Speaker 1: Welcome to a special bonus episode of Masters in Business.
Speaker 1: I'm Jason Kelly, chief correspondent from Bloomberg Quicktake and the
Speaker 1: host of Bloomberg Sports Well. He's got one of the
Speaker 1: most recognizable voices in the world and has spoken some
Speaker 1: of the most memorable lines ever in movies. It's show time.
Speaker 1: I'll be back before Reese or Lebron Arnold was the
Speaker 1: original multi hyphen it famous for being a bodybuilder, a
Speaker 1: movie star, and governor of California, and quietly a very
Speaker 1: successful businessman. Very carefully chosen. The people that I work
Speaker 1: with is Arnold. It's kind of my model to be
Speaker 1: people who do have that business gene. Then it becomes
Speaker 1: very hard to work. And I learned from Arnold they
Speaker 1: have to have that instinct. For more than forty years,
Speaker 1: he pioneered a strategy of not just endorsing, but investing,
Speaker 1: buying real estate and airplanes, and partnering on everything from
Speaker 1: Planet Hollywood to Hummer. His secret weapon an adviser and
Speaker 1: banker named Paul Walkeder that Schwarzenegger met in the early
Speaker 1: nineteen eighties. Schwartzenegger encouraged walk Her years ago to ditch
Speaker 1: investment banking and hang out of Shingle in Santa Monica. Walkeder,
Speaker 1: through his firm Main Street Advisors, has continued to advise
Speaker 1: Arnold and subsequently used that same template to work with
Speaker 1: clients from Lebron to Billie Eilish, helping create companies like
Speaker 1: Beats by Dre and Lobos Tequila in the process. I
Speaker 1: recently got a chance to sit down with Paul and
Speaker 1: Arnold in l A to talk about their partnership, how
Speaker 1: the world of entertainer and athlete investment has exploded, and
Speaker 1: what even the non famous can learn about building wealth.
Speaker 1: Talk to me more about that notion that you saw
Speaker 1: very early on, theory early in your career that you
Speaker 1: wanted to have a serious business in addition to what
Speaker 1: you were doing as an athlete as an entertainer. Why
Speaker 1: what opened your eyes to that early on? I was
Speaker 1: fascinated about the fact that you can't make so much money,
Speaker 1: for instance, in real estate. So I got into real
Speaker 1: estate and um and it was also at the time
Speaker 1: where we had a high inflation, and so the real
Speaker 1: estate went up every year but ten percent and fIF
Speaker 1: So if you own a million dollar building, it went
Speaker 1: up a hundred and fifty thousand dollars. So at that
Speaker 1: time you could have booked your ass off. And we've
Speaker 1: never made a hundred and fifty thou dollars and there's
Speaker 1: an investment. You don't have to do anything, just wait
Speaker 1: until the years over and then you have the properties
Speaker 1: worth a hundred and fifty thousand more. So it was
Speaker 1: it was clear to me that I was interested in investing.
Speaker 1: But also remember that I studied business when I was
Speaker 1: in back in Austria, and there will be specialized specifically
Speaker 1: in marketing and in selling. And little didn't know then
Speaker 1: that in life, no matter what you do, it always
Speaker 1: involves around marketing, how to populicize and how to sell.
Speaker 1: It doesn't matter if you're in a business of movies,
Speaker 1: or if in a business of art and paintings, or
Speaker 1: if in sports, if you clothing. No matter what business
Speaker 1: you're in, you have to go and let the world
Speaker 1: know that this product exists and only then are you
Speaker 1: able to sell. And then you have to also be
Speaker 1: a good businessman. So I, somehow, through some miracle reason,
Speaker 1: I had this early training from the time I was
Speaker 1: fifth into the time I was eighteen in Austria, where
Speaker 1: it was actually a salesman studied business in the school
Speaker 1: and studied, you know, how to do business, how to
Speaker 1: make money, how to do the accounting and offer this stuff,
Speaker 1: and so that was very helpful. But the rest of
Speaker 1: my life. I never knew then that I would use
Speaker 1: those kind of talents the rest of my life. So
Speaker 1: I was always was interested in business, and therefore I
Speaker 1: had this kind of great advantage. So they've when I
Speaker 1: started making a lot of money in the show business,
Speaker 1: I knew what to do with this money, and I
Speaker 1: knew how to go and hey through my investments for
Speaker 1: the taxes and never really worry about, you know, having
Speaker 1: an offshore corporation, any of those kind of things that
Speaker 1: that that I despise, all of the stuff that that
Speaker 1: you try to avoid paying taxes. Always was a guy
Speaker 1: that was interested in paying taxes, but I always wanted
Speaker 1: to make sure at the same time that investment money
Speaker 1: so that I make up for that. But those kind
Speaker 1: of payments that you give the I s Paul, That's
Speaker 1: that's atypical, to say the least right for someone to
Speaker 1: come into a career thinking that some people come up
Speaker 1: I mean, you have deep experience here. What were your
Speaker 1: observations of Arnold in those sort of early days, having
Speaker 1: come to the table with that kind of expen well,
Speaker 1: it was clear to me from the beginning that he
Speaker 1: was interested in business. I don't think it would have
Speaker 1: ever worked out for us to work together if you
Speaker 1: weren't interested in business, if he had just said, I
Speaker 1: don't know anything about business, go figure it out. The
Speaker 1: fact is he was a partner to me in it,
Speaker 1: and he came with a very different perspective than I had.
Speaker 1: So I've learned a lot over the years from him
Speaker 1: and other people. I think I have much more of
Speaker 1: a marketing gene now and I understand all that, but
Speaker 1: coming in I was more of a financial person, and
Speaker 1: so I learned a lot about marketing and sales and
Speaker 1: things like that from him. I always say that whoever
Speaker 1: that guy was that taught Arnold sales in Austria, and like,
Speaker 1: you know, whatever year that was, they should should build
Speaker 1: a statute to him or something, because he was obviously
Speaker 1: really good. But you know, Arnold was always had that
Speaker 1: uh sales and marketing gene. And I was saying I
Speaker 1: was saying before that I don't know if he was
Speaker 1: the first person, but I think he might have been
Speaker 1: the first person who kind of traveled around the world
Speaker 1: promoting his movies. Because first of all, he had a
Speaker 1: global perspective, which I also did, and when I was
Speaker 1: a banker investment bank a lot of clue then as well.
Speaker 1: I worked at Israel, I worked at UP so that thing,
Speaker 1: which was unusual for most Americans. So he had a
Speaker 1: global perspective. But also he was always thinking about selling.
Speaker 1: It was like, if you if you do something or
Speaker 1: you make something and you can't sell it, what's the
Speaker 1: point and so and that was true of his movies.
Speaker 1: And so he was on Johnny Carr. That's how I
Speaker 1: first knew who he was because I wasn't. I mean,
Speaker 1: look at me, I think I was a bodybuilding I'm
Speaker 1: actually not, but this is a podcast. Yeah, I'd see him.
Speaker 1: I've seen him on Johnny Carson many times, and I
Speaker 1: just found him so interesting because he was such a
Speaker 1: great salesman and he would do this thing with Johnny
Speaker 1: Carson and I watched. I was a big Carson fan,
Speaker 1: so I kind of knew his rhythm where Arnold would
Speaker 1: just segue right into selling and Carson always got the
Speaker 1: joke and he always has kind of led Arnold to
Speaker 1: the point where Arnold could go, oh, and by the way,
Speaker 1: I'm just coming out with a movie, and it was
Speaker 1: like an inside joke between the two of them. And
Speaker 1: so I think when you asked that question, I wouldn't
Speaker 1: have been as interested in what we were doing if
Speaker 1: I didn't feel that he had a business gene and
Speaker 1: would be business partner. He just didn't. And obviously I
Speaker 1: have certain skills and finance and things that I have,
Speaker 1: but some of the stuff he talked about, like all
Speaker 1: the planet Hollywood stuff before I started, that was really
Speaker 1: one of the things we worked on while I was
Speaker 1: still an investment banker before and I think we together
Speaker 1: did a great job on that, and it was a
Speaker 1: great thing. And I remember once he called me and said,
Speaker 1: I want to buy Santa Clarita Studios. Drive up there
Speaker 1: and look at it, which is way the hell up
Speaker 1: and Antelope Valley in your Magic Mountain, And I was
Speaker 1: just like, what is complain? You know, what is this?
Speaker 1: Actually probably wouldn't have been a bad today, it would
Speaker 1: have been an incredible asset that so he was always
Speaker 1: thinking like that, you know, I was thinking about investing,
Speaker 1: thinking about business, thinking about market and yet your peers
Speaker 1: were not obviously keeping honest here Arnold like they would
Speaker 1: make a movie, didn't sort of move on to the
Speaker 1: next one. They weren't going and pitching it around the world.
Speaker 1: They weren't maybe as aously courting the Carsons of the
Speaker 1: world to do that. Might do some endorsements here and there.
Speaker 1: But what did you see that that was missing? Well,
Speaker 1: I don't think there was anything missing with those guys.
Speaker 1: I think they were very, very talented actors. That but
Speaker 1: that was the craft, that was their talent. They were
Speaker 1: extraordinary actors, but they were not necessarily businessman. So them
Speaker 1: when the agents said, look, I can get you those
Speaker 1: days a million dollars with a lot of money, I
Speaker 1: can get the million dollars a movie, those guys were
Speaker 1: very happy. But they didn't think about it beyond okay, theft,
Speaker 1: if you pay taxes and then you have my staff
Speaker 1: have my right off maybe business us or the expenses
Speaker 1: and that all those kind of things. They didn't think that.
Speaker 1: It was just oh, I'm so happy that they get
Speaker 1: this money, and that was it. And there was a
Speaker 1: business manager that then took care of the money. And
Speaker 1: you know, who knows what they were doing, right, I mean,
Speaker 1: it was like a lot of those actors eventually lost
Speaker 1: the money and they had nothing, and oh the I
Speaker 1: s in the millions of dollars and so so. But
Speaker 1: this is because they were actors in the businessmen. I
Speaker 1: happen to have the talent at first. I came from business,
Speaker 1: then I went into bodybuilding, then I went into acting,
Speaker 1: So I have a totally different approach. Also, let's not
Speaker 1: forget that I have the advantage of having come from Europe.
Speaker 1: So when you come from Europe and you've traveled now
Speaker 1: with bodybuilding, the entire world doesn't matter. If you go
Speaker 1: to Australia or to African countries, or you go to
Speaker 1: Asian countries, European countries. You all over the place in
Speaker 1: order of America, South American, North America in orders, so
Speaker 1: you covered the world. When went into show business and
Speaker 1: they started doing movies, I remember they be set down
Speaker 1: with Universal Studio and they said, okay, if you're gonna
Speaker 1: go and send you with Conan the Barbarian to France
Speaker 1: and uh to Germany and to Japan. So I said,
Speaker 1: my only three countries. They said, well, this is our
Speaker 1: biggest bias, and the other ones are not really up
Speaker 1: to par with our movies that do their own movies
Speaker 1: noticed stuff. I said, well, isn't it time that we
Speaker 1: go and promote our movies also in the countries they
Speaker 1: are not yet very independe official and bring a lot
Speaker 1: of profits. And they said, no, no, no, I don't
Speaker 1: want to do that. Actors don't like to fly around
Speaker 1: the world. Anyway, I said, was let's were not a
Speaker 1: map and let's go on the side. Now which countries
Speaker 1: we should go? I would like to go to ten countries,
Speaker 1: just to make it up ten countries and they said
Speaker 1: you would I said yeah, it's all of a sudden,
Speaker 1: they said, yeah, well, actually we always wanted to stand
Speaker 1: someone to Norway into Finland and the Nordic countries in
Speaker 1: Europe also would like to go, and have you go
Speaker 1: to Italy? How about Spain? And said, yeah, Spain. We
Speaker 1: shot the movie Coming to but Bar, and of course
Speaker 1: we should go to Spain, and then then we go
Speaker 1: to Japan and then we go So now we made
Speaker 1: up ten countries. And they called me back after this honor.
Speaker 1: This was such a hit. Now those countries want to
Speaker 1: buy other movies of ours in blap bla, So I mean,
Speaker 1: it was like a no brainer. For me that you
Speaker 1: say the world it's the marketplace, not just the United States,
Speaker 1: not just Japan, not just Germany. The world is the marketplace.
Speaker 1: And if it isn't yet there, let's build it. And
Speaker 1: I of course thought about it a bit selfishly at
Speaker 1: the same time, because I said to myself, if the
Speaker 1: studio is paying for me to travel around the world
Speaker 1: to promote the movie, well who is this going to
Speaker 1: benefit and the staff of the movie I'm going to
Speaker 1: benefit from that. And so I always looked at it
Speaker 1: as kind of like in a synergy in a synegy way,
Speaker 1: that you have to go and think about your own career,
Speaker 1: your own name, how to build that up. So I
Speaker 1: think that those talents of marketing, publicity, business, and then
Speaker 1: the national vision of that is because of my background,
Speaker 1: and I don't expect other people to have to naturally,
Speaker 1: if it doesn't matter if you're a lebron or if
Speaker 1: your mark spits, or if your shoe nameth or anything
Speaker 1: like that, any of those speaks athletic names, you know
Speaker 1: you don't you don't get good in those areas just
Speaker 1: because you're a great athlete, right right, And so let's
Speaker 1: talk about plann at Hollywood because as you look back,
Speaker 1: what was in your mind when that came across, well,
Speaker 1: the original office and a lot of the deals that
Speaker 1: I have done was always we would like it to
Speaker 1: endorse this, and all you have to do is take
Speaker 1: a picture with it and we take a picture together
Speaker 1: and you come to the original opening of you know,
Speaker 1: bags ship rest around us or whatever it is, whatever
Speaker 1: product is, and uh, and that's it. It makes a
Speaker 1: certain amount of money, and I always felt kind of
Speaker 1: like it's not as organic. I didn't want to be
Speaker 1: just doing a commercial and get the money. I always
Speaker 1: felt like I should get involved. To Planet Hollywood was
Speaker 1: one of those, because you mentioned it a good example
Speaker 1: where I said, well, you know, I don't want to
Speaker 1: just do a commercial or I don't want to just
Speaker 1: do an endorsement, but why don't I get involved? And
Speaker 1: they have a certain small ownership of the business, and
Speaker 1: so they said, oh, would you want to do that,
Speaker 1: and they said yes. I said, give me no money.
Speaker 1: I don't want no money. I said, I'm not cash poor.
Speaker 1: I said, luckily, I've always invested my money. Well, so
Speaker 1: I said, I'd like to take a little risk myself.
Speaker 1: I see, I'm not scared of risks, and they said,
Speaker 1: you would do it Jesus business thinking kind of a
Speaker 1: mentality you got there, and I said yeah, I said,
Speaker 1: let's just do that. And they said wee we made
Speaker 1: this deal. And then I helped them. Attended came part
Speaker 1: of the business, part of the decision making. And then
Speaker 1: I talked to me into that we should also have
Speaker 1: stall loan, and then we should have Bruce Willis and
Speaker 1: will we go back, and the list went on and on,
Speaker 1: and all of a sudden, we had like twenties celebrities
Speaker 1: that were able to travel all over the world and
Speaker 1: create sometimes up to forty fifty thousand people participating in
Speaker 1: an opening of a planet Hollywood, I mean in London.
Speaker 1: They said, we haven't seen that many people since the
Speaker 1: Beetle Beetles performed, And so this is the kind of
Speaker 1: crowds that we got. It was all because celebrities were involved.
Speaker 1: It looked organic. It didn't look like just an indorsement.
Speaker 1: It looked like they were really involved because they went
Speaker 1: to the various different locations and openings. They're moving memorabiliers
Speaker 1: were inside the restaurant. So there was like a real
Speaker 1: feeling like we have given up all of our memorabilities
Speaker 1: to scatter them all over the world, which we did,
Speaker 1: and then they had to make copies of that because
Speaker 1: of course the restaurant business grew so fast in orders,
Speaker 1: so this was like a huge coup. And you know,
Speaker 1: by the time I sold this whole thing, you know,
Speaker 1: tens of millions of dollars with no investment of it.
Speaker 1: So people were then shock and said, gieve, you made
Speaker 1: the second most amount of money of anybody in the
Speaker 1: business in the planet, Hollywood business. How did you do that?
Speaker 1: I said, well, I said, I'm a businessman. I know
Speaker 1: exactly how to do it and when to sell in
Speaker 1: order stuff. And of course Paul was right there, Main
Speaker 1: Street Advisors was right there and every step of the
Speaker 1: way helping me. Laid on after we went business already
Speaker 1: for a while and in order. So it's the same
Speaker 1: thing with Autumn b K. They came to me and says,
Speaker 1: we would like to do a watch with you, and
Speaker 1: then of course one of the greatest watch companies, and
Speaker 1: I said, well that would be great. I said, let's
Speaker 1: do watch. What can we do together? And they said, well,
Speaker 1: you tell us, they said, what I'm doing a movie
Speaker 1: right now? End of Days. I say, how about creating
Speaker 1: a black watch the royal oak, which I love. I said,
Speaker 1: the royal oak, and we make it all black. And
Speaker 1: they said, the way it's a don't all black? Would
Speaker 1: not sell people like colors. I said, ah, then let's
Speaker 1: go and make the numbers yellow if you like color.
Speaker 1: They said that it's just too simply, wouldn't work out
Speaker 1: a Rather, it was the big thing. Said that's the
Speaker 1: watch that we're gonna do. It's gonna call be called
Speaker 1: the End of Days watch, and that's it and that's all.
Speaker 1: And then they said, oh god, okay, we want to
Speaker 1: do watch me no matter what they say, Okay, okay.
Speaker 1: So they did it and they immediately called me back
Speaker 1: when the watch came out and says, we are sort
Speaker 1: out anyone's through the roof. How did you know that?
Speaker 1: So anyway, the bottom line is I realized that you
Speaker 1: can make millions of dollars in the watch business if
Speaker 1: you involved in the design. I went over there to
Speaker 1: automobic to the factory and they put on my white
Speaker 1: coat and the mask around the mouth, and how the
Speaker 1: scientists they are round around the mechanics noticed stuff so
Speaker 1: that there's nothing that gets down on any of the
Speaker 1: mechanisms of the watches, and it's a gimmick, probably a
Speaker 1: lot of it, but I mean that the bottom line is,
Speaker 1: you know, I went to the whole thing and to
Speaker 1: show people that are actually sitting there with the watch
Speaker 1: designer and we're designing the watch, because at that point
Speaker 1: now we were designing the Terminator three watch, and so
Speaker 1: this is how it went from one watch to the
Speaker 1: next week. Then after that we did the sixth Day
Speaker 1: Watch and the Day's Watch, the Terminator Watch, and when
Speaker 1: every movie did the watch. Now the millions of dollars
Speaker 1: that I get paid for this was actually not for myself.
Speaker 1: It was for the after school programs. So I said
Speaker 1: to myself, I'm gonna go and have my favorite charity
Speaker 1: we just started in the nineties, and said, all of
Speaker 1: the money that I'm gonna make with the watches, I'm
Speaker 1: gonna put into the charity after school programs for those kids,
Speaker 1: because the kids are best investment, right. So that was
Speaker 1: the idea and all of my Bika was very very
Speaker 1: happy with that idea that I wasn't selfish just thinking
Speaker 1: about myself, So they made any deal that I wanted
Speaker 1: to make, I said, tells so many millions of dollars
Speaker 1: for this watch, tells so many millions of dollars, but
Speaker 1: this watch, and they just paid it because they said
Speaker 1: it's for a good cause. I know this is not
Speaker 1: taking it themselves. So this is another concept. Okay, did
Speaker 1: the way you go, you know, kind of against synergy
Speaker 1: where you go beyond just you know, making money, but
Speaker 1: how you can donate the money and their whole thing.
Speaker 1: But anyway, it was in the watch business, it was
Speaker 1: like that. And with the airplane deal, I remember it
Speaker 1: was like that when the Singapore Airline says said, you know,
Speaker 1: we don't want to own all of our planes. We
Speaker 1: want to go and have someone else buy the plane,
Speaker 1: remember that, Paul. And then they said, you won't have
Speaker 1: someone else buy the plane. Some institution and pensions or
Speaker 1: whatever they buy the plane and we least it. So
Speaker 1: I said, why shouldn't I have a Singapore Land plane?
Speaker 1: You know I have the money to buy it was
Speaker 1: a hundred exactly. So to we bought a plane and
Speaker 1: Paul made the deal. We palled, we bought the plane,
Speaker 1: and we had the most extraordinary investment. Because now not
Speaker 1: ten years later then it is it is you know,
Speaker 1: you have to plane. Now the least is over. Now
Speaker 1: you can go and sell it. But they now it's
Speaker 1: it's of course it's a devalued down to sixty million
Speaker 1: dollars hundred thirty four million dollars, but now the plane
Speaker 1: still sort for a hundred million to night, I mean
Speaker 1: the extra forty million dollar investment, not even talking about
Speaker 1: all the write offs that you had, because I had
Speaker 1: my own private plane of course that I flew around
Speaker 1: with all the right offs there. So this was a
Speaker 1: huge deal. But we literally tripled out quite tripled our
Speaker 1: money in the short period of time. So anyway, so
Speaker 1: there's the kind of things that I do and then
Speaker 1: Paul helps me with and the idea of it all
Speaker 1: is that all. And I think we're celebrating kind of
Speaker 1: like Main Street Advices because it has been now in
Speaker 1: operation for how long twenty five years now, And we
Speaker 1: talked about that how he now for twenty five years
Speaker 1: has helped other celebrities that don't have the talent of this,
Speaker 1: not because they're idiots, they're smart, but it's just a
Speaker 1: special talent. It's like having a talent of playing basketball,
Speaker 1: being a bodybuilding champion of wait, and then they don't.
Speaker 1: You're not born right away with the same talent of
Speaker 1: being a businessman and understanding numbers. And so Paul has
Speaker 1: been helping those guys. Uh. And Paul can tell you
Speaker 1: about the whole list of celebrities that then music, that
Speaker 1: then sports, then you know, in various different sports people
Speaker 1: that are record produces, people that are in the record
Speaker 1: business in different business but their talent is to produce records,
Speaker 1: not necessarily how to do business and in artists and
Speaker 1: all of the and stuff. So Paul can talk more
Speaker 1: about that. But I mean, I mean that is the
Speaker 1: fascinating thing about Paul is that he adopted to this.
Speaker 1: It was a new idea, but I knew he's gonna
Speaker 1: adopt and then only adopt, but also then add his
Speaker 1: intelligence and his know how do the whole thing and
Speaker 1: then make two and two become six. You know, so
Speaker 1: he defined math. I would say, uh, not being modest
Speaker 1: about it, I'm honest about it. I think I've very
Speaker 1: carefully chosen the people that I worked with, is Arnold.
Speaker 1: It's kind of my model to be people who do
Speaker 1: have that business gene and they may not have the
Speaker 1: finance background or the some of them may be great
Speaker 1: at math. Some of them aren't, but they have the
Speaker 1: business gene because when you don't have that gene, then
Speaker 1: it becomes very hard to work. And I learned from Arnold.
Speaker 1: I'd say, you know that that as looking for clients,
Speaker 1: that the people that I work with they have to
Speaker 1: have that instinct because otherwise they don't get it. And
Speaker 1: the people that I work with do get it. And
Speaker 1: a lot of it is time. People who are you know,
Speaker 1: athletes musicians actively don't necessarily a time, but they have
Speaker 1: to have the instinct. And also in some cases they
Speaker 1: have other people around them who were really good at business.
Speaker 1: So but but I learned a lot of this from Arnold,
Speaker 1: and I built this business based on lessons like work
Speaker 1: with someone who gets it and who has that instinct
Speaker 1: and that um aptitude. Also, which he hasn't said, but
Speaker 1: which is the lesson I think that he most importantly
Speaker 1: drilled into me at the beginning was authenticity, Like, don't
Speaker 1: do anything that is an authentic for the person. So
Speaker 1: if you have, you know, like when we did Beats
Speaker 1: by Dr Drey with Jimmy and Dre, well, what could
Speaker 1: be more authentic than uh, you know, a muse sick
Speaker 1: producer and a label executive, was also a producer and
Speaker 1: also an engineer. Come out with a headphone. You can't
Speaker 1: get more authentic, right, And so all all of the
Speaker 1: things that we've tried to do sort of tried to
Speaker 1: stay in that lane. And as I said, I learned
Speaker 1: a lot of that from Arnold. But again, if if
Speaker 1: you don't have the aptitude, it's very hard. So there
Speaker 1: are a lot of people who have it, they just
Speaker 1: haven't developed it. They haven't had the time, and they
Speaker 1: don't have the people around them, which is where I
Speaker 1: kind of come in. I'm someone around them who can
Speaker 1: help them develop that, and then I can also be
Speaker 1: helped by them because like they may be great at
Speaker 1: marketing or you know, or they may created sales, or
Speaker 1: they may be great at something else in business, which
Speaker 1: is what I found. So if you go, I mean,
Speaker 1: you know, Jimmy Ivy and as good a marketer as
Speaker 1: I think there is in the world, and as a
Speaker 1: label executive just so happens, he's great. This guy is
Speaker 1: like invented marketing, you know. And I think I mentioned
Speaker 1: to you that, you know, in about I was driving
Speaker 1: around on a golf cart with Warren Buffett. We were
Speaker 1: in a like golf tournament together and he I don't know.
Speaker 1: He says, has Arnold doing And I said, oh, he's great.
Speaker 1: You know this is obviously before governor stuff. And he said,
Speaker 1: what a brand? And I was like, what what do
Speaker 1: you mean? Goes Arnold's brand? Because he's an incredible brand.
Speaker 1: He's one of the best brands of the world. It's like,
Speaker 1: really like, I never had thought of that, because people
Speaker 1: didn't talk like that. Like today you go Arnold's brand,
Speaker 1: Lebron's a brand, right of the jay z is a brand,
Speaker 1: like there are people who are brands, and but at
Speaker 1: that time you didn't think like that. And again it
Speaker 1: goes back to the fact because the Mark Spitz or whoever,
Speaker 1: Joe Namath even they were endorsing things, so they were
Speaker 1: endorsing a brand that wasn't their brand. But listening to
Speaker 1: arnold story, one of the geniuses of all that was
Speaker 1: because as he traveled around the world promoting his movies,
Speaker 1: he was building his own brand until he was a brand,
Speaker 1: and his brand was bigger than the movies, than each
Speaker 1: individual movie. And that's where we are today, which is
Speaker 1: why I think when he can do something like the video,
Speaker 1: the Russian video he did. His brand is so big
Speaker 1: all over the world, in Russia everywhere that people know
Speaker 1: when they see him what that stands for. And that's
Speaker 1: the definition of a brand. They know it stands for
Speaker 1: honesty and authenticity and it's not like, oh, it just
Speaker 1: stands for someone who's shilling. And so I've really learned
Speaker 1: that and I've really tried to pick people who are
Speaker 1: authentic to that, you know, and and not ever to
Speaker 1: push like we were developing an Arnold's involved with this
Speaker 1: to a kill a company with Lebron and he's very
Speaker 1: passionate about it, but it's very honest. He loves tequila
Speaker 1: and he loves this tequila. At this point, what's the
Speaker 1: what's the point of pushing things that you're not honestly,
Speaker 1: And yet you look out in the world and what
Speaker 1: you see is a lot of people are sitting agents
Speaker 1: and lawyers and uh, people sitting around going oh, I
Speaker 1: represent so and so I better find some business to build. No,
Speaker 1: wait till they come to you and say, I love
Speaker 1: whatever you know. And another example with Arnold, which I
Speaker 1: I think it's really it's the Hummer example, because that
Speaker 1: was another deal he uh gave of the money to
Speaker 1: charity that but but he was driving around in a
Speaker 1: military hummer trying to push General Motors to build a
Speaker 1: civilian hummer. Well when he when the hummer, the civilian
Speaker 1: hummer came out, nobody doubted he wasn't. He wasn't like
Speaker 1: chilling for Bewick or old SMA, which wouldn't be believable
Speaker 1: maybe or say eighties would be believable or BMW. But
Speaker 1: Hummer was really believed. And so I think sticking to
Speaker 1: that is what works. And you know, in today's world,
Speaker 1: you know, it's it's gone a little sideways because you
Speaker 1: have people who are not celebrities who are so influential,
Speaker 1: they have a hundred and fifty followers and they've never
Speaker 1: done anything actually, and you know, I don't know, it's
Speaker 1: yet to be seen to me whether they can successfully
Speaker 1: build businesses. Obviously, the Kardashians have built some very successful businesses.
Speaker 1: They're kind of in a corn, you know, on another planet.
Speaker 1: But you know, one thing you know is that if
Speaker 1: you understand the brand of a person and they are
Speaker 1: selling something that's authentic to them, it's probably gonna work.
Speaker 1: I think when people see that, they know it is
Speaker 1: really this is what I think with Warren Buffett talked
Speaker 1: about because Warren Buffett, and it came to me, what
Speaker 1: do you think about this with me buying in a
Speaker 1: net Chet? And I said, the it's a great investment.
Speaker 1: And he said when you say that, said because I
Speaker 1: now fly a plane, a private plane, and he said,
Speaker 1: you're doing I said yeah. I said, but that disadvantage
Speaker 1: of the private plane is that you own is simply
Speaker 1: that you are now responsible for the plane. I only
Speaker 1: flied two hundred and fifty hours a year. What about
Speaker 1: the other seven dred and fifty hours? I say, imagine
Speaker 1: now with net Chet, I said, there is fractional ownerships
Speaker 1: that they're offering. Now, I said, you don't have to
Speaker 1: own just the whole plane yourself. You can own just
Speaker 1: a quarter. You're You're right. He bought in the company.
Speaker 1: We started tell him. Then he took me on the road.
Speaker 1: I went to Ireland, within the Scotland, to England, the orders,
Speaker 1: various different castles in everybody we had we had this
Speaker 1: presentation and he dragged me around all over the place
Speaker 1: to talk about my experience with the plane. Why because
Speaker 1: to show authenticity. Authenticity is the most important thing. Here's
Speaker 1: a guy, a celebrity that wants to fly with the
Speaker 1: commercial rain but can't because when he arrives with a
Speaker 1: commercial plane off the ten off flight, he's standing at
Speaker 1: the luggage area and then the people that bombardy him
Speaker 1: with autographs and pictures and this and that, so he
Speaker 1: you know, he can't do all of this and then
Speaker 1: get to the hotel quickly for the press conference. And
Speaker 1: there's so he's flying our private brain and so he
Speaker 1: got it is for me to talk about it enthusiastically
Speaker 1: about private plane flying and the advantages for executives. Is
Speaker 1: it he bought the company and he went through the
Speaker 1: roof and you know, one of course doesn't do anything
Speaker 1: that doesn't go through the roof, so he knows exactly
Speaker 1: how to do that. And he said, I admire him
Speaker 1: so much because he's kind of like really, when I
Speaker 1: visited his office, it was just you could really get
Speaker 1: it with a brilliant man. He is within operation, he
Speaker 1: has in order. So so this is the kind of
Speaker 1: people that I like to study. This is the kind
Speaker 1: of people that I like that that that helped me.
Speaker 1: He was the first one. Of course, they too endorsed
Speaker 1: me when I ragn for governor because he knew that
Speaker 1: I have the business mind. That's why I said, because
Speaker 1: I enjoys it, because you're the only one is the
Speaker 1: business mind amongst those politicians that can go India and
Speaker 1: straighten out the mess. It was really great to work
Speaker 1: with him. But it's all about authenticity. And so as
Speaker 1: you look at this sort of generation coming up, whether
Speaker 1: it's I mean like Lebron and others and even younger
Speaker 1: were at this time where this is a given some
Speaker 1: extent that an athlete, entertainer or a musician, they are
Speaker 1: going to start doing this at a very early age.
Speaker 1: What do you advise them? What's your advice to them?
Speaker 1: If if Paul introduces you to a new young audition,
Speaker 1: what what do you tell them? Help? And I have
Speaker 1: to write students and I feel like I'm in the
Speaker 1: carson right. The thing is because it would cost you money,
Speaker 1: because Paul and Mainstree Advices is not working for free.
Speaker 1: But as I always say that, if someone wants to
Speaker 1: take let's a ten percent of my business, of my
Speaker 1: money that he makes for me, I'm the happiest kind
Speaker 1: of the world that they have not n of money
Speaker 1: that the normally wouldn't have. So the bottom line is
Speaker 1: you need to know that this is a very very
Speaker 1: sophisticated and complicated world out there when it comes to business,
Speaker 1: and it is such an enormous potential that is available
Speaker 1: and the money is that you can make the whatever
Speaker 1: you're into, music, whatever, all? Would they know how he
Speaker 1: can connect you to businesses that it looks organic because
Speaker 1: you're involved in business. If you have a great talent,
Speaker 1: you're going through the roof, you're becoming very popular in
Speaker 1: your business. Make sure not to just think about your business,
Speaker 1: but there's also something like business business, and and and
Speaker 1: and you've got to concentrate on making one dollar and
Speaker 1: the two and you've got to concentrate on Okay, now
Speaker 1: you're twenty two years old and you're making millions of dollars.
Speaker 1: Would you really make those millions of dollars when you're
Speaker 1: sixty five, seventy and seventy five? How would you have
Speaker 1: that money? Then? Someone needs invested today. Someone has to
Speaker 1: be advising you. Someone is to guide you through. Every
Speaker 1: single person. If I go now and I want to
Speaker 1: learn how to do yoga, our hire yoga instructor. Every
Speaker 1: one of those actors that the mostitu stunts, they go
Speaker 1: to stunt guys to stunt coordinated and how to do
Speaker 1: stunts and the same things. With this, you cannot go
Speaker 1: and improvise on this. You've got to go and get
Speaker 1: the help that he's helping you guides through this. That
Speaker 1: is what my advice is that leg I said, it
Speaker 1: doesn't matter who you are. If you're talented and want
Speaker 1: some area in some area and you you're making a
Speaker 1: lot of money, your advice to someone knows how to
Speaker 1: make this money, make you know, multiply this and keep
Speaker 1: it and pay your taxes. In all of this, who's
Speaker 1: the next Arnold Paul? He's one of one? But how
Speaker 1: do you how do you in your business find a
Speaker 1: guy like this? Honestly, he's one of one, and anyone
Speaker 1: who could compare to him, right, I think that would
Speaker 1: be I think Lebron has a lot of character reminds
Speaker 1: me of aout as certain characteristics ever months um and
Speaker 1: that he's definitely not as good looking, You're not as tall,
Speaker 1: it's embarrassed, but he has certain some of the same characteristics,
Speaker 1: which are you know which drive success? I mean, you
Speaker 1: look at it, Lebron, you look at him and their
Speaker 1: unicorns right there. There's just you know, Lebron's obviously a
Speaker 1: lot younger, and he hasn't had three giant careers. But
Speaker 1: but the fact is he's breaking barriers and what he does,
Speaker 1: whether it's business wise or whether it's on the court.
Speaker 1: I mean, it's thirty seven year old, you know. I
Speaker 1: think Arnold is a model or I mean he's been
Speaker 1: a model for me for my business, but I think
Speaker 1: he's a model for a lot of other people out there.
Speaker 1: I think a lot of people look up to him
Speaker 1: and they understand that he he broke a lot of
Speaker 1: barriers and changed the game. Um. So you know, but
Speaker 1: even like, um, you know, at smaller levels, like I
Speaker 1: worked with Billie Eilish. You know she she for example,
Speaker 1: she gets authentic, right, she gets authentic. You know, we
Speaker 1: I helped her develop a fragrance. She has been obsessed
Speaker 1: with fragrance that she was ten years old. So she
Speaker 1: gets offers every day from every crypto company, every company
Speaker 1: you can think of. Right, She's probably the biggest star
Speaker 1: in the world, star one of the biggest, and she
Speaker 1: does she did fragrance because she loves fragrance. Right. Um,
Speaker 1: so I think that that lesson of authenticity, which is
Speaker 1: lost on many people. I try and keep that with
Speaker 1: my clients, but for some like her, it's natural. So
Speaker 1: how can you You can't compare a twenty year old
Speaker 1: girl and says she's arnold, but there's certain things about her.
Speaker 1: She's real and authentic and true to herself. That's what
Speaker 1: he is. Lebron is, That's what I see, that's what
Speaker 1: I look for. But honestly, he's the O G. He
Speaker 1: is And if you ask any of my clients who's
Speaker 1: the O G, they know that he's the O G.
Speaker 1: Because in many ways, you know, he broke a lot
Speaker 1: of molds and this whole idea of started talking about
Speaker 1: the business thing. You know, that's a big deal. That
Speaker 1: that's a big thing. That the idea of a celebrity
Speaker 1: influence or whatever you wanna call it owning their own
Speaker 1: business and building their business as opposed to just endorsing
Speaker 1: that is a big deal. That has made a lot
Speaker 1: of money for a lot of people. You know, Jay
Speaker 1: Z sold Randy this year. And you know, there's all
Speaker 1: these businesses out there that are where there's real there's
Speaker 1: also a lot of ones that fail, and there's a
Speaker 1: lot of ones that let's say they succeed and they don't.
Speaker 1: But not everything succeeds. But the fact is that the
Speaker 1: fact that you can do it and that you should
Speaker 1: do it. But what he said before is really important.
Speaker 1: You need to start with an idea, not with I
Speaker 1: want to do a bit. I see all the time.
Speaker 1: I want him I want to do a business, because
Speaker 1: I'm supposed to do a business, as opposed to I
Speaker 1: have an idea. How do I execute that idea? Who
Speaker 1: do I have around me to execute the idea? What?
Speaker 1: How authentic am I in that idea? So that's it.
Speaker 1: But I mean, I think you know I as you know,
Speaker 1: and you can tell you know I. I have a
Speaker 1: tremendous amount of respect. But I learned so much from
Speaker 1: Arnold because this was when I first met him. He
Speaker 1: was really right at the end of his body built.
Speaker 1: Really wasn't any different. All these things he's talking about
Speaker 1: today he was talking about and I really learned a
Speaker 1: lot because I I didn't come from you know, marketing.
Speaker 1: I didn't come I didn't come from celebrity. I came
Speaker 1: from Wall Street. That's a very different thing. And law,
Speaker 1: so you know, you have to learn these things. So
Speaker 1: I had a great thing. Any final thoughts aren't all
Speaker 1: that's a little commercially expectancy for fruit. And it just
Speaker 1: shows you the power that you just because if you're
Speaker 1: like me that if you feel comfortable, it's kind of
Speaker 1: like if it is not broken, don't fix it. So
Speaker 1: you know, if you works. I put it on, I
Speaker 1: couldn't even compared to anything else because I never used
Speaker 1: anything else. So I have now fifty two years lay
Speaker 1: I'm still doing. So this is the power of celebrity
Speaker 1: if you connect with the product. All right, well, let
Speaker 1: me ask you one more question, because I very generous
Speaker 1: with both of you. All these things that you identified
Speaker 1: are very critical, almost like fight geist mom right that
Speaker 1: I think they're happening in the broader culture. What do
Speaker 1: you see now as you think about like the business
Speaker 1: lens of Arnold, Like, what are you seeing out there
Speaker 1: now that excites? I think the apportunit is there. I
Speaker 1: think the opportunities are multiplying. I think that with the
Speaker 1: social media now it is opened up a whole new world.
Speaker 1: I think there's such wonderful kind of synergy that that
Speaker 1: can happen. I think we have to just be creative
Speaker 1: and creative. Remember that you can work. I've worked for many,
Speaker 1: many years from morning to night as a bricklayer working
Speaker 1: on construction when it first came to America and we
Speaker 1: made you know, let's say hundred dollars a day in
Speaker 1: the seventies. But all of that work, one good idea
Speaker 1: is the equivalent of ten years working every day on construction,
Speaker 1: just one good idea. That this is why I always say,
Speaker 1: you cannot go and work enough to make up for
Speaker 1: what idea spring. And so if you get a good
Speaker 1: idea and how to start a business or what business
Speaker 1: it ought to be, what you deals should be an
Speaker 1: offense kind of things. Um, that is where the money is.
Speaker 1: And so that that's why I say, peopould say the music.
Speaker 1: Do you think there's still all these opportunities out there
Speaker 1: that you once had? Would you still be a successful
Speaker 1: if you would come up with the data America? I
Speaker 1: say absolutely, this is still the land of opportunity, especially
Speaker 1: now that we have a choice. You can go and
Speaker 1: go all in and being just American products and just
Speaker 1: American company, or you want to go global, you can global.
Speaker 1: You have the choices today. That is the great thing.
Speaker 1: And it is unbelievable about the stuff that is out there.
Speaker 1: Look at the amount of money that the people are
Speaker 1: making every day. You have to do the right move.
Speaker 1: So I have great hope. I think the key thing
Speaker 1: is that we get the group that the right help.
Speaker 1: And that's why I always say, and any of my
Speaker 1: kind of success speeches, I always say, remember I'm not
Speaker 1: a self made man. What you see in front of
Speaker 1: you is a creation by thousands of people, and it's
Speaker 1: still a work in progress. You know, because if I
Speaker 1: think about the teachers that helped me, My parents did
Speaker 1: help me. The coaches that helped me, Joe we are
Speaker 1: bringing me to America, been Weeda, you know, exploring me
Speaker 1: and and kind of helping me with the FTB within
Speaker 1: in the National Federation of Bodybuilding, Franco Colombo that was
Speaker 1: training with me, Paul walked that it was helping me
Speaker 1: with my investments. I mean it goes the list goes
Speaker 1: on and on and on. President Bush that maybe the
Speaker 1: chairman of the President's Counsel and Fitness which made me
Speaker 1: travel all over the United States. It was like the
Speaker 1: California people five point eight million people that voted for
Speaker 1: me to become governor. How can I ever say I'm
Speaker 1: a self made man I would have. I cannot make
Speaker 1: myself to be governor. So all of these millions and
Speaker 1: millions of people, and thousands of them they were closely
Speaker 1: working with me helped me. So get help. Don't be
Speaker 1: afraid of asking to get help. This is where the
Speaker 1: action is to reach out and get helped. My thanks
Speaker 1: to Arnold Schwarzenegger and Paul Walkeder for their time and insights.
Speaker 1: You've been listening to a special edition of Masters in Business.
Speaker 1: I'm Jason Kelly. For more on Paul walker and his
Speaker 1: work advising Arnold, Lebron and Moore, check out our story
Speaker 1: about main Street advisors on the Bloomberg Terminal and at
Speaker 1: Bloomberg dot com. Thanks for listening.