1 00:00:00,080 --> 00:00:03,120 Speaker 1: Billion dollar companies don't run on budgets. They run on 2 00:00:03,400 --> 00:00:06,680 Speaker 1: balance sheets, and that one difference explains why they grow 3 00:00:06,720 --> 00:00:09,400 Speaker 1: into giants while households doing everything they were told to 4 00:00:09,440 --> 00:00:11,880 Speaker 1: do struggle just to keep up. You were trained to 5 00:00:11,960 --> 00:00:16,520 Speaker 1: manage money like a consumer. Companies they're trained to structure capital. 6 00:00:16,800 --> 00:00:18,279 Speaker 1: Now you can do the same thing. You may not 7 00:00:18,280 --> 00:00:20,400 Speaker 1: get the same results, but you can learn to play 8 00:00:20,680 --> 00:00:23,560 Speaker 1: the same game. And once you see how to play 9 00:00:23,600 --> 00:00:26,119 Speaker 1: by these rules, you're never going to look at money 10 00:00:26,160 --> 00:00:29,920 Speaker 1: the exact same way. So let's go. We're gonna jump 11 00:00:30,000 --> 00:00:32,320 Speaker 1: right into this one today because I have an exciting 12 00:00:32,400 --> 00:00:35,400 Speaker 1: lesson for you. It's going to change everything. Teach you 13 00:00:35,440 --> 00:00:37,440 Speaker 1: how to go from a consumer to a company, run 14 00:00:37,479 --> 00:00:39,880 Speaker 1: a billion dollar company, but for yourself. Now, to really 15 00:00:39,960 --> 00:00:42,680 Speaker 1: illustrate this before we dig into how you can apply 16 00:00:42,680 --> 00:00:45,720 Speaker 1: this to your own situation, let's use an example, all right. 17 00:00:45,880 --> 00:00:49,680 Speaker 1: So this is the strategy, and it's these strategies presented 18 00:00:49,680 --> 00:00:52,559 Speaker 1: by a company called micro Strategy, formerly a micro Strategy, 19 00:00:52,560 --> 00:00:55,120 Speaker 1: and now they've turned the name changed the name to Strategy. 20 00:00:55,400 --> 00:00:58,560 Speaker 1: And Michael Saylor, who runs at literally has the playbook 21 00:00:58,600 --> 00:01:00,800 Speaker 1: the strategy, and he's been going around to corporation to 22 00:01:00,840 --> 00:01:04,480 Speaker 1: corporation to corporation, and he's been teaching people the strategy 23 00:01:04,480 --> 00:01:06,480 Speaker 1: on how to do it as well as you guys 24 00:01:06,560 --> 00:01:09,200 Speaker 1: already know. You've seen my interviews with Michael Saylor. We'll 25 00:01:09,240 --> 00:01:11,840 Speaker 1: link to some down below. I've got to spend quite 26 00:01:11,840 --> 00:01:13,479 Speaker 1: a bit of time with him. I've figured out how 27 00:01:13,480 --> 00:01:17,319 Speaker 1: to take his strategy for corporations and apply it to 28 00:01:17,440 --> 00:01:20,080 Speaker 1: our own personal situation. But let's just look at how 29 00:01:20,120 --> 00:01:22,559 Speaker 1: powerful this is. First of all, so now Strategy which 30 00:01:22,640 --> 00:01:26,360 Speaker 1: is formerly micro Strategy. Their ticker is MSTR and this 31 00:01:26,480 --> 00:01:28,039 Speaker 1: is not a commercial about that. I'm not telling you 32 00:01:28,040 --> 00:01:31,200 Speaker 1: to buy it. But they were, you know, a software business. 33 00:01:31,240 --> 00:01:35,000 Speaker 1: They've been a digital software business, a SaaS business for 34 00:01:35,040 --> 00:01:37,479 Speaker 1: a long time. The problem is that they weren't really 35 00:01:37,520 --> 00:01:40,440 Speaker 1: able to compete against the big ones like Microsoft, and 36 00:01:40,480 --> 00:01:42,639 Speaker 1: so while they were making a good amount of money, 37 00:01:42,840 --> 00:01:46,479 Speaker 1: in twenty twenty, Michael Saylor was stuck. The revenues were flat, 38 00:01:46,760 --> 00:01:48,960 Speaker 1: the stock wasn't going up, and he found himself at 39 00:01:48,960 --> 00:01:52,280 Speaker 1: this crossroads where like they're making revenue and it's enough, 40 00:01:52,320 --> 00:01:54,120 Speaker 1: but he's not able to grow the business. He can't 41 00:01:54,160 --> 00:01:57,200 Speaker 1: grow the revenue anymore. Maybe like your own personal situation. 42 00:01:57,840 --> 00:01:59,680 Speaker 1: The stock wasn't going up, and he didn't know what 43 00:01:59,720 --> 00:02:02,600 Speaker 1: to do with his money, and so he decided to 44 00:02:02,720 --> 00:02:05,760 Speaker 1: do something drastic with the company, and he decided to 45 00:02:05,880 --> 00:02:09,640 Speaker 1: build a financial architecture. All right, and this is what 46 00:02:09,840 --> 00:02:11,720 Speaker 1: changed everything. I'm gonna break this down for you, but 47 00:02:11,800 --> 00:02:14,480 Speaker 1: by changing the financial architecture of the company from going 48 00:02:14,520 --> 00:02:17,280 Speaker 1: from a revenue based, a P and L based company, 49 00:02:17,680 --> 00:02:20,200 Speaker 1: to a treasury based company. Right, so it's a bitcoin 50 00:02:20,280 --> 00:02:24,600 Speaker 1: treasury strategy company, treasury strategy being the key piece. So 51 00:02:24,600 --> 00:02:26,600 Speaker 1: when he went from that P and L based to 52 00:02:26,720 --> 00:02:29,320 Speaker 1: a treasury based everything changed. How big did it changed. 53 00:02:29,520 --> 00:02:31,160 Speaker 1: Let's take a look at this. So what we can 54 00:02:31,200 --> 00:02:34,440 Speaker 1: see since they did that move in twenty twenty, you 55 00:02:34,440 --> 00:02:36,959 Speaker 1: can see the performance against a bunch of other assets. 56 00:02:37,280 --> 00:02:41,040 Speaker 1: Micro Strategy MSTR stock is up eighty three percent and 57 00:02:41,080 --> 00:02:44,760 Speaker 1: it's beaten everything else. You have Bitcoin way down here, 58 00:02:44,960 --> 00:02:47,680 Speaker 1: the Magnificent seven, the mag seven, twenty eight percent gold, 59 00:02:48,000 --> 00:02:50,040 Speaker 1: SMP five under real estate, money and bonds, et cetera. 60 00:02:50,240 --> 00:02:53,880 Speaker 1: So it's been crushing performance over the last five years 61 00:02:54,200 --> 00:02:57,720 Speaker 1: because of the shift and the financial architecture that they did. 62 00:02:57,840 --> 00:02:59,640 Speaker 1: Let's take a look at a couple other charts real quick. 63 00:02:59,760 --> 00:03:02,040 Speaker 1: Now how does it rank against some of the really 64 00:03:02,080 --> 00:03:06,000 Speaker 1: big dogs. So this is bitcoin's strategies, bitcoin holdings versus 65 00:03:06,040 --> 00:03:08,680 Speaker 1: the biggest corporate treasure. So you hear about the big companies, 66 00:03:08,680 --> 00:03:10,800 Speaker 1: the mag seven and how much cash they have sitting 67 00:03:10,840 --> 00:03:14,200 Speaker 1: on huge stockpiles of cash. Berkshire Hathaway, Warren Buffets company 68 00:03:14,480 --> 00:03:15,920 Speaker 1: is at the top of the power right here, three 69 00:03:16,040 --> 00:03:19,200 Speaker 1: hundred and forty four billion. We have Amazon, Google, Microsoft, 70 00:03:19,240 --> 00:03:22,960 Speaker 1: and then here we have strategy right here, sitting right 71 00:03:23,000 --> 00:03:27,799 Speaker 1: here at number five. And just five years ago they 72 00:03:27,840 --> 00:03:30,600 Speaker 1: were like teetering on the verge of going out of business, 73 00:03:30,880 --> 00:03:34,040 Speaker 1: and now they find themselves in the top five companies 74 00:03:34,120 --> 00:03:36,960 Speaker 1: in the world with how big their strategy is. Their 75 00:03:37,000 --> 00:03:40,280 Speaker 1: stock has been one of the best performing stocks in 76 00:03:40,320 --> 00:03:43,040 Speaker 1: the S and P five hundred because of the strategy. 77 00:03:43,240 --> 00:03:45,960 Speaker 1: And you can take a look at this robust capital structure. 78 00:03:46,040 --> 00:03:49,400 Speaker 1: So their enterprise value of strategy is basically one hundred 79 00:03:49,400 --> 00:03:53,280 Speaker 1: billion dollars ninety billion dollars, their market cap eighty three billion, 80 00:03:54,120 --> 00:03:57,600 Speaker 1: and they have bitcoin. They have seventy one billion dollars 81 00:03:58,360 --> 00:04:00,640 Speaker 1: a bitcoin. Also they have debts. We're going to get 82 00:04:00,640 --> 00:04:02,120 Speaker 1: into how they do this. So you can figure ou 83 00:04:02,120 --> 00:04:03,880 Speaker 1: how to do it for yourself. They have debt, but 84 00:04:03,920 --> 00:04:06,280 Speaker 1: look how small the debt is. They got eight billion 85 00:04:06,320 --> 00:04:08,960 Speaker 1: of debt and six billion of debt, so they have 86 00:04:09,080 --> 00:04:13,760 Speaker 1: thirteen or fourteen billion dollars of debt against one hundred 87 00:04:13,920 --> 00:04:16,720 Speaker 1: billion dollars of assets. I think we'll take those loan 88 00:04:16,760 --> 00:04:19,000 Speaker 1: to values every day of the week and we can 89 00:04:19,000 --> 00:04:21,040 Speaker 1: take a look and see exactly how they did this. 90 00:04:21,520 --> 00:04:24,520 Speaker 1: So they've grown to six hundred and forty thousand bitcoin 91 00:04:25,120 --> 00:04:28,880 Speaker 1: they have against seventy one billion dollars a bitcoin their 92 00:04:29,000 --> 00:04:32,680 Speaker 1: acquisition cost, not their debt, but their acquisition cost was 93 00:04:32,720 --> 00:04:35,960 Speaker 1: forty seven billion, So they're sitting on, you know, roughly 94 00:04:36,120 --> 00:04:40,919 Speaker 1: thirty billion dollars of profit of their acquisition cost, and 95 00:04:40,960 --> 00:04:42,920 Speaker 1: again a lot of it they've used debt. But again 96 00:04:42,960 --> 00:04:45,279 Speaker 1: they're about thirteen billion dollars a debt for one hundred 97 00:04:45,279 --> 00:04:49,280 Speaker 1: billion dollars of enterprise value. So they've taken the market cap, 98 00:04:49,320 --> 00:04:51,599 Speaker 1: and this is a key piece. They've taken their market cap. 99 00:04:51,640 --> 00:04:53,480 Speaker 1: You and I might think of our net worth or 100 00:04:53,480 --> 00:04:58,400 Speaker 1: our balance sheet from three point six billion to ninety 101 00:04:58,440 --> 00:05:02,359 Speaker 1: eight billion in five years by switching from a revenue 102 00:05:02,400 --> 00:05:06,000 Speaker 1: based P and L based company to a treasury based company, 103 00:05:06,200 --> 00:05:08,120 Speaker 1: and we're going to break that down for you. Now, 104 00:05:08,880 --> 00:05:11,359 Speaker 1: a couple of things we want to understand. First of all, 105 00:05:11,640 --> 00:05:15,200 Speaker 1: most people they were and most of us as people 106 00:05:15,520 --> 00:05:17,920 Speaker 1: have been playing the wrong game. And a lot of 107 00:05:17,960 --> 00:05:19,440 Speaker 1: the reason why we're playing the wrong game was because 108 00:05:19,480 --> 00:05:22,360 Speaker 1: the rules changed. One of my favorite stories is of 109 00:05:22,520 --> 00:05:24,640 Speaker 1: Einstein when he was a professor at college and every 110 00:05:24,720 --> 00:05:27,200 Speaker 1: year he'd give out the same test and one year 111 00:05:27,520 --> 00:05:29,400 Speaker 1: one of his assistants came up. The teaching assistants came 112 00:05:29,440 --> 00:05:31,600 Speaker 1: up to him and said, Einstein, you know, kind of sheepeshly, 113 00:05:32,360 --> 00:05:35,320 Speaker 1: I'm not sure if you're aware, but you gave out 114 00:05:35,320 --> 00:05:37,800 Speaker 1: the same test that you gave out last year. And 115 00:05:38,400 --> 00:05:42,320 Speaker 1: Einstein's like, yeah, so, and the assistants like, well, I 116 00:05:42,360 --> 00:05:45,440 Speaker 1: mean the students from last year will have the answers 117 00:05:45,480 --> 00:05:47,719 Speaker 1: and they could share them and people could cheat. And 118 00:05:47,760 --> 00:05:50,760 Speaker 1: he said, now the answers changed, not the questions, the 119 00:05:50,800 --> 00:05:53,920 Speaker 1: answers changed. And so things changed, and so our financial 120 00:05:53,960 --> 00:05:56,520 Speaker 1: system changed. We went from a debt from an equity based, 121 00:05:56,520 --> 00:05:59,200 Speaker 1: goal based system to a debt based monetary system. And 122 00:05:59,480 --> 00:06:02,560 Speaker 1: what schools are teaching you, or lack of teaching you today, 123 00:06:02,720 --> 00:06:06,240 Speaker 1: don't equip you properly, so the wrong game. Personally, we 124 00:06:06,279 --> 00:06:09,359 Speaker 1: think about budget. How much income do I have? What 125 00:06:09,440 --> 00:06:11,680 Speaker 1: are my bills? How much budget do I have left? 126 00:06:11,720 --> 00:06:14,400 Speaker 1: If I have anything left, maybe I can save a 127 00:06:14,480 --> 00:06:17,640 Speaker 1: little bit. I need to work harder because my cost 128 00:06:17,640 --> 00:06:20,320 Speaker 1: of living keeps getting more and more expensive. I'm not 129 00:06:20,520 --> 00:06:23,440 Speaker 1: saving enough. I'll put in overtime. I'll try to get 130 00:06:23,480 --> 00:06:25,760 Speaker 1: a side house. So I'm gonna work harder. I'm gonna 131 00:06:25,800 --> 00:06:28,800 Speaker 1: be extremely disciplined. I'm gonna skip that coffee in the 132 00:06:28,839 --> 00:06:30,920 Speaker 1: morning because if I, you know, five bucks a day, 133 00:06:30,960 --> 00:06:32,600 Speaker 1: they'll skip at Starbucks. I can put in there. We're 134 00:06:32,600 --> 00:06:34,479 Speaker 1: gonna do all that, and I'm gonna try to pay 135 00:06:34,520 --> 00:06:36,839 Speaker 1: down my debt as quick as possible, because you know, 136 00:06:36,880 --> 00:06:38,360 Speaker 1: all these things are piling up. If I pay my 137 00:06:38,400 --> 00:06:40,440 Speaker 1: debt down, I can get my expenses down. That's what 138 00:06:40,440 --> 00:06:42,760 Speaker 1: people are thinking personally, and I get it right like it. 139 00:06:43,120 --> 00:06:45,560 Speaker 1: It's like a drowning tide. The cost of living keeps 140 00:06:45,600 --> 00:06:49,360 Speaker 1: going up faster then your income is going up, and 141 00:06:49,400 --> 00:06:52,200 Speaker 1: no amount of budget thinking, no amount of working harder, 142 00:06:52,240 --> 00:06:54,800 Speaker 1: no amount of discipline saving, and no amount of paying 143 00:06:54,800 --> 00:06:57,200 Speaker 1: you're down. Your debt is going to solve that you're 144 00:06:57,240 --> 00:06:59,440 Speaker 1: sort of like in the micro strategy twenty twenty phase 145 00:06:59,520 --> 00:07:03,000 Speaker 1: or pre twenty two on a corporate side, they use 146 00:07:03,440 --> 00:07:05,720 Speaker 1: the balance sheet. We're going to break this down for you. 147 00:07:05,760 --> 00:07:10,840 Speaker 1: Don't worry. They learned how to apply leverage. They used 148 00:07:10,960 --> 00:07:13,680 Speaker 1: those balance sheet and the leverage to grow their wealth. 149 00:07:13,760 --> 00:07:17,600 Speaker 1: Micro strategy went from three point six billion to one 150 00:07:17,680 --> 00:07:20,840 Speaker 1: hundred billion. Imagine doing that your on portfolio, and they 151 00:07:20,840 --> 00:07:23,480 Speaker 1: did it with leveraging debt. Let's break all this down 152 00:07:24,320 --> 00:07:28,040 Speaker 1: so you can see how this plays out. Okay, why 153 00:07:28,400 --> 00:07:31,320 Speaker 1: this fails though? Right, Like I said, the answer has changed. 154 00:07:31,520 --> 00:07:34,320 Speaker 1: So everything that we were taught, everything that we learned, 155 00:07:34,480 --> 00:07:36,720 Speaker 1: like I said, through school or parents, however we learned it, 156 00:07:36,720 --> 00:07:39,480 Speaker 1: it's wrong. And then there's a few reasons why. Number One, 157 00:07:39,720 --> 00:07:43,080 Speaker 1: inflation is a structural force. Okay, so why this fails 158 00:07:43,360 --> 00:07:47,600 Speaker 1: is you have the wrong frame. You have the wrong structure. Right. 159 00:07:47,760 --> 00:07:49,480 Speaker 1: It's not that your intentions are wrong. It's not that 160 00:07:49,520 --> 00:07:51,840 Speaker 1: your effort is wrong, for sure, right, you're working hard, 161 00:07:51,920 --> 00:07:54,960 Speaker 1: but you have the wrong structure and frame. Inflation is 162 00:07:55,040 --> 00:07:59,320 Speaker 1: this structural force. Inflation is doing two things simultaneous. They 163 00:07:59,360 --> 00:08:01,720 Speaker 1: want it is taking the value out. So what's making 164 00:08:02,160 --> 00:08:06,640 Speaker 1: our life get more expensive, but it's also creating debasement, 165 00:08:06,920 --> 00:08:09,560 Speaker 1: and it's offsetting the discipline. So no matter how much 166 00:08:09,600 --> 00:08:12,160 Speaker 1: more I work, no matter how much more I skimp 167 00:08:12,200 --> 00:08:15,760 Speaker 1: on my Starbucks and I save, the debasement is greater 168 00:08:15,920 --> 00:08:19,800 Speaker 1: than my discipline. The rate of debasement is growing faster 169 00:08:19,920 --> 00:08:22,320 Speaker 1: than I can save. And the problem that we run 170 00:08:22,360 --> 00:08:24,600 Speaker 1: into is we find out that our cash flow because 171 00:08:24,600 --> 00:08:26,920 Speaker 1: we're managing our p and l right our budget, I 172 00:08:27,000 --> 00:08:28,880 Speaker 1: need to make more income. I need more cash flow. 173 00:08:28,960 --> 00:08:31,280 Speaker 1: Like micro Strategy was trying to get more cash flow, 174 00:08:31,480 --> 00:08:34,440 Speaker 1: but they couldn't. They couldn't grow against Microsoft, sort of 175 00:08:34,480 --> 00:08:36,520 Speaker 1: like you might be in your own personal finances. They 176 00:08:36,520 --> 00:08:38,960 Speaker 1: couldn't get enough cash flow. The cash flow is fragile 177 00:08:39,120 --> 00:08:41,480 Speaker 1: because the cash flow they got was earning less and 178 00:08:41,559 --> 00:08:43,400 Speaker 1: less and less and less and less all the time. 179 00:08:44,400 --> 00:08:47,040 Speaker 1: So what they learned is that the position that they 180 00:08:47,080 --> 00:08:49,240 Speaker 1: take their assets in on their balance sheet, the position 181 00:08:49,640 --> 00:08:53,719 Speaker 1: that they create, is greater than any budget. Rather than 182 00:08:53,760 --> 00:08:56,400 Speaker 1: trying to compete be a better competitor against Microsoft to 183 00:08:56,440 --> 00:08:58,920 Speaker 1: make more money, they just learned how to position their 184 00:08:58,960 --> 00:09:00,760 Speaker 1: balance sheet better. And we can do the same thing. 185 00:09:01,360 --> 00:09:04,960 Speaker 1: So we want to stop managing money for short term performance, 186 00:09:05,840 --> 00:09:09,000 Speaker 1: and we want to start just change our structure, start 187 00:09:09,120 --> 00:09:12,400 Speaker 1: structuring capital for the long term advantage. I'm gonna give 188 00:09:12,400 --> 00:09:14,400 Speaker 1: you some illustrations of ways you can do this. I 189 00:09:14,520 --> 00:09:18,079 Speaker 1: call it modern wealth alchemy. You would call Michael Saylor 190 00:09:18,120 --> 00:09:20,319 Speaker 1: a financial engineer, whatever you want to call it. I'll 191 00:09:20,320 --> 00:09:22,560 Speaker 1: show you some exact examples of how you can do 192 00:09:22,600 --> 00:09:24,320 Speaker 1: this on your own. All right, So in order to 193 00:09:24,360 --> 00:09:28,000 Speaker 1: really understand how we mobilize our balance sheet, how we 194 00:09:28,160 --> 00:09:30,400 Speaker 1: change the structure, we have to learn a new term. 195 00:09:30,400 --> 00:09:34,839 Speaker 1: I call it the balance sheet asymmetry. All right, it's asymmetric. 196 00:09:35,200 --> 00:09:39,080 Speaker 1: We have assets and liabilities on our balance sheet, right 197 00:09:39,440 --> 00:09:41,920 Speaker 1: on your P and L. Your assets, minasure liabilities. But 198 00:09:41,960 --> 00:09:45,200 Speaker 1: what you have to understand is that they react different 199 00:09:45,520 --> 00:09:49,160 Speaker 1: to inflation. The inflation is the structural force that you 200 00:09:49,200 --> 00:09:52,480 Speaker 1: weren't taught to manage, but it's there. It's powerful, it 201 00:09:52,480 --> 00:09:55,120 Speaker 1: has power over your life. But the assets and liabilities 202 00:09:55,160 --> 00:09:59,640 Speaker 1: don't react the same. They react differently. That's the asymmetry. Inflation, 203 00:09:59,800 --> 00:10:02,280 Speaker 1: as I already told you, crushes your cash flows, your 204 00:10:02,360 --> 00:10:04,560 Speaker 1: cash flows that you're bringing in. You're working harder, trying 205 00:10:04,559 --> 00:10:06,400 Speaker 1: to get more customers, trying to get squeeze more money 206 00:10:06,400 --> 00:10:09,120 Speaker 1: from your customers. But the inflation is stealing the power, 207 00:10:09,160 --> 00:10:13,000 Speaker 1: the purchasing power from that cash flow. That's bad. It 208 00:10:13,160 --> 00:10:20,000 Speaker 1: reacts differently. But the inflation destroys or decays, I like destroys, 209 00:10:20,280 --> 00:10:24,200 Speaker 1: destroys my fixed liabilities. So if I have long term debt, 210 00:10:24,280 --> 00:10:25,959 Speaker 1: right because the money's getting worth less and less and 211 00:10:26,000 --> 00:10:28,000 Speaker 1: less right now, my payment. Let's say I have a 212 00:10:28,000 --> 00:10:30,560 Speaker 1: thirty year fixed note, I'm paying a thousand bucks a month. 213 00:10:30,720 --> 00:10:32,680 Speaker 1: One thousand bucks a month today is one thing, but 214 00:10:32,720 --> 00:10:35,640 Speaker 1: one thousand bucks a month and twenty years is hardly anything. 215 00:10:36,400 --> 00:10:41,319 Speaker 1: So the inflation destroys my income and it also destroys 216 00:10:41,320 --> 00:10:44,160 Speaker 1: my debt. You see how those assets say work differently. 217 00:10:44,440 --> 00:10:48,800 Speaker 1: So assets, you have assets, and you have liabilities. We 218 00:10:48,880 --> 00:10:50,440 Speaker 1: have to look at those different on the balance sheet, 219 00:10:50,600 --> 00:10:53,240 Speaker 1: and then we have to understand the duration of those 220 00:10:53,640 --> 00:10:57,040 Speaker 1: and then we can have the proper structure. I'm going 221 00:10:57,120 --> 00:10:59,600 Speaker 1: to break all this down for you. But this allows 222 00:10:59,679 --> 00:11:03,560 Speaker 1: the same person homeowner A and homeowner B. It allows 223 00:11:03,600 --> 00:11:10,600 Speaker 1: the same company micro Strategy or Strategy Strategy's main business model. 224 00:11:11,040 --> 00:11:14,840 Speaker 1: They still sell the software. They're not out competing Microsoft. 225 00:11:15,040 --> 00:11:17,720 Speaker 1: It's not a better company they just went from micro 226 00:11:17,720 --> 00:11:21,960 Speaker 1: strategy to strategy. They started leveraging the treasury strategy. Same person, 227 00:11:22,080 --> 00:11:27,520 Speaker 1: same company, but two wildly different outcomes, two wildly different outcomes. Literally, 228 00:11:27,760 --> 00:11:31,320 Speaker 1: micro Strategy had five hundred million dollars, not a small 229 00:11:31,320 --> 00:11:34,080 Speaker 1: amount of money. Today they have one hundred billion. Now, 230 00:11:34,120 --> 00:11:36,120 Speaker 1: if you want to learn how these two different people, 231 00:11:36,120 --> 00:11:39,680 Speaker 1: these two different corporations can actually build out these separate paths, 232 00:11:39,960 --> 00:11:41,520 Speaker 1: I'm going to have a live event for this. I'll 233 00:11:41,520 --> 00:11:43,440 Speaker 1: be live right from this stage, and I'm gonna give 234 00:11:43,440 --> 00:11:46,440 Speaker 1: you dozens of ideas and practical applications of ways that 235 00:11:46,480 --> 00:11:48,200 Speaker 1: you can keep more of your income and you can 236 00:11:48,240 --> 00:11:50,760 Speaker 1: get it growing faster than you've ever imagined through wealth 237 00:11:50,880 --> 00:11:53,400 Speaker 1: arbitrage engineering. I'll put a link down below here. I'll 238 00:11:53,400 --> 00:11:54,640 Speaker 1: put a QR code on the screen if you want 239 00:11:54,640 --> 00:11:56,120 Speaker 1: to come check it out. You don't want to miss it. 240 00:11:56,160 --> 00:11:57,640 Speaker 1: I do it one time per year. But let's just 241 00:11:57,720 --> 00:11:59,640 Speaker 1: keep going on this video. I know you're not gonna 242 00:11:59,679 --> 00:12:03,360 Speaker 1: like this, but most of us think that debt is bad. 243 00:12:04,160 --> 00:12:07,360 Speaker 1: That's bad, that's dangerous. I'm gonna pay my debt as 244 00:12:07,400 --> 00:12:09,560 Speaker 1: quick as I can. I'm gonna try and pay my 245 00:12:09,559 --> 00:12:12,839 Speaker 1: mortgage off faster. If I put two extra payments a year, 246 00:12:12,840 --> 00:12:15,160 Speaker 1: I can pay my mortgage off sooner right, pay off 247 00:12:15,200 --> 00:12:17,400 Speaker 1: my credit cards, all those things. But we have to 248 00:12:17,440 --> 00:12:20,880 Speaker 1: understand that debt is not bad. It's not necessarily good either. 249 00:12:21,720 --> 00:12:24,600 Speaker 1: Debt is a tool. It so I'm good or bad. 250 00:12:25,080 --> 00:12:27,680 Speaker 1: Debt is a tool, and it comes down to how 251 00:12:27,720 --> 00:12:30,920 Speaker 1: do we use the debt? How do we use the tool? 252 00:12:30,960 --> 00:12:33,880 Speaker 1: Now back to the answers have changed because today we 253 00:12:33,960 --> 00:12:36,920 Speaker 1: live in a debt based monetary system. We write that 254 00:12:36,960 --> 00:12:45,160 Speaker 1: here debt based. That means that money is created through debt. 255 00:12:45,720 --> 00:12:47,079 Speaker 1: When you get a house, to car, a boat loan, 256 00:12:47,160 --> 00:12:49,439 Speaker 1: that money is created out of thin air, meaning that 257 00:12:49,520 --> 00:12:52,480 Speaker 1: the money, the dollars that you're given is the liability 258 00:12:52,640 --> 00:12:55,640 Speaker 1: and the debt becomes the asset. The debt is the 259 00:12:55,679 --> 00:12:58,719 Speaker 1: asset and it's collateral for more debt. So if we're 260 00:12:58,720 --> 00:13:01,040 Speaker 1: in a debt based monetary system, then the way to 261 00:13:01,160 --> 00:13:04,960 Speaker 1: build wealth is with debt, and you can try to 262 00:13:05,040 --> 00:13:07,800 Speaker 1: save your way to wealth. But you have the structural 263 00:13:07,800 --> 00:13:11,280 Speaker 1: problem of inflation. So we have to understand that debt 264 00:13:11,360 --> 00:13:13,680 Speaker 1: is a tool, and just like in a tool, it 265 00:13:13,679 --> 00:13:16,920 Speaker 1: can be misused. It can be dangerous. For example, a knife. 266 00:13:17,559 --> 00:13:19,960 Speaker 1: A knife is very dangerous, like you could cut yourself, 267 00:13:20,000 --> 00:13:22,640 Speaker 1: you could kill somebody, You could really hurt yourself, which 268 00:13:22,640 --> 00:13:25,040 Speaker 1: is why you don't let little kids play with sharp knives. 269 00:13:25,160 --> 00:13:27,079 Speaker 1: They don't really know how to handle it properly and 270 00:13:27,080 --> 00:13:29,680 Speaker 1: they could really do harm. As you get older and 271 00:13:29,679 --> 00:13:31,840 Speaker 1: become an adult, you learn how to manage the knife. 272 00:13:32,000 --> 00:13:34,599 Speaker 1: Once in a while, we might still cut ourselves a 273 00:13:34,640 --> 00:13:37,000 Speaker 1: little bit while we're in the kitchen or something like that, right, 274 00:13:37,320 --> 00:13:39,319 Speaker 1: but we've learned how to manage it goodness, so it's 275 00:13:39,320 --> 00:13:42,400 Speaker 1: not catastrophic for us. So we learned to use the tool. 276 00:13:42,520 --> 00:13:46,720 Speaker 1: Debt is a tool now personally, most people are thinking 277 00:13:46,760 --> 00:13:49,840 Speaker 1: about eliminating debt. Right so I'm looking at my budget 278 00:13:49,840 --> 00:13:51,480 Speaker 1: every month. I'm trying to pay off my debt as 279 00:13:51,520 --> 00:13:54,320 Speaker 1: quick as I can. My goal is to be debt free. 280 00:13:54,640 --> 00:13:56,240 Speaker 1: There's a whole rabbit hole I can go down on that. 281 00:13:56,360 --> 00:14:01,560 Speaker 1: But companies, companies aren't trying to do that. Debt. All 282 00:14:01,679 --> 00:14:03,720 Speaker 1: the mag seven those companies that I showed you the top, 283 00:14:03,840 --> 00:14:07,800 Speaker 1: all the companies have more cash than MicroStrategy. They also 284 00:14:07,880 --> 00:14:12,240 Speaker 1: have billions of dollars of debt. Why because they engineer 285 00:14:12,440 --> 00:14:15,240 Speaker 1: wealth with debt. Again, This is the difference of the 286 00:14:15,280 --> 00:14:18,760 Speaker 1: average consumer versus a company. All right, So reframe your 287 00:14:18,760 --> 00:14:23,920 Speaker 1: brain around that. Now, leverage is what redefines our ability 288 00:14:24,000 --> 00:14:28,920 Speaker 1: to restructure our balance sheet and engineer this wealth. Leverage. 289 00:14:29,360 --> 00:14:30,880 Speaker 1: We can talk about this from a bunch of ways, 290 00:14:30,920 --> 00:14:34,960 Speaker 1: but in this context, the institutional definition is the ability 291 00:14:35,000 --> 00:14:40,240 Speaker 1: to control assets greater than the equity base that I have. 292 00:14:41,200 --> 00:14:43,800 Speaker 1: I only have one hundred thousand dollars, but I could 293 00:14:43,880 --> 00:14:48,120 Speaker 1: probably go control a million dollar property worth one hundred 294 00:14:48,160 --> 00:14:52,240 Speaker 1: thousand dollars. My equity base is one hundred K, but 295 00:14:52,320 --> 00:14:57,280 Speaker 1: I can control a million dollar asset. That's leverage. Now 296 00:14:57,280 --> 00:14:59,440 Speaker 1: why does that matter? Well, if I pay cash for 297 00:14:59,480 --> 00:15:02,160 Speaker 1: one hundred K property and it goes up let's say 298 00:15:02,200 --> 00:15:05,320 Speaker 1: ten percent, that means it's now one hundred and ten K. 299 00:15:05,640 --> 00:15:10,280 Speaker 1: I made ten If the same million dollar asset goes 300 00:15:10,320 --> 00:15:16,720 Speaker 1: up by ten percent, that's one hundred k. Now, which 301 00:15:16,760 --> 00:15:18,800 Speaker 1: is greater one hundred K or ten K. But what's 302 00:15:18,800 --> 00:15:22,120 Speaker 1: even greater is the one hundred K on one hundred 303 00:15:22,160 --> 00:15:25,960 Speaker 1: k investment. That's one hundred percent return versus this person 304 00:15:26,000 --> 00:15:28,040 Speaker 1: got a ten percent return, which is better a ten 305 00:15:28,080 --> 00:15:31,520 Speaker 1: percent return or hund percent return. You're starting to get it. Okay, 306 00:15:32,040 --> 00:15:34,400 Speaker 1: we're just scratching the surface. Stick with me here. So 307 00:15:34,880 --> 00:15:38,720 Speaker 1: all companies are leveraged. They're all leveraged and it's not bad. 308 00:15:38,960 --> 00:15:41,280 Speaker 1: And it's not because they don't have three hundred billion 309 00:15:41,360 --> 00:15:43,840 Speaker 1: dollars in the bank. Even though they have three hundred 310 00:15:43,840 --> 00:15:46,480 Speaker 1: million dollars in the bank, they still might have billions 311 00:15:46,520 --> 00:15:50,040 Speaker 1: of dollars of debt because they're using it for leverage. 312 00:15:50,240 --> 00:15:53,240 Speaker 1: You have to understand that fragility is the risk here. 313 00:15:53,360 --> 00:15:56,520 Speaker 1: It's not the leverage that's the risk, the fragility of 314 00:15:56,560 --> 00:15:58,080 Speaker 1: not being able to manage it properly, not be able 315 00:15:58,080 --> 00:16:00,000 Speaker 1: to manage the knife properly. So rather than saying I'll 316 00:16:00,120 --> 00:16:02,280 Speaker 1: ever use a knife again, no, just learn how to 317 00:16:02,360 --> 00:16:05,080 Speaker 1: use the knife. Learn how to put in protection measures 318 00:16:05,280 --> 00:16:07,840 Speaker 1: into the knife so we don't cut ourselves. Instead of 319 00:16:07,960 --> 00:16:10,680 Speaker 1: not going in the pool, just take swimming lessons or 320 00:16:10,680 --> 00:16:13,960 Speaker 1: wear a life jacket. Right, Okay, Now, in order to 321 00:16:13,960 --> 00:16:15,880 Speaker 1: take this to the next step, I'm going to show 322 00:16:15,880 --> 00:16:17,640 Speaker 1: you some examples of how you can do this. But 323 00:16:17,680 --> 00:16:19,920 Speaker 1: I need to lay down the framework and the groundwork 324 00:16:19,960 --> 00:16:22,600 Speaker 1: for you. Okay, structural arbitrage. My goal is to teach 325 00:16:22,600 --> 00:16:27,040 Speaker 1: you the strategies, the principles. There's thousands of ways that 326 00:16:27,080 --> 00:16:29,000 Speaker 1: you can apply these principles, and once you start to 327 00:16:29,080 --> 00:16:31,680 Speaker 1: understand it, they're going to see opportunities everywhere and you 328 00:16:31,760 --> 00:16:34,040 Speaker 1: be able to create money almost out of thin air 329 00:16:34,640 --> 00:16:37,440 Speaker 1: financial engineering like what Sailor's done. Be able to do that. 330 00:16:37,600 --> 00:16:40,200 Speaker 1: So I'm teaching you the strategies, teach you the structure, 331 00:16:40,280 --> 00:16:42,520 Speaker 1: teach you the principles. So now we want to understand 332 00:16:42,640 --> 00:16:46,840 Speaker 1: arbitrage and we want to understand the structural arbitrage. Okay, 333 00:16:46,880 --> 00:16:49,880 Speaker 1: So in this wealth engineering that we're doing, trying to 334 00:16:49,920 --> 00:16:52,800 Speaker 1: engineer o a balance sheet, we want to understand the structure. 335 00:16:52,920 --> 00:16:55,640 Speaker 1: And we have to understand that arbitrage isn't the price 336 00:16:56,160 --> 00:16:58,520 Speaker 1: of things that we pay. Arbitrage is not the value 337 00:16:58,560 --> 00:17:01,960 Speaker 1: of our assets. Arbitrage is the structure that we create 338 00:17:02,160 --> 00:17:05,400 Speaker 1: for our assets to move in so we can benefit 339 00:17:05,520 --> 00:17:08,239 Speaker 1: between them. All right, So we have to realize that 340 00:17:08,480 --> 00:17:11,080 Speaker 1: parts of our balance sheet, so all the different things, 341 00:17:11,480 --> 00:17:15,000 Speaker 1: the buildings or the equipment or the whatever that you 342 00:17:15,040 --> 00:17:18,399 Speaker 1: own on your balance sheet, they behave different. Different things 343 00:17:18,520 --> 00:17:20,960 Speaker 1: are different. And the reason why is some debt might 344 00:17:20,960 --> 00:17:24,240 Speaker 1: be fixed, so thirty year fixed loans. Some might be floating, 345 00:17:24,480 --> 00:17:26,680 Speaker 1: you know, a credit card to adjust monthly for example 346 00:17:26,720 --> 00:17:29,320 Speaker 1: cars or five or six or seven years. Right, we 347 00:17:29,359 --> 00:17:34,240 Speaker 1: have short duration versus long duration assets and loans and 348 00:17:34,359 --> 00:17:38,280 Speaker 1: leverage assets adjust versus fixed liabilities. And so we have 349 00:17:38,280 --> 00:17:40,360 Speaker 1: to understand that we have different assets. They work differently. 350 00:17:40,880 --> 00:17:43,440 Speaker 1: A lot of times we can organize them to work differently, 351 00:17:43,640 --> 00:17:45,920 Speaker 1: but we can get them to work against each other. 352 00:17:46,280 --> 00:17:47,600 Speaker 1: What we want to do is we want to think 353 00:17:47,600 --> 00:17:51,399 Speaker 1: about our balance sheet as liquid. So again a balance sheet, right, 354 00:17:51,440 --> 00:17:54,400 Speaker 1: you have all your assets, your house, your business, your 355 00:17:54,760 --> 00:17:58,960 Speaker 1: office space, your car, your equipment that you have, et cetera. 356 00:17:59,280 --> 00:18:02,480 Speaker 1: So this is your ass sets. And then down here 357 00:18:02,600 --> 00:18:05,680 Speaker 1: you have your liabilities. And now I have my house loan, 358 00:18:06,080 --> 00:18:08,800 Speaker 1: my office loan, my car loan, and then down here 359 00:18:09,040 --> 00:18:11,440 Speaker 1: you have your net worth. But what I want to 360 00:18:11,480 --> 00:18:13,560 Speaker 1: do is I want to think about all these things 361 00:18:13,600 --> 00:18:17,160 Speaker 1: here as liquid. I'm able to mobilize them, I'm able 362 00:18:17,200 --> 00:18:20,439 Speaker 1: to move them, I'm able to leverage them. Because the 363 00:18:20,680 --> 00:18:24,760 Speaker 1: idle balance sheets decay. What do I mean by that? Well, 364 00:18:24,880 --> 00:18:27,359 Speaker 1: for example, one of this items on my balance sheet 365 00:18:27,680 --> 00:18:29,879 Speaker 1: is my four oh one K. Let's say, so I 366 00:18:30,000 --> 00:18:31,919 Speaker 1: have this money, this is in my four oh one 367 00:18:32,000 --> 00:18:36,240 Speaker 1: K and it's in a mutual fund and it's making 368 00:18:36,280 --> 00:18:39,840 Speaker 1: me whatever eight percent a year. Okay, So even though 369 00:18:39,840 --> 00:18:42,080 Speaker 1: that asset is there and it's making the eight percent, 370 00:18:42,240 --> 00:18:45,439 Speaker 1: it's decaying. It's losing value. And so that's what happens 371 00:18:45,440 --> 00:18:47,919 Speaker 1: when assets sit idle on our balance sheet. We have 372 00:18:47,920 --> 00:18:50,920 Speaker 1: to learn how to mobilize them to get greater than 373 00:18:51,080 --> 00:18:53,240 Speaker 1: the rate of debasement. As we talked about earlier. Now, 374 00:18:53,400 --> 00:18:56,159 Speaker 1: cash is the fuel that allows us to do this. 375 00:18:56,200 --> 00:18:58,320 Speaker 1: So when we start adding in the leverage, we start 376 00:18:58,320 --> 00:19:00,640 Speaker 1: adding in the arbitrage. The cash is able to help 377 00:19:00,640 --> 00:19:03,760 Speaker 1: offset that. But the cash is the fuel to the system. 378 00:19:03,960 --> 00:19:05,720 Speaker 1: It's not the safety and the system because as we 379 00:19:05,720 --> 00:19:08,960 Speaker 1: talked about earlier, the cash is also being destroyed by 380 00:19:09,040 --> 00:19:11,720 Speaker 1: the structural inflation that we have in the system. Now Here, 381 00:19:11,800 --> 00:19:14,919 Speaker 1: intent matters more than the size. So you don't have 382 00:19:14,960 --> 00:19:16,280 Speaker 1: to think that I have to go be as big 383 00:19:16,320 --> 00:19:19,439 Speaker 1: as micro strategy. You can just start really small. And 384 00:19:19,480 --> 00:19:21,440 Speaker 1: I'll give you some examples. Actually i'll give you one 385 00:19:21,480 --> 00:19:23,359 Speaker 1: that you could probably do, most people could probably do 386 00:19:23,480 --> 00:19:26,479 Speaker 1: right away, but real quickly. Here's how we would apply this. 387 00:19:26,600 --> 00:19:29,280 Speaker 1: If we're a personal like a homeowner, a consumer, or 388 00:19:29,400 --> 00:19:31,600 Speaker 1: if we're a business. So number one, if you're a person, 389 00:19:31,920 --> 00:19:34,600 Speaker 1: you know, you probably see what Sailor has done with 390 00:19:34,680 --> 00:19:36,840 Speaker 1: micro strategy and you thought like, well, that's cool that 391 00:19:36,880 --> 00:19:38,760 Speaker 1: he was able to turn three point six billion into 392 00:19:38,760 --> 00:19:41,800 Speaker 1: one hundred billion. But I can't do that. I mean 393 00:19:41,880 --> 00:19:44,240 Speaker 1: I don't have a public company. I can't go tap 394 00:19:44,280 --> 00:19:50,040 Speaker 1: into the public equity markets and the public debt markets. Okay, 395 00:19:50,200 --> 00:19:52,840 Speaker 1: you probably can't. If you don't have a corporation or 396 00:19:52,880 --> 00:19:54,919 Speaker 1: I'm sorry, a public to trade tout corporation, then you 397 00:19:54,920 --> 00:19:58,439 Speaker 1: probably can't tap into the public credit debt markets. But 398 00:19:58,720 --> 00:20:01,480 Speaker 1: you can still get debt. You can still get credit, 399 00:20:01,760 --> 00:20:03,720 Speaker 1: you still have equity. So what do I mean by that? 400 00:20:03,920 --> 00:20:06,640 Speaker 1: So personally, you have a balance sheet, right, I mean 401 00:20:06,680 --> 00:20:10,440 Speaker 1: at least you should a home, a car, a business, right, 402 00:20:10,520 --> 00:20:12,679 Speaker 1: some sort of assets of stocks. Right, So you have 403 00:20:12,680 --> 00:20:14,840 Speaker 1: something on your balance sheet, and if not, start working 404 00:20:14,880 --> 00:20:18,600 Speaker 1: on that. First. Secondly, you should have credit available to you. 405 00:20:19,359 --> 00:20:21,719 Speaker 1: If your credit's bad, clean it up. Go on chat 406 00:20:21,760 --> 00:20:23,600 Speaker 1: youpt you figure out to clean up your credit. Start 407 00:20:23,640 --> 00:20:25,840 Speaker 1: applying for credit cards. Go down to your bank, apply 408 00:20:25,920 --> 00:20:29,040 Speaker 1: for a personal line of credit. Start applying for credit cards. 409 00:20:29,119 --> 00:20:30,399 Speaker 1: I know a lot of people who are getting one 410 00:20:30,440 --> 00:20:33,320 Speaker 1: hundred thousand, sometimes two hundred thousand dollars credit cards with 411 00:20:33,359 --> 00:20:35,520 Speaker 1: like zero percent APR for twelve months and then you 412 00:20:35,520 --> 00:20:37,800 Speaker 1: can just roll the balance. And then again you may 413 00:20:37,840 --> 00:20:39,280 Speaker 1: have equity. So maybe you have a home with some 414 00:20:39,280 --> 00:20:41,199 Speaker 1: equity in it, a car with some equity in it. 415 00:20:41,440 --> 00:20:43,919 Speaker 1: So you have both credit and equity available to you. 416 00:20:43,920 --> 00:20:46,080 Speaker 1: Now that's if you're just a consumer person, you know, 417 00:20:46,119 --> 00:20:48,520 Speaker 1: personal et cetera. If you're a business, you have the 418 00:20:48,560 --> 00:20:51,000 Speaker 1: same three. So you also have balance sheet, credit lines, 419 00:20:51,000 --> 00:20:53,480 Speaker 1: and equities for both personally and on a business standpoint. 420 00:20:53,680 --> 00:20:56,760 Speaker 1: But now you also probably have business financing available to you. 421 00:20:57,040 --> 00:20:58,480 Speaker 1: So now through your bank you can probably get like 422 00:20:58,560 --> 00:21:01,840 Speaker 1: business lines of credit. Also you have the business equity 423 00:21:01,880 --> 00:21:05,160 Speaker 1: as well. So even if you have a small entrepreneurial, 424 00:21:05,560 --> 00:21:08,520 Speaker 1: solo preneur type business, sometimes you can sell equity to 425 00:21:08,560 --> 00:21:10,920 Speaker 1: a private investor. You have a million dollar business, sell 426 00:21:10,960 --> 00:21:13,600 Speaker 1: thirty percent for three hundred grand, bring the three hundred 427 00:21:13,640 --> 00:21:16,040 Speaker 1: grand forward. That's what Michael Saylor is doing with micro 428 00:21:16,119 --> 00:21:19,600 Speaker 1: Strategy when he sells the common stock, the MSTR stock 429 00:21:20,119 --> 00:21:23,280 Speaker 1: into the market. Now you might say, well, but I 430 00:21:23,320 --> 00:21:25,560 Speaker 1: can't get it near as cheap as he can I'm 431 00:21:25,560 --> 00:21:27,960 Speaker 1: going to pay way more on my credit line, on 432 00:21:28,040 --> 00:21:30,480 Speaker 1: my credit card, et cetera. Well, one of the ways 433 00:21:30,480 --> 00:21:32,800 Speaker 1: that he's raising money right now is through selling the 434 00:21:32,840 --> 00:21:37,920 Speaker 1: preferreds Strike, Strife, Stride, and Stretch. So you buy Stretch 435 00:21:38,000 --> 00:21:40,800 Speaker 1: and he gives you a cupe on payment. So, for example, 436 00:21:40,920 --> 00:21:43,800 Speaker 1: Stretch is paying about ten point seventy five percent. I 437 00:21:43,840 --> 00:21:47,120 Speaker 1: think Strife is about twelve twelve and a half percent. 438 00:21:47,800 --> 00:21:50,600 Speaker 1: So I'm pretty sure you could probably get credit for 439 00:21:50,760 --> 00:21:53,960 Speaker 1: less than twelve percent, which is what he's paying. Those 440 00:21:53,960 --> 00:21:55,400 Speaker 1: are ways that you can do that. But let's break 441 00:21:55,440 --> 00:21:58,000 Speaker 1: down an actual example so you can see how this works. 442 00:21:58,280 --> 00:22:01,160 Speaker 1: So again i'm teaching you to the principles. I'm teaching 443 00:22:01,200 --> 00:22:04,000 Speaker 1: the strategy. You can apply this a thousand different ways, 444 00:22:04,040 --> 00:22:06,520 Speaker 1: but here's one that most people could probably take advantage of. 445 00:22:06,760 --> 00:22:09,280 Speaker 1: So let's say that I have a home, and for 446 00:22:09,400 --> 00:22:12,240 Speaker 1: easy numbers, let's say that I owe one hundred thousand 447 00:22:12,280 --> 00:22:14,720 Speaker 1: on it, but it's worth two hundred thousand, so I 448 00:22:14,760 --> 00:22:19,600 Speaker 1: have one hundred thousand of equity. Okay. Now you might say, 449 00:22:19,600 --> 00:22:21,359 Speaker 1: but Mark, I don't have a home. Okay, well, then 450 00:22:21,400 --> 00:22:23,080 Speaker 1: figure out another way to get equity. Like I said, 451 00:22:23,200 --> 00:22:24,960 Speaker 1: go apply for some credit cards, go to your bank, 452 00:22:25,760 --> 00:22:27,600 Speaker 1: get a loaning a'st your car, like, figure it out. 453 00:22:27,640 --> 00:22:30,040 Speaker 1: But you're gonna need some equity. Okay, So I'm pulling 454 00:22:30,080 --> 00:22:32,200 Speaker 1: out equity. I can get a home equity line of credit. 455 00:22:32,200 --> 00:22:34,320 Speaker 1: I can refinance my house, and I'm gonna take this 456 00:22:34,440 --> 00:22:37,159 Speaker 1: money that's sitting here. It's in the house, it's on 457 00:22:37,320 --> 00:22:40,560 Speaker 1: my balance sheet, right, it's on my balance sheet, but 458 00:22:40,560 --> 00:22:43,000 Speaker 1: it's decaying because it's not keeping up with the rate 459 00:22:43,040 --> 00:22:46,320 Speaker 1: of debasement. So I can unlock what I call lazy 460 00:22:46,560 --> 00:22:49,399 Speaker 1: because it's not working very hard or dormant capital. So 461 00:22:49,440 --> 00:22:51,840 Speaker 1: I take the one hundred thousand and I bring it 462 00:22:51,880 --> 00:22:53,919 Speaker 1: over here. What do I do with it? I'm probably 463 00:22:53,920 --> 00:22:56,080 Speaker 1: gonna pay you know, I don't know seven or eight 464 00:22:56,119 --> 00:22:59,520 Speaker 1: percent interest on that. So now I've taken one hundred grand, 465 00:22:59,520 --> 00:23:01,080 Speaker 1: but I owe seven or eight percent. What am I 466 00:23:01,080 --> 00:23:02,400 Speaker 1: gonna do? How am I going to afford to seven 467 00:23:02,440 --> 00:23:05,760 Speaker 1: eight percent? Let's engineer that. Okay. So what if I 468 00:23:05,800 --> 00:23:08,000 Speaker 1: took the one hundred k and I put it into 469 00:23:08,119 --> 00:23:12,919 Speaker 1: a product like micro Strategy has STRK and that's paying 470 00:23:12,920 --> 00:23:16,679 Speaker 1: me about nine point five percent. Well, now I have 471 00:23:16,760 --> 00:23:21,000 Speaker 1: about a one point five percent what we call positive carry. 472 00:23:21,359 --> 00:23:24,600 Speaker 1: That means I'm actually getting paid for taking money out 473 00:23:24,600 --> 00:23:26,320 Speaker 1: of here and holding it here. But it gets even 474 00:23:26,359 --> 00:23:29,240 Speaker 1: better because this can be if you set it up properly, 475 00:23:29,280 --> 00:23:34,160 Speaker 1: tax deductible, and this is also tax deferred, which means 476 00:23:34,200 --> 00:23:36,919 Speaker 1: instead of one point five, I'm probably making closer to 477 00:23:37,040 --> 00:23:41,080 Speaker 1: four percent for sitting on that four percent money that 478 00:23:41,160 --> 00:23:42,840 Speaker 1: was just sitting there doing nothing. Now I'm making four percent. 479 00:23:42,880 --> 00:23:45,720 Speaker 1: But it gets better because what strike does is it's 480 00:23:45,800 --> 00:23:50,240 Speaker 1: convertible to shares of mstr once it gets to one 481 00:23:50,280 --> 00:23:54,119 Speaker 1: thousand dollars a share, So if it gets over that, 482 00:23:54,160 --> 00:23:56,080 Speaker 1: then it converts up. So not only am I getting 483 00:23:56,080 --> 00:23:59,440 Speaker 1: four percent for waiting, I have the potential upside. What 484 00:23:59,440 --> 00:24:01,719 Speaker 1: does that mean. Well, currently, let's say a micro strategy 485 00:24:01,760 --> 00:24:04,280 Speaker 1: has six hundred and fifty thousand bitcoin. They'll probably have 486 00:24:04,320 --> 00:24:06,359 Speaker 1: a million by twenty thirty in the next four or 487 00:24:06,400 --> 00:24:08,680 Speaker 1: five years. Bitcoin is probably going to hit a million 488 00:24:08,720 --> 00:24:11,200 Speaker 1: in the next four to six years. So a million 489 00:24:11,200 --> 00:24:14,320 Speaker 1: bitcoin at a million dollars is a trillion dollars. Let's 490 00:24:14,320 --> 00:24:16,640 Speaker 1: say right now they're at a one point one times 491 00:24:16,880 --> 00:24:19,080 Speaker 1: m NAV. I know this is a lot of lingo 492 00:24:19,160 --> 00:24:22,200 Speaker 1: for you, meaning they're trading a little bit more than 493 00:24:22,200 --> 00:24:26,280 Speaker 1: their net asset valuation. But historically it should be around two. 494 00:24:26,560 --> 00:24:28,080 Speaker 1: But let's just say it gets back to like one 495 00:24:28,080 --> 00:24:31,080 Speaker 1: point twenty five, all right, So that's a zero point 496 00:24:31,080 --> 00:24:35,280 Speaker 1: twenty five multiplication multiple on their net asset value. That 497 00:24:35,359 --> 00:24:38,000 Speaker 1: would put it at one share of micro strategy around 498 00:24:38,000 --> 00:24:41,280 Speaker 1: three thousand dollars thirty one hundred dollars. I'm getting paid 499 00:24:41,359 --> 00:24:43,879 Speaker 1: four percent for doing nothing and just for making a 500 00:24:43,920 --> 00:24:47,440 Speaker 1: couple moves, and then in four or five years this 501 00:24:47,480 --> 00:24:50,120 Speaker 1: could turn. You know, I'm buying stock and it's going 502 00:24:50,200 --> 00:24:52,400 Speaker 1: up big time. I had this big capital gains. Now, 503 00:24:52,600 --> 00:24:54,439 Speaker 1: don't get caught up in the weeds on this. This 504 00:24:54,560 --> 00:24:57,760 Speaker 1: is just one strategy where I can unlock dormant capital, 505 00:24:57,880 --> 00:25:01,040 Speaker 1: lazy capital. Doing one job, decay one my balance sheet. 506 00:25:01,480 --> 00:25:04,080 Speaker 1: I can leverage my balance sheet. So hey, look at 507 00:25:04,080 --> 00:25:07,439 Speaker 1: the bank. I have these assets. They'll give you credit 508 00:25:07,560 --> 00:25:10,320 Speaker 1: because of the strength of your balance sheet. Then I 509 00:25:10,359 --> 00:25:13,879 Speaker 1: can apply it make a positive arbitrage, and then I 510 00:25:13,920 --> 00:25:16,520 Speaker 1: can apply it in something that provides the positive arbitrage 511 00:25:16,560 --> 00:25:18,960 Speaker 1: and gives me more upsides. Two In four or five years, 512 00:25:19,400 --> 00:25:21,440 Speaker 1: maybe I have enough to retire. It depends on all 513 00:25:21,480 --> 00:25:23,800 Speaker 1: of these functions here, but hopefully you understand that now. 514 00:25:23,840 --> 00:25:26,760 Speaker 1: This is one of like dozens of strategies that I 515 00:25:26,840 --> 00:25:29,639 Speaker 1: teach inside the wealth operating systems. The wealth operating system 516 00:25:29,680 --> 00:25:32,359 Speaker 1: is all about wealth engineering. How do we create these 517 00:25:32,680 --> 00:25:35,400 Speaker 1: environments to keep more of our income by tax deferral 518 00:25:35,800 --> 00:25:37,720 Speaker 1: or you know, tax savings, and then how do we 519 00:25:37,800 --> 00:25:40,160 Speaker 1: multiply faster getting our money to do one job, two jobs, 520 00:25:40,200 --> 00:25:43,159 Speaker 1: three jobs. If you'd like to learn dozens more strategies 521 00:25:43,200 --> 00:25:45,399 Speaker 1: just like this, I'm going to have a live event 522 00:25:45,440 --> 00:25:47,399 Speaker 1: for three days right from this stage right here, called 523 00:25:47,440 --> 00:25:50,520 Speaker 1: the Wealth Operating System Accelerator Live Event. I'll put a 524 00:25:50,560 --> 00:25:52,359 Speaker 1: link to it down below. Put a QR code on 525 00:25:52,400 --> 00:25:55,400 Speaker 1: the screen right here. It's January seventh. I'm gonna teach 526 00:25:55,400 --> 00:25:58,080 Speaker 1: you how to save more time, how to multiply your 527 00:25:58,080 --> 00:26:00,600 Speaker 1: wealth faster than ever, save money and taxes so you 528 00:26:00,640 --> 00:26:02,520 Speaker 1: can multiply even faster with having to make more money, 529 00:26:02,600 --> 00:26:04,800 Speaker 1: work harder, all those things. You don't want to miss it. 530 00:26:04,840 --> 00:26:06,919 Speaker 1: I'm only doing it one time per year, and it's 531 00:26:06,960 --> 00:26:08,679 Speaker 1: going to be live right here from this stage. I'll 532 00:26:08,680 --> 00:26:10,640 Speaker 1: put a link down below. Hopefully I'll see you there, 533 00:26:10,680 --> 00:26:12,720 Speaker 1: but let me know what you think about this. Can 534 00:26:12,760 --> 00:26:15,600 Speaker 1: you run your portfolio or your balance sheet like a 535 00:26:15,640 --> 00:26:18,280 Speaker 1: billion dollar corporation? Yes or no? Drop in the comments 536 00:26:18,280 --> 00:26:20,040 Speaker 1: down below. As I always say, at the end to 537 00:26:20,119 --> 00:26:21,720 Speaker 1: your success, I'm out.