Valuetainment - May 01, 2025


10 Rules To Explode Your Business Valuation as an Entrepreneur

Hosted by
Patrick Bet-David
Mentioned
Berkshire Hathaway Tim Cook Warren Buffett Steve Jobs Meta Nexcel Tesla Dude
＂Hostile & Political Act＂ - Amazon SLAMMED For Forcing Trump Tariff Prices On ALL Products ＂Who The Hell Talks Like That？＂ – Adidas CEO's PATHETIC Tariff Warning Gets TORCHED

Episode Stats


Length

10 minutes

Words per minute

212.48

Word count

2,237

Sentence count

226

Harmful content

Misogyny

2

sentences flagged

Toxicity

3

sentences flagged

Hate speech

1

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

What's the difference between a $100 million business and a $1 Trillion business? Is it hard work, innovation, or a fancier degree? In this episode, we take a look at the top 9 companies that have a market cap of over a trillion dollars.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 So I'm having a meeting with my executives last week and I asked them a question.
00:00:02.640 I said, what do you think is the difference between somebody, a group of people that build
00:00:05.360 a hundred million auto company versus a billion?
00:00:08.180 Did these guys work harder?
00:00:09.620 What did they do different?
00:00:10.540 Is there a pattern or a billion auto company versus 10 billion?
00:00:13.840 They're both billion, but it's 10 times higher or the 10 billion auto company versus a hundred
00:00:17.940 billion or a hundred billion versus a trillion.
00:00:20.520 What is the big difference?
00:00:22.040 Is it hard work?
00:00:23.000 Is it innovation?
00:00:23.900 Is it a fancier degree?
00:00:25.300 What is it?
00:00:25.740 We looked at the list of biggest companies in America that are publicly traded.
00:00:30.140 Here's the pattern we found out.
00:00:31.200 So between a billion to a hundred billion, there's 3,500 of those companies in America,
00:00:37.100 a billion to a hundred billion, a hundred billion to a trillion, only 166 and over a trillion,
00:00:43.500 only nine.
00:00:44.660 And when we looked at the nine companies that are over a trillion dollars or have been over
00:00:49.440 a trillion dollars, we found eight patterns and trends that I'm going to share with you
00:00:54.200 in today's video.
00:00:55.740 Stick around to the very end.
00:01:05.380 I'm going to give you the notes here that I have in a new circle.
00:01:08.380 We're starting on Manac, exclusive for entrepreneurs, executive, and salespeople.
00:01:12.600 I'll give you the link at the end.
00:01:14.080 So the $9 trillion companies, ready?
00:01:17.780 We got Apple, Microsoft.
00:01:19.940 And by the way, when I'm saying these names, I want you to see if you notice a pattern.
00:01:22.500 Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, Berkshire Hathaway, Tesla, and Broadcom.
00:01:30.180 What patterns do we notice?
00:01:31.540 A few things.
00:01:32.580 One, when you think about the $100 million business versus the trillion dollar business,
00:01:38.640 is the trillion dollar business solves a bigger problem than the other guys do.
00:01:44.060 Very simple.
00:01:44.980 They solve a bigger problem.
00:01:46.380 What problem did Amazon solve?
00:01:48.560 Simple problem.
00:01:49.620 I got to go to the bookstore.
00:01:50.860 Give me a break.
00:01:52.040 Man, I can just order it here.
00:01:53.440 Easy.
00:01:54.120 Read it on my phone.
00:01:54.900 I don't need to take 20 minutes to go and get it.
00:01:56.660 Babe, do we need to order that stuff?
00:01:58.120 Oh, man, I don't really feel like going out.
00:01:59.940 Order it.
00:02:01.040 Here's your shipment.
00:02:01.980 Big problem.
00:02:02.660 Comes to you.
00:02:03.580 Easy, smooth, right?
00:02:04.860 A bigger problem.
00:02:06.280 Microsoft, bigger problem.
00:02:08.080 Apple, bigger problem.
00:02:09.920 Meta, bigger problem.
00:02:11.680 Berkshire Hathaway is the other one that's not a bigger problem.
00:02:14.180 They're just investors.
00:02:15.120 They're patients.
00:02:15.740 They're different than others.
00:02:17.060 Tesla, bigger problem.
00:02:18.560 Broadcom.
00:02:19.260 What else do you notice?
00:02:20.060 Number two, the market for it.
00:02:22.200 Massive market on how big it could be.
00:02:24.700 Either they created the market or they went and took the market share from others.
00:02:29.040 The car market, how big is it?
00:02:31.060 Massive.
00:02:31.880 Nobody for decades has been wanting to go compete in there.
00:02:34.940 He came in, took the market, took it away from others.
00:02:38.580 The market cap hits a trillion.
00:02:39.740 These are the car companies like, what the hell is going on?
00:02:42.300 But a bigger market share.
00:02:43.900 Microsoft, software, took it.
00:02:46.400 Gaming, took it, right?
00:02:48.020 That's Microsoft.
00:02:49.240 Amazon, massive market.
00:02:51.100 So the bigger the market that they have, the bigger the problem you solve.
00:02:54.520 I can make more money because there's more pool within that market versus let's just say
00:02:58.620 I'm selling a hook, right?
00:03:00.620 Yeah, there's a market for it, but how big is the market?
00:03:03.640 How much money can be made in it?
00:03:05.240 It's not a lot.
00:03:06.040 So number one is problem.
00:03:07.900 Number two is the size of the market.
00:03:09.560 Number three is integrated.
00:03:11.660 If you think about a flywheel effect of an integrated business of what feeds what.
00:03:16.560 Look at Apple.
00:03:17.700 When you get a green text from somebody, what's your reaction?
00:03:20.520 Do you not almost a little bit not like that person?
00:03:22.800 Do you know what I'm saying?
00:03:23.440 You're like, dude, can you convert to the blue community already?
00:03:26.820 I'm on, I can't text you when I'm on a flight.
00:03:29.040 That integrated business is forcing you to not like droid people to get them converted into 1.00
00:03:34.640 Apple because they did a better job than Android creating a integrated business.
00:03:40.060 So then you buy the earpiece for $600.
00:03:42.780 Then you buy the iPad that communicates with the Mac, that communicates with the phone,
00:03:46.780 that finds your phone for you.
00:03:48.400 Then you download the music.
00:03:49.900 It's all integrated.
00:03:51.080 Microsoft, all integrated.
00:03:53.520 Amazon, now all integrated.
00:03:55.340 You go to Whole Foods.
00:03:56.600 Hey, put down your Amazon Prime this.
00:03:58.620 It's all integrated, right?
00:04:00.340 Again, not all of them, but most of them, even Tesla, battery, charger, car, system, update.
00:04:07.620 It's integrated.
00:04:08.640 So again, one, the problem they solve.
00:04:11.100 Two, the size of the market they take or create.
00:04:13.960 Three, it's integrated.
00:04:15.460 Number four, a big visionary is typically running that company.
00:04:19.260 Warren Buffett is a visionary.
00:04:20.560 He's not going away.
00:04:21.840 You know, one of his earlier employees, there's a story of a guy that put $12,000 in Berkshire
00:04:25.580 and Hathaway and never sold it.
00:04:27.020 Have you heard his story before?
00:04:28.120 I think he put $10,000 or $12,000.
00:04:29.780 Do you know he never took that money?
00:04:30.720 You know how much that $10,000 or $12,000 is worth today?
00:04:32.700 He's a billionaire.
00:04:34.040 He's a billionaire.
00:04:35.020 He put the money and he said, I believe in Warren Buffett's vision.
00:04:37.960 I think this guy's unique and he's going to keep going.
00:04:39.800 So you're banking on a visionary.
00:04:41.660 Musk, visionary.
00:04:42.820 Gates, visionary.
00:04:44.200 Jobs, visionary.
00:04:45.800 NVIDIA, visionary.
00:04:47.140 You're looking at the founder.
00:04:48.280 This guy's a visionary.
00:04:49.180 They're doing something, right?
00:04:50.460 So you got a big vision.
00:04:51.560 So again, problem, market, integrated vision.
00:04:55.280 Next one is leadership.
00:04:57.500 Their leadership, they both are and they recruit and attract.
00:05:01.300 So the more the clear division is they attract better leadership, better talent, brilliant
00:05:05.040 minds that want to come and work for this company because we're solving a bigger problem.
00:05:08.340 And they're willing to come because the company still has plenty of growth that I can grow
00:05:12.880 within the company.
00:05:13.620 So imagine if Tim Cook works at Apple.
00:05:16.180 Steve Jobs dies.
00:05:17.560 He decides to replace himself.
00:05:19.280 He nominates Tim Cook.
00:05:20.740 Tim Cook comes in.
00:05:21.780 He's a guy making a few hundred thousand dollars a year.
00:05:24.060 That's what he's doing.
00:05:24.940 And then all of a sudden comes in, takes the company that's worth a hundred billion.
00:05:29.360 That hundred billion dollar company becomes a three trillion dollar company.
00:05:32.420 Tim Cook is a billionaire.
00:05:33.400 So Tim Cook doesn't need to go start a company to be a billionaire.
00:05:36.000 There's a place there for him that if he takes it to the next level and he gets the trust
00:05:40.720 of jobs, there's plenty of opportunity.
00:05:43.140 So when there's a big vision and a visionary selling it, leaders are willing to come there
00:05:47.860 instead of start their own businesses because they don't need to.
00:05:50.480 I can bring my talent and my brain power and whatever I have here and we can grow it.
00:05:54.660 So it becomes a magnet to attract leaders.
00:05:57.880 Next, financial.
00:05:58.960 You need to be properly financed.
00:06:00.360 You need to have the money to be able to buy this stuff.
00:06:02.260 Apple's always sitting on a bunch of cash.
00:06:03.800 I think right now, if I'm not mistaken, Berkshire Hathaway, Warren Buffett is sitting on 200
00:06:08.480 billion dollars of cash, give or take.
00:06:10.540 I think Apple is sitting on the same amount of money, give or take.
00:06:13.280 What do you think happens when you have that kind of cash?
00:06:15.160 Picking up companies.
00:06:16.140 Let's buy those guys. 1.00
00:06:17.040 Let's buy these guys. 0.98
00:06:17.900 So Whole Foods integrated.
00:06:19.200 Go use our products.
00:06:20.240 And within automatically we have all these centers and the way they look at it is Whole Foods.
00:06:24.480 Why would Amazon buy Whole Foods?
00:06:26.240 It's all these other whatever 1200 locations.
00:06:28.400 I don't know the number that we can sell our products through.
00:06:30.620 Think about the way they see it.
00:06:32.040 So a lot of cash also allows me to acquire and have some good opportunities for acquisition.
00:06:38.080 Next one, number seven, technology.
00:06:39.580 Every one of them is pretty much a technology company outside of Berkshire Hathaway.
00:06:42.760 It's not.
00:06:43.600 Apple, tech.
00:06:44.780 Microsoft, tech.
00:06:46.100 NVIDIA, full on tech.
00:06:47.520 Amazon, tech.
00:06:49.000 Alphabet, tech.
00:06:50.600 Meta, tech.
00:06:51.820 Tesla, tech.
00:06:52.980 Broadcom, tech.
00:06:53.740 The only one that's not tech is Berkshire Hathaway.
00:06:55.440 So eight out of nine trillion dollar companies are all technology.
00:06:58.880 So what are you doing to accelerate your business and use technology?
00:07:03.040 I was running an insurance company.
00:07:04.700 It's worth $50 million.
00:07:05.940 I go to New York.
00:07:07.000 I meet with six investment bankers.
00:07:08.540 By the time I leave, I realize if I have the business the way it is, it's 5x EBITDA.
00:07:12.520 And then I find out how to become a 15x EBITDA when I sell the business.
00:07:15.700 I went from being able to sell a business for $50 million to $250 million because we became a tech-enabled insurance company.
00:07:21.100 A fintech insurance company, boom, somebody came and cut the check because of software that we had.
00:07:26.060 Technology is a very, very big part of accelerating the growth, and it's a pattern amongst the eight out of nine trillion dollar companies.
00:07:34.400 Next is scalable.
00:07:36.060 And what do I mean by scalable?
00:07:37.560 It's a product that can have a life of its own.
00:07:39.900 So think about this.
00:07:41.260 Apple, all of a sudden, got 100,000 downloads of this app.
00:07:44.960 It's a scalable product, right?
00:07:46.300 That, hey, did you see this new iPhone?
00:07:48.220 I don't have an iPhone.
00:07:49.100 I have a BlackBerry.
00:07:49.940 You have a BlackBerry?
00:07:51.220 You should see this new smartphone by Apple.
00:07:52.880 I'm not going to buy that phone.
00:07:54.240 Dude, you got to get it.
00:07:55.100 I'm not going to get it.
00:07:55.820 I'm a BlackBerry.
00:07:56.700 BlackBerry's never going away.
00:07:58.140 Nexcel's never going away.
00:07:59.040 Oh, yeah, you're going to be on an iPhone.
00:08:00.300 I'll never be on an iPhone.
00:08:01.740 You're on an iPhone, right?
00:08:03.540 Scalable.
00:08:04.400 Amazon, scalable.
00:08:05.540 What did you just order?
00:08:06.360 Dude, I just use Amazon.
00:08:07.300 You're kidding me.
00:08:07.840 No.
00:08:09.640 Everybody's using it, right?
00:08:10.520 Meta.
00:08:11.080 Hey, look at this picture.
00:08:12.700 Facebook, look at this.
00:08:14.020 Start an account.
00:08:14.880 What Facebook?
00:08:15.560 It's called the Facebook.
00:08:16.460 Why would I start it?
00:08:17.080 You get to post your pictures and stay in touch with your friends.
00:08:19.660 I'm not going to do that.
00:08:20.500 Yes, you are.
00:08:21.740 Three billion of you are going to do that, right?
00:08:23.820 So the product is built in a way that can all of a sudden have a life of its own and
00:08:28.120 be scalable.
00:08:28.680 That's not everybody.
00:08:29.640 Again, Berkshire Hathaway wouldn't be here.
00:08:31.580 Google.
00:08:32.220 Hey, just go Google it.
00:08:33.240 Let's Google it.
00:08:33.860 I use Yahoo.
00:08:34.540 Dude, go use Google.
00:08:35.400 It's better.
00:08:35.820 Really?
00:08:36.160 Yeah. 1.00
00:08:36.540 Shit, it is better, right? 1.00
00:08:37.620 Do you see how that works out? 0.99
00:08:38.620 Today, people are no longer Googling.
00:08:40.240 What are people doing today?
00:08:41.920 ChatGBT.
00:08:42.740 What's ChatGBT?
00:08:44.000 OpenAI.
00:08:44.960 Whose chips do they use?
00:08:46.280 What do they need help?
00:08:47.160 Do they need NVIDIA?
00:08:48.200 Every one of these guys need NVIDIA.
00:08:49.820 Think about like what direction this is going to, right?
00:08:52.200 So it's a product that can have a life of its own and it's scalable.
00:08:54.980 And I'm going to give you the last two that are bonuses.
00:08:56.600 The first one is government contracts.
00:08:58.520 Most of these guys have government contracts.
00:09:00.400 It gets to a point that the company is getting so big that the government kind of needs their
00:09:03.400 help.
00:09:03.780 You can debate that issue, CIA, all this other stuff.
00:09:06.240 So all I'm saying to you is the government is not as smart in technology.
00:09:10.880 So they go to companies like this saying, can you guys help us out?
00:09:13.740 Can you help us out with this?
00:09:15.060 Hey, we're having a hard time with this.
00:09:16.180 Can you help us out?
00:09:17.080 Sure.
00:09:17.700 And the last one, so government's number nine.
00:09:19.820 They get the big contracts from different governments around the world.
00:09:22.360 And the last one is time.
00:09:23.960 Time is on their side.
00:09:25.840 Berkshire Hathaway has time on its side.
00:09:28.680 But he bought and he waited until the valuation went up.
00:09:33.800 Okay.
00:09:34.220 Buy and hold.
00:09:34.960 They build these companies, Microsoft, and they just got better and better and better
00:09:39.160 and better and better.
00:09:40.740 They got time on their side as well.
00:09:42.640 You need that to be a billion dollar, $10 billion, $100 billion.
00:09:46.720 And if one day you want to be one of the $9 trillion companies that we have today.
00:09:50.800 Okay.
00:09:51.240 So if you got value out of this video, give it a thumbs up and subscribe to the channel.
00:09:54.240 And if you want these nodes and you want to network with others around the world that
00:09:57.840 are business owners, go download the Manect app, go to the circle.
00:10:01.820 I'm going to put the link below or the QR code.
00:10:03.840 It'll go directly to it.
00:10:05.280 It'll be $5 a month for the first hundred that registered on that circle.
00:10:09.420 You can do unlimited text messages, video, audio, all of that.
00:10:12.280 I'll be in it as well.
00:10:13.680 After that, the price will go to $25 a month.
00:10:16.380 But for the first hundred, it'll be $5 a month.
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00:10:30.440 Take care, everybody.
00:10:31.220 Bye-bye, bye-bye.