This guy made millions by inventing the McFlurry & the $1 Menu

alright sam i got a billy of the week for you i'm excited about it i got goosebumps thinking about this guy he's an inventor he's an innovator you know steve jobs zealand elon musk thomas edison look if those guys were going on a road trip but there's only one set of keys they would toss it to this guy he would get to drive and his name is tom brian i feel like i could rule where i know i could be what i want to put at all in and like a days off on a less travel ever tom ryan is basically the leonardo vinci of calories okay this is a guy who has invented some of the most iconic foods in history he invented the riddle he invented stuffed crust cheese pizza he invented smash burger the chain he invented the beef dip sandwich at quiz he invented his guy has just been inventing things in the food category the mc flu he's just been inventing things for you know just decades and he is like the godfather of food science so i wanna tell you a little bit about this guy okay i'm i'm interested because i didn't think that some like a dipping a sandwich in au i didn't think that was like an invention and so okay so some of these things i'm using the word invention a little liberally right some of them he genuinely invented meaning like nobody had done that before some of it is he created that product at that company which had was not previously a product and so sometimes it might be like oh well you know somebody else said had the idea of you know a sweet sandwich okay cool he he invented the mc riddle it's a specific thing that he invented that made it work and here's why but can can we start by me asking how you even discover this what do you like on the mc riddle wikipedia page just you know when you're eating something and it's so good you're like i'd like to pay homage who's the man who invented this and i'd like to go put some flowers on his tombstone that's not exactly what happened i saw tiktok about this guy and i was like there's just no way one guy did all this okay alright so this guy basically he goes to college and when he's at college he has his girlfriend the girlfriend taken a food science class so she convinced him to take it he goes there and immediately falls on love he's like oh my god i didn't even realize there's a whole science behind things like ketchup and ice cream like there's literally like chemistry science but then there's also sort of the brain science psychology the tongue science of like what flavors work and so then need not only studies food science he then gets a masters in something called lipid toxicology right this guy is just studying like the science of fat and i would say this guy is like you know i don't know what the what the equivalent of the nobel priest prizes is but for like obesity what this guy deserves so he he just so he goes and he gets a job at at duncan hines he then works at ji and he's like pioneering a lot of their peanut butter work that he eat that you know does some some really great peanut butter work the bus work yeah he's like you know these open ai researchers that are just getting poached from lab to lab that was him going from hines food lab to the ji food lab and then he gets a call from pizza hut and they recruit him as head of new products because he got his reputation because he even at jiffy he was launching new products and so he gets this reputation as being like this sort of mad genius and his friend tells him when he gets the job at pizza hut for head of new products he goes dude i'm so sorry because what he's like that's a tough position man everything's already been done in pizza like you're doomed you're doomed his male pizza is a solved problem and he there's a quote from he goes that pissed me off they he goes he goes it pissed me off that because they the guy was doubting me but because a lot of the world thinks like that they think the world is full of solved problems i don't think like that i think there's always an opportunity so he goes into the research and he's doing research and he's like alright what could consumers care about when it comes to pizza and he's like alright two things are very clear to me after studying how people eat pizza number one cheese is the value driver the more cheese the better the cheese the better and there's really no limit to the amount of cheese that people are willing to have in their pizza and second the dog eat the crust he's like the crust is the necessary part because you need a handle to hold the pizza but it's the worst part of the pizza that people just give it to the dog and so he's like alright i need to put cheese in the crust and so you know he goes to his team and then yeah just put some cheese on top of the crust it'll be great he's like nah doesn't have that wow factor he's like we're gotta gonna have a wow factor he's gotta feel different it catches just be that we've added cheese to crust it's gotta like be something that's marketable and so he's like let's figure out how to put cheese inside the crust which was a whole like physics problem because you know he's like the first one he made like that he's like it tastes pretty good but it looked like a like a bike tire like i burnt the whole outer crust was like this fat you know like burnt thing and so he had to figure out how do you cook the pizza so that you can have gooey cheese in the crust without burning the crust and so he does some work and they figure it out they fit get a special dough and a special pan and they get it to work and it becomes a it but then he's also a marketing genius and so he creates he's like you know what we don't need to do something new what we need to do is have you ever seen this malcolm glad we'll talk that he gives as his big ted talk about the the perfect pasta how he's in this no that sounds great what is it so it it's malcolm glad famous ted talk from back of the day when he was you know malcolm glad the man writing tipping point and others and he basically talks about this guy another food scientist who got hired by a pasta sauce company rag or whoever and they were like we need you to figure out how much like what's the perfect pasta sauce like should it have like chunks in it should it be just smooth should it have like herbs in it or just be plain should have cheese like what what's the perfect pasta sauce and the guy and then the the the big takeaway the spoiler of this ted talk is the guy goes discovers there's no perfect pasta sauce there's only perfect pasta sauce is meaning you cluster people into like four or five categories of if you like chunks then give them way more chunks than you're currently giving them like they want way more if you like spice make it way spicier it's too mild for them today and if you like cheese put it in so you basically like the middle that they're trying to serve everybody wasn't working and they actually needed to like go extreme this guy just discovers the same thing in pizza he creates the meat lovers pizza he creates the pepperoni lovers pizza the cheese lovers pizza and he creates the lovers line of pizza there and that becomes a huge success so he's crushing it at pizza hut which but all this sounds like silly like i'm laughing this is not silly this is great this is actually and this is really hard to do at a corporate setting to convince someone this true true invention true innovations on it i'm yeah like i'm laughing but it because it's legit and this is moving billions of dollars of product right and this is like you know hitting millions of customers and this is also by the way we have friends that work at facebook and google and they're like yeah i'm optimizing that like the marketplace banner ads to be like you know whatever happens is like you know you were talking about this with that i you're wife i was like was like like if the like my wife worked and the team of them trying to put stickers on photos and she's like well if the dog's tongue is out of the mouth the the click rate is five percent versus if it's in the mouth it's only one percent right and there's definitely like a cynical side of this which is like our world's greatest minds are basically just fine tuning knobs inside of giant slot machines which is really what's happening inside of most big tech companies and most big food companies but hey i'm not a hate let me just see some of positive things of this okay so he gets the call he's at pizza hut he's crushing he creates all the all those products ring ring hello yeah this is tom speaking and then on the other side ronald set you and ronald mcdonald calls he gets called up to the biggest of the big league leagues he gets called by mcdonald's mcdonald's says we need you is he a kid right now or is he like grown ass man okay so yeah he has a great thing by the way one of his frameworks because they're like how do you invent because like honestly like one of the more creative inventors of our lifetime and they're like how do you invent he goes i try to get inside the mind of an ambitious thirty two year old and why it he's like basically when you're thirty two you have money you have taste so you kinda know what you like and you don't like but you're still open minded you're not closed off to the world and you're not like easily swayed by the latest and latest trend of everything so you're you but you're still like you're still with it and like you're still a part of every major trend that like has staying power and so he's like i studied the mind of the of an ambitious thirty two year old okay and he works that so to get some call from mcdonald's he goes there and they're like alright where's the opportunity and he's like alright let's look at breakfast and they start looking at breakfast and he's like alright you got coffee check and then you have all your like savory foods check he's like got nothing sweet and he starts thinking about it and he's like alright you know casual answer we need french toast we need pancakes and he's like this average first level thinking ew get out of get out of the room and he's he says no what are we really gonna do and he goes so he he's a master of constraints so he says how do we take the denny's grand slam breakfast and put it in your hand and they're like what and he's like i want an entire grand slam breakfast but that will fit just fit in your hand because that's what mcdonald's up this guy sounds like a i held park character and so he creates the gi which is exactly that it's a sweet breakfast beside item that fits in your hand pops off mc gi becomes a huge hit mcdonald's breakfast surges on the back of this creates billions of dollars in market cap and all because and he had to do some invention he's like well we can't have this messy drip syrup you know sticky sandwich like yeah i can't put a sticky thing in your hand then your your whole basil room ruined you're not coming back the next day and i've never had a have you had one hell yeah yeah of course there when you've never had a mcrib i've never had a miguel you never had hard tied up this is like the greatest like the greatest submarine little of those caves kids where have you bet the war was still going on sounds i know man this is the best they're the best honestly and never considered it but after this after this i'm i'm so in apparently there's you tell me i don't know is it not like covered in syrup and actually there's something called syrup crystals that are inside the like little little balls of like sugary like syrup and it's wonderful and it mixes perfectly with the salty sausage okay so that's it that's what he did tom does it and so he does that he crave and you don't get a mess in your hand so you get the syrup without a mess on your hand alright so a lot of people will talk about how you need a million dollars and three years of experience to start a business nonsense if you listen to at least one episode on this podcast you know that is completely not true my last company the hustle we grew it to something like seventeen dollars or eighteen million dollars in revenue i started it with like three hundred dollars my current company hampton does over ten million in revenue started with actually no money maybe twenty nine dollars or something like that nothing and so you don't actually need investors to start a company you don't need a fancy business plan but what you do need is systems that actually work and so my old company the hustle they put together five proven business models that you could start right now today with under a thousand dollars these are models that if you do it correctly it can make money this week you can get it right now you can scan the qr code or click the link in the description now back to the show now you might be thinking alright is this guy like you know that's what's he really about is he just is he just in this for himself is he an elite is he one of these elites that i should hate or is he a man of the people well he's a man of the people he creates the dollar menu the dollar already dude what what a iconic i wanted a iconic move is he an employee at mcdonald's right now or entrepreneur no i mean in the story in the story at this story of course that's story he did he's a mercenary he's a hired gun and great drops in like he's like a one man navy seal who drops in and like nails the target and bounces after a handful of years i don't know why there's no movie about this guy yet it's right like i don't wanna see jason bourne i wanna see tom or the only question that we have at this point is this does it come in via a parachute or just to they storm the beach on a boat like what's he gonna do yeah the storm has been told like a hotdog tread barges in he creates the dollar menu who creates the mc flurry and then he goes to quiz quiz poach him he does a little bit of work there but the owner of quiz was like yeah this is the guy so he says forget quiz let's just create a hold of concept together and they creates smash burger together which don't know if you've paid attention but as as a former qs r operator myself i'm i'm a lot of respected a steam for smash burger smash burger it's just it's just thin it i mean it's a burger that you when you grill it you put the meet you you stick the thing the metal in the mask right you spell so it's kinda like a thin crust pizza but for burgers so they kinda smash the burger which gives it like a more of a char on both sides which is better for them too because it's less meat well i i think it's the same it just gets wider got it okay but you but it tastes better yeah i think okay so they create fast burger and become successful but what a prolific career for this guy and what what what a what a track record like who has dominated their industry the way this man has dominated fast food science right like fast food food science pretty sorry when i googled his name it came up with job foods corporation is he associated with that yeah i don't know what that is he's got like new stuff that he's doing he did like a like a new like like sports bar type of deal he's got smash he was a ceo of smash worker for a while i i don't know what what all he's doing now but they were like you wanna retire he's like retire i wake up every day i i wake up every day i'm trying to dominate the palette you think you think i wanna go play golf like what what do you think this is have you googled him he he's got he's a beautiful man he's just got the most beautiful head of hair up i've seen in a long time he looks like you know like they had a british reporter like who's like covers like sports he looks like that guy in the nineties and every rom come the woman was vying for an editor and chief job at v or something like that that was like it was like well no the he looks like the second character now the second character is a british yes or california record label executive so they work in ar or they're running the label and they miss the kids baseball game because they have to check out this band right and like he he looks like that character he looks like the record label executive from every nineties rom movie is he like this alpha like get after a type of guy or is he like a cookie forgetful for professor who wears two not matching socks okay that i don't know but he's an alpha in my mind he's an alpha to me i'm gladly abandoned it to him this gets amazing did i tell you by the way if we packed in the day when i was in my sushi restaurant chain we went to a you don't like these industry conferences that you like you just sometimes like you know we went to farm con it's like a farmer's conference well i went to like a food version of this i don't know if you've ever been any of these quirky like industry trade show conferences but they're so funny dude so i like i i went to inbound the inbound the hubspot inbound marketing conference don't next week yeah you'd be like that well there's a whole talk on converting m sql to sql yeah it's like that so i went to this thing because there's a qs r magazine quick service restaurant so there's a christmas and we we apply we're like hey we really wanna go to the conference can you give us free tickets so they're like yeah so we go and you know what the ice breaker was we got there and the ice breaker with you come in in the lobby they have three tables set up of just like dirty dishes like it's a a a restaurant table and it was a speed bus competition so you would go with three other people and you'd have to try to like bus the table as fast as you can and whoever had like that's pretty good the best bus was you know like succeeded basically there like one that one the contest got like a a key chain or something like that it it was amazing the guy who organized his name was literally tom hamburger it it was unreal dude this is this is i've we've done seven hundred and fifty plus i think episodes of m and this happens a lot where a lot of people don't realize this but for the majority of episodes you and i don't talk in advance because we like to like surprise each other on air on the topic this is funny what you're saying is very similar to the topic that i brought okay what you got and so this can all actually be related and i have by think could be like a nice little bullet at the end to like how this could be good for entrepreneurs or business owners listening i found a photo of a billboard that i saw recently that stopped me in my tracks and so i want you to look at this billboard and tell me what it says i okay so this is boiled cod and it's a picture of cod slightly more protein per calorie than our bars david the david bar okay have you been good have you seen this no amazing okay so i wanna tell you a story about this he's and i wanna explain a little bit like nerdy marketing about why it works so the story behind this we had peter ra on the podcast i think like six months ago so peter was the guy who started rx bar in his mom's basement and he eventually sold it for something like six hundred fifty million dollars only six years after after starting by the way the episode he did with us was awesome like if you if you wanna if let's go and listen to phone episode listen to that one it basically he tells a story of how he built rx bar howie we building david bar but also he had like four or five other ideas of like if i was gonna go into a category this is the type of category i look at and how i would attack it which is like what you always want from a an entrepreneur who who's got like expertise that comes on the pods it's like great tell me how you did it tell me what you're doing now but okay that's great for you what about for me and do you have specific ideas and like a specific approach you take that i can learn from for like white space right now and he actually had a a a third part of that which was he had a beautiful attitude but and not beautiful in the sense of fun to be around like he was sort of like napoleon like he had this like conquer the world energy that i thought was like actually kind of cool very intense energy yeah that i thought was interesting and so when he came on he told us the story of rx bar he told us a story about david protein bars i don't think david had launched at that point but the background behind david is when he was and i i have to give a shout out to new times daily i'm i'm using them as a source for this but when he started david the idea was with rx bar it was a natural bar it was made out i think dates and it had a very small amount of protein and he noticed that it had i had more protein in this bar i think i would have been able to approach a larger market and i could create something a lot bigger and so david finds this thing called ep g it's a delivery mechanism for protein and eventually david actually the company has bought the company that owns the patent for ep g and ep g is a type of chemical that allows protein to be delivered to you faster so so let me explain let me just ask this question because it the dog here says it's a modified fat called ep g which delivers the texture of fat but it passes through your body with ninety two percent fewer calories is this remember when palmer lucky came on and he was like diet coke is amazing and he's like i just wanted to make like diet coke for like any food into the equivalent of diet coke so she's like food that tastes really good but it basically just passes straight through your body it can't be absorbed and therefore like doesn't make you fat is that what this is basically it's like something of it tastes good you could put it in a bar but because it can't be absorbed by your body it's you know it it doesn't have the sort of caloric impact is that what it is so basically it's the it's it's it's one of the most efficient ways to get tons and tons of protein into your body per calorie and the way they do that is be via ep g which is a incredibly ultra processed food so i don't know if it's what you're describing but the criticisms for david of which we had just mayors on the podcast he's one he was a very loud vocal critic of this he has basically said david may get you lots and lots of protein but it's incredibly ultra processed and there's the argument as to why that's not good because this this this chemical or wherever you wanna call it ep g there's a lot of people who who wanna criticize it and say it's bad and i'm not gonna place judgment me on either side i'm just telling you there's two sides of this argument which is what i'm gonna get to but people loved it and so david which i think is it even two years old yet i think it's one year old roughly because he was on about a year ago on the podcast and i think it was like just about to launch or had just launched so this year they're gonna do close to two hundred million dollars in sales in roughly the second year of business they're they're on they're on a tear they did a million dollars in the first week of sales and if you go to like any store right now i don't know what it's like in california but any store in new york they're everywhere david protein bars are everywhere and they've crushed it on the marketing in particular they've crushed it on the product side but they've really killed it on the marketing and so when i saw this sign boyle it stopped me in my tracks and the reason it stopped me my tracks is i'm reading this book i'm reread we had tim ferris on the podcast and he had mentioned this book that he loved was called the twenty two immutable laws of marketing yeah have you ever have you ever read of that i haven't i have it but haven't read it yet it was one of these things where like i skimmed before when i was younger but when we had him on i he made a comment that it was a great book and i was you know i should actually sit down and read that it's really short it's only a hundred pages you could basically read it in one or two settings and one of the laws is called the law of the opposite and the reason why this is relevant to the story that you just said is because it goes to like the science and the methodology behind in twenty two different ways to stand out and be different and you focus on something that's not better but different and so the law of the opposite states that if you're not the leader of a category your strategy is then dictated by the leader which means it's best to not to be better than the leader but to be the opposite customers already have the leader's position locked in their mind and you win by framing yourself as an alternative and the key is to embrace the differences and often extra exaggerate them and the reason this all works is marketing is a battle of perceptions not products the challenger doesn't need to disprove the leader they need to define themselves as the antidote meaning we are not them were the other choice right and so why is this so interesting because david took the criticisms of them being an ultra processed food and they ran towards the fire so much so that on their website i thought that this was a joke and so what they're doing is they are positioning themselves as an alternative to natural foods they're saying yeah natural frozen cod better that's the best that's it's definitely the best but like it's disgusting who the hell wants to eat that eat this other thing that tastes good and it's like it's just a little bit less good in terms of protein per calorie but you're actually going to be able to consume it they're actually selling so that's not gonna say pod if you go to their website they sell it they're selling it and so this is a masterclass on how to handle this situation by the way on the site it's their cod sold their wild got cod and it's like twenty three grams of protein hundred calories of no sugar you can get it it's four filet flash frozen and add to cart and then there's all their bars like chocolate chip cookie dough peanut butter chunk all sold out said here it's all this sold out bars here's cod fully available and we got a lot of this stuff still stock and there's a bunch of examples of the law of opposites do you remember i don't know if you remember this as a kid but you would see commercials for avi do you remember avi yeah the rental car yeah so basically avi was the number two in the market and hertz was the biggest company by far and avi had this amazing brand campaign where they said word number two so we try harder and that was their that was their campaign which is like we know over number two we're gonna try harder that's another example of the law of opposite but david has executed this flawlessly and this like an amazing thing to lean into and this is like not something that like dude i'm just kicking myself because what he came on i literally fell in love with the guy i was like i love this guy's in tent intensity love this guy's honesty love approach it's clearly like an expert in this field in this industry and attacking this it was so obvious that the they had nailed the branding and packaging of the bar so i'm just mad that i didn't push to like try to invest in this thing and be like hey i just i'm so bullish on this and then it has played out exactly i i as that would have guessed i think you go i i think we said what's your goal he goes well i actually think we're gonna expand the tam and i think that there's gonna be a ten billion dollar company yeah that's crazy on i like their copy on other site we thank our predecessor and the protein industry we'll take it from here it's so good right they they they nail it on on branding they nailed a bunch of stuff and i saw it when i saw this cod billboard i was like oh that's that's so good that's exactly what the book twenty two immutable laws of marketing that's exactly what they had mentioned with a law of opposites and they completely nailed it and if you are a small business owner very similar to what this guy tom ryan i would highly recommend reading this book and then downloading it and uploads a chat gb it's so cool and interesting to give you ideas on your product or and or your positioning and what what what he just was explaining about with like with the mc riddle and all that stuff it's all very very very similar to this which is it's not the goal is not to be better the goal is to be different because a meat lovers pizza that's not particularly better it's just that's remarkably different than anything else listen up the old playbook is slowing you down ai broke the funnel loop marketing fixes it it's a new era for marketers ai is capturing search traffic channels are fragmented and generating leads feels less predictable than ever before hubspot loop marketing playbook will guide you through this unprecedented disruption it's the system your marketing teams should use to move faster connect deeper and gross smarter the modern growth playbook for the ai era built by hubspot design for today's marketer get the loop marketing playbook at hubspot dot com slash loop dash marketing to find out more and leave your competition behind alright back to the pod alright let's do another topic okay i have a little stock market thing can i do a stock thing yeah any pretty stupid and dangerous because like most likely just gonna get be wrong gonna get ripped part here not entirely so last time we talked about this type of stuff you picked so we're we're all disclosure where idiot it don't do anything we're saying the last time though you picked u and yeah so we did a episode called stock of palo i don't about a year ago i don't know when that was and the idea was mean and say i go research and we just try to pick a stock so if we try to make a call similar to the zone conference we you you just try to find a company that you would believe in as a as an performer and then we made our case and i picked tee pto which is the parent company of u and wwe and you picked what ferrari ferrari for i think i believe we did that episode so february twelve twenty twenty four let's see what the stock price has performed since then okay so the stock at that time was trading at eighty five dollars and it's currently at a hundred and eighty five dollars okay right you know up what what is that over a hundred percent hundred and seventeen percent did you put any of your money into it of course not bro you think i'm here to bake buddy what's going on not because not for any particular reason i was just like lazy i didn't i didn't pay attention so anyways that that pick has performed well i don't think for ferrari done i think far is down like five percent so i'm better than you so let me let me you just stay wife for a minute let me just do this segment here you could give a pick that's bad after this i was hanging up with somebody recently who's a guest he you know as a guest on the podcast super successful like billionaire type of dude and asked him two questions one was what would you be doing right now what would bold be your ai play if you're just like young and broke but like wanted to do something with ai and he have a pretty interesting answer to that which is he's like i would go into he's like i go find a business owner who's built a successful book of business like let's say it's in insurance or home mortgages or you know some some some nice industry some juicy industry and like the owner kinda nose like oh ai probably could benefit like i i could probably benefit from ai in my company but who comes two sixty but i'm sixty i'm too old to like actually figure this stuff out and don't to he's like i would go to them i don't as many of those guys i can i try to build up a police instrument and be like hey i will do all of the work to use ai to cut our costs internally like i can automate a bunch of processes and jobs and whatnot like i can increase our accuracy and decrease our costs and if i do that like can i carve key basically when you carve me out ten percent of this business if i successfully do it i'll do it totally on contingency but like here's the deal and we can like measure the op x change that i'm gonna make in this business if you just give me free reign for you know twelve months please like it's the fastest way to kinda like own a piece he's like he's you know and then i would try to in that agreement maybe create an option to buy the majority of the business at a fair value if i can pull that off so he's like i thought i was saying this the first thing second thing he was talking about he goes he's like yeah he's like spacex he's like i think it's unbelievable that people will and that there's any counter argument to spacex he's like spacex is the most def defensive company in the history of humanity like what's the second best spacex like is there anybody you you like there's there's so few companies that can even compete with spacex and think about how monumental difficult it would be to compete with spacex like yeah you gotta literally get into the rocket business and like not just the rocket business the reusable rocket business not only that but to do it and like be compete you know competing for these giant government contracts and you have to you know successfully demonstrate you know safe launches over a period of time he's like at this point spacex is so unbelievably def defensive he's like i think it's the safest place to put money and so i thought that was kind of interesting just like generational def def ability and really the question of like who is set up over the next twenty years who just has an incredibly competitive position for the next twenty years so i just took that frame and none none of these names are unpopular so i'm not giving you some like a obscure pick but i just like this is my honest take like i you know i'm basically trying to get into all of these companies because i think over a twenty year period i think all these companies have a very combination of they have a tailwind behind them so the wind is in their sales of they're in the right place at the right time like clearly the industry they're in and the tech wave that they're surfing is the big tech wave that we're gonna see play out over twenty years and two they don't have much competition which was my case for the for the the tk stock pick also because i was like there's no competition to u and there's no competition to wwe like the number two m mma you know promotions whether it's p like bell like these were companies there's literally on the brink on the brink of bankruptcy and like they're they're like not just like in second place they're literally like one hundred or one thousand times smaller and behind and they and because of that network effect they have no chance to ever catch up u is tens of billions of hell company and the second best one like they get in trouble for not being able to like make payroll literally it's like the rich guy's hobby typically like is close like the it's like it's like it's like lebron versus the freshman the freshman tea still even in the same category and so when you're in a category of one it's like that's a pretty big deal plus you have growth behind you but like the fact that there's just no competition same thing with w there's really no competition to w and of course since then they both signed major major like streaming deals way bigger than you know people thought they would sign like billion dollar a year plus streaming deals but what's this have to do with the first part of ai oh the ai part that was separate alright out so here's here's five other companies i think are extremely well positioned so the first is a company that i've been i i was wrong about i own the stock very early on and i got so mad during the games thing that i sold out of principal but i'm never gonna let those stupid principles in my way are a bad way they're the though they give you bad directions kept like en route to making money yeah my my big moral stand didn't seem to hurt this company so robin and who was the company i owed the stock when he was like i don't know five dollars seven dollars whatever it was like really early on like right and ipo basically and it was like actually after ipo to kinda dipped or something and when the games stop happened and they basically shut off the ability to buy but continue to let people sell games i was like that is the most corrupt thing i've ever seen same and i it pissed me off so much that i was like if these guys i don't know trust these guys i'm out since then they've just basically proceeded to like build what's clearly like morgan stanley for the next generation so like the tailwind behind robinhood hood is the following there's some like absurd amount of wealth i don't know what it is like twenty trillion fifty trillion there's like some stupid number like with the trillion behind it of wealth that's just gonna get transferred from like the parent you know boomers to millennials or gen z over the next twenty thirty years and so the question is as that money gets handed down what will those people do with it and it's pretty clear that like if you're a j z or your millennial the platforms you trust and gravitate towards the financial platforms you're already a user of when you have small check deposits is robinhood and that and then they're like great we have crypto we have four one k's have home mortgages and we got credit cards like what else do you want wait they do they they do all those they have prediction markets which which is a code word for sports betting and gambling so you can gamble on there you can buy crypto on there you can buy stocks now there you can buy fractional stocks of private companies you could buy hey you could do all the margin training and options trading if you're you don't wanna get really degenerate you can do you're free you could put it four you can open it before on k with them you can get a robinhood hood gold card and you can use that as your credit card and you get a home mortgage it's like an amount of financial products that they've rolled out all in one app and it's basically this financial super app that gen z slash millennials are most comfortable with and as the wealth transfer happens they're gonna be the beneficiary of that so i think next twenty years they're extremely well positioned so austin raf of the founder morning brew one of my closest buddies he has been texting me for the past six months maybe longer to be honest longer he's been texting to me too about this in fact he's the only reason i bought it so i did buy it back again like maybe six months ago i had i was about to have a call with him and he had been talking about around it but he's kicking himself because he doesn't own any but he's been it was like his call he was like it's gonna be great i'm just waiting for a dip the dip never came and he he doesn't own any of it and it's basically ripped up like in a five x seven x since he's been like wanting to buy yeah he's been talking about a all of so before the call i bought a hundred thousand dollars robinhood stock just so i can get on the call as a robinhood shareholder ed be like oh thank you for the tip and since then it's up on thirty forty percent also it's a he's responsible for my robinhood conviction even though he doesn't own any of it now yeah and i think his reasoning i forget what it was exactly or he had more than one point but one of the points was like young people and he owns a company called or he did own morning brew which probably had two hundred employees which a lot of them were like twenty three year old like hundred thousand hundred fifty thousand dollar earning people and he was like my staff that's the the default they all have one hundred percent of their net worth in robinhood right and that is only going to continue to grow so they because they keep their money in there it's just gonna keep on growing this is this company is unstoppable and he's been bragging about it or calling that for for maybe a year and a half and so he's absolutely nailed it i and i agree with you i did not buy into that argument at all i thought robin hood was silly i would i thought on principal i'm not on board with the what these guys did more of like a schwab type of guy i feel like you you want you know when when it comes to money you want boring you want like a bow tie you want like you know got a man with a brief briefcase is what you want you know the i i i potentially have a lot of money and i didn't wanna keep it in now like they think that i'm keeping it an app was like kind of let's alone nerve wracking and like the interface is so cute that i thought it was like but they cared more about luxe i was like i want the ugliest website that's got the biggest vault you didn't wanna keep it in an app as if it's like a shoe box like where where do you think the money's kept in any of these like if it was a website that's better but what did you want i wanted to like forgot password button to be like hidden like i didn't want someone to like i don't know i just it was too friendly yeah if it's too user friendly to me that means it's easily hack yeah that was the issue that it was too good you know it's like you find good deals on craigslist because you're you're finding something like interesting that no one else uses robinhood had scared me honestly obviously i i actually get what you're talking about i i actually felt similar i was like i wanna keep huge amounts of money of this app but i did keep i i had some money i think i bought like crypto on it before and i like they for years they did this thing where instead of giving you like uber for your new ride if you referred someone to a new ride they give you ten dollars robinhood hood had this amazing thing where you could like do a scratch off if you could pick option one two or three which obviously it's not actually one two three is all the same and they would give you stock and so like i owned like dollars of stock yeah i owned like ten dollars a ford and that is now worth more because i did this like you know right when they launched and so i like robinhood though as a company i just googled that is it true did they do one point one billion dollars of profit on three billion in revenue yeah basically when interest rates went up all of the like financial service companies started printing money because now all the money that they hold they're able they're able to like and any money that they lend out at high rates but like the money they hold are earning like four or five percent on their float which is like pretty crazy so there they're you they're very interest rate dependent right now by the way the criticism for all of these is that these are is crazy the valuation is crazy look at the fundamentals oh you know tesla you know they need to sell this many crazy amount of cars in order to justify this or like even self driving and have to be like bigger than uber to to just be where it's valued at currently right so like your upside is priced in would be the counter argument and by way i have no argument against that i just think very simply this says i actually served pretty well which is like i told you the story like in twenty ten i just kinda like oh like these internet companies seem to be like pretty dominant everybody uses it them every them let me get some of that that's the i like i don't really know how to do a discounted of cash flow you know i can't really tell you much about that about the pe ratios and like any of that stuff but like i don't know this interesting these that toothpaste is not going back in the bottle and so like similarly and it's like pretty obvious obvious a set with some of these is like yeah yeah like i like that partners that's the name of your let's save of your firm i like that running my company hampton it gives me the chance to meet with hundreds of different businesses and i'm always surprised by how many of them still use spreadsheets emails and clunky tools that do not talk to each other it's like watching someone build a house with duct tape so here's my take custom software that actually fits your needs isn't just convenient it's a competitive advantage should transform the way you do business and that's why you need to know about a no code platform called bubble with bubble you can build powerful web and mobile apps by literally dragging and dropping different elements out of the screen no coding required by the way i use bubble on a ton of different apps including hampton and if you want help building something complex on bubble you have to bring in zero code they're the top bubble agency out there and literally the biggest plugging creator for the platform they can build anything custom portals saas products and they do it about ten times faster and cheaper than traditional development zero code is also all about ai business automation transforming manual and slow processes into efficient automated ones so stop cobb together different tools and solutions and head to zero code dot com that's zero code as in the word zero and then code q o d e again code is with a q and tell them that sam sent you alright what's the next one let me just run through a couple of coinbase base is basically the same case except what they have is coinbase has nine product lines that do over a hundred million dollars of revenue each i thought that's a stunning stunning statement i can't believe how many different ways that they make a lot of money i think crypto basically it's like i'm bullish on bitcoin in general and crypto and if you're bullish on crypto the the most trusted exchange that basically everybody that takes a fee on everybody's interest everybody's enthusiasm around crypto they take a fee of everybody and every cell like that's a business gonna do very well and also like as now like the government's government's pro crypto they're buying crypto there's etfs it's in people's retirement accounts like same thing can't can't put the toothpaste back to the bottle and that and that's ceos an animal he's an manual and so i just think they're they're extremely you know well positioned similarly for for you know the future when it when it ipo i never do this i've only done this two or three times or something like that i bought you you jumped up and clap i i i click the heels right after i purchased like a hundred grand worth of stock and i just looked at my i just looked at it i i just made the money back now that it's like auto auto of there looks like i've i'm i'm even now after i think four years or three years alright the other two again this is this is so clear i i almost didn't even wanna do this segment but i do believe in this so like it it's not you to me because i don't follow all the this stuff so i think a lot of people won't find it totally cliche yeah okay alright well unfortunately the youtube comments aren't aren't as as forgiving and and kind as you are alright so tesla and the next one which is basically if you think about one of the next big industries to get unlocked a combination of self driving cars it's gonna change the world and then the robots now the timescale scale is obviously the question here but again i'm taking if you take a twenty year outlook nobody's better positioned to do self driving cars and robots than tesla so and then i also think by the way he's gonna end up merging x ai with tesla like he's gonna he's gonna put it all together i don't understand that i don't get that i don't get that combo why would go together well basically and one is an ai lab and then all the although the future of tesla is as an ai company and if he's able till basically like financially engineer his way into owning more tesla by by having tesla by x ai like he's also like dumped this before it's solar city where he like bail out his own companies in in a way right i guess i get that the way how twitter has basically become ai which is then a tesla thing that's a wild journey that that's the wild part i wouldn't own any i don't wanna own any stock that of that elon controls because he's a crazy person and i don't mind being i don't mind him being crazy what i mind is like when he tweet something the stock changes or and so i'm like what if he gets shot which is definitely not unreasonable like there has to be like a one percent chance that he gets assassinated or a one percent chance that he dies doing something reckless yeah there's crazy demand risk with him yeah it's too crazy like when he tweeted that trump was a what pe file what did it go up or down like did it move get went down that what i got is but i i but yeah i don't have the stomach for that the stock trades in completely crazy ways in the short term like don't be like oh we missed delivery estimates by a lot my bad and the stocks like up ten percent it's like what the ones going on here it's weird bad tesla too weird for me yeah i'm i'm too old school for that but i do i i understand the argument i mean again the idea is like we're gonna have robots doing human labor once you if you if you disagree with that then you're wrong and we disagree but if you realize that robots are gonna do human labor and the human labor is the biggest market in the world is the market for human human labor then the company that makes the robots that do the human labor is gonna sell more it's gonna be like the iphone the iphone was like this product that everybody in the world bought that you know sells billions of billions and billions of units as soon as they have robots i can actually do functional work they're gonna sell billions and billions there's gonna be more robots than humans because why would you not be yeah give me give me five of those guys to be doing shit around my my backyard my factory my warehouse my whatever right like as soon as people as soon as that exists no then the question is do you believe it will exist do believe that that tesla can pull it off yes the the end the it's definitely worth betting that they will so you once you go down the logic train of like the biggest market of the world's human labor we now have the technology wave happening where robots will be able to do that human labor and that if you had that what would be the demand for that okay pretty much the biggest demand we've ever seen for anything ever okay great so let's go to the next one who is gonna be able to you know who's gonna be able to do who's well positioned to do tesla okay you see you go down that chain that you realize like okay they're pretty well positioned it's just hard because so i have a friend that joined open ai in i forget the exactly what year but at the time i think they worth thirty billion dollars and he was debating he's like should i do this should i not do this and he said we also have the same thing which was wow thirty billion dollars that's a lot of money is there any upside to this well he joined i believe he's has made about thirty million dollars and as of now the stock that he was granted back then it is grant it is now worth ten million a year so every vest it's something like ten million dollars right and he sold a little bit to to where he's good but we were talking today and we were like this could definitely ten x again like your grants could be one hundred million dollars a year and that's that's it's very hard to like overcome that that to get to that conclusion just because not logic because of emotion you know what i mean totally the smartest investors i know and the reason why i think there's merit to just having a very like simple simple model of investing is for most of the like i guess if i look back in the last ten years i look back a couple of smartest investors i know they always had like a very like two sentence su two sentence level of conviction and they sort of pointed out there they're like hey like all you needed to do was btc and chill like all you needed to do was bitcoin and chill right you know when we sold to amazon and we got in our amazon grant and it was like okay you own this much amazon stock now guess what i did all these side projects i did all this other shit during the meantime i like try like work got up every day and went to work all i needed to do was amazon chile like if you get a big enough lump sum you just can let things compound and so like one of my friend zach has this this phrase basically every year there's one investment that's sort of like the power law like you know windows zen happened he was like oh i think i just need to own the companies that are like the the oz epic companies things and he's like yep like that was the only thing that you needed to do lo epic was the investment theme of the year you just had to recognize it and you had to take action on it it didn't take a look a literal genius to do it right you didn't have to predict epic you didn't have to like be me deep in clinical trials six years ago like even if it just like after it happened you just had to like understand what was actually happening and buy and hold and like that was what you needed to do and every he basically has a list of every year what's the one thing that matter what was the one deal said i think he said one year was like only fans yeah one year he was like it's only fans this year and i was only fans what this was like before it was this was actually i think in in twenty nineteen we talked about it he talked sold and we sold a twitch and he texted me and he was like only thing i believe is gonna make more money than twitch i go broke twitch is making like and i shared him with you know i was like twitch is making a lot of money he's was like i said what i said everything else is noise for me this year i just need to figure out if i can get into the did he get it yeah he did and so you know he's you know but i i just really respect that level of thinking and that that type thing in fact one of my friends who's like this he came to he came over my house and he goes take two don't take what would it take two let's take two do your friends talk really strangely though i like this no connecting words it's not like it's it's it was a kramer you just knocked on the door that take two i ask him i'm like what's the thing right now because he he was the one early on was just like you need to have one hundred percent of your net worth in bitcoin and he was just like every day he would just tell me and he would just tell me this every day this is twenty fourteen twenty fifteen twenty sixteen every day he just tell me the same thing and he would tell me exactly why and he would write it he wrote it down for me and he he just kept doing it and because of my own more bitcoin than i would have otherwise so i you know i didn't listen to didn't do a hundred percent but i i i didn't listen to him he was basically making a case why the company that makes grand theft auto he's like grand theft auto is coming with the gta six is coming out and when it comes out is it right now the stock is a little depressed because it's the game's has been delayed for like multiple years he's like the game is gonna come out and when the game comes out it's gonna be the biggest selling game ever there's no competition he could and he's like he uses all these economics where like you know some word for like there are no substitutes like there's no substitute for gta yeah he was using words like elastic elastic or something exactly so he's like rubber made there's stocks bra he's like you know a great investment has these like six properties and like you know here's the six properties and and i'm like and grand theft auto fits all those he's like yes and so that's like you know his big he said this what he was saying a year ago it's already up like thirty percent or something since he told me this and he would you to and whatever there's more to that story i well i like i can't share here but like it's that type of thinking that's like i don't know it's very very attractive to be i'm i fall i i get introduced by that level at that type of thinking very easily and obviously i'm cherry picking like you know things that worked i'm sure there's if i really thought about it i'm sure i have a bunch of smart friends who you know fell in love with random single securities that didn't didn't do anything i'm i'm not saying this is like a full proof thing dude when you whenever we talk about i like i i started thinking i would be like the warren thing i'm like well i don't understand someone i'm gonna stick to that thing is really novel way of saying like you know whatever i'm i'm i'm not doing it and then i started thinking about this recently where i was like well it's been eight years maybe i should learn about it maybe that circle incompetence needs to expand a little bit i'm like and so like six months ago i went and bought a book on it and like started reading it i was like oh yeah yeah yeah i wish i would have read this a long time this spoke was published like years ago what am i doing that's right like well i don't know it i don't understand it so i'm not the to do it but that's been years yeah i don't i should have read ways sooner what's the fourth company open eyes is one of them but i think that's the most controversial one because i think great they you know there's so much competition who knows and i just was thinking like who else is uniquely positioned on a twenty year timescale scale where they have the winds of technology behind their back so they're they're in the right space where like clearly they're they're sitting in the lane where the the the the highest velocity of like you know of of change in in and sort of upside is but then also that they have a unique def well they will actually capture it i basic spaces is uniquely def i think coinbase is uniquely defense def i think tesla's is uniquely def none of these things are like you know completely full foolproof not of course like you know there's there there are competitors i'm not saying that but i just think like on the sliding scale of def it's very very hard to compete with any of those companies because they've built up these durable durable modes right like whether it's regular regulatory modes whether it's brand whether it's network effect whether it's like harp you know hard technical you know technical things that are you know take years for other people to catch up to but then by then they're on the next generation do not wanna like this is total like the bro signs of financial investing but i don't look into like i don't really read about the fundamentals of certain companies and the only few times that i've bought an individual stock it's been mostly because the founder the entrepreneur behind it and so when we hung out with mario the guy who started oscar health he like explained a little little bit about oscar and i was like okay it's a health insurance company but i i don't really know anything else but like you you're really inspiring and so i bought a little bit of that and then the first one was atlas i read an article about atlas and their office i don't know if you remember this but my office was at where was it it was in soma and their office was like on the street of my of my office the hustle and i used to like look in their office and i was like wow i love the interior design of your office and i read a a little bit about the founders and they seemed really smart and i bought i think a thousand dollars worth of it because i didn't have any money i think it turned into fifty fifty gram i think like fifty x and it was and so both of the times that they have made money it's literally just been because the founder was interesting to me total bro science no i don't even know what it atlas does to this day like i i i i they make software but i i don't know what software i don't know what got australian software i think yeah yeah like the the they they they say words like schedule instead of schedule i'm like like you know it's a scheduler i don't know what a schedule is but it's been like that's kind of been like an interesting way it just seems like someone has will something into existence and the cool factor so for example talent here i'm pretty sure they're trading at like two hundred times yeah revenue revenue or something like that and i have to imagine there's gonna be some research on what the alex corp like cool factor adds to that multiple yeah these become cults like there's enough like there's enough sort of like retail energy now where these things would become cults cult like right now they're trying to make it happen for open door i don't know if you paid attention this i have i have i've seen open door i don't understand why there's what's who's the cult leader behind it like what why do people care about door comp and it's like this guy eric jackson and others i mean i don't know i'm i'm not too far it i i stay away from the like the you know everybody's got their the their their vice but meme stocks is not not one that that does for me so like fortunately i don't get sucked into that so your buddy was like i should just pick one stock and go in if there's one skill set that you should go all in honestly like i learned it a little bit with her mo and we've seen it time and time again but like becoming a very charismatic person that knows how to talk to the masses is obviously the answer that's the skills that you have to learn like manipulation ask go everything else just learn that i think rob the bank who you had on a while ago he like talked about some book he's like i don't even wanna say the name of this book he like tee up perfectly and i think you did i i think you did the same he's like there's just one book on how to manipulate people i don't even wanna say the name it's just too powerful and i don't want the price to go up the dark do you remember what he said that maybe maybe i don't well like like you said it on our podcast or somewhere else yes and or maybe he said it on and i started following him after you had him on and he said something like that and went and reddit it and i'm like yeah you're right this is like the this is like the skill that everyone should learn screw products screw be inspired what is i wanna to know now i'm not gonna say we're gonna you get it to me i'll tell you after no but i don't even mean robert greene they say this about his right forty eight laws of power like i think one of the like marketing s which i don't know if he completely made up or is of true and then he used it to like temp to market his book but it was this book is banned from prisons it's because because they don't want the prisons to like the prisoners to be able to like over overtake pretty powerful so powerful that it's banned prisons is just perfect marketing yeah you know that's that's like the cod level marketing and i i have it somewhere on my good reads that i'll say that i'll that i'll find it but it it's i know you remember the title i'm being honest but it like so you think i should go all in on on charles isolation or what yeah i mean you're we're kinda we kinda do that do it already yeah should sort like i'm just saying like go all in yeah it just be better just do what you're doing now but better is that it is that the pod yeah bit i feel like i could rude where to i know i could be what i want to from at all in it like a days off on a travel never looking back alright let's take a quick break because as you know we are on the hubspot podcast network but we're not the only ones there's other podcast podcasts on this network too and maybe you liked them maybe you should check them out one of them that wanna draw your attention to is called nudge by phil ag and whether you're a marketer or a salesperson and you're looking for the small changes you could make the new habits you could do the the small decisions you could make that will make a big difference that's what that podcast is all about check it out it's called nudge and you can get it wherever you get your podcast