Rothschild v. Vanderbilt: How To Build Wealth, Grow It And Keep It - with Devang Patel - Genius Network Episode #116

Banking is what they focused on. So they started with, like, just going on the donkeys and they're, like, getting the coins. But from there, whatever was needed to finance all the wars, they figured it out, and then they eventually went into traditional banking.

Devang Patel went back to American history to find a single idea that generated him $3 million a year. It's the story of Rothschild versus Vanderbilt. Remember to subscribe to Genius Network so that you don't miss a Future episode. Visit geniusnetwork.com subscribe for more.

I don't want to shock you, but you're going to die. Okay, so am I. Anyway, we will all die, and hopefully that will be a long time from now. Yet when we die, what will we leave behind? Yes, there will be money. And hopefully a legacy that lasts. When it comes to money, and I mean a lot of money, I'm sure you've heard of the names, but the Rothschilds and the Vanderbilts, in the next 10 minutes, you'll hear a lot more about them from Davaind Patel, who will share an idea that has helped him generate over 3 million a year in his business. He's done it by focusing on what his clients really want, a financial and emotional legacy when they die. And so do you. Devain has been a financial advisor for the last 14 years and specializes in working with successful business entrepreneurs. He has many credentials after his name, such as cfp, which stands for Certified Financial Planner. And if I were to give you all the 29 of those designation letters after his name, we wouldn't have enough time for his talk. So he's a highly qualified financial advisor. Devain came from India 21 years ago with English as his first language, yet you're still not going to be able to understand what the hell he says anyway. Seriously. His accent will require you to really focus and pay attention because you don't want to miss a word of what he's going to say. His title is Rothschild vs Vanderbilt. Please help me welcome Davaind Patel.

Thank you. It was 14 years ago, my first day at work at MetLife. They gave me all these people to call. I'd never done a cold call in my life before. So I pick up the phone, call John Smith. John Smith's wife picks up the phone. I say, hi, can I speak with John? She says, who is this? I said, the bank. She looks back and says, sure, John. The bank is on the line. So all of us, all of you guys who are here today, guys and girls, are here to learn about how to build wealth Grow it, but more importantly, keep it. Or not. So that's what I'm going to talk about. What things come to your mind when you hear the name Vanderbilt and Rothschild. Anybody in the audience? Really? Yep. Barons. Filthy rich, right? They were filthy rich. In fact, they were so rich that the wars did not start until the Rothschilds said, yes, we will finance it. This is how much rich they were. In today's dollar. The Rothschild family was worth $360 billion. That's correct, $360 billion. The other great family, which was the Vanderbilts, they were worth around $215 billion. Lot of money. Take a guess. The guy who puts a smile on all of her face, Jeff Bezos from Amazon, is worth around $98 billion. He's doing really well. Bill Gates, who owns Microsoft, is worth around $90 billion. And the third guy, which I'm pretty sure is very famous and everybody knows him, is Warren Buffett. He's worth around $85 billion. Take a guess. All three of them combined are worth roughly $275 billion less than what the Rothschilds were worth. That was almost 200 years ago. So what we are trying to here to figure out is what did they do right? And what are the lessons that we can learn from them? So anybody in the room, do you know the names of your grandfather and grandparents on your father's side and mother's side? How about their parents, the eight people? Most of us don't. The reason why we don't is they didn't leave us any money if. Right? No. Think about it. Even though Joel was one of the passengers on the Mayflower, if he was getting a check for $50 on his birthday for the last couple hundred years, all it said was, our great grandson, Joel, we love you. We wish we were there for you. Do you think, Joel, you remember one of those eight people? Oh, yeah, right. That's what money does. It's not the size of the money. Right. Do you think, Joel, you'll try to learn more about that one person? Like who? Who was that person? Yep, I got it checked every time. Correct. So that's what we are here for. What can all of you in the audience do in terms of the lessons from the Rothschild and the Vanderbilt family? So not only do you build wealth, grow it, but most importantly, keep it for multiple generations. Rothschild was an amazing family. They were born in Frankfurt. Amstel Rothschild was the first person. They were Jewish. They were living in the Jewish ghetto of around 2500 people. Very poor. He had five kids. So even though they worked hard, you can see that they were not always busy working. They had so many kids. This is the main guy. He is Meir Rothschild. He's the son of Amsil. He's the guy who learned everything from his dad in terms of banking. He was so smart that at the age of 10, he. He used to travel with his dad, and he could do currency manipulation. So for everybody who's playing bitcoins and Ethereum, he could do the different gold coins, and he can translate that from one country to another. He was that smart. At 10, his dad used to let him run the whole exchange when he was gone traveling. He had 10 kids. He actually had 19, 10 survived. Five of his kids ended up coming in the business. But what Mayor Rothschild did is the banking information that he learned from his dad. He took it to the next level. His great break. He got a huge break when this prince, Crown prince, Prince with him, he was so wealthy, but he never wanted anybody to know how much money he had, right? Because then everybody, all the other relatives will start asking him for money. So Mayor put himself in a way where he would disguise himself as the person who has the money and collect the money on loan for the prince. So Prince can actually end up helping his relatives, right? Without the relatives knowing who was actually funding the money. That's where they get the money. This prince was so wealthy that in the 1700s, he used to buy $800,000 worth of government bonds in one instance, right? It was huge. Money banking is what they focused on. So they started with, like, just going on the donkeys, and they're like, getting the coins. But from there, whatever was needed to finance all the wars, they figured it out, and then they eventually went into traditional banking. The real wealth came when he did partnership with his sons, which other families did not do. And he not only gave them the money, but he also gave them all his intellectual property. It was just amazing how he taught all his kids. His kids were working with him full time since they were 10 years of age. Right? The third generation now. So now we are down to the third generation most of the time. How many of you worked really hard since you were like 10, 12 years of age? Raise your hands. Can you imagine your great grandkids working as hard as you? This is what the third generation was doing since then, they're working as hard or not, if not more hard than what the great grandfather did. The reason why the Rothschild family and they got $360 billion, is the five sons settled in different parts of the country they went to France, Italy, London, Naples. So what that did is think about it. They were Jewish people suppressed. World War I, World War II, before that, the Napoleon wars. In France, most Jewish people were prosecuted because they were in five different countries. They thrived, which is very important, which will come in. One of the lessons is diversification of your businesses. This guy was the most famous of the third generation. Nathan Rothschild. Quick story. One day he got so upset that this person would not deal with him that he left for England at the age of 16 just to start his own business. Contrast that with the Vanderbilts. Cornelius Vanderbilt, amazing guy. He made his money in sail and steamboats, eventually upgraded the business to ocean going steamboats and finally in railroads. What he did is he gave 95% of his money to his son, William Vanderbilt. He had 13 kids, but most of the money went to just that one guy. Brilliant guy. His son doubled the money in nine years. Right. Amazing. Of all the people in the Vanderbilt family, the ones that you know really is Anderson Cooper. But most of the money he has made is self made. So what are some of the lessons that we can learn from them? One is hard work. What we find is hard work is the most important thing. There's no substitute for hard work. So think about Ben Hardy within our genius network. He wants to write a journal every day from 5 to 7 in the morning. You'll not hear him say that I want to take time off because I'm so successful. Resourcefulness. Rao came to the country with almost no money and he figured out how to work and how to become really successful. Mind your own business. Great example of this is Tucker, right? He has a book in a box in a book company. He doesn't do anything else. That's it. He just focused on that. We have Steve Sims. All he tries to do is put happiness on people's face. That's it. Nothing else. What are the things that Rothschilds did which were extremely good? Just Rothschilds family first, right? So you have to put your family first. They were the only ones who are really tight knit. You have Chris Smith who goes on vacations with his whole tribe. He's not here right now. Longevity. I already told you about Joel, but he's one of the. His Social Security number is six. That's how old he is. Focus. You have to be really, really focused on your business. So for example, Cameron only talks to the COOs and helps them grow their practice. So do you want to be a Rothschild or wendable Skip? And for Joe, for example, he's extremely loyal. So for example, the TMZ thing happened. He could have monetized it, but he did not. Just so the key takeaways one is hard work. There's no substitute for hard work. So what do I do with my kids? They get up at 5:30, they have their goal set up. There's no substitute. They have to be the hardest working kids. For the money that we have, I want to raise $25 billion. That's just one of the BHAG goals. I have the businesses we own, massage envies, European rec centers, real estate in three different states. We have seven different equity strategies that we use. Think about Bill Gates. He made more money by diversifying his assets out of Microsoft. So you make money by being focused, but you keep it by being diversified. So what are you guys doing as part of Genius Network to do that? Advisors and partners. We have four partners in one business. In real estate we have two different partners for equity holdings, we have three different partners, two CPAs, three attorneys, 12 coaches, two of which are in the room. Joel and Joe Polish. So what are you guys doing? I know a lot of you guys and girls have different coaches, which is great. The last is spouse. One of the most important thing that the Rothschild did is they were really close to the spouse. So my wife Deepali, she runs the 48 businesses that we have around 850 employees. We have the respect for her and I learned the key things which is yes dear, you're right. And the date nights that I loved from Joe, we do that and that's amazing. So again, go out and be a Rothschild.

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