Investing During Uncertainty: Summary Of "The Millionaire Class"

Boo doo, boo, boo, boo.

Hey. Good morning, ladies and germs. Good to see you. Happy Thursday. Welcome to Capitalism and Coffee. We have a lot to talk about today. There's a lot going on in the world of capitalism. If you're watching live, please say hello in the comments. What's up, Rhino? Thank you again for your gift in the mail this this week. Esther really appreciated it. Good morning, Troy. Good morning, Brandon. Good morning, Susan Anderson. It is a great day to be a capitalist. Good morning, Matthew. Good morning, Tiffany. Good morning, Raul. Good morning, Justin. Good morning, Scott. I enjoyed our little banter yesterday. Thanks for hanging out with me on YouTube this morning. Good morning, Samantha, who just joined me in the green room. Good to see you. Good morning to all of you who are watching over on the stream on YouTube. Good morning, Manny. Good morning, Salome. Morning, everybody. Great to have you here on Capitalism and Coffee. Good morning, Irfan. Good to have you. I want to say welcome to all the new members of the 1%. We had several hundred people join us in the last few days, which puts us right at about 1000 members. So congratulations on being one of the charter thousand members. We just raised the price publicly from $99 a month to $297 a month. And the curriculum is in place for us to have a really exciting end of the year and 2021. Good morning, Maria. Good to see you. Good morning, Frank. Good morning, John. Hello, everyone. John, please say hello to Chicago for me. I'm actually looking at buying a car in Chicago right now, which I will need to have shipped to Austin, Texas. But I've been shopping for a classic car for the last year and a half, haven't found it, and found one that might meet my criteria. So I may be shipping a car from Chicago. Good morning, Jeff. Good to see you. All right, we have a lot of house cleaning items to talk about today, but today we're going to be talking about the. We're going to be summarizing the early parts of the millionaire class. There's also some news from the markets from one of our stock picks over the last. If you got your newsletter, one of our stock picks got some news, so we'll talk about that. And we're going to talk a little bit, just a little bit about politics. But first, we do something here at Capitalism and Coffee called the simultaneous sip. And it's something that makes the day.

Every day, just a little bit better. It kicks everything off on the right foot. If you're having a bad day, the simultaneous fix. You know what I'M saying if you're having a bad day, the simultaneous sip fixes it. Try it one day. If you're having a bad day, grab a cup of mug or a glass of chalicentine and a couple friends and have a simultaneous sip and watch how much better the day gets. So fill your vessel with your favorite liquid and join me now for this simultaneous sip. Go.

As Scott Adams says, if you don't do the at the end, you're really missing out. You're really missing out on about 38% of the goodness so this week I'm in trouble. I made a very long political post this week that basically just shared some of my frustrations about being a truly undecided voter. I have the most controversial opinion in all of politics right now, and it is that I truly don't know who I'm going to vote for. So I did a little bit of an explanation about why I feel torn. And actually I try not to see politics as the lesser of two evils. The reason we have the lesser of two evils because we make these long lists about what we don't like about the other side. The reason why we always have this problem of why is it always the two worst candidates is because we spend months talking about what we don't like about somebody else, and meanwhile the other side responds with all the things that they don't like about the other person. I try not to play that game. So you can find plenty of things to like about just about anything. And if you can't, it means you spent a long time pounding the drum of things that you don't like. And I just choose for my own happiness and mental wellness not to play that game and instead try to look at what I do want and what I do like rather than what I don't. And so where I am right now on the political side of things is that it leaves me a little bit of an undecided voter because I have some frustrations and some compliments to both sides. I have nice things and some challenges to say about both candidates, and I have fears and opportunities that I see in both directions. So I made an explanation about how I arrived at this point and where I'm currently leaning. And and it got me in trouble with not the people that you would think. The Republicans lashed out, the Democrats lashed out, and the people in the middle reached out to me privately to say thank you. Now I tell you this story because I knew I was going to get flack for taking a stand on something, and I knew I was going to take a stand that made most people upset because I didn't come down and say, this is the side that I agree with. And when you're sitting in an. In a time when you have people who are polarized so deeply on both sides, both of them want you to come onto their team and advocate for them. But since I didn't, I knew that both would give me flack. And I lost some followers and some customers as a result of not coming down on the side. But I gained some raving ass superfans of people who really appreciated my approach to the thought process. And I tell you this because I knew this was going to happen. I knew that by speaking what was going on for me, I would isolate some people and draw some people in closer. I knew that was going to happen. And in business, this happens all the time with entrepreneurs and business owners who don't want to piss off any customers or any followers. And so they never say anything at all or they fear the loss of something rather than seeing the gain that comes from taking a stand for what it is that you want to represent. Whether you are representing a cause or a person or a political movement, if you take a stand, you draw the people who, who are, who vibe with that to you and you end up bringing others along with them. The story that I like to tell to illustrate this idea is Clif Bar. As unoffensive as Clif Bar is a Clif Bar. If you look at the packaging of a Clif Bar, it is marketed to men. So there's a male on the package. He is climbing a mountain. The language is in masculine language. It's in, it's very subtly advertised to men. It's in blue packaging. It's like subtle tones. And.

The message is the marketing does not isolate women. It does not say, don't eat this if you're a woman. It just speaks to men. And when I'm telling this story, I'm in a group of entrepreneurs essay. Have any of you women ever eaten a Clif Bar? Hands go up and I say, okay, so here's what happens when you target a very specific group of people. In this case male endurance athletes. You end up getting everybody else. You get women, you get non endurance athletes because you are focused on one and that pulls you into the rest of the market. Then I flip it and we say, well, what about Luna Bars? Luna Bars are the same company as Clif Bar, but the marketing and the packaging is different. They're marketed to women, they've got feminine packaging. Feminine language, feminine flavors. But I've eaten a Luna bar. Dudes, have you eaten a Luna bar? And if you go all in on one person, you end up getting everybody else. So in this case, I am just somebody who shares his thoughts publicly. I don't really care if I isolate some people, but I very much enjoy drawing in those who are, who are compelled to that thought process. So I get haters too. Get used to it because it's going to be a thing for a long time. Good morning, Rob. Good morning Tiffany. Good morning Alex. Good morning Mayor. Good morning Zoltan. Good morning Hannah. Good morning Christopher. Good morning, David.

How many of you got your 1% newsletter this month? If you've been a member for more than 30 days, it should have arrived at your doorstep by now. If it hasn't, then you can download the PDF or the digital copy inside of your members area. And this month we gave an updated list of stock picks. And it just so happens that one of the stocks that we've talked about crushed earnings today. So.

We try not to recommend stocks, but we talk about our thought process behind why I have products or why I have companies on my watch list. And one of the companies on my watch list is AT&T. Now you can look up AT&T's numbers while you're watching this if you'd like. AT&T has about a 7.5% dividend. As of right now, they're at the bottom for the year. So they have not recovered from all the COVID craziness. So they're still at about $27 a share, which is their lowest that they've been in a year. And AT&T has a track record of raising their dividend every year and they've done it for decades. Now when a stock has raised their dividend over and over and over again, it usually means that they're confident that, that they have a bright future ahead of them. This isn't always the case, but this is often the case. So when AT AND T falls to low levels and has a really high dividend rate, I pay attention. So as of yesterday, AT&T was trading at just under $27, so about 2675. And they had an over 7.5% dividend. That's juicy today. Now again, when that is going on for long enough, I tend to pay attention because it usually often means that the stock is undervalued. Well, today AT&T released their earnings report. They crushed earnings. AT&T is soaring. They're up about 6% as of 30 minutes since the market has opened and we'll see what happens over the next coming days, weeks, months and years. But this is an example of no matter what the market is doing, whatever what happened happens in the economy. We don't try to guess. We don't try to guess. I don't try to guess what stocks gonna go up, what stock is gonna is gonna beat earnings. I try not to play that game. I play the game of what has shown consistent growth and what they've paid their investors over a very long time. And then I wait for the discount. This is one of the lessons inside of your members area inside the Millionaire Class. The Millionaire class is all about investing for cash flow and long term wealth. And in your newsletter this month I gave you some examples of stocks that I am tracking and I'm just looking at a couple of them right now to see how they're doing today since it's earnings seasons and several of them are up significantly since we talked about them. Now that doesn't mean I'm the best stock picker in the world. Believe me, I am not. In fact, when I try to pick stocks I usually lose. But when we bet on cash flow and dividends and follow the numbers, that's a methodology that often plays out with more predictability. So if you haven't gone through those lessons inside of your members area, go through the Millionaire class and check out this month's newsletter. Now over the last couple of weeks we've been talking about the thought process behind investing and setting yourself up for long term cash flow and passive income. And I want to summarize that very briefly before I go over to all of you who are questions because we have a full green room right now. There's several, there's quite, quite a quite a few of you in here. So the overall strategy to ensure that you've always got wealth and passive income is to a don't do anything until your business is cash flow positive. All your attention and money should be going into the business.

And the focus of that if you are not profitable is on building the audience. The audience is customers and followers who buy your stuff. Now what is it that you sell that's on you to figure out? We can talk about it. That's step one. Step two take 10% of your take home income and put it into long term dividend paying stock. Which is why we spend so much time talking about dividend paying stock. Because if I could get somebody to do one thing, put 10% of your take home money In a dividend paying stock, don't touch it for a very long time and you will be ahead of half of the world, half of the country, half of the 1%. So 10% of your take home money put into long term dividend paying stock. Dividend aristocrats is what we like. This is what we talk about inside of the millionaire class. And don't touch it for a very, very long time. Reason being cause it double compounds. There's two forms of compound interest that work together to create really exciting returns over a very long time. It's not gonna make you rich in the short run, but it's gonna do very well over the very, very, very long term. Number three, we take the quarterly profits and our yearly distributions and we put them into passive income sources. Passive income sources are real estate investments, they are syndications, they are insurance. They are things that pay us very well over a long period of time, but they pay us in the form of cash flow. And we use that cash flow to expand our lifestyle. So we live off the cash flow. And after a couple of years you are financially free and the machine continues to compound. And then you're out of the rat race and you're in a beneficial cycle that compounds over and over and over and over again. That's how you get wealthy, successful and have passive income for a very, very, very long time. Other people might look like they're beating you in the short term because they bought zoom at 100 bucks. But you win in the long term because you have a machine that continues to compound. So that's the review of today. If you haven't gone through the millionaire class, please go do that because starting in two weeks we're going to be talking all about the passive income side of this. I'm gonna have a book recommendation for you to go through in the month of November. We're going to interview that author on one of these coffee chats and we're gonna go through the material of talking about passive income. So go through those three lessons, those modules. I think it's 4, 5, 6, maybe 7 as well inside of the millionaire class so that you're caught up to talk about passive income. And we'll be going through it here on the live as well. This is the last time I'll be live with you before the election. So I have to give my predictions before we sign off today. I predict that the President will win re election and I don't think that we're going to have it contested. I think he's going to win decisively. And of course, people are going to debate it for a while, but I don't think that we're going to have it. It contested for very long. So I think we'll know within the week. I keep going back and forth on what and who I want to have happen. We'll see what happens in the debate tonight. I've kind of. I have been very pleased with the policies of the last three to four years. Haven't been so pleased in the last year. So my vote's live, and we're going to see what happens in tonight's debate, and I'll probably make my decision tonight, but I predict that the current president wins reelection in what some would call a landslide. So that's my pick. That's my prediction. It's not necessarily what I want, but it's what I think is going to happen over the next couple of weeks. Drew, I haven't talked with Garrett. I talked to him later today. All right, friends, let's do this. Let's go over to the green room. Let's go over to those of you who are waiting. Sam, you've been in here first. Give me a thumbs up if you are ready to come up here live.

Samantha, I'm talking to you. All right, let's do this thing. Good morning, Samantha. How are you? Good morning.

Good. How are you?

Hi.

What can I do for you?

I'm just signing in for the very first time.

Welcome.

Thank you. Thank you. So I guess I don't actually have a question. This is my first time here. I might have something wrong.

Why don't you introduce yourself to the group?

Hi, everybody. I'm Samantha Jankowski. I'm very new. I'm starting off. I have a bunch of business ideas running through my head left and right. I was a big part of the fitness community for a long time. I used to compete. So that's kind of the way that I'm running. And I'm just starting with you guys trying. This is a lot of information. I'm trying to figure it all out and take it all in and write it all down. And I think I'm overthinking everything that I'm hearing.

Well, then let's simplify this. What is of your business ideas do you like the best?

Well, I was always huge into supplements and protein powders. I lived off that stuff. That was my daily life forever. I was a huge coffee drinker since I was 10. I drank that all day long. So I've been running with, like, infusing like, Protein coffees and like I said, different supplements. I just. I know the market's flooded with that, so it's. I need to figure out which niche I'm going to go with to make myself different from everybody else.

So I already. I already know your niche. So. So, Samantha, how long have you been out of the bodybuilding community? How long. How long ago?

Probably about four years.

Okay. And what changed in your life? What changed in your life to take you out of the bodybuilding community and into the civilian life?

Oh, well, my separation of 22 years, that happened. And we have kids and that's just how life goes. And things have to change.

Yeah. So would it be fair to say, how many kids do you have, Samantha?

I have three boys. Three teenage boys.

Great, great. So I have two. A boy and a girl. So would it be fair to say that there's a large number of people who lived in that community, lived in that world, lived in that community, and then life happens, but they're still passionate about looking great, feeling great, and eating a certain way? Is that fair to say?

Oh, absolutely.

Great. And would it be fair to say that there's a lot of people who would relate to your story about being on stage and being in that world and. And then going through hard times and maybe having a little bit higher body fat than they would like, but it's still a passion of theirs, is that.

Oh, yeah, definitely, definitely. I mean, I'm still that way, but yeah.

So this is your market, Samantha. So your market is, yes, there are lots of protein powders and lots of. And supplements and lots of even protein coffees out there. But it doesn't matter because brands are about people, not about product. So you rattled off to me four products. Right away you were like, coffee, protein, protein powder, supplements, and there was one more in there. Great. That's your market. That's what you go after. So you don't have to cater to bodybuilders, but you can cater after the fit mom who's now on her own, managing it as best as she can. And so that becomes your market. And it can be very similar products to what has been out there in the market before. What is different is your brand? I'll tell you a quick story. So in one of the businesses that I built and sold, we had several products that were just your standard fat burner or your standard protein. And then we came out with a version that was the same product but for women. And that product line had very different marketing, very different color scheme, and the product was just A little bit different in order to kind of tip our cap to the market. And those products took off like a rocket ship. Not because they were the perfect blend for the women's biology is different than a male's. We all know that. They're not that different when it comes to bodybuilding. What was. What stood out was the fact that we finally called out to a specific group of people that had been neglected in the marketplace. And if you do that with your brand, then you'll do great no matter what the product line is. Does that make sense?

Yes, yes.

I just.

I know I'm totally overthinking everything and I need to just slow down.

Well, we just simplified. So what are you overthinking based on what we're talking about?

No, I was just saying. No, no, I'm not saying now. I'm saying before. That was my whole.

Just.

I think I just really needed to hear that.

Yeah. Great. So, you know, Rob just made a comment. Ryan, you're good at this. Connect to that audience real fast. But let me explain to you the thought process of what makes me look like I'm really good at this. All that happened here was Samantha told us a little bit about herself, and she connected it to a group of people or a set of products that she wanted to serve. What most people are missing is just the permission to serve the market that they wish was being served for themselves. Right. So Samantha has identified just a little bit of a gap in the marketplace because she didn't say that there's some brand out there that is perfect for her. Otherwise she wouldn't be thinking about supplements that are different than the rest of the market. So that's all we were finding here, is giving Samantha that permission to do the brand that she would like to have in the marketplace anyway. And Samantha, if you do that, I think you'll be. You'll. You'll be really well off.

Great. Thank you so much.

All right. Good to see you. Welcome to the 1%. Thank you.

Thank you.

We are filling up fast here in the green room, so let's move over to Kyle. Kyle, you're up. Give me a thumbs up if you was ready.

Kyle, I'm talking to you. Wanna come hang out?

There we go. All right, let's do this. Good morning, Kyle. How are you?

Good.

How are you?

Ryan, can you hear me okay?

I can hear you just fine. What can I do for you?

Great.

So I'm in a camouflage business, as you can tell by my attire. And we sell concealment. So, like, face Masks, leafy suits, leafy gloves, things like that. And it seems like it's a pretty small market. And so I'm wondering if we need to, like, try to bring on a supplement for hunters. Like, specifically, our biggest market is turkey hunters. And so I'm like thinking maybe. So, like, we're apparel.

Right.

So that would be kind of like a whole different direction to take.

So let's let. Let me pause here because I already know what your problem is. Your problem is that you think that you're a camo company rather than a hunting company.

Yeah.

So there is, yes, there is a very limited market to people who want camo gear, but there is not a limited number of people who are hunters.

Yeah.

You see the difference? Were you here when I was talking about the Clif Bar example?

Yeah.

If you go all in on hunters, you'll get everybody else too. So this here's an example that's a little bit more related to your market. So when I was in college, all of the cool athletes were wearing North Face jackets. Now, North Face jackets were for skiers and winners, winter sports enthusiasts, but there were so many of them that you became uncool if you didn't have a North Face jacket. Right. So they went right after the snow skiers, but they got everybody else in the process. So the job for you is to identify who your most passionate customers are. And you said that it was turkey hunters. And your marketing, your messaging, your packaging, your product line should reflect that enthusiasm. It doesn't mean that you can't cater to fishermen. It doesn't mean you can't cater to campers. Right. It doesn't mean you can't cater to Bigfoot spotters. It just means that you have to pick one group of people to go all in on and you'll get everybody else in the halo.

Gotcha.

Cool.

So now your question becomes, does a turkey hunter want a supplement?

Right.

Do they?

Yeah. To be, I think, out there, you know, they're running and gunning and, you know, they need that endurance. They need the energy, the nutri.

You should ask them first. Yeah. But your job now is to go serve that passionate group of people and let them bring the rest of the market to you.

Cool.

Makes sense. Yeah.

Appreciate it.

Cool, man. Good to see you.

Kyle.

Welcome.

Thanks.

Alright, Kierthin, you are up, my friend. You ready to do this thing?

All right.

Hello, my friend. How's it going?

Hey, Ryan, how you been?

I'm not bad.

Good. Good to see you. What can I do for you?

So I was at first, I was really embarrassed posting that pitch deck on my personal Facebook.

But hold on. Back. Back up a step because. Because if you're not a member of the incubator, no one has any idea what you're talking about. So give it a little bit of context about what you're. What you're talking about.

All right, so in the capitalism incubator, for the past two weeks, we've been working on pitch decks, and this would be helpful in making sure our vision is clear and when we present it to others. And so our assignment for this week was to post our pitch deck on our personal Facebook page. At first, I was really scared to hear what others were gonna say, but, man, within like, six hours, I got so many people sharing it and so many people commenting on it, and I'm like, yo, what?

And what were they saying? What types of shares and comments? What were people saying about it?

They were saying, hey, Kirtan, I love fiction. This is cool. This is dope. Let's go that. Hello, though. Excited to see where this goes, though. This is awesome, Kirtan. Keep it up.

And how do you feel right now?

Unreal.

Unreal.

Tell me. Tell me more.

It's cool, because people I thought that wouldn't support this are just coming in and showing, giving me so much recommendations and so much advice. Someone messaged me saying, hey, Kirsten, I think potential partnerships with X, Y, and Z could be really helpful for this. And then it was other recommendations that I would have never thought of before.

That's right. That's it. Yes. And now your brain is going and finding all kinds of new opportunities.

Yes, it is.

Yeah. Did anyone reach out to you with an offer to help in any way? An offer to invest, an offer to connect you with somebody, an offer for. To buy your product when it's ready? Was there any offer like that that came out?

Not yet.

Okay, cool. So when did you post it?

Posted it last night.

All right, cool. So keep watching for those, because that's the real Matt. That's when you really know. That's when you real, like, this is exciting. But when somebody is like, hey, like, I'll buy one, or. Or when they're like. Or when they're like, send me your social media page and I'll follow it.

Right?

That's. That's when. That's when you really know. Right. So, like, this is really exciting, man. And what about. What about your family? What did they say after you. After they saw the pitch deck?

Actually, my. My family hasn't seen the Newer version of the pitch deck yet. I need to show them.

Are you still nervous to show them?

Yeah, a little bit.

Guys, I got you. So use that immediate confidence that you just got as leverage to keep talking about what you're doing. Like, it's one thing for me to tell you that I believe in your idea and you know that I've been telling you that for a few weeks now. Now you got, you got a second endorsement from people on your own personal Facebook page. Right. So keep talking about it. This is why I think it's, this is why I tease people when they don't want to share their idea. It means they're not confident in it. But your confidence went up when you talked about it. Like, you can see the enthusiasm now. And it's been 12 hours, right? So, so, so give it about eight.

You're right.

Yeah, yeah. So, so give it, give it a few weeks and watch what happens when your homie from high school who's like, hey, this is cool. Go get it, connects with somebody else and introduces you. And now you've got a new network that is starting to pop and that happens. That stuff will happen, Kieran.

Sheesh. I'll be waiting for that.

Congratulations, my friend.

Thank you.

Yeah. And any. Why don't you give a high level, 30 second overview of the brand for people who are watching?

Okay.

So my brand is named Sense Fiction. Essentially it is to serve the fiction community as I genuinely feel that fiction readers are heavily underrepresented right now. And what we are working on doing is we are working on a physical products brand for the first year. And after we launch our initial product line, we will then move into a subscription community book club where we, where I am planning to have live author features and Q&As with members bonding with each other. Basically a book club with a much better socializing aspect compared to services like Book of the Month where you, you can't talk to anyone at all. You just get a book and you're done.

And fiction, like fiction consumption is at all time highs. There's, there's, it's more accessible than ever because of Kindle and Audible Amazon, but people are talking less often. Yes. And so you're coming in, you're coming in with a solution for that as well as a physical product line for it.

Yes.

Great stuff, Kieran. Really good work, man. You're on a really good path here.

Thank you.

All right, man, good to see. I'll see you tomorrow. Tomorrow or.

Yeah, tomorrow.

Yeah, I'll see you tomorrow, dude. All right, thanks, Kir. Then how do you not get so how do you not get jazzed after that? So quick, quick overview there. So, you know, the capitalism incubator is a six month incubator that is about defining, launching and scaling your business so you're the foundation of a seven figure business. And then six months of relationships and coaching to help you go from launch closer to seven figures. And where we've been is we put a lot of attention in really getting absolute clarity about what that roadmap looks like. Because I've seen way too many entrepreneurs sell a product and then plateau and they never get to seven figures. So what we're doing is we're basically measuring twice to where you've got the three to five products outlined and dialed in. We help you build that audience, raise capital if you need it, get an absolute crystal clear vision, launch it, and then start to scale it. And where we've been is really dialing in the vision part of it because that's where all the magic happens. If you spend the time looking at vision first, you will grow and scale faster in the long term. So this is our pitch week. And so the assignment has been to make a pitch deck and to share it publicly. And tomorrow we're gonna be playing Little Shark Tank while I look at people's pitch decks and give them feedback on it. It's really fun. All right, Austin, you are up next. Give me a thumbs up if you're ready to do this. All right. Good morning, Austin. How are you?

Morning.

How's it going?

Doing good, man. What can I do for you?

Good. Okay, so last week you talked about the wealth triad, right? How do you find a real estate syndicate to invest in?

So I wouldn't recommend just Googling them and looking for them. I would recommend going through referrals, meaning go to real estate meetups in your town or join real estate Facebook groups or LinkedIn groups and meet with people in your town. Ask them what teams they invest with. So for example, here in Austin, they're like my buddy Tom Burns, who you're going to meet next month, runs a real estate syndication. My buddy JP runs Thrive fp, which is just down the street. They're a real estate syndication. I invest in. Oh, forgive me, Alex and Shawna, I can't remember Your company's name.

12Oak Capital. They're in my network. They buy apartment buildings. And I'm not going to sit here and recommend them to you because you don't know them.

Right?

You don't know them. You don't know their style, you don't know if their approach is right for you. And I wouldn't recommend that you invest in syndications with syndicators that you don't feel comfortable with. So it is a relationship. Instead of finding the house, your job is to find the relationship. So just go to your meetups and find out what groups people are investing in and have a few conversations and don't be in a rush. Like, don't be in a hurry for this. Like, I. One of the best pieces of advice that I ever got was from Kamal Ravikant. He's Naval Ravikant's brother. And Kamal was advising me. Not officially, but we were just on a walk and I had just made the most amount of money I'd ever made. And he said, you know what you should do with that money? Nothing. Get used to having it in the bank. Let it hurt when you go invest it, because you should have verified that that investment is solid. And I almost took his advice. I'd spent half. Like, I invested half of it and I kept half of it. And the amount that I invested really quickly did not perform well. The amount that I kept on the sidelines and waited performed better. So don't be in a rush and make really good relationships before you pull that trigger.

Okay. The follow up question to that was, which you kind of just touched on is what is your, you know, like ROI filter? If you, if you're looking at different cash flow investments, do you have like a percent back you're looking for or what's kind of a good rule of thumb?

Yeah. So when it comes to cash flow investments, that third part of the triad, my target is 1% per month. So 1% per month. If that means, if I'm making a $500,000 investment, it means I want to be cash flowing, $5,000 a month right now, ideally there's. Ideally what I want is for that asset to also appreciate in value and I want it to be tax efficient. So, for example, real estate, I want to get 1% per month on my money, but I also am hoping that it's in markets that are going to appreciate. And my hope is that the, the syndicator is wise enough to depreciate the asset so that I get a tax write off. So it's not just that 8 to 12%. I'm also getting those other pieces of, of the pie that are really exciting. Does that make sense?

Yeah. That's awesome.

Thank you.

Cool. You bet. Austin, good to see you.

Have a good One.

You too.

I love talking about investing.

Oh, man, November is such a packed month. Listen, guys, there's two things we're gonna be talking about. We're gonna talk about passive income. We're also gonna be talking about options in the stock market. Sounds complicated. There are some things that you can do with options on the stock market that are really simple and sexy to where if you're just starting out and you've got only a few thousand dollars, it's going to give you a lot of. It's going to let you see that there's still cash flow to be made, even if you don't have a whole lot sitting around. So we're going to try and squeeze both of those topics into November. We'll see how it goes. All right, Alex, you are up. Give me a thumbs up if you're ready to do this thing.

All right. Good morning, Alex. How are you?

Good morning.

Good morning.

First time here and welcome. I've been nervous, actually.

I've never done this before since.

Yeah, just a few times.

I think 2012. So, really excited to be here.

Thank you very much. I appreciate it.

I am basically in a point in my career where I'm looking to kind of pivot and change what I do, kind of while maintaining my original business. I operate and running a manufacturing business in Greece with my brother. We make women's clothes and we specialize in the plus fashion industry.

So I have a new idea that I want to implement, and I just wanted to clarify it a little bit. I'm very uncertain about.

Sure.

What I have in mind is still very general.

So I always had the issues when it comes to. With my mood affecting my work as an entrepreneur. So if I had a bad night's sleep and usually do, like, it really affects my psyche, my clarity. And during the day, like, it really affects my productivity in the long run. So to begin with, I was thinking maybe I should start some sort of company that tackles insomnia, but.

I thought that was too specific. And because there's not just one thing that messes with your mood, there's also food and your state of mind and your social circle. So.

My first question, I guess is, is this a good idea to expand so much? And as a second question, should I start talking about tackling one thing at a time or all together? I know this is way too many questions at the same time.

No, I totally. I totally got you. I really. I really understand what it is that you're asking, because what. Where you are is right at the goal Line of clarity. And you're, and you're. Do you watch American football, Alex?

No.

Okay, well then there goes my analogy. All right. Do you play soccer? Do you play football, Alex?

Yeah. Yeah.

Alright, so you know how there's like that, like things are crammed right before the goal when all, when everybody on the field is like crammed up in there. It's like almost harder to score when you're right about at the, at the goal. That's kind of what your brain is doing right now is you're real close and so all, everything is coming in and trying to figure out these last pieces. So, so this is, this is, this is I think, your play. Whenever there's confusion.

The solution is to zoom out and look at the person. So you're looking at the problem, which is giving you some product ideas. You're looking at the problem of mood. So you're looking at, okay, supplements, you're looking at food, you're looking at schedule. But if we zoom out a little bit, who is the person? And it's not people who suffer with insomnia. That's a little bit, that's a little bit too general because there's not, not a clear person behind that. But for you, you were, you were right on it at the beginning. You're like, I'm an entrepreneur who balances a lot of stuff. And as a result of balancing all of this stuff, I've struggled with my mood. And one of those things is insomnia. Right? So the real play here is your market is people like you, which is people who are working from home, juggling a lot of things, and as a result they have a lot of sometimes anxiety, sometimes depression, sometimes insomnia, but all mood related stuff. I would just call the product line Mood. Right? So that's your business, it's called mood. And your market is probably the work at home or the entrepreneur. And your market is you have products for anxiety, products for depression, products for sleep, but you're not a depression company. Right? You're a, you're a mood optimization company specifically for people who are hard chargers at home. Right now we're a lot clearer and you might add in your own language to that, but I think that brings you a little bit closer. Are you following my train of thought so far?

Yeah, 100%. I was actually thinking of the same thing. I just forgot to kind of mention it to you.

Can I ask a follow up question?

Yeah, please.

I'm a bit worried because in my head that kind of directly competes with on switch and off Switch, I think. And, like, I've got a juggernaut that I have to compete against.

So, I mean, but you're. You're thinking now you're giving your power to somebody else. Whether that's me or. Or it's Aubrey Marcus who started Onnit, or it's the nootropic company down the road, it doesn't matter. Like, some people are gonna be drawn to your business. Some people are gonna be drawn to my business. Some people are gonna be drawn to onnit. The important thing is the target market that you're going after. And I was always really encouraged by what Tom Bilyeu said. He's the founder of Quest Nutrition. He said, we're not a protein company. We're a metabolic company. And our goal is to end metabolic syndrome. And if there's another company out there that can solve metabolic syndrome better than us, I would support them.

And so I take the same stance. If there are other companies who are serving the same person better than I can, I would support them. And if there was a company out there that was going after the same market that was already ahead of me, that was doing an awesome job, and I saw no problems with their company, I wouldn't start Switch. You see what I'm getting at?

Yeah.

Focus on the person and the problem, and let the cards fall where they're gonna fall. If you beat me, Mazel tov. All right. If you get acquired for $100 million, I'm pumped that you did. Right. But the chance. Here's what's probably gonna happen, Alex. Let's say Switch grows and gets acquired for $100 million, and you've got Mood, which is. We'll just say it's a much smaller company. What do you think happens to the value of Mood the minute that I'm acquired for $100 million?

Good point.

What do you think happens? What's that?

I said, good point. Probably increases.

Yeah, Your. Your value just went way up. So do you want to see it as competition, or do you want to see us building the market together? Because one feels really crappy and one feels really freaking exciting.

You see what I'm getting at?

Yeah, actually, I feel significantly better now.

Good, good, good. So you have my blessing. Go serve your people and go create great products for that group of people and let the cards fall wherever they're gonna fall.

Okay, well, thank you very much.

You bet. Great to see you, Alex. Thanks for hanging out with us.

Great to see you, too.

Bye. Bye.

By the way, Alex, you Have people in the comments saying they want to buy your product already. Good work. Great pre launch. Alex.

Irfan, I'm really excited to get to you because you just look ready to party.

Josh, you're up next in the queue. Give me a thumbs up if you're ready to do this. All right.

Good morning, Josh. How are you?

Good morning. Can you see me?

Yes, I can hear you loud and clear. What's going on?

All right, great.

Yeah.

So I am in a very weird position where I'm trying to.

Come to terms with not having people be quickly responsive of the content that I'm creating to build that awareness around my brand.

So, I don't know, do you have any kind of mental tips on how to just kind of be more present with that?

Well, I mean, is, is. So is it about being more present or is it about just believing in what you represent? Right. So are you reacting to the responses that you're getting because you're insecure, or is it because you are really secure about where you stand?

I am secure.

Based on where I stand because what I want to bring to my customers is like an extension of my life and how I've seen myself grow through my own personal action as well.

So.

But it's so strange because within the past month or so, I was putting out content to kind of draw that attention.

It's so funny that, like, I got more attention from people outside of the country. I was invited to our live to talk on an issue that is completely unrelated to my. My scope of view. So it's kind of, you know, disheartening to some extent that I'm able to relate to people in other issues, but not my own. So I don't know if it's like a communication issue that I have to work on, but, yeah, it's so.

Well, hold on. So let's clarify this a bit. What do you want to have happen? What is what. What are you hoping happens as a result of this?

What I, what I really want is to see that.

There are some kind of, you know, visual. There's some visual representation on the digital platform that what I share is of value to people and, you know, like just a simple agreement or a simple share. Like, I know that sometimes it requires, like, me asking for a call to action.

But I guess I probably just need to be patient enough or.

Well, it's not just about patience. It's also about appreciating the fact that someone wanted you on their live to talk about a topic which is exactly what you just Said you want to happen. You just said what you want to happen is you want to be able to share your viewpoint in a way that brings people together. My words, not yours.

Yeah, yeah.

And. And you got the opportunity to do that, and you're beating yourself up over the fact that it wasn't on the topic that you thought was going to bring you there.

Yeah.

Right. So. So the. The more you play that mental jiu jitsu, the bigger the gap gets. Because here's what happens for Josh. Josh says, I want to be able to communicate my viewpoints in a ways. That way that brings people together, opportunity shows up. It's not how Josh thought it was going to be. So. So now Josh is like, what did I do wrong? Am I not communicating well? What's wrong with me? Do I need to clarify my message? And now you're stuck because you got all this mental noise rather than seeing this invitation to be on somebody else's. On somebody else's audience as evidence for the fact that Joshua is getting exactly what he wants out of his business and his following.

Right.

So if. If we were to believe for just a second, if we were to try on the belief that Josh is on the exact, exact right path he's supposed to be on, could we find evidence for that?

Yes.

What is some of that evidence?

Yeah, actually.

Actually, strangers or people that I haven't spoken to in a while reached out and say, hey, I know we didn't speak in a while. I like what you're doing. Just keep it up. Even if it's like a little trickle, but it happened.

That's. That's good evidence. What else?

Right.

I'm. I'm not feeling so much. I just feel like I could still continue doing it. I'm not disheartened that I just want to drop everything. To me, that's a big. Yeah, that's a big.

You feel excited about this?

Yeah, yeah.

Excitement's a real good piece of evidence that you're on the right path. Cool. Give me one more piece.

I am still pushing through to.

Connect with suppliers. I'm still going through the modules.

And you've got momentum. Yeah, I have some momentum. You know, I'm still in the early stages of development, but still I'm. I'm seeing little bit of progress.

Yeah, so you're seeing progress. You're seeing momentum, and people are inviting you onto their audiences, which is a good piece of evidence, too. Right, Cool. So we just made four pieces of evidence that Josh is on the exact right path. He's Supposed to be. Now, let me ask you a question. When you believe that Josh is on the exact right path he's supposed to be on, what do you think about the comments from people who disagree with you?

Well, this is the weird thing. I'm like, I'm not seeing the comments disagreeing with me.

Well, you. You were asking, how do you stay present when people are disagreeing or commenting differently, when you've got people coming out of the woodwork? So how do you feel about that when you know that you're on the right path?

I. To me, I just. I just realized that not everyone's going to be on board, and I just need to focus. Who will be on board? It's just like that's.

Yeah, that's it. Because if you believe that you're on the right path, then you will give all your focus to the people who are supporting that path that you know you're supposed to be on. Right. The only time that you will slow down and have a lack of momentum is if you buy into the false belief that you're on the wrong path.

Right.

And if you believe that for a second, then the negativity will start to come in and start to slow you down.

Yeah.

But if you remember that you're on the right path and this is where you're supposed to be going, then you will give. You'll give sympathy to the people who don't agree with you. You'll give. You'll have love and compassion for the people who don't see it your way. You'll have patience and presence and understanding for those people. So you asked me for a tip on how to stay present. The tip on how to stay present is to know where Josh is going to know so much about who you are that people will pay attention and fall in your wake. They will fall behind you. Like, I get so much flack, Right. I get so much. Like, I make political statements on the Internet, Josh.

Right.

Yeah. In a way that attempts to unify people, which both sides hate.

Yes. It's true.

Sides hate it.

Yeah.

So you know what that does? It means there's a lot of demand for what I believe. It means that the more people that get upset, the more that I know. Guess I better do a better job. Like, better. Those are people who are so afraid and feel so polarized, and they have so few examples of love and compassion and understanding that I know that I need to do more. Love and understanding and compassion.

Yes.

Yes.

That is true. Love and compassion before judgment. That's what My dad says so I'm like hearing familiar words, so it's good.

Does this make sense, Josh?

Yes, it does. Thank you very much, Ryan. Thank you. Thank you.

You're welcome. Great to see you, Josh.

Yes.

Yes.

Y' all can hear my youngest screaming in the background. All right, Earfen. You can correct me how I'm saying your name, but let's do this thing. Good morning. How are you doing?

Good.

Can you hear and see me? Okay?

I can hear you and see you loud and clear. Am I saying your name right? Earfen.

It's Earfun.

Earfun. Perfect. Thank you. I'll never forget it. Now, what can I do for Earfun?

Thanks for having me. So I have a question. Two questions about audience and product. I inherited took on my wife's e commerce business and she sells videography equipment to food bloggers. If you've ever seen those tasty videos, which are top down, hands and pants style video tutorials, she makes an overhead tripod to help video creators film that kind of content.

Hot damn. I already know where this is going and I'm so excited. Please continue.

Sure. So about audience. The store launched a couple of years ago. We're selling about 30 units a month and we're selling it for about $200 a unit. And since we started, we've actually seen the use cases expand from what we started. So it's not just food bloggers, but it's a bunch of different DIY creators from artists, illustrators, knitters, to electronics creators. It's pretty wide on that front. We also have digital marketing companies who are using it. And interestingly, since COVID a lot of remote instruction, so you could think music instructors or music students who are using the rig in order to continue with their piano lessons, for example. So, you know, I read the book just a couple of weeks ago and I wanted to want to apply the principles of that book to determine my roadmap. And I'm thinking about the determining the audience question. And you know, it started very focused, but I've seen the use case expand. Do I try to find something common across all these use cases and invent a sort of audience Persona that meets all of them or keep it still razor sharp on food bloggers.

Okay, so earfund. So first of all.

You'Re sitting on such a gold mine, like, take my money, I want to invest in this business like right now. Because like as soon as you started talking, I'm like, I see it. Oh my goodness, I see it. So before I, before I rant Tell me how people are finding you and how you're taking orders right now.

Okay, so we have a Shopify store. We are also on Amazon and both of those systems are connected.

We don't do any paid ads. People are finding us through organic search. Some of our orders come from. There's like a community for food bloggers. And so they did sort of like a gear roundup post. So we're kind of known within that community and randomly there is another sort of product review site that put our, our product in one of their roundup lists as well. So we just get traffic through that. We actually haven't really done any affiliates or promotions or anything like that.

Irfan, I'm so I run an investment fund. I would invest in this business right now. So now let me, let me give you what's in my head right now about why I can see the potential here. Your market is video creators. Your examples are food bloggers, right? And so all you need to do here is have one ad that shows examples of people using your video setup and showing the number of views that each video got.

And you're done. You're done. So your content in your ads is showing people who have used the setup to make videos and showing their results. That's it, you're done. You're a multimillionaire.

So it's case studies.

Yes.

And just for food bloggers, keep it still focused on food bloggers.

So food bloggers are great examples, but your market is the creator. It's the video creator. I'm your market. Right. And here's how I know that I'm your market. Right?

One product. Whoop. Breaking things. Product number two.

Product number three.

You see where I'm going with this, right? I've spent thousands of dollars on video creation. Food bloggers are one example of people who spend a lot of money on video creation. So one of the examples that you'll use is a food blogger who uses your stuff to create content and it goes viral or just helps their business. But another example would be the guitar teacher who sets it up to play music. Right? So food bloggers, great, that's one example. But your real person is just the video creator.

Okay, that's helpful.

Please take my money. If you need an investor or an advisor, please let me know because I would invest in this tomorrow. You're sitting on such a gold mine right now.

Okay.

Is this another question?

Is this your full time gig? Your fun?

It is. I left my job at a software company once.

My wife could hire me yeah, Good, good. Because you're sitting in a re like I, I predict that your business will be 10x what it is right now a year from now.

That would be amazing.

I'm going to make that prediction right now.

All right, I'll catch you up on it in a year and tell you how it went.

Cool, cool.

I have another question. So right now we're selling this one flagship product. It is sort of the beachhead product from which everything else sort of, you know, follows. But you know, it's a 200 product. We're selling right now about 30amonth. And I'm going back to, you know, the blueprint that you define in the book, which is 25 to $30, $30 or 30 sales a day. And I'm wondering, you know, how do I launch another product and think of that as my product number one using that blueprint or like how do I fit what's, what I currently have into, into the, the principles that you lay out in the book.

Yeah. So let's just punt price point for a second because you're in a premium market, so we don't have to be married to that $30 price point that's really just made to help somebody get how simple a million dollar business can be.

Right, I see. I thought it was more for momentum. Like if more people are buying a dollar 31, that that's how I can.

The Amazon algorithms would favor that.

Yeah, I mean it can there, but it's really all about the person. It's all about getting that target market on board. That's where the real momentum is. So the question for you is going down to okay, what else does this person buy that's a natural fit or compliment to my existing product? So for you, is it additional mounts, is it other setups in their studio? Is it sounds like sound curtain, curtains, is it like, is it certain types of lighting? Is it stuff for the home office? Because they're doing most of this from, from their home. Like you're, you're in a really cool spot to be the one stop place for the home studio. Right. If you can sell the mounts and the lighting and all of this to set up the perfect home studio. Now you've got a really kick ass brand, but it's not so much about price point, although it can be. One of the things that would be interesting for you to consider is what's the product that every single person in this market buys that if you were to only compete on price, meaning you took a loss or you were break Even on it, you'd get the whole market for it. So let's say that it was something like.

A podcast mic holder and you sold them at break even or at the lowest price. Now you own that market. You can use that to sell all of your other stuff. That would be more in alignment with what the. What the books formula is. But you've already got momentum with a clear market that. I only want you to do that if it actually serves the target market that you're going after. So it always goes back to that person.

Okay, cool. Yeah, this is really helpful.

Good. You're sitting on a gold mine, man.

Thanks, Ryan. Hey, I'll keep you in the loop.

Yeah, please do. All right. Good to meet you, man.

You too.

I just love hanging out with you all.

Earfun. Take my money. Please take my money now. I just love hanging out with you guys. Today is really fun. Thank you, Alex. You've got such a great brand idea. Kirthan, you know how I feel about your brand. Josh, I love that you're doubling down on your message. Earfund. Take my money. Now we'll make you a case study inside of the capitalism incubator. Samantha, aren't you glad you joined the 1%? All of you who hung out with me on part of your Thursday, thank you for spending your morning with me. I will see you. Oh, remember, next week is our off week, so there's no content next week. And then in two weeks, we'll be back with a series on passive income, talking about options and investing for passive income with. I'll have a book recommendation and a special guest for you coming in a couple of weeks. All right, guys, I'll see you soon. Take care of.