Jamie Dimon Warning About Recession - “ABC’s of Decay”
Episode Stats
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201.34984
Summary
What s scarier than a recession or market crash? Arrogance, bureaucracy, or complacency. These are the three things you can t control, but you can control how you react to them. And if you are one of those, you need to address them as soon as possible.
Transcript
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So everywhere we see is market crash or recession coming, right? The other day they said 97% of
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Fortune 500 CEOs are convinced we're either in recession or it's coming. So, but what is scarier
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than recession and market crash? I'm going to share with that here today. And by the way,
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if you get value out of it, give it a thumbs up and subscribe to the channel. So last week,
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I'm at my annual convention, okay? And I'm interviewing my new partner, Brian Adams,
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who's a CEO and founder of Integrity Marketing Group. It's the biggest insurance company that
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nobody knows about. And we're having this conversation and he says, he was having dinner
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with Jamie Dimon, okay? And during dinner with Jamie Dimon, he says, hey, so Jamie, what are the things
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you're most concerned about right now with today's economy? Recession, market crash, all this stuff
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that's going on. He says the ABCs of decay, okay? The ABCs of decay, which is what? Arrogance,
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bureaucracy, complacency. He didn't say bonds. He didn't say rates. He didn't say China. He didn't
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say Russia. He didn't say politics. He didn't say, he said arrogance, bureaucracy, complacency. So
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why? Why is that the bigger concern? By the way, the ABCs of decay is also something that Buffett's
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been talking about for decades. Arrogance, bureaucracy, and complacency. So let's bring it to
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you. All right. So go through each one of them. Arrogance. When people make a lot of money, they tend
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to get a little too cocky. They get arrogant. You know, I'm bulletproof. There's nothing that can
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happen to me. I'm so great. Everybody tells me I'm so great. I just read a story yesterday,
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a company called First Guarantee. I believe it's a mortgage company. Last year in 2021,
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they had their biggest year ever, okay? They did $12 billion of loans last year. They hired that 600
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employees. They just fired 471 people in May, and they went out of business in June. So last year,
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they're like this at their meetings. Guys, we're on top of the world. This year, they found bankruptcy.
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Stories being written out all over in Bloomberg. Arrogance gets you to not see your blind spots.
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And God knows, we all have a lot of blind spots. Number two, bureaucracy. What's bureaucracy?
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Typically, we had an idea, and from idea to execution would take us 28 days, okay? Let's just say.
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Now, because there's so many new people we've hired, we've gone from idea to execution in 28 days.
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Now, it's 73 days. Now, it's 198 days. Approval. The key is, how can I take this thing from
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idea to execution in 28 days, to 21 days, to 19 days, to 17 days? But what happens? Bureaucracies
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come, bureaucrats come in. Oh, have you checked with this guy? Check with that guy? Check with
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this guy? Da-da-da-da-da-da-da-da-da. So again, arrogance, bureaucracy, and last but not least,
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it's complacency. Complacency is you're casual. You're no longer waking up at the time you used to.
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You're no longer taking care of your health. You're no longer reading like you used to.
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That level of obsession is gone. You're no longer thinking about what other ideas can
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we do to grow the company to the next level. But regardless of what you and I do, recessions
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are going to happen every five to ten years. Market crashes are going to happen every five
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to ten years. Economy's going to get hit. Pandemics are going to happen. Issues are going
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to happen. Elections are going to happen. Protesting's going to happen. None of that stuff is ever
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going to permanently go away. But what you can't control is the ABCs of decay. Arrogance,
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bureaucracy, complacency. And ask yourself, is any of those three something you guys are going
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through right now individually yourself or in your company? If you are, address it as
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soon as possible. If you got value out of this video, give it a thumbs up and subscribe
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to the channel. And I did a video last year titled, How to Crush Your 22 Business Plan, where
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I talk about bureaucrats. If you've never seen this, you may want to watch this video.