what’s that believe nation it’s Evan my one word is believe and I believe in you
one word is believe and I believe in you
one word is believe and I believe in you and I want to see the great thing that
and I want to see the great thing that
and I want to see the great thing that you have inside you explode up into the
you have inside you explode up into the
you have inside you explode up into the world and see some amazing things coming
world and see some amazing things coming
world and see some amazing things coming from you and so help you on your journey
from you and so help you on your journey
from you and so help you on your journey I’m starting a new series it’s a test
I’m starting a new series it’s a test
I’m starting a new series it’s a test I believe that success leaves clues and
I believe that success leaves clues and
I believe that success leaves clues and so in this new success clues series
so in this new success clues series
so in this new success clues series we’re gonna look at how the world’s most
we’re gonna look at how the world’s most
we’re gonna look at how the world’s most successful investors think and as always
successful investors think and as always
successful investors think and as always guys as you’re watching if you hear
guys as you’re watching if you hear
guys as you’re watching if you hear something that really resonates with you
something that really resonates with you
something that really resonates with you please leave me down in the comments
please leave me down in the comments
please leave me down in the comments below
below
below but quotes around it to other people can
but quotes around it to other people can
but quotes around it to other people can be inspired and when you write it down
be inspired and when you write it down
be inspired and when you write it down it’s much more likely to stick with
it’s much more likely to stick with
it’s much more likely to stick with yourself as well
yourself as well
yourself as well enjoy
enjoy
enjoy [Music]
it’s important thing is to decide is to
it’s important thing is to decide is to be able to define which ones you can
be able to define which ones you can
be able to define which ones you can come to an intelligent decision on and
come to an intelligent decision on and
come to an intelligent decision on and which ones are beyond your capacity to
which ones are beyond your capacity to
which ones are beyond your capacity to evaluate you don’t have to be right
evaluate you don’t have to be right
evaluate you don’t have to be right about thousands and thousands of
about thousands and thousands of
about thousands and thousands of thousands of competition you only have
thousands of competition you only have
thousands of competition you only have to be right about a company couple I met
to be right about a company couple I met
to be right about a company couple I met bill gates on July 5th 1991 we arrived
bill gates on July 5th 1991 we arrived
bill gates on July 5th 1991 we arrived Seattle and bill said you’ve got to have
Seattle and bill said you’ve got to have
Seattle and bill said you’ve got to have a computer and I said why and he said
a computer and I said why and he said
a computer and I said why and he said well he said you can do your income tax
well he said you can do your income tax
well he said you can do your income tax on it I said I don’t have any income
on it I said I don’t have any income
on it I said I don’t have any income Berkshire doesn’t pay a dividend yeah he
Berkshire doesn’t pay a dividend yeah he
Berkshire doesn’t pay a dividend yeah he said well you can keep track of your
said well you can keep track of your
said well you can keep track of your portfolio I said I only have one stock I
portfolio I said I only have one stock I
portfolio I said I only have one stock I said I did I mean he says it’s gonna
said I did I mean he says it’s gonna
said I did I mean he says it’s gonna change everything and I said well will
change everything and I said well will
change everything and I said well will it change whether people chew gum and he
it change whether people chew gum and he
it change whether people chew gum and he said well probably not and I said well
said well probably not and I said well
said well probably not and I said well we’ll change what kind of gum they’d
we’ll change what kind of gum they’d
we’ll change what kind of gum they’d show and I said well then I’ll stick to
show and I said well then I’ll stick to
show and I said well then I’ll stick to chewing gum and you stick to computers
chewing gum and you stick to computers
chewing gum and you stick to computers how bad I don’t have to understand all
how bad I don’t have to understand all
how bad I don’t have to understand all kinds of but there’s all kinds of
kinds of but there’s all kinds of
kinds of but there’s all kinds of business I don’t understand but there’s
business I don’t understand but there’s
business I don’t understand but there’s thousands of opportunities there I
thousands of opportunities there I
thousands of opportunities there I didn’t understand the Bank of America
didn’t understand the Bank of America
didn’t understand the Bank of America you know and and I’ll be able to I’m
you know and and I’ll be able to I’m
you know and and I’ll be able to I’m able to do that I’m able to understand
able to do that I’m able to understand
able to do that I’m able to understand some given percentage but Ted Williams
some given percentage but Ted Williams
some given percentage but Ted Williams wrote a book called the science of
wrote a book called the science of
wrote a book called the science of hitting and in science of hitting he’s
hitting and in science of hitting he’s
hitting and in science of hitting he’s got a diagram shows him at the plate and
got a diagram shows him at the plate and
got a diagram shows him at the plate and he’s got the strike zone divided in the
he’s got the strike zone divided in the
he’s got the strike zone divided in the seventy-seven squares each the size of a
seventy-seven squares each the size of a
seventy-seven squares each the size of a baseball and he says if I only swing it
baseball and he says if I only swing it
baseball and he says if I only swing it pitches in my sweet zone which he shows
pitches in my sweet zone which he shows
pitches in my sweet zone which he shows her and he has what his batting average
her and he has what his batting average
her and he has what his batting average would be which is 400 if he had to swing
would be which is 400 if he had to swing
would be which is 400 if he had to swing at low outside pitches but still in the
at low outside pitches but still in the
at low outside pitches but still in the in the strike zone
in the strike zone
in the strike zone his average would be 230 he said the
his average would be 230 he said the
his average would be 230 he said the most important thing in hitting is
most important thing in hitting is
most important thing in hitting is waiting for the right pitch now he was
waiting for the right pitch now he was
waiting for the right pitch now he was at a disadvantage because if the count
at a disadvantage because if the count
at a disadvantage because if the count was oh and two or one and two or so on
was oh and two or one and two or so on
was oh and two or one and two or so on even if that ball was down where he was
even if that ball was down where he was
even if that ball was down where he was only going about 230 he had to swing at
only going about 230 he had to swing at
only going about 230 he had to swing at it in investing there’s no called
it in investing there’s no called
it in investing there’s no called strikes people can throw Microsoft that
strikes people can throw Microsoft that
strikes people can throw Microsoft that man
man
man you know you name any any stock General
you know you name any any stock General
you know you name any any stock General Motors and I don’t have to swing and
Motors and I don’t have to swing and
Motors and I don’t have to swing and nobody’s gonna call me out on call
nobody’s gonna call me out on call
nobody’s gonna call me out on call strikes I only get a strike call if I
strikes I only get a strike call if I
strikes I only get a strike call if I swing at a pitch and mess so I can wait
swing at a pitch and mess so I can wait
swing at a pitch and mess so I can wait there and look at thousands of companies
there and look at thousands of companies
there and look at thousands of companies day after day and only when I see
day after day and only when I see
day after day and only when I see something I understand and when I like
something I understand and when I like
something I understand and when I like the price of which is selling then if I
the price of which is selling then if I
the price of which is selling then if I swing if I if I had it fine if I miss it
swing if I if I had it fine if I miss it
swing if I if I had it fine if I miss it it’s it’s it’s a strike but it’s an
it’s it’s it’s a strike but it’s an
it’s it’s it’s a strike but it’s an enormous ly advantageous game and it’s a
enormous ly advantageous game and it’s a
enormous ly advantageous game and it’s a terrible mistake to think you have to
terrible mistake to think you have to
terrible mistake to think you have to have an opinion on everything you only
have an opinion on everything you only
have an opinion on everything you only have to have an opinion on a few things
have to have an opinion on a few things
have to have an opinion on a few things in fact I’ve told students if when they
in fact I’ve told students if when they
in fact I’ve told students if when they got out of school they got a punch card
got out of school they got a punch card
got out of school they got a punch card with 20 punches on it and that’s all the
with 20 punches on it and that’s all the
with 20 punches on it and that’s all the investment decisions they got to make in
investment decisions they got to make in
investment decisions they got to make in their entire life they would get very
their entire life they would get very
their entire life they would get very rich because they would think very hard
rich because they would think very hard
rich because they would think very hard about each one and you don’t need 20
about each one and you don’t need 20
about each one and you don’t need 20 right decisions to get very rich you
right decisions to get very rich you
right decisions to get very rich you know four or five will probably do it
know four or five will probably do it
know four or five will probably do it over time so I don’t worry too much
over time so I don’t worry too much
over time so I don’t worry too much about the things I don’t understand if
about the things I don’t understand if
about the things I don’t understand if you understand some of these businesses
you understand some of these businesses
you understand some of these businesses that are coming along and can spot
that are coming along and can spot
that are coming along and can spot things on if you can spot on Amazon for
things on if you can spot on Amazon for
things on if you can spot on Amazon for example I mean it’s a tremendous
example I mean it’s a tremendous
example I mean it’s a tremendous accomplishment what Jeff Bezos has done
accomplishment what Jeff Bezos has done
accomplishment what Jeff Bezos has done and I tip my hat to me is a wonderful
and I tip my hat to me is a wonderful
and I tip my hat to me is a wonderful businessman he’s a good guy too
businessman he’s a good guy too
businessman he’s a good guy too but could I have anticipated that he
but could I have anticipated that he
but could I have anticipated that he would be the success and ten others
would be the success and ten others
would be the success and ten others wouldn’t be I’m not good enough to do
wouldn’t be I’m not good enough to do
wouldn’t be I’m not good enough to do that
that
that but I go unfortunately I don’t have to
but I go unfortunately I don’t have to
but I go unfortunately I don’t have to you know I don’t have to form an opinion
you know I don’t have to form an opinion
you know I don’t have to form an opinion on on Amazon and I did I did form an
on on Amazon and I did I did form an
on on Amazon and I did I did form an opinion on the Bank of America and I
opinion on the Bank of America and I
opinion on the Bank of America and I form an opinion on coca-cola
form an opinion on coca-cola
form an opinion on coca-cola I mean coca-cola has been around since
I mean coca-cola has been around since
I mean coca-cola has been around since 1886 there’s one point eight billion one
1886 there’s one point eight billion one
1886 there’s one point eight billion one point eight billion eight ounce servings
point eight billion eight ounce servings
point eight billion eight ounce servings of coca-cola products sold every day now
of coca-cola products sold every day now
of coca-cola products sold every day now if you take one penny and get one penny
if you take one penny and get one penny
if you take one penny and get one penny extra that’s 18 million dollars a day
extra that’s 18 million dollars a day
extra that’s 18 million dollars a day and 18 million times 365 is 7 billion 3
and 18 million times 365 is 7 billion 3
and 18 million times 365 is 7 billion 3 less 730 billion or there’s 6 billion
less 730 billion or there’s 6 billion
less 730 billion or there’s 6 billion 570 million dollars so annually 6
570 million dollars so annually 6
570 million dollars so annually 6 billion 570 million dollars from one
billion 570 million dollars from one
billion 570 million dollars from one penny do you think coca-cola is worth a
penny do you think coca-cola is worth a
penny do you think coca-cola is worth a penny more than you know Joe’s Cola I
penny more than you know Joe’s Cola I
penny more than you know Joe’s Cola I think so so
think so so
think so so you know and I’ve got about 127 years of
you know and I’ve got about 127 years of
you know and I’ve got about 127 years of history that would indicate it so those
history that would indicate it so those
history that would indicate it so those are the kind of decisions I like to make
are the kind of decisions I like to make
are the kind of decisions I like to make and you may have an entirely different
and you may have an entirely different
and you may have an entirely different field of expertise than I would have and
field of expertise than I would have and
field of expertise than I would have and probably much more up to date in terms
probably much more up to date in terms
probably much more up to date in terms of the kind of businesses that we’re
of the kind of businesses that we’re
of the kind of businesses that we’re seeing about and you can get very rich
seeing about and you can get very rich
seeing about and you can get very rich if you just understand the feel of them
if you just understand the feel of them
if you just understand the feel of them and understand their future when you
and understand their future when you
and understand their future when you started how did you learn to invest and
started how did you learn to invest and
started how did you learn to invest and how did your investment strategy change
how did your investment strategy change
how did your investment strategy change over time well I learned I learned from
over time well I learned I learned from
over time well I learned I learned from my mistakes in other words my instinct
my mistakes in other words my instinct
my mistakes in other words my instinct is you know you go there and you place a
is you know you go there and you place a
is you know you go there and you place a bet I’m who had winners and I’ve had
bet I’m who had winners and I’ve had
bet I’m who had winners and I’ve had losers and what I did well every time I
losers and what I did well every time I
losers and what I did well every time I made a mistake
made a mistake
made a mistake they became painful mistakes but with
they became painful mistakes but with
they became painful mistakes but with time I realized that reflecting on those
time I realized that reflecting on those
time I realized that reflecting on those mistakes would give me gems what I would
mistakes would give me gems what I would
mistakes would give me gems what I would do is I’d say why did I make that
do is I’d say why did I make that
do is I’d say why did I make that mistake and I would learn from that
mistake and I would learn from that
mistake and I would learn from that mistake and I’d write down a rule so
mistake and I’d write down a rule so
mistake and I’d write down a rule so what was helpful for me is I put that
what was helpful for me is I put that
what was helpful for me is I put that rule principles these principles I wrote
rule principles these principles I wrote
rule principles these principles I wrote these principles now those principles
these principles now those principles
these principles now those principles that I wrote down I then put into
that I wrote down I then put into
that I wrote down I then put into algorithms in other words equations and
algorithms in other words equations and
algorithms in other words equations and what I learned by being able to do that
what I learned by being able to do that
what I learned by being able to do that is by if I took my decision criteria
is by if I took my decision criteria
is by if I took my decision criteria those principles and then I tested them
those principles and then I tested them
those principles and then I tested them back through time I gained a perspective
back through time I gained a perspective
back through time I gained a perspective that was fantastic
the markets have been going through
the markets have been going through these wild gyrations rights don’t seem
these wild gyrations rights don’t seem
these wild gyrations rights don’t seem to have a clear sense of what direction
to have a clear sense of what direction
to have a clear sense of what direction is up how do you interpret that as
is up how do you interpret that as
is up how do you interpret that as somebody who’s spent a lot of time put
somebody who’s spent a lot of time put
somebody who’s spent a lot of time put on my you know manage the portfolio
on my you know manage the portfolio
on my you know manage the portfolio trader hat and not so much to try to
trader hat and not so much to try to
trader hat and not so much to try to manage the portfolio it’s great you know
manage the portfolio it’s great you know
manage the portfolio it’s great you know anytime there’s volatility and any type
anytime there’s volatility and any type
anytime there’s volatility and any type time there’s change there’s opportunity
time there’s change there’s opportunity
time there’s change there’s opportunity now I say it’s great because I’ve taken
now I say it’s great because I’ve taken
now I say it’s great because I’ve taken a whole different approach to investing
a whole different approach to investing
a whole different approach to investing than most people you know I think buying
than most people you know I think buying
than most people you know I think buying holds a caucus I think you know the idea
holds a caucus I think you know the idea
holds a caucus I think you know the idea that you always have to invest your your
that you always have to invest your your
that you always have to invest your your cash is not far behind and so I’ve
cash is not far behind and so I’ve
cash is not far behind and so I’ve always been of the attitude that unless
always been of the attitude that unless
always been of the attitude that unless you really have a commitment to
you really have a commitment to
you really have a commitment to something just keep your money in cash
something just keep your money in cash
something just keep your money in cash knowing that at some point in time
knowing that at some point in time
knowing that at some point in time there’s gonna be a week or two like
there’s gonna be a week or two like
there’s gonna be a week or two like we’ve had but how much time I mean you
we’ve had but how much time I mean you
we’ve had but how much time I mean you got a lot going on in your life how much
got a lot going on in your life how much
got a lot going on in your life how much time do you have to actively manage your
time do you have to actively manage your
time do you have to actively manage your portfolio through these 500-point
portfolio through these 500-point
portfolio through these 500-point markets we’ll see that’s the whole thing
markets we’ll see that’s the whole thing
markets we’ll see that’s the whole thing I don’t have to spend much time until
I don’t have to spend much time until
I don’t have to spend much time until until it hits the fan right so I don’t
until it hits the fan right so I don’t
until it hits the fan right so I don’t mean I’m not hitting the fan that’s
mean I’m not hitting the fan that’s
mean I’m not hitting the fan that’s exactly right and that’s where the
exactly right and that’s where the
exactly right and that’s where the opportunity is like I wouldn’t look at
opportunity is like I wouldn’t look at
opportunity is like I wouldn’t look at my portfolio or you know I get I get a
my portfolio or you know I get I get a
my portfolio or you know I get I get a run line one number statement every day
run line one number statement every day
run line one number statement every day from my bank and you know that tells me
from my bank and you know that tells me
from my bank and you know that tells me if anything weird happened and I won’t
if anything weird happened and I won’t
if anything weird happened and I won’t even look at it but then when everything
even look at it but then when everything
even look at it but then when everything starts getting crazy I call it the World
starts getting crazy I call it the World
starts getting crazy I call it the World Series of investing you know that’s when
Series of investing you know that’s when
Series of investing you know that’s when you start digging in and it’s because of
you start digging in and it’s because of
you start digging in and it’s because of the approach that I take so you know
the approach that I take so you know
the approach that I take so you know back in 2006 and 2007 I was writing blog
back in 2006 and 2007 I was writing blog
back in 2006 and 2007 I was writing blog saying look the stock markets for
saying look the stock markets for
saying look the stock markets for suckers you’re getting put you know when
suckers you’re getting put you know when
suckers you’re getting put you know when you sit down at the business table you
you sit down at the business table you
you sit down at the business table you always look for the sucker and if you
always look for the sucker and if you
always look for the sucker and if you don’t see it it’s you and you’ve got all
don’t see it it’s you and you’ve got all
don’t see it it’s you and you’ve got all these professional people on the other
these professional people on the other
these professional people on the other side of the trades I mean when I started
side of the trades I mean when I started
side of the trades I mean when I started trading stocks in the early 90s after I
trading stocks in the early 90s after I
trading stocks in the early 90s after I sold my first company you know you could
sold my first company you know you could
sold my first company you know you could understand different elements of the
understand different elements of the
understand different elements of the market better than the professionals so
market better than the professionals so
market better than the professionals so I can understand you know new technology
I can understand you know new technology
I can understand you know new technology from Wellfleet and Synoptics and all
from Wellfleet and Synoptics and all
from Wellfleet and Synoptics and all these old technology companies better
these old technology companies better
these old technology companies better than the traders today there’s so much
than the traders today there’s so much
than the traders today there’s so much money in these huge hedge funds and that
money in these huge hedge funds and that
money in these huge hedge funds and that then they have such professional
then they have such professional
then they have such professional research and in-depth research there
research and in-depth research there
research and in-depth research there really aren’t any advantages for the
really aren’t any advantages for the
really aren’t any advantages for the traders and so my approach has always
traders and so my approach has always
traders and so my approach has always been unless I know something specific
been unless I know something specific
been unless I know something specific put it in cash
put it in cash
put it in cash and so and so what are you investing in
and so and so what are you investing in
and so and so what are you investing in what are the areas that well when I
what are the areas that well when I
what are the areas that well when I Divya you know what I did when I in
Divya you know what I did when I in
Divya you know what I did when I in 2008-2009 I put everything into MLP s
2008-2009 I put everything into MLP s
2008-2009 I put everything into MLP s and M rates though mortgage-backed
and M rates though mortgage-backed
and M rates though mortgage-backed security ones that I thought were do
security ones that I thought were do
security ones that I thought were do better companies um and I just piled in
better companies um and I just piled in
better companies um and I just piled in and I also piled into Australian bonds
and I also piled into Australian bonds
and I also piled into Australian bonds because I thought the economy was good
because I thought the economy was good
because I thought the economy was good next to China it was my way of playing
next to China it was my way of playing
next to China it was my way of playing China so you make one-way bets this
China so you make one-way bets this
China so you make one-way bets this isn’t portfolio balancing your dollar
isn’t portfolio balancing your dollar
isn’t portfolio balancing your dollar all that asset management you know
all that asset management you know
all that asset management you know diversification that’s for idiots right
diversification that’s for idiots right
diversification that’s for idiots right because you because you can’t you can’t
because you because you can’t you can’t
because you because you can’t you can’t diversify enough to know what you’re
diversify enough to know what you’re
diversify enough to know what you’re doing what I did was I said self self
doing what I did was I said self self
doing what I did was I said self self there’s gonna be a lot of volatility so
there’s gonna be a lot of volatility so
there’s gonna be a lot of volatility so I bought put took a little bit of money
I bought put took a little bit of money
I bought put took a little bit of money and bought out of the money calls on the
and bought out of the money calls on the
and bought out of the money calls on the on the spider calls I bought on the s
on the spider calls I bought on the s
on the spider calls I bought on the s standard & poor’s day SP 500 and I did
standard & poor’s day SP 500 and I did
standard & poor’s day SP 500 and I did the same thing on the diamonds which is
the same thing on the diamonds which is
the same thing on the diamonds which is the Dow Jones so I bought those long
the Dow Jones so I bought those long
the Dow Jones so I bought those long we’re not when the stock prices cratered
we’re not when the stock prices cratered
we’re not when the stock prices cratered and then when we had the big not today
and then when we had the big not today
and then when we had the big not today but the big run-up before I bought a
but the big run-up before I bought a
but the big run-up before I bought a bunch of puts knowing that even though I
bunch of puts knowing that even though I
bunch of puts knowing that even though I was paying for a lot of volatility that
was paying for a lot of volatility that
was paying for a lot of volatility that I thought there’d be a lot of swings in
I thought there’d be a lot of swings in
I thought there’d be a lot of swings in the market and so I said you’re just
the market and so I said you’re just
the market and so I said you’re just betting on volatile just bet now how
betting on volatile just bet now how
betting on volatile just bet now how long is that gonna last in your view no
long is that gonna last in your view no
long is that gonna last in your view no idea and that’s the whole thing right
idea and that’s the whole thing right
idea and that’s the whole thing right people aren’t buying intrinsic value in
people aren’t buying intrinsic value in
people aren’t buying intrinsic value in companies anymore the whole Warren
companies anymore the whole Warren
companies anymore the whole Warren Buffett approach works great for Warren
Buffett approach works great for Warren
Buffett approach works great for Warren because he can put a three billion
because he can put a three billion
because he can put a three billion dollars into an investment and take a
dollars into an investment and take a
dollars into an investment and take a whole different approach than John or
whole different approach than John or
whole different approach than John or Sally dough investor who can’t do
diversification is the only free lunch
diversification is the only free lunch and investing and I see this happen so
and investing and I see this happen so
and investing and I see this happen so many times here’s my basic lesson that
many times here’s my basic lesson that
many times here’s my basic lesson that I’ve learned that I never very from and
I’ve learned that I never very from and
I’ve learned that I never very from and this works trust me it works never more
this works trust me it works never more
this works trust me it works never more than 5% of your portfolio in any one
than 5% of your portfolio in any one
than 5% of your portfolio in any one name no matter how great the story is if
name no matter how great the story is if
name no matter how great the story is if it’s the next nor tell if it’s the next
it’s the next nor tell if it’s the next
it’s the next nor tell if it’s the next rim who cares
rim who cares
rim who cares 5% Mac’s waiting for me usually it’s two
5% Mac’s waiting for me usually it’s two
5% Mac’s waiting for me usually it’s two and a half to three percent I never let
and a half to three percent I never let
and a half to three percent I never let a stock get bigger than that in my
a stock get bigger than that in my
a stock get bigger than that in my portfolio I sell into the strengths all
portfolio I sell into the strengths all
portfolio I sell into the strengths all the time secondly never ever ever more
the time secondly never ever ever more
the time secondly never ever ever more than 20% any one sector so if you love
than 20% any one sector so if you love
than 20% any one sector so if you love gold you just can’t get past 20% of your
gold you just can’t get past 20% of your
gold you just can’t get past 20% of your net worth in gold or energy or any other
net worth in gold or energy or any other
net worth in gold or energy or any other sector or financial services so good
sector or financial services so good
sector or financial services so good sectoral diversification is crucial and
sectoral diversification is crucial and
sectoral diversification is crucial and finally for me I’m over 60% weighted in
finally for me I’m over 60% weighted in
finally for me I’m over 60% weighted in debt now versus equity not government
debt now versus equity not government
debt now versus equity not government debt not treasury bonds but corporate
debt not treasury bonds but corporate
debt not treasury bonds but corporate debt remember that a BB or triple B bond
debt remember that a BB or triple B bond
debt remember that a BB or triple B bond is serviced before they pay the dividend
is serviced before they pay the dividend
is serviced before they pay the dividend on a common stock so I like to own write
on a common stock so I like to own write
on a common stock so I like to own write up the balance sheet so I own a lot of
up the balance sheet so I own a lot of
up the balance sheet so I own a lot of preface converts senior debt floating
preface converts senior debt floating
preface converts senior debt floating rate notes I love that stuff because
rate notes I love that stuff because
rate notes I love that stuff because when they get upgraded I get capital
when they get upgraded I get capital
when they get upgraded I get capital appreciation meanwhile I get a check the
appreciation meanwhile I get a check the
appreciation meanwhile I get a check the key to life is the check coming in it’s
key to life is the check coming in it’s
key to life is the check coming in it’s the cash
the cash
the cash if you always always always look at the
if you always always always look at the
if you always always always look at the free cash flow this will keep you safe
free cash flow this will keep you safe
free cash flow this will keep you safe because the only friend you’re gonna
because the only friend you’re gonna
because the only friend you’re gonna have when you’re old and crusty is not
have when you’re old and crusty is not
have when you’re old and crusty is not your dog not your kids it’s the cash in
your dog not your kids it’s the cash in
your dog not your kids it’s the cash in the bank that’s still gonna love you in
the bank that’s still gonna love you in
the bank that’s still gonna love you in your book you also say when you’re
your book you also say when you’re
your book you also say when you’re investing you should have an element of
investing you should have an element of
investing you should have an element of fear in there you should make the
fear in there you should make the
fear in there you should make the assumption when you make an investment
assumption when you make an investment
assumption when you make an investment there’s some probability you’ll lose it
there’s some probability you’ll lose it
there’s some probability you’ll lose it it’ll go to zero and that’s why you need
it’ll go to zero and that’s why you need
it’ll go to zero and that’s why you need to have you know a reserve like a
to have you know a reserve like a
to have you know a reserve like a back-up plan some cash set aside that if
back-up plan some cash set aside that if
back-up plan some cash set aside that if everything blows up you’re okay I find
everything blows up you’re okay I find
everything blows up you’re okay I find it extraordinary when people make their
it extraordinary when people make their
it extraordinary when people make their first you know liquidity event and they
first you know liquidity event and they
first you know liquidity event and they have some capital that they blow it all
have some capital that they blow it all
have some capital that they blow it all again that is the biggest mistake you’ve
again that is the biggest mistake you’ve
again that is the biggest mistake you’ve got to take a nut even if it stays in
got to take a nut even if it stays in
got to take a nut even if it stays in cash or it’s a very very liquid safe
cash or it’s a very very liquid safe
cash or it’s a very very liquid safe security to say
security to say
security to say that I don’t touch it goes back to what
that I don’t touch it goes back to what
that I don’t touch it goes back to what my mother taught me spend the interest
my mother taught me spend the interest
my mother taught me spend the interest never the principal I mean look you know
never the principal I mean look you know
never the principal I mean look you know I make a lot of crazy investments I
I make a lot of crazy investments I
I make a lot of crazy investments I don’t touch the principal
in the spring of 2000 I was way over
in the spring of 2000 I was way over levered into these two stocks in a
levered into these two stocks in a
levered into these two stocks in a matter of few days I found myself going
matter of few days I found myself going
matter of few days I found myself going from 12 million dollars to the good to
from 12 million dollars to the good to
from 12 million dollars to the good to four million dollars to the bat so I was
four million dollars to the bat so I was
four million dollars to the bat so I was 25 years old I owed four million dollars
25 years old I owed four million dollars
25 years old I owed four million dollars I didn’t have anything to show for I
I didn’t have anything to show for I
I didn’t have anything to show for I didn’t have a house or a boat or a plane
didn’t have a house or a boat or a plane
didn’t have a house or a boat or a plane or anything I could sell paid off I just
or anything I could sell paid off I just
or anything I could sell paid off I just I owed it and I came from a middle-class
I owed it and I came from a middle-class
I owed it and I came from a middle-class background neither of my parents had
background neither of my parents had
background neither of my parents had ever made more than 100 grand in a year
ever made more than 100 grand in a year
ever made more than 100 grand in a year and I was just stuck and I had to make
and I was just stuck and I had to make
and I was just stuck and I had to make some choices then about whether I was
some choices then about whether I was
some choices then about whether I was gonna quit and you know or try to
gonna quit and you know or try to
gonna quit and you know or try to declare bankruptcy or whether I’d try
declare bankruptcy or whether I’d try
declare bankruptcy or whether I’d try and fight it out and it happened just as
and fight it out and it happened just as
and fight it out and it happened just as I was graduating law school actually and
I was graduating law school actually and
I was graduating law school actually and so I said well I’m gonna try and fight
so I said well I’m gonna try and fight
so I said well I’m gonna try and fight this out and I’ll take a sellout job as
this out and I’ll take a sellout job as
this out and I’ll take a sellout job as a as a corporate lawyer out of Fenwick
a as a corporate lawyer out of Fenwick
a as a corporate lawyer out of Fenwick and West and I’ll try and grind this out
and West and I’ll try and grind this out
and West and I’ll try and grind this out and so during the day I would do
and so during the day I would do
and so during the day I would do corporate law stuff at a tech firm and
corporate law stuff at a tech firm and
corporate law stuff at a tech firm and at night I would do pretty much anything
at night I would do pretty much anything
at night I would do pretty much anything that somebody would pay me to do short
that somebody would pay me to do short
that somebody would pay me to do short of giving blood or massages these like
of giving blood or massages these like
of giving blood or massages these like Craigslist for this I did go on
Craigslist for this I did go on
Craigslist for this I did go on Craigslist I was writing contracts and
Craigslist I was writing contracts and
Craigslist I was writing contracts and business plans and renaming companies
business plans and renaming companies
business plans and renaming companies there’s a thing called Elance out there
there’s a thing called Elance out there
there’s a thing called Elance out there there’s now like oDesk and rent a coder
there’s now like oDesk and rent a coder
there’s now like oDesk and rent a coder and stuff but Elance is the first of
and stuff but Elance is the first of
and stuff but Elance is the first of those markets and I was the first lawyer
those markets and I was the first lawyer
those markets and I was the first lawyer on Elance and so I was I was writing
on Elance and so I was I was writing
on Elance and so I was I was writing terms and conditions for websites some
terms and conditions for websites some
terms and conditions for websites some of which turned out to be adult websites
of which turned out to be adult websites
of which turned out to be adult websites but they paid cash and and so I even did
but they paid cash and and so I even did
but they paid cash and and so I even did a voiceover for a book once yeah who
a voiceover for a book once yeah who
a voiceover for a book once yeah who knew but I actually screamed for a few
knew but I actually screamed for a few
knew but I actually screamed for a few hours to make my voice super raspy that
hours to make my voice super raspy that
hours to make my voice super raspy that was what they were looking for in the
was what they were looking for in the
was what they were looking for in the character so but I just did anything I
character so but I just did anything I
character so but I just did anything I could to try and pay off this debt and
could to try and pay off this debt and
could to try and pay off this debt and it took me from then till till basically
it took me from then till till basically
it took me from then till till basically the Google IPO to selling another
the Google IPO to selling another
the Google IPO to selling another company in the Google IPO before I got
company in the Google IPO before I got
company in the Google IPO before I got back to zero mm-hmm net worth and I’ll
back to zero mm-hmm net worth and I’ll
back to zero mm-hmm net worth and I’ll tell you no matter how early you are in
tell you no matter how early you are in
tell you no matter how early you are in your career the richest you will ever
your career the richest you will ever
your career the richest you will ever feel is when you owe zero dollars to
feel is when you owe zero dollars to
feel is when you owe zero dollars to anybody that’s the very first time in
anybody that’s the very first time in
anybody that’s the very first time in your life when you’ve got choices you
your life when you’ve got choices you
your life when you’ve got choices you can you could go join the Peace Corps
can you could go join the Peace Corps
can you could go join the Peace Corps you go travel the world you could do
you go travel the world you could do
you go travel the world you could do anything I actually celebrated by
anything I actually celebrated by
anything I actually celebrated by throwing a BYOB party at my house like
throwing a BYOB party at my house like
throwing a BYOB party at my house like I’m not going in the red to treat all
I’m not going in the red to treat all
I’m not going in the red to treat all you guys but that that was a real
you guys but that that was a real
you guys but that that was a real pivotal moment in my life um I’ll tell
pivotal moment in my life um I’ll tell
pivotal moment in my life um I’ll tell you I just I never really considered any
you I just I never really considered any
you I just I never really considered any other option I never considered moving
other option I never considered moving
other option I never considered moving back with my parents to Buffalo New York
back with my parents to Buffalo New York
back with my parents to Buffalo New York I never considered declaring bankruptcy
I never considered declaring bankruptcy
I never considered declaring bankruptcy I just kind of always knew I would fight
I just kind of always knew I would fight
I just kind of always knew I would fight my way out of it and I think that’s
my way out of it and I think that’s
my way out of it and I think that’s something that for those of you who are
something that for those of you who are
something that for those of you who are founders I I’d encourage not everybody
founders I I’d encourage not everybody
founders I I’d encourage not everybody as a founder it’s easy to kind of sign
as a founder it’s easy to kind of sign
as a founder it’s easy to kind of sign the paperwork but some of you just
the paperwork but some of you just
the paperwork but some of you just aren’t founders and there’s a time when
aren’t founders and there’s a time when
aren’t founders and there’s a time when you have to admit that to yourself that
you have to admit that to yourself that
you have to admit that to yourself that it’s cool to have a startup
it’s cool to have a startup
it’s cool to have a startup but you may not be a founder you may not
but you may not be a founder you may not
but you may not be a founder you may not be the kind of unstable mentally askew
be the kind of unstable mentally askew
be the kind of unstable mentally askew person with the slightly manic
person with the slightly manic
person with the slightly manic depressive side who is who knows in the
depressive side who is who knows in the
depressive side who is who knows in the face of insurmountable odds that you’re
face of insurmountable odds that you’re
face of insurmountable odds that you’re gonna win and I don’t mean is convinced
gonna win and I don’t mean is convinced
gonna win and I don’t mean is convinced that you can sell people and convince
that you can sell people and convince
that you can sell people and convince people of that I mean you know in your
people of that I mean you know in your
people of that I mean you know in your bones that you’re gonna make it out and
bones that you’re gonna make it out and
bones that you’re gonna make it out and I think that’s something that was a
I think that’s something that was a
I think that’s something that was a little different about me it was like in
little different about me it was like in
little different about me it was like in that whole as advisors you’re saying
that whole as advisors you’re saying
that whole as advisors you’re saying look just go BK and seven years from now
look just go BK and seven years from now
look just go BK and seven years from now you can walk away from it I just knew I
you can walk away from it I just knew I
you can walk away from it I just knew I would fight my way out of it and I
would fight my way out of it and I
would fight my way out of it and I didn’t have to convince myself or
didn’t have to convince myself or
didn’t have to convince myself or anybody else
you also have to dare to be great I’ll
you also have to dare to be great I’ll tell you one little story one of the
tell you one little story one of the
tell you one little story one of the most successful investments we made was
most successful investments we made was
most successful investments we made was a small company called CERN we’ve just
a small company called CERN we’ve just
a small company called CERN we’ve just started to sell product you’re doing
started to sell product you’re doing
started to sell product you’re doing fairly well we had a half a million of
fairly well we had a half a million of
fairly well we had a half a million of Revenue in 1997 and Cisco came said we’d
Revenue in 1997 and Cisco came said we’d
Revenue in 1997 and Cisco came said we’d like to buy this company for three
like to buy this company for three
like to buy this company for three hundred million dollars having invested
hundred million dollars having invested
hundred million dollars having invested three or four million dollars for half
three or four million dollars for half
three or four million dollars for half the company that’d be a pretty good
the company that’d be a pretty good
the company that’d be a pretty good investment
investment
investment and yeah we had one other investment and
and yeah we had one other investment and
and yeah we had one other investment and I said no deal because I believed in
I said no deal because I believed in
I said no deal because I believed in what we were trying to do April came
what we were trying to do April came
what we were trying to do April came along and somebody called me from Cisco
along and somebody called me from Cisco
along and somebody called me from Cisco and said we’d like to offer seven
and said we’d like to offer seven
and said we’d like to offer seven hundred million dollars and we at that
hundred million dollars and we at that
hundred million dollars and we at that point with subsequent investments owned
point with subsequent investments owned
point with subsequent investments owned about thirty five forty percent of the
about thirty five forty percent of the
about thirty five forty percent of the company and I said no deal August came
company and I said no deal August came
company and I said no deal August came along and won’t go into the details of
along and won’t go into the details of
along and won’t go into the details of story but they offered seven billion
story but they offered seven billion
story but they offered seven billion dollars we did take the deal
if you want to make a quick buck you can
if you want to make a quick buck you can do it a lot of different ways you can
do it a lot of different ways you can
do it a lot of different ways you can cheat somebody you can misrepresent
cheat somebody you can misrepresent
cheat somebody you can misrepresent something you can go manipulate the
something you can go manipulate the
something you can go manipulate the political system to get an advantage but
political system to get an advantage but
political system to get an advantage but if you want to if you want to be
if you want to if you want to be
if you want to if you want to be successful over a long period of time I
successful over a long period of time I
successful over a long period of time I believe you need to be to focus first of
believe you need to be to focus first of
believe you need to be to focus first of all on creating value for others and
all on creating value for others and
all on creating value for others and that’s an oh that’s I’ve had people well
that’s an oh that’s I’ve had people well
that’s an oh that’s I’ve had people well that’s naive
that’s naive
that’s naive that’s utopian no it isn’t because why
that’s utopian no it isn’t because why
that’s utopian no it isn’t because why will the customers want to pay you
will the customers want to pay you
will the customers want to pay you anything over a long period unless
anything over a long period unless
anything over a long period unless you’re creating value for them why would
you’re creating value for them why would
you’re creating value for them why would your your employees want to work for you
your your employees want to work for you
your your employees want to work for you if they did they didn’t have any
if they did they didn’t have any
if they did they didn’t have any alternative why do they want to give
alternative why do they want to give
alternative why do they want to give their best efforts why do they want to
their best efforts why do they want to
their best efforts why do they want to get excited why would they wake up at
get excited why would they wake up at
get excited why would they wake up at night with ideas if you’re in a
night with ideas if you’re in a
night with ideas if you’re in a community a plan in a community unless
community a plan in a community unless
community a plan in a community unless you’re creating value for that community
you’re creating value for that community
you’re creating value for that community why would the community want you there
why would the community want you there
why would the community want you there if you’re polluting and hurting people
if you’re polluting and hurting people
if you’re polluting and hurting people and not contributing anything to the
and not contributing anything to the
and not contributing anything to the community so long-term success starts
community so long-term success starts
community so long-term success starts with being dedicated to creating value
with being dedicated to creating value
with being dedicated to creating value for others it’s it’s not how truism it’s
for others it’s it’s not how truism it’s
for others it’s it’s not how truism it’s my whole philosophy is is to have a
my whole philosophy is is to have a
my whole philosophy is is to have a system of mutual benefit where both
system of mutual benefit where both
system of mutual benefit where both parties gain a society based on win-win
for all of you people out there who want
for all of you people out there who want to be entrepreneurs you gotta have a
to be entrepreneurs you gotta have a
to be entrepreneurs you gotta have a thick skin you you almost need some
thick skin you you almost need some
thick skin you you almost need some friendly psychologist training you’re
friendly psychologist training you’re
friendly psychologist training you’re traipsing around with you to buck you up
traipsing around with you to buck you up
traipsing around with you to buck you up from all the setbacks that you have it’s
from all the setbacks that you have it’s
from all the setbacks that you have it’s always great after your Jack Ma but it’s
always great after your Jack Ma but it’s
always great after your Jack Ma but it’s not so great you know if you file a
not so great you know if you file a
not so great you know if you file a chapter and and the difference in that
chapter and and the difference in that
chapter and and the difference in that you know Jack’s attend he almost did go
you know Jack’s attend he almost did go
you know Jack’s attend he almost did go down several times
down several times
down several times it’s that scrambling ability the ability
it’s that scrambling ability the ability
it’s that scrambling ability the ability to take that kind of abuse and rejection
to take that kind of abuse and rejection
to take that kind of abuse and rejection and believe in your basic plan but be
and believe in your basic plan but be
and believe in your basic plan but be adaptable and just keep going
that the business schools and I think
that the business schools and I think they’re beginning to change but
they’re beginning to change but
they’re beginning to change but particularly in the eighties the
particularly in the eighties the
particularly in the eighties the business schools focused on if you could
business schools focused on if you could
business schools focused on if you could just turn the page there’s the formula
just turn the page there’s the formula
just turn the page there’s the formula that tells you how to do it and the
that tells you how to do it and the
that tells you how to do it and the answer is there are no formulas and and
answer is there are no formulas and and
answer is there are no formulas and and success and failure are our combination
success and failure are our combination
success and failure are our combination of judgment it’s an external event but
of judgment it’s an external event but
of judgment it’s an external event but it starts and ends with a simple idea
it starts and ends with a simple idea
it starts and ends with a simple idea and your gut but your gut has played a
and your gut but your gut has played a
and your gut but your gut has played a very key role though in your business in
very key role though in your business in
very key role though in your business in your in your success I think that I have
your in your success I think that I have
your in your success I think that I have been willing to have an opinion and then
been willing to have an opinion and then
been willing to have an opinion and then execute accordingly
enjoy to donate a Latina Association
enjoy to donate a Latina Association there’s a Victoria Cucuy and luma you’re
there’s a Victoria Cucuy and luma you’re
there’s a Victoria Cucuy and luma you’re my good girl mama
my good girl mama
my good girl mama take note I go look to attack okay cello
take note I go look to attack okay cello
take note I go look to attack okay cello go hard I go chase you look a lot NATO
go hard I go chase you look a lot NATO
go hard I go chase you look a lot NATO yo 200 clemens zamora Kamali
yo 200 clemens zamora Kamali
yo 200 clemens zamora Kamali it’s a mall or the CLA Chopra move aside
it’s a mall or the CLA Chopra move aside
it’s a mall or the CLA Chopra move aside Jung Joo younghoon can the King como the
Jung Joo younghoon can the King como the
Jung Joo younghoon can the King como the reason is of a mortal coil her poem was
reason is of a mortal coil her poem was
reason is of a mortal coil her poem was so subtly among she’d been a modular
so subtly among she’d been a modular
so subtly among she’d been a modular monkey allow a modern army apartment
monkey allow a modern army apartment
monkey allow a modern army apartment beggar
beggar
beggar come on your a yin yang dirty me
come on your a yin yang dirty me
come on your a yin yang dirty me na young magnet you go home later
na young magnet you go home later
na young magnet you go home later yes auntie local the local element is
yes auntie local the local element is
yes auntie local the local element is icy moons over that just either ma over
icy moons over that just either ma over
icy moons over that just either ma over like a apartment okay good we bought
like a apartment okay good we bought
like a apartment okay good we bought chocolate oh yeah you want some tea teen
chocolate oh yeah you want some tea teen
chocolate oh yeah you want some tea teen choice i double boiler long fight thank
choice i double boiler long fight thank
choice i double boiler long fight thank you guys for watching I hope you enjoyed
you guys for watching I hope you enjoyed
you guys for watching I hope you enjoyed I’d love to know what did you think of
I’d love to know what did you think of
I’d love to know what did you think of this video what do you think of this new
this video what do you think of this new
this video what do you think of this new success clues series I’d love to hear
success clues series I’d love to hear
success clues series I’d love to hear your thoughts please let me know in the
your thoughts please let me know in the
your thoughts please let me know in the comments below if there was one piece of
comments below if there was one piece of
comments below if there was one piece of actual advice that you’re really gonna
actual advice that you’re really gonna
actual advice that you’re really gonna take calm let me know in the comments
take calm let me know in the comments
take calm let me know in the comments this video focusing on investors if
this video focusing on investors if
this video focusing on investors if there’s another group or another genre
there’s another group or another genre
there’s another group or another genre or another niche that you want to learn
or another niche that you want to learn
or another niche that you want to learn more about let me know in the comments
more about let me know in the comments
more about let me know in the comments and maybe we’ll make it in the next
and maybe we’ll make it in the next
and maybe we’ll make it in the next edition of success clues if we keep this
edition of success clues if we keep this
edition of success clues if we keep this series so let me know thank you guys
series so let me know thank you guys
series so let me know thank you guys again for watching
again for watching
again for watching I believe in you I hope you continue to
I believe in you I hope you continue to
I believe in you I hope you continue to believe in yourself and whatever your
believe in yourself and whatever your
believe in yourself and whatever your one word is much love I’ll see you soon
”
Be First to Comment