Summary

• Pre internet, the problem was not enough information
• Post internet the problem is information overload
• And the vast majority of financial information is garbage, the signal to noise ration is 1/99.
• You’ve got 22 year old kids on YouTube giving financial advice to hundreds of thousands of subscribers
• Kids that haven’t even earned a hundred thousand dollars let alone a million dollars
• I’ve earned six figures in trading, sales and in personal development (and I’m not even a finance guy)
• As a young trader I had 3 mil in buying power and made 100k take home in a month…
• And I can tell you with certainty that no one knows where the market is going
• The best in the world are wrong all the time, they’re just right slightly more than they’re wrong
• And they bet big on their winners, and cut their losers quick
• But even those guys blow up, just look at Long Term Capital Management
• The best in the Business, Warren Buffett, George Soros, Ray Dalio average no better than 20% a year
• But that 20% didn’t make them billionaires, not even close, because 20% doesn’t get you rich
• An extra 12% compounded every year is worth next to nothing to a poor person who’s $10,000 investment nets them $1200 a year
• But that extra 12% compounded is worth a literal fortune to a billionaire, 12% on a billion dollar investment is an extra $120 million dollars a year
• Selling that extra 12% to wealth investors and taking a piece of the profits is what made Soros, Buffett, and Dalio billionaires themselves
• What got them rich was the same thing that gets everyone rich, OPM or Other People’s Money
• The same way you get rich in any other service business, from coaching, to real estate to insurance, you get OPM by selling them that you’re the best service provider
• Fund managers are really nothing more than service providers, with the service they attempt to provide being the beating of the S&P every year
• Hedge funds managers run service businesses and make their money off salesmanship, they sell their billion dollar clients that they will not only beat the S&P, but get higher, and more consistent returns then their customers
• It’s true that the best fund managers provide a superior service, but that service is worth next to nothing unless you can sell it to wealthy clients
• This is why Warren Buffett openly admits the most useful course he took was the Dale Carnegie course on How To Win Friends And Influence People
• So the best guys in the world only do 20%, which won’t get you rich as a small investor, and they only got rich themselves, by getting access to billions of dollars in investments, which you don’t have, the best you can get is a tiny bit of leverage from a broker, which you do not want, because you have no business going into debt to gamble on the stock market with your rent money
• Most financial guys are no better than economists or talking heads on CNBC who are useless at best, counterproductive at worst
• They talk with certainty about what happened and what will happen, as if they actually live off the market bets they make as opposed to the views they get as an entertainer
• The problem with many fiance guys on Youtuber throwing ideas around is we don’t know how much they invest, we don’t know their ROI, and the knowledge is rarely
• Rarely do we know his AUM, ROI, his prediction percentage (some exceptions like my friend Jason Fieber from dividendmantra who is completely transparent)
• Or you have guys talking with certainty about where bitcoin will be 20 years from now, they’re no better than Jim Cramer
• A few guys I like are MJ Demarco who tells you to get rich off building your business and then build an income tree from bonds and live off the interest
• Or Grant Cardone who tells you how to get rich from learning sales, building a service business and then moving that into a real estate fund
• Neither are my path 100% but by far better than most, and we know where they’re coming from
• You also have the frugal guys talking about saving $4 a day which just peretuates a poverty mindset and a shit tier life

The way to get rich is simple, get OPM, or other peoples money:

1. You do that by first learning and mastering a valuable skill
2. Second learning and mastering sales
3. Selling that service to people who need a problem solved
4. Maxing out your margins by selling your service at the highest possible price
5. Minimizing taxes
6. Dumping your profits back into your high margin business
7. High level options are OPM from investors or debt
8. Once flow is stable can potentially expand into other high income flows
9. Can also get rich/OPM off selling products but it’s harder/more capital intensive/lower marging and better suited for already wealthy and succesful entrepreneurs or exceptional IQ young guys who have a legit shot at VC money/Debt

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