at
00:35:47.380 all. And they certainly don't end up matching the index fund. So for example, if you look at
00:35:51.120 massive studies, I go through this in my book, by the way, and all the mutual funds since the
00:35:55.960 beginning of time and all the analyst recommendations for individual stocks since the beginning of time,
00:36:01.000 do not be simply investing in the S&P 500 and reinvesting your dividends and engaging in this
00:36:08.240 sort of long-term investing that allows you to have compound interest work in your favor.
00:36:15.960 And there are a couple of other things I'll explain as well in this podcast that
00:36:19.360 there's a really simple turnkey solution that even a small amount of money,
00:36:23.500 very small, like $10,000 can end up as a seven figure portfolio over time.
00:36:29.540 So that's the secret to this is to not try to like outsmart the market, not try to listen
00:36:35.820 to the latest person on TikTok or YouTube or Instagram say, here's the three honest
00:36:41.560 penny stops or honest tokens of the day.
00:36:44.480 And it's nonsense, like they're charlatans and they charge fees that at the end of the
00:36:49.380 day, it's really just going to separate you from your hard-earned money.
00:36:52.620 Do you think the people who are charging these fees do believe in their capabilities?
00:36:57.260 Like, oh no, I am good at this.
00:36:59.000 I do believe I can beat the S&P 500.
00:37:01.200 Or do you think they know that this isn't going to turn out well for their clients? 0.99
00:37:05.820 they must know unless they're deaf, dumb, and blind. 0.98
00:37:09.340 I mean, because it's like everyone knows. 0.98
00:37:11.760 Like, listen, there are some people,
00:37:13.600 there are some people who can beat the market
00:37:15.980 on a consistent basis.
00:37:18.040 There are a few, like a handful in the world.
00:37:20.980 The problem is they don't want your money.
00:37:22.220 They got to take your money.
00:37:23.440 They are managing billions of dollars
00:37:25.240 for their own capital,
00:37:26.460 and they'd be a couple of ultra-wealthy individuals.
00:37:29.340 That is a closed club.
00:37:30.660 And in fact, any of these so-called hedge funds,
00:37:32.800 if they get really hot and they are beating the S&P for a while,
00:37:37.580 guess what they do?
00:37:38.180 They'll close the town, the fund, give the money back.
00:37:41.040 They'll trade for themselves.
00:37:42.560 So in other words, it doesn't work.
00:37:45.200 Of course, there are anomalies here and there over time.
00:37:49.360 But generally speaking, when you look at all these mutual funds
00:37:52.780 and all these hedge funds, after you deduct the fees,
00:37:55.860 the expenses, and the expertise you have to pay
00:37:58.520 because they do a lot of short-term trading to try to beat the market,
00:38:01.540 you end up going backwards, not forwards.
00:38:04.260 And what's even worse is that there's a very profound difference
00:38:09.300 between an 11% annual return and a 7% or 6% annual return
00:38:13.880 when it comes to long-term compounding.
00:38:16.160 So something that's compounding at 11% a year,
00:38:19.240 after like 25 years, it's going to be a massive amount of money.
00:38:22.380 Like it makes a huge difference.
00:38:24.460 If it's at 6% or 5%, you're nowhere in 25.
00:38:27.700 You're still at the start and you say, how come it's not working?
00:38:30.600 How come it's not working?
00:38:31.380 And I think that's what kind of trips to go up is they look at the amount of money and say, okay, I have $5,000 to invest or $10,000, right?
00:38:39.460 Whatever, it's $50,000, right?
00:38:41.160 How am I going to get rich?
00:38:42.500 How am I going to really end up with anything substantial enough to make my life awesome when I'm ready to retire unless I find the next Apple or the next Bitcoin or the next Microsoft?
00:38:53.860 So they fall to this trap of thinking that unless you have a huge amount of money, a
00:39:00.300 10% return is not sufficient to get anywhere.
00:39:03.220 But that's not true.
00:39:04.940 A 10% return over time with compounding becomes massive, especially if you're doing things
00:39:12.340 like reinvesting your dividends and you're making little contributions along the way.
00:39:16.680 There's a couple of things that you do, and then you balance that with some bonds in there
00:39:21.420 as well, especially as you get older.
00:39:22.860 but this is like a surefire way to have a really heavy portfolio. I mean, mass amounts of money
00:39:30.900 when you're older and ready to retire. It's not for someone who wants to get rich overnight.
00:39:35.140 It's not what the stock market doesn't work that way. That's a trap. Okay. So, you know,
00:39:39.400 I wrote this book for people who are saying, listen, you know, I'm working hard. I have
00:39:43.540 some money to invest, but I want to invest the right way. So I know, and then 20, 30 years from
00:39:48.200 now when I'm ready to retire or, you know, people are really retired as early as these days, maybe,
00:39:52.080 you just want to be kind of cutting back on your work, right?
00:39:54.880 And be able to enjoy life more, right?
00:39:56.860 You're going to almost be assured to have a multi-million dollar portfolio,
00:40:01.200 provided that the world doesn't implode, okay?
00:40:04.700 But it might implode along the way here and there,
00:40:06.780 because there's always an implosion along the way.
00:40:08.940 But even then, it doesn't matter.
00:40:10.820 Over the last hundred years, that type of investment structure
00:40:14.600 pays off over the long term, every time.
00:40:17.960 Okay.
00:40:18.220 Right. So the S&P 500, that seems to be stable enough, even with like the financial crisis in 2008, even with these crises, if you just stay long term, you can kind of see it through.
00:40:32.960 So, yeah. So here's the way it works, right? So in any given year, the S&P 500 might go up or might go down, right? Generally for up more years than down, but generally it could go up or down.
00:40:45.880 So if you are looking to invest with a 12-month horizon,
00:40:49.700 you're taking all your money and putting it into the S&P, right?
00:40:53.060 You might lose that year.
00:40:55.020 You might go backwards 5% or 8%.
00:40:57.140 In the worst year, maybe 25% even.
00:40:59.020 That's like the worst, worst year of all, right?
00:41:01.200 But over five years, suddenly, wait a second.
00:41:04.560 I'm actually, the worst we'll have is I'll probably break even.
00:41:07.760 Over 10 years, I'll probably make a little money.
00:41:09.780 But once you get past the 10-year horizon,
00:41:12.460 there's not one time in the history of the stock market
00:41:14.560 when that investment doesn't pay off massively over the long term.
00:41:18.840 So I think what people have to realize is there are no get-rich-quick schemes in the market.
00:41:25.680 It doesn't work.
00:41:27.120 That's not what the market is meant for, okay?
00:41:30.220 What it is, you have a business or a job, whatever you do, that makes you an income of some sort,
00:41:36.060 and you take some savings and you keep investing month by month by month, little by little.
00:41:41.980 And when you do that using the strategy that I lay out in the book, which is a combination of the S&P and a couple other things, it literally, it's like it's almost a blueprint for success unless the world implodes completely and goes, well, then it doesn't really matter, right?
00:41:56.720 We're all screwed anyway, so what does it matter at that point?
00:41:59.100 But assuming that the world stays generally like still it's the world that we know, you'd be hard-pressed not to have a really, really successful portfolio that's going to allow you to retire and live the life you want.
00:42:13.640 And you might, if you're young, right, under your late teens or early 20s, you're going to be close to it.
00:42:18.020 You'll have a massive amount of money.
00:42:18.980 You'll be in your 50s.
00:42:20.560 But you have to realize the trap that you might fall into is that in the beginning, it doesn't seem to be working.
00:42:27.600 Because you're like, I don't understand.
00:42:28.680 it's like watching Patriot. I mean, I'm up 15% this year, but I only had 10,000. I have 11.5.
00:42:34.400 How does that help me? But that starts to change very quickly as time goes by and you start
00:42:41.040 compounding your returns. And the S&P also has some really big years over time. So you could
00:42:46.960 just draw a map since the beginning of the 1920s and go back and say, any point in time,
00:42:51.920 any 30-year period, you're going to end up really, really well by doing that.
00:42:56.380 Hmm. So dad got quite a bit of money when he stopped becoming a professor, which is just what happens when you basically retire. And that was immediately taken by a bank in Canada. And then we had a money manager and it's underperformed the SMP for forever. And the money manager takes their fees and everything. So we're obviously we're getting away from that. But why is that the norm? Why is a money manager the norm as opposed to just investing yourself? How did that even become a position?
00:43:26.060 Sure.
00:43:26.680 So this goes back, and that's like, you know, one of the things I talk about in the book
00:43:30.120 is something called the Wall Street fee machine complex, like the military industrial complex,
00:43:35.960 which exists to essentially feed on itself.
00:43:38.600 So it's a sort of combination between Wall Street, Washington, D.C., Madison Avenue,
00:43:43.240 and like, you know, the media.
00:43:45.220 And they create this perception through mass advertising and mass brainwashing that you
00:43:51.840 should be giving your money to the experts in the financial community.
00:43:55.180 because they could do a better job at managing your money than you can.
00:43:58.320 Now, here's the irony.
00:44:00.160 That was probably almost true.
00:44:03.400 Well, let's just say managing your money yourself
00:44:05.220 was very, very difficult before 1980.
00:44:09.980 Their vehicles didn't really exist.
00:44:12.960 It didn't exist, okay?
00:44:14.760 And mutual funds were charging exorbitant fees,
00:44:18.380 but the problem was the average person on Main Street
00:44:22.320 did not have access to information. In the same way you did on Wall Street, there was no internet,
00:44:27.160 right? So you read about some things in the Wall Street Journal the next day, yet on Wall Street,
00:44:31.520 they're getting news delivered real time to their desks, and the traders are one step ahead,
00:44:35.240 right? And you also had no index funds. You didn't have an S&P 500 index fund until 1977.
00:44:42.140 So there was an S&P 500, but it wasn't an index fund. It was an index. So there's a very big
00:44:48.760 difference between an index and an index fund.
00:44:51.760 An index is something you would just track.
00:44:54.020 So you say, oh, the S&P or the Dow Jones is up 5% or 3% or 15% this year.
00:45:00.140 Great.
00:45:00.940 So what does that mean for investors?
00:45:02.400 You can't buy the S&P.
00:45:03.960 You couldn't buy the S&P by budget or the Dow didn't exist.
00:45:07.520 So the only way you could then take advantage of the general stock, what was have a stock
00:45:12.080 broker or money manager that had the capabilities in the in-house research departments and the
00:45:18.280 execution abilities to go out there and buy these big stocks and keep themselves informed.
00:45:24.100 So yes, in this 40s, 50s, 60s, 70s, maybe in the 80s, it started to change, right?
00:45:30.180 But what happened is in the 80s, with the beginning of Vanguard was the first one to
00:45:34.080 have an S&P 500 index fund, it was a game-changing moment.
00:45:39.400 Game-changing, changed everything.
00:45:41.540 And in fact, Wall Street did everything they could to suppress it.
00:45:44.760 They smeared Van Gogh. They smeared the founder, Jack Bogle, called him a fraud, did everything they could to stop this information from getting out to the public.
00:45:54.260 And they still do it today with like, you know, propaganda on CNBC.
00:45:58.660 It's like a joke. If you watch CNBC, then how do you think that the best investments are short terms, option trading, going from this stock to this stock, to oil, to crypto?
00:46:06.320 They literally are out there giving the public this sort of, you know, false belief about
00:46:13.180 what it means to invest in the stock market.
00:46:15.480 In fact, the scientific, the mathematical studies are conclusive.
00:46:19.680 They're conclusive.
00:46:20.780 The best investment of all is literally S&P 500 index fund, balanced by a couple of other
00:46:27.380 things, but primarily that, right?
00:46:29.640 And reinvesting your dividends, making frequent contributions small as they might be or as
00:46:35.660 because that'd be along the way. And if you do that, you're going to blow away like 97% plus of
00:46:41.860 all the fund managers out there on a consistent basis. You can't, Warren Buffett's got a great
00:46:46.960 saying, because I'd rather give my money to a bunch of blind monkeys throwing darts at the S&P.
00:46:52.200 They'll do better than the money managers than usual. And they can't compete with the blind 1.00
00:46:55.320 monkeys. The problem is there's not a lot of blind monkeys around throwing darts. So essentially the 1.00
00:47:00.120 S&P 500 index fund, which was invented by Vanguard, right? And now it's like, you know,
00:47:05.280 it became one of those things where if you can't beat them, join them.
00:47:07.440 So now all the biggest, you know, firms have their own version of that,
00:47:11.340 whether it's Blackwrap or Schwab, they all have, and in the book,
00:47:14.360 I go through the top, the best ones of all, right?
00:47:16.760 But that literally was like, it's almost like this,
00:47:19.580 this, it's like a shortcut to beating the market on a consistent basis.
00:47:25.320 And what happens is that Wall Street is like,
00:47:27.580 it's a bad rap because here's the deal.
00:47:29.600 Wall Street's vital.
00:47:30.780 You know, we need Wall Street.
00:47:32.060 We need a strong investment banking arm to the country.
00:47:35.720 We need to have a financial system that's supported with people that sell bonds and whatnot.
00:47:40.100 The problem is that's Wall Street's useful role.
00:47:42.580 They have in their not-so-useful role, which is to convince the average person to trade in and out of these instruments, right?
00:47:49.840 And it works against them.
00:47:52.300 So by essentially following the advice in my book, it's like the ultimate hack.
00:47:56.080 I call it the ultimate investment hack, right?
00:47:57.500 Because it allows you to take the very best that Wall Street does.
00:48:01.220 all the value that wall street does create because they take these companies public all these
00:48:05.640 companies in the s&p 500 they were once small companies that became big companies right and
00:48:10.980 they went through the investment banking um firms like goldman sachs or mortgage sales whatever they
00:48:15.880 might be right at the time some are very old but what happens is once that value is created if the
00:48:21.760 company succeeds guess what it becomes part of the index it becomes part of the s&p 500 okay so
00:48:27.800 you're going to capture it anyway so you have to play the game like if you try to play wall street's
00:48:32.780 game and fall into the trap of trying to buy individual stocks short-term trading switching
00:48:38.840 from sector to sector like i just bought like i watch tvs i'm like i can't believe they're saying 0.99
00:48:43.640 this shit like they're they're making people believe that because now that the economy's 0.97
00:48:48.240 slowing you should take your money out of the industrial sector and put it to safer sectors 0.99
00:48:52.620 like consumer props. 0.81
00:48:54.120 It's like, what a freaking joke.
00:48:55.700 It's like, everyone knows it doesn't work.
00:48:58.020 History has proven that by the time you think you should be doing it,
00:49:01.280 you should probably be doing the opposite anyway.
00:49:03.240 But the point is you don't have to even deal with any of the short-term stuff.
00:49:06.620 You have to take a long-term view of the market.
00:49:10.860 Let Wall Street do all their work in creating value,
00:49:13.620 taking companies public, providing them with financing,
00:49:16.240 taking all that stuff, but you don't trade in and out of things.
00:49:20.820 You hold the S&P 500, which, by the way, changes.
00:49:25.140 The 500 companies in the S&P 500 today are not the same ones that were there last year.
00:49:31.360 Not all of them.
00:49:32.500 Every quarter, the index committee meets and they remove companies that aren't doing as well,
00:49:37.180 are becoming less relevant.
00:49:38.460 They change the weighting of each sector.
00:49:40.640 So as the economy moves to more of a computer informational economy, the S&Ps may have more
00:49:45.560 of those stops versus industrial stops, right?
00:49:48.360 So you have 50,000 employees or 34,000 employees at the Standard & Poor's working every day
00:49:55.660 tirelessly to try to come up with these best 500 companies, and then you have a company
00:49:59.960 like a Vanguard or whatever, or like competitors, that have created this ultra-low-cost index
00:50:05.000 fund, and you can just buy that, and you sidestep all the bullshit that Wall Street and the 0.93
00:50:11.580 theme machine complex is slinging at you. 0.73
00:50:13.520 and by doing that you set yourself up for massive success over both the short and especially the
00:50:19.840 long term that's the way it works you know it's funny before you asked questions you said like
00:50:23.660 you know you know do these money managers they have any use at all and i was like well no not
00:50:28.320 really but the truth is though is this is there's another side to this which is like financial
00:50:33.060 planners right which can be useful in the sense of tax planning right of you know what accounts
00:50:40.140 should I use? Should a certain tax-free accounts, and it differs by country. So, you know, the United
00:50:46.280 States, we have our 401ks, we have our IRAs, our Roth IRAs. So there's sort of these vehicles. How
00:50:51.740 do I minimize my taxable income as well when I invest? There's a part of that in my estate
00:50:57.240 playing. So for those sorts of things, yes, if you have enough, a certain amount of money, it might
00:51:02.480 make sense to seek out an expert for that. But if they start to tell you what you should be buying
00:51:09.520 and selling and having you engaging in short-term trading or going from this sector to that sector, 0.99
00:51:14.620 just run the other fucking way. Okay. Because that's a very different thing than giving someone 0.99
00:51:19.880 proper advice on how to structure their taxes and their retirement, different things. You have to
00:51:24.660 kind of distinguish that from investing advice. That makes sense? Yeah. Yeah. These people are
00:51:30.540 very good at talking themselves up. Like, oh, I'm the, I'm the best around. This will help you.
00:51:35.540 You don't know what you're doing.
00:51:36.940 Let us do it.
00:51:38.160 It's the one exception to the rule of, I should seek out an expert to help me get a better
00:51:44.440 result.
00:51:45.320 It's the opposite.
00:51:47.360 If you're going to need surgery, I'd suggest you go get the world's best surgeon to operate
00:51:53.240 on you.
00:51:53.760 Don't pick up a scalpel and take a mirror and try to cut yourself open and do a appendectomy.
00:51:57.580 It's probably not going to end well for you, right?
00:51:59.520 If you're going to give birth, go get a great midwife or a great gynecologist or obstetrician
00:52:05.540 who's going to help deliver the baby to make sure it all goes well. So, you know, commonly,
00:52:09.900 yes, if you get a hat, if your pipes break, you call a plumber. Let the plumber go fix the pipes
00:52:13.680 yourself, right? If electricity's not working, don't try to fix your electricity. I'll call
00:52:18.060 the electrician, right? That's how life works, except when it comes to investing. When it comes
00:52:25.520 to investing, it's the one industry where experts take more value than they give, okay? They take
00:52:34.620 more than they give. Bottom line, they're unable to add value beyond what they charge in fees,
00:52:41.900 commissions, and whatnot. And this is a well-known thing on people on Wall Street who really know the
00:52:49.240 deal and are willing to be honest. Warren Buffett's been screaming this from the ill tops for God
00:52:53.480 knows how long. And there's other great examples of famous studies that were done where they
00:52:58.660 almost get ironic at the DM and they'll say, maybe there are some money managers out there
00:53:04.080 that have this special ability to beat them off
00:53:07.200 on a consistent basis,
00:53:08.760 I just can't seem to find that.
00:53:10.800 It's like, right, so like, but even there, you know,
00:53:13.460 and there are a few out there, no doubt, that do this,
00:53:15.820 but they're not available to the average person.
00:53:17.940 They're not taking your money.
00:53:19.140 They don't need to, they don't want to, so they don't.
00:53:21.260 That makes sense.
00:53:22.900 Can you tell a difference between someone
00:53:24.320 who's very good at sales
00:53:25.400 and just selling you on, say, a course
00:53:28.120 and a valuable course?
00:53:30.300 Is there any way to actually decipher that 0.97
00:53:32.160 through the internet or is it kind of a crap shoot? Yeah. Well, no. Listen, the good news is 0.97
00:53:38.960 if you're really going to do your due diligence and, you know, look at reviews and go online and
00:53:43.580 go deeper than the first page of Google and, you know, really to you, the thing you don't want to
00:53:48.740 do is go onto someone's landing page, watch five testimonials and then say, oh my God, these people
00:53:54.360 are doing so well. I can do it. That's not enough research, right? You want to really check the
00:53:59.280 market to find out which of these courses, which of these mentors is the real deal and which is 1.00
00:54:04.440 not full of shit. And you're going to find most of them are full of shit and that don't have 1.00
00:54:08.960 reputations. But there are some that have really good reputations. There are a few, okay? But 1.00
00:54:15.200 they're few and far between. And you have to do the research online. If they wrote a book,
00:54:20.780 check out their book. These are really inexpensive ways to really find out about
00:54:26.060 real estate or any other thing right is read their book if they have one how are the reviews on
00:54:30.200 amazon or whatever else do your research and and i think it's pretty easy to to smell out the 0.97
00:54:37.500 bullshit okay what's real and what's not and unfortunately most of the time it's going to be 0.98
00:54:42.120 bullshit so um how do you feel about these people i mean you see all these get rich quick schemes 1.00
00:54:47.740 online and one of them is take take a small investment put it into property rent the property 0.99
00:54:53.440 This is all over like TikTok and Instagram.
00:54:55.860 And then you can bring in passive income by renting all these multiple properties that
00:54:59.360 you've taken out loans on, you know, does that, does that, does that work?
00:55:03.880 Or is that just one of these get rich quick schemes?
00:55:07.700 Well, no, I mean, property investment can be great, right?
00:55:11.980 But there's rules and strategies to the property game.
00:55:16.660 You have to know what you're doing.
00:55:18.020 Now, I'm sure like if you look at 10 different products out there, they're teaching this 0.99
00:55:23.400 probably, you know, seven of them are completely full of shit where they just regurgitated 0.99
00:55:28.400 information from someone else that actually knew what they were doing. But if you have a great 0.99
00:55:32.220 mentor that knows how to find real estate and we have a rehab it or rent it out, you can do very
00:55:39.780 well like that. Okay. But, but the problem is that like most of the people who were on there
00:55:45.780 hawking their swears on TikTok or whatever, uh, they're shalteds. They don't really know what
00:55:50.820 they're doing. They just get a book on someone else's book and they're regurgitating the same
00:55:55.380 information. I actually know my own sales stuff. I had people take my stuff and they change one
00:55:59.500 word and pass them. They don't even change a word. They pass it off as their own. They're the greatest
00:56:02.300 sales trainer now, right? Some of them are okay, all right? But again, it requires you,
00:56:11.060 you have to get yourself to be an effective real estate person. You have to study the business,
00:56:16.500 get a great mentor and watch it.
00:56:20.080 It's not like this whole notion,
00:56:21.860 oh, it's simple to lie in bed,
00:56:23.320 press a button and become
00:56:24.220 a billionaire property investor. 1.00
00:56:26.200 It's bullshit. 1.00
00:56:27.260 And a lot of these things also that like, 1.00
00:56:29.080 you know, there's like,
00:56:30.340 there's parts of it that are healthy
00:56:32.500 because, okay,
00:56:33.700 maybe they're giving you some information,
00:56:35.620 but then they always looking to upsell you
00:56:37.460 into the next level, the next level.
00:56:39.380 And so while the initial information
00:56:41.140 might be very sound,
00:56:42.900 they will make you really big,
00:56:43.980 but you really,
00:56:44.400 you really want to find the properties
00:56:45.780 and hire us $10,000 a month into our mastermind program
00:56:49.800 and blah, blah, blah.
00:56:50.600 And suddenly, you realize that at the end of the day,
00:56:53.700 most of the profits that you made on real estate
00:56:55.160 are being cannibalized by the fees they're charging
00:56:56.780 to be your mentor.
00:56:57.800 So you have to be very, very careful
00:56:59.360 because frankly, almost everything you need to know
00:57:02.420 about buying great real estate,
00:57:03.680 you can find online for free.
00:57:05.660 Free programs, free products.
00:57:07.640 And there's nothing worth paying money for a product as well
00:57:10.520 if it's very well organized and very well done
00:57:12.540 by a credible person.
00:57:13.900 but there are a lot of landlines out there for every legitimate one of properties by the most
00:57:19.860 legitimate one of all is, is the same thing goes for every other investment. It's crypto, oil,
00:57:25.680 currency trade, those are all just complete pieces of shit. I mean, maybe one works, 1.00
00:57:33.040 probably not. Okay. But you know, I believe real estate's a good investment. You have to be just
00:57:37.560 very careful who you use as a mentor and to also not over leverage because a lot of these places
00:57:42.240 they're relying on using massive leverage and leverage is really good when the market's going
00:57:46.120 up and then it's not so great when the market starts dropping and you can't refinance and
00:57:49.800 and your apartment or your house is empty and or airbnb is getting cracked down or a certain city
00:57:54.860 and before you know it you're upside down and all sorts of i i don't have that my cameraman is
00:57:59.200 sitting there i had the same exact thing exact thing okay where he you'll follow one of these
00:58:03.920 courses and he got upside down on a couple of things and he's working his way out of it okay
00:58:07.360 that's what you do but but it's very easy to to lose in that game if you don't know what you're
00:58:11.980 doing. Yeah. Are you ever concerned? I hear a lot on the internet. I've talked to a lot of people
00:58:18.280 about how Vanguard is. I'm probably more on the conspiratorial side of YouTube, but how Vanguard
00:58:26.840 and BlackRock are slowly taking over the world. And do you think investing into their funds,
00:58:33.280 is that morally okay? I think that's exaggerated someone. And I obviously am aware of that,
00:58:39.780 And I think that's, you know, what's really happening is this.
00:58:43.200 So these large, massive funds, right, BlackRock, Vanguard, right,
00:58:49.320 when you put your money there, they're buying shares on your behalf.
00:58:52.660 They're buying these companies on your behalf, right, the index, right?
00:58:55.860 So and then you have the stock in what's called street name,
00:58:59.000 meaning the stock is being held in street name.
00:59:01.120 So theoretically, they have your vote.
00:59:03.280 But if you think that these companies are literally just radically,
00:59:06.520 I don't believe it.
00:59:07.440 I think it's a mass exaggeration that these companies are radically pushing the woke agenda.
00:59:11.720 I think the woke agenda is coming from somewhere else.
00:59:13.360 And I hate the woke agenda as much as anybody else, but probably more than your dad. 0.82
00:59:16.860 I despise it. 1.00
00:59:17.720 I think it's ridiculous. 0.99
00:59:18.600 I think it's the death of the world is the woke. 1.00
00:59:21.620 I think it's just idiotic, the whole thing, all right? 1.00
00:59:23.740 So I'm on the same page with you on that stuff, right? 0.99
00:59:26.740 But I don't think that that is what's really driving it all.
00:59:29.960 in fact any inkling of that maybe there was a moment in time where they were like sort of
00:59:35.840 pushing this sort of you know you know woke agenda more or this sort of you know righteous
00:59:40.240 investing that's falling out of favor right now like everyone's saying wait a second we're losing 0.97
00:59:44.880 our shirts of this shit in hollywood or whatnot or bud light and people are very quickly realizing 0.90
00:59:50.040 now that you know what the business of business is business not social change right and i think 0.98
00:59:55.940 that that is dramatically falling out of vote um and and i don't think that is what's going to drive
01:00:02.440 things in one direction or the other i don't think it's that so i think that's a bit overblown
01:00:06.620 uh and certainly i think the trend is going away from that people are resisting now
01:00:10.960 this social change through investing so i think it's it's on the way out okay i hope you're right
01:00:16.020 i think you are right it doesn't seem as cool as it was in 2016 2018 it's not working it's just
01:00:21.300 It's not working.
01:00:22.360 It was like a failed experiment, right?
01:00:24.660 I mean, how many movies have you seen like that?
01:00:26.420 I didn't watch them. 0.98
01:00:27.460 Like, when I put on a movie, as soon as I see some woke-confused bullshit, I turn it off. 0.80
01:00:32.140 I'm like, I don't want to be preached to and moralized to when I watch movies or when I buy what beer I buy. 0.99
01:00:38.200 If you're a beer manufacturer, sell freaking beer. 0.93
01:00:40.780 You know what I'm saying? 0.92
01:00:41.680 Now, if your business is the woke agenda, okay, fair enough.
01:00:45.040 That's what you do.
01:00:46.080 You're into the woke agenda.
01:00:47.240 That's your core business.
01:00:48.120 at your people, but to try to infuse it to general businesses has turned out to be a nightmare. And
01:00:52.840 everyone's getting away from it right now because it's costing them massive billions and billions
01:00:58.380 of dollars in lost shareholder value. That was very interesting. Valuable information about
01:01:03.440 investing for sure. And firing people. That was great. And here's a book, by the way,
01:01:08.880 The Wolf of Investors. I believe in this so much. I believe every person should have the benefit of
01:01:13.580 knowing what's in this book because as soon as you do, you're going to change the way you're
01:01:17.140 investing and you start getting results versus getting blown out with the latest craze or
01:01:22.480 whatever investment craze is out there. So it's a crucial skill set, Bab. Thank you again.
01:01:27.740 My pleasure. Nice to speak to you, Miguel.