#125 - What is the Buy, Borrow, Die Process?

yeah i feel like i could rule word i know i could be what i want to put at all in it like a day's off on a goal travel never looking bad lie we are live so my brother long aaron brother aaron i said i'll now call him is here on the show and the reason i wanted to have him on is because we have the most hilarious conversations because gets curious about shit and then goes down these youtube and reddit rabbit holes and then comes out like a week later and i'll be like oh how's it going and he'll be like oh dude i've been sign i've been deep on sci this week or it will be like a different topic every time and i thought it might be a fun little segment i'm always entertained by it so we're gonna try it out and if it's sucks you'll never hear this because we'll just cut it out of the whole podcast so we'll give it a shot some of the most famous podcast like joe rogan has has his eddie bravo bill simmons has his his drunk friend drunk house who comes on and does these and i feel like it could be a good little thing so tell us how you feel about most tech podcast podcasts man listen sean i love you but everyone in silicon valley things they know everything everyone could do a three sixty slam dunk everyone smarter than anyone else they know tim ferris they know barack obama and i just get tired of it man it's too much for me if i know anything about the tech bros they were there when at jesus last supper you know he's on their speed dial you know like they know john f kennedy still alive if you know this all sorts of stuff that a regular guy from tech like me just can't do it man it's too much for me some time are wait are we and i don't mind being called this but are we tech bros me and sean i i don't know if i am but maybe i don't think so because because of the affinity that i have for sean that translates over you know to you and into su but if i didn't know y'all i'd be like damn this guy thinks he knows everything about everything and so because that's just something that in houston people aren't like them and we're much more kinda like give us your your tim ferris impression yeah i was one of the original investors in g i don't know really how i wasn't get born but when i was talking to prime minister modi when he came over for coffee i believe chai actually we were talking about what how i'm smarter than everyone else in india so that's that's my tim ferris by the way i just drove through houston yesterday i think the c ness or sorry i just drove through dallas i think the cock ness of t is definitely greater than the c ness of silicon valley borough but it's definitely similar we'll see in texas it's more based on like tough ness you know like oh man i can whip you up it's not based on like oh yes i've you know i'm a a stanford for my m and computer physics or whatever it is texas it's more based on tough and not on intellectual ability which if you're cocky but you're you're on the come up it's alright once you're on top and your cocky now you're just a prick right so that's that's valley people in silicon valley have have actually made it too much they have too much money so now you can't you can't be caught at all people like if the underdog believes them themselves but but not that's right that's right so aaron we were talking about the latest rabbit hole he went down hours and hours of youtube won't caught your eye this week where where'd you go dude man okay so like you know it's all about the election everyone back home in texas is voting for trump everyone here in california h trump and the one thing that i saw on the news sam is that they were saying how president trump didn't paying any income tax and of course all the like employees they get w twos are gonna to like lose it oh how can he's not paying taxes and a brother like me sat back and was like i wonder how he's not paying taxes and then the rabbit hole opened up man so i go on youtube i find out how do people not pay income tax i go down at jared kushner rabbit hole who's donald trump's son law and this guy's worth anywhere between four hundred and seven hundred million and paid no federal income tax and as i was digging through it i saw that people that who are really rich and have assets get a lot of those assets through real estate and so you think that that asset costs four hundred millions dollars oh my god it so much if you take into account depreciation on that building you know trump tower or kushner tower and then cost segregation this guy actually was able to actually get a tax credit even though he's a multi multi millionaire and i just thought that was so interesting because i was an employee from when i was like seventeen up to about three years ago and i thought paying taxes was a good thing i'll check this out and i paid all this in taxes i'm big ba shaq calling right but when i really looked at it i was the hamster because of the way they explained how the tax system is set up you know all those tech bros that say oh i worked at stripe where i work at airbnb and i'm a senior engineer and i go but bro did you get that w two though and so they get that w two so i know like me there were a hamster on that will because there is a way to pay no federal or state income tax and so as i went down that hole i just got so so into it that when i emerge three days later and my kids are crying and my wife is upset i feel like i had taken that red pill man what's the span of a property is it twenty seven years or twenty nine years for depreciation do you know sure so on a house it's twenty seven point five on a commercial building it's thirty nine years right so just for average people not like super tech bros like tim ferris and all that if you buy a house you can depreciate that asset over twenty seven and a half years now let's say that it's just a hundred thousand dollar house you know so each year you can depreciate it by let's say like almost four percent for this example let's say you have a huge building twenty seven million dollar building you can depreciate it by a million dollars year well see at that level sam there's also something called cost segregation so anything inside that they're expensive building like beds washer and dryer fixtures you can cost segregate that too so that the amount you actually put down to buy this building that's twenty five million you put down like twenty percent but with the cost segregation that you could get and the depreciation you actually get a bigger credit than what you put into it so that's why when you know trump says he didn't pay any federal income tax now that i understand it a bit more now keep mind us three days a day and not not three years but it's amazing that he would pay any federal income tax because of the depreciation in the cost segregation on all his properties now that's not average people like us but if you're kind of a small real estate investor there's a lot of benefit there if you're trying to play that tax game and what was the thing you were saying that was like big borrow die what what was that what was that framework it was a by borrow checked this out this is from a professor at the university of southern california named ed mc not the great football player for the bro but that's his name so i emailed him after i went down this by borrowed die strategy and so what he says is if you have the assets and so for a lot of people it could be your house it could be your stock position it could be your position in gold and or say your business right what you could do is buy those assets or have those assets so if you have the hustle if you have twitch then what people can do is borrow against their ownership in that asset so for a lot of people you might think of i'm wanna get a home equity loan and that's a really good way to borrow let's say two and a half three and a half percent take those assets and live off those assets or use that to make the value of the property more and then over time the value of that asset also goes up typically like with inflation you know like two and a half to three percent so you borrowed against that asset and then let's say the borrowed money is tax free it's not like income right because it's not income it's debt and so how rich people get around this is that that's not income that's debt and you don't pay income tax on debt right they're under lifestyle off the debt they keep the money into assets that so they they use the assets to borrow they live off the borrowed money with the which is tax free because it's not income and then they let the asset continue to appreciate alongside it and then when they die they put it in a trust or something like that that's right so this is how like your ultimate tech bro larry ellis does it he's a ceo of i believe the small company called oracle right so he has a ten billion dollar line of credit and that's why all these ceos who say oh i i only take one dollar in annual income that's just a trick to rich play to come across like oh i'm just like you yeah we're in this together no we're not in this together right and so he never takes any income and larry ellis never pays income tax right and he lives right here in san francisco so let's say that he's about to die right you know like he's on his death bed he has his estate planning which is another rabbit hole i went in all set up and when he passes away his stock in oracle his homes his cars is gold that then is transferred at a step up basis where his children take all these assets sam they take them all and they never pay inheritance tax on it and they can repeat that process of by borrow diet with the ten billion they they can buy real estate they can buy gold borrow against those assets and then when they die leave it to their children so now it's has your boy ab b thinking about how to do this for my three daughters and i'm already hit with the game and how are you ever paying back the loan we'll see how these guys do it is that they pay it off with that loan but their assets keep app appreciating right so he might borrow ten million dollars off this oracle stock and over the time that he's supposed to pay that back that oracle stock is going up or his real estate is going on this what elon does right so elon has let me check elon has a five hundred and forty eight million dollar line of credit out with morgan stanley goldman sachs bank of america all these different folks so he's living off this five hundred million dollar line of credit so that he doesn't have to sell any shares doesn't pay any taxes on the sale the shares of tesla and spacex keep going up so he can keep borrowing more without ever selling his shares paying taxes on it and the assets keep compounding at an even better rate now of course this doesn't work if the assets sink in value and then you're on book yeah does the bank get their money back to my understanding is that of course like you take out that loan and then you pay down on it each month now this is not per s like a regular joe like me with things hey i'm gonna borrow against my twenty thousand dollars in scott trade account right it doesn't work at that level but when you have assets maybe not all the way at a oracle level or a tesla like level is the appreciation of that asset that you're borrowing against it seems to and these examples go up with that interest rate so anybody can get a like a five or six percent loan from say the sba right and five or six percent is not very high when inflation is about two and a half three percent so it's a pretty decent rate so if you borrow those funds live off of them and also increase the value of your business more than that interest rate well then you've made money right and even if you don't beat that the growth rate just by not paying taxes on selling stuff or taking income you're you already have a a big advantage because you're oh dude yeah yeah i mean like you're sitting you're saving the thirty five percent or more right and so especially like for people who are in san francisco those income tax rate as i'm sure both of y'all all are really high right so yeah i can borrow for five percent or six percent or i could pay that income tax at fifty percent right so it's really up to what you're comfortable with now i don't know sam all the intricacies but that rabbit hole in i'm in there and my tail almost all the way in that hole like i'm really digging in there so so i don't know the next what's the next rabbit hole you're gonna go down do you have a dude who's yet or just it comes to you when it comes to you it just comes to me from youtube university man like give us one thing i thought about sam and i'm probably one of the most educated guys y'all you had on the show like i got the asterisk degree two master's degrees and you know what what a bachelor's agrees and two master's degrees get you on the streets not shit probably nothing a coconut and a smile and that's it and so i'm from that time because i'm forty one where oh yeah just just go to school and you'll be fine and get that good job and i went to great schools right it's just that the stuff that i've learned from youtube man it's been crazy and it's like it's not just income taxes it's like bro did you know what was going on with tom sci man did you know this about like jfk like stuff like that so i'm not sure what rabbit i'll go down next but it is gonna be kinda along this financial entrepreneurship hold because sean told me something two months ago about a sba loan and i i'll say damn dude that sounds tight if that sba loan and so i end up taking all this action because he said hey if you get this then you won't have to pay the interest rate for the first six months of the year and i end up getting the loan because i just heard something and then i went down the rabbit hole on youtube like what is the sba again what is five six percent how do i do this and it's just kinda carrying these things either in conversations with sean or even on the podcast where you gotta do your own work man this is not like oh it wasn't handed to me it's not fair i didn't hear about it you have to search a little bit yeah we gotta get like podcast you or youtube you alumni hoodies he's done for everybody who's basically learned more on youtube and podcast than than anywhere pretty funny sean and i have a good friend who sold his business and i was a little part of it with the sba loan and i learned about it and i was like i i know crazy you can get up to nine point five million right or eight point five yeah yeah so when i was doing it because i haven't signed off on the letter yet because i wouldn't know what to do with the money i to be honest with you right like i just went through the process and i was like oh shit like i actually did this and then it's like okay i really didn't know i was gonna do with it and so we're sort of thinking that about through how to expand like our own business and things like that but to know that this money is there because i know from the university of youtube man that banks they have to lend the money they have to so when all the employees put their money into savings that's a liability against the bank's books they have to lend it out so they gotta take a gamble on your boy making them more money than they could by handing it to someone like to buy their first home so when i was understanding that the banks want to give you the money you just kinda like put some lipstick on a pig sometimes and a live good bro i love it thank you for coming on and thank you for taking us down the rabbit hole well thank you you and we may have you back or that may be the the one shot of appearance we'll see myles stuff guys thank you very much see your brother see you bye bye i drove through dallas yesterday from nashville i'm finally austin i'm gonna go look at a house today i found a triple i'm but are you done with your tour you're not going anywhere no i'm not done so what i'm gonna do is buy either a duplex or a triple and i wanna live in one unit rent out the other units and spend six months here and six months somewhere else tell people about your arrangement with your current landlord or the one you have which one say sam has a hilarious arrangement because he's been you've been renting out a a place it's looks like i could let get i could talk about it now because it's over this is all hypothetical when i was twenty two i didn't have a lot of money at all mean didn't have anything i was poor twenty two year old and i found a four bedroom in san francisco and they only wanted three thousand for it and i go yeah i'll take it so i paid no sorry it was thirty five hundred for a four bedroom in san francisco and so i rented it and it was a lot of money it was almost fifteen to twenty grand up upfront because i had to pay first months last month and i think a deposit of one point five and then i furnished it wasn't nice furniture but it still took four thousand dollars at fur it and then what i did was i rented it out to people and the way that it worked was each person it was four bedroom and i made everyone pay around one thousand dollars a month for it and so it made my rent in san francisco be like four hundred dollars or three hundred dollars or something like dirt cheap and i just kept that place for years and years and years and yeah like seven seven eight years right the funny four was sam was like i don't know i like the toilet broke or something like that and i was like oh you like rent this place right so you could just like call your landlord and he's like no no that's not the deal yeah so i don't i wouldn't call the landlord for anything because we had an understanding he knew i was gonna do this but i was like sir here's the relationship i wanna have with you you tell me what the rent is and i will pay you every single month and you'll never talk to me and i'll never talk to you that's the relationship i wanna have with you and so that's what we did for eight years i saw him on the day we signed and i've never talked to him or seen him ever again so we made three hundred and fifty grand three hundred maybe at least three hundred thousand dollars off of it so was like sounds good we're fair we're square right there were some other the little funny things in there we'll skip that for now okay so but a lot when when i started the hustle my monthly burn was two thousand dollars a month and everyone was like how do you do that and i was like because my rents three four hundred bucks that's how dog so right it it it worked out perfectly when i moved here i lived in a six bedroom house and i had one bedroom of the sticks shared a bathroom with three or four other the people and i was paying sixteen hundred a month that's how like crazy was back then and it's only got more expensive now rents are down but it got more expensive since than which is kinda crazy rents down probably forty percent maybe i am currently renting a monthly rental in austin i'm not in the most desirable neighborhood but i'm in an k neighborhood but i i'm in a wonderful home like a eighteen square foot perfectly furnished i'm paying three grand a month so it's pretty sick to like go to austin where you know it's cheaper alright what do we got to talk about so i have a couple interesting things i wanted it for a i'll get i'll give you one i met a guy today on twitter like an hour ago who's doing something pretty interesting and people always ask me like why do i meet these random people and you just gotta look for the signs this guy his name on twitter is his domain so he's like just like he's like fuck my name here's where i want you to go i'm just gonna put it in the headline and then the second part of his name is his like return ratio of like you know capital invested versus capital and returned who is is this person i don't even know what's real name because this handles all crazy i think there's harvey something i'll i'll find his i'll find his his link i think it's harvey molten and so he doesn't know i'm gonna give him a shout but he's doing something very interesting so go find his twitter and you know if some guy putting his his returns in his headline then you know this is an interesting cat to talk to you so i just damn i said it y you seem interesting what are you doing and he just goes well what do you i was like like what do you do with your life and is that your returns in your in your name and he goes yeah it is and then he sent me a google doc of his investment portfolio and all the returns is like confidential doc said to me and then he's like i was like so what are these investments and he's like well what i'm trying to do is i'm trying to help employees invest in the company that they work at so employee led sp as they call it special purpose vehicles and so i was like tell me more because this is kind of interesting so what most people to know is if you're an employee you might get like a stock grant when you go work at some startup company and that might be worth let's call it a hundred twenty grand over three or four years right so you're getting thirty forty grand of kind of stock on it in addition to your salary every year even when the company is like appreciating in value and all these investors keep piling in more money you're kinda stuck with your grant and so even though you're there early right you were joint you joined the company early on even though you work there every single day you don't really have the opportunity typically to participate in the fundraising rounds that happen and the company's is not that big of a deal because most people don't even have money to go and be an investor while they're an employee in a company so this doesn't come up that often i do have friends that negotiated this one they took their job of like hey if you raise around i'd like to be able to invest my twenty k into that round also let's say ace move but most people don't do it this guy's doing is he's helping let's say you're an employee at a hot startup you can create an so you can go to the ceo and you could say hey as employees we wanna stick around for longer we wanna be even more invested in the success here we're not asking you for anything in return but we would like to invest in the next round would you carve out space for us in the next round and then what he does is he helps those employees go actually raises the money from external investors he kinda raises the money and says hey guys we got some room in this hot startup through the employees invest in this and so he brings the investors to the table and the employees get some carried interest on and the employees get a piece of the action so i thought there's a pretty smart idea and i'm surprised more people aren't doing this what do think of that is this what chris sake did chris did something very much like this he wasn't able explain what what that was yeah so chris sac is awesome investor and he's on shark tank and shit like that so people know him from there and your boy is in his shark take intro for point two seconds if you look closely you'll see me so chris sake what he did how he made his money was he did he angel invested in let's say twitter those was are the first big angel investment he made because he worked at google williams worked at google williams left to go start twitter chris ak invested a little bit of his like you know lottery winning from the google ipo he invested twenty five k into into williams his new startup up wasn't twitter at the time but became twitter as twitter started to grow he was a believer he was like oh shit this is amazing and a lot of people were not so hot on twitter at the time so it wasn't like this slam dunk case and so anytime there was an opportunity to get shares in twitter he took it so like some employee is leaving the company he's like i'll buy your shares somebody needed to pay for a wedding he's like cool let me buy some of your shares and then you get some money for your wedding and he over time accumulated this huge position in twitter like any ten fifteen percent of the company by the time at ipo and it made him a billionaire because of how big of a position he had accumulated and he had done it through going he was like i will fund raise personally for this company even though i'm not a part of the company he went and he found some i think like some saudi money or something like that i don't where he got from it was definitely a little bit of of it was from a guy from morgan stanley i think i don't know if he convinced this a rich person to put their money in or if he convinced a rich person knew a bunch of rich people he partnered with like investment banker guy and then they went and got i think rich people money i think some of it from overseas and the value that sa brought was that he knew the twitter people i think he said he didn't have a lot of money at the time i think he said he had like tens of thousands of dollars to his brand like no put twenty five in and he was like you know most of the angel investors are like you know at least single digit millionaires and he wasn't that because he had been in debt previously and so he was like i needed this money to come back that's why i started hustling for at least that's what he says but take him about his word which is that he didn't have you know a boat load of money when he put it in he needed some return out of that which is kind of amazing so this guy is kind of doing something like that but he he's using the employees as the way to get the end because the hardest part is to get in so chris saga also tried to do this with uber he used to have travis over at his house and and tahoe or whatever he was one of the first investors in uber then they stop talking because he was so aggressively trying to buy shares the travis was like y dude you need to back off like you're trying to buy shares off everybody and like we don't want that we don't want you buying up all the employees shares so they're not buddies anymore i don't know what the state is now but i know at one point in time you know a few years ago the status was they don't talk and go you know it was because travis got bad that chris is trying to get all the uber stock that he got smart move by the way because that would've have paid off huge that's an issue so what this guy's doing is smart and the way he's doing it he's saying it's hard for a ceo to tell a group of kind of key employees that know you guys can't participate in the next round i wanna give it to this external investor instead and so he's using the employees to get it and the employees get the benefit because they get to own a piece of the stock without putting money out of their own pocket and the external investors get and give the benefit because they get into around they probably otherwise wouldn't have got into because of these are typically like competitive rounds that they'll just go with the big brand name on this podcast we talk a lot about building companies we also talk about like building small businesses and my opinion up until recently there's like very few ways to build wealth which was you just get lucky or like you can marry into something you can inherit something you can lend lottery the other thing i was like man if you go into sales you could definitely can get wealthy that way because the cap is unlimited then i was like the third way was building a business and one category that's kind of luck but also its own category and what i've seen with my wife who my wife is a emotionally stable very steady you know she's not like up and down like me and she just loves having a normal nine to five and she loves her job and she works at airbnb and what i'm seeing with this ipo and i don't know if this is considered lucky it's kinda lucky but also like the writing is kind of on the wall but like working at in not even an early stage like a thousand i think she joined at like a thousand people or two thousand people it's not early but you could totally make a significant amount of wealth at these pre ipo startups and i know that sounds so obvious but i wouldn't have thought that that was true right and so she joined how many years into the business of like you know airbnb started when airbnb airbnb started in two thousand nine i had a job offer there in two thousand oh eight twelve so wait august eight and so she joined four years ago or three or four years ago so eight years into the business so you know i'm not gonna speak on it too much but it sounds to me like by getting into the right company and not even at the right time quote unquote not even like early you can make pretty life changing amounts of money when that company goes public definitely life changing yes you can make seven figures not only that you're making a very money the whole right and you're making a healthy salary you're getting a lot of benefits you're definitely a cog in the wheel but that's not necessarily bad you know like my wife i'm like you know sarah why don't you go start this thing this thing and she's like i love what i do it's not that stressful yeah i am a cog in the wheel maybe but it's cool i enjoy it yeah different strokes right like i i think it's good to highlight this sort of because we're definitely like that's not what we preach we don't preach like go get a job at a good company and and hang on it's gonna it's you know things work out like although that it's totally a viable path we talk a lot more about the other paths i think we should preach the other one more because at the end of the day it's about happiness and being fulfilled i think that having a job in many cases is awesome i mean i bet you having a job at twitch for about a year two is pretty sick yeah it's great and you know the thing that the if i was gonna say do i preach it's actually none of the methods it's just like if the the overarching message i hope anybody takes from it is like think for yourself know that there's a bunch of options bunch of ways to win so think for yourself about which one of those you want and then like have the courage to like back up what you think which often is like require some kind of change that people try to hesitate or procrastinate if that's the path that you like great you've thought it through that have the courage act on it and then you got my respect so you have two topics on here that interests me and one of them i know about spy guy and the other one buy nothing project you wanna do one of those let's say to buy nothing project this is kinda cool so my wife told me about this and i don't know exactly why it treats me so much but i'll explain what it is first so we are like the type of family that has just like amazon packages you know rolling in every day there's just cardboard like everywhere and we're just heavy like consumers and i kinda feel bad because i don't know why we buy all this shit and like why we get new things where there's just plenty of stuff like i feel like we're just creating a lot of waste in the world it's just like a small amount of guilt that i have that i just like go about my day but there's some people who have you know a different mindset about this it's so there's something called the buy nothing project and it's basically like burning man in the real world if you go to buy nothing project dot org you can see it and from what i understand the idea is that you join a local community so like you could join like austin texas buy nothing project and then it's just a bunch of people who have you get you either say hey i've got this and then somebody can come get it from you for free you know you ask nothing return or you say i want this and somebody can give it to you what it does is it like circulates like the possessions and the material stuff that we have faster rather than things just being hoard and wasted and kind of unused collecting dust and it helps people out they're not spending their money on stuff when they could actually be reusing and recycling stuff that already exists in their local neighborhood and this thing is actually pretty huge like it's a grassroots community there's one point two million participants in this project on twenty five countries there's six thousand volunteers it's like pretty insane and so if you can you can search on facebook and you can only join one buy nothing group it's i gotta be the one that you're locally at and when you join the group it's like what are your cross streets like they're pretty serious about like you actually being a participant in this thing but i'm very intrigued by this because i kinda think somebody could like wrap a product around this and just take this much bigger but it's already pretty totally agree and okay so we have a few things going on here but part of the things here is it's kinda hard to turn this into a consumer product because it's whole the whole thing is like anti consume stuff but i do think you can layer on a couple things which is paid memberships as well as helping people ship and taking a cut of the money facilitating the the shipping of things maybe or pickup i love this thing because i'm experiencing this now i don't own anything and it is awesome it is so awesome i own what's in my car it is such a relieving feeling and everyone who when i tell people about they go oh you don't have kids yet okay fine true maybe when i have kids it will change i still see how my brother and sister in la live and i'm like and sean you probably live this way too you buy them so much stuff and i'm like you know they're probably be hap just give them a box they don't need this stuff it's just too much stuff and i actually think what happens is we become victims or the stuff owns us and i'm like yes i don't want this stuff so i love this whole like maria con yeah i i love this lady and this whole idea of the only owning what you wanna that brings you joy i'm so about this there's a bunch of good subreddit on this one's called buy for life and that trend is getting quite big the other one is is it called good felt there's a whole subreddit just for shoes that will last a lifetime and i keep seeing these grow and get bigger and bigger and bigger i'm totally into it so i think that there's hey i just think it's a cool thing and more people should do it i kinda wanna do more of it but b i do have this sneaky suspicion that this is the way the world is going that there's a lot of people who want do you see these little these little flares right you see marie condos little show you know get them real popular and then you you know you sort see i buy nothing project is getting more popular and i think it's always a a reaction to the way the world goes right so when everything is like on demand i push a button on my phone and something you know i had a vegetable peel delivered to me the peel costs six dollars and it's in this box with packaging and it gets delivered individually to my house two days later like it's pretty like fucking wasteful right the way that this whole thing works and so you know people getting rid of straws like i just feel like there's a general movement towards sustainability and i think it's just a matter of time until like the real world class product builders designers and capitalists come into this space and say alright how do i design the best product for that like it might be buy nothing group or with a membership fee that you can do which gives you higher trust in the network because you you know that this person's verified and they're not gonna like hurt you when you go meet up with them or drop your stuff off or whatever it is and so i think this is such a great find i personally i've canceled my prime membership two years ago because i was like i don't wanna buy more of this crap i don't want these boxes i just don't want stuff i don't want all this stuff i'm like buying and i found myself buying the cheapest stuff and it lasts the least amount of time and i just buy more of it and then every time i move i throw it i'm like oh this isn't fancy enough to move with me so i'm just consuming just shit i personally hate it it makes me feel horrible do you wanna know another fun fact that we should touch on we shouldn't go too deep on it if we don't know what we're talking about because people get mad but recycling do you realize that most of the crap that we recycle they just throw away right i've heard like like eighty percent or or more or something like like that it's none if it's recycle the founder of weight or the ceo of waste management the largest waste management company in the world because i was researching this he was like yeah so look here's the deal like it's impossible you can't just give us he's like everyone thinks this the case but you can't just give us like a container with plastic all types of metals all different types of plastics that are dirty and have paper on it and we can't just like put that into a machine in voila it's like sift it out and we end up just burning and or throwing away most of it i think that the whole recycling movement i'm down with it but it's crap i mean it's not real so i think that there's so this thing that there less than ten percent so nine percent of plastic actually gets recycled ninety one percent is not it is in a landfill or essentially just sort of like litter at this point you're absolutely right i had a coworker at twitch sky who bear and he had sold his company to twitch and he now left to go start his own gaming studio and we talked about like what would you do if you were gonna just go work on something he's like i'd probably go make a video game he's like but the only other thing i could think of and he's telling me and he's like french accent he's like i wanna make an alternative to plastic plastic is like the just awful and somebody needs to invent you know somebody needs to create a material that is better than plastic or there's probably already material that exists we just need to commercial it and get it so that that's what's used for every bottle for every like piece of packaging or whatever else so i've always been on the lookout now for new materials actually because i think that that would be a great place to invest if somebody makes a superior material whether it's clothing fabric or packaging materials better cardboard like think about how prevalent the stuff at better tape if you could just replace one of these things with a more eco friendly equally cost item i think this a just a ginormous win anytime that happens i feel like very few entrepreneurs even go approach that you know who built a business in that space some a very controversial figure that i suggest everyone go read the book it's a good book regardless if you like them or not is the koch brothers what did they do that well a lot of people don't entirely know what they do because i do so much i mean it's a massive conglomerate that just a lot of stuff no what was their material thing a lot of different stuff sorry if the listeners who know what they're talking about are gonna criticize me but i believe it's l you know l yes it's like what rain repel jackets are made of right the moisture wick stuff on top of like lulu lemon or nike or wander armour or whatever it's a great book it's called a sons of wichita go and read it and you know who else it deals with like packaging and paper that's really interesting and also controversial robert kraft the owner of the patriots the business that made him wealth to buy the pantry it's i think it's just called industrial paper or something like it's something like that and all they do is make like paper products including cardboard boxes yeah i have this theory that like if your company name could just be so boring and then your website has nothing on it i'm like you know my god this is probably crushing it my friend came out with this ai product that's really smart it's basically a it's just like for doctors who they have like back office staff that's always calling for like you know insurance companies for billing information for like health record transfer or whatever it is like basically the back office has to do a bunch of phone calls so it's like a reverse call center bot so basically it calls for you to the insurance company into others and then they'll be like okay what's the account number like the account number is three nine four four two six it would basically reads your records it reads your system and then it can call on your behalf and save you a bunch of time and his launch video was like straight up go to shutters stock dot com search for the word video and then be like doctor thumbs up happy call and he just stitch those together and like i was like dude if this can be your launch video your company is gonna make so much money because if you the more hype you need the more competitive and ruthless your industry probably is and the more fragile your business probably is i think about that all the time when i think of i'm like the businesses that you and i definitely talk about a lot are in the news and are popular but i'm like the things that are boring definitely make the most money in are the least amount of competition right did they ever tell you about the guy who i met the rich guy who the role of the rich richest guys ever met who who's like i i make blue let's say for this no i went to this guy's house in india and he's like you know got like a full cricket field as his backyard and like you know just it's just elaborate right like his servants had servants type of thing and we're walking in there i'm like i'm asking my dad i'm like what does this guy do he's like don't know he's was like i thought he was like oil and gas guy but i'm not sure like i don't actually know and so we get there and we asked the guy like so what do you do like what pays for all this and he goes oh i'm into petrochemical and i was like oh okay and then like i let two beats go i was what the fuck of petrochemical and he's like oh like it's basically you know this it's chemical that is made from you know petroleum and whatnot but it's used for many and i was like so like what and he's was like oh you know like blue and i was like do you mean like they blew what and he's it's like blue like the color like the dye you need to make anything blue yeah like my company is the largest producer of that petrochemical dye that you need the chemical dye and i was like what the hell and he's like yes like you know if you see a blue car because they bought my die that's how they got the blue car i was like holy shit he's like yeah there's a guy in he's got yellow and that's bastard like i wanna get yellow what was the name of this company i have no idea it's just like ten years ago god that's crazy fascinating and yeah i'm interested in that i had a buddy have a business that probably made thirty five million dollars year out of missouri and all he did was made d cows if you have like a promotion if you're ford and you have like a new promotional car just for like a one little tiny auto show all they did was make the d house like little baby stickers so i love that yeah there's a guide in my neighborhood you made the tread of any treadmill for if any conveyor belt it's like yeah we make the belt of conveyor belt and i was like oh of course it's like somebody's gotta do it and like yeah you okay you provide it for everyone in texas that makes sense the other signal that matters is like people who are very understated like if you get a hint that somebody's successful but they're not telling you about how successful they are and they're not screaming how successful they're so they're probably mega fucking successful it's the people like me that's like only slightly rich and only slightly successful but i constantly talking about it those are the people you actually wanna avoid because they're like new rich and they're like barely rich they're like barely successful it's the person who like they dress down they don't try to wear like the gucci stuff it's the person who like you know you just noticed that the pain in their ass part of their life is all taken care of like they might fly pot private but they don't like post it on instagram that's the person who's like mega mega successful typically so a guy tweeted at me an excerpt from this book called barbarian at the gate i wanna read it to you it said it's about a k k r the the world's largest pe firm and how they made this audacious bid to buy this big company and it's about corporate reed it's about adventure whatever and so the main character of the book is a true story they're talking about the main guy who goes on a k r and he says during the nineteen fifties lou roberts is to the father of george main characters during the nineteen fifties lou roberts often took his teenage son george along to business meetings at the american petroleum institute conference one year father and son sat by a dirt cake wildcat kat and cowboy boots while listening to a speech by the chairman of humble oil the predecessor of exxon which one of those two men would you like to be lou roberts asked the son afterwards i'd rather be the guy up on the stage the businessman young george answered the businessman his father explained had fifty thousand employees to watch over along tiring workday and could expect a pension of several hundred thousand dollars on retirement the wildcat ke on the other hand had maybe thirty employees several dozen oil fields that pumped away while he slept and was probably worth five million dollars now who would you rather be lu robert's asked his son yeah i love that and i think that book is pretty good i've read the first bit of it i'm definitely in that boat where like the appeal only goes up the like sort of smaller and more like sort of profit per head that the business is like additional size notoriety and employees of a business to me are are nothing but a bad thing but i know different people get off on different stuff like i think you really liked to employ a lot the people i thought you know i thought that that's what i wanted when i started my business i was like can we create a thousand jobs and then that was very vain and then i was like ugh shit that's a lot of work but i do think you need like i do think that in most cases if you wanna be crazy wealthy you do have to employ a lot of people so i don't think that's true anymore but i think it's not a rule but yeah more often than not that true so i sent out this email yesterday that's kind of interesting i sent it out to a group of twelve people who are a friend i think your friends with eight or the twelve or something like that like i would have included you on this if you had popped into my head when i was sending this but i just said off top of your head i said give me two answers i said who are the three most interesting people on twitter that people like us should absolutely follow and then i said in a tweet length you like two sentences three sentences max i said take a stab at describing your vision for your own life and i wanna read to you a couple of the answers i won't say who said what but i found these to be pretty interesting so i'll give you a couple of the answers to the second part the twitter part whatever i would like to know both there's just like a lot of names i'm gonna publish all of this i'm basically gonna ask this to a bunch of people that i really respect so like maybe like forty people total and then i'm gonna compile these because i wanna follow all the people and i wanna know their vision for life but i'll read you some of the early answers that i came in this morning okay so somebody said the vision for my life is i wanna become the best loyal and kind father friend and human being my actual goal is to help five hundred people's lives individually i want the soundtrack of my way of frank santos would be the soundtrack of my life that was one another one was my vision for my life i wanna use brute force when i start anything it won't be pretty but i'll learn something i wanna stay hungry it's okay to hate losing and never fucking get used to it i wanna always be learning and i wanna be patient and overly really love with my family and instill confidence curiosity courage my kids and then i'll give you one more i'll give you two more so another one is vision for my life i never wanna look back and think why didn't i enjoy that more i wanna continue making bold decisions it's fine to be a mis fit car of success i wanna be fierce without being an ass and only work on meaningful things and share opportunities with possible and if i ever meet a person who hypothetically would attend my funeral that i wanna prioritize them and i'll give you give you the last one what do you think of these by the way keep going yeah i like them okay so vision for life i want to invert to avoid misery i'm wanna figure out all the stuff historically that makes other people miserable and my own dislikes and the design of life so that i can sidestep as much of that misery as possible while doing as much slash building a large business as i possibly can and as a bit of an experiment can i achieve a lot of success while avoiding the downsides that's kind of the high level idea there then he said more important than that can i do all that while being a good dad who did that who said that you know what i guess andrew yeah because he he likes to talk by converting things so let's says as we complete that out so i don't share it but you don't have to hide that i mean he didn't anything inappropriate yeah fair enough i think that's a great thing i think that's a really cool project i think he should ask that to like a thousands of people yeah i'm going to i i wanted to start with a small circle bed can people even do this because what i found was most people don't have a vision for their own life and my trainer always is doing this like whenever i'm working out and he sees like right when i start to you know was out and wanna give up basically he doesn't tell me to keep going he'll say like paint that picture or like what's the vision and he'll just remind me like what's the vision what am i trying to do here because then i'm not focused on the moment pain i'm focused on the vision you where i'm trying to get to and so and then he's always like you know without a vision we shall perish or whatever that phrase is and it's so true and i feel like for most people i meet in a day to day life they don't have a vision for their own life they definitely have like a clear one or a compelling one that you would wanna wake up and go do every day it's really hard like knowing what you want is as hard sometimes as actually achieving it yeah yeah i agree it's very hard i think that you should still strive for it and also like i'm if i try to say what's a question i could ask a group of a thousand people and if they have an answer for it i'm likely to be like friends with them or you know that might be one of the questions because it turns out that a lot of the people who i really like respect and get along with they tend to have one about their life and then they you know act on it and so whether they've said it out loud before or not like they're able to get eighty percent close to what it should be just taking a stab at it and so i'm curious do you will you play the game will you give us one of what yours might be well i think that i wanna have a seat at the table any table that i choose i wanna be able to have a seat i wanna be able to bend the world to the reality that i wanted to be and i wanna live healthy to be a hundred and twenty years old and provide for my family and make their life incredibly easy just why do you wanna make their life easy i feel like you wouldn't actually want to make for life easy not easy in the sense of like there's no hardship but in that it's still full of joy yeah there you go that's cool i'm not gonna give my children what they want necessarily think but i just want the game to be unfair in their behalf right not just the game of business i don't care about that the game of their set up to be happy so all i'll give you mind better i run up as well so mine was about three things i said i wanna stay curious for as long as i can just constantly be learning things dis doing it down and teaching it to others the second thing i said was i wanna live in a house full of love and a neighborhood full of friends like you guys so that and when i die i want my ideas to live on in the minds of others that's the the last one would actually change it based on what you just said i would add in or or substitute one of these out which is like i want my life to go in such a way that when i leave the room people miss my i wanna live my life in a way where i'm always bringing the energy to a room and when i leave you can feel that it's gone i would challenge the last line of when you die what did you say i said when i i want my ideas to live on in the minds of others yeah i used to think that too and then i changed my opinion i'm like who the hell cares i'm dead i don't care what they think like you know what i mean i'm like i'm not here everything's black anyway like it's gone that's the point right was like okay we all kinda want immortality although we probably be depressed as hell if we had it you can't get there physically so the only way to live on is as a concept like why do i care like it's like you're dead who cares like a view okay it's if you care about impact if you care about affecting the lives of other people then that's the only way to continue to impact anyone's life is if your ideas stick around or your story sticks around otherwise your your impact is always limited to just the days you were walking around on earth i hear you and i agree with that right i tend to like cares but lately i've been challenging myself i'm like life i me i'm dead fuck it it's not my responsibility does it matter to me what someone says or doesn't say about me you know i have all these people and ideas that i don't know i feel so i don't like thankful for like an idea that inspired me or a thought that changed the way i looked at things and these are people i don't even know right but the way i feel so good about them that it kinda made me wanna be one of those people someday it's like oh what if i could be one of those people for someone else what do you think happens would you die nothing i think it's over you're just a physical body and as soon as it's the off switch hits you start to decay and decompose i completely agree therefore i'm like well then why i don't care it's like as if this existed i don't care yeah okay the other way that it works is if you play for that no that's it's just just fine but let's say you're playing for that maybe it gets you to live your life while you're alive in a different way that actually makes the time you have on earth more intriguing as well right because you're you're focused on creating rather than just consuming shit till you die no yeah i think that's one of my or you could argue oh let's just be and just just consider over over e yeah just like if if we're not just i have zero impulse control yeah i mean i guess you take it both ways don't think the point is to have a good answer i think the point is like have a working answer that you're like refining as you get smarter about stuff and then be like alright cool is the way i live my life like leading to this or leaning away from this and make an adjustment alright the next episode we're gonna talk about interesting one and two person companies yes and then by the time you folks are listening to this it's gonna be wednesday we record this on monday there's gonna be a new president sean do you wanna take i don't care about who you wanna win but yeah i think biden didn't will win i think biden will win barely i think it's gonna be very close that's my prediction it's gonna be very close but he's gonna win in the end that's alright i'll take the opposite i think he's gonna win but through lance convincing convincing do i actually think that yeah i think i do think that but everyone's afraid to say i think i do think that do you think that trump's gonna go quietly or are think gonna pull some shit and like trying to declare victory early and all this stuff people are talking about man i'm super ignorant i don't know what you could do i have faith in the system that one person can't mess it up too much people think he's gonna do is he's gonna if he's ahead in the states like through the physical polls and what's counted so far he's gonna declare that he won even though everybody knows you still have to count the rest of the mail votes which takes longer than election night so when people think is he's gonna because he's more likely to be ahead without counting the mail votes i think he's gonna declare victory early they're gonna count the votes and then he's gonna make that look like a hoax trying to steal the presidency and then he's gonna cause a fit and say we need to lit this and he's gonna like not go out easy that's the fear i think that it will be a disgruntled yet peaceful way transition exiting yeah that's this is my i don't know man i'm so optimistic and i love america i can't imagine that he shakes shit up so much of the point of it causing massive issues right but i'm a stupid dumb idiot and i know nothing and everyone is wrong all the time about people we're getting mad at me for even saying hey who could we have on the podcast for twenty minutes to just talk about election stuff someone's smart because we don't know about this and people are like oh don't make it about politics why would you talk about politics your podcast is about business blah i was like wow like that's a very interesting reaction you have we're not saying who we i mean i don't like trump i'm willing to have a discussion about anyone who believes anything so i don't know i just wanted somebody who's like you know when you're in the weeds of something you kinda know all the situations are all the storylines lines that are going on all the like kinda if sands and butts and i just thought somebody might be able to like explain something cool so that on election night you know a little bit more about what you're looking at because you just had like a little bit of a primer but yeah anyways i think it's interesting to me the podcast is about one of the we wanna talk about if it's interesting to us we're just gonna talk about it and it's not always gonna be like a specific script topic and i think we kind of do that already so alright well thank you for listening and we will see you two days yeah two days see you