Investment-Frameworks von Srivatsaa und Hormozi, Teil 2

0:10um what resonated what resonated so far from those three pieces what is the difference between go growth and buying cash flow great question so uh let me let me explain if you go to the bank and you got invested in a cd if you're familiar with that cds in the bank are are these deposits where you can say i'm for every let's say the cd pays five percent i put a hundred dollars down in the cd they lock it up for six months that's the that's the liquidity and for that six months they pay you five dollars right of the hundred dollars that's five percent and at the end of the six months i just get my hundred dollars back so i get my principal back and i get the i get the cash flow along the way that's buying cash flow a lot of real estate investments are very centered around buying cash flow you put a hundred thousand dollars into uh apartment building like that alex and leia and i are investing right now put a 100 and then you get cash flow six seven eight nine ten percent over every year that you're a part of it and then at the end they give you a hundred thousand dollars back because that was the loan they took what's even better is if that grew it's even better but you're buying the cash flow you're saying here take my money give me cash flow and then give me my money back buying growth is making investment now in apple you get no cash flow and then you hope that apple goes up by the way if you have not been in apple for the last 10 years has been on a mad tear like it's that's all my kids own so it's pretty cool uh people often don't buy time because of emotional guilt and not practice 100 spot on right um okay let's talk about that for one second how do we release this how many of you ever feel guilty of you know hey i should i should get someone else to wash my car i should get someone else to clean my house i should get someone else like how many people have feel a little guilt around that yeah well do you know how to not feel guilt around that there's two ways way number one hang out with people that don't feel guilt around that that's the easiest way right way number two do it one time and then you'll feel less guilty the next the next time those are the only two ways i was literally thinking the same thing this is why i love you layla yeah like the easiest way you wanna you wanna eat you wanna eat health you guys know this you're in the health space you want to eat healthy hang out with healthy people like nobody's ever going to lunch nobody's ever going to dinner with alex and layla and not getting dessert you know that like you know that right so we know that right so um awesome cool um good so far so so those three frameworks and language was is that helpful enough to say okay i can put people in the parking lot figure out liquidity ownership and terms i'll give you the frameworks it may take you a couple of times to do them once or twice or refer to them but i'm going to promise you that once you do it once or twice it'll become second it'll become kind of like you know instinct and the more you can do it with instinct the easier everything will be for you because i will tell you right now everything is an investment you're you're deciding should i invest in a cup of coffee or should i not should i invest in time to write this email should i not should i invest in coming to this call should i not everything that we do is an investment in a lot of ways and so the more you can have a framework for thinking about it the easier it becomes when you actually do it and i'll just say just as a piggyback more trans that you know becoming an investor or thinking through a investor framework like one of the advantages we have is everybody here is a business owner and so being an investor has made me a better business owner and being a business owner made me a better investor and so are two very different frames and i would say the biggest gift of thinking like an investor is expanding your time horizon and you if you watch any of my youtube stuff i talk about this a lot but a lot of times in the business world we're always thinking about this month next month this quarter and we're not really thinking beyond that but when you think from the investor frame it's like is this an opportunity that i want to pursue for the next five years i think i'm gonna get outsized returns versus another opportunity that i could allocate my time and energy towards right and money and so it's just i think it helps having both frames and actually applying both to all your decisions your business decisions put your investor head on and your investing decision put your business head on so good um um i will give you one one last uh idea before we jump into some discussion points the time horizon thing that alex talked about is so on point and it's a great tiebreaker whether you want to make an investment or not how many of you at any given time are like i'm not sure if i should either do this or invest in that like how many of you have ever been come across at some point right give me a wave okay cool here's the easiest way to think about it take the time horizon of that investment and extend it out if the extension of the time horizon still convinces you to do it do it otherwise don't so i'll give you an example let's say i want to invest in my friend's startup and he's like hey it's a three to five year deal i'm like okay if i if i'm unsure if i make the three to five year investment a 15-year investment it doesn't change the way i think about the startup so it's not changed my way of thinking about this investment at all so so to me that's a okay just extending the time horizon it actually teaches me that it's actually a lot riskier than i think it's 50 50. i actually don't want to do that but if it's bitcoin this is just me and my view of the world hey i'll should i invest in bitcoin today or crypto today i don't know right should i invest in bitcoin today in three years maybe in three years i think bitcoin will be higher do i think bitcoin will be higher today in 15 years than it is today i'm going to wager it is so as i extend the time horizon it gives me a little bit more perspective on whether i should look at some investment or not so whenever i'm stuck i just extend the time horizon to see if i'm thematically making a better investment mr dunham should we should we try to uh do some q a or some discussions around topics that people are either thinking about a live investment they're working on they're like i haven't made my first one yet hey what should i do first which i do second i'm stuck with this this would be a a good forum for us because you have alex and layla who've done a lot of great things and and i could provide some insight as well this would be a real really nice like friendly shark tank for you to get some get some guidance around stuff awesome let's start with the let's start with the q a then let's open the floor up for questions you got charon you got alex you got layla so let's start off with the questions do me a favor and throw your questions in the chat there you go we already got one for you sharon okay awesome kim says um what would be what would be a good first or second investment so let's assume that you have your safety trampoline kim is that let's just assume that right so we should we should do the safety trampoline first i would be ultra committed to doing that please know fomo that the world's hey there's a lot of opportunities right now etc like don't worry about fomo take care of you first let's invest in your startup first so i would do safety trampoline first a baseline of three to six months and whatever makes you feel good but i would do a baseline first the second thing is i would buy time but i would start getting really familiar in buying cash flow because let me tell you why um alex and leia and i are working on this investment where we invest in apartment buildings and we know that if we write a hundred thousand dollar check i'm making a hundred thousand because it's a easy number it has a couple of things again i'm evaluating is that capital preservation yes because i'm investing in an asset i own something uh in in the investment world they called it asset-backed is it asset-backed that means my hundred thousand dollars is backed by an asset so i feel like you know that building being there is a good thing and then people are paying rent to live there so after expenses i get a portion of the rent i would do whatever it takes to get into the mindset of how can i buy income how can i buy cash flow there's two ways to do that one is in private investments that you can do i know we can you know if you want to reach out to me on instagram whatever and just say hey i was on the chat with you you make some recommendations i'm happy to that's my gift to you know us being all all together but there's also a public market way of doing this so the one thing i would research if i were you is i would research reits r e i t s reits they're called real estate investment trusts reits a reit is required by its charter to distribute 90 of its profits think about that for a second right so if if a hundred dollars in rents come in and they operate for you know uh 90 that 10 they have to distribute 9 out of that 10. and it's publicly traded which also means that you get immediate liquidity so literally you could put ten thousand dollars in a reit right now and you can start earning interest and you'll start seeing cash flow coming to your scottrade or td ameritrade or whatever when i was at goldman sachs they first the first portfolio they taught us to build out was a read portfolio to show us how a stock worked and how it actually paid out dividends dividends yield etcetera is easy to give you cash flow so my first investment would be take a small amount of money and build out a reap portfolio and you'll start to see cash come through and when you get paid for stuff it starts to feel pretty good great question here how much time should we invest in learning a new investment where it doesn't take much of our attention out of the growth of our current business okay this is a really great layla uh question leila talks about if y'all like am i the only one that watches their videos like y'all should watch their videos right their content is awesome layla talks about how you spend your time working on the risk that you can control in your business but your investments you should understand it but then it should work for you so i i i don't think i put words in your mouth but you you did a couple of videos very similar to that right you want to talk about that briefly yeah i think it's just understanding what stops a lot of people from starting to invest especially if you're a business owner is that you want to look at the investments like a business and so conceptually you're thinking oh this is a lot of work and a lot of stuff i need to look at and you have the need to control and i think once you let go of that that need to control and for it to turn out well because investments are not always going to turn out well it's not true at all then i think that you can move forward and with much clearer eyes and say okay i am a business owner and so i need to educate myself enough to understand the investment but it should not take my time my energy or my attention right and so you have to monitor yourself and say like how often i think my business versus the investments i've seen a lot of people where they put all their focus on their investments and it's making like you know a little bit of money and then their business just dips or like you know they kind of just leave it um kind of fizzling on the side and so i think it's just being mindful where you put your attention and i think tron like i'm thinking to myself where does that come from fear right like fear of losing money so i think if you can confront the fear of losing money and say you'll be fine if you lose money you can make more money because of the skill of being a business person then i think you can get over that and you can invest um and be okay with not having control over it spot on so good i also would like to um so i have a i have a course on on money it's called the money multiplier i am happy to like unlock it for all of you if you'd like but y'all should promise to go like don't get it and not go through it right that that makes no sense so if you want it um you know dave will figure out a process for it and i'll i'm happy to unlock it for all of you it actually goes through how to set up your safety trampoline and how to write the money rules up front a few of the building blocks and what you should get right and uh i'm happy to go through this now but i'm i'm happy to unlock it for you guys cool yeah uh this is there was a couple other questions here alex's question strong what platform do you prefer to use to buy this stuff scott tray yeah i mean alex it's super easy i i am a big i they're all very similar so so i'd say use something that you enjoy the interface and that you would actually use i have all the platforms because i'm just like oh i got robin hood let's put some money in here and play with it right so it's it's easy but i'll tell you what i use if i'm doing stuff for myself uh that my that our managed team doesn't manage i use td ameritrade and i use it for a technical reason because it has something called an option change platform because i do i learn how to do option trading so it's really helpful but i love robinhood it is so easy like it is so they've made it so easy and so if you are doing kind of plain vanilla stuff which is what most of us are doing robin it's super easy you can run everything from your app you can even buy some crypto which is great so if you want something easy i'm a big fan of convenience and doing things that are easy i like nice it's weird i know that when you have a nicer interface you end up looking at it more it seems really weird but the the elegance of how you uh interact with something seems to be important to people it's important to me so i would use a simple easy platform i use td ameritrade and robinhood uh but don't overthink this if you have not been using any platform i would just start on robinhood because it's super easy it's probably one of the number one questions i get for people who are like about to take the first step and just for everyone if you want to take a first step that's zero risk just put money into one of those things you don't have to buy anything yet but just the fact that it's there will like you don't have to put it in and then do something it's like just get it in there and then you'll have the ability to do it when you you know get the courage yeah um think about this uh uh you know a lot of many of you are just you know entrepreneurs marketers right if there's a facebook ad spend whatever what do we do it's the same as investments you test you invest and then you scale right just use the test invest scale methodology and this as well you if you want to buy apple or a new platform you put 100 in the stock you see how it works you see it being moving you're like cool i like it's working i see my and now i'll do more and then if that's working do more but you don't need to go in with a big slug like we aren't we live in a world where you can test and invest very quickly you get a lot of mechanical confidence from from doing stuff so a lot of people when people tell me they want to get into crypto how many of you are in crypto right now i'm just ultra curious anybody encrypted but half the group yeah if you're if you're not in crypto my suggestion would be you should get a coinbase account and you should buy like 100 or something just go through the process of doing that because just doing that with mechan the mechanical confidence will dramatically increase your language it'll increase your framework it'll increase everything so when you get mechanical confidence on stuff investing becomes investing is a lot of just mechanical confidence alex and lena and i will go we'll talk about like contractual terms and the only reason it doesn't scare me is because i've seen so i've seen contractual terms for 15 plus years i have so much mechanical confidence with these contractual terms that it doesn't scare me anymore but when someone sees the first lawsuit that they ever get into or the first agreement that they ever get into it scares them and they lean on counsel a lot right so my offer would be as you're getting into this stuff i would buy one or buy something small just get in get some mechanical confidence associated with it question here was what is the best week to invest in lindsay i don't um i built out a little portfolio what you can do if you don't if you if you want to know just uh dm me on instagram and just and then i'll i'll i'll pick the three or four names that i currently have and i'll just tell you what they are and then you can choose to you can choose to you know kind of do research on that if you'd like is that cool awesome a question from kim would you would you have 12 months of personal safety trampoline and 12 months of business expenses or the same thing just worry about the personal i would uh let's take care of your personal take-home lifestyle first right alex would you agree with that yeah the business stuff you'll figure out like i want a it all if world goes down the handbasket what do we do right like i want you to feel good about that for us like we and xander probably knows better than me because she's the one who has been running it for much longer than me but like you fill up your personal safety trampoline then you can make a business safety trampoline the business safety trampoline isn't going to be 12 months of expenses you know what i mean the business safety trampoline i think susan for us is what 60 days of operating expenses yeah well i i pull it out because we know that we could pull it back but yeah i don't i don't because we're cash flowing we're not really having to keep that in there yeah i tend to prefer to have less cash in the business because i think there's an entrepreneurial side of like creating a vacuum and then pulling it back up again but that's as an aside you know i mean just yeah i won't even get into that yeah um the other thing also is just just a suggestion if you don't have this yet how many of you currently have like a banking relationship where you know the banker and you can go into the office and actually talk to the banker like give me a wave okay my offer to you would be you should have a banker and let me tell you why i would much rather you go in now over the next few months and start to tell the banker hey this is our business this is what we do we cash flow this way uh if we were to i would ask for if if we were to get a business line of credit how would it work and i would establish that now before you need it you don't even have to utilize it uh the easiest way to get a business line of credit is to go into a a physical location you want a banker i will tell you that it is so much easier to talk to somebody for something like this because otherwise you get stuck in the bank of america phone tree but if you have a local office i would go and they will go to bat for you it is mind-blowing how much they would support you and you can manufacture your business safety trampoline just with a couple of visits to the local bank because they'll just give you a 30 days line of credit and we should all just have that relationship they'll say hey when you get up to x we can give you x y cool and else and you want that i how many of you would feel happy if you knew that you had a 100 grand that you could draw from the bank at some point like how many of you would feel happy if you did that i you i'm telling you that is well within reach for you i would just go have that conversation with the banker and say would you like to see our p l what would it take to i just work through the process this instead of you putting away the safety trampoline uh for you on the business side just have the just manufacture it from the bank business lines of credit from the bank are just one of the greatest reasons to live in america like we are so small business friendly so so take advantage of that if you don't have that that would be like my favorite takeaway for today because literally it's going to it's going to give you peace of mind and how you can run and operate your business right cool i just want to say thank you tron like for your time first and foremost um and then number two like i have a two-part question if you're cool with that um the first one is what do you believe in today's purchasing power a million dollars will be worth in 10 years and then based off that how does that affect the way that somebody that's maybe 30 years old and you know obvious based off your age but like am i supposed to see investing different based off what the last 100 years got people wealthy like how does that uh how does that work yeah great questions uh question number one we in the last 24 months live in completely different times because of so much liquidity so much money being inserted in the economy we don't have to go to macroeconomics but literally since there's more money the value of money is a little less right purchasing power's a little less which means inflation's coming that's all that inflation means your money can buy a little less very simple whenever inflation is coming the you can you guys can read and research this which i would offer that you do the easiest way to combat inflation is to buy hard assets which means real estate commodities crypto if you if you notice they said oh home depot lumber prices are up why they're hard assets right so people are they would much rather do to do that uh there's an inflation train that is coming that is much bigger than all of us ever thought so i would say over the next three to five years um here's my view on the world jacob on what i love i'd love to invest in and what i am investing in i'm investing in hard assets which is like real estate real estate now more than ever and how can i get the most expensive piece of real estate like an apartment building or a big commercial building et cetera if i can get a piece of that that would be really good because it's a hard asset the second is i love crypto right now because it's not pegged to cash and i'd rather be in that third is i love i love any form of technology stock because in this environment where like google facebook etc i personally like it because they're going to use all this cheaper capital and just flood it in innovation and that's going to drive significant value in people's companies and fourth if you want to any of that even if you just invest in the broader stock market like the xlk or the s p 500 or whatever you still win because companies will do significantly better because stocks will do better with with higher inflation because companies are just worth more because the purchasing power is less so hard assets companies etc soft assets like i would not this is not the time to you don't need three bentleys right now like one's good but i would do more hard assets because i think inflation's coming to answer your um what would be a million worth in 10 plus years i think it's going to be a significantly less than what it was worth 10 years ago from 20 whatever what is this 20 21 so 2011 to 2020 the growth of a million dollars versus 20 21 to 2031 i think the 2021 to 2031 is gonna be a lot less from the purchasing power of the money so we all should make more and you should invest in hard assets a little bit more you want to go last question because i want to be respectful of your time sure awesome sounds great oh this is good what do you think about art investments uh anna i have no welcome to uh honesty i have zero idea i don't have any clue how to do it if you ask me i would say oh do i have liquidity do i have ownership what kind of terms are these is there like i would ask those questions but this one i'm sorry uh alex do you guys own art i don't i don't own any art i was actually just typing i mean if you understand and know art like we have neighbors in our building who they buy really expensive art as an investment we know people who do because they understand and they've studied it et cetera and then they run it through you know similar equations if you don't then i feel like there's a lot of other assets that have the same benefits that more people can educate you about than art but you know so i think it's a personal question if you're not buying high-end art super high-end art and you know people and you've been i i would probably stay away from it because it's purely speculation it's like there's no value in it because like someone else would be like i just don't think it's worth it and you'll never find someone else who thinks it's more valuable than you do which is what's my risk of it going to zero there's a real risk yeah yeah there's a there's a studio here that their art is like all authentic and they sell it for you know 50 grand a piece 70 grand a piece 100 200 grand and she just has little kids in bangladesh making the art so these guys think they're getting great investments when they're making it for like you know however much it's not even done by the artist so you have to be careful yeah i want to say two two well i'll see i'll say three really quick things thing number one is hopefully that those frameworks are helpful i'll send dave and the team all all the stuff and uh links to the course et cetera so that'll be number one uh number two i hope you know that dave alex layla don't need to do this they don't need to spin their networks lean on their relationships to find people find great people to come and hang out with you to share this they don't need to do this right there are hundreds of companies that that that i know owners of and leaders of that don't do this and i think that we all owe um both a silent and public debt of gratitude to um alex and leila for always just thinking about us helping us get better putting out great content making sure they think of the team et cetera so um can we just do like a just can you just unmute yourself and do like wolf pack for for alex and layla just as i thank you just a quick look awesome awesome um last but not least uh if if you want if you have a question or a thought just just hit me just dm me on instagram and be like hey i have this and if you can keep it as a quick yes or no question or something short uh i'll probably get to it faster than others but but since we were all here together please feel free to do that happy to support you guys in any way that i can thank you so much ron for uh for taking time hopefully guys those are the these are the frameworks that layla and i uh learned from charon and we apply those to you know all the things that we think through it trying to keep it simple is is always the goal anyone who makes it feel like it's really complicated i'll just run the other way and so it's usually was it like any any fool can make something complex but a master makes it simple and so i think charon is a wonderful example of that and we've learned a tremendous amount and we're very grateful so can we get a can we get some ones in the chat real quick for sharon for like he does not need to do this um and he did it for you guys because i just wants to help awesome super cool lots of ones awesome thank you guys thank you tron you're phenomenal appreciate you guys you guys have a good rest of your thursday awesome thank you guys have a good one talk soon …