Happy Scribe Logo

Transcript

Proofread by 0 readers
[00:00:00]

Earner's is twenty twenty one, the year of execution, in order to execute, we have to have information and a number one place to get the information by Yale University Shotty. Tell them what we bring in. Yes. While university has been reloaded, we already have 100 past webinars. We already have weekly webinars. We already have our private investment group on Facebook. We already have monthly financial planning for we really have biweekly real estate called. But what has been added to Iwao University this year is access M.G., the mortgage guys, home buyers blueprint, which walking to the home buying process from A to Z and also has to add a breaking news alert.

[00:00:30]

Every employee seems to be in our group checking me out when we talk about all the investment place that we are making, we are going to have investment calls, group check calls with me, Troy and the whole team and walk you through our place that we're making and give you insight into our portfolios. All of that was 75 percent off. That's why we are doing a blowout sale. Seventy five percent off for a limited time only go to Yale University.

[00:00:55]

Dotcom right now is sign up. So you're on another site.

[00:01:03]

Now, Dan. Mondays on the floor is yours. Thank you. So I want to reveal the 20 hidden secrets of investing and last week we talked about Robin Hood and the debacle with that. But I want to walk you through some things that I think that would add to that conversation also make you a better investor. So excited about that, please. But yes. And I love you guys so much. So I want you to go right the podcast.

[00:01:34]

I want to do something super special. So was it Monday to the top one or two slots on the charts? I'm going to give away a thousand stock for scholarships. Wow, that's crazy.

[00:01:48]

I want to bless you guys because it's a large number. It's created a lot of talent. But your help is right and there is no benefit to them. I want it to benefit you. So go the five star for our pop stars. Comment and subscribe and subscribe. And if you share with your friends, it would be better if you should tell a friend to tell the friend. And today is the last day for stock club at this price on double my I premium Tiffany.

[00:02:16]

So on February 11th, we got a surprise thing that we're doing. We've got a crossover episode with Josh and the fellows that Coppell, so we'll be sure to drop the link for you. And it's going to be pretty fun. We go one or two, so good brother just shot the judgment. Good guy right there. All right. I want to tell my baby I know you're watching, so you got to go to bed on the argument about it.

[00:02:40]

But happy birthday. I had a blast this weekend and I had a great time. I want to tell you, I love you from the bottom of my heart. Thank you for pushing me to be a better man. If it wasn't for you, I wouldn't be as dedicated as I was. And as I am now, I will be as focused and thank you for pushing me to be fearless, you're everything I've dreamed of in and more so I look happy birthday to you, cold.

[00:03:07]

Now, happy birthday said let's stop investing so I know what's best. But the biggest lesson I want to share with you and you guys and to your kids. Zander, I want you to always be coming. I want you to be fearless, I know sometimes you get frustrated when things are going the way, but I want you to be fearless approach. I want you to be loving. All the time, but I know it's not an easy thing to do, and you have to tell you immediately, I want you to be current as possible, and then I will always want you to stand your principles and what your beliefs are on solid.

[00:03:45]

My final thoughts on the Robin Hood debacle. So now that AMC is dead, I'm Tipitina for short. So now the AMC is the and then, of course, the other players that have been pushed out the door. I want to give my final thoughts on a couple of things. So. I said it this weekend, Robin Hood, of course, halted trading because they were going to go bankrupt, their version of a margin call. But when you're investing, I want you to type.

[00:04:14]

Yes. Are you sabotaging yourself in your account more of a Robin Hood? Is that some of you in training have blown up accounts. Some of you have invested in bad companies and hope they will not. Let's be very honest, Robin Hood, like all of a sudden Robin Hood ushered in a commission free trader. I remember when the trades were twelve ninety five to go to those considered a deal. Then all of a sudden they made everyone else adjust to a free commission chairman.

[00:04:43]

They have a couple of hiccups and everybody wants to turn their back. Well, my thing is, what if this is being done for a reason? What if this is the easiest platform for us to be on? And I see this groundswell of us coming into the market and they want us to go back to the platform and they know at the top of the platform the complicated we won't remain on them. So I have no financial incentive, Robin.

[00:05:09]

I have nothing to do with Robert. I know that big Robin Hood. I want you to tell me, have you been a problem with someone executing in the right stocks long term and in retreat? Because if you take more than 50, 60, 80 trades a year, you're not doing what you're supposed to do. I want to walk you to my blueprint for Xander, so that's the plan that I've had since he's been a kid. So my parents screenshot this.

[00:05:34]

We post it whenever one invests in a market. Every single month for him, one index for number two. Invest in stocks every single month for him that is in the tech base or the second lot of energy to get whichever sector is a predominant player in the space. So next decade is all about electronic vehicles and space exploration and delivering chocolate to Mars. Hey, we're going to get to Mars or whatever chocolate brand there is at that moment. Number three, say five hundred a month for him in the rookie year, or if that is work, you pick a number and then the senior year, of course, you want to multiply it by four.

[00:06:17]

This is really cute. Number four, save 90 percent of your money for the child until they turn 21. And then. Save 80 percent for him until he started, so 20 to 30, any money that you get in, please be sure to save screenshot this and use this for the kids, because that's what is that? The futures program will be back on March 8th, so for those who were not able to get in, yes, it's going to be a tough sell down.

[00:06:47]

So there's no continuity. You guys asked over the weekend. I'm sure you were blown up or shot. And Sean Michael yo, what's up? March 8th? It would be bad, but I want to say this. So now we came off AMC and you guys are telling me it was going to the moon. AMC is going to hit a thousand. GameStop is going to hit a thousand. Now, everyone's worried about a pullback. Stop worrying about crashes.

[00:07:09]

We covered this endless amounts of time. Look, crashes only lasts for fifty four days a time like this yesterday, like the only last fifty four days on average since nineteen eighty. OK, there's a difference between a correction, a crash, a pullback, a recession and depression. These are all just mathematical calculations. So is the market going to come down? Yes. And probably drop 10 or 15 percent in September and October are the best months to buy this historically.

[00:07:41]

Those are the two months the market drops the most being prepared to load both those months and the summer time the market drops. So usually July or August, we have a strong pullback. Be prepared then. Why are you so worried about crashes? Please stop this. I want to know because if the market crashes, we have a lot to gain by saying the market is going to drop and then we can short it of those who are doing options.

[00:08:05]

You can put everybody in futures which is short down and that can make a lot of money. But why are you worried? We went through to one of the worst crashes in history, recovered. As long as it is quantitative easing, the interest rates are low, we're going to be fine. But maybe you were trying to worry about the crashes. To trick you, to not invest, to be very honest or crash has happened. They are opportunities of a lifetime for good investors.

[00:08:32]

Please stop worrying about them and dig into them and enjoy them when they happen. Of course they will be scary. I do want to look at my countermarch, but if you invest during the bottoms of that market, well, we're in the trough. You would have been OK. Top six sites you saw researching former members in Stockholm. You got to get the other seven, but Google Focus we talked about a couple of weeks ago. Morningstar is very good, CNBC or CNBC Post.

[00:09:01]

Better dig deep Yahoo Finance. Sorry, but is this underrated? I know that. So estamos. And then the last one is holding Shanno that we talked about last week. We don't need a bunch of sites. You need a lot of execution. And then one of the bigger mistakes that you guys are making is not having a system for how you actually do your research. So do them in order and this particular order and you'll be fine. This has been a lot of talking going on on the Internet, and I want you to screenshot this and share with them.

[00:09:38]

These are three questions that you need to ask people in town to talk to you about investing. Including us. But because I'm very afraid of some of the comments and I'm going to bunch of rooms and a bunch of chats and group meetings and some of the information that is going out is just outright deadly. No way are you financially for. If the advice is really working and is really that good, the person would apply it and they would have some fruits of their labor.

[00:10:04]

Number two is really important. It's a lot of capital and a few apps that I won't mention any more. Hi, how are you? How many years can you afford to network? And number three, can you give me one piece of advice that can help me for free that you would not benefit from? Because there's a lot of people that are giving out advice. They're trying to give a brand, but they're not. OK, and can you give me one piece of advice that would help for free, there's no benefit to a lot of people are acting as if they're helping what they're really trying to build a brand.

[00:10:43]

And then that's what you need to know tied into the Robin Hood thing. Any time that something is free, you are the product. You're the thing that's got so take Facebook, and I wish I could have got families in that first round that seemed right, but any time that you don't pay for a service, you are the product that is being packaged up and being taken to be sold. So I know sometimes there are some issues about, you know, I have a perception of having a premium, but I think if the returns are high, I should charge a premium for them.

[00:11:15]

But any time that you do not pay for something, you are being used. It is much deeper than monetary value. People are looking to exploit you and they understand that they are that you're excited about the market and don't let people take advantage of you. It's better to pay a little bit now and be completely free as opposed to being bundled together like a derivative or an exotic charge and being taken elsewhere and sold to someone else. Talk about candlesticks and let's get into the.

[00:11:45]

If reading candlesticks was all that you needed. To make money in the market. Why isn't everybody rich and candlesticks? You can study all the patterns that you want, and I actually got you guys and talked to a lot of millionaires, how many of them the first thing they bring up to you kind of sex never to bring up Candlestick. And he knows how truth. Eli knows how to treat is not the candlestick formation is risk reward and defense not let him go into later.

[00:12:16]

But if it was just dodgy and a double hammer and a three legged dog, everybody's got to do it and also the rest of that. But if that was it. Everyone will win if you go for a higher timeframe. So we're talking about head and shoulders earlier. It's better if you go for higher timeframe, like a weekly or higher for that pattern to work. But you first need to know the true direction of the asset is kind of patterns will not get you to freedom.

[00:12:47]

The thing is, and I love Steve Mason and I love the work that he's done, but a lot of people talk to you about patterns and patterns because they can't give you a clear answer of how to win right now. That's not it. No one I've talked about before, Resta Award is most important. If you are a terrible trader, you can risk one to make twenty five and only what, four percent trade is still be profitable. Let me be real.

[00:13:11]

If you put in time every day you can off four percent of your trades, attempted to make the trades on accident. And then number two, knocking down the number of trade that you take per year. When I was doing my own analysis, I look back and I'm like, if I cut my trades in half, I probably would have made for it more. So be mindful of that. I was talking to Mac last week about how to hedge and he was saying if you have positions in a market long term, if you're not doing a couple of calls, how do you hedge?

[00:13:37]

Number one, the biggest asset that you have is time in the market. And you tired of me saying it. But the truth does not need to be sexy or Paxo for it to work. The time in the market is the number one hedge and we were talking about it yesterday. But for anybody who trades short term or short term usually get killed. If you let it simmer, marinate, cook for a couple of years, you'll be OK.

[00:14:03]

Invest in companies with a small drawdown. So we talked about the fundamentals to look for in a company. Add to that list, how much does it draw down per year? That number needs to be only twenty two percent. If you have a company that is an amazing GameStop drew down 80, it's not a good company to invest in, told you beforehand, and then also not taking your money out of the market as a way to hedge. So people talk a lot about diversification.

[00:14:31]

But the biggest threat that people are planning on you is having you invest short term and thinking that you're going to get rich when the real answers, you're going to get rich on the back in. Integrity is a determining factor of whether or not you will be rich or not. There's two things. Why did you create a business? What a serious competitive advantage. A number two, the frequency of which you invest in a market. But I want to tell you right now, you guys have seen me do it in real time, build your own brand, you need a business first that you can depend on to invest in entrepreneurs and companies that are better than you and you will be able to dominate.

[00:15:12]

You need these two things working in tandem to be OK. But the frequency of which you put money into the market is going to have the biggest impact on your life. Because what good is if you get a killer injury and you only have seventy five years, if that number of shares that you get that good instrument will not allow you to get closer to freedom, it really doesn't matter. And then go back to normal conversation. We playing defense?

[00:15:38]

No, that is right. So there are a couple of different kind of moats that you ought to have and ideally you want them to have for today. So, number one, low cost of production. Number two, high switching costs. If I switch on my iPhone, I go to a Galaxy s whatever. I'm going to hate that I'm not connected to iCloud and everything is automatically better. Number three, network effect. So I'm tired of so Facebook, Instagram to talk LinkedIn have all built a community, a network that we're tied into number four and intangible assets are very key to the value of the brand is very key because the Lakers, Apple, Microsoft, those all have tremendous value.

[00:16:21]

And it's not the market share price of the company. Brand loyalty is key. So while brand loyalty, Nike, even if we go back in the day Bad Boy Death wrote like those had brand loyalty and a certain amount of fans that love them no matter what high retention rate. So are they not turning over customers? But this is one of the most important ones. You want to invest in companies that almost have a legal monopoly. So at one point, Facebook and Zuckerberg is our generation's gates.

[00:16:55]

I was talking to Mike about Stryker. If you've ever been to a hospital, you've seen a Stryker bit international, you need to look at companies that are teetering on the line of almost having the feds come in and break them up and say, you guys are going to motss antitrust.

[00:17:15]

We need to because you once you have a market court, I'm going to be honest with you, competition is bad for you as a business owner. I would love to tell you to do that, and I love you and everybody else in love, Josh, right. But if we're the only one considerably more market share. So look at the companies that have almost a monopoly in their sector. And those are one of the ones that you should look to invest in their futures.

[00:17:39]

My last name. So what I want you to practice, I want you to practice sizing up. Now, three hundred trades you need to practice before you do this. Forty one contracts, and I want you to go for a target of sixteen ticks. If you hit this target, you'll be at twenty thousand five hundred, trading has considerable risk, is not for everyone. If you are not disciplined, you should not do this in any circumstances.

[00:18:08]

So what's your advice? The first I got my glassblowing. Right. And then. If you want to create Alpha or return for yourself, you need to hit a target that is measurable, that you can hit easily, I think any an 18 wheeler type. Yes. And check in all caps. If you hit 18 doing this, if that number will change your life. For some of you, even one tree, but the biggest thing you can do to set your career straight and also have less draw down.

[00:18:41]

It's to limit the number of trains for me personally, I call my plan Blackwolf. Right. You have to only do 18 for the year, not those out. And then once you are able to do that consistently, the money will point to the thing that I'm seeing a training right now. Everybody's training and everybody's running. First two months, three months and month five through team. You guys are blowing up your account and then you are having all these devastating horror stories behind it.

[00:19:09]

Cap the number of trades that you can take, set a goal that you can hit on your end and a few trades and you'll be OK. I love you guys and I'm sorry we had Mike issues, but things happen is OK because you have to learn how to adjust the same way you would in your investment training plan. That's it.

[00:19:26]

That's it. Ladies and gentlemen, great presentation as always. Yeah. You know, technical difficulties is part of the game plan. And that's why I like Mark on Mondays, because it's a live show. So there's always going to be issues. There's always going to be problems. That's what business is about. It's not about what the problem is. It's about how you respond to the problem. Keep your composure. Don't panic and try your best at the end of the day.

[00:19:50]

Or you can do is try your best. We trying our best every Monday we try our best. Sometimes we have technical difficulty. Sometimes we don't have technical difficulties. But no matter what, we come out and we try to we try to give the best performance that we can possibly give and give as much information as we possibly can and hopefully is able to to change some people's lives. So, you know, sometimes, you know, the camera's not going to be great.

[00:20:13]

The audio is not going to be great.

[00:20:16]

Life's not perfect. Life's not perfect.

[00:20:18]

Just but also you get to see if we really know our stuff, because if everything was just canned and then everything broke down, you can feel if something is off. But life is not perfect and you have to learn that just on the fly.

[00:20:30]

I could argue it's probably because it's called to tell us so we can try to relocate because of that boy.

[00:20:40]

Is it a boy, is it cycle check? Is there anything else you would have wanted to learn tonight? Put it in the comments and then we'll grab him, start to answer some. So we've been. Day goes the legend himself. Check, check, check, check, your audio is great and what's going on?

[00:21:06]

Brother was good. Goodfellas United at last.

[00:21:14]

I got that vintage Sean I was going on. Know what a massive investor. How are you doing, man?

[00:21:22]

How you doing? I'm honored to finally chat with you, man. You've been cooking for a long time. Pleasure's mine. Absolutely, bro.

[00:21:27]

I had a chance to to catch a presentation. Appreciate the moves you've been making.

[00:21:32]

You guys are superstars now. You're all over the country just trying to do the Lord's work.

[00:21:40]

John, first and foremost, welcome to Market Mondays. You've been a friend of yours and a contributor for Collegiate several different times. You know, you did your episode, which is a classic. I saw classic. You was actually going on one 100th episode with the all star team for that, so. Right. That's right. I forgot about that. That was fun. Yeah. So you have to tell me while I'm not. But this is your first time making an appearance on Market Monday, so welcome to the market Monday.

[00:22:09]

It's a culture. It has become a culture within itself. I see that I see that man every time I jump on the oil platform, the first thing I do is salute you guys. I love watching the moves that you guys make. Obviously, we stay in touch personally, but to the six point nine thousand folks watching now and then those who will watch later. I mean, we just we can't underestimate the importance of the fact that you guys made the move horizontally to be a podcast network.

[00:22:42]

Right. Like it's one thing to grow a pop an hour show. It's another thing to then, you know, be the the new age Rockefeller records. Right. And recruit talent and mobilize the movement and give folks a voice on the platform and pull collectively. So I just think it's a it's a it's a masterclass within it of itself. And I don't know if you guys have done an episode where you dissected the move and why you did it and so on.

[00:23:10]

But I think that would be a fascinating conversation along the edge of my presence. Even for you, next week is going to be a plus. Right, right. Right, right, right.

[00:23:24]

But yeah, I want to want to commend you guys for the moves and watching on and supporting, as always. And yes, it's a pleasure to be on on Mondays. Thank you, brother. Thank you, brother. I appreciate that. So let's jump right into if anybody doesn't know who John Henry is. I don't know how you don't know who he is, but I'll give you a quick rundown. So John Henry is a superstar entrepreneur. He was the star of a TV show.

[00:23:45]

He had a venture capital firm. He had his own cleaning business when he was like 19 years old, which he sold for a million dollars, angel investor, serial entrepreneur. And now he actually started his own auto insurance company. So he's like a wizard and he's under 30 years old. So, yeah, he's a he's a he's a Wizzit. So the way we forgot that he actually owns real estate, too. Oh, yeah. Real estate.

[00:24:14]

Real estate. So what are we going to do now is we talk about public markets a lot, but we haven't talked about private markets and that's a whole part of the financial space. And you can't have a financial show and not talk about private markets. Not you might not even know what private markets are. When we talk about angel investing, we talk about venture capital, things of that nature. So all I want to have that conversation. I also want to have the insurance conversation.

[00:24:42]

So let's jump right into it. Let's jump right into it. My brother. So DC, DC, right. Venture capital. So you were on both sides of venture capital. You actually you were you were part of a venture capital firm, Bain Capital, and now you actually received the money from venture capital. So you was actually giving out venture capital at one point. Now you have a company where you actually getting venture capital. So I want to start with a lot of people might have businesses and they approach even us all the time, like, hey, do you know any D.C. people?

[00:25:19]

I got a million dollar idea. I want to pitch it to them, but they don't know the proper process. So what is the process to get venture capital funding? Copy, copy. OK, awesome. Yeah, no, it's a great conversation. Let's talk about the private markets is very connected to the public markets. A lot of the legacy company, any company that you can buy and sell now and and I appreciate that you guys are constantly breaking down the public marketplace.

[00:25:50]

It gives me it gives me like whiplash just following the movement.

[00:25:56]

So so I don't have a whole lot of money in the public markets, but any public any company that was public was at once private. Right before you are valuable enough such that some, you know, a bank would underwrite you and bring you to the public in in the form of an initial public offering, you have had to had traversed an entire journey in the private markets.

[00:26:27]

And there is an entire wave of value creation that is for historically been limited to the few. So if you thought you had a good deal when you bought beyond me, when you bought Levi's, when you bought Airbnb, imagine the deal that Secoya Guy imagined the deal, that Y Combinator guy. Imagine the deal that they're made, by the way, who went to college with the founder and had a look at five K of Airbnb when they were worth 10 million, got when they went public at one hundred billion.

[00:27:02]

Right.

[00:27:02]

And so so the private market is, for me, very fascinating because twofold, as you mentioned, there's two sides of this table here. It's, hey, can you be a good scout of talent?

[00:27:18]

And unlike in the public markets, you have to elbow your way into the conversations rooms and you have to have two levels of skill. You have to, one, be able to dynamically spot when you think the team is right, when you think that the opportunity is right, and when you think that the timing is right. And then also you need to even be able to be in the conversation such that an entrepreneur would want to give you a look at their deal.

[00:27:47]

But then there's a couple of other things happening as well. So that's on the investor side. And then the side that I love is a side that rolled their sleeves up. And like one thing I just want to say to there is an ungodly amount of emphasis placed on the investor these days, the VC, how can I pick a VC? But like the VC ain't doing shit right. The founders rolling their sleeves up, creating values, making judgment calls every day, hiring fire and bus and selling on board and building product, evangelizing.

[00:28:20]

The founder, in my opinion, is really the hero, the creator of value. And I think that culturally, somewhere along the line, probably because of TechCrunch, a fast company, placed so much emphasis on the investor, we forgot to view the founder as a hero. Right.

[00:28:38]

And so so those are the two sides of the table going on. It's the founder being bullish on a vision, Stuben on a vision, you know, obsessed with the vision, mobilizing the team around it. And eventually you bring investors into your orbit. And if you're fortunate, like we were at Leupp, you can get a little bit of capital and then then you effectively you have your swing at it. So that's what's going on in the private markets.

[00:29:09]

I really love it because it's interlinked to the public markets in a new way and more more intimate way than ever before, because a lot of the public companies that are making the biggest waves are all venture funded. You have Robinhood making a splash. Clubhouse will go public guaranteed. We work recently filed for IPO via Spack.

[00:29:34]

I'm not sure if you guys talked about specs I think is the craziest racket, but there's a lot of companies now that via a traditional IPO or a spaak, which is effectively like a way to bypass the traditional IPO diligence requirements and still make it to the public markets. Venture capital is seeing the biggest wave of liquidity that we've ever seen in the industry. So all these investors that had their money tied up in all these bets, they're making money. And guess what?

[00:30:06]

Guess who's not making money? US, because we never had to look at a deal. So that and that bugs me, right. Because the majority of the people that made dough and had a look at these companies came from a handful of zip codes in the valley. And so Harlem Capital sought to change and diversify the the you know, how a capital manager looks like, what we look like, and then we're changing that as founders as well, stepping up to the plate and swinging big.

[00:30:36]

Quick question for you, when you were looking to distribute capital, what are some of the trends that you were looking for in Arkansas? That would be an easy sell? Yes. I mean, this company for me all look at the founder. I look at economic most competitive advantage. But what are some of the things you were looking for when you were like the first in two or three weeks?

[00:30:56]

Yeah, you know, that's a good question. I think people always look for like an easy summary of tips. But the thing that makes Venture a lot more difficult is in the public market. You can base your investment based on the past, right. So you base you evaluate your investment based on historical inventure. You often have no historical. So it's not about getting a good deal on the past. It's about getting a good discount on the future.

[00:31:23]

And you tell me how you go about summon that up, sometimes it is because the founder is a is an X factor, you know, sometimes it's because you're just like, whoa, this person is incredible. Other times you're just like, whoa, the the timing for this thing just kind of makes sense right now. And other times you're not completely sure. And you're and there's a thin line between, you know, brilliant and kind of crazy. And so to be honest, a lot of times when you are making an investment as a VC, you know, you're there's no way to know for sure.

[00:32:01]

And a lot of times you feel like you're honestly it feels like guessing. And here's the thing, though. The reason that the tier one, like eighty six percent of all profits in venture capital, went to six firms. And it's no coincidence that those six firms have been around for two decades. It takes 10 years to know if you're good at investing because that's the average life cycle of these venture companies. And so I can sit here and list a bunch of attributes that I think matter founder, market size, team traction, whatever.

[00:32:31]

But in reality, until you've been in the game and taken punch punches for four decades, there's really no way to know. So my advice to founders is go out there and get it how you can. I mean, obviously, we're busy and now you're a founder, and so there are some advantages that you have going into the process of trying to raise funds. I'm wondering, are the things that you learned through the process that you were surprised that or it was like, you know what, I just thought I was going to go.

[00:33:01]

I'm a veteran and is what is the most thing that you are going to present?

[00:33:05]

I love that question, man. I'm glad you asked the. I think that I was surprised at how much of it came down to intangibles, how much of an investor's evaluation of a founder came down to the things that you don't see on the websites like this is our criteria, you know, because a lot of times a lot of deals do check the criteria on the website, you know, 250 K in revenue, you know, this, that whatever.

[00:33:39]

But in reality, a lot of the times the thing that made investors move was the classic famo. And to be honest, I was I was torn about that. How pervasive that is.

[00:33:54]

Venture Right.

[00:33:56]

It's like so much of what makes an investor move is that another investors move in on it. Because there's a lack of fundamentals at the seed stage. Right, like like we raised at a ten million dollar plus valuation at the seed stage, pre product, pre revenue.

[00:34:16]

I come from small business land where, you know, you're you get a one X multiple on your revenue. And so, you know, if you're making a million bucks or even the two hundred fifty K and then you get a four extra eBid and like, that's the world that we venture is completely disconnected from that.

[00:34:35]

So in a world where there is no fundamentals, in a world where you're not sure this thing is going to flop over, is going to turn to a billion and more recently tens and twenty and a hundred billion dollar exits like we've been seeing. You know, I think the code for venture is being rewritten. And I think a lot of it comes down to, God damn it, that motherfucker's persuasive. I'm just going to keep it a buck. Like it's just like, yo, are you the sharpest motherfucker in the room?

[00:35:01]

And I don't mean like I mean, actually, bro, like, when I was on the market, I knew everything cold about my business. There's not that you can ask me that. I wouldn't know. Right. I would rehearse the pitches and anticipate when someone could ask me something that would stop me and have you know, I'm saying it's about being tight, sharp, persuasive. You got to know your numbers cold. There's a lot of things going on.

[00:35:25]

But all all told, so much of it came down to how much of a powerhouse you could look like and come across as general, let me ask you this. The vast majority of people will never have an opportunity to invest in private companies for a variety of reasons. But that's actually changed a little bit now because I want to ask the questions. So the first question is this. Sites like. I think there's a few others where allow you to it's like, well, you know, Republicans crowd funding kind of situation where you can invest in private companies with the hope that the companies can blow up.

[00:36:01]

And it's kind of like the regular person to my to my knowledge only. That's like the only real shot at investing in private companies before they become public. How do you feel about those type of sites and are there any other avenues for regular people to invest in private companies before they become public? Yeah, it's a good question.

[00:36:26]

I'm a I'm a fan of them. I'm a fan of them. I mean, it's not necessarily putting a whole bunch of capital to work. So, like, if you deploy five hundred dollars and you get a 10x, like, it's still it's not really going to change your life.

[00:36:39]

So I think it's a good way to dip your toe in the water. I think for anyone that wants to become an angel investor, I would just do it on my own personally, like we did at home capital, because the the real skill set of angel investing is not like putting in 500 bucks to work. It's like finding the deal. Where I like finding the deal is the hard part. So for anyone who's interested. Yeah, you can you know, if you want to back a company that's on a platform, I think it's a fantastic way to do it.

[00:37:08]

I think it's a fantastic way to diversify the angel. Investing is the most fun way to lose money, though, by the way. So I wouldn't be like treating it as like necessarily a space where you're going to generate returns respectfully to all the stars out there, mine included. Right. It's just an incredibly risky asset class. So if you were chasing returns, I personally would and am in real estate or if for a lot of folks on the show or probably dividend yield and stocks, some a little bit less volatile types of things.

[00:37:39]

But if you want to dip your toe in angel investing, it's a great gateway drug to do that. But if you want to actually angel investors.

[00:37:47]

Well, I would actually recommend saving up two thousand dollars fund by people that want to do the same thing and then pulling up a 10K check and trying to get on a cap table yourself.

[00:37:57]

That a legendary situation where people think of venture capital like you go to Stanford, you've got to have billions of dollars. You started a venture capital firm, Angel Investing Firm, with you and other colleagues, like you said, with two thousand dollars apiece, I believe. And the last time we spoke, you had got that twenty five million dollar check, for lack of a better word. I know how to put that so. Right. Yeah, you know what I mean.

[00:38:22]

Can you break down the steps of how how do you start a venture? You started the venture capital firm with two thousand dollars, like I said, who are to have a funding of over twenty five million dollars. What are the steps? What are the steps you are. Yeah, yeah, yeah.

[00:38:35]

It's a good question. The steps are simple, man. I mean, for a lot of people in here, I know some of the people listening have pulled together their monies to go buy a little investment property. Right. So it's the same kind of deal. You form a little LLC, you come up with a cool little brand name, right. To be whatever it could be while ventures, for example. I'm not saying you guys should get into the business, but maybe you should, because I'm sure you got a lot of people pitching you guys right.

[00:39:03]

So let's take the three of you guys while ventures. The three you guys, you put your pool five. A piece or two copies, one copy don't matter, and you pull that money and then cool, you've got the venture, you got the brain, you got a little bit of capital set aside. Right. And if you if you can't hustle and set aside two stacks and then you're not ready for this, but if you can do so now.

[00:39:27]

You found people that are driven enough, you have the entity of the brand name, now you've got to go find the deal. So this is where reps come into play. You know, we our first deal was like in a cafe in that caf cafe closed down within two years. So we lost a little bit of bread on that. OK, cool. No sweat. We went again. We invested in the dental practice. You know, that one had its problems, too, and we covered it even worse.

[00:39:48]

OK, but we made no money on that. OK, cuz we invested in a media company, we got in a Blavatsky that one had a nice little pop. OK, cool. And then we kept making bets and after you make bets you start to learn a little bit more about your own investment temperament, about what you like, about what you, what you feel has a lot of opportunity. And so I'm like you. I like to learn by doing so.

[00:40:15]

You know, I was in high school. I left school. You know, I just feel like if you're interested in a category, put a little bit of bread to work and then you keep putting a little bit more at a time until you build up your knowledge base. And then and then you can eventually convince folks to trust in your stewardship of their capital. But it's brand new in, let's say, someone wanted to start tomorrow, how do you find a deal in the Valley or let's say New York and they've never done a deal before?

[00:40:45]

How would I do it? OK, but let's go through that. I have no brand name. I'm Joe Schmoe. I want to get into the ship. I put up twenty five hundred bucks. I got three other friends. I would do the same. We have 10K. We want to do it. OK, so cool. What would I do. I would go on Twitter and type startups or go on Twitter and type in raising capital on Twitter.

[00:41:08]

You can search in or out of hashtag. So literally go on Twitter, look through every motherfucker on that who wrote, who wrote I'm raising capital. You know, literally go through and say, oh, this looks kind of interesting. OK, cool. Like the tweet, yo, you might maybe get at me. I would make a list of the top, but personally I would probably make a list of the top black and brown founders that have already raised venture capital, ate them up and say, you know, do you know any anyone in your network?

[00:41:36]

You know, they usually mentor and some people because, you know, you kind of get usually get the TechCrunch Wave when you raise around and then founders reach out to you and say, yo, can you coach me? So, hey, you know, anyone that's raising money, you know, I don't got a whole lot, but I'm down to put a little 10k to work. I can squeeze in there and I could be competitive. I can I can move fast.

[00:41:53]

You let me know. Right. And so it's all about these untraditional channels. If events weren't worth thing right now, I'd be doing events. I'd be I'd be chatting up every every comment that I see right here on the e mail network right now. Greg Thompson Jr., who is a brilliant engineer and co-investor with me on a property, is in here. And he's a very talented engineer.

[00:42:18]

And you guys don't even know who's in the comments while you are in his old chat.

[00:42:24]

He's not he's in he's in the YouTube right now. I'm watching the YouTube comments. I'm watching the zoom like guys there. There's people really people are so, like, fixated on puffy and and masterpiece. Shout out masterpiece, shout out all those cats. But you're so fixated on who came before that you're forgetting who's right next to you, like the people who are right next to you. Are you going to be your co-founders like I was on the Breakfast Club cuz I'm more excited about being on e I l know the suspect, you know, it's like I'm more invested in who is coming up right now.

[00:42:57]

So if people would just focus their gaze on who's around instead of who's been ahead, I think that you could unlock a lot of value. You could find your co-founders, you could find investors, you can find peers. You could find anything, really. John, you said you said that is risky. It's not for the faint of heart, and I know you talk about being scared in this process, but you're interested because when you feel scared, you feel like that's what you're supposed to be and you run toward the fear.

[00:43:26]

So can you talk about Albert? Yeah, man, one hundred percent, I just feel strongly about using fear as a compass, a few pivotal moments this time. At this point in my career, I've done the scarier thing. And when you do the scary thing in your career is usually the less certain thing is usually the thing that the income isn't guaranteed. But, boy, if you're considering doing it at all, it's also usually because it's got your imagination captured.

[00:44:04]

You know, you guys were educators prior someone hit me up today and was like, yo, the guys who did it well used to be my my camp counselor.

[00:44:13]

So so someone someone said someone who is so crazy and it's great. And so, yeah, it's. Yeah, that's right. So, so so let's look at that for a moment. Right. There's anyone there's a reason there's seven thousand people listening right now. They all have a vision in their head that's varied from what they're presently doing and they want to nurture this new life. Cool. You could do it on the side. No problem. Eventually, if you're steadfast about nurturing this, you get to a point where you got to make a decision.

[00:44:46]

There was a point where you while was was had grown too damn big for you to be safe in your home, you had to brave the storm. Right. And so, like, when you're faced with that option, what do you do? And consistently what I've decided to do is do the scary thing. And so for me, that was dropping out of school to start my first business. I'm not necessarily suggesting that that's just like this. What I did for me that was selling the business for me, you know, time and again.

[00:45:16]

And most recently it was leaving Harlem Capital. You know, we raised forty million dollars. Well, you know. Twenty six years. Twenty six. Twenty seven. You know, managing forty million dollars is everything I ever fought for. But I had to be real with myself that I am not the fund manager type. I'm not the buttoned up tight. No disrespect to a massive investor, you know, but all the way with the time.

[00:45:41]

But like but like I like I like to just, you know, I like to watch a lot on Twitter if I want and not have an LP base, you know, come check me.

[00:45:50]

So. So anyway, I'm a really big fan for anyone listening. Whatever it is that's catching your imagination, if you follow it, I promise is going to be a harder road. But I do also promise that if you give me twenty four months locked in, your next twenty four months are going to look way different. And I'm really glad for having nurtured the bravery to follow my path, man, because we're not supposed to be here, Jentz.

[00:46:16]

You know, from what we're not we're not supposed to be here nosediving.

[00:46:22]

I have three questions on these are exactly what's a blueprint that you follow to help you with your success, because there's a lot of conversation about it on Twitter, LinkedIn. We'll give them a real about how much effort it actually takes to manifest an idea and turn it into something profitable. And then secondly, I want to ask you if you have. You feel like if you had no edge when allocating capital, how much you put into each deal to make sure you didn't burn through your entire phone.

[00:46:53]

Copy. So the first question was, what's the edge as an entrepreneur? Yes, like not to do these several things with the real one, how many hours you work, how many people you reach out to market in France, what are some of the things that you've done? Because I can feel the partial copy.

[00:47:09]

Copy. Yeah. So I love this. People reach out all the time and say, yo, how you get press? I'm like, you do some shit that matters. That's how you get press. Like, like the reason you're not getting press. The reason you're not getting coverage is because you're not doing anything that's emotionally resonant to people.

[00:47:23]

People swear that there's a fucking formula that you can if you have just the right call to action and just the right copy that you can trick someone into buying. Yeah, cool. You'll get a few suckers, but that's not how you build a business. So in my in my opinion and what I followed is you start with a really resonate mission. Mission opens doors that profit can't.

[00:47:45]

And there's a way for you to align yourself with mission within your respective business, you will has a broader mission about mobilizing the community that is expressed through a media platform. If you're in cosmetics, you can tap into a mission of highlighting African beauty, for example. And so when you now we're talking about brand building, it's less so about the product per say, like that loop. Why don't we sell insurance? But really, it's about the guts beneath it.

[00:48:16]

And when you do that, you can mobilize the press to write about you. You can mobilize people to join you, investors to jump on and so on. So that's my high level take practically what I would say for anyone who's interested in getting coverage or whatever, go and Google a competitor of yours. There is a tool called a back link monitor, back link, monitor. You can go to back like monitor dotcom, for example, and you can type in your competitors website.

[00:48:45]

And any one of those tools will show you any other website that's pointing to their website.

[00:48:52]

So if if someone had written about them on on Forbes' or on a blog or and or they're running ads, you'll be able to see all their Web activity pointing back to them. So what I would do then is if I find an article from Wall Street Journal, I would find I would click on the article, read it, find the author, typed their name on Twitter that usually on Twitter and tweet at them and say, yo, I really loved this piece.

[00:49:20]

We're doing something similar at insert company name. You know, maybe we can connect off it, you know, connect offline about this. And if you do that for one hundred writers, you should be able to get a few people to pick you up. That's exactly what I did. And people will hear this blueprint and we'll execute it won't execute on it, but then you will go hire a PR firm who will deliver when in reality you could just do it for, you know, a few hours a night.

[00:49:45]

If you do it, you'll be you know, it'll get you all the press coverage that you need. And it's not always off to Jones may walk away from 40 million, and when I was what I was, that was it. Well, he had points. The company when I got that money a week later, he left the like that. That's why as soon as you left, I text you, I'm like, you did some big congratulations.

[00:50:15]

I remember that I talk about the Ashaka before.

[00:50:18]

I just got one last question about C I remember the last time we spoke about this. You say 80 percent of MLA is happening between one and two hundred million price point, mostly on the coasts, New York and California. So it's crazy because, like, I want you just to kind of explain that, because I think we just got to think, even if we're not at that level yet, we got to think what arranger's. And just all the time we think like fifty thousand dollars or ten thousand dollars is real money.

[00:50:45]

One hundred thousand dollars or even a million dollars, like the average deal is between one hundred and fifty to two hundred million. So we talk about that a little bit. Yeah. I mean for sure, because I think I think the reason that that statistic is true is because, you know, is skewed towards the average skews larger because the larger transactions move. You know, there's so much larger than the small ones.

[00:51:17]

But also shit that's worth buying is usually big. Right. And so if you're talking about selling a business, like if the business is too nascent, like I couldn't sell Leupp right now, no one would want to buy from me. It's it's got a little bit of buzz, but all I've got is like a Google drive for the you know, I'm saying like usually by the time you get to the point where you're transacting and you're unloading or acquiring a business or in the massive investors case, teaching you all about which stocks to buy, it's a mature company with robust processes and so on.

[00:51:52]

And so I really am a fan of building, you know, intrinsic value and locking in and building for seven, eight, nine, ten years. You know, I really feel like if you start a company, if you're fortunate, it is going to be a ten year ride at a minimum. So if you can't see yourself doing something for a minimum of ten years, I wouldn't start it personally. And by the way, I know that there's going to be some people that listen and say, well, I just came across this click funnels thing.

[00:52:24]

I'm thinking I could do a little quick hacky. That's fine, man, but like, yo, your time is precious, my G. And like for you to invest in something because you feel like that's not how I measure my time, like I want to do shit that lights me up, I'm ready to rock.

[00:52:42]

I'm going to put my all into it. And people can tell when you do that. And that to me is is a is a winning formula, a lot more so than doing something quick for the cash. So so anyway, when entrepreneurs do lock in around that with, with that kind of attitude on a venture for 10 years, that's when the entities grow in value. And when you have repeatable processes that can run without you, that's when the valuations start to get very interesting.

[00:53:12]

And once you grow to a certain tier, your your business is valued based on a multiple of your revenue. Right. So in the insurance industry, for example, your business is valued at 13 x your revenue. So let's dissect this for a moment. If you grow a business to if I grow up to be 10 million dollars of revenue, which I do anticipate I should do within a couple of years, then a 13 x multiple.

[00:53:43]

That's one hundred thirty million dollars valuation now would I take that if someone said, yo, come and buy this, we're going to buy it for one 30? This sounds like a lot of money. It is a lot of money. But my VC didn't sign up for a one 30 and also consider the fact that I sold a good chunk of the business right to my seed investors.

[00:54:03]

So I sold the chunk to them. I sold I gave a chunk to my employees. And so now I got to think, damn. By the time I build it to 10 million of revenue and is worth one thirty, if I cash out here, that's cool. But like you're usually growing at a at a at a decent rate.

[00:54:23]

So you say, you know what, let me let me rock out for a little bit longer to see if I get this bad boy that 50 million once you have 50 million in revenue, if you multiply that by 13 X, so you guys start to see better.

[00:54:36]

So you start to see why that why the windows, why they get to what they get to. But quickly, let me just break down some some multiple valuations for some other industries. If you're in media, as you guys are, is usually three extra revenue. So whatever your revenue is, you multiply it by three X. If you don't like what that brings you to. EIO has a lot of founders don't. When we're early, we say, nah, I'm a I'm a build this up until I can get the number that I want to have.

[00:55:05]

Right. And so if you're out, you know, 500 K revenue 3x, that is one point five million. Would you sell it for what you saw on your leadership for one point five? Again, a lot of money, but not a lot of a lot of value to a lot.

[00:55:19]

Now if you really out to five million in revenue and then they offer you 50 million, OK, more reasonable. But I still think there's a lot more than that. Right. And so that's the founders dilemma. Right. If you're in cosmetics is also a three X if you're in a I get this, by the way, if you're an A.I. or data or some shit like that.

[00:55:38]

Twenty five X what about what about what about education six. So so six, six to eight experts this because I think this is really important watch North because I feel like a lot of entrepreneurs jump into a business and don't know what the outcome could be. Please.

[00:55:57]

So what I can research, you know, that's that's a good question. Let me let me.

[00:56:03]

I know the code just from like this.

[00:56:10]

I've got to say, we've got so many wild valuations of five years series that that's so, so, so but but to your question, rishard, like, that's why the average M&A mergers and acquisition activity gets to that range, because it's not like that.

[00:56:33]

You got one hundred million in revenue is that you got revenue of X amount and then base on the industry and you're getting the multiple now. Now get this for a moment, if I could, just for a second. So whenever you're in technology, remember I said A.I. is a twenty five X, I'm in insurance, that's a 13 X, but I'm an A.I. driven insurance company. So now you can get up, you can get a blended multiple.

[00:56:57]

I might not be able to get a twenty five X but I'm a fucking salesman. So when it's time to sell loupe and we said you know what, let's say 50 million in revenue and they're trying to give me a 13 X, I'm a yo but we got a lot of data. We got this. We got that I'm holding out for, you know, is like Hobe says, he's like they talk at 250. I'll hold it.

[00:57:19]

Hold it out for three, two, seven, five. I just might agree. So so it's all subjective. I want people to understand that valuation is really all subjective, is based on what you could reasonably defend and it's based on market caps.

[00:57:35]

So I'm saying like I think Earn Your Leisure can command a multiple because I don't think that you guys should be up here three X because you have a lot of intangibles and a lot of brand that you can stretch and make it a five X, for example. So so a valuation is subjective. Man, I thought it was it was a really great question. And I hope that people understand this is the underpinnings of venture, for example, which then grows up into public markets in venture.

[00:58:03]

When I was raising my round, I came up with a valuation. I came up with an aggressive one and they said, Well, why? And I said, Because I'm a G and because my co-founder and because we have we have this. We have that. And so it all depends on what you could sell. If you could sell it. Great. If you can't, you got to adjust. Your holdings are twenty eight I twenty eight on January one.

[00:58:27]

Happy birthday. So thank you. When I first met, ya know the first time I was like, oh what books do you recommend.

[00:58:34]

Things like books like. I say I'd say some people just got her guide dog. The ability which is like I'm saying like sometimes I'm like just you just roll you just a little person and it's like, I appreciate that, fellows. You act like way to get this far. He's the so it's like saying, well, yeah, follow him, watch the podcast episodes, watch his podcast. You got you got a podcast like sometimes you just can't learn stuff and books like even even me, like you might ask me questions about social media and it's like what resources I kids I have to figure it out lol.

[00:59:14]

Don't think I could really tell you is it. I can actually verbally tell you. I could show you. I can't tell you a resource to how to grow your social media following because I had no results to figure it out. We had to get out of there. When you were deploying capital what was that you were looking to get? Because of course, at the university, let's say 20 companies, maybe two would give you referring to me when I say, oh, well, you look fifty.

[00:59:40]

Yeah, yeah.

[00:59:41]

One hundred percent. I could I could dive into this. I don't know how many people here are like super in the on venture capital, but effectively I break it down this way. So when you for for a loop for example, and a lot of companies out there, if you are truly pursuing venture, I don't mean like you got a restaurant and you think you want to be venture like I mean like if you're truly for those listening, if you really want to go into venture and you want the understanding of like the seed market today because it will change in a year, it changes every year, more or less.

[01:00:12]

But you should give up about twenty to twenty five percent of your company. Right. And the valuation on average will be between four to 10 million. Ten million is the higher end. If you are a stronger multi time founder, whatever, four million is the nascent and and you should be looking to raise. I know it sounds preposterous, but like, you know, the seed rounds are growing. Like, you know, we close on a three point twenty five million dollar seed round.

[01:00:43]

That was a jumbo seed back in. A day and I came out, yeah, I got it, and then I've been watching all these announcements three, four or five, I was like, damn, OK, the seed rounds are grown a little bit. So if you're a founder, aim to give up about twenty to twenty five percent of your business, value your business anywhere from four to ten. How do you make that valuation? You honestly you make it up based on comparables in the market.

[01:01:08]

If you're in beauty, I would research a bunch of beauty businesses that maybe the last three to five transactions to close and try to back into what their valuation was, call them, ask them, figure it out. And then as an investor, if you make ten, ten investments, five are going belly up, zero three of them made you a 1x. So now you're negative because you made a one X on those deals, but you lost on five.

[01:01:34]

One of them will have a modest little 10x. So now you broke after nine deals, now you've broken even. So, congratulations. You just have literally broken even. But then you venture venturers and outliers business. Recently, the guys out here on Capital hit me up because I'm no longer in the fund, but I still have my ownership in fund one. And they're like, yeah, we got an exit.

[01:01:55]

I was like, yeah, boy, what is it? You know, modest. So the venture is an outliers business where, you know, you just have to consistently seed entrepreneurs working on things that you really believe in and do that consistently over time. If you make one off angel investment, you will lose your money. I would not recommend getting into angel investing unless you're going to take a position and do it consistently over time and make three bets a year, let's say, for five years.

[01:02:24]

And then you go to your question, man. Who knows? Did Robin Hood seed investors know that they were going to pop off? Everyone says that they look for a multiple but in reality bet because you believe strongly in the founder and the opportunity and then let the multiples shake out the way they do. That's my problem. You said that is an insurance company. Yes. You've got a unique way of tracking people and granting insurance based on the way they drive.

[01:02:56]

So I'm wondering other software companies that technology companies that you guys work, whether they are or is it like proprietary software that you're using? Great question. And quickly, I appreciate all the comments I have on here off to the side, I'm watching them. I appreciate you guys, man, just a tight knit community. You guys built something special. Antonio Pruden, Mom, Ruell, Black, Patrick Payton, Peace Music. Berlind You know, people like shout out sometimes.

[01:03:26]

Appreciate you guys.

[01:03:27]

OK.

[01:03:29]

OK, so you see the holes, you see lawyer, which is what they say that's necessar Noémie.

[01:03:35]

See you guys. Jay Turner. Shazam.

[01:03:37]

OK, so now explain to people s.. Explain lub I bet. So listen. Long story short, is insurance is racist. OK, I don't mean to sound alarmist, but here's the thing.

[01:03:52]

You are priced based on your demographic data, right?

[01:03:58]

And by the way, in the 1960s when we couldn't get FHA loans and I'm sure you guys have covered that here, but it's like FHA loan is like when you can buy a house for three percent down. But in the 1960s, famously, blacks were excluded from that, which, by the way, that was a number one driver of wealth in this country for a lot of white folks.

[01:04:17]

We were systematically excluded from that. And people point to the banks. But it wasn't the banks. The banks wouldn't loan because the insurance companies wouldn't insure certain zip codes. So that was like the history of redlining. Right. So when you look at it, it's like insurance is really the silent culprit. Insurance companies, insurance backstops trillions of dollars of activity. You can't get away without insurance. You can't get a loan without insurance. I mean, one of my investment properties right now, I couldn't you know, I'm and I'm in the middle of selling a building.

[01:04:49]

And they were running title today.

[01:04:51]

Hey, who's your insurance company? Everyone wants to be insured. All right. So this is really like the underpinning of a lot of society. And when you peel the curtains back and you see your price based on your income, your credit score, where you went to school and what you do for work. Which has nothing to do with how you drive. It's got nothing to do with a lot of things, man. And so when I took a look at that, I was like, well, so what's the impact of that?

[01:05:22]

Because I know I grew up in a very poor household, so like my mom was lower education, lower income, you know, you didn't go to school, so. So what does that mean? It means that communities of color are paying sometimes two times as much as upper middle, white, middle class white person, in fact.

[01:05:44]

So I was speaking with my head of insurance today. If you are an upper middle class person that graduated college but has a DUI. And has speeding violations, you get a better price than someone who's low income and and bad credit, but a safe driver. Bro, isn't that America in a nutshell, if you're privileged, went to college but have a DUI and smashed speeding, you get a better price than someone who's poor just because they're poor. Someone who's coming up doing their thing, so so what happens is an insurance.

[01:06:26]

People there are some people that get excellent rates, but then here's the thing, they're great rates are subsidized by people that are put on the opposite end of the spectrum and unfairly so. So at Loop, what we're doing is like, bro, we're man, I'm locked in on this, bro. I was passionate. I did not want to start a brokerage company.

[01:06:48]

I didn't want to create a cool little website that then sold you State Farm. I wanted to create a vertically integrated insurance company, soup to nuts, control the experience, ensure you you're being insured by loop, control the underwriting, control the policy administration, control of everything. Right. Because I feel like how can we expect the system that wasn't built by us to consider the impact that has on us? So so anyway, so Leupp, what we do, we we have removed all these things from our from our policy, we've removed credit, we don't look at what you work, what you do for work.

[01:07:27]

We don't look at your education. We don't look at your income. We measure only what matters, which is how you drive and where you drive. And we believe that those are the only two things that really should go into your price. And the byproduct is a lot more equitable insurance for our communities. So for all for all you guys watch your man. I mean, they're saying drop the link, I'm drop it. Right here is Leupp, Insure co Toltecs.

[01:07:52]

And I put it on YouTube also Daboub. And that is so true. And it's crazy because nobody really ever thinks about insurance like that. And insurance is probably one of the biggest. It is one of the biggest businesses in the world. Warren Buffett. As an insurance company, people need to realize like insurance is crazy. So you talk about the business of insurance, because from my understanding about the Breakfast Club, where they get paid up front and they invest the money and like bonds, and that's why they take a long time to pay you out, because your money, your insurance premiums are actually getting investments, whether it's life insurance.

[01:08:34]

I've worked in the financial services industry. So, yes, I understand that that's how life insurance works. It's like investing your money, which is not necessarily a bad thing, but I think it's important for people to understand the business of insurance.

[01:08:46]

That's a great that's a great call, man. So, yeah. Yo, Warren Buffet's portfolio at Berkshire Hathaway. Was made cohesive by the acquisition of Geico. There's a reason that he bought Geico. It's not because of the fucking gecko, right?

[01:09:08]

It's because insurance is a very, very cash rich business, because think about it, guys.

[01:09:15]

Insurance is a regressive tax. You're paying for the service ahead of any incident happening. And the incident may never happen. So everyone think about this at scale now everyone is paying into the pot, right? So what you have is a very cash rich business.

[01:09:36]

Now you have responsibilities as an insurer. You have to pay out claims when they happen and so on. And it's coming from a collective pot. But guess what? There's a float. There's a time between when you get paid, when the insurance company gets paid, and then if, God forbid, anything happens when they pay you out. And so what they do, what Warren Buffett does. You have this enormous balance sheet of a lot of free cash flow.

[01:10:02]

And the majority of an insurance company's profits come from invested premiums, not from underwriting. Not not because there's such good select. There's a risk and they price you so well that they make a lot of money from the same amount that went in and versus goes out. They collect all the cash and then they invest it, which is a smart business plan, not knocking it. I'm just saying that it makes you adverse to the customer. If you're incentivized to invest the premium and and make money on that for as long as it's out, then, you know, you're going to want to be slow on paying the claims.

[01:10:37]

And and so anyway, so that's what it is. Effectively, insurance is a giant bank, right? Insurance companies are giant banks. And guess what? They're faceless. There's a reason that they invest so much in mascots and ridiculous humor. And I don't know if you guys saw a Super Bowl yesterday just like ridiculous commercials. Right. Because they just have to imprint themselves in your head and it's like systematically indoctrinate you with your when when it comes time to make the decision, think of us.

[01:11:07]

And so I luttmann like this. This ties in perfectly to we were talking about before to venture capital. Like I can't think of a category where people actively like, dislike their insurers.

[01:11:20]

I mean I went on Twitter and I typed in car insurance and someone wrote for car insurance in all caps.

[01:11:25]

I'm like No one does that about their Kafe like no one feels that way about any category.

[01:11:31]

And so anyway, just a title all up, it's like I feel really passionate that this is insurance has gone by largely untouched. Man and shout out Killer Mike, who's doing something in financial services and banking. But that's the sexier cousin. Insurance is a BS, is complex, is regulated, is difficult, is capital intensive. And as a result, by the way, for those listening, I had a really hard time on the venture capital trail, even though it's not my first rodeo, because people are like, yo, you sure you want to do this?

[01:12:07]

This shit is difficult. I don't know of insurance. A lot of people of color like what about your fraud? Like people, yo, people had shit to say. And that's when I knew. That this was something worth doing, man. I think that building a community first brand has rooted deeply in the people and that is just more equitable is going to be is going to be really powerful.

[01:12:30]

Who's eligible for the insurance? Because there is a demographic that is eligible for it. Yeah, yeah.

[01:12:36]

Yeah. So so so the so insurance is regulated on a state by state level. Right. So if it was federal, be easy. I get approved federally and I'm available everywhere. But Loopt is insurance is regulated on a state by state level, which makes it more complex because then you have state insurance commissioners and you have different regulatory bodies and so on. So we had to pick selectively which market are we're going to go in first and then which ones are we going to seek approval in afterwards?

[01:13:08]

So the first market we're going live in is Texas Gargantua markets, one of the biggest auto markets in the country, right? Biggest, biggest state, most biggest population, 20 million people living there. A lot of communities of color. Dallas, Houston, Austin. What's up? El Paso, Rio Grande. I'm moving to Texas, by the way. I just don't like doing it from a distance. I'm rolling my fucking sleeves up. I'm moving to Texas.

[01:13:32]

I'm finding that everywhere I live in New York, where we were part of Texas. I'm moving to Austin, right next to Elon Musk. Let's go, baby.

[01:13:41]

I'm so, so, so.

[01:13:45]

So we'll be living in Texas, then. We're going to be in Illinois, Pennsylvania, Ohio, New York. We're coming, guys, state by state. But listen, I. I really need the community support on this. We're venturing to do something that just has not been touched in decades. So if you guys could go to Leupp and shortcode and just join that wait list, that is such a huge help to us. It helps build our momentum, helps build our community, our audience.

[01:14:10]

I see people right here. I live in Houston. I just join the wait list. I appreciate you guys. It's going to take a million man army, but and woman army. But we're ready for it.

[01:14:22]

Insurance is ripe for disruption, if you will, when you were both your stash for how to build a competitive advantage, what were the things you were looking at and the weaknesses that you saw that would give you an edge? And as a follow up in this area, do you think it's an asset or a liability to be an astronaut of?

[01:14:40]

Is there good questions? So, yeah, great question.

[01:14:46]

Right. Because before you had asked me that in isolation, right. You said what were the what are the things that you look for right now? We've contextualized it around an opportunity. So it's a little bit easier to dissect because every situation is different. So in this particular case, what are the downsides?

[01:15:04]

A lot of fucking competition, like you said, competition is not, you know, it's a little scary. All right, cool. Who takes a lot of money? A lot of established incumbents am.

[01:15:16]

All right. Bet. OK, so what are the upsides? I looked and I saw a lot of active, you know, either apathy or distaste for so so sometimes a large space could feel intimidating because there's a lot of competitors.

[01:15:32]

But if you look at the underlying sentiments, if you feel that there is a lot that there's room in it for the consumer to gravitate towards your brand because you can do it differently, then that to me starts to get interesting. And another thing that I look for is your am I willing to go for that to the mat for this?

[01:15:52]

Like, I'm not selling auto because I love, like, auto insurance. Like, I love the idea of the fact that this is an underpinning of our society that's been overlooked and is really, really impacting communities of color. No one's addressing it. And so if you can combine a really deep passion or really strong why for doing it and you feel like there's room to do it differently. Then the other consideration is like, I bet. Well, she can you can you it's one thing to have a fluffy brand, it's another thing to have like, you know, differentiate a way of an insurance in case you have to have a lot of sophistication around underwriting and things of that nature.

[01:16:36]

So my co-founder was able to help there. But yeah, guys, in in any business that you guys are working on right now, the strong why I really go back to that. I know a lot of people Leewood numbers and they say, you know, don't don't let your your don't let your your heart get your head. I say the opposite, man. Don't let your hair get to your heart. That's just how I roll, man.

[01:17:00]

Like, for me, you're going to be pitching at your best when you're on fire. So if you're on fire about the opportunity. But if you feel like there's a void. Right, like there is a million podcast guys. But you still did it because there was a void. There was something in the market that you didn't feel was being satiated and you found your niche, you found your community. So if you feel like there's room, then there's room.

[01:17:23]

And then lastly, you got to back into the skills that you're going to need for it. So, for example, in order to build an insurance carrier, you need strong marketing chops and you need strong underwriting chops. So if you have the Y and you feel like there's room, then you got to build the team that has the core skills that you're going to need in-house. I'll tell you this, if you are outsourcing a core competency. So in other words, if you have a core skill that you need to build a business, right.

[01:17:54]

And you know, it's core, if you outsource that, you're you're fucked. You're very vulnerable. You need to bring the things that are core in-house.

[01:18:03]

Anytime you can do that, you're strengthening your your probability of succeeding, you know, and it's like a lot of times we got to appreciate the moment we use a shot of the spectacular with him in Miami. And we've had a conversation about it at the end of the conversation. We talk like an hour. And he was like, you have cameras rolling at all times. And I'm like a documentary. And I'm like, oh, you know, this is like this conversation.

[01:18:30]

This is like we are we live in history. So it's like a lot of people don't fully appreciate until the moment is over. So like when you see, John, ten years from now and he's like a billion billionaire CEO with that five hundred million dollar valuation. And let's go. Hey, this is you. You're watching this, too. But like we all know, America has no money everywhere, you know, and it's Black History Month.

[01:19:02]

And I even think about that. I think that's a great point. And it touches on what we were talking about earlier. Like, I have a lot of respect for the greats, man. They paved or they paved the way and they opened doors for us. And I really wish that people would actively look around at who is around right now and realize that, you know, we're creating the future and it's across categories. And that's also one of the reasons why I did feel strongly about the insurance thing.

[01:19:31]

For example, just because, you know, this is not a talking point, like is for real. Like one like one that George slowish. It happened, bro. I like I get chills thinking about it because I was like, damn. We got to stop waiting on these systems to be like, I felt like these fix these systems would be fixed for us, like, yeah, surely someone would surely someone would go and do it and go fix it, but.

[01:19:55]

It's not that they have their foot on our necks, and I don't mean like white people, I just mean like in general, the way these systems have been built have their foot on our necks. And I feel like we've got like no one is going to do that shit for the 7000 people listening right now, like. Like, whatever vision it is that you have in your head that you feel like could be done different. Guess what? It's not going to be done different by someone else unless you step up and do it.

[01:20:26]

And it might be done by a competitor in a similar way, but it would never be done the exact way that you have in your head. So that to me was just like a shockwave man. When I seen that should happen, I was like, yo. There's not even any time to swing small like we got to swing big man, we need structural change.

[01:20:44]

So anyway, I resonate with that. I woke up yesterday morning and it's out tomorrow. You'll be with him. He's great with acronyms like, you know, now was the moment like, no, no other opportunities to do it now. Right. And so you're doing that obviously that way. You there's plenty of people out there that are just on that. It's going to take the appropriate action and do it. It's not the way it'll be different.

[01:21:14]

But as you know, Don Henry is that guy. He is a living legend and we're happy to be part of Israel. Thank you, man.

[01:21:25]

I appreciate that. And I'll just do some parting words. My lead investor, you know, when I jumped on a first call with him after he invested, he was like, oh, don't be scared to spend the money. He said, the bet is now. He said, I didn't invest in Leupp for twenty twenty three. He said the bet is now like like guys, I want people to palpably understand whether you're in private market is doing a side hustle, whether you're in the public markets, markets change.

[01:21:56]

There is no like this is the first year ever after Korona after covid, there is no year ever that's that like there's no blueprint for this year. Like like literally covid was so fundamental that it's like the birth of Christ in like I don't mean to be blasphemous, but I mean, like, you know, we have B.S. aid like like it's like before Korona.

[01:22:21]

After Korona. This is fundamental business will never be the same, markets will never be the same, there's a whole wave of opportunity right now that's uncharted. And I really feel strongly that, you know, markets change. Guys like these opportunities. There's always going to be opportunities. But the opportunities that exist today are not going to be around in the next year or so. So make that move, guys. Make that move by whatever it will, of course, is out there.

[01:22:49]

Buy whatever stock you feel you need to buy. Do what you got to do. Fellows and ladies listen in. But but but don't sit on your ass. Do anything but that, you know, and I'm not concerned with this community. But but yeah, man. Appreciate being on with you guys, man. For sure. For sure. The movement is now.

[01:23:11]

One final question before we wrap up. Can you give all the listeners a piece of advice that is actionable, but it is not fluff, so not like you're not, like mission like follow your fucking heart.

[01:23:23]

Yeah. It's that a slogan for books. And then there's actually the word information behind us that we have to do on a daily. And I want to write that paradigm. Can you tell them something? That she would have walked in on it, twenty two or twenty three to maybe help get her back. Yeah, so it's a great question. And for me, man, the value of being a practitioner has been amazing. So, for example, like there, I'm shocked at the amount of people that have an opinion formed around something that they've never done.

[01:24:01]

Like like, you know, people would say, yo, you know, don't use LinkedIn ads.

[01:24:05]

I bet you you never ran on LinkedIn and in your life. Right. Like, but for me, the the actual value of being a practitioner is like you will be shocked at the amount of people that don't actually, you know.

[01:24:24]

I don't know what the verb is, but like practicing, like try something, right, just try not try. So for example, like with Facebook ads, guys, do you realize that right now still you get charged one cent per impression if anyone here because you had asked for four for entrepreneurs or stocks or whatever, if you take your cosmetics business, take your media business, take your T-shirt business and shoot a video, one cent per impression, you could put ten dollars behind it.

[01:24:55]

And, you know, you could really you can get thousands of eyeballs for that T-shirt. You know, how many how many doors would you have to knock on to to get the same kind of attention? So for me, I really feel like we are in a unique market environment where there is a lot more emphasis placed on brand than ever before. So whatever you whatever you have at your disposal to build your brand, I highly would recommend investing in the development of your brand, not necessarily your product, although I believe in that, not necessarily in sales, although I believe in that it's the infusion of your Y into what you sell is brand.

[01:25:37]

And to the extent that you can nurture and develop your your brand and story around it and invest in content like guys, that's made for me all the difference. You know, the fact that when I step into a room, there's context already, there's no small talk. They're familiar with the journey. We can get right down to it, you know what I mean? That, I think, is a unique opportunity to this generation. And I think that for anyone listening, you will never go wrong, invest in development of your brain because it follows you everywhere from project to project.

[01:26:11]

So that's what I have for folks, for anyone listening. Thank you. Thank you so much for listening. I really appreciate it. It means a lot. You know, man, I've been doing this for a long time and just being given without without asking for anything. And I'm cashing in right now if I've brought you any value whatsoever. If you go to loop in Chicago and you just join the wait list, that would mean a lot to me.

[01:26:37]

But thank you, guys. I'm looking forward to transform industries. I'm looking forward to growing with you guys. You guys are doing very, very special stuff, man shot up to the platform, just social media handles and all of that stuff.

[01:26:51]

Let them know that before you leave as well. One hundred percent. Hundred percent is at John Henry style. So John Henry style. Follow me on Instagram. That's my main channel. I'm also on Twitter. I'm also on LinkedIn.

[01:27:03]

You can catch me probably about how could you invest in Luke.

[01:27:09]

Oh, and those. Oh so so I have a fun thing that I'm that we're going to do.

[01:27:13]

We're going to go right back out to the markets and raise another twenty million dollars is my goal sometime this year. And I am going to open a small branch for the community and and so it ties it into the crowd funding piece. Yo how dope is this. Right. How dope is it for an insurance company to open up a branch and say, yo, not only could you be insured, but you can own this shit.

[01:27:36]

And by the way, I'm not talking about owning Berkshire Hathaway shares when they're worth two hundred fifty billion dollars.

[01:27:43]

I'm talking about buying shares on the ground floor. And as we grow as a community, as the company grows like your guys, you got shares grow and the value grows like that. To me, such a powerful thing, like the idea of like we're going to turn this shit on his head, you know, like I think that insurance slept on communities of color for too long and we're going to build a business in there, blind spots, the same people that they overestimated, that they underinsured and that they overprice is going to be the same reason why we get to a billion dollar valuation within a few years time.

[01:28:15]

So we got money.

[01:28:17]

So, you know, he's already invested.

[01:28:22]

Look, fellas, fellas, fellas, thank you guys so much. I have a question for you guys real quick. Man, I'm just super curious to know, like, can you guys share a little bit of a preview of, like, what's a business move that you guys have been considering, that one that you could share that might be on the roadmap? You know, I love the media business, man. Like, you know, I'm not in it at the moment, but like, I love this site that you guys moved from afar.

[01:28:50]

Can you talk about a warm business move that you guys are cooking up some strategic element? Are you looking at acquiring a media property? Or you look like, oh, now tell me tell me what you guys are thinking about that. You can share that. I appreciate that you are on network as we talked about that before last. How you. So that's something that, you know, it's like one thing. All right. We got a cool show and people like you, but we developed great relationships with a lot of great people and we felt like we can help other people develop their shows and give creators a voice.

[01:29:19]

That's the hard the hardest part is to get somebody to listen. I want you to listen to you. If you if you've got something to say. That's the easy part. The hardest part is how do people know who you are when there's a million people out there in the world? Everybody's talking. So while network is something that is often is up and running right now is we're looking at three shows in the top one hundred by the end of next week, God willing to what you all that or so you have three word, three shows that we got two shows right now have three show.

[01:29:51]

So South Beach is our social park podcast job to ask guys inside the vault and of course, of course, marking Monday. So like just like how you said as far as growing laterally, looking at those valuations and looking at, oh, you know, ad dollars from corporations. And so that's that's that's what we focused on. One thing, too, what goes into bloopers, we just found it. I don't know. So I love the space.

[01:30:27]

Like we watch the space. Like, we can do that. We're going to add a that network.

[01:30:32]

We'll know one thing, too, which is while we're on the media business, because I love it. So interestingly, a lot of the IP that went into that develop movies came from books before, but now it's actually podcasts. And so this is. Like one inside inside that I have, because I used to host the game in media, which was acquired by Spotify, but a lot of their podcasts were becoming iPods that were being syndicated into films and television shows.

[01:31:02]

I'm sure you guys have come across that. So interestingly, EIO could be in a position not only to, like, mobilize creators and give and give these folks a voice, but just also incubating IP with shared ownership that could then be licensed and distributed across different networks in different formats. It's a very, very, very powerful thing that you guys are sitting on. And by the way, speaking of multiples, when you get into the IP business, now we're talking 18 valuations, by the way.

[01:31:33]

So so that. So you guys moving laterally like that, that's how you guys are able to get those blended multiples. And that's why we said I was never going to be a three multiple because, you know, you got you got those blends going on. So.

[01:31:48]

So 80 percent what is 18 is the age of 18.

[01:31:52]

Extra IP libraries trade at 18 X.

[01:31:57]

So what about what about what? The multiple for consumer facing consumers, a high multiple man consumers, bananas, like there's a reason why a lot of the unicorns in technology are consumer, Robin Hood, Oscar lemonade, you know, like because the valuations are bananas and the market potential is gargantuan. The tough thing is the the competition. But the way you solve for that is create a beautiful brand, which is why I think consumer fintech like Leupp, for example, if you compare segmentation brand and and and we've got a nice big brand in tech, I could talk about all the Shalaby, so.

[01:32:42]

Yeah, yeah. Be easy, fellahs. Appreciate you guys. Can't wait to be back on man. Let me just say the word and I'm in here guys. Thank you.

[01:32:55]

Oh, last thing. Last thing, last thing to anyone who was in Texas, I want to do a Texas take over. Man, I don't know how your governor is on the commission. I think we will respect, of course, the the health and safety protocols. But, man, we were this close to all the listeners to doing a take over in Philly. What you while it was me, it was I mean, it was like, yo, we had it lined up and it fell through.

[01:33:18]

But I'm saying that he lives in Houston. Did you know that? Oh, yeah. I agree with you. We always yo yo.

[01:33:28]

I say that we need to do an activation in Texas and I still got cat, I still got kind of like support so we could Cadillac brand it, blow it up, turn it into a podcast, whatever. Right. Like do a dinner format or interview format, socially business with the crowd in the back. And we could do it in Houston. We could do it in Dallas. Austin's a little white but but we do it in Houston and Dallas and just rock out.

[01:33:56]

But I want to sprinkle that out there and just throw it in the universe because I'm sure I'm sure that's in the cards for us. I appreciate that. Well, thanks for having me on the problem for John Legend himself. There are a lot of gems inside of you right now. John Henry, always every time we speak straight, talk about sex and everything else on it. I mean, we got here, hey, you want to do a couple of questions and get it to answer some questions?

[01:34:34]

No, I got no game. Yeah, if you are on my radar that obviously people are probably interested in. Well, so tomorrow our Afropolitan got a report in that reported Wednesday that we have all reported Thursday. One of my big, big, big, big time. My list is doing something good while I'm waiting for them to get to a number that I want to interrupt. But my interview with my mom is actually. So this is your point in our Daily Dose report job.

[01:35:10]

Everybody else is all about ready to go out to all the people in L.A. that listen to the information. And so some very good times. And so they report it to me. So that's in the cloud computing space. Disney, 160, 60 for another. How to one is running away from. But we've got really once we get into it, I will be in other parts of the world just about. We want to jump in. You want to witness all of us, wait till next week because I want to I want to just try to give a couple since we got we got you in the flesh.

[01:35:49]

I wonder if we can get a couple of questions answered, John. That was a legendary situation. So we got to get as much time as we need to talk. So supportive brother will grow. Mike, what's going on? You if you've been a muted. I hope you are OK. So I had a list. I mean, this is crazy. I had a list of questions, so but I'm about to go back to work. And then so you said only pick a number of trades.

[01:36:24]

Is that only for futures and options or is it for all stock? For everything in the short term?

[01:36:32]

Everything, everything.

[01:36:35]

Showtimes, everything that you're holding it for less than a year.

[01:36:38]

Go and look and see if you never too have how much better you would have done and what the percentage difference will be. Brokers know it. Like if you blow your account, you get margin call. They can stop you from trading. It would be in their best interest to potentially cut off your returns. If you draw down what they don't do it because they know if you lose, you're going to double down and put more money back into it.

[01:37:04]

So it's like you going across the top ten times. If you cut it in half, you'll pick one hell of a lot better. OK, thank you very much. Let's go to one one, Castro Amedure, something was going on. Going on for this hour, how are you? Good, good. So I'm faced with a pretty interesting scenario right now. I'm twenty two, just graduated this past summer from Brooke out, John Henry. My question was actually a little entrepreneurial based as well.

[01:37:43]

But basically I've been in crypto since like twenty seventeen. It was my first experience with investing and up until recently has been getting pretty crazy. So I currently work for a big bank from New York, but moved to two dollars over the summer. So basically. I have a good amount of money that know has grown over the years, thankfully, because of crypto. I'm a red panda earner, so it's like I'm kind of faced with a dilemma, whereas, like, I kind of want to go that entrepreneurial route and quit my job that I've been in for like eight months now, started investing this summer.

[01:38:36]

But I'm kind of stuck in between words like, you know, this crypto could go higher.

[01:38:42]

But if you think about selling a crypto to support your lifestyle as an entrepreneur. Yeah, like, I kind of want to go all in on learning how to trade and kind of do like long term options and just build a really decent portfolio. But I also want to educate other people. So that's kind of like my entrepreneurial passion, like teaching other people how to invest. Thankfully, with EIO in and, you know, every all the other educators on YouTube, I've been able to grasp a lot of knowledge.

[01:39:15]

But what I want to do is really focus on the Latino community and kind of go that route. But I just I don't have the time right now because my job is pretty demanding. This is my passion and it feels like, you know, this is the opportunity that has presented itself right now. So it's like I'm kind of stuck. Do I go that route like John Henry kind of said or the kind of wait through it? So can I did.

[01:39:46]

If you believe in crypto. For 10 years to don't quit your job, because I want to tell you the ugly side of entrepreneurship is no one tells you how tough it is, how many hours you work at your job, probably 60.

[01:40:04]

How many hours a day do you work? Nine, nine, ten hours after March. Here for you, what do you want to work for? Will you ever been in love or met somebody that you could not stand to not be around if you don't work that job more than you'd be around her? We should not do it at going no. And another thing with the Bitcoin situation and do your research on what you can actually, like some people have an issue is like let's say all of your money, hypothetically, is a Bitcoin.

[01:40:40]

But you know that Bitcoin, you're thinking that Bitcoin prices will go up so you don't want to sell your bitcoin. It's a catch. Twenty two things like if you sell your Bitcoin, supports your lifestyle, you got to lose it so you can actually borrow against your crypto and you can use that. You can use Bitcoin as collateral. There's different sides. I thing one is block by block, as I call it. It's a few. It's actually it was actually a point of contact.

[01:41:03]

I'm trying to think of a point. It was a while ago that that was that was the utilization of the coin was to actually use the crypto as collateral and actually loan out the crypto if you can. So you don't actually have to sell Bitcoin to actually still make money off of it to support because that's like a catch 22. And that was actually what when when I found out about that point, that was something that made a lot of sense to me because I was thinking, like, you've got all this Bitcoin.

[01:41:29]

It's like stock, almost like it's like this paper. If you if you need money, what are you going to do if you don't want to sell it? So there are alternatives to that. But thank you for your question, bro. All right. I would say this to Matt, and I know your job is very demanding, but fun, fun to allocate the time depending on whether you're doing the work on the weekends, because people learn every day, all day.

[01:41:54]

And so if you want to do that and that's your passion because it's like that's what you want is yeah, I would definitely just try to do it on the weekends. Studying on your lunch breaks whole is allocated on a little bit differently and pursue it. I don't discourage anybody that has not evolved, but I'm not a father. But I'm telling those breaks. I'm studying at the school. I'm studying before I wake up and when I wake up in the morning what they're studying.

[01:42:19]

And I'm not saying that to dissuade you. I want to show you the real charts up right now. Listen, but you you have to realize and one of the biggest mistakes you're going to make in building the business, you want to start with your family first. You're never going to get back. If you want to leave, leave when the business is producing five or seven times what you're making now, because at some point you're going to hit a rough patch.

[01:42:41]

And guess what happens? I'm assuming that you're working in a black and brown community. What are entrepreneurial ventures? Don't work. Our family says you should accept the job. Tell you what, I lived. But wait, there's nothing wrong with working, there's nothing wrong with working, and if you hate your job, you use that as motivation to get better at this and then you can make your promotion, which not easy. But if you want to use it as motivation, come out you and then in a year or two, you'll be dramatically different.

[01:43:11]

Can we talk about the elephant in the room was the Dodge coin? Well, the dog was one of the in twenty seventeen.

[01:43:22]

That's kind of.

[01:43:26]

Some say does seem to be Dodo said Doggy Dogg on the so the dogs dogecoin George called crypto enthusiasts are going to slaughter us. But it's not a joke. This is something that has to be addressed. We started off as a joke and Elan has been running this thing crazy on Twitter. We put it tweet out all the data said like, what do you think the future of our money is? Dogecoin or all other cryptocurrency combined? It was like seventy three percent of the people that know what's going on and is running and everybody keeps asking me about dogecoin.

[01:44:08]

So. What are your thoughts on what your thoughts on this is going to fall apart? You hear about GameStop and AMC and then. I mean, people, people what I mean, it just those flash bangs of like when somebody was under a pain, which will get a tenth of a penny tonight at eight cents. And so people are looking at those in that climate is just like, go on. I don't want to miss out. Yeah, that's that's what happens in that.

[01:44:39]

And I don't want to miss out for those of you in a good job. I just want to stress and I was talking about my brother John. I was talking about this. We have to know your predetermined, whatever that is, and make that the most routine so normal if you have a 100 percent return push to have a higher return chart right now, Iran. So if you guys got in. Maybe take a quarter of the profit and let it run and expose that to get out and you hit a home run.

[01:45:10]

What I don't want you to do, as it was back in March and goes back and you're like, man, because what is the competitive advantage? And also look at the market cap for Google it and see where they rank. That's the same thing. I mean, you got to be careful. But even if something is can stuff, if you get it at a low price, which has an advantage, I know what you're saying. And John talked about multicam.

[01:45:35]

So if you want to trade something that is highly leveraged or low float or pinchy, what is the most or what you want to add? You can't have a 10x. So Slovaks is a homerun. It's a homerun with those windows. I mean, Elon tweeted about it saying to the moon is speculative. But just to point out, this is. I'm watching. All right, people. What institutions get behind it that in your case, it goes to the mall or anything else?

[01:46:09]

It goes to the mall. Oh, I'm on my two cents on this. Goes to the mall. Yes, that's going to happen, but just because you can make money or something doesn't mean that it's so fundamentally sound. It's a true story. It's a good trade. That's a good trade is a good trade. It has no real utilization. It's not a good fundamental crypto point. Any crypto expert will tell you that it was never it was started as a joke.

[01:46:40]

That's why the logo is what it is. You can make a lot of money on jokes. It's not funny. No. No, it's not. So. So I will say this. Long term, do I believe in Bitcoin? Yes, I believe in. Yes, I don't believe in Dogecoin a lot. I don't think anything is possible. Do I believe it's to be here 20 years later? But do I believe that it might go to 50 cents?

[01:47:07]

Probably so much money. So you could you can make your own decision on that. Also, the last time to hit about this time, when was the last year that they hit above? And then what happened after? So my underlying philosophy, I think, if you believe in it for 10 years, because you are in the probability over the last time it hit this price was what happened in January 2008. The Democrats won. Fortunately for. OK, you know the dodge ball well, hopefully so that don't care because you got involved here like you when you're going to get in and direction, if you have to know if you're getting there, saying if you got to the top of one hundred and a five percent sure not to tell you about what is happening, is this one up and you're getting formal.

[01:48:02]

We talked about last week, we could have stopped to have a job, notice about some of the tools that gotten so doge to them all. This is this is not financial advice. Don't back to go buy dough, just a crash in the plane, which a lot of you throw at one point five. But you never know. Yeah, you never know. Well, that's not at all. That's typical of situations in which that was a real situation.

[01:48:36]

J.P. Morgan was saying it won't be a good asset in London. They were. That's what I tell you guys. Go, don't. Follow someone as like follow what they are doing down here in the States. It's about 17 to 20 minutes late. Surprise, surprise. This is just the way to follow the money out. They were the money. Yeah. Follow the money and shout out to the Bitcoin trust also has just told us about that was up like 70 percent to 20 percent.

[01:49:09]

So Bitcoin went up 40 percent. So JDBC is the Bitcoin trust that you can actually buy the stock exchange. So for people that are fun to be oh, is it so people that are still a little nervous about putting their money into a cryptocurrency because you can lose your wallet or you think you'll know how to do it, you just get comfortable buying stocks. You can actually buy the Bitcoin trust, which mirrors it's like an index fund, kind of like it mirrors the Bitcoin.

[01:49:38]

Don't buy right now so high. But it started trading today, which is the theory when the thing to get back boys on trouble, but also for you to target on exactly the target. One twenty six ninety nine. So if you've got a hold you can see which one ninety nine is actually starting the plan which was one hundred twenty six thousand thousand point and all that changed. My sense about the economy I think is like if you also want to about the big one that's going to happen next year because because interest rates stay low.

[01:50:15]

Funds are going to continue to allocate place, OK? And so, Kathy, run again for a lot of investors who were doing a terrible job. So now she'll come in and knock out 40, 50 percent. You can give me several percent and not doing any work, Randi, or whatever hedge fund. Now, all of a sudden, this woman said, I can get you a multiple that you have to produce. Now you have an asset class like a higher return.

[01:50:37]

They have to beg for money. The institutions of something to replace. And that's part of the reason why this loan allows interest rates are zero, because one of the most obvious things that I've seen in recent history. Banks have been piling into Bitcoin. JPMorgan piled into Bitcoin. Hedge funds have piled into Bitcoin. They have the Bitcoin. They have the bitcoin knew that might get it, that respect which respect that they have. So they have fallen in love with what they have.

[01:51:11]

They have Bitcoin fund on the stock market. And Elon just bought one point five billion into it. So you think all these people spent all this money all this time, all this energy for it not to go up here? Yes. So that's crazy. So Tesla had 19, 19 billion and they spent one point five months ago. Don't be surprised at the jet lag. So we'll talk about the performance of of these sort of things. You know, they'll shout out to our ladies behind us today before we go outside behind us.

[01:51:50]

Yesterday was the 30 year anniversary of the Super Bowl that we got rid of. We got we've got two classes that we used to play that we started when I was growing up. So we got that. And, of course, we got the control the control syllabus and of course, the legendary atop legendary threes. Our top five, one of the top three is a serious, serious disease. So we thought, well, I was going to ask.

[01:52:25]

You said that. So there was rated R slightly more so. Well, listen, as always, before we go, reach our. Somebody call, somebody check in or somebody to make sure that they're doing what you always do ultimately. That's all we've been saying for weeks, no, reach out and check on the people around you. Every now and then, that was something to make sure that that's that simple for a lot of time. We spend time doing that.

[01:53:16]

We've got to get ourselves out before we can take anybody else. And so somewhere it's always important to reach out to people who we've never spoken to. Well, you never know what we'll do. We love you. It's always rocky with your influence sometimes, and you never know. And it's been a real we'll see for tomorrow. The massive episode will be dropping. That is a big one. Big, big shock to the teams out there. And you put that together.

[01:53:51]

Shock that all the studio audience that was in attendance for that. We had our Wall Street tackle right now and all we had to share before we left there to watch it so much as it was it was a crazy time. And it was one of those moments, like we said earlier, a lot of times we are in the moment and we get to realize that, you know, this is this is monumental. So we took time to just recognize that.

[01:54:19]

And once again, we have a wider universe in the classroom, which is going to be phenomenal. And there's some surprises. Yes. It's not up to everybody out there. All this will be out on your podcast or outlets a couple of hours. So the don't to get to go to. So go to Apple podcasts, subscribe to the podcast, read it five stars and just leave a comment. You can just leave whatever comment you want to just say.

[01:54:56]

Amazing, positive about it all. Leave leaving with the last word in try to open up the home. My brother is there for you to tell how many hours a week with an average. Because there's a perception of I can do three hours a day and I and I tell people to tell me there is no work schedule, when you wake up and you get to where you take breaks in between, you might you might go to jail. You might say you're just out of work or two or to fall asleep.

[01:55:35]

And that's it. That's. That's that's a I woke up this morning and saw me watching the news and said that it is like seven an now here. There is always, you know, I wasn't there, but I want to trade. I want it is the price that you have to pay for this has got to be honest with the price of those as as. The reason I keep bringing this up and know if you're not going to work already.

[01:56:03]

And I was there before when I was like in a business that I didn't love and it was like a pain to answer the emails, the hospital calls it the support to my family. I love you. I love you. I you can go home again. Thank you for making this magic. We got to go through this.

[01:56:21]

And I didn't actually say that. It was it was it was slurred, but it was it was it sounded like it was one of those things. It sounds a little different than what it actually was because, you know, I think of like, you know, cause I'm glad you said it. Not us. Not it's not us. It's not. Oh, yeah. All those bozos.

[01:56:42]

There's a lot of big pages on you, too, that have real user on it. And they're asking people for cash, the actual people to text. And no matter what you're in it, five thousand dollar giveaways and all of that. Those are scam pages. We have nothing to do with that. We try our best to let people know that unfortunately, there's always some bias to try to get over on people that, you know. So don't don't fall for that.

[01:57:11]

Don't send any money to any weird address. We're not going to for the money we had. We not we're not is no giveaway going on is if we do a giveaway, you'll know we do a giveaway. We'll I'm only here say we're going to give away. Don't have somebody else trying to. Three out of five thousand dollars last, the last thing was the number one or two thousand thousand one at random numbers up. Now what I want to get down to quit acting like you put your right hand up, but we provided some incredible value.

[01:57:51]

So that's what you guys want to be in. Yes. You know what we're all about. Then ask, can we start to try to start a little bit? We have a little. So next week is a big we can't say everything is top secret right now, but I want to say so that next week we got to this big work is a big, big, big, big market. Mundy's next week we keep raising the bar. Got to just keep going.

[01:58:19]

So I was about to say next week. Next week we got we got a surprise for you guys. So that's it, man. Thank you, guys rocking with us. We'll see you tomorrow, Tappet, and we'll definitely see you next week. Look, opened up to my mom. I love these clothes. Go.

[01:58:46]

Dan. Monday, on Monday.