Good reminder to structure all your relationships with âskin in the gameâ. If youâre in a deal with someone who has a lot of upside in the deal, but no downside, find a way to ensure they have skin in the game.
This has done wonders for our partnershipsâŚ
I started investing in 2009 right after the economy collapsed. My simple bet was that Bank of America wasnât going to go out of business. This investment turned $500 into $5,000+ which was a lot of money for me back then (letâs be honest, I got lucky).
More importantly, it turned my attention to the power of investing and piqued my curiosity which led to a career as an investor.
Start early, and let your money work for you.
This is one of the best tweet storms of all time.
In particular, Iâd like to call out a concept that youâll hear me repeat:
You canât get wealthy through income alone. You need to own assets and equity. Find a way to make money while you sleep.
BONUS - Podcast Interview with Michael Girdley
There arenât a lot of other Holding Company leaders out there. I find Michael to be a clear thinking, highly intentional leader.
Your Zone of Genius:
Michael is self-aware of his limitations. When asked what operational improvements he implemented in his fireworks business, he replies:
âIâm bad at operations, and prefer to float at 30,000 feet and have other people manage operationsâ.
Most people you meet will tell you âwork on your weaknessâ
I disagree.
My guidance is: try a variety of things in your career, but then quickly separate your skills into two sections: âyour zone of geniusâ and âzone of weaknessâ.
Delegate everything in your zone of weakness, and double down on your zone of genius.
On Asset Light Businesses
When asked about his favorite business, Michael replies that itâs a coding Bootcamp he owns.
Why?
Itâs asset-light, easily scalable, and fully remote.
Asset-light means: to grow revenues you do not need to buy expensive assets.
The opposite of asset-light is a Forklift Rental company.
To grow your revenues renting out Forklifts, you need to buy more expensive forklifts which eats your cash.
If youâre in pursuit of cash flow, owning asset-light businesses is your goal.
Other examples of asset-light companies: media companies, courses, consulting, agencies, and many home service businesses (like plumbing)âŚ
If you enjoy this newsletter, âď¸join my referral programâď¸. Youâll get cool free gifts for referring your friend.
~ Sieva
ps: hit reply and let me know your favorite tweet!
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