Good reminder to structure all your relationships with āskin in the gameā. If youāre 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 partnershipsā¦
I started investing in 2009 right after the economy collapsed. My simple bet was that Bank of America wasnāt going to go out of business. This investment turned $500 into $5,000+ which was a lot of money for me back then (letās 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, Iād like to call out a concept that youāll hear me repeat:
You canāt 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 arenāt 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:
āIām bad at operations, and prefer to float at 30,000 feet and have other people manage operationsā.
Most people you meet will tell you āwork on your weaknessā
I disagree.
My guidance is: try a variety of things in your career, but then quickly separate your skills into two sections: āyour zone of geniusā and āzone of weaknessā.
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 itās a coding Bootcamp he owns.
Why?
Itās 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 youāre 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)ā¦
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~ Sieva
ps: hit reply and let me know your favorite tweet!
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