I have this theory: we have to unlearn what we were "taught" in school
Fancy, expensive schools, big companies -> don't teach what we should really learn.
Thread on 5 things I wished I learned earlier:
#1 Negotiate EVERYTHING
You will NEVER get what you don't ask for.
Graph: Difference in same salary over course of career for those who negotiate &who don't is $2MM.
Most people don't negotiate. Don't be most people.
#2 The Top 1% - Have $ Make $
View the world as a business owner- real wealth is made through equity and ownership.
How to get equity?
Start thinking like an owner.
Take on more tasks.
Ask what work you could do to get equity. Then crush it.
#3 Have your liabilities become assets
Home? Scrnsht of my 1st @airbnb in Austin, now renting ALL my houses.
Car? Just added mine on @turo
Surfboard? Renting mine on @thequiverhq
Goal - have ALL liabilities (cars, homes, boats, etc) pay for themselves.
#4 Have a plan for your money
No one will care about your finances as much as you do, so watch em.
I like @mint for a cheap easy solution.
I treat money as a game. Keep score.
#5 Taxes = Assets
There's a US code where 30 days after nuclear fallout you have to pay taxes. The IRS doesn't play.
Study:
Long-term capital gains vs income tax?
1031 exchanges in RE?
Why do CEOs take a $1 salary & rest options?
WTF are oppty zones?
If you truly want an education, you better go out and get it yourself.
If you wait for others to fill your head, you're probably not gonna like what ends up there
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Living through 2008-2009 on Wall Street felt like the worst thing that ever happened to me.
- 20% of my friends fired
- the world was going to end
- did I work for the bad guys?
- lost lots of $0's
But I learned ONE lesson that has made me millions since..
It's called the Balcony, and here's the story:
I was sitting on the trading floor watching colleague after colleague pack up their boxes as the firm fired 20% of the workforce in one day in 2008.
There were tears, angry outbursts and security guards to walk them out.
I'll never forget their faces.
I sat watching the news late at night, saying Goldman was a succubus on the economy. I crossed protests to get to the office.
They yelled while I kept my head down.
Up 30+ floors I looked down on them marching in the cold.
The secret to wealth building?
A portfolio of small bets.
As you go, you double down on winners and cut losses on losers.
A thread on wealth creation your financial advisor doesn't want you to read:
#1 Public Markets are NOT the way to F U Money
- Even in this massive bull run, look at the Forbes 100 list.
- None of those names got there by stock picking.
#2 WAIT CODIE - What about Buffet & Icahn.
- They do insider deals bud. I was at Goldman when Buffet negotiated his private deal w/ warrants & options
- Icahn literally does stock manipulation aka activism.
- Even geniuses don't play on a level field. They build their own.
How four decisions led to me losing $11,671,000 benjamins....
I write a lot about the good deals I've made, a thread on some of my more asinine decisions. My hope - you learn so there's some point to it all 😂
Decision #1: Divorce.
Your MOST important partner, the one you pick for life.
I got married young. Did well.
Realized I hated that fast-paced, Wall St, country club, sports car life.
I wanted out, he didn't. So I gave away 60% to avoid litigation.
Never worn Chanel since 😜
A $2.5-3M loss.
Lesson 1: Partnerships are easy to get into damn hard to exit.
Lesson 2: There's always an exit tax.
I was burned out in finance, working on someone else's schedule, tired of having my time tied to $.
So I started investing in cash-flowing biz's.
Not sexy startups, but boring businesses.
One of my fav small deals netted $67k a year, $100k at close... w/ quarters
A thread:
I asked myself:
How could I work when I want, where I want and on what I want.
Problem:
I'm not smart enough to create the next Tesla, Bitcoin, FB, etc.
But I can model like a MF'er and I'm pretty good at DD
Solution: Maybe I should just buy a boring cash-flowing biz?
Now I own 7 that I'm active in and many more that I passively invest in.
Now I ask myself: how do I get more people in the ownership/acquirer seat?
Buying 300 golf carts at a bankruptcy auction & selling them for 5x?
Don't let the ridiculously high stilettos fool you. @LisaSongSutton is a former attorney & shark.
A thread from our call on buying at bankruptcy auctions:
Tiny lady + big profits.
5'2 inches of lil Lisa likes to call up trustee attorneys and tell them:
- she's a cash buyer and when they have items come up to put her on the list.
- that's how she got access to 300 golf carts at a golf course firesale
- she promptly bought them..
When I asked, "But, how'd you know what to buy them for, how to sell them and whether you'd make money?"