Valuetainment - October 11, 2018


Episode 186： 7 Types of Equity to Help You Make Millions

Topics
social and morale equity intellectual property
Hosted by
Patrick Bet-David
Mentioned
Sean Parker Mario Jeff Bezos Henri Charrier Patrick MidDavid Mark Zuckerberg Michael Burry Sean Kemp Snapchat Austin
Episode 185： Overcoming Insecurities - BetDavid Shares His 8 Step Formula Episode 187： How To Sell Your Business at the Highest Value

Episode Stats


Length

11 minutes

Words per minute

196.72

Word count

2,333

Sentence count

212

Harmful content

Toxicity

2

sentences flagged

Hate speech

1

sentences flagged


Summary

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

In this episode, I talk about 7 different forms of equity that can help you become a multimillionaire. 1. Having money is one of 7 ways of having equity. 2. Having the other 6 is much more important. 3. Having sweat equity is much better than having money. 4. You have to have more than one form of equity to be a millionaire. 5. Only 15% of millionaires in America inherited their millions of dollars, 85% are self-made. 6. You need to have at least one of the other 7 to make yourself irreplaceable in the marketplace.

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 .
Topics generated with Qwen2.5-3B-Instruct.
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach the sky, turn the stars up above, cause it's one time for the underdog, one time for the underdog.
00:00:17.300 I'm Patrick Bedevi, host of IT Minute, today I'm going to talk to you about 7 different forms of equity to help you make millions.
00:00:23.400 So I recently posted a picture of Jeff Bezos on my Instagram account, highlighting the fact that Amazon has increased value in the last 165 days by $400 billion, and the floodgates opened up with comments, and everybody started saying, this man, Jeff Bezos, who's worth $150, $160 billion, doesn't pay his 563,000 employees well, they're on welfare, similar to what happened with Walmart.
00:00:49.020 But the comment that I keep hearing over and over again, that is an absolute cop-out from people, is the following, you need money to make money.
00:00:59.020 It takes money to make money.
00:01:01.140 All of these people that like to hide behind the idea that rich people started off with money.
00:01:06.860 Here's a fact for you, only 15% of millionaires in America inherited their millions of dollars.
00:01:13.680 85% are self-made.
00:01:15.940 Matter of fact, having money is one of seven ways of having equity.
00:01:21.560 Today I'm going to share with you the other six.
00:01:28.300 So look, when we hear the word equity, we think about real estate, I have equity in a home, I have equity in a property, I have equity in stocks, I have equity in bonds, I have equity in cash.
00:01:35.700 That's equity, right?
00:01:36.460 We only think about equity as money.
00:01:38.000 If the only source of equity you have is money, you are one-dimensional.
00:01:41.840 Let me put it to you this way, if you, the only thing you have is money, because somebody died in your family and left you $17 million, and that's the only thing you have, and Mario has the other six elements of equity, long-term in the marketplace, there is no way in the world you have the same amount of value as Mario has in the marketplace.
00:01:59.960 So having said that, your goal watching this is, as I go through the other six, is to ask yourself, which one of these do I have?
00:02:07.620 Because if you want to make yourself irreplaceable, if you want to make yourself the highest value in the marketplace, your goal is to be able to have as many of these seven as possible.
00:02:17.600 Not just one of the seven, which is money, but also the other six.
00:02:20.900 So having said that, let me get into the other six elements of equity.
00:02:25.060 Number two.
00:02:25.780 So I want you to think about a son, a daughter, just inherited $17 million, but this kid has been spoiled.
00:02:31.520 22 years old, never had a job before, lazy as hell, dad died, mom died, they get the millions, right?
00:02:37.560 They have no clue how to work.
00:02:39.280 You know how quickly that money is going to disappear out of their hands?
00:02:42.360 Let me give you another example of this.
00:02:43.720 How many times have you seen somebody win the lotto?
00:02:45.680 $58 million winner, $220 million winner, three years later money disappears because they don't have the second part, which is sweat equity.
00:02:52.920 Here's what happens when you have sweat equity.
00:02:54.600 When you have sweat equity, you're not afraid of working 16-hour days for six months straight.
00:02:58.840 You have a certain mindset, a certain thickness, your skin is thick.
00:03:02.880 You have a certain dogfight that you can't explain to other people.
00:03:05.860 I can't give a 16-year-old kid a million dollars, say, go to school to get sweat equity.
00:03:10.740 You're not going to get it.
00:03:11.820 I can't give a 28-year-old after they got a degree, let's just say they're very small, but they've never had a job, saying,
00:03:17.460 I'm going to put a half a million dollars into you to go to this program to learn what real hard work's all about.
00:03:21.620 You either have sweat equity or you don't.
00:03:23.620 By the way, one of the seven forms of equity is sweat equity.
00:03:28.220 This is why sometimes a person with sweat equity who's hungry wanted to go to the top, like this, they pass up a multimillionaire who's absolutely lazy.
00:03:36.700 Number three.
00:03:37.580 So let me explain to you the next one here in a way that probably won't make sense to you.
00:03:41.000 Go back to high school, okay?
00:03:43.020 Think about the kid whose parents were very wealthy, and he would come to school on a 5 Series BMW, right?
00:03:48.620 It's kind of like, oh my gosh, this kid, man.
00:03:50.080 He's a nerd, not really cool.
00:03:51.560 Nobody knows who he is, but he's got the 5 Series BMW.
00:03:53.980 He always had the MJs, you know, the Js on, the $175.
00:03:57.460 You're kind of like wearing used Sean Kemp like me, size 13.
00:03:59.900 You're really size 13.
00:04:00.980 You know who I'm talking about, right?
00:04:02.480 But this kid who comes from a wealthy family always wanted to be part of the in crowd.
00:04:08.220 That 22 friends who were tight, hanging out together on Fridays, going out, you know, with the girls, and everybody.
00:04:15.040 We're like, oh, that's the cool crowd.
00:04:16.200 But they wanted this kid with the BMW, wealthy family, wants to be in that group, but couldn't make it in that group, even with this BMW.
00:04:23.600 Why?
00:04:24.320 That group has social capital.
00:04:27.400 They have social and morale equity.
00:04:29.740 There's a bond, right?
00:04:30.960 Let me explain to you a little bit more.
00:04:32.360 Say I get a group of 6 people.
00:04:34.220 They've known each other for 8 years.
00:04:35.660 They've fought.
00:04:36.300 They're friends.
00:04:37.340 They have something they want to build together, but they work very, very good together.
00:04:40.820 I can't pay 6 other brilliant minds $10 million and say, I want you to have the same kind of morale as these other 6 people have.
00:04:50.060 It's just money's not going to buy that morale.
00:04:52.640 You either have it or you don't have it.
00:04:54.780 To a lot of investors who come in and they look at a group, they can't find this often.
00:05:01.060 They can't find a group that run well together.
00:05:03.300 When there is something like this in the room that's called social and morale equity, let me tell you, it's one of the 7.
00:05:09.280 Can't buy it.
00:05:10.160 You either see it and you have it or you don't have it.
00:05:13.200 Number 4.
00:05:13.820 Here's another one for you.
00:05:14.680 Let's just say I'm a business guy in the U.S., okay?
00:05:16.660 And I want to go and invest into, I don't know, let's pick China.
00:05:20.080 I want to go invest into a market in Central America that I think is going to come up.
00:05:24.740 I want to go invest into South Africa.
00:05:26.420 They're going through struggles right now, a recession, but I think they're going to come back up.
00:05:29.920 I'm going to go buy some, you know, stress properties, right?
00:05:32.400 If I go by myself and I don't know the culture of China, of South Africa, or pick a place in Central America, I don't have that equity.
00:05:41.500 But if I take somebody with me who speaks the language of Mandarin, who lived in China for 22 years, who went to school there, knows everything.
00:05:49.540 I think I need him more than he needs me.
00:05:52.300 Because without him, I can't get into that community.
00:05:55.420 Because what his equity is, culture and community.
00:05:59.620 He speaks the language.
00:06:00.900 He understands the culture.
00:06:02.060 I don't.
00:06:02.660 I could have $100 million.
00:06:04.100 I need him.
00:06:05.220 That's another form of equity.
00:06:06.860 Number 5.
00:06:07.740 Here's another one for you.
00:06:08.620 Say I got $17 million.
00:06:09.920 I'm a rich guy.
00:06:10.500 I got money.
00:06:11.000 I got a lot of money, right?
00:06:11.920 But I don't know the right people.
00:06:14.620 And I meet this cat who's got all the right contacts in a community I'm trying to get into in Silicon Valley.
00:06:19.780 I'm not a Silicon Valley guy.
00:06:21.160 I'm an Austin guy.
00:06:22.120 Maybe I'm a Silicon Valley guy.
00:06:23.720 I want to get into Hollywood.
00:06:25.020 Different communities, right?
00:06:26.840 And I meet somebody.
00:06:27.920 His name is Sean Parker.
00:06:29.040 My name is Mark Zuckerberg.
00:06:30.640 Sean Parker introduces me to a crowd that I'm not a part of.
00:06:33.820 That crowd helps me build a multi-hundred billion dollar company.
00:06:39.520 And Sean Parker makes a billion dollars, a couple billion dollars.
00:06:43.320 Because what Sean Parker had was the contact and the connections that I didn't have.
00:06:47.420 I was a basic nerd in Harvard who was brilliant.
00:06:50.600 Sean Parker was a cool cat who had the contacts and the connections.
00:06:53.860 That is a complete different form of equity.
00:06:55.860 That's why sometimes a Rolodex or the cell phone contacts, there's a lot of equity in it.
00:07:00.380 Even though it's not money.
00:07:01.700 Number 6.
00:07:02.660 So I want you to think about a kid who graduates out of high school, goes to college.
00:07:06.140 And he decides to study this exciting topic of bonds for 15, 16 years.
00:07:11.860 Can you imagine like you wake up today saying, I am so excited to study everything about bonds
00:07:17.920 or stock market or all these data.
00:07:20.180 Man, this excites me, right?
00:07:21.740 Who in the right mind wants to do that?
00:07:23.080 Well, somebody does.
00:07:23.820 You know what you call that?
00:07:25.500 Specialized skill.
00:07:26.520 That is a form of equity.
00:07:28.180 Because a specialized skill needs a person with money.
00:07:31.440 The person with money needs a person with specialized skill.
00:07:34.000 Let me explain a little bit more for you.
00:07:35.160 The movie Big Short, it's a story of Michael Burry, right?
00:07:38.520 AKA Christian Bale plays the role.
00:07:40.860 This is the guy that when he was a kid, a football player tackled him, his eyeball fell
00:07:44.620 out.
00:07:45.140 And he becomes fascinated with numbers.
00:07:46.920 And he studies numbers and he notices that something's happened with the subprime market.
00:07:52.060 There's going to be a collapse here.
00:07:53.820 And he tells his investors, this is a nerd.
00:07:56.560 He studies numbers.
00:07:57.480 He tells the investors, $2 billion, let's put in the market, let's buy everything short.
00:08:01.880 What are you talking about?
00:08:02.600 Yes, the market, are you telling me the market's going to collapse?
00:08:06.080 Yes, I'm a nerd, but I know it's going to collapse.
00:08:09.060 We're going to go $2 billion in.
00:08:10.340 He goes $2 billion in. 0.97
00:08:11.560 Everybody thinks he's nuts.
00:08:13.100 Specialized skill. 0.96
00:08:14.760 Multibillionaire.
00:08:15.300 You know what happens?
00:08:16.500 Billions are made.
00:08:17.800 This specialized skill guy that was obsessed about studying numbers for years, now has a
00:08:23.000 net worth of $300 million.
00:08:24.680 How did it happen?
00:08:25.900 Specialized skill.
00:08:26.840 Another form of equity.
00:08:27.820 And number seven, let's say your name is Henri Charrier or Henry Charrier, right?
00:08:33.740 And you, for the longest time, were living in Germany and all of a sudden you get arrested,
00:08:37.380 right?
00:08:37.900 And you go to prison called the Devil's Island.
00:08:40.740 And anybody goes to Devil's Island, you psychologically lose it.
00:08:44.760 They give you all this medicine.
00:08:46.600 You go crazy.
00:08:47.580 And you somehow, someway, find a way to escape Devil's Island.
00:08:52.680 And you make it back to the country.
00:08:54.780 And you have all this intellectual property.
00:08:57.460 Things you save.
00:08:58.620 Your name is Papillon.
00:09:00.180 The writings, the articles, paintings.
00:09:03.020 All of these things you collected together and you say, I want to tell this story to the
00:09:08.260 world.
00:09:08.540 And you go to Hollywood.
00:09:09.860 You produce a movie called Papillon.
00:09:11.920 And the reason why you have equity is because you have intellectual property.
00:09:16.720 That's another form of equity.
00:09:18.620 By the way, when I'm talking intellectual property, I'm talking about you can own domains.
00:09:22.320 There are a hundred different domains.
00:09:23.660 And you have a domain that somebody needs to buy one day.
00:09:26.040 That's intellectual property.
00:09:27.560 You have a script that you've written, took you 10 years to write.
00:09:30.540 Intellectual property.
00:09:31.340 You have a patent.
00:09:32.420 You have a trademark.
00:09:33.900 Intellectual property.
00:09:34.660 You have an idea.
00:09:36.140 Intellectual property that meets with a person with money and other contexts.
00:09:40.300 Then we go out there and produce this product and we make millions together.
00:09:43.840 So look, now that you know the seven different forms of equity, you've got to ask yourself,
00:09:46.600 which of the seven do you have yourself?
00:09:48.140 Is it two of them?
00:09:49.140 Is it one of them?
00:09:49.960 Is it six?
00:09:50.580 Are you seven?
00:09:51.700 Is it four?
00:09:52.360 What other ways can you increase your forms of equity to increase your value in the marketplace?
00:09:57.100 By the way, Mario has produced a PDF for you to download.
00:10:00.660 Click on the link below.
00:10:01.620 You'll be able to download the PDF and ask yourself and score yourself on which of the seven
00:10:05.360 you have.
00:10:05.720 For those people who are watching this video and saying, Pat, it makes sense.
00:10:10.740 Maybe I am using money as a cop-out and I'm trying to find a way to say, this is why I'm
00:10:15.740 not rich.
00:10:16.500 This is why I'm not wealthy.
00:10:17.980 If you agree with the concept talked about in this video, I want you to go on Twitter
00:10:21.280 and tweet the following.
00:10:23.860 If you think it takes money to make money, you are simply looking for a cop-out.
00:10:29.820 And tag me.
00:10:30.820 I want the world to understand this message that there are different forms of equity to
00:10:35.660 attract money.
00:10:36.520 It's not just money to make money.
00:10:38.780 Hey, if you are still saying it takes money to make money and that's your way to cop-out,
00:10:44.240 knock it off. 0.61
00:10:45.540 Come on.
00:10:46.440 Stop making excuses.
00:10:47.920 Get out there and find one of these other six equities to have so you go out there and
00:10:50.640 attract the people with money.
00:10:51.600 Thanks, everybody, for listening.
00:10:53.300 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:10:57.900 Give us a five-star.
00:10:59.300 Write a review if you haven't already.
00:11:00.800 And if you have any questions for me that you may have, you can always find me on Snapchat,
00:11:04.880 Instagram, Facebook, or YouTube.
00:11:06.820 Just search my name, Patrick MidDavid.
00:11:08.580 And I actually do respond back when you snap me or send me a message on Instagram.
00:11:13.760 With that being said, have a great day today.
00:11:15.480 Take care, everybody.
00:11:16.200 Bye-bye.
00:11:21.600 Bye-bye.