The Market Is Crashing. Here’s What We’re Doing About It…

alright can we talk about the stock market going down because i had to yell at a bunch of people i feel like i could rule where i know i could be what i want to put at all in it like a days off on a rollers so basically the markets dropped what five percent this week and in our little circle jerk world it felt like the world was ending so the i guess the dow had his worst day in two years s sp five hundred's is down about five percent so far this week as of time of recording and i think the tech stocks did a bit worse so nvidia down twelve percent google you know whatever a couple of the tech stocks which is more maybe where our where we're we are at the bubble did worse they gave back a lot of the gains that they've been having so far this year and so it it was a bad day for the markets and by the way i wake up i wake up but i think some people on the east coast you're on the east coast couple people called the group ten on east coast and it either says one of two eights that says the world is ending with four or five likes on it in our group chat or it says we're going to val boys it has four or five likes on every morning and i really i don't even check the market i just look at that text and i know directional is the arrow up or down but it kinda gets to you that that that way bothers me i had to yell at my partner joe because he just calls me are you freaking out about this i'm like freaking out about why he's like the markets are just going down like crazy like should we sell everything like what do we do like my reaction was just like this is expected like if you if you just buy index funds like i do like there are ups and downs but in general over five ten twenty year periods you you're expected to that to to go up and down and he just like freaked and i and and it made me angry like it made me angry because i was like i wasn't stressing but now i am and this is not healthy and that's what happened k i had a similar experience ben calls me long vacation so ben calls me and he's like dude what do what are your thoughts on like the marking first first of all are we only gonna do calls when the market crashes about the market it's not a topic we normally discuss okay so first of all i have no thoughts it reminds me that's a skit back in the but dave be skit where he where he was like what is jaw rule thing what's john yeah say yvette tell the line what's yeah let's get john all i was talking about the mark so second thing he was like because yeah i wish we're probably doing nothing but you know i did think like maybe we should do x y z maybe you like laid out some like new plant and the funny thing is i have been in a mode where i've just been trying to i i've i've i've understood that one of the most powerful things you could do is take a simple idea very seriously i'm actually gonna do a whole episode is taking a simple idea seriously but in general picking a few things that matter and then just simply doing them as well as possible and and reinforcing it so i actually do a thing which is i wrote out for the year i said here's the three big things big shifts i always call it like three shifts i'm making this year i'm making this shift this shift and this shift those are the three things that need to change in my life the rest of the things are going great i don't need to talk about the things that are going great and every single week i write down that shift again in our slack i re type the exact sentence and then i say what i'm doing today had how that ties to that shift and if i am i'm gonna do something today that doesn't tie to that shift i just think we don't do it or with very rare exceptions to it so i've been doing this for a while now and i told ben i was ben so remember though that thing we've been saying over and over again but like what we're doing this year why we're doing it why it's the right plan did we need to add a disclaimer which was unless the stock market crashes and then what you go throw all shit out the window and suddenly change our decision making about all the things that we're doing and it sounds ludicrous to say it like that that's where his mind went in the moment and i don't blame him because my mind used to go there too and i've i've developed a set of rules for myself through making horrible expensive mistakes which is fundamentally when markets crash just i have to assess like a it is the wolf for the door like you do i actually have an central crisis if so okay i'll i'll i'll make a child i'll shift my attention to this and and change but like if that's the case it's because i somehow over lever or like really stretch myself too thin or like i've made a huge bed bet that i should have ever made in the first place so is the wolf at the door no okay if the wolf is not at the door simply do not react just do nothing for thirty to ninety days and then see where you land how would you have reacted five years ago like i tell you how i did react five years ago making mistakes so when covid actually even before covid i remember at the end of maybe twenty nineteen twenty twenty we had just sold our company and my cousin who's a hedge fund guy and really all i know is like this is my cousin he's a hedge fund guy and our whole family thinks he's the smart stock market you know people like in your family when you don't really understand what people do you just boil them down you just categorize them into he's the doctor and no matter what my issue is let's call the doctor even he's a hard doctor i got a foot doesn't matter that's the doctor yeah i'm the tech guy it's like whether your router doesn't work or you need a you're you're making a start of investment just call sean well this is a stock guide he was like you know it's been a long bull market i'm moving this this and this and so i went to cash and again i was like you longest bull market in history i i'm gonna shift some of my allocation around i got this one hot tip from my cousin the stock market listen that funny how when you phrase it the as wonderfully as we're in the longest bull market ever you're like i don't know any of the evidence but that was a great line i'm in exactly exactly he he told me something about a dead cat bounce damn that sounds fancy what does that googling it's like if and someone i'm making decisions off a wikipedia article i just read like bad things were happening in my life when covid happened i'm you know like i don't know global pandemic the world is ending and people are talking about l shaped recoveries or w shaped recoveries or whatever the hell like v shaped recoveries i don't know what and what's going on i'm drawing on my notepad trying to figure out oh i mean stock market goes up or just stays down and by the way you know what it ended up being a k shaped recovery the letter they didn't even talk about at the time i'll just all the smart money and it turn a k shaped recovery where you know main main street went down it's just got bogged down by inflation and assets soared and people have k like doesn't there's multiple lines on that chart i guess days already tell up and down i really talk about like flattening the curve i'm like i literally have to draw like an axis of like wait so what is flatten and like what does that mean by the way you on mean i think isn't it drawing it out and trying to understand it that actually used the smart thing to do it's taking in you know poorly informed action action was the so ended up doing a bunch of things that i really never should have done i sold a bunch of things thinking that that was being safe and conservative but it was actually a poor decision in general the number of poor decisions i've made simply from reacting versus responding and i define a reaction as making a decision in the moment based on an emotion that i'm feeling usually fear or greed responding being i have let the emotion cool off i've let that settle and i am now choosing a decision that i'm gonna make based off of some sort of logical rationale that i could write down and i could write down the counter argument for it and i when i look at my argument for and my argument against one of them wins and so anyways now now that's the the short version of my the current my current for us is which i do not claim to be foolproof but it is just a improvement over over overdo mistakes i made in the past i found this great chart i think it was like starting in nineteen ninety or ninety four this chart breaks it down to if you missed the top gaining days of a market what would your portfolio be like versus what would your portfolio be like if you just set it and forget it and it was something like what was this i think the starting number was ten thousand dollars and so it was like if you missed the thirty best days you would have only thirty thousand dollars if you missed the which is roughly eighty three percent less and if you just said it so if you just set it and forget it you would have a hundred and eighty one if you miss the thirty best days would have thirty grand and then if you missed the ten best days you would have eighty three grand you know what mean like you would like i see this chart like if you miss it now i posted that chart and people are like yeah well now do that chart with missing the worst days and i'm like well you'd have way more money but like if you have some magic balls that that could tell me like you know we'll get that pull vault guy with the huge balls maybe he could tell me like where is the worst day that i could time it and we're good you know what i mean but like like tell me where i'm gonna die and i i'll know not to go there yeah like that type of situation and so i'm team like said it and forget it i also think that you have to look at v t the the vanguard total index fund we're still up like eight or ten percent year to date even with this little crash so like i still feel good okay great good segment and i talk about this the stock market or it reminds me of like anytime a you know a tech vc suddenly is like a foreign policy expert or is like pandemic expert or whenever you know i i'm an i'm a novice when it comes to investing outside of my my realm which is basically oo my realm is starting businesses or investing in private startups those are the two things i actually you know have spent enough time in to to feel like i i know what i'm talking about anything beyond that better off sticking to a you know an eighty twenty type of strategy where i just just do just avoid huge mistakes and don't try to beat everybody yeah and if you look at how many hedge funds beat the market it's something like five percent of them and so these are companies that have thousands of nerds just sitting around computer to try and like beat the index and they still like the vast majority of them struggle and so that like whenever i see that step i'm like yeah i don't try that alright dude i gotta ask about the olympics so you're my olympics guy and i am famously not an olympics guy i i like watching them to be honest with you i just think the olympics are an insane an insane sport but i emailed you as part of my friday newsletter thing and i was like dude what should i be watching for and you gave me a couple of tips couple of storylines that made the olympics i don't know ten times more interesting for me and i wanna talk to you about a couple of other things that you you brought up starting with this fifteen hundred meter race how good was that a race i did not even know i cared about i didn't even know honestly know this event existed but can you set this up because you gave me storyline i needed to to really care about this and it was incredible alright so going into the fifteen hundred meters so the fifteen hundred meter is a hundred and nine meters short of a mile so roughly fifteen seconds of a mile so a really fast mile i'd say is it's four minutes a good fifteen hundred is three minutes forty four seconds going into the race there was two clear favorites this guy named jacob en so basically this guy i calmed the justin bieber of track field so he was raised by his father and like i think he has seven siblings of which two or three others are also elite runners not as good as him but elite runners and so he's raised in his family with dad who's very disciplinary and he's also his coach and he's like they're raised to be great runners and in norway where he's from they have a tv show so they're almost like a reality tv stars also in norway because these three brothers are wonderful at running so this guy is the best he's been the best and he was like eighteen he has i think the second fastest or third fastest mile time of all time he has the world record in the two mile the problem with them he's kind of a pretty boy he's got these like cute tattoos all over his body and all the runners are a little bit arrogant in cock cocky you had to be like that in order to be of the best athletes in the world but his cock ness comes off as more arrogance and it also kind sucks because he's like this guy who's kind of been the best since he was young and so he's not easy to root for you know he's like the guy who's had at all and he is the man but he kind of acts like the man now the other guy he was gonna race against this guy named josh kurt i've been lucky enough to meet josh in austin one time because i was friends with his manager was this was this the guy you asked to see his calves or to touch his cab or something yeah yes yes the the so josh i think he's from wales i i i forget or no scotland sorry is it scotland whatever it is it's part of the uk and so they they run under british flag and so he is more of a silly quirky like he's got like the british like shit head kind of attitude that's very likable and interestingly if the reason i talked about his calves unlike a lot of the runners he's still a really skinny guy he's not as skinny as the other runners and so he kinda sticks out but he's like the man and leading up to this race they've been talking trash to each other constantly and track a field is usually a gentleman sport no one talks trash and that kind is one of the reasons why it's boring they talk trash going into this race and so it was like framed as josh in jacob versus each other josh is typically slower but he all he usually wins races because when in championship racing it's not always the fastest person who wins it's the person who shows up that day and has the best tactics and comes through in the end because oftentimes they go sort of slow and then the second half the race is really fast so it's typically not whose fast it's just who performs that day so we go into this race and it's just those two we think that's what's gonna happen it comes down to the last two hundred meters which is half a lap so the last half a lap it's setting up exactly like we thought where jacob is in front winning the race because he's the faster runner and josh kerr behind him waiting to kick and beat him and josh takes off he's about to get jacob up and out of nowhere this american c h who's got the slowest time of most all of the other eight runners in the field comes out of nowhere and he wins and not only does he win with a hundred meters left that's the last straightaway away he's boxed in between josh and jacob and you see him try to take off and jacob or jacob is kinda black him a little bit so he kinda pushes him a little bit but he loses his momentum and that's really hard and running because accelerating the hard part so when you lose the momentum typically that's your wanting and only chance to do it somehow y up goes just to the right a little bit so c h can slip right through him on the inside rail and he beats them and not only does he beat him jacob up fades the fourth which is like insane josh kirk gets second and this guy cole he doesn't just win he runs the world the olympic record so the fastest time ever in the fifteen hundred meter and he runs something like the seventh the fastest time in the fifteen hundred meter ever and he crush his p r and it was one of the best races i've ever seen that was a great summary a couple of things that i thought were fascinating about this so when he was doing the trials and the like the semi like basically leading in that guy jacob had the strategy where he was so cocky he would basically just start at the very back so the race starts he doesn't really care he lets every single runner to get ahead of him and he would just hang back at the back and then like kind of the second lap third lap he would pass everybody and he would win the qualifier and it was just a cocky thing to do but it was also effective because he like he knew he could push the pace and he just didn't wanna burn too much energy right at the very start the the gold of the semi and leading up it's to win and qualify using the least amount of effort right exactly and in the semi him and josh were going and it looked like at the end they both kinda were feeling each other out it looked it was the first time running felt like boxing where you could see oh they're they're kinda measuring each other's distance their power and they're getting a feel for each other you could tell even in the semi there was almost a moment where jacob one but josh kind of realized like if i had pushed this last fifty meters i think i could've have taken it them but i don't wanna show them the full bag right now they did something that was very controversial not controversial but it's very it's part of the story in running which is when you are winning a race or you're at the end of the race if you look around to see who's around you that's like a cocky move and what you do is you see y turn his head as if he's looking behind him it's like i see you behind me and that's like the ads to the the story which is always fun yeah yeah the runner insult and so we and so but in the final you what you're were saying was amazing because he did the exact opposite he starts the race immediately in first place this guy jacob goes faster than anybody has planned in the first two laps faster than even after i was reading something was like what did he fa so hard he's like dude i i went way too hard at to start accidentally like i didn't pace myself properly at i just got out you know kind of like it the lost myself in the moment lost some he just went too fast at the beginning pushed to pace and it was it was basic that that party you talked about where the american dude tried to pass him got kinda pushed back it looked like it was a complete rap for him at that point it look like there was no way you can it bumped back and then pass him again but it ended up working out which i thought was amazing student if you haven't seen that one go to youtube and just type men's fifteen hundred meter watch the six minute clip on the on the nbc sports channel it is like straight out of a a sports movie type of thing you know like if you're in american and you watch that it is super inspiring to see this guy who was completely underdog nobody even talk about him it was just a question of which of these two other guys and then this little the little engine that could basically passes them all at the var end runs the race of his life i thought that was amazing in the best part j paris has killed it with this olympics the best part is to have this bell right at the finish line of all the events right and when you win an event you walk over to the bell and you ring it and he goes over and he rigged this bell and it was just like a really cool moment so like i was all about i was i was screaming so loud i woke my kid up from a nap i was so pumped from this so yeah i'm i'm happy i've been a distance running fan for years it's not the most popular sport because it's not that that exciting i'm happy this existed it's good for to sport okay so i have a couple other winners and losers i wanna go through with you so winner for sure c and the fifteen hundred meter race i'm gonna do another winner here mixed relay another race i didn't even know existed new that's did you did you watch this so historically america's greatest event is the four by four relay which is part of a mile one lap for people each running one lap we've we've almost always been the best the mix relay i think it's a weird event it's i think it's only lasted for two olympics this might be the only second olympics that we've done it and america we got our ass kicked by was it belgium no the netherlands so the netherlands sorry this was a hilarious race because the world the way that the mix really works saying is this is two guys to girls and they alternate so it's a baton you're you know you're handing off the baton the american guy gets off to a good start the woman for the for the american team is standing in the wrong spot do you see this you were standing thirty meters forward and at the last second the officials was like y what are you doing wake but you see all the other people like in her leg of the relay they're all standing literally twenty meters back and she just spaced she just spaced during the olympics it didn't pay attention to where she was supposed to stand it's like if you lined up for a kick at nfl game and one dude was just at the thirty yard line and everyone else is standing somewhere else completely lead to bit it made no sense the last second guess she gets into the to the zone where she's allowed to be so she didn't get d queued which would been horrible but then the crazy part was this woman at the end the fe k bowl k boys awesome k bowl shoes i i am thrilled by this athlete that i didn't even know existed twenty four hours ago fe k bowl and if you haven't watched her you gotta go watch this woman run she just dominated the us in the last leg she's this dutch runner looks like she's not even ex spending any effort whatsoever she's like she's like ai dude she looked like fucking chat gp at grew legs and ran effortlessly ran the the rest of this race when the rest of the humans were like sweating and trying fe bowl dude i feel like in another life that would be your your your dream girl fe k bowl i love her i love her she is my my dream girl she's gonna so she's her life this life yeah hey fam if you're listening city she she'll she's a four hundred meter hurdle specialist and she's gonna race this woman named sydney mc and sydney's is gonna kick her ass but fe is gonna get second and it's gonna still gonna be a fun race that's my prediction wow okay fighting words i am a officially i'm like a half citizen of the netherlands after watching that race so i'm i'm you on that one that's another big winner for me that race and specifically k was a huge winner can i do some losers losers of the olympics let me do one more winner so this is a relatively new thing so starting in two thousand sixteen i think in rio something like that the olympics did something cool they got so there's a bunch of refugee athletes so like people who fled iran like there's a wrestler who fled i iran because he he was protesting and and he fled and so he's can't come compete i ran in more there's a bunch of syrian athletes things like that and so what the olympics do is they put these guys this team i forget what they call it but it's basically the refugee team and they come into the stadium with the olympic flag and i always cry get i get really emotional when i see these guys come in because this is like the definition of the olympics for me and so they like pick athletes who are refugees and who have a a shot at doing doing good and hitting the standards so anyway they have this one boxer who is from came and she had a flea came and it's the first time that one of these refugee folks has ever metal and so she's guaranteed to get third place at least maybe second place in boxing and so her match i think is tomorrow and so that's amazing so like a lot of these kids well they're young men and women out there but they like for example fled came or south sudan because they were being recruited to be children soldiers things like this so they like walk across you know a country to flee and now they're in the olympics and i and that's my favorite part of the of the olympics do they have like a so they they walk in with the olympic flag what do they wear when they're at the olympics i haven't seen this what are what's that beautiful uniform historically they wear like blue olympic jersey and so they when and and when they come in to the stadium they all look different you know because they're syrian and then there's africans and like they all look different and it's really cool to see this group of people who are all from all over the world but have similar like troubled backgrounds and they all like come together wearing this jersey and it's really cool to see that they kinda unite them yeah i love that there by the way there's a surprising number or maybe they just stand out when you hear the story but there's a there is a surprising number of olympic athletes who were either like foster kids or you know adopt there's a basically the black eyed story right like oh there's their parents and you're like oh that doesn't look like their parents so just what's the story here and it's like well they they had this like incredibly tough up upbringing but then it make sense at the same time it's like if you're looking for the people who are like extremely gritty and the people who are gonna you know overcome the an incredible number of obstacles that it takes to become the best of the world at something it kinda makes sense that maybe you were forged in the fire that way i remember like you know i a mask track athlete and i remember being really nervous before races but you wouldn't you'd be a lot less nervous if you came from a really hard life because you'd be like this is easy dude this is like you know like this is nothing compared to what i it's like to today it's a day off of my normal running running for for a time not a not running away from dictators right right different stakes yeah and so that's why i love sports and so what who are the losers we got another so the winner another winner we're marking here is the team refugee team and my honorable winners are the the parents who adopted several of these foster olympia yeah that that may be my my future future career alright so some of my losers here and of course i say this playful because they're they're not actually losers i'll give you the most controversial one first simone bile and in general gymnastics can i give you my case after i zag here can i give you my case on why there's something about jim gymnastics that just creeps me out i do there's something strange pointless that there's not only the controversy that happened where a lot of like sexual assault stuff was going on with with gymnastics but gymnastics seems so high stress dude like when she fell on the beam and like there goes you know four years there's something just they have to do this fake smile while they're doing their routine but it's like the they look like the joker dude desi that's not a real smile i've seen real smiles that is not a real smile it just seems incredibly stressed it seems like a joy sport and she is so dominant which is amazing but there's something uncanny about it it's like watching an ai video where you're like this looks beautiful but there's something inhuman about what i'm watching here there's something joy about gymnastics isn't it weird that you're you're judged in a sport on like your appearance and your smile like i think that's weird i think that's weird like if one of these women didn't smile and just had like a plain face i think she would get hurt didn't you seen our original comments everybody's judged shot appearance right and just weird that it's like sports i'm gonna get ripped for everything i'm saying and mostly the way i look i think it's weird i also dislike sports that are mostly judged you know what i'm saying i that always makes me mad yeah it's just it's a the gymnastics was a rough watch for me also can't tell the level of difficulty it all seems hard they all look great they all looks absolutely incredible and it's like well no this one was clearly four tenths of a point worse than that one and so it is kind of an un watch sport also because everything that all the athletes are doing looks super to me whereas a race there's something just so pure and primal about a race it's like that person ran and won i could tell who won and lost in gymnastics i really can't tell who wins loses at all so in skateboarding that's now an olympic sport and i like to skate and you get points if you do so there's like your regular stance and what you skate all the time and then you get more points if you do a switch which is you put your not dominant foot in front you know you switch around it's freaking weird like who cares which foot footage you are like why do you get well and like what if you're like you know what i mean i always thought that's weird and it's similar with gymnastics like if you use like like who's is to determine what's more challenging if you use like you're less dominant hand to lead i think it's weird that's why i'm gonna take the sat with my left hand do i get an extra hundred points so that doesn't even make any sense right or like with the diet patch i so i think that's strange okay other losers that i have just pole vault guy go viral because gotta be long yeah okay i picked the wrong contest yeah exactly dude if i see another meme about this guy everybody had the same joke it's actually not even him it's everybody who made the same exact joke of like he actually won come on basically i a guy went up on a pole vault he cleared the bar but all his way down his dick hit the bar and it fell over yeah it sucks that sucks no keep one dude alright last one is a winner no alliance what do you have to say about this the guy went what seemed like the closest hundred meter race did nobody even realized that he won until it was finally like the camera in like a ninety analysis realized that his chest hair crossed the line first noah has a little bit of a problem he's an amazing athlete i think he's a great guy he's real cringe so you'll have to if you pay attention he's gonna be run the two hundred meter which is his better of and he's probably gonna win because he's great he's got a cringe problem which is he's the you know where are we what are they call in usc the triple c he's a yeah three times he's a he's a three time champion the third metal is for a cringe yeah yeah so he's a cringe champion no lyle has a little bit of an issue with that were you surprised impressed by the the finish i thought that he was gonna get second yeah i was surprised won i was surprised everyone and here's another thing i was surprised at the jamaican guy who got second you should look look up how big that guy is people don't realize this these hundred meter runners and these two hundred meter runners they look jacked and ripped and they look jack and ripped because they're like mostly naked and they're like flexing right they just you always look better when you're like working out but if you look at their body weight and their height they're pretty lean small guys there actually like he's saying bolt was six four or six five but the only way like a hundred and ninety pounds he is actually right not that not that huge of a guy the guy who from jamaica just beast just beast to a guy i was shocked that he did as good as he did he's like you saying bolts pro right he's like a training with him or something well jamaica is a small ass country they all train with similar coaches so not no he's not good enough to be called his pro but he's good okay fair off alfredo enough okay two questions for you number one do you believe that any of these guys are clean yes i tend to be optimistic i also thought lance armstrong sean was clean though so but i i i tend to be optimistic i think beating drug tests is is fairly challenging but i i think they're clean yeah right before you ask me for my investment advice i advise you to look at my my portfolio yeah like i was like i thought lance was clean so you know right okay second question what's left to look forward to rest of the olympics for me because the olympics are also a complete the other loser is the olympics programming how impossible this is to follow and watch if you didn't tell me hey here's three four storylines lines that you should pay attention to that i could get emotionally invested in it and understand what i'm looking at when i look at it at which which event to pay attention to this would have been impossible to even enjoy so what's left to enjoy for me so the men's two hundred will be fun so here's a sleeper of a an event there's a kid named quincy there's a a grown man named quincy quincy hall who's in the four hundred meter dash she potentially gonna win but then there's younger quincy who's a sixteen year old kid who looks like a sixteen year old kid you know a lot of like sixteen year old pro prodigy athlete and it look like children he looks like a child he got fourth at the four hundred meter trials in america you have to get top three in order to go the olympics but he got fourth which means he's put on a relay he's probably not good enough to be in the final four by four but if you watch the pre limbs for when the america is in the four by four watch this young kid quincy he's sixteen years old he's like darling like he's got like the perfect type of charisma where he's like composed but he's still like talks like a child that's gonna be really exciting i think he'll be the youngest american track and feel athlete ever to go to the olympics i might only has root mk bowl so i really it'll look at my notes here i've just put boxes around the name fe bowl like you know sixteen times as you've been talking because i'm not really paying attention to anything except for her i mean she's good but she's gonna get her her ass in the four hundred meter hurdles but she'll it's she'll be she's a wonderful of a second place winner so watch quincy in the four by four relay pre lim he'll be he'll be a runner and that will be really exciting okay one last question for you're a runner these one of the things that they were talking about was like yeah i had to recover from that hundred meter thing to be ready for the two hundred or whatever they're like no allows is talking about this i understand that in theory but also this is a ten second race they run it in takes nine seconds you really need two like you have two days is that really hard to recover from a nine second race no so yeah it is because you get from that they do the so to to run a race at a big championship you have to run three races so one one sprint race is actually three so the quarter semi race the semi and the final are usually always on the same day so that final happened i don't know how many hours but the same dave as the semi final so he had ran that morning as well and when you run sprints it taxes your central nervous system which is different so you basically it's sort of like if i were to say like hey you have to do this box jump squat twenty times in a row and you gotta go for max height you're gonna be this type of sore where your insides like you you feel like your nerves hurt not necessarily like your aerobic system you know what i mean this is like how when i done with this podcast and i go hang out with my wife and i'm just like i need to just not talk for a while and she doesn't understand she's like you talked for a little while you tired talking you're tired from talking i need to tell i need to go with this sympathetic nervous system explanation just to confuse her too to make it acceptable so and that's how it feels like if you go and do like explosive workout it's like your it's like your insides just feel depleted it's a it's kind of a weird feeling i guess i'll take your word for it never gonna do it alright that's the olympic segment thank you sam for making that interesting for me alright so let me tell you about a story and i wanna hear something i have a question for you on how the story ends so in nineteen twenty nine there's this guy and he starts this company where it's very odd he basically is cleaning the rags and uniforms for circus performers very strange start but that's how this company starts and he turns that into a business and he calls the ac industrial laundry and he kinda scales that up but not a lot it's a very small business but he scales it up to where he starts doing laundry for other uniform businesses now he started that in nineteen twenty nine by nineteen sixty his son who's in it like twenty one years old comes into the business and he's like hey dad i would love to work for you and maybe take this over one day and the the dad's like yeah sure let's do it and it does okay but inevitably there's a little argument between the father and the son and until the father calls the son into the office and he's like hey look man this isn't working and the sun's totally expecting him to be like you know you're fired you're out and the dad goes look this isn't working here's the keys man you run it let's see what you can do i'll step out your way let's see if you could pull this off and so the son he's at the time twenty one twenty two twenty three years old his name's is richard he takes control of this business and he's like let's grow this sucker and so in nineteen sixty when he takes it over it's doing a hundred and eighty thousand dollars in revenue which is something like two million dollars today as twelve employees and he's like look we're gonna like focus on doing laundry for companies who need cleaning supplies so like extra rags so basically just washing rags and he grows it and it works out well and he grows at to a point where after i think eight years the business grows from two hundred thousand dollars a year up to one point six million dollars a year which is the equivalent of like fifteen million bucks a year he's growing this business and it's a he's now expanded into laundering company uniforms which is a very strange thing to get into i didn't even know that existed but he grows this sucker for the next fifty years and now they've renamed the company to sent us have you heard a sent us yeah i see their trucks i i see their trucks all the time too and i'd i have no idea okay so do me a favor go to sent us market cap just google that and look at what it says seventy five billion dollars it's a seventy five billion dollar company and their main business is still long now they they lau uniforms but they also supply the uniforms so they make uniforms for all types of businesses you know like you'll see like if you see like a typical jan or outfit that's a very easy one but it could be restaurants could be anything and then they rent you your uniform and they'll longer it for you but then they've expanded so like there's a fire ex signature in the bathroom of a restaurant it probably has come from them if there's cleaning supplies it probably comes from them because once they made inroads into a business they're like hey along with your uniform we're gonna sell you all these other things and so i think they do something like eight or nine billion dollars a year in revenue and it's subscription revenue so it's like a huge company why is it subscription revenue it's uniform rental oh nice yeah they gotcha it's called ras you you know like rental as a service i don't know it's just that's just what they do they they sell uniforms or they rent uniforms and so they're able to get like these subscription business and then it's also like real recurring revenue because they'll sell you all this other stuff and they bet inroads but as the business was taking off richard farmer his name he starts getting old and he's like i need to figure out a way how do i keep this within my family and so to this day the family the farmer family still owns something like twenty percent i think maybe eighteen percent of the business and like he was like i made it my mission to create this like generational thing and i've trained my children to help take this over and to make decisions as as it comes to giving away our money but also governing the the the company i a family member isn't the ceo but they're still like involved and so the reason why i looked this guy up is i'm very fascinated with how you could pull this off where you could keep your family in the business i think that it's very hard and high risk high reward and so i've been like studying all these families who have pulled it off and these guys have and from the outside there's dozen other examples of people who have crash and burn and this has not worked my question to you is this a thing that you aspire to have you know you're one of your three kids kinda take things over or you pass the baton to them or do you not care about this because i've talked to a lot of people and it seems fifty fifty of people who are like adamant in favor and other people who are just like i don't give a shit my answers is really split i don't aspire to do this meaning it's not something i'm planning to do or really wanna push on anybody do i think it would be awesome yeah totally in the same way where like if my son basketball is this favorite support that's gonna be awesome for me because i love basketball and i could coach him and i could help them in a way that i couldn't if it was tennis or not not sports at all so it's to me it's a bonus it's not a plan i do think about this stuff because on two ends of the spectrum on one end i've met way too many rich guys who talk themselves into working too long working too much with this like i'm just doing it all for my kids it's like did kids just kinda want you at home actually this just wanna spend time with you right now they they don't really care you know whether you leave them you know twelve million dollars or twenty two million dollars or forty two million dollars it's not like your kid right now doesn't care and also doing that giving them more might actually be a disservice to them back to the kind of you know more conversation earlier about belt olympics and how like you know what does where does character come from so i think that it's really dangerous to talk yourself do i'm doing this for my kids so i refused to let myself do that i think anybody who says that honestly is lying i think you're doing it for yourself and you use your kids as a justification to why you're why you're doing it as my my my general opinion and so i just took safeguard myself from ever lying to myself in that way because it's such a sexy lie right who's gonna say anything bad to you you can never get checked right there's no checks and balances if you just say i'm just doing it for my family do it for my kids and so so i think it's really important for myself not not lie to myself that way if my kids happen to wanna be interested happened to have an interest or it appeal to it awesome i will be super excited and can't wait to to do that i do hope that that happens but hope is you know not a plan not a strategy on the other hand i'm on vacation one of the best moments my day yesterday was i went to a water part dude you have you been do a water park like in the last twenty years dude nick gray rented a water park for his fort birthday but in order to save if money he rented it from seven am to nine am and so me in a bunch of forty year old went to his birthday party where we had a whole water park for ourselves besides the am have you been ever been to a water park no i it's just two full of pee man to grossed me out i know i was absolutely disgusted by being in that pool with so people dude somebody like tweet bird shirts oh no not for me yeah they did this thing where they because i'm in the kids section and they they take a break at the top of the hour for five minutes as a potty break like hey this is the time like take your kids to go and pee that just brings more attention to it nobody left the pool and i was like look nobody's leaving right now derek gonna leave you one explanation for this it's healthy besides that there was one beautiful thing amongst the disgust which was while we were walking in era there's dad he's pulling like a wagon like his new have kids just bring some much shit everywhere and his kid was walking next to him kid's probably like seven years old and he's walking in front of us and he stops like ten feet ahead and it's like a really narrow path and normally like my like flaw as a parent is i'm very impatient it's like like you're like really like fuss and like annoyed easily when i'm like beyond like a four hour stretch of my kids i just become like cranky and so this guy stops i'm ready to be cranky it does something really really awesome i realized why he stopped his because his kid asked him something and the dad who was the kid was like kind of like look kinda athletic the dad didn't really look super athletic looked like you know typical water park american let's say and but he was showing him like he goes oh when you're doing that in soccer he's like when they come at you this way what you wanna do and he was showing him how to use his feet to like not have the ball get stolen and and the kid was not like making an eye contact me was processing it he was watching the the dad and he was processing wasn't just saying a whole lot back and the dad was trying to just show him something and in the moment the basis was just like a dad too tu you get said something and i don't know i'm gotten pretty soft but like that i kinda like touched me for a moment i was like this is so amazing just this this dad just teaching his kid this little thing like just being able to pass down one little bit of information and the kid so earnest processing it because there's so many things you tell your kids that they're not listening and they don't care they don't wanna know and they don't wanna listen and they don't wanna take their vegetables basically but the kid genuinely cared and it meant something to it and you could tell the kid had like a bad experience it was trying to figure out how to overcome the bad experience and i fucking loved it dude and it just made me for the rest of the day i just found like these little pockets little moments to like have a different conversation with my kid and so like you know later that day we were like parking the car and i was like told my son i was like come back me he's like three years old and i did a thing like illegal thing and not supposed to do like put him on my lap and like had him like driving the parking left like park the car but like he to get sit my lap while i was driving it like this is like fifty feet but like whatever and i told him i said my son does is really cute thing where he goes he'll do something and then like an hour later he'll he'll go you know why am i do that like you know why i said i wasn't gonna eat that and he just keeps all of i was like you know why am i punched her and it's like then he got some explanation i've never even make sense but it's so cute and so like me my wife when a ref fight we do that out was like you know why my was an asshole earlier is because i whatever and so i told him i go you know why might let you drive just now and goes why i go because i'm teaching you how to be be a man goes and here he goes okay and i am like go tell your sister when you go back to it you know why i got to go do that because data's is teaching me how to be a be a be a big man it goes in the roman he goes hey bless you know why why data let drive because he teaching me to be a big human i'm my wife what dude that's awesome i'm am i'm excited for my when of my kids are old enough that i could try to do that and i'm totally gonna do a ton of them and yeah i'm thinking about the same thing too about children and like what it means to like bring them in if if it's all at all possible but i do believe that what you said was true of it is mostly a lie that we tell ourselves of why we are granting it for them it's so we could feel fucking dope and powerful he been exactly by the way i didn't answer your question fully which is if they're interested you yeah a lot of people don't wanna to it because they're like working with family's messy working with frances messy i learned one thing on this podcast episode something i don't know one of the first twenty your episodes with mike brown he said i asked him about he brought his brothers into his business and i was like was that a good idea i'm bring your brother's in and he looked at me like i was it like i was asking him like are are you sure you drawn to drink water it's pretty wet it goes my view of life is you find the people you love and you do life with them and then that became like fucking central to my core over like in that split second i like changed as a human being i was like oh okay that made total sense to me and that's the answer right like find the people you love and i do life with them and i will hit up people and i'll like try to find an excuse to just do a project with them or do a trip with them or do us something with them like that has been so fruitful in one of my businesses we brought in my you know i a business with my wife we brought in my sister into a business i've done so many different i've done a business with my two best friends like that has become just an operating philosophy that that has served you very well and like yeah there are times where it doesn't work out well so what that's like like everything there's no full proof strategy but the upside a funny people you love doing life with them is so much higher than the downsides of when it doesn't work out in my opinion but right and that's how i feel about the podcast by the way like you know when we met i always loved hanging out with you it's like sam's this crazy combination of really smart but smart about things that nobody else i know is smart about those things like he knows about this fucking family apron rental businesses you know like you just have a a trillion of these things and you're also really fun and funny which is super like i learned to appreciate was very rare in people like the more kind successful you get the more serious people get whereas you were one of these people or the more successful you got the similar you got and i was like dude i just wanna have this guy in my life somehow right like how i don't know what the excuse are you moved away but i'm glad this podcast became like an excuse to to to do that oh i'm glad too and by the way to the people listening that shit takes work like i particularly like like you and i like like we give and take to make each other happy but i would imagine it's the same thing with children in business where it's like i know this is the wrong thing that we should be doing but i gotta let the kid like fuck up you know what i mean and i think that's really hard to do dude there was a great quote i don't know if i'm allowed to quote this i think i am when i went to that event for the tiny event in canada chris andrew wilkinson consent in his partner of chris they they i'm tiny the hold code the hold show has like forty companies inside they do a session about hold cause and somebody asked them they were like hey i'm setting up my hold goal i'm in you're one and i just wanna know like how much support do you guys have from the back office like do you centralized finances because i think that could be really good like cost savings plus easy way to have oversight and do you centralized legal like what do you all do you what you guys centralized to to get the most synergy and their answer is chris is like base it up till now we've done we we centralized almost nothing and he goes for two reasons number one so he had he had a a smart reason and then he had a great quote his smart reason was he goes whenever we own the financials it felt good because we felt in control problem was we were in control the ceo looked at the numbers i was those are your numbers those aren't my numbers i don't know i don't know i don't know what that target is i don't know what those numbers are i'm on the receiving end of these numbers and that that's a good point the second thing that quote said he goes we wanted all of our companies to be able to run without us and the only way to do that was to just completely you they're not completely neglect but like to to neglect them to not offer support and services egg goes the children of dead beat dads grow up tough and independent was like a grown in the audience but i was like like that like that a lot was like it was like it's brutal like you know like it's the the kids that grew up in a like a harder environment at are tough and independent the refugee g the refugee team of the olympics exactly and i thought that was such a good quote and the great answer and hey he said he it was by the way now that might not be the answer now we might end up central more as we're now a public company and all the others there's other reasons to do it out but what got us here and what worked for us was that yeah alright that's the pun i feel like i could rule to work i know i could be what i want to put my all in and like the days on on a road less travel never looking back gotta