Speaker 1: You're listening to Comedy Central.
Speaker 2: My guest tonight is a Shark Tank investor and a
Speaker 2: venture capitalists. Please welcome Kevin O'Leary. Nice to see you
Speaker 2: you too, Thank you for coming on the show. You
Speaker 2: don't want to say this first and foremost. I always
Speaker 2: give people their flowers, so I want to say me
Speaker 2: and my dad love you on Shark Tank.
Speaker 3: Appreciate Kirk.
Speaker 2: Yes, Shark Tank is one of those shows a family
Speaker 2: can sit down, we can watch it together, we can coseplayers,
Speaker 2: entrepreneurs and vicariously live through a fun piece of unscripted
Speaker 2: semi reality content. So thank you for giving us that.
Speaker 2: It's fourteen seasons, right, fourteen Okay.
Speaker 4: But the truth is we don't script anything because we
Speaker 4: see them the same time you do. We had no
Speaker 4: idea it splow blow up this way. I mean, it's
Speaker 4: a remarkable platform, yes, and it supports American entrepreneurship.
Speaker 3: What's wrong with that?
Speaker 1: It's amazing. Now you have been making your rounds.
Speaker 2: We were speaking backstage just to give everyone context. Obviously
Speaker 2: we're talking about Crypto FTX. You've been making the rounds,
Speaker 2: testifying before Congress, going on squat Box seventy eight times,
Speaker 2: and everybody's asking you about, you know, your endorsement of FTX,
Speaker 2: the fifteen million dollar bag, but nobody's asking you how
Speaker 2: you doing.
Speaker 1: How are you feeling?
Speaker 4: Well, let's just get the numbers, right. It was eighteen million,
Speaker 4: eighteen and it's all gone. And I get it, But
Speaker 4: you've got to understand something about venture investing. FTX was
Speaker 4: nothing but a startup. Okay, basically eighteen months old, that's it.
Speaker 2: And can you can you take me through the relationship
Speaker 2: timeline of you and electrocuted?
Speaker 1: How long had you got? We can run it? I
Speaker 1: told you.
Speaker 2: I was like, let's let's do because just for context,
Speaker 2: at first, you've been on squadbox, You've been on programs
Speaker 2: and you're like, bitcoin is dog shit, this is awful.
Speaker 1: I'm paraphrasing. Yeah, I think I did say I did say.
Speaker 4: That because at that time the regulator was very, very negative. Yes,
Speaker 4: and then countries like Canada, Switzerland, United Ed, and Struggle
Speaker 4: in Australia they opened up. And if you're an investor
Speaker 4: that like me, I invested internationally, I started to allocate.
Speaker 2: To it, right, and then you start thinking, you go, look,
Speaker 2: you know, SBF, it's starting to open up internationally is
Speaker 2: becoming more regulated in Switzerland and other countries. And so
Speaker 2: you know clearly this guy who's running this bahaman orgy
Speaker 2: is running a responsible operation. So how did he get
Speaker 2: in your dms? How did he penetrate that heart?
Speaker 4: So obviously at a time in twenty twenty one when
Speaker 4: FTX was out financing doing rounds at a twenty three
Speaker 4: billion valuation, that was the hottest deal on the street.
Speaker 4: If you look at the people that invested in that,
Speaker 4: it's the who's who have ventured.
Speaker 2: Came dude, I was pissed that I wasn't asking And
Speaker 2: when I look at that role and it's like squille O'Neil,
Speaker 2: like Steph Curry, Tom Brady, that's how you know I
Speaker 2: haven't made it.
Speaker 1: Well, let me in, baby, let me get that call.
Speaker 1: Are my agent called me? Maybe you're lucky you didn't
Speaker 1: get that call. Okay, think of it that way. Okay.
Speaker 4: So at the end of the day, when you invest
Speaker 4: in any startup, and this includes FTX and plenty of others.
Speaker 1: Eight out of ten times you lose your money.
Speaker 4: Since nineteen fifty four where they started compiling these stats. Now,
Speaker 4: sometimes it's alleged frauds sometimes bad executions, sometimes bad market,
Speaker 4: sometimes bad product, but forever reason, eight out of ten
Speaker 4: times you lose money. So the people that invest in FTX,
Speaker 4: if people are asking me, well, isn't this going to
Speaker 4: change investing forever?
Speaker 3: No, nothing's going to change.
Speaker 4: Sure, obviously we're gunning for that two times where we
Speaker 4: make a thousand X on our money. The next morning
Speaker 4: after I lost that eighteen million, yes, I was pissed, okay,
Speaker 4: but it didn't change anything about what I do as
Speaker 4: an investor, I get right up and I go at
Speaker 4: it again because I have If every time I had
Speaker 4: a loser investment, I had to go to Congress, I'd
Speaker 4: need an apartment there.
Speaker 1: I mean, we lose a lot of deals, but.
Speaker 4: Every once in a while I get a monster hitting
Speaker 4: It pays for all the mistakes. FTX is in the
Speaker 4: past for me, too bad. I feel sick about it.
Speaker 4: We all look like idiots, but.
Speaker 1: We got to move on.
Speaker 4: We have to fund the next venture. We have to
Speaker 4: fund the next entrepreneur.
Speaker 1: But how did he.
Speaker 2: How did he penetrate? You didn't answer the question how
Speaker 2: did he get? I know, like I got the five
Speaker 2: talking points, but how.
Speaker 1: Did he just how did he slide in the DMS.
Speaker 1: How did he slide in the DMS?
Speaker 2: I know you're recording, this is all good? How did
Speaker 2: he slide in the DMS? Of your heart?
Speaker 1: Come on?
Speaker 4: So the way, because I've gotten the call. I've gotten
Speaker 4: the call two places on this. I was a paid spokesperson, yes, yes,
Speaker 4: but I was also an investor. I took millions of
Speaker 4: dollars and invested them in FTX International and US. So
Speaker 4: I'm getting squeezed in both sides on this point. At
Speaker 4: the end of the day. The way I look at
Speaker 4: it is, Okay, I have an agent. He gets contacted
Speaker 4: and says, look, do you want to be a paid
Speaker 4: spokes with you to this? I said, I'm interested in crypto.
Speaker 4: What do we know about this company? We know that
Speaker 4: it's got the biggest investor list I've ever seen.
Speaker 2: But then you reply all to like Kevin O'Leary all
Speaker 2: agents at CAIA dot com, and you go, I've said
Speaker 2: that this is dog shit reply and then you sent no,
Speaker 2: I didn't, and then they go they go, Kevin Comma enters.
Speaker 1: That's not the way this works.
Speaker 4: Is you going back and say, okay, at one point
Speaker 4: eight billion raised, who's in the rais who did the
Speaker 4: due diligence.
Speaker 3: Plenty of them did.
Speaker 4: And it's the heavy hitters, huge hitters. We all know
Speaker 4: each other in the private equity business. And I said, okay,
Speaker 4: somebody dilded this thing. Yeah, and the parents were compliance
Speaker 4: lawyers out of Stanford. I mean that's pretty good.
Speaker 1: Yeah.
Speaker 4: So at the end of the day, it's a very
Speaker 4: unfortunate outcome, and everybody looks to.
Speaker 2: Because you do do your dute diligence. I've seen you.
Speaker 2: You are a savage. I do on Okay, have you
Speaker 2: seen him when he is on Shark Tank. If someone
Speaker 2: doesn't come correct with the due diligence, you suplex them
Speaker 2: through tables.
Speaker 1: Play it, play it. It's crazy, check us out.
Speaker 4: I looked at the valuation and I say, are you
Speaker 4: guys out of your friggin minds? What stops somebody who
Speaker 4: actually knows how to make sure it's to deliver them
Speaker 4: do this and make a lot of money and crush
Speaker 4: you like the cockroach that you are.
Speaker 1: This is a very bad idea.
Speaker 4: It howls at the moon and you should take it
Speaker 4: out behind the barn and shoot it. Look, I get
Speaker 4: the passion piece, but you know what I'd be crying
Speaker 4: about the fact you're not making a profit. If you
Speaker 4: were in one of my businesses, that mean I would
Speaker 4: spray you down with water. And every time you say
Speaker 4: I don't know, I'd hit you with electric cattle PRODT.
Speaker 1: Oh my god. Now listen, now, listen, don't boot. No,
Speaker 1: don't poo, don't boo, don't pooh, don't poot, don't do that. Kevin. No,
Speaker 1: I'm serious.
Speaker 2: Kevin O'Leary on the show, and he was mad enough
Speaker 2: to come on the show, and we're having a conversation.
Speaker 2: We spoke backstage and we're polite to one another, and
Speaker 2: we're going to be polite.
Speaker 1: So we're not going to do that booming stuff. Isn't that? So? No,
Speaker 1: I mean that, sincerely, Believe me. I can take it. No, no, no,
Speaker 1: I'm not with it. This is about this is about
Speaker 1: doing the due diligence.
Speaker 2: That's what spraying that person down and.
Speaker 1: And buzzing them with the cattle PROD.
Speaker 2: So obviously, obviously SPF and FTX, your boy has lost
Speaker 2: eight billion dollars of investor funds, and clearly from the reports,
Speaker 2: no one did their due diligence. So I'm asking you
Speaker 2: on behalf of the daily show. Will you fly to
Speaker 2: pala Alto where he's on house arrest and spray this
Speaker 2: down and tell them what the cattle prod. Enough of
Speaker 2: the forty appearances, enough with the more minute segments on Squawkbox.
Speaker 2: Let's take a Southwest flight tonight, layover in Chicago.
Speaker 1: It's on me. We land SFO, my dad will pick
Speaker 1: us up and we will go to SBS.
Speaker 4: I think that's a little extreme, Okay, just a little.
Speaker 1: I mean, look, at the end of the day. Think
Speaker 1: about this.
Speaker 2: At the end of the day, a lot of people
Speaker 2: lost money and retail got fleets.
Speaker 1: That's what happened at the end of the day. Okay,
Speaker 1: did Lehman Brothers change anything.
Speaker 4: No Enron, no bear Stearns, no long term capital No,
Speaker 4: there's always going to be the bad actors. Sure, this
Speaker 4: is capitalism. And every once in a while there's a
Speaker 4: bad actor. You just went through a whole you know,
Speaker 4: litany of them, and the system self corrects. If you
Speaker 4: do bad things, shit happens to you, bad shit. And
Speaker 4: I think that's okay, that's our system. The whole idea
Speaker 4: is you can make money without being a fraudster.
Speaker 1: This is a great country. You can be an entrepreneur.
Speaker 4: You can start a company with a great product and become.
Speaker 3: A multi millionaire.
Speaker 4: That's the path that people take ninety nine percent of
Speaker 4: the time, and we should celebrate that.
Speaker 1: Okay, this comes along, you know, alleged fraud.
Speaker 3: Like this, it's going to go through the system.
Speaker 4: Hopefully we're going to get a huge recovery for everybody
Speaker 4: that lost their money. Already, the rumors are where it's
Speaker 4: six out of eight billion, they found that six point
Speaker 4: one billion.
Speaker 3: Who knows what else will be coming.
Speaker 4: I want to help everybody on this situation, but I've
Speaker 4: moved on, and so's everybody else.
Speaker 1: I have a theory, Yeah, I have a theory.
Speaker 2: So in corporate America, I see a lot of urban
Speaker 2: professional elites with LinkedIn accounts here in the crowd tonight.
Speaker 2: In corporate America, they have a thing called CYA cover
Speaker 2: your ass. And I think, mister O'Leary, you're making the
Speaker 2: seventy appearances right now and testifying before Congress to let
Speaker 2: people know, hey, hey, hr something stuff happened. Someone burned
Speaker 2: down the house while mom and dad left. But you
Speaker 2: kind of were a part of the arson to begin with.
Speaker 4: Well, let me correct you on that for a moment. Okay,
Speaker 4: during the period when everybody was trying to get allocation
Speaker 4: to FTX, particularly FTX us hottest deal on the street
Speaker 4: in twenty twenty one, I got countless calls from people saying,
Speaker 4: let me in on your allocation.
Speaker 1: You owe me.
Speaker 4: We've been we've done business together. I said, guys, it's
Speaker 4: a startup. It's a big one. It's a twenty three
Speaker 4: million dollars startup, but it's a startup. If I'm going
Speaker 4: to take this ride, I'll do it with my own dough.
Speaker 4: I'm not going to put anybody else's money into it.
Speaker 4: Nobody lost money on that deal in terms of investing on.
Speaker 3: It, except me.
Speaker 4: So I don't have the problem where I owe somebody,
Speaker 4: you know, an apology for investing beside me. I owe
Speaker 4: everybody and all of us involved owe an apology for
Speaker 4: not knowing it was an alleged fraud. But you know,
Speaker 4: this happens from time to time. But in my mind,
Speaker 4: but I can go to sleep every night knowing that
Speaker 4: it was my money. I lost it. I ate it,
Speaker 4: shame on me, but doesn't change what I do in
Speaker 4: the morning. I'm a very fortunate guy. I can take
Speaker 4: huge hits, and I move on and I keep going.
Speaker 4: That is the essence of entrepreneurship. You're going to get
Speaker 4: kicked to the ground once in a while. This was
Speaker 4: a big kick in the where it hurts, right. As
Speaker 4: somebody said to me, the one I remember the most.
Speaker 4: You know, the economist on CNBC said to me. We
Speaker 4: came out of the green room after I had one
Speaker 4: of those countless presentations on there about it.
Speaker 3: He said, Kevin, eighteen million.
Speaker 1: Dollars, that's a lot of guitars. And he's right, yeah,
Speaker 1: you love guitars.
Speaker 2: He loved guitars just for he's telling a story that's
Speaker 2: not great because you have to set up the premise
Speaker 2: for the punchline.
Speaker 1: This is this is my I love this story. Okay, listen,
Speaker 1: here's what has to happen.
Speaker 2: You have to be able to expose your position when
Speaker 2: you say you lost money. The only way for us
Speaker 2: to truly know is if a forensic accountant comes in.
Speaker 2: I want that, you want, you want the full transparency everybody.
Speaker 1: You don't understand everybody.
Speaker 2: So you got the eighteen mil. Look me and you
Speaker 2: were in Hollywood, not these regular normies. So let's let's
Speaker 2: let's have the big boy talk.
Speaker 1: I want to have the toss. So out of the
Speaker 1: eighteen mil, we'll wait, hang on, let me let me
Speaker 1: get him in on it. So out of the eighteen mil, yo,
Speaker 1: you guys don't know this.
Speaker 2: There's agents, managers, business managers of the irs.
Speaker 1: All of them fight a fika, they say that bye.
Speaker 2: But out of that eighteen mil, my man probably saw
Speaker 2: let's go six to seven. Now that's just straight cash,
Speaker 2: but we don't know. Some of it could be USD,
Speaker 2: some of it could be some of that sweet sweet
Speaker 2: equity position, but we won't know until a forensic accountant
Speaker 2: comes in and want that. I have a hunch, yeah,
Speaker 2: I think you didn't lose a whole lot of the
Speaker 2: shirt off your back, but retail dead.
Speaker 4: All of my money on the comp Just so you
Speaker 4: understand this, by the contract was in an FTX account,
Speaker 4: So eighteen comes in as you correct, about half of
Speaker 4: it pays taxes and agents and the unions and all
Speaker 4: that stuff. The rest goes into the account and on
Speaker 4: Saturday morning, November tenth, it was scraped out along with
Speaker 4: all the trading records. Everybody there, including me, does not
Speaker 4: know where that money is or do they have the
Speaker 4: trading records. Do I want to hire a forensic account Absolutely,
Speaker 4: I've disclosed I had thirty two positions. It wasn't cash,
Speaker 4: it was crypto and all kinds of coins and tokens,
Speaker 4: and so they're all gone and I would like to
Speaker 4: find out where they are.
Speaker 3: So would another million people.
Speaker 1: But it was also house money. That's the key difference.
Speaker 1: How do you say that you're playing off of cake?
Speaker 1: What's coming to you?
Speaker 4: Hey, we're giving you a big it's a million cash
Speaker 4: I put into the equity. Sure, that's not a million cash.
Speaker 1: Definitely cash. I'll give you that. Thank you.
Speaker 2: Okay, So you've lost one you've lost one million USD personal.
Speaker 4: Yes, okay, actually more it was I think one point
Speaker 4: two five million.
Speaker 1: Okay. So the only way we're going to tell you,
Speaker 1: but you're making that heuristic.
Speaker 2: You're making that heuristic based off of that six point
Speaker 2: six to seven million coming in.
Speaker 1: Look, we're gonna do Malcolmomy like it going for a
Speaker 1: lot of things.
Speaker 2: The only way we can really come to the conclusion
Speaker 2: of this is if we do the old rule. When
Speaker 2: you're sexting a partner, I'll show you yours if you
Speaker 2: show me.
Speaker 1: That's the only way. Let's not. We don't need to
Speaker 1: answer around it. Well, it's fine, it's fine.
Speaker 4: It's my whole deal is I've been totally transparent with that.
Speaker 4: The reason I've gone on and talked about it openly
Speaker 4: is I think we can all learn a lesson from this,
Speaker 4: and I'm teaching this case at Harvard. Actually, I think
Speaker 4: there's a lot to learn from it because it's a
Speaker 4: great example of when you do portfolio work, when you
Speaker 4: put big money to work, you've got to know you're
Speaker 4: never safe. You just don't know what's going to happen, right,
Speaker 4: and this case is crazy. We haven't even seen the
Speaker 4: end of this yet. We don't know what's going to happen.
Speaker 4: The records are supposedly backed up on the Amazon servers
Speaker 4: and no one's seen them yet.
Speaker 3: I don't know where that money went.
Speaker 4: I'd like to find out, And that's the same questionitution has.
Speaker 4: I'm one of the only institutions walking around talking about it.
Speaker 4: But so what, it's a horrible outcome, it's a bad investment.
Speaker 4: I've made bad ones in the past, I'm going to
Speaker 4: make bad ones in the future, but I'm pretty good
Speaker 4: at good ones as well.
Speaker 3: So that's the way it works.
Speaker 2: I hear you, and I think there's a detail that
Speaker 2: you need to add to your Harvard class, which is
Speaker 2: and all the other places that you go.
Speaker 1: Bring you with me. Sure, I'll pull up.
Speaker 2: I mean if Kim Kardashian can pull up, pull up.
Speaker 1: Now, let's sen with Kevin.
Speaker 2: Kevin, let me let me just good, I will pull up.
Speaker 2: I will sincerely pull not. Okay, here's the thing. When
Speaker 2: you go on the Daily Show right now, or when
Speaker 2: you go on our friend Aaron ross Orkin's show, right
Speaker 2: when you say eighty percent of these companies fail, that
Speaker 2: is correct.
Speaker 1: And let's say it's even more. Let's say it's a
Speaker 1: ninety eighties. Yeah, that's been around ninety fifty.
Speaker 2: But what you're what you're not accounting for, is you're
Speaker 2: speaking to the upper one percent that can lose that money.
Speaker 2: Everybody else that's listening should probably just put their money
Speaker 2: in ETF, set it aside, go to sleep, wake up
Speaker 2: thirty years later. But but but you're not disclosing that.
Speaker 2: You're not disclosing again once again, your position, how much
Speaker 2: you've been personally paid upfront? I did I told you
Speaker 2: exactly No, No, not about FTX, just in general with
Speaker 2: the myriad of companies that you're.
Speaker 1: Oh, I see do you see what I'm saying? Guess what.
Speaker 3: I'm a capitalist. I'm an investor.
Speaker 1: That's what I do.
Speaker 4: I'm not I'm ashamed of it. I love to do
Speaker 4: what I do. I help all kinds of entrepreneurs and
Speaker 4: I'm shroud of that. We don't make money all the time,
Speaker 4: is the point I'm trying to make. When you invest,
Speaker 4: you take risks, and that's why you need diversity.
Speaker 1: You need a lot of socks.
Speaker 4: ETF's a good idea that has a lot of socks
Speaker 4: whatever at the end of the day.
Speaker 1: But it's not a whatever that position. Doing that.
Speaker 2: Putting your money in an spy S and P five
Speaker 2: hundred for thirty years is going to benefit ninety five
Speaker 2: percent of the population. And the key problem is is
Speaker 2: people turn to you, people like Kevin O'Leary, Mark Cuban,
Speaker 2: because they see you very differently than say, Larry David.
Speaker 2: We take it for Shaquille O'Neal or all the other
Speaker 2: people that were in the FTX commercial. Mister Wonderful says
Speaker 2: this is a good position in reality. Every time you
Speaker 2: go on squawk Box or any of your many let
Speaker 2: me just you all the time, remote crypto positions. I
Speaker 2: talk about platforms and diversity. I didn't do commercials and
Speaker 2: I never would because I don't advocate single products.
Speaker 1: You don't do commercials.
Speaker 2: I mean you're on every third commercial during the commercial
Speaker 2: breaks of Shark Tank.
Speaker 3: You know I'm talking.
Speaker 4: You're talking about FTX though, right, you're talking about FTX.
Speaker 1: I'm not talking about FTX.
Speaker 2: I'm saying in general, Yes, yeah, I understand, Okay, yeah,
Speaker 2: do you see what I'm saying.
Speaker 1: Yes, I guess yes.
Speaker 2: If you go to your YouTube channel, just on your
Speaker 2: YouTube channel, the fourth or fifth video on your YouTube
Speaker 2: channel is is this the bottom of the market? Do
Speaker 2: you know what that's signaling to retail investors. It's signaling
Speaker 2: them to either pop in or pop out, when in reality,
Speaker 2: you should just go, hey, hey, real talk. You should
Speaker 2: have one class at Harvard. It should be ten minutes.
Speaker 2: Listen me right now. Listen to me. Put your money
Speaker 2: in Vanguard portfolio BTSAX or S and P five hundred.
Speaker 2: Maybe do a bond position right now because it's giving
Speaker 2: you four percent. Set it aside and turn off squawk box.
Speaker 1: Actually, don't even listen to what I have to say
Speaker 1: you're being tough on Squawkbox. They do a service. People
Speaker 1: are interested. Listen. I understand indexing. That's great. I do
Speaker 1: that too.
Speaker 4: But if you want to extraordinary returns, you got to
Speaker 4: take risks on entrepreneurs.
Speaker 3: You have to back people that don't know their outcomes.
Speaker 1: Right, So then your podcast and TV show she didn't.
Speaker 4: Tell me should be just well, you had a chance
Speaker 4: to Google evaluation was five million dollars.
Speaker 3: Do you wish you did that?
Speaker 1: Sure?
Speaker 2: Yes, behindsight is twenty twenty always, and you will lose
Speaker 2: that way, you will.
Speaker 1: You could lose.
Speaker 2: You can lose ninety five percent at the time that
Speaker 2: way trying to pick stocks, Kevin, you know this, Even
Speaker 2: the great Warren Buffett and Charlie Munger, the ghats of capitalism,
Speaker 2: even they say, now these g perreiatric coffin Dodgers now
Speaker 2: at their shareholders meeting.
Speaker 1: Go listen to me. Listen to me.
Speaker 2: If I could do it all over again, I would
Speaker 2: just put it in next one and what they said,
Speaker 2: and tug it away and we'll play the cliff.
Speaker 1: Kevin, it's on YouTube. Listen, Let's let's not do this.
Speaker 1: Can I ask you just a question why we can
Speaker 1: can do back and forth.
Speaker 2: I just want to ask you this because I mean
Speaker 2: this sincerely. I've been trying to crack this. Are you
Speaker 2: a great investor or are you a great spokesperson?
Speaker 1: Because I think you're the latter.
Speaker 4: Okay, I don't agree with you. Let me tell you
Speaker 4: what's happened over the last ten years. The ability to
Speaker 4: tell a company's story, to get people to understand what
Speaker 4: their mission is and the benefit of their product is
Speaker 4: highly valuable, very because there's a million stories out there.
Speaker 4: And the biggest problem every company has, including giint s
Speaker 4: and P countries companies, is how do they get customer acquisition?
Speaker 4: How do they acquire customers? Eight out of ten companies
Speaker 4: fail in America after thirty six months because they're never
Speaker 4: able to get their customer acquisition costble all the lifetime value.
Speaker 4: That's why I change the equation. If I invest in
Speaker 4: your company, I tell your story. That's what my job
Speaker 4: is to do. Yes, I take risk. I'm fortunate to
Speaker 4: have money to invest, but I get behind it and
Speaker 4: tell the story. And that's what we do on shark Tank.
Speaker 4: Why are shark tank companies so successful? Why do so
Speaker 4: many more of them make money? Than the traditional eight
Speaker 4: out of ten because we tell their story to one
Speaker 4: hundred million people every year.
Speaker 3: That's the magic sauce.
Speaker 4: So I think I'm a great investor by being able
Speaker 4: to be a great storyteller too. People need to know
Speaker 4: what the product does, what the merits of it are.
Speaker 4: That's why they try it. That's why it's important to
Speaker 4: tell these stories you talk to any guilty.
Speaker 2: I hear what you're saying, so tell me, you know,
Speaker 2: because I go to couple's therapy. Let me tell you
Speaker 2: what I'm hearing. Okay, I mean this, sincerely, tell me
Speaker 2: if what I'm telling you is right wrong, what I
Speaker 2: hear your saying is no huss and I disagree with you.
Speaker 2: I think I am a great investor and a great
Speaker 2: spokesperson that you do both that if I see something
Speaker 2: a seat of a good idea in your company.
Speaker 1: I'm great at communication. I'm good at the micro cult. True,
Speaker 1: I can communicate those things.
Speaker 2: Okay, so then you have I would imagine you would
Speaker 2: feel some level of guilt when some of the companies
Speaker 2: that you are promoting end up leaving retail investors holding
Speaker 2: the bag.
Speaker 1: Where you're like, damn this.
Speaker 4: Because here's why you know with certainty in venture investing,
Speaker 4: investing in startups since the beginning of time, eight out
Speaker 4: of ten are going to fail. I know that, you
Speaker 4: know that, and the whole world knows that because those
Speaker 4: are the stats.
Speaker 1: There's nothing you can do to change.
Speaker 2: But the system of you going on these shows squat
Speaker 2: box is financial fomo, the graphs, the ticker. But you
Speaker 2: guys are swinging kettlebells and greenwich.
Speaker 1: Do I got get an hour later? You know this,
Speaker 1: get a door dash ipo, Do I get an how later? Again?
Speaker 1: It's that fomo. I gotta get in now. I think philosophically, mysagree.
Speaker 3: And our messaging is sure and I would agree with
Speaker 3: you on this.
Speaker 4: And I think if you're going to promote the idea
Speaker 4: of investing, you should also promote the idea of diversity.
Speaker 3: Diversification.
Speaker 4: You can't put it all in any one position or
Speaker 4: any one institution because you don't know when there's going
Speaker 4: to be an exce Lehman Brother or Barristers, or when
Speaker 4: a stock goes to zero. By the way, big companies
Speaker 4: go to zero too, they do oh yeah, and so
Speaker 4: that happens. So if you have diversification, and I learned
Speaker 4: this from my mother. Never more than twenty percent in
Speaker 4: one sector. We have eleven sectors in the American economy,
Speaker 4: never more than five percent in one stock. That is
Speaker 4: the definition of diversity. And that's what I do with
Speaker 4: my own portfolio. That's how you stay out of trouble.
Speaker 1: Okay, you obviously would agree with that. Sure, sure, arrest
Speaker 1: my case.
Speaker 3: You're honor.
Speaker 1: Yeah.
Speaker 2: Wait a second, But when you are going on a
Speaker 2: six minute segment, if you did this, if you pulled
Speaker 2: up on your next squadbox segment and said.
Speaker 4: That amazing, I do say, but you don't you give well,
Speaker 4: you're not watching the right segment.
Speaker 2: I've seen you do forty of them. I mean you're
Speaker 2: putting up shots, my man, and some of them are
Speaker 2: just airballs. Now listen.
Speaker 1: If you are a great investor, let me ask you
Speaker 1: this and a great spooks proud of my track record,
Speaker 1: why are you on cameo? I love CAMA our great
Speaker 1: investors on Cameo. I put up the graph video. That's
Speaker 1: put up the graph video.
Speaker 2: You can book a personalized video for fifteen hundred dollars.
Speaker 2: You can book a business video. I don't even know
Speaker 2: what that is.
Speaker 1: Why for sixteys don't.
Speaker 4: Understand why, because this helps entrepreneurs launch their products and services.
Speaker 4: That ninety nine percent of my cameos is a business
Speaker 4: that can't afford to go to an agent and.
Speaker 1: Pay half a million dollars.
Speaker 3: This is fantastic what they've done.
Speaker 4: My biggest mistake on cameo was not to take down
Speaker 4: twenty percent of the stock when it was offered to me.
Speaker 4: I should have bought twenty percent. I mean, it was
Speaker 4: really a fantastic idea. Sorry, I'm an advocate and I'm
Speaker 4: going to keep doing it and people book them because
Speaker 4: it helps them.
Speaker 3: I'll do anything to help an entrepreneurs.
Speaker 1: That's you.
Speaker 2: Why do you let me ask us for your quest
Speaker 2: sub questions? First of all, cameo is all These haven't
Speaker 2: been tough questions, sub questions, sub questions. First of all,
Speaker 2: cameo is absolute doc shit. It's a way for Rachel
Speaker 2: Doleazol to wish you happy birthday.
Speaker 1: I'm not joking.
Speaker 2: Number two, do you think big boy investors do cameos?
Speaker 2: Do you think Warren Buffett and Charlie Munger tap dance
Speaker 2: for sixty five one hundred dollars?
Speaker 1: Now seem TALEB is out here doing it. They have
Speaker 1: business video.
Speaker 4: They're not venture investors that they don't start up entrepreneurs.
Speaker 2: Do you need the fifteen hundred or sixty do you
Speaker 2: need any of it?
Speaker 4: Listen, I spend plenty of dollars doing what I do,
Speaker 4: and I give to all kinds of philanthropic This.
Speaker 1: Is not about charity.
Speaker 2: I'm talking about the actual qualitative, the quality.
Speaker 1: Of that I do.
Speaker 4: That that work because people tell me, and they have
Speaker 4: for years doing it.
Speaker 1: This has really helped me. I'm happy to do it.
Speaker 1: Read the comments. I mean, if you want to be
Speaker 1: a critic, go ahead, but read the comments. I mean,
Speaker 1: I mean, that's the content.
Speaker 2: The comment of a person asking for a fifteen dollars. Sure,
Speaker 2: I don't do many fifteen hundred dollars there all the
Speaker 2: sixty five hundred one.
Speaker 1: Unfortunately, I'm a.
Speaker 4: Little because if you're a business in mind and you
Speaker 4: want to use it, you got to you got to
Speaker 4: pay it.
Speaker 1: I feel very sorry for those people. Well, I'm sorry.
Speaker 1: You know, I'm going to charge you twelve hundred for yours.
Speaker 1: I'm going to give me a discount.
Speaker 2: Okay, Okay, I'm not gonna do that.
Speaker 1: I get it. It's hard to rattle me on things.
Speaker 3: I know that work, you know.
Speaker 1: I mean you didn't.
Speaker 2: I mean, the cameo thing is really bad, man, It's
Speaker 2: a truly bad look.
Speaker 1: I don't agree. I don't agree.
Speaker 2: It's it's for grifters, sociopath sick offense and oh J.
Speaker 1: Simpson. I mean, like there's the people that are on cameos.
Speaker 3: It is little negative on cameo.
Speaker 2: Okay, do you guys like cameo?
Speaker 1: Don't pooh? Don't pooh.
Speaker 2: I mean I was just asking us. Okay, listen, this
Speaker 2: has been a this has been a.
Speaker 3: Very interesting, something nice about small business here.
Speaker 2: Yeah, let's do the small business. So we spoke backstage.
Speaker 2: She wants to plug the small business thing. But can
Speaker 2: I can I just say this one thing, We'll plug
Speaker 2: the small business. Then we're going to do this whole.
Speaker 2: This is all going to be online.
Speaker 1: So it's all good.
Speaker 2: So I think the reason why I'm very passionate about
Speaker 2: this is because I think there is an ecosystem of
Speaker 2: a lot of.
Speaker 1: VC people and.
Speaker 2: People with money going on these shows giving advice to
Speaker 2: retail and look. I think entertainment is important, but when
Speaker 2: Skip Bayless and Steven A. Smith give their hot takes,
Speaker 2: it doesn't potentially affect people's four one ks or their
Speaker 2: bank account. When you give financial tips, it's like a
Speaker 2: doctor giving a diagnosis to a patient they can't even see.
Speaker 2: You don't know the number of people that you're inadvertently.
Speaker 1: Let me tell you.
Speaker 3: Let me tell you why I disagree with you.
Speaker 1: Do you think I should just don't? That's all I'm saying.
Speaker 2: Be careful when you full people's begas everybody in the audience.
Speaker 4: Do you think I should go to high schools as
Speaker 4: I do and talk to them about financial literacy and
Speaker 4: about credit card debt and about stocks and bonds?
Speaker 3: Is that a good thing to do?
Speaker 2: You should give them Jail Collins book, The Simple Path
Speaker 2: to Wealth, and one of the addendums should be turn
Speaker 2: off any program that I'm on besides Chartek, besides Charlotte.
Speaker 4: So I'm very proud to be on Shark Tank's awesome foe.
Speaker 4: I teach it's high schoolers and I teach graduate MIT engineers. Look,
Speaker 4: there is there is a You are allowed to have
Speaker 4: an opinion, and I'm glad you do it. It's an
Speaker 4: important part of the dialogue and the and the discussion
Speaker 4: we're having here. But at the end of the day.
Speaker 4: The more people that understand the financial system in this country,
Speaker 4: the better this country is.
Speaker 1: Now.
Speaker 4: You may not agree on the message. That's okay, and
Speaker 4: that's the one thing about this country. We can have
Speaker 4: this dialogue and we don't have to agree. And I
Speaker 4: don't agree on half the stuff you're saying, but I
Speaker 4: respect the fact you have the opinion.
Speaker 3: That's good with me.
Speaker 2: I appreciate it, and I appreciate you, and I really
Speaker 2: appreciate Do you want to do the small business thing? Yeah,
Speaker 2: I'll do my pitch and we'll let's do so you
Speaker 2: wanted to talk about small business, talk about that and
Speaker 2: then we'll do my.
Speaker 4: Pitch to let me tell you what we should be
Speaker 4: worried about in this country right now. And a new
Speaker 4: ambassadorship that I have. I know you like to be critical,
Speaker 4: but I want to hear you criticize this one.
Speaker 3: Okay.
Speaker 1: Are you ready? Are you ready?
Speaker 4: So everybody remembers PPP all of our company. I mean,
Speaker 4: if you're doing the cameos, you never know.
Speaker 1: I didn't do it. You get a lot of money
Speaker 1: sixty five I don't know for the government. No, I didn't.
Speaker 2: That's fine, anyway, that's funny, that's funny, all of margin
Speaker 2: you could you could have gotten thirty.
Speaker 1: Take up no better jokes than that one. I'm going
Speaker 1: to give you four out of ten.
Speaker 4: So look, let's get to the point is the program
Speaker 4: was launched and all small companies used it. They went
Speaker 4: to their bank and got it. Same time, another program
Speaker 4: was launched called the Employer Retention Credit. You've never heard
Speaker 4: of it, have you. Okay, small business is really hurting
Speaker 4: now because rates have gone up so high on them.
Speaker 4: You know, people talk about six percent fed rate. Small
Speaker 4: business is borrowing at eighteen percent now. They used to
Speaker 4: borrow at nine or seven. So it's been hell for
Speaker 4: them for the last two years. The government has two
Speaker 4: hundred and fifty billion dollars sitting waiting for them to
Speaker 4: pick it up on their payroll because they forgot to
Speaker 4: go get it.
Speaker 1: It's sitting there.
Speaker 4: If you have a small business between five and five
Speaker 4: hundred people, you can make up to twenty six thousand
Speaker 4: dollars as a gift from the government towards your business
Speaker 4: one time. So if you have fifty employees, that's half
Speaker 4: a million dollars. If you have one hundredmployees that's one
Speaker 4: point one million. I'm pounding the drum everywhere I can
Speaker 4: to tell every company in America that qualifies, because you
Speaker 4: only have twenty three more months to get it.
Speaker 1: Go file go, file for it. Thank you for sharing
Speaker 1: that information. Thank you, thank you.
Speaker 4: I mean, I think that's that's a very important thing
Speaker 4: to do.
Speaker 1: So before we get to tell me why that's a
Speaker 1: bad thing, I'm not.
Speaker 2: I think you're sharing a very important piece of information.
Speaker 2: Thank you in a not entertaining way. But it's important. Nonetheless,
Speaker 2: but it's important. It's important, and it's great. How many people.
Speaker 4: Are entertained by one point one million dollars cash?
Speaker 1: Let me go, I'm entertained.
Speaker 2: Okay, I have mister O'Leary on the show. I got
Speaker 2: to pitch you go ahead, So here's my pot. I
Speaker 2: think it's going to go badly. Yeah, here's my pitch.
Speaker 2: Here's my pitch. I mean, I wonder why this is
Speaker 2: my pitch. I think. You go on these shows. You
Speaker 2: are part of a system in the media, specifically financial
Speaker 2: Hot take media, the CNBC's the podcast appearances. People turn
Speaker 2: to you for financial advice. They ask you, how are
Speaker 2: the markets doing, what's up, what's down?
Speaker 1: What are you into?
Speaker 2: You give your opinions because people turn to you because
Speaker 2: you're mister wonderful. You obviously look like a successful entrepreneur
Speaker 2: and businessman. Advertently or inadvertently, you give people your opinion.
Speaker 2: People listen to that opinion and then make investment choices
Speaker 2: based on what they hear from you.
Speaker 1: Think you create. Let me just finish, Let me finish,
Speaker 1: let me finish.
Speaker 2: Okay, you give those opinions, It creates potential chaos and
Speaker 2: risk at scale because it's on the internet, and then
Speaker 2: you face no downside consequences when those people get fleeced.
Speaker 1: That's not fair.
Speaker 3: Totally disagree with you.
Speaker 1: Is this a pitch where I invest the second one?
Speaker 1: We haven't got to do. We haven't got that one. Yeah,
Speaker 1: so let me tell you. Wait, wait, I gotta get
Speaker 1: to the end. We gotta get to Okay.
Speaker 2: Well, now, the second part is I've thought to myself,
Speaker 2: question in here somewhere.
Speaker 3: It's not the end, Okay.
Speaker 2: The second part is I thought to myself, I go, hey,
Speaker 2: you've clearly made picks and taken some massive l's. So
Speaker 2: he either cares about it and feels very bad about it,
Speaker 2: which you may, or you know you're taking those l's.
Speaker 2: But if you keep the three card Monte going and
Speaker 2: keep appearing on other shows and make other picks, you'll
Speaker 2: just bury the l's you had in the back. If
Speaker 2: you beat the algorithm, they can't even catch up to
Speaker 2: all the l's in the past. The problem is retail
Speaker 2: got left holding the bag a long time ago. So loser,
Speaker 2: yes or loss loss. So I think what you do
Speaker 2: is good. I think you are entertaining on Shark Tank.
Speaker 2: When you leave that environment and give financial advice people,
Speaker 2: regular people potentially get hurt. So I mean this humbly.
Speaker 2: This is my pitch to you. I want to quote
Speaker 2: the great Laura Ingram. I think you should focus on
Speaker 2: your strengths and shut up in Shark Tank.
Speaker 4: No reverse that you want me to my strength or
Speaker 4: Shark Tank. You said you want me to shut up
Speaker 4: on financial literacy, which one.
Speaker 2: Is no, no, Your strength is so when okay, So jokes
Speaker 2: are great when you have to explain that no no.
Speaker 2: So she told Lebron to shut up and dribble because
Speaker 2: dribbling has his strength, right, So I said, Shark Tank
Speaker 2: is your strength, so then using that you just carry that.
Speaker 4: So my whole point is my actual daytime job is
Speaker 4: managing capital. That's what I do, and I've been doing
Speaker 4: it for thirty years, and you know it's it's a
Speaker 4: career I'm very proud of and I'm proud of my reputation.
Speaker 4: I had some mistakes and losers and bad investments, just
Speaker 4: like everybody else does. But long term, the best way
Speaker 4: to do it is always tell the truth, and you
Speaker 4: never have to remember what you said. And so everything
Speaker 4: I've told you is the truth. It's not all good news.
Speaker 4: And by the way, and investing, you are going to
Speaker 4: have some losers. You've learned that tonight, right of course,
Speaker 4: and so I wish I could only have winners.
Speaker 3: I never will.
Speaker 4: And everybody that invests has learned, whether I'm involved in
Speaker 4: their lives or not, that there are.
Speaker 3: Losers and investing that's what happens.
Speaker 4: But as you've suggested, the market does give you one
Speaker 4: average about a nine percent return over a long period
Speaker 4: of time.
Speaker 1: When it's an S and P five hundred. So the
Speaker 1: addendum is that you're in another tax bracket. Don't listen
Speaker 1: to what you're saying because you're bawling, and.
Speaker 2: You can take the losses. That's it perfect, perfect. You
Speaker 2: can take the losses in retail care. Mister Kevin O'Leary.
Speaker 2: I want to say thank you so much. You're very
Speaker 2: well at the ruin on the show, and I want
Speaker 2: to say thank you for having this conversation and for
Speaker 2: us being respected or another.
Speaker 1: I appreciate it. Thank you, thank you felt for and
Speaker 1: Kevin oh La No, I don't know. A lot of.
Speaker 2: The reason why I wanted to have this conversation is
Speaker 2: over the past two and a half years.
Speaker 1: I don't know if you felt this.
Speaker 2: During COVID, A lot of us were at home, a
Speaker 2: lot of people were going through uncertainty. I had a
Speaker 2: lot of friends that lost their jobs, and there is
Speaker 2: this deep angst within a lot of us. I feel
Speaker 2: it with my friends my generation. They're hitting an age
Speaker 2: where life is starting to choke them out. They're hurtling
Speaker 2: through time. People are getting married, people are trying to
Speaker 2: buy their first home. People are trying to have a
Speaker 2: little bit of a nest egg to have some sort
Speaker 2: of financial cushion to cover school, healthcare, aging.
Speaker 1: Parents, etc.
Speaker 2: And the way salaries are now, you have to ten
Speaker 2: x your money, and so what happened during this period
Speaker 2: of time is a lot of the financial cable hot
Speaker 2: take podcast people advertently or inadvertently, we're giving their takes,
Speaker 2: and people at home were listening to them and go, well, clearly,
Speaker 2: he's smart. He's smart, he's a venture capitalist. Why don't
Speaker 2: I take an active position in my betterment and do
Speaker 2: what he does. The difference is, and what I was
Speaker 2: telling mister O'Leary was, you're at a different tax bracket
Speaker 2: than them.
Speaker 1: You can take the losses and retail can't.
Speaker 2: And unless you give up your whole position, like I said,
Speaker 2: you show me yours, I'll show you mine. This is
Speaker 2: my net worth, is what I'm being paid, This is
Speaker 2: how much I'm investing. This is how much of my
Speaker 2: personal money I'm investing.
Speaker 1: We don't know.
Speaker 2: And what that does to the millions of people that listen.
Speaker 2: It creates a lot of risk and damage. And I
Speaker 2: feel for those people because they get left holding the
Speaker 2: bag and they get left behind.
Speaker 1: So I hope.
Speaker 2: People remember that the next time they watch any of
Speaker 2: these shows or these podcasts. They have to keep in mind, Hey,
Speaker 2: we'll never know what their position really is. So maybe
Speaker 2: I need to take what they say with the grain
Speaker 2: of salt.
Speaker 1: Do you understand what I'm saying.
Speaker 2: Because because if it was actually, hey, put your money
Speaker 2: in an index fund, eighty five percent index fund, fifteen
Speaker 2: percent bond or whatever the way what our dad's told us,
Speaker 2: there wouldn't be any of these shows. There wouldn't be
Speaker 2: any of them, squat Box.
Speaker 1: CE NBC, they wouldn't exist.
Speaker 2: So they have to have this ecosystem that continues pumping
Speaker 2: them out. And I just can't help but think it's
Speaker 2: one of two things. There's the White Knight thing that
Speaker 2: they think they have good picks, but they're so ahead
Speaker 2: of the game that even if they lose, they'll never
Speaker 2: lose the shirt on their back, so even when they're wrong,
Speaker 2: it won't really affect them. Or number two, they don't care,
Speaker 2: which is even scarier. And that's why I said, listen, man,
Speaker 2: leave that shit alone. Just shut up in Shark Tank.
Speaker 2: I think Shark Tank is great. I think it's very entertaining,
Speaker 2: and you can keep it there and retail investors don't
Speaker 2: get hurt.
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