Bitcoin vs. The U.S. Dollar: The Financial War That Will Change Everything | Anthony Pompliano PT 1

In this compelling episode of "Impact Theory with Tom Bilyeu," Tom is joined by the insightful Anthony Pompliano, a prominent investor and a fervent advocate for cryptocurrency. Known for his no-nonsense approach to investing and economics, Anthony dives deep into the world of finance to shed light on where and how people should be investing today. The conversation explores evergreen investment strategies, the technological revolution reshaping industries, and the potential of cryptocurrencies like Bitcoin. Anthony’s unique perspective helps unravel the complexities of today's market dynamics, as he emphasizes the importance of automation, discipline in investment, and the undeniable impact of technological advancements on global economies. Join Tom and Anthony as they discuss timeless investment principles, the shift from industrial to software-oriented businesses over the last 50 years, and the remarkable influence of cultural energy on market success. Whether you're an amateur or seasoned investor, this episode promises invaluable insights into the strategic allocation of your financial resources. SHOWNOTES 00:00 Intro 00:10 Timeless Investment Principles 00:54 Dollar Cost Averaging Explained 01:37 Competitive Advantage in Investing 02:29 Shift from Industrial to Software-Based Economy 03:59 Concentration in the S&P 500 05:19 Cultural Energy and Investment Trends 07:04 Traditional vs. Technological Investments 09:04 A New Era of Technological Change FOLLOW ANTHONY: Twitter: https://twitter.com/APompliano YouTube: https://www.youtube.com/@APompliano CHECK OUT OUR SPONSORS Range Rover: Range Rover: Explore the Range Rover Sport at https://landroverUSA.com https://landroverusa.com Audible: Sign up for a free 30 day trial at https://audible.com/IMPACTTHEORY https://audible.com/IMPACTTHEORY1 Vital Proteins: Get 20% off by going to https://www.vitalproteins.com and entering promo code IMPACT at check out iTrust Capital: Use code IMPACT when you sign up and fund your account to get a $100 bonus at https://www.itrustcapital.com/tombilyeu Tax Network USA: Stop looking over your shoulder and put your IRS troubles behind you. Call 1-800-958-1000 or visit https://tnusa.com/impact ButcherBox: Choose either grass-fed ground beef, top sirloin or organic chicken breast to get free in every box for an entire year. Plus, get an extra $20 off your first box when you use code IMPACT at https://butcherbox.com/impact What's up, everybody? It's Tom Bilyeu here: If you want my help... STARTING a business:join me here at ZERO TO FOUNDER https://tombilyeu.com/zero-to-founder?utm_campaign=Podcast%20Offer&utm_source=podca[%E2%80%A6]d%20end%20of%20show&utm_content=podcast%20ad%20end%20of%20show SCALING a business:see if you qualify here. https://tombilyeu.com/call Get my battle-tested strategies and insights delivered weekly to your inbox:sign up here. https://tombilyeu.com/ ********************************************************************** If you're serious about leveling up your life, I urge you to check out my new podcast,Tom Bilyeu’s Mindset Playbook https://open.spotify.com/show/47VE90Cittmo6TGGFqg2xf —a goldmine of my most impactful episodes on mindset, business, and health. Trust me, your future self will thank you. ********************************************************************** Join me live on myTwitch stream https://impacttheory.co/4fitmnJ. I'm live daily from 6:30 to 8:30 am PT atwww.twitch.tv/tombilyeu https://impacttheory.co/4fitmnJ ********************************************************************** Looking for more inspiration? Check out The best Serial Entrepreneur podcasts https://podcast.feedspot.com/serial_entrepreneur_podcasts/?feedid=5651453&_src=f1_featured_email#show_more_btn from thousands of podcasts on the web and ranked by relevancy, authority, social media followers & freshness ********************************************************************** LISTEN TO IMPACT THEORY AD FREE + BONUS EPISODES on APPLE PODCASTS:apple.co/impacttheory http://apple.co/impacttheory ********************************************************************** FOLLOW TOM: Instagram:https://www.instagram.com/tombilyeu/ Tik Tok:https://www.tiktok.com/@tombilyeu?lang=en Twitter:https://twitter.com/tombilyeu YouTube:https://www.youtube.com/@TomBilyeu Learn more about your ad choices. Visit megaphone.fm/adchoices https://megaphone.fm/adchoices See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Tom Bilyeu?

  Let's talk about the moment your side hustle becomes a real business. Now, I see way too many founders stay stuck running their business like it's a hobby. And then they wonder why nothing ever feels real. It doesn't feel real because it's not. I've helped thousands of entrepreneurs build real businesses through Impact Theory University. And the first step in the path to building a legit business is registering it. And Taylor Brands will help you do just that in a few clicks. An LLC, a limited liability company, is an official business structure. It's inexpensive to form and very simple to maintain. It's how you open a business bank account. It's how customers know they're dealing with a real company. And Taylor Brands doesn't stop at the filing.

• 0:45Tom Bilyeu?

  Their dashboard tracks what comes next based on what your business actually needs. So EIN number, registered agent, licenses and permits, bookkeeping, business banking. I tell every founder the same thing, just make it official. Click the link in the show notes to check out Taylor Brands and get started on your business today. This is a paid advertisement. I'm Tom Bilyeu and this is Impact Theory. I've been asking myself a question a lot lately. Have the markets completely disconnected from reality? It used to be that investing was about finding strong companies, understanding their value, and making smart calculated moves for the long run. But today, we've got meme coins soaring, AI-driven trading,

• 1:27Tom Bilyeu?

  and billion-dollar valuations on companies with no fundamentals. This isn't just market volatility. This is a total rewrite of how wealth is created. And that's why I wanted to bring back today's guest. He has his finger on the pulse of these massive shifts, and I need him to help me make sense of what's really going on. Is Bitcoin still the best hedge against economic chaos? Will AI traders outmaneuver us all? And when we see a US president launching a meme coin, what does that say about where we're headed? If you're still thinking about money and investing the way that you did five years ago, it is time for an update. This conversation is about making sure you're not the one left holding the bag. So without further ado, here's my sit-down with the one and only Anthony Pompliano.

• 2:14Tom Bilyeu?

  If you would, give me a 2025 investing primer. I want to know for the person who just wants like a set and forget investing strategy, where should they be putting their money right now?

• 2:25Speaker 01

  Well, each person is different, right? Some people have different risk profiles. Other people have different knowledge sets. But I think that a lot of the timeless investing principles are really important. So you should basically create a system that you can automate. And it pays to pay yourself first. So what most people do is they get paid, they take the money, they spend it on all their expenses, and they hope there's a little bit of money left over. But a great way to ensure that you're able to invest is to actually take out of your paycheck your investment money first and then spend what is left over. So that's kind of the first thing is you got to get money to be able to invest. Then what do you do with that investment money? And really, I think for the average person, what you want to be able to do is you want a dollar cost average. Every time you get a paycheck, you want to take some portion of it. You want to put it into the S and P 500, NASDAQ, and then I like Bitcoin as well.

• 3:09Speaker 01

  And the reason why those three assets is because they likely have very long-term resilience. They have a return profile that is pretty good. And also, they're very simple to understand. You kind of know what you're buying. I think where people tend to get in trouble is if you are a amateur, but you are trying to make professional moves. And so I say, just like the person who goes and plays pickup basketball on the Saturday wouldn't try to go play in the NBA, I don't think that the person who says, hey, I'm going to spend 30 minutes a month on the investing world should try to go and pick individual stocks or use leverage or short things or anything like that. And so understand kind of what your knowledge set is, understand what your kind of competitive advantage would be. And for the average person, it's actually discipline.

• 3:54Speaker 01

  Just simply continue to dollar cost average into very simple kind of plan and then let time and the market do its thing and usually turns out pretty well for those people.

• 4:04Tom Bilyeu?

  All right. When I look at the market now, it feels like something is changing. It could be that I just only have one lifetime. I've only been paying attention for so long, but it feels like things are really collapsing down to very few assets. So when I look at the S and P 500, that to me is synonymous with the S and P 7, AKA the magnificent seven, that that's driving the bulk of the returns. That if you really just look, and I think I've heard you say this before, if you were even just to focus on AI and Bitcoin, you would have mopped up most of the recent gains. Is it atypical for things to collapse down to so few assets? Or is this really just a different moment?

• 4:44Speaker 01

  Yeah, what's really interesting is if you take the US economy in general, it has gone through a shift over the last 50 years or so. It used to be that the US economy was dominated by industrial businesses, manufacturing businesses. You can think of these companies as businesses that created physical things for the physical world. And so whether it was car manufacturers or construction or home builders, et cetera. But we've transitioned very much to a world where now you have what is considered these kind of capital light businesses. They're pretty much software oriented. They're able to create a product. They don't need a manufacturing facility. They don't need nearly as many employees per revenue as they used to need. And those businesses are really capturing a ton of the revenue.

• 5:27Speaker 01

  And so a very simple example would be, look at the media industry. It used to be all about newspapers and magazines. You had to make that stuff and you had to get the logistically out to people and you paid subscribers and all this stuff. Now you can simply just use the internet and you can create it. You don't need that plant to print the newspaper or print the magazine. You don't need the logistics. You simply are able to just put it out there in software. And so naturally, as that transition has occurred, the businesses that are better, right? They're more capital efficient. They're able to drive more revenue per employee or more profit per employee. They continue to grow while the businesses that are left in the traditional economy have more of a headwind. And so that shift from industrial manufacturing, kind of physical world businesses to these kind of software oriented businesses

• 6:12Speaker 01

  really is the story of the last 50 years. And you can see that in the concentration you're talking about, right? The top seven companies in kind of the S and P 500, the magnificent seven. They're all software based businesses that really are pretty special by a number of different measurements. But also look at the richest people in the world, right? Really, other than Bernard Arnault, who sells kind of a luxury physical item, everyone else is based in the technology world. And so that shift, I think, is really driving changes in our everyday lives. And so naturally, that shift in our everyday lives is showing up in investment returns. And you're seeing those tech stocks are doing much, much better than maybe the rest of the S and P 500. And so that, I think,

• 6:53Speaker 01

  Is going to be the story for the next 10 or 15 years is a continuation of this software story. Marc Andreessen famously wrote this piece about a decade ago or so, and he said, "Software is eating the world." And we now are seeing very real examples of this, right? You know, obviously, Amazon used software to eat the bookstores. You can see Facebook was able to use software to eat into the Yellow Pages. And you kind of go through all these examples. But software is also eating gold with Bitcoin. You know, the kind of this software-based money is really kind of much better and more popular right now than gold. You can also then take that even a step further, obviously, with the media companies. But I think AI is really interesting.

• 7:34Speaker 01

  Like, AI is starting to actually eat into the number of employees a company actually hires or employs. And so, software is coming for all of these different use cases. And it's going to make the world more efficient. It's going to empower some really exciting, cool things around robotics and self-driving cars and AI agents and kind of, you know, the quote-unquote "the future." But also, as investors, you have to understand, am I betting on things that I hope don't change? That would kind of be more of like a Warren Buffett style of investing. Or am I actually betting on things that I hope do change? And that would be more kind of a venture capitalist or tech stock investor. Once you understand who you are and what you're trying to do, then that really allows you to figure out where you're going to go put the money.

• 8:17Tom Bilyeu?

  If we're looking back, though, over, say, the last 20 years, are you going to capture value by betting on things staying the same? Or would you have missed basically all of the recent gains if you don't go for the software revolution?

• 8:31Speaker 01

  Yeah, what's really fascinating about this is I always like to remind people, there's multiple ways up a mountain, right? So there are plenty of people, take a Warren Buffett, who have been super successful betting on the world not changing. You know, he's owned Coca-Cola and American Express and a number of these companies that are really good brands, have good business models, kind of integrated into American life. And those businesses have continued to compound for a long time. Now, with that said, obviously, companies like Nvidia or Tesla or, you know, Microsoft and Amazon and Facebook and Google, they

• 9:03Speaker 01

  Have had, you know, a pretty spectacular return over that same time period. They've outperformed in many cases. Now, when you look at a portfolio, I think a lot of young people say to themselves, "Hey, I use the technology products. I'm digitally native. This is what I understand." Kind of my competitive advantage is I can actually tell you, are my friends all using Instagram? Or are they not, right? What is going on? Am I actually shopping on Amazon? Am I using some of these technologies? And so I think that the younger you are, the more you're going to gravitate towards those technology companies. And I think the older you are, the more likely it is that you came up in a time where you really understood some of those more physical world economies. And so it's just two different kind of demographics, really just investing in frankly, what they know.

• 9:48Speaker 01

  And so for young people, most who are probably watching this, they're going to be much more attracted to the technology companies. And those have done very well over the last decade.

• 9:55Tom Bilyeu?

  So my question becomes though, is, is the Warren Buffett play still a valid play? Or, and, and let me define how I read that. So Warren Buffett, to me, value investing, you look at a company that you think has the fundamentals right. And because they have the fundamentals right, they are going to continue to go up in value over a long period of time. Now, admittedly, I am not a Warren Buffett studier. So I don't have a complete breakdown of how successful he's been over the last, let's call it seven years. But my gut instinct is that, and I think he's even said, like, you're not going to see another thing like what Berkshire Hathaway did moving forward. Our gains all came from getting into value investing a long time ago

• 10:40Tom Bilyeu?

  and holding for a very long period of time. And so when I think about, okay, I've got somebody out there who wants to set and forget. They don't want to be in the mix every day trying to bet on individual stocks. But it seems like the thing that they should be doing if they want to get more aggressive returns without taking undue risk would be to focus on the thesis of software is going to eat the world, that everything is transitioning from the old world of what we're betting on is that value creation maintains over time based on fundamentals in the business to.

• 11:15Tom Bilyeu?

  Technology is the thing that has the cultural energy and therefore as more and more young people begin to invest in a system that they understand, not necessarily a system with fundamentals, but a system that they understand, that they interact with every day, that that's where the gains are going to come from. And I'm just curious if you know, do the numbers bear that out or am I delusional and Warren Buffett is still just killing it year after year?

• 11:40Speaker 01

  Yeah, maybe the way that I would describe the difference is Warren Buffett really is trying to do something that most people would consider value investing and really all value investing is, although it is associated with a lot of the industrial manufacturing businesses, he's basically trying to buy things for less than they're worth. So he looks at a company and he's got a bunch of different calculations he'll do and he'll say, I think that this company is worth, you know, a billion dollars. But right now in the stock market, the market cap is only $700 million. And so if I go ahead and I buy this business at a $700 million valuation, then I am pretty much guaranteed to make money because it's actually worth a billion. And so as long as I can wait and don't have to sell this stock, at some point, the company will trade back to at least what it's worth, if not more money. And so anytime you're buying things for less than they're worth, if you actually do the evaluation correctly, you should make money, right? And so I

• 12:24Speaker 01

  think that the value investing style will always kind of be in favor as long as you implement it correctly. Now, to your point and a point that frankly, I agree with and think is probably the focus for most young people is if you're not a superstar investor in terms of your ability to underwrite companies and do cash flow evaluations and understand, you know, kind of cash on cash returns and things like that, your better bet is to try to say to yourself, okay, well, where do I think the technology world is going and how do I go and get exposure to that? And so, you know, my view of the future is one that people would probably put on the spectrum of very excited about what technology will do to our lives. You know, I fully believe that we are going to have self

• 13:06Speaker 01

  driving cars and there may be even a world where humans are banned from actually driving vehicles. I think that we will all have humanoid robots that we interact with on a day to day basis. You can see this obviously in places like, you know, warehouses and things like that, but it's not a farce, you know, kind of thought process to think that we're going to have these In our homes, right now, I always say that there are, you know, cleaning devices that people put into their homes and it will go around and it will kind of clean the floor. Well, what happens when all of a sudden you can have a humanoid that'll do the dishes or do kind of household chores and stuff like that? People probably be pretty interested in that. If you go and you look at things like DNA sequencing and CRISPR technology and the ability to either biohack yourself to more longevity or more kind of healthy years.

• 13:50Speaker 01

  Or also maybe to avoid certain diseases with babies and things like that, that seems like a huge, you know, area of opportunity. Then you go to places like Bitcoin and obviously there is hundreds of millions of people around the world who have chosen to take some portion of their wealth and store that economic value in a decentralized asset that is software based that can't be taken from them and can't be debased by somebody else. And then you go and you look at things like drones and it's obviously changing kind of the entire battlefield and how these things are being used and it's removing humans. And it's now becoming much more of a technology battle in these wars. And then you can kind of go even a step further and say to yourself, okay, well, if all those technologies are happening here on earth,

• 14:30Speaker 01

  what happens when you introduce rockets and the ability to inexpensively go up off of the earth's surface and get into space? Whether that is to go to Mars or to explore more about the moon. Or I'm an investor in a company called Varda that is literally putting manufacturing units in space. So they bring pharmaceutical drugs up, they manufacture them in zero gravity and then they bring them back to earth. And so you think about this stuff and you say, you know, the future is very, very bright because technology has now got the capital flowing to it to be able to build these things. And really we are only limited by our creativity. What ideas can we think of that we can now kind of use software to actually go and implement? And so if that is the trend, then really what is challenging investors to say is,

• 15:14Speaker 01

  hey, do you want to be more of a professional and go pick individual stocks? You can do that. There's more access to information than ever. You have direct access to the market through things like Robinhood, public, Weebull, et cetera. Or you can go and you can simply index, you can buy the NASDAQ 100 or, you know, any of these kind of tech oriented indexes. And say, hey, look, I actually just want exposure to technology. In general, regardless of the way you choose to actually get kind of exposed, I do think that technology has performed very well and will continue to perform very well. As long as you don't have to time markets and say, I'm buying today, I'm going to try to sell tomorrow. If you can say, hey, I'm going to buy technology today and I'm going to hold it for a decade. Very hard to see how technology does not continue on the trend that it's on.

• 15:56Tom Bilyeu?

  Mm hmm. Okay, let me give you my burgeoning thesis. This is a burgeoning thesis. So hopefully the audience will give me space to to start formulating these thoughts versus being able to give it as crisp as I would like. But I believe, I think it was Elon that said, over the next 10 years, we're going to have 100 years of innovation. That quote alone drives my thinking on what's about to happen. And it's a twofold thing. One, I believe that all of the stock market is gambling, full stop, period, end of story. You have gambling with cover story and you have just pure gambling. So gambling with cover story would be value investing. I unless you're buying only dividend producing stocks that actually pay you for holding them.

• 16:41Tom Bilyeu?

  You are simply saying, I'm going to buy this because I believe somebody else will buy it for more money down the road. And that's exactly how you make your money. But make no mistake, this is just gambling. Okay, if you're gambling, the thing that you want to bet on is cultural energy. Now, I, like you, don't think unless you're going to be in this full time and even then you're probably going to lose your money. I don't think you want to think short term. I don't think you want to be a day trader. I think you want to look at movements that happen over years, ideally half a decade or a full decade at a time. But the next decade to me feels like it is going to be driven almost exclusively by technological changes and rapid advancement. So I'm going to be focusing in sectors that have a lot to do with AI.

• 17:25Tom Bilyeu?

  Or like Bitcoin, to me, my whole thesis there is it is a migration from not just fiat, but analog money to digital money. And so every day that I hold Bitcoin, whether price goes up or the price goes down, I'm just asking myself, is tomorrow going to be more or less digital than today? If tomorrow is going to be more digital, meaning every kid that becomes Comes aware of money and starts dealing with that is going to prefer a software based money over an analog money. Then cool, I want to be where the software based money is going to be. And I think that that trend is going to continue as far as the eye can see with the rapid rate of change we're about to live through.

• 18:04Tom Bilyeu?

  I think this moment is wildly unprecedented. I think the rate of change is going to be unlike anything we've ever seen. I think it is going to be more dramatic. Then the printing press, I just think it's really, really going to be something quite manic. So if this is a, if this is all betting, gambling, and the most obvious gamble to me is that. Everything is going to be more digital tomorrow than it is today. Then for a set and forget strategy, while I agree, do it at the index level, you want to be focused on.

• 18:40Tom Bilyeu?

  Technology, I treat Bitcoin as my, the place where I store my wealth. That feels like the right play and that what has been happening historically with something like a Berkshire Hathaway is. It just isn't going to work on mass is my gut instinct and it's going to be harder and harder to get. Value out of that, what I'll call the, the boomer strategy and. A more likely bet is to bet on the continued migration from analog to digital. Does that make sense to you? Quick break, but stick with me because the real question isn't just what's happening in the markets, but who's actually winning and that's next.

• 19:24Tom Bilyeu?

  Luxury brands are not charging you more for better cashmere. You're paying for the storefront, the ad budget, the name on the tag, but Quince. Cuts all of that out. They work directly with ethical factories. They skip the middlemen and sell 100% Mongolian cashmere. Starting at just 60 bucks, 50 to 80% less than similar brands. Now I gave one of these as a gift last year. It was a big hit and gifting is really the test of a brand. You might tolerate a lot of stuff in your own. Closet that you would never give to somebody else. I've got their joggers and a couple of their tees as well. And I can tell you their whole line is high quality. Give the gift of quality this holiday season.

• 20:06Tom Bilyeu?

  Download the Quince app for app exclusive offers or go to quince.com. Get free shipping on your order and 365 day returns. It's now also available in Canada and the UK. And when Quince asks where you heard about them, make sure you tell them that it was on Impact Theory. That's the best way to support the show. I'll call you back. That's the most expensive sentence in business. You mean it when you say it, but by the time you remember, they've already found somebody else. That's why today's episode is brought to you by QUO, spelled Q U O. The business phone that's built so you never miss a call or a customer. QUO writes up your calls for you and one click turns any of them into a task with a name and a due date.

• 20:51Tom Bilyeu?

  The follow-up actually happens instead of living in your head. When you can't pick up at all, QUO's agent does. It answers questions, gets the details and texts them a link to book an appointment. By morning, you've got the summary and you can jump right in. It's also an official connector in Claude and ChatGPT. Ask who called while you were out and it's handled. QUO is the number one rated business phone on G2. It's trusted by over 90,000 businesses. When money is on the line, always say hello with QUO. Try QUO for free plus get 20% off your first six months at quo.com/impact. That's Q U O dot com slash impact.

• 21:35Tom Bilyeu?

  Thanks for staying tuned. Now let's get back to it. A more likely bet is to bet on the continued migration from analog to digital. Does that make sense to you?

• 21:47Speaker 01

  I do think it makes a lot of sense. If you think about Bitcoin, right? The way I treat Bitcoin is it is an asset that I buy and I'm going to give it to my grandkids. So the reason why that's really important is that's not a new phenomenon with just Bitcoin. If you think of, let's take the country of India and their culture. Gold is passed down from generation to generation to generation. It could be jewelry or kind of the family gold, right? If you think in the United States, land, a lot of times is passed down from generation to generation to generation. And the ability to pass these assets on from generation to generation really drives quite a bit of wealth, right? Whether it's real estate, land, gold, or any other asset. Bitcoin has a lot of the same properties of these assets. So if you think about land, it's a finite asset. They're not making more of it. Same thing with Bitcoin, right?

• 22:32Speaker 01

  It's a finite asset. There's only 21 million that will ever be available. If you think of gold, it has sound money principles. It's outside of the system and no one can devalue it. Same thing with Bitcoin, right? It's outside of the system and no one can devalue it. And so I like to think of, there's a very small amount of assets that you can buy today. You can hold your entire life, you can pass it on to your kids or grandkids. And that is going to set up your family and kind of those that come after you to be in a really good position. So that's Bitcoin for me. It stores economic value really well over a long period of time. So I want to make sure I have that for some portion of my portfolio. And comes to technology, I am not like a Warren Buffett. I don't want to try to bet on the world not changing. That's not how my mind thinks. It's not what I'm intellectually stimulated by.

• 23:14Speaker 01

  I am much more interested in how things are going to change and where that change is going to occur and who is driving that change. And so these new technologies in my mind are absolutely fascinating. And what I've noticed in the market is that now not only are entrepreneurs having capital available to them. There's tons of people who want to give people money to go and kind of change the world. But also the technology that is available to these entrepreneurs to do this makes them 10, 20, 50, 100 times more effective. And so if you think back to businesses, it used to take forever for them to get to a million dollars of revenue or $10 million of revenue. We are now seeing businesses launch and get to a million dollars of revenue in the first couple of months.

• 23:57Speaker 01

  Right? In some cases, we have seen businesses that literally are getting to $100 million of revenue in two or three years. And so anytime that you can use technology to be a more effective company, to grow faster, to be more efficient, obviously value is going to accrue there. And the way that I think about kind of this brand new future is two things remain true. Who is the person who's actually building the company? Whether they're in the public market, the private market, whatever, you're betting on a person. Right? The same way that somebody would come and bet on somebody building a manufacturing business or a food business or anything, you're betting on a person. You need to make sure you get that right. And then the second thing is you need to bet on these long trends. And the beauty right now is that technology has the tailwind.

• 24:40Speaker 01

  Because ultimately, there's an economic incentive. And I think that that's really something that gets lost on this, right? If you think about somebody who wants to go start like a local restaurant, and they go and they talk to investors, and you say, well, how much money could I make here? There's usually a cap, right? Hey, we have 50 seats. We could turn over the seats three times a night. We're open six days a week. And you do the math and you're like, okay, the most amount of money that this business can make is X dollars. And it doesn't matter how long they're in business, it's just capped. That's what this business can do. But these technology companies, they kind of have exponential growth. So if they start today, they say, hey, look, we're making X or Y product or service, and we're going to sell that. And when we get started, we think we can sell it to a certain number of people.

• 25:21Speaker 01

  But over the next 10 years, we think that that number can literally go up 10 or 100X. And so there's no cap to the upside of these companies. And a great place to watch this is a company like Palantir. I mean, Palantir hit $100 billion market cap. They literally started off basically as a service. They went to companies or organizations and said, hey, we have this, you know, really unique technology capability. Why don't you pay us some money and we'll kind of custom solution for you? And then over time, they began to build that into a technology product. Now that technology product is used by people all around the world, and they built a $100 billion company. It's insane. And so that's where ultimately I see from an investor standpoint is I want to be in businesses that have unlimited upside potential. And if the entrepreneur is good and continues to do what they're supposed to do,

• 26:06Speaker 01

  then I could put a dollar in today and get back way more in the future. And I'm not capped by physical space or the number of times I can turn over a table or something like that. And so I do think this technology trend is just really, really big. But it's showing up everywhere, right? And I think that for the people who are watching this, regardless of what industry you're in. Technology is probably infiltrating it. And if you think it's not, then you're not looking hard enough. Because right now, if you take AI maybe as the easiest example, AI is coming after blue collar jobs and it's going to come after white collar jobs. You know, the AI and machine learning and self-driving cars. Is it going to take away Uber and taxi drivers? At some point, yes. When? I don't know.

• 26:51Speaker 01

  But it's also going to take away truck drivers and it's going to take away a lot of people who are employed as drivers. But then if you go and you take a look at, well, I know a lot of companies. I was having breakfast with a founder today. And he said that he thinks that he can take his company, which currently has 85 employees. And he think he can actually use AI to shrink the number of employees from 85 to 50. But during that timeframe, he's going to 5X his revenue. Which means that he can take his AI and he can actually replace some of the software engineers. He can replace some of the marketers. He can replace some of the designers. And the software is going to start to do this stuff. And so if that is the path that we're on is things like AI are going to infiltrate every industry. It doesn't matter if you're in accounting, if you're an engineer, if you're a designer, if you're in ops, if you're in sales, whatever.

• 27:36Speaker 01

  The way that you insulate yourself from this is you become the most knowledgeable person at your company on these new tools. Because they will be the last person that they can fire is you. And so one quote-unquote investment you can make, yeah, you can make financial investments. But I also think you can make a kind of career or personal investment by becoming an expert in using these things. Because it will help you continue to be employed. It will help you to continue to drive income, whether you're an entrepreneur or an employee. And that will give you the funds to then go invest in the market. And so this idea that, hey, we're just investing is partially true. I think it's really important that people understand these tools are coming for people's jobs.

• 28:16Speaker 01

  And the people who will survive are the people who know how to control them, who know how to use them to be better at their jobs. And so don't ignore it, actually embrace it, go become the expert and you'll become more valuable to your company.

• 28:29Tom Bilyeu?

  Ooh buddy, do I agree with that. So I think that 2025 is going to be the year of just massive anxiety around AI. You've got Salesforce making their announcement, we're no longer hiring any more engineers. There are going to be a gazillion conversations like the one that you had this morning, where people are looking at their headcount and saying, how do I shrink this? So not even staying static, but, but how do I actively reduce this? I think what that leads to is, not in 25, but as we go down the road and that proliferation of AI becomes super ubiquitous, that we're going to have to print more money to create a bigger social safety net, which is going to push people, and this goes back to my thesis, that all of investing is gambling. It's going to force more people to become, uh, people want me to say educated investors.

• 29:14Tom Bilyeu?

  I'm going to say degenerate gamblers. It's going to force people to be degenerate gamblers, to outpace the inflation of printing all of that money, to take care of the people that are getting their jobs just absolutely obliterated by AI. And so now all of a sudden, it's driving more people into this, okay, where are the big returns going to be? I think that those are going to be in technology. So you get this really weird loop of the more that technology begins eating the world, the more people need that social safety net, the more that we are printing money, which requires more people to invest. What are they investing in? They're investing in the very technology that's eating them, which causes it to eat the world even faster. And so it is this crazy self-reinforcing loop.

• 29:56Tom Bilyeu?

  And that's where I start to get very uneasy about what's going to happen to people psychologically during this spiral. But being aware that that's where the opportunity lies, certainly for people that are paying attention, you can begin to position yourself, again, I'm an index guy, do not think that you can pick the right company. But if you can pick the right sector and hold for long enough, to your point about look for those long-term trends. That I think people can really set themselves up to win. Now, one thing I want to talk about that to me is tied to that. When I look at microstrategies and what they're doing is I say, okay, people, people that invest actively,

• 30:41Tom Bilyeu?

  you are going to be able to predict their behavior far better if you think of them as a degenerate gambler than if you think of them as some sophisticated investor. And what MicroStrategy has done a brilliant job because he has a company that adds value. It's just not growing. And so from the stock market's perspective, that's a bad company. Not interested. It's not going to grow, not going to invest. And so what he did was say, okay, I know the people want to gamble. They don't care if my company is solid, solvent, well-run. All they care about is whether they're going to be able to gamble on this. So let me start doing a Bitcoin treasury strategy and then overlay basically the entire stock market, all of the shorts, the options, trading, all of that

• 31:24Tom Bilyeu?

  on top of cryptocurrency, which already attracts the most extreme gamblers. And so what you're seeing with MicroStrategy is gambling mainlined. Do you see something else when you look at the just unbelievable success of MicroStrategy's?

• 31:44Speaker 01

  Yeah, so I think if you put yourself in Michael Saylor's seat, why does he buy Bitcoin to begin with, right? Do I think that there's an element of, hey, if I buy Bitcoin, then the Bitcoiners will notice me and they'll start to buy my stock? Definitely. But I think probably the bigger story was I'm sitting on $500 million of dollars of cash. And if I keep holding this cash and it's being devalued, you know, since 2020, the US dollar's lost more than 25% of its purchasing power. That would be very detrimental to somebody who's sitting on $500 million of cash. And so I need to convert it to something else, whether that's real estate, land, gold, Bitcoin, whatever. And so I think that was kind of a huge piece of this is, hey, I'm now convicted that inflation is going to be a problem. The currency is losing value. I need to convert it to something else.

• 32:30Speaker 01

  He buys Bitcoin. And I think that it's kind of this thing where, you know, you ever like go to the pool? You're like, I want to. If it's cold or not, so you dip your toe in, oh, it's not that bad. Then you put your ankle in, right? Then you put your knee and then eventually you go all the way in the water. That's kind of what happened here, right? Is he like dipped his toe in, he bought, you know, $400 million or so of Bitcoin. He waited, he's like, well, that worked. Let me buy some more. Let me buy some more. And then eventually he was just like, I'm jumping in the deep end. I don't need to check the water. I'm buying as much Bitcoin as I can. And so naturally, as you go through that progression, it definitely begins to attract people who are much more kind of speculating on the stock. And really, the genius of his strategy is he's not just attracting speculators from kind of the equity market. He's also attracting speculators from the debt market as well. And the debt market is massive in the United States.

• 33:15Speaker 01

  And so he's giving the ability for people who have a mandate to buy bonds, say, hey, come and buy these convertible bonds at MicroStrategy. I'm going to give you underlying exposure to Bitcoin. So now he just unlocked a whole new pool of capital that wants exposure to Bitcoin. And so that has played out very well for them. And you see all these copycats around the world that are all kind of popping up saying, hey, that works so well, maybe I'll do the same thing. How do I start to raise capital and go and do it? But maybe the bigger story here to me is in the public markets, companies previously had two levers they could pull to improve their business. They could drive more revenue. So there's a revenue lever. And then they could also cut expenses. So they could pull the expense lever. MicroStrategy kind of opened people's eyes to know there's a third lever, which is your balance sheet.

• 33:59Speaker 01

  So you have revenue, you have expenses, but what he's doing is he's buying Bitcoin. And by putting things on your balance sheet that go up in value, that is a third lever you can pull. And real estate investors kind of sort of knew this before, right? Because they would have their ability to borrow against their balance sheet and things like that. But this is a whole new way of thinking about it. And so I am predicting that there are going to be a ton of public companies that are going to say, wait a second, we don't pull the revenue or the expense lever. We pull that third lever, the balance sheet lever. And we're, some people are going to do it with Bitcoin. We already see companies like Soul Strategies, which I'm involved with in Canada, they're doing it with Solana. But there's going to be companies that do with all kinds of assets. They're going to say, look, let's put this on the balance sheet and let's wait for some capital appreciation to happen and let's continue to.

• 34:44Speaker 01

  Play this game where we can now pull the lever of the balance sheet. In that world, the ability to evaluate companies, the ability to be a capital allocator is going to be really, really important. And so I always say that, you know, to be successful in the world going forward, you need to be able to operate companies, you need to be able to allocate capital. And then you need to be able to create content. If you can do those three things, you're kind of a triple threat. And if you look at what is Michael Saylor or Jeff Bezos or Mark Zuckerberg, right? Mark Zuckerberg operates a business, he allocates capital, he's creating content. It may not be the content that you think of, you know, in terms of Mark Zuckerberg is a content creator, but he's able to do this. If you think of Warren Buffett, Warren Buffett operates a business, he allocates capital, he creates incredible content.

• 35:29Speaker 01

  Writes his annual letter, he's got an amazing conference, all this stuff. And so I think the challenge for people moving forward in kind of a digitally connected world with all these technologies accelerating everything is can you be the triple threat? Can you do those three things to position yourself to be able to capitalize? To be able to actually build the businesses, attract the capital and then go and get customers in a cost effective way. And I think the people who can do that will benefit significantly from these tech trends. And if you are one of those beneficiaries, you'll have a lot of capital that you can turn back around and that kind of spiral that you talked about. You're going to invest it back into the tech companies, which is going to only further your kind of economic status. If you continue to do that over and over again, you will be one of the big winners over the next 10 or 15 years.

• 36:10Tom Bilyeu?

  Real quick, if you think investing is wild now, just wait until AI takes over. What happens when machines run the game? We'll get into it after the break. You're probably paying two salespeople to do one salesperson's job. That's where today's sponsor Pipe Drive comes in. An intelligent AI powered sales CRM loved by growing sales teams. Pipe Drive just launched meeting intelligence built right into the CRM. Before every call, it pulls deal history and past conversations into one brief. During the call, it records and takes notes. After it, it drafts your CRM updates to review and approve. So there's less admin and more selling.

• 36:54Tom Bilyeu?

  To a CRM built by salespeople for salespeople and join the over 100,000 companies already using Pipe Drive. My link gets you an exclusive 30 days free instead of the usual 14 day trial. There's no credit card payment needed. Just head to pipedrive.com/impact to get started. Again, that's pipedrive.com/impact and you can be up and running in minutes.

• 37:25Speaker 02

  That sound? That's pro squash. Some of the fastest rallies in sport played inches from the crowd. The National Squash League is back in full swing for season four. The sport is heading to the 2028 Olympics for the first time and you can see it up close right now in a city near you. Watch every match for free on YouTube. Search National Squash League and hit subscribe or follow live updates on Instagram at NSL.Sport.

• 37:54Tom Bilyeu?

  All right, let's dive right back in. That all makes a lot of sense to me. I, I am trying to develop a predictive engine so that when I look at the world, I can say, when this thing happens, it's going to lead to this thing. And when I look at investors as quote unquote investors, meaning, oh, there's something of value here. I'm going to put money into this. It does not lead to accurate predictions. When I look at people's desire, not only desire, that the current printing of money forces people to dodge the devaluation of their money

• 38:34Tom Bilyeu?

  by gambling in the financial system to outpace the rate of inflation. And I look at everybody as these gamblers that are trying to beat inflation. They're being forced into this. Then my predictive validity seems to skyrocket. And so I would love for you to point out if there's anything in the following statement that you think is crazy. When I look at micro strategies, I see one brilliant move that towers so far above everything else. But it only makes When you look at people as gamblers is that Sailor was like, oh, wait a second. I'm not going to dip my toe in the water. I don't need to. I'm going to run a mathematical equation about what people would be willing to bet on.

• 39:16Tom Bilyeu?

  And I'm taking the highest volatility, longest performing asset. And I'm going to put over the top of it, all of the gambling mechanisms of the stock market. And this is why I think the average person, which I will very much consider myself of. They don't understand the stock market has almost nothing to do with whether the company is valuable. People do not give a fuck, Anthony. All they care about is the really fancy guys. They want to know, can I beat other people at guessing whether this goes up or down? Which is why in the stock market, you can make a ton, billions of dollars betting against something. Saying this is a trash company and it's going to go down.

• 39:59Tom Bilyeu?

  And Sailor's like, hey, I don't care whether you think it's going to go up or down. I'm going to let you pick the amount of volatility that you want. It is so brilliant. I'm literally, it melts my brain to think about what he's done to go, ooh. You like this high volatility thing? Oh, word. Let me give you all of these different ways that you can bet for it, against it. Short term, long term, uh, high risk, low risk. It, it, it's unbelievable, but it only makes sense when you look at it as the entire. I don't want to limit it to the stock market. People may get the wrong idea. The, the financial system for the most part is just a big casino. And once you understand that, oh, I'm being forced to play at the casino to beat inflation.

• 40:42Tom Bilyeu?

  And Sailor has built the greatest casino ever. And this is why this guy is, it, it is, he can borrow money hand over fist. It, it, it's unbelievable. But it, for me, it didn't click into place until I was like, oh, wait, this is just gambling. Once I was like, oh, he built a casino. Now I get it. It all made sense. Tell me why that's crazy.

• 41:08Speaker 01

  Well, I think a good, uh, kind of framework for people to think about is, uh, if you want to drive a financial return, you have to take risk, right? And a, you know, kind of old adage in the financial world is, uh, The risk you take is the return that you make. So whatever risk you're taking, if you take a small risk, you can only expect a small profit. If you take a huge risk, then you can expect a potentially huge profit. Right. But the risk and the return is very much married together. And so obviously, the best investors in the world are looking for, how do I take almost no risk and make a massive return? It's just that that doesn't exist very often. Right. So usually it is small risk, big or small risk, small return, big risk, big return. And what I think Michael Saylor figured out is this Bitcoin thing is highly volatile.

• 41:53Speaker 01

  You know, 80, 90, 100 vol asset. And it goes up and down, up and down, up and down, but over a long run, it goes up. And so if I put this highly volatile thing into the public market, there's a ton of people who are going to have an opinion, to your point. And some of them are going to think that it's going to go up a lot, and some of them are thinking it's going to go down a lot. And they're going to bet in either direction. But again, it goes back to people who are investing in that asset. They are betting, knowing they're taking a big risk, and so they're expecting a big return. And that's what they've gotten. If you have bet and said that MicroStrategy was going to go short, for the most part, you've lost money, and you probably lost money big because it has gone the exact opposite way. But if you've bet on MicroStrategy and it's gone up a lot, you've probably made a lot of money.

• 42:38Speaker 01

  And so when I think about that type of company, is you can expect it to have the same volatility as the underlying asset. There have been times where MicroStrategy has gone up, you know, hundreds of percent. There's been times where it's been cut in half and lost 50% of its value. But it goes back to that idea of what is your timeframe? Right. There was this great study done, I think by Fidelity, where they looked at all of the best performing accounts. And they tried to find commonality between them. And so what do the best people from a return perspective do? And two of the insights they got were the best performing accounts were from people who lost their passwords or people who had died. Because people just didn't look at the account for five, 10, 15, 20 years. And so naturally, the same thing here is if you buy some of these stocks, whether it's an index

• 43:23Speaker 01

  or the individual stocks, and they're good companies, and you don't look day to day, you just come back in two years, it's probably going to be doing better than it was when you bought it. But the problem that people have is if there's a daily ticker price, it went up today, it went down today, it went up today, it went down today, their like entire mood is affected. You know, I have some friends who are public market investors, they literally are in a bad mood when the market's down. They're in a good mood when the market's up, right? I'm like, dude, the stock market is determining whether you're having a good or bad day. Like, stop looking. And I think that is the challenge for young people is how, as you're learning, as you're investing, how do you figure out how to deploy capital, but also remain emotionally disciplined, so that when the market goes up or down,

• 44:06Speaker 01

  you don't actually get, you know, upset or excited? Because if you go back to the Warren Buffett, Buffett actually gets excited when the price goes down. He's already convinced himself, I'm gonna buy, you know, whatever stock. If it goes down, I'm excited because I get to buy more of it at a cheaper price. So the joke about Bitcoiners is the people who really understand Bitcoin, they get excited when it goes down because they can buy more at a cheaper price. Right? Same thing with some of these, these businesses. But you gotta make sure it's an asset that's gonna be around in 10 years, right? That's got, got kind of longevity, got resilience to it, etc. And so I think your point about kind of this high volatility, you know, really elicits people who want to speculate is 100% true. And Wall Street is better than anyone at creating, you know, kind of speculation tools,

• 44:49Speaker 01

  or, you know, casino games, as you said. Sure, they've got, you know, kind of better ways to describe it. They've got all these models and all this stuff. But at the end of the day, they're risking dollars for a potential return. If they're right, the market rewards them. If they're wrong, they're, they lose. The key thing is, there's probably better odds in, you know, the stock market than there is at a casino table. Right? And I think that that's where a lot of people get attracted to, hey, let me go over here. And one of my favorite stories, I don't know if you know the story of Susquehanna Investment Group. Susquehanna was a couple of guys in college, they actually started betting on horses, and they were trying to use all this Math to figure out which horses were most likely to win the races and do all this stuff. And somebody came to them and said, hey, you guys are pretty good at this like horse betting thing.

• 45:32Speaker 01

  But like, did you know that you don't have to wait for the horse races to bet every day? Like, there's a stock market, it trades every day, right? You can go over here and there's all these horses called stocks. You could pick different ones and run your math models and whatever. And they ended up becoming one of the great investment firms. But it literally was people saying, hey, why don't we take something that works in, you know, kind of the risk-taking and gambling world? And let's bring it to kind of a more orderly market that we have more access to, there's more opportunities. And let's go and implement it there. And so I do think that there's a lot of these stories where people have crossed over from, you know, kind of pure risk-taking with very, you know, unattractive odds to a market like the stock market where they say, hey, there's much more attractive odds here. Let me go and, you know, kind of invest here.

• 46:16Tom Bilyeu?

  Okay, so to me, that is the perfect illustration of my point that the guys who are betting on horses end up doing great in the stock market because it is the same skill set. My question becomes, why do you think the government and society at large is cool with people betting on the stock market, but not cool with betting on sports?

• 46:38Speaker 01

  So I think that's changing. But what I would say is, you know, there's this really interesting dynamic where people will say, what do you want to do? Why do you want to do it? And the why do you want to do it? Is actually a really important component to whether they like what you're doing or not. Maybe it shouldn't be that way, but that's how it is. I'll give you a couple of examples. Why do you want to invest in companies? Somewhere, someone somewhere along the line said, you know, I want to invest in companies because I want to give capital to entrepreneurs. So those entrepreneurs can use it to build products and services and corporations and create jobs and economic activity and, you know, GDP growth and all these things. That sounds really good. People said, hey, we like that idea.

• 47:23Speaker 01

  Let's empower, let's, let's fund kind of American companies. So that, that's okay. Somebody came along and said, you know what we should do? We should create a lottery system. And you know what would be a great thing to do with the proceeds? We can use it to fund the education system within a state. And so there's many states across the United States where they literally have a lottery. And the odds are not good. You know, there's like one in a billion chance of winning or something. And the proceeds are actually used to pay into the education system, the schools, the teachers, you know, all that kind of stuff. Well, all of a sudden, what do you want to do? Want to create a lottery? Well, I don't know if I like that. Why do you want to do it? Oh, we're going to help fund the schools. Great idea. That gets approved.

• 48:06Speaker 01

  Sports gambling right now is very much, what do you want to do? I want to bet on sports. Why do you want to do it? Because it's fun. That answer hasn't been so, you know, well accepted. But I do think that it is changing now because really what ended up happening is a kind of twofold. One, there was like this like black market of gambling that had been going on for a long time. And they kind of realized, hey, we can't control this. So it actually may be better to pull it into the regulatory apparatus, put some rules around this, kind of sanction this stuff. And it probably is better actually for the market participants. But two is there's revenue source. And so states started to really say, hey, look, we should legalize this because we're actually going to make some money. And I forget the exact number, so somebody will probably correct me if I, if I get this wrong.

• 48:50Speaker 01

  But I think it's something like in the first two or three years, the state of New York has generated like $12 billion in revenue from sports gambling. And so again, whether it's 12 billion, it's 1 billion, or it's, you know, 20 billion, it's some big number that is going to the state. And so whenever you see that, you say to yourself, why is it that this was not legal? And now it's becoming legal? Why do you want to do it? Oh, because the state's going to get money. And so that I think is really what's kind of transitioning it. Now, what I will say is there is a potential risk where it all comes down to the odds. Right? So again, if you're investing in a company, the company, some are winners, some are losers. But there's disclosures.

• 49:34Speaker 01

  There's a lot of things that happen in the public markets that make an investment. ...quote unquote safer than maybe trying to pick what color is the Gatorade gonna be when somebody dumps it on the coach at the end of the game? That is like, you know, very pure play, uh, kind of you're right or you're wrong. Now, I'm in the situation where I always say to myself, look, I think Americans should be able to do what they want with their money, right? That's kind of the beauty of America, the, the kind of, uh, belief in financial freedom is you should be able to do what you want with your money. But I also think whether you're investing in a company, you're, you're betting on sports or you're doing something in between, you also should have as much information available to you as, as, uh, needed. And so things like company disclosures, etc. is really important in the public markets.

• 50:16Speaker 01

  Things like in sports betting, having an understanding of the odds and various other topics is really important as well. And I think you see a lot of states saying, hey, what, what is the standardization of that stuff? And the beauty of this is, uh, there's gonna be winners. Like there will be people who are very good at sports gambling, right? There will be people who are very good at stock picking and there will be people who somehow continue to be really good at lottery, you know, participation. Um, I'm not an expert at gambling or, uh, the lottery, but there are people who understand this stuff, right? No different than somebody, uh, like an Ed Thorp. Ed Thorp, you know, went, uh, to Las Vegas and he figured out a couple of different tricks of how he could actually outsmart the casinos, made a lot of money doing it. And so there's this economic incentive that sits out there.

• 50:59Speaker 01

  And if you look to think about sports gambling, I'm aware of a number of different outfits where they might as well be hedge funds, right? I mean, they're calculating all this data. They're really trying to get smart about what odds are priced correctly and not correctly. And where's the risk reward and all this kind of stuff. And then I would actually even take it a step further. And maybe one of my big, uh, predictions over the next 10 or 15 years is that these prediction markets are going to become a massive part of society. So when I talk about sports gambling, I'm literally talking about, hey, the Super Bowl's coming up, there's gonna be two teams that play. I can bet on the game, I can bet on the score, I can maybe do some prop betting, uh, in that specific game. But right now, a really interesting detail is, uh, there's a platform in the United States

• 51:42Speaker 01

  that is approved by the CFTC called Kalshi, K A L S H I. And I was recently talking to their team and just trying to get an understanding, hey, how does this work? What are people betting on? You know, where are these people coming from? Are these hedge funds or the individuals, whatever? And the guy pulled up the platform and he said, you wanna know what people are betting on today? He goes, one of our biggest markets, people are betting $25 million a day on what the highest temperature will be in New York City tomorrow.

• 52:08Speaker 01

  And I sat there and I said to myself, oh my God, there's $25 million per day that is being wagered on what is the temperature going to be tomorrow in New York City? And so is it going to be 14 to 15 degrees? Is it going to be 15 to 16 degrees? Is it going to be 16 to 17 degrees? Tens of millions of dollars. And this stuff just started, right? I mean, this stuff is all pretty brand new in the last year or so. So as that continues, there will be prediction markets for everything. You'll be able to bet on who wins an Emmy or an Oscar. You'll be able to bet on, does a certain thing happen in the world, right? Does somebody get elected? Or we saw in the presidential election, like who's going to win the debate? Who's going to win certain seats? Who's going to become the president? All of these things, now you're going to start to be able to bet on it.

• 52:52Speaker 01

  But one of the things that I think is really important to call out here is although there will be plenty of critics to say, oh, that's just another form of gambling. I do think that there is going to be this kind of meshing of many of these markets, whether it's sports gambling, prediction markets, or stocks. And maybe a good example is, let's say that I am very interested in Tesla. And I continue to look at the company and evaluate it. And I know that an earnings call is coming up. And I want to bet not on what is going to happen with the price movement of the stock. I have an opinion on are they going to hit their delivery number or not? And right now, in the stock market, what people have to do is they say, okay, if Tesla hits their delivery number or beats it, the stock's going to go up.

• 53:35Speaker 01

  But what in practice happens is Tesla will beat this delivery number and then Elon will say something in the commentary and the stock will dump because people will say, oh, Elon is bearish about next quarter or something. So now all of a sudden, you said, hey, I was right on the thing that I wanted to bet on, but there was all these other factors around it that actually the stock market moved against me. Well, in a prediction market, you can actually go and you can bet just on will Tesla beat on the delivery number or not? It doesn't, nothing else matters. It's just a yes or no, it's a binary thing. And so you can imagine in the financial world, all these different details that people would want to bet on. What is the delivery number? You could even do, will Elon mention, you know, Dogecoin three times or more in the earnings call?

• 54:19Speaker 01

  That could be a prediction market. And so you get into this very interesting world where I think the mainstream media is going to start to cover these prediction markets because these prediction markets actually are telling us the truth because it's a market dynamic that's determining it rather than kind of opinions of journalists, bloggers, people with Twitter accounts, etc. And so if that starts to happen, now you have stocks, gambling, you know, kind of in sports and prediction markets, we now become in a society where actually economic value being wagered is a signal for what you believe or how you think the world is going to play out, which sounds a hell of a lot like investing in companies and trying to predict which one's going to succeed and which one isn't, right?

• 55:04Tom Bilyeu?

  Ding ding ding. Yeah, that that is exactly what I'm talking about. That is an utterly fascinating glimpse into a potential future that I think is all too plausible, that basically people are just going to turn into gambling machines. Yeah, it's interesting because I think the stock market has, there's so much knowledge required that it keeps out the average person.

• 55:29Tom Bilyeu?

  I don't know if it's a good or bad thing because as we go to things that people think that they already understand like sports or, you know, will he mention something three times in the next earnings call, that you're just going to see a lot of people gambling, gambling, gambling, which then brings about squid game type people getting themselves in trouble. It's, it can be dystopian really fast. Okay, so speaking of people's penchant for gambling, what do you think about meme coins?

• 55:56Speaker 01

  Yeah, so, you know, I should say first before we talk about the meme coins, like the gambling in general, I actually think is a pretty big fool's errand for 99% of people. I just described in sports gambling, there are basically the equivalent of hedge funds being set up where they're calculating all this data, etc. If you think you're going to sit down on a Sunday morning, you know, go to the store, get some beers, get ready for the games, and then all of a sudden you're going to like outperform the hedge funds, it's probably going to be pretty difficult to do. And so what we're seeing is the kind of the professionalization of these markets. And so if the odds are Further tilted against you, your odds of losing obviously are much higher. And there can become a spiral. It's why you see the gambling hotline numbers and stuff having to be promoted alongside any of these companies.

• 56:41Speaker 01

  And so I don't think we want to become a gambling society. Like I actually think that would be pretty detrimental to the United States. And so there's like a paradox of we want people to be able to do what they want with their money. But also we can recognize that if everyone was just gambling all the time, that probably wouldn't be great for the productivity of the United States and happiness and things like that. And so meme coins are kind of like the final, uh, maybe version of this. And I'll give you maybe an analogy of kind of how we get to meme coins, right? So we talked about Berkshire Hathaway. Uh, if you think about Berkshire, 90% of the value of the stock is because it's a great company. They have cash flows. They've bought things less than they're worth. Like Warren Buffett has really perfected the value investing kind of approach. But 10% is the like Buffett bump.

• 57:26Speaker 01

  Right? People love Warren Buffett. He's kind of like the aw shucks grandpa from Omaha. He's been able to build this brand and kind of, uh, I would argue almost like a pseudo religion around his approach and you know, he's got his annual sub stack that he sends out, but really it's just called an annual letter. Uh, he's got a conference that people, you know, kind of go to Mecca, uh, in Omaha or the financial Mecca and they go and they check it out. And he's kind of like this like finance influencer for boomers, right? And that's really important because 90% of the value is the company and the cash flows and the assets et cetera. But 10% is that Buffett bump, the Buffett premium. And so that's been amazing for Berkshire because it obviously helps on the stock price.

• 58:07Speaker 01

  But more importantly, he wins deals because of it. People want to sell their company because Warren Buffett bought my company. He's able to attract capital, all that stuff. So you can think of that as like 90% company, 10% meme. Right? People are like, oh, Buffett's not a meme, whatever. But like, it's the same idea, right? The brand, the meme, whatever you want to call it. 10% of Berkshire. Go to Tesla. Tesla is maybe 50, 60% company, 40 or 50% meme. Elon's the greatest marketer of our generation. He's got this rabid fanbase online. At times Tesla's traded at massive premiums. He's been able to attract capital. He's been able to do things because he's got that brand or that meme, right? And so you get Berkshire is kind of there. Tesla's the next step.

• 58:49Speaker 01

  Take it to the third step, which is the Trump media stock. DJT is the stock ticker. It's like a $7 billion company on $4 million of revenue. So that's like 10% company, 90% meme or 90% brand, right? Now, if we look at, they basically inverted from Buffett 90% business, 10% meme to DJT is like 10% business, 90% meme. Well, the next logical step is literally a meme coin, which is 0% business, 100% meme, right? And so like we've been going down this path now for 40, 50, 60 years. It's just that we finally reached the final form, which is people are saying like, screw it. We don't even need a business.

• 59:29Speaker 01

  We can just launch these things and whatever brands tied to it, people will ascribe some value to it. And so the scary thing for somebody who is thoughtful, who thinks of themselves as kind of a sophisticated investor. They say, what is underlying this? How do I underwrite it? And the answer is you're never going to be able to underwrite it. So from that standpoint, you think this is insane, crazy. You'll never buy it and you think it's stupid, right? 80% of my body is in that category, but 20% of my body is in the category of, man, something's going on here, right? First, we saw kind of no name people do this. Then we started to see kind of smaller brands or celebrities. Then we saw bigger ones do it. That's the President of the United States. It's Donald Trump, right? These are the biggest brands in the world doing this thing.

• 1:00:14Speaker 01

  And they've created 30, 50, 70 billion dollars of market cap, depending on when you look at the, at the coin. Is it sustainable? I have no clue. Am I buying it? Absolutely not. But we gotta pay attention to this thing because it feels like this is some version of a, a collectible or a trading card or whatever. And so I think there's a lot of people looking at it through a financial lens. But I actually wonder, is that the wrong lens to look through? And instead you should look at it through the entertainment lens. People are buying these things because they want to be entertained. It's almost like a video game to them. And if we get into a world where people's portfolio starts to look like a video game, people are gonna lose money, it's gonna be more akin to gambling. Like, there's all those issues that we talked about.

• 1:01:00Speaker 01

  But, doesn't mean that we're gonna stop. Doesn't mean that there're not gonna be more of those in the world. And so, to me, that is the difficulty of evaluating kind of the meme coin world, is there's nothing underlying it. There's no utility, it's not used for anything, there's no product, there's no service, there's no revenue, there's no anything. But there's a brand attached to it. Is the brand worth $30 billion? You'd be hard pressed to find someone that's like, "Yeah, 100%." But it's probably worth something. But again, you're playing a game where there's massive risk? And the question becomes, is there enough juice worth the squeeze? Right? Like, you know, if you go and you buy these meme coins, if there is no assets, no product, no service, whatever, what do you do?

• 1:01:44Speaker 01

  Well, like, I think to your point, you're just gambling. Right? And if you wanna go gamble for entertainment purposes, like, "Hey, you should be able to do whatever you want with your money", that's not my investing style, right? So I kinda take a different approach.

• 1:01:55Tom Bilyeu?

  Yeah, I think meme coins are where we all just admit, "Oh, this is what it always has been from top to bottom", the stock market, all the financial system, it is all gambling from top to bottom. And when you get to a meme coin, everyone just agrees that the emperor has no clothes. But everywhere else, I point and I say, "Oh, the emperor has no clothes", and people are like, "Oh, Tom, you're an idiot, you don't know what you're talking about", and I'm like, "Nope, there's virtually no predictive validity to people's behavior when I think of them as like, a strategic investor", there is 100% predictive validity when I say, "Oh, you think that you'll be able to sell this for more money down the road." Now, I'll go back to this idea of a cover story, a good business with sound financials, all of that gives you a great cover story.

• 1:02:39Tom Bilyeu?

  But I think the real reason that works is it becomes like legal contracts, where the vast majority of people just get, they get blocked out of the system because they don't understand it. So, most people don't invest because they just don't understand it. And so, they don't go gamble on that thing, they'd rather just go gamble on sports, because at least the sports they gamble, they can gamble based on emotion. And I get it, there are gonna be people of all intellectual strata that cannot stop themselves from betting on something, to your point, which is how people get themselves in trouble. They do things on leverage, and so they can lose more than everything. It can literally be wildly negative balance.

• 1:03:17Tom Bilyeu?

  But once you understand all of it is gambling and some people just have way stricter like if I go to a casino first of all I don't gamble. But if I were going to go to a casino, I would find the thing where I can play the longest, I can enjoy myself, that I'm not going to lose a ton of money. Cool, that's my strategy. So I'm going to play something like the stock market where I can be like, well, if I stay in for 10 or 20 years, I'm probably going to be fine. I'm not going to get the big upside that other people are going to get, but cool. But as we really take off the shackles when the president is launching his own meme coin, I think we can agree that we're more or less at least for the next four years, we're taking off the shackles here. And we're just saying, all right, why do people want to bet on the Donald Trump meme coin?

• 1:04:02Tom Bilyeu?

  Because it's going to have extreme volatility, because people are going to pay attention, because he is going to be constantly in the news. And so now you're just allowing people to bet on that without having to go to a polymarket or something else like that where it's like, okay, how many times is he going to say greatest of all time in the next speech? Instead, you just go Trump brand up, down.

• 1:04:24Tom Bilyeu?

  But ultimately, the reason that people are going to gravitate towards these big cultural moments is because where the cultural energy goes, now you're able to bet on that. And again, it makes sense when you just go, oh, that's all any of this is. Agreed that it's degrees of risk, it's some people really need to embrace, no, no, no, there are fundamentals here, there's something that I can base my own deriding on, all of that. But all of that is just to facilitate people gambling. Now with the stock market, the one thing I will give it is by creating this gambling pool around these companies, you're able to let those companies raise money and do incredible things. So in terms of is it justified to let people gamble on it?

• 1:05:05Tom Bilyeu?

  I like it way better in the stock market because it does something for the economy that betting on meme coins is never going to do. And in fact, I think there's an argument to be made that by letting people gamble on meme coins, you're really dissipating capital. Because all the capital that would otherwise be forced to gamble inside of a system that brings capital to businesses that create things that we want, that generate GDP, all of that. That sounds like it has a better knock on effect. But to what you said earlier, oh, man. It's like you gotta let people decide what they're gonna do with their own money. But it really won't be only positive. And so this is where I think we're. I'm very glad that we don't just do what I think we should.

• 1:05:48Tom Bilyeu?

  I'm very glad that this will be something that will be decided by a lot more people than me. Uh, but woo buddy, like this is. I don't think there's any way to say people shouldn't be able to do it. Other than to say you're too dumb and you need a nanny.

• 1:06:02Speaker 01

  Well, one of the um, things that recently uh, kind of came back up in my memory. Is in 2016 or 2017, uh, I went to Nigeria. And in Nigeria, um, you know, most people would think about the country and they'd say, oh, they're probably way behind the United States. Uh, it's probably a very different culture, etc. Nigeria has about 200 million people that live there. Uh, it is a very young demographic. It's growing very quickly and it's estimated by about 2050, 2055. There will be more Nigerians in the world than Americans, to give you a sense.

• 1:06:33Tom Bilyeu?

  Whoa.

• 1:06:34Speaker 01

  So growing very quickly. There's very high internet penetration and very high mobile phone usage. And so it's a kind of a technology forward uh, country, given those demographics and the penetration. And one of the most eye opening experiences I had in Nigeria was the country's love for soccer, what they call football. And they, everywhere we went, they were watching games. And I think I kind of expected that part. But I saw one thing that I wrote about when I came home and I said, I saw the future. Which was in Nigeria, they had these betting houses. So you could basically go, it's physical location. And you could walk up to the counter and you could make a bet on whatever game was coming up.

• 1:07:17Speaker 01

  And you know, I wasn't really paying enough attention to know was it prop bets or just, you know, bet on the score or what people were going and they were exchanging physical money. But they had a bunch of the TVs on, so you could literally sit there in the room. You could watch the games that you just bet on, right with your friends. And then you go back, you bet on more games, whatever. But on the far right of all these screens was one game. And when all the other games were either over or done with or a commercial or whatever, this game kept playing. And it was kind of far for me to see, so I walked over and said, what are they watching? And I realized that they were actually watching video games. It was a video game of soccer. And so I said to one of the kids, I said, hey, man, who's playing? He said, oh, no, none of us are playing the game. It's a simulation.

• 1:07:59Speaker 01

  And they were betting, they were betting on the simulated video game. So if you ever play like Madden or NCAA or NBA 2K, whatever, now you can simulate a game and it'll have the teams play each other, but nobody's actually playing. That's what was going on and they were betting on it. And so I was sat there and you know, kind of the naive American saying like, well, how do you know this is not rigged? How do you know that, you know, so like whatever.

• 1:08:22Tom Bilyeu?

  Literally just wondering who oversees the algorithm that creates that.

• 1:08:26Speaker 01

  Like, of course, right? In America, there's like no trust whatsoever. But these guys were sitting there and they were playing this game, they were like betting on this simulated game. And so I think that that actually, if you extrapolate that out, the meme coins, there's quote unquote, some algorithm. The algorithm is just the market is making this thing go up and down and it's got people's attention and they're betting on it. And we're sitting there saying like, this is insane, but it's actually just a natural progression. It doesn't mean that you should go do it, but it's not hard to see, again, going back to volatility, if there's something with a big brand on it with lots of volatility that can get the media to talk about it. Of course, people are going to pay attention. And then if you essentially dangle an opportunity in front of them to say, do you want to bet on whether this goes up or down?

• 1:09:11Speaker 01

  Like go to the local state fair. And people are trying to shoot basketballs that are too big to go into the basketball room. I wonder if I could do it. Right? They're trying to slam the sledgehammer to see, can I hit it hard enough to make the thing go up? They're trying to shoot a paper target with a pellet gun that doesn't quite shoot straight. So when you think about all those things, you say to yourself like, man, do you think they're not going to bet go up or go down? Of course, they're going to bet on go up or go down. Right? And so I think that it is much more an entertainment lens than it is a financial lens. The question is going to be, people are putting real money into these things and are the regulators, are certain people going to step in and say, hey, I know that human nature is to bet up or down? We're not going to let that happen or we're going to, we need to change the rules or

• 1:09:55Speaker 01

  standardize or there's going to be disclosures, you know, whatever. I think that's the stuff that now is going to really come to the forefront that the president has got a meme coin.

• 1:10:05Tom Bilyeu?

  All right, you have the impulse that people should be able to do whatever they want with their money. But do you think that meme coins should be regulated and really tamped down on? Or do you want to see people betting on anything they want, including simulations, meme coins, whatever?

• 1:10:20Speaker 01

  I think that there's a middle ground. It doesn't have to be yes or no. I think it's yes with changes is probably the right way to think about it. And so, you know, disclosures, who's launching this? How much do they own? Could they sell in the market? When are they selling in the market? And one of the things that I think the public markets really gets right is if you're the CEO of a company and you own a lot of the stock, you got to tell people when you sell.

• 1:10:45Speaker 01

  Like, that seems pretty fair, right? And so those are the types of things where rather than attack individuals' ability to do what they want with their money, maybe actually what you should do is you should attack the other side of the problem and say, how do we give these people as immense amount of information as possible? You know, if you want to go and let's say that you're the CEO of a company and you want to write a tweet about your own business, there's tons of disclosures, there's tons of rules and regulations, all this kind of stuff. With a meme coin, that stuff doesn't exist. And so it may actually be less about do we tell people what they can do with their money or what they can't? And more about if people are going to do this, if they're going to issue these things, if they're going to, you know, kind of offer these opportunities, there's a ton of rules, regulations, standardizations, et cetera, that get put in kind of in place.

• 1:11:30Speaker 01

  And, you know, what this really feeds into is if you think about the public markets, probably one of the biggest maybe complaints from public market investors right now is that the public market is much less popular than it used to be. There used to be 8,000 public companies, now there's like 4,000 public companies. And so people look at, yeah, huge drop, 50% drop. And if you think about that drop, people are like, oh, companies are staying private for longer. They've got more access to capital. It's really expensive to be a public company. It's really erroneous in terms of how hard it is to comply with all the regulations and, you know, all these things. And so naturally, companies are want to stay in the private market if they have access to that capital.

• 1:12:09Speaker 01

  But what they don't suggest is actually the public markets are more popular today than ever before. We have 4,000 publicly traded companies on what we consider the traditional stock exchanges. But there are hundreds of thousands of publicly traded tokens. And so people not only said, hey, if I have a company, I want to stay in the private market. But also, there's a bunch of people who said, hey, I want things that are publicly tradable, but I'm going to not go to your stock market. I'm going to go to these new markets and have them publicly trade over here. And so it's very clear that it is the cost of regulation, the burden of the regulation, all that kind of stuff. But you want people to be protected. And so that's a natural tension that I think has to get worked out of, is there a way to make this less costly for people to have public companies?

• 1:12:54Speaker 01

  Is there a way to allow more and more people to participate earlier in the lifecycle of these innovative businesses that are getting built in America, but also still get them the information they need? But that crypto world is all these new public kind of assets that are trading, means that that young generation that everyone thinks is an interest in the stock market, they want liquidity, they want public markets. They just don't want to do it in the world that the stock market currently exists in. And maybe one of the best examples is I invested in the private market in Reddit. And Reddit went public. And when Reddit went public, I was really excited about the IPO. I was like, oh, my God, look at this. All these guys on Reddit who use it all day long,

• 1:13:38Speaker 01

  that talk about stocks, they're going to go buy the Reddit IPO because that's the platform they use. Great. You have, you know, some stock, there's more demand, the price should go up. And the stock did pretty well. But a couple of days before the IPO, a bunch of people started tweeting at me. And I was like, what is going on here? And they kept talking about Reddit. And then all of a sudden, I realized they were talking about Reddit Coin, not Reddit the stock. And I said, what is Reddit Coin? And I went and I looked. And someone had created a Reddit Coin right before the stock went public. Well, on the day that it went public, guess what happened? They both went up, but the Reddit Coin went up way more than the Reddit stock.

• 1:14:19Tom Bilyeu?

  Why?

• 1:14:21Speaker 01

  Because you just had people who were looking for a traditional stock investor wants to understand what are the assets we own, what's the cash flow, what's my downside protection? Where am I in the capital stack, right? What is our future plans? What is kind of our 2025 outlook? How are we thinking about, you know, AI as a threat or an opportunity, all these things? So there's a ton of evaluation that goes into it. And there's just as much focus on what's the downside as what's on the upside. But actually, there's usually a lot of people who want to buy a stock who simply say, I want pure price exposure. I don't care if I have, you know, a claim on the assets. I don't care if I have a claim on the cash flows. All that stuff is for the smart Wall Street people. I just want to speculate on

• 1:15:05Speaker 01

  the price. And so the coin has none of this stuff. I just want to know coin up or coin down. And you can imagine for me, from an investor seat, I'm holding the equity, right? I did the smart thing. I did, you know, frankly, the legal thing. And so I'm like, oh, okay, wait a minute, the world is changing. How is it that on IPO day, the people on the internet are buying a coin that's going up more and it's somehow tied to this thing? And so I walked away from that day saying to myself, if you don't understand something, you can't knock it. Right? Because maybe you're missing something, maybe you don't understand something. And I really went and I spent a lot of time trying to understand this. And that my conclusion was there are investors who want to own businesses, kind of, you know, the Buffett or maybe the tech investors, etc. They want to own the equity in the business. They want downside

• 1:15:50Speaker 01

  protection. They want to claim on assets, cash flows, etc. But there is enough people in the world, they just want pure price speculation. And a coin gives them more volatility. And if the Reddit stock goes up, the coin goes up more. If the red stock goes down, the red coin goes down more. And so it's almost like a levered price, you know, a levered volatility on the price. And so that's when I said, you know, look, man, this game is hard. This game is real hard, right? And you just got to kind of tip your hat and say, look, things change very quickly and try to do your best to keep up.

• 1:16:24Tom Bilyeu?

  What do you think? How much of that is the Wall Street Bets fuck the man ethos going on with that?

• 1:16:31Speaker 01

  It's impossible to put like a percentage on it, but it definitely plays into it for sure. You know, one of the interesting things is if you go back and you look, you know, I recently read a book on Carl Icahn. And Carl Icahn is this famed, you know, kind of corporate raider. He is known as one of the best activist investors in history. And when you read the book, you know, he's called King Icon, it's the title of the book. And in the book, they talk about how Carl Icahn thought of himself as an outsider. And he had the like F the man, you know, mentality. And the reason why he became an activist investor is because he felt like corporate executives and CEOs were flying around on private jets and they had country club memberships and these big salaries.

• 1:17:16Speaker 01

  And they were taking the money from the shareholders to enrich themselves. But they actually owned very little equity in the businesses that they were running. And therefore they were incentivizing themselves to get rich at the expense of the shareholder. And so he would start buying up the stock and he would go and say, you guys are enriching yourself. You should do this, this, and this to the company so that the shareholders actually make more money. And, you know, activist investing, short investing, this stuff is very important to the market. It's kind of a check and balance on what's happening in the market.

• 1:17:45Speaker 01

  But people wouldn't think of famed Carl Icahn, you know, kind of the king of Wall Street and activist investing as the guy who's saying like F the man. But that's, that's literally why he started doing some of this stuff. And so again, people want to point to like Wall Street, that's like this is brand new. It's actually not, right? It's just that it's a new form for that same energy. And so I think that the form factor is much more kind of interesting and worth paying attention to than the energy of like, you know, F the man. There's plenty of people over the years who've had that mentality. And some of the funny things are like the biggest billionaires in the world have that same mentality. You know, Elon Musk sitting at the, I think it was the Dealbook Summit one year. And Andrew Ross Sorkin asked him about advertisers.

• 1:18:31Speaker 01

  And he said, you know, go F yourself. And he said, what did you say? And he turned to the audience and he said, just so I'm super clear, advertisers, go F yourself. And you're like, all right, well, that guy's like the richest guy in the world. And he definitely has the like F you, you know, man energy, right? It's just a different form factor. And so I do think Wall Street Bets is, you know, one cohort of this rise of self-directed investors. And to me, the self-directed investor trend is fascinating because the self-directed investor is the doctor lawyer who sits at home and is investing. The self-directed investor is also the, you know, kind of mid-level manager who goes home and studies stocks on the weekend.

• 1:19:13Speaker 01

  The self-directed investor is the portfolio manager at JP Morgan or at a hedge fund that's trading their personal money. And so everyone feels like they personally are a self-directed investor now. And self-directed investor means that you have access to information. So you're on Twitter, you're on Reddit, you're, you know, reading the news, et cetera. You don't need to call up the bank and say, hey, what do you think? What's going on? You just get the information yourself. And then there's been a rise of these tools, things like, you know, eToro, Robinhood, Public, Weebull, et cetera. Where now I don't need to call a financial advisor or a broker and actually go and execute trades. So now what I've done is I've broken down the friction to information and to the market. And I've empowered individuals to be able to go and do this.

• 1:19:56Speaker 01

  Well, as those self-directed investors start allocating in the market, do you think some of them are going to be like, well, screw the hedge funds, screw the, you know, the CEOs, screw the man, screw the incumbents, of course. And so, you know, is the best way to kind of put that forward? Buying certain stocks like, you know, GameStop and, you know, kind of F the man and let's go and short squeeze people? It's one form. Buying the, you know, Reddit coin instead of the Reddit stock, is that another form? Absolutely. Buying meme coins and trying to make more money than your dad or grandfather or mother or grandmother? Is in the stock market? That's another form. Right? Like, these are all different variations of the same thing where people are saying, hey, I'm trying to get ahead.

• 1:20:41Speaker 01

  I'm trying to risk capital and get a return. And maybe it looks different, but it's something that I understand or I believe in, or I'm gambling on, whatever. And so I think the question just comes back to, you know, if we fast forward 10 years and we look backwards. Who's going to make more money? The speculators who are trying to time markets and you know, look at these different trends? Or the people who are trying to allocate capital to kind of highly resilient assets that'll be around in 10 years? They're both speculating, right? But I think that young investors, the best thing they can do, and the reason why I said, you know, buy the indexes, buy Bitcoin, things like that, is what you really want to be able to do is not optimize for what is the thing that I can buy that can go up the most?

• 1:21:23Speaker 01

  What you want to do is you want to buy the thing that you have the highest degree of confidence will continue to grow year after year after year for a long period of time. And it's really hard for young people to think about compounding, right? You know, when you're 22 years old, you're not thinking about when I'm 55. When you're 55, you wish you were thinking about it when you're 22, right? And so it comes down to this idea of are you trying to buy an asset that's going to go up 20x in a single year? Or would you rather buy an asset that's going to go up 20% a year for 20 years? That's the question people face, right? And I think that the people who are kind of more long-term thinking throughout history, the data shows they tend to do much better than the people, you know, kind of just trying to win, uh, you know, the short-term kind of get rich quick games.

• 1:22:07Tom Bilyeu?

  All right, friends, that was just the beginning with the incredible Anthony Pompliano. We've broken down how speculation is driving the markets, but here's what I really need you to understand. If AI is getting into the game, what happens next? What happens when machines control the markets, when human investors can't possibly keep up? And who really benefits from that shift? That's exactly where we're going next in part two. Make sure you're following the podcast wherever you are listening to this because you do not want to miss it. Until then, my friends, be legendary.

• 1:22:48Tom Bilyeu?

  Let's talk about a pattern that is guaranteed to be killing your progress. You know what you need to do? You need consistent nutrition. We all do. You need vitamins, probiotics, greens. We all know that we should be doing more of it. When your morning gets chaotic, you skip it. When you travel, you skip it. When your routine breaks, everything tends to break and that inconsistency compounds against you every single day. AG1 is designed to solve the execution problem. One scoop, eight ounces of water and you're done. You're getting 75 plus ingredients, vitamins and minerals, pre and probiotics, nutrient dense superfoods, everything that used to require six, seven different supplements, and perfect planning now happens in one drink that takes about 30 seconds to make.

• 1:23:33Tom Bilyeu?

  Right now, AG1 is giving you $87 worth of free gifts with your first subscription. You get a welcome kit, travel packs, vitamin D3 plus K2, and flavor samples. Click the link in the show notes or visit drinkag1.com/impact to claim this offer.