Valuetainment - September 06, 2022


Jamie Dimon Warning About Recession - “ABC’s of Decay”


Episode Stats

Length

3 minutes

Words per Minute

201.34984

Word Count

716

Sentence Count

67


Summary


Transcript

00:00:00.000 So everywhere we see is market crash or recession coming, right? The other day they said 97% of
00:00:04.700 Fortune 500 CEOs are convinced we're either in recession or it's coming. So, but what is scarier
00:00:10.060 than recession and market crash? I'm going to share with that here today. And by the way,
00:00:13.780 if you get value out of it, give it a thumbs up and subscribe to the channel. So last week,
00:00:17.600 I'm at my annual convention, okay? And I'm interviewing my new partner, Brian Adams,
00:00:22.100 who's a CEO and founder of Integrity Marketing Group. It's the biggest insurance company that
00:00:26.680 nobody knows about. And we're having this conversation and he says, he was having dinner
00:00:31.060 with Jamie Dimon, okay? And during dinner with Jamie Dimon, he says, hey, so Jamie, what are the things
00:00:37.340 you're most concerned about right now with today's economy? Recession, market crash, all this stuff
00:00:41.500 that's going on. He says the ABCs of decay, okay? The ABCs of decay, which is what? Arrogance,
00:00:48.980 bureaucracy, complacency. He didn't say bonds. He didn't say rates. He didn't say China. He didn't
00:00:54.640 say Russia. He didn't say politics. He didn't say, he said arrogance, bureaucracy, complacency. So
00:01:00.400 why? Why is that the bigger concern? By the way, the ABCs of decay is also something that Buffett's
00:01:04.980 been talking about for decades. Arrogance, bureaucracy, and complacency. So let's bring it to
00:01:10.040 you. All right. So go through each one of them. Arrogance. When people make a lot of money, they tend
00:01:15.020 to get a little too cocky. They get arrogant. You know, I'm bulletproof. There's nothing that can
00:01:19.740 happen to me. I'm so great. Everybody tells me I'm so great. I just read a story yesterday,
00:01:24.840 a company called First Guarantee. I believe it's a mortgage company. Last year in 2021,
00:01:30.020 they had their biggest year ever, okay? They did $12 billion of loans last year. They hired that 600
00:01:38.160 employees. They just fired 471 people in May, and they went out of business in June. So last year,
00:01:45.380 they're like this at their meetings. Guys, we're on top of the world. This year, they found bankruptcy.
00:01:50.740 Stories being written out all over in Bloomberg. Arrogance gets you to not see your blind spots.
00:01:55.940 And God knows, we all have a lot of blind spots. Number two, bureaucracy. What's bureaucracy?
00:02:00.920 Typically, we had an idea, and from idea to execution would take us 28 days, okay? Let's just say.
00:02:08.060 Now, because there's so many new people we've hired, we've gone from idea to execution in 28 days.
00:02:12.840 Now, it's 73 days. Now, it's 198 days. Approval. The key is, how can I take this thing from
00:02:19.540 idea to execution in 28 days, to 21 days, to 19 days, to 17 days? But what happens? Bureaucracies
00:02:26.160 come, bureaucrats come in. Oh, have you checked with this guy? Check with that guy? Check with
00:02:30.360 this guy? Da-da-da-da-da-da-da-da-da. So again, arrogance, bureaucracy, and last but not least,
00:02:34.820 it's complacency. Complacency is you're casual. You're no longer waking up at the time you used to.
00:02:38.980 You're no longer taking care of your health. You're no longer reading like you used to.
00:02:42.020 That level of obsession is gone. You're no longer thinking about what other ideas can
00:02:45.620 we do to grow the company to the next level. But regardless of what you and I do, recessions
00:02:51.200 are going to happen every five to ten years. Market crashes are going to happen every five
00:02:54.760 to ten years. Economy's going to get hit. Pandemics are going to happen. Issues are going
00:02:59.000 to happen. Elections are going to happen. Protesting's going to happen. None of that stuff is ever
00:03:03.660 going to permanently go away. But what you can't control is the ABCs of decay. Arrogance,
00:03:09.160 bureaucracy, complacency. And ask yourself, is any of those three something you guys are going
00:03:14.720 through right now individually yourself or in your company? If you are, address it as
00:03:19.180 soon as possible. If you got value out of this video, give it a thumbs up and subscribe
00:03:23.200 to the channel. And I did a video last year titled, How to Crush Your 22 Business Plan, where
00:03:27.560 I talk about bureaucrats. If you've never seen this, you may want to watch this video.
00:03:32.060 Take care, everybody. Bye-bye.