Alex Hormozi: Why He's Trying To Make More Money & How He's Doing It

Shaan's Free Workshop --> http://bit.ly/3INb6EV Episode 462: Sam Parr (@TheSamParr) and Shaan Puri (@ShaanVP) talk with Alex Hormozi (@AlexHormozi), founder of GymLaunch and Acquisition.com, about what he regrets about selling his business and why he's pumped about starting a new one, how he spends his money, and his secret to a successful marriage. Want to see more MFM? Subscribe to the MFM YouTube channel here. Check Out Shaan's Stuff: * Power Writing Course * Daily Newsletter Check Out Sam's Stuff: * Hampton * Ideation Bootcamp * Copy That ----- Show Notes: (04:00) - Upsides and Downsides of being famous (10:45) - Status of Acquisition (31:55) - Regrets about selling (41:30) - Why do people get mega rich? (58:20) - Who do you admire? (01:04:40) - Secrets of successful marriages (01:13:30) - What products/brands are you obsessed with? (01:18:10) - What are you doing with your money? ------ Links: * Acquisition * Do you love MFM and want to see Sam and Shaan's smiling faces? Subscribe to our Youtube channel. ------ Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more. ----- Additional episodes you might enjoy: • #224 Rob Dyrdek - How Tracking Every Second of His Life Took Rob Drydek from 0 to $405M in Exits • #209 Gary Vaynerchuk - Why NFTS Are the Future • #178 Balaji Srinivasan - Balaji on How to Fix the Media, Cloud Cities & Crypto * #169 - How One Man Started 5, Billion Dollar Companies, Dan Gilbert's Empire, & Talking With Warren Buffett • ​​​​#218 - Why You Should Take a Think Week Like Bill Gates • Dave Portnoy vs The World, Extreme Body Monitoring, The Future of Apparel Retail, "How Much is Anthony Pompliano Worth?", and More • How Mr Beast Got 100M Views in Less Than 4 Days, The $25M Chrome Extension, and More

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

• 0:00Alex Hormozi?

  Like everybody here, we can all consume whatever we want. So we can fly in whatever planes we like. You know, you can fly private, you can stay in the nicest hotels, get the nicest airbnbs, go out to dinner every single night of the week at the five star restaurant, at the Michelin star. And you can do that for the rest of your life. But I can't buy that skyscraper right there. And I can't buy this huge company. And so what happens is like the things that you want to buy change. And so you create a new deficit for the amount of wealth that you want. Again, this is just assuming you like the game. And so like, I like the game, so I just want to keep playing it.

• 0:39Shaan Puri?

  Where should we, where should we start? Cause you do a lot of these interviews. What, uh, what's the fun version of this for you? Because I feel like if somebody actually wants to know an answer to something, it's been published. You got a book, you got a Twitter, you got, you got a thousand YouTube videos. Like if you're motivated, you can go find the answer. Like I tweeted out, yo, Alex is coming on the pod day. What would you like to know? They're like, I'd like to know his thoughts on offers. Making a sure offer. I think that's literally his book. And I think the book is like free or 99 cents. So like, that's just a lazy, lazy question at this point. But I know whenever I do interviews, there's some version of the conversations that are more fun, or I'm like, yeah, when, when we talk about that stuff, it's more interesting to me. And that kind of lights me up in a different way. What, what is that for you?

• 1:21Alex Hormozi?

  Well, I'll say there's two things that I've been probably focused a lot on. One is obviously acquisition.com. And so like what we're doing and, and kind of clarifying the mission between, well, all the stuff that we're actually doing every day. Um, and then the other side of it is just that the leads book is coming out.

• 1:39Shaan Puri?

  Soon.

• 1:39Alex Hormozi?

  And so it's tough because I'm sure you guys have had stuff that you've worked on and it's like been on its way coming out. And all of your energy is going into writing it or building it or recording stuff about it. And then you can't talk about it because I don't want to, I don't want to, I don't want to talk about it all the time until it's like ready to, to go off. And so the six weeks beforehand is when it's like, we have all this pre-recorded stuff. I've got like full courses, like I've got all this shit that's gonna, that's gonna drop. When the next book comes out, but I haven't talked about anything leads related for like two years because I've known, because I've been working on it for two years. For the next launch. So those are the two things that are like top of mind for me, like what we're doing on the Mozy Media side and acquisition.com and then.

• 2:24Alex Hormozi?

  And then the lead stuff.

• 2:26Shaan Puri?

  What's the split between those two? So you got media, you got acquisition.com. Give me the time split. So given on a given month, you know, what percent if there's a pie chart, what do you spend it on the on the content versus acquisitions? And then also on the money side, like, are you making more off the media or you making more off acquisitions? What's this? What's the relative difference between the two?

• 2:49Alex Hormozi?

  Yeah, we we lose money on media. So no, we don't make money. I think I think between like AdSense and if you consider book sales a part of that, but I give the book away for 99 cents. Actually, Amazon updated it because we re-uploaded it with like some fixits and they wouldn't let us go below 1.9, which now makes all the times I said 99 cents like people were like, he is trying to get us. It sucks anyways. But no, I think the book does. The book does about a million bucks a year in profit in terms of like what it what it makes.

• 3:23Alex Hormozi?

  And then and then AdSense is probably like 500 grand a year. So it's like one and a half million. And that that that barely covers the media team. And so that's.

• 3:31Sam Parr?

  How big's the team right now?

• 3:33Alex Hormozi?

  We've got 10 and then we've got vendors.

• 3:36Sam Parr?

  Are you enjoying it?

• 3:38Alex Hormozi?

  Yeah, I dig it. It's fun. Right now, we do. I reported once said to answer your question, Sean, about time split. We do one recording day every 14 days. That's like the direct to camera stuff. And then if I do a podcast, like I got one of my guys here, Trevor, who's reporting, you know, our our side of it so that they can clip this stuff later. So are you any add box? Plus one, one dedicated day twice a month.

• 4:00Sam Parr?

  Are you enjoying like the celebrity that comes with this, you know, getting noticed and things like that?

• 4:06Alex Hormozi?

  Enjoy is probably like, I feel like there's some people who love attention and there's some people who hate attention. I'm like, right in the middle. You know what I mean? Like I was I was purposely, deliberately not public because I wanted to be rich and anonymous. And that was kind of like the mission for a long time for me. And then now that we are on there, I would say that there are pros and there are cons of increasing, you know, fame or what do you want to call it? Recognition?

• 4:31Alex Hormozi?

  I think the pros outweigh the cons, but there are cons.

• 4:33Sam Parr?

  Like what?

• 4:35Alex Hormozi?

  You get weirdos. You know what I mean? Like we're we have we have security. You know what I mean? Like we go to like, I can't, I can't attend any event.

• 4:43Alex Hormozi?

  Like I can't attend event like I can't go to somebody's like small group meetup like I can't I guess it's very hard. Because I can't enjoy anything because I'll have a lot of people or you know, asking for advice or signatures or pictures or whatever. And like, again, I am grateful as shit to everybody to do that. It's just like, it's a different experience. So I just have to, I have to, if I'm going to go to something, I go into it knowing that's what my experience is going to be, not whatever or whoever's on stage.

• 5:09Sam Parr?

  Yeah, it makes the online experience dope, but it makes the real life experience less different.

• 5:14Alex Hormozi?

  It's different. That's what fundamentally just changes with the in-person experiences. Like if I walk out, so like, what's interesting is that I was able to, or I have been able to, to, to mark how social media and like the, the audience has grown by the number of real world interventions I had per unit at a time. And so like, I remember the first time I got recognized public and then it was once a month and it was once a week and then it was once a day. And then it was every time I'd walk outside the door and now it's about five times or six times every time I walk outside.

• 5:43Alex Hormozi?

  I get, I get recognized. And so like, I just imagine that that just continues to compound, you know, with time and with distribution. So it's just, it's different, but here's the pros. We get the best talent for our portfolio companies and for acquisition.com because so many people want to come here. We get them for at market rate or, or below because of all the learnings that they want and the other people who are also pro players on the team. We get the best deal flow that's all proprietary companies that want to work specifically with us. They're not trying to exit to anyone or sell to anyone. They want to work with us deliberately to scale the company. So like, I continue to do it because I'm more rewarded for doing it than I am punished for doing it.

• 6:22Alex Hormozi?

  But there are definitely, you know, you get weird letters and you get, you know, weird attacks and things like that. Like it's just, you know, it's, it comes with the territory and it's to be expected. And so for us, the pros outweigh the cons, but there are cons.

• 6:36Sam Parr?

  I remember talking to Tim Ferriss and you could just tell from the outside, but he. I don't know if he's mainstream famous or not, or if I'm in a bubble, but he's popular enough that he has all these people listening to him and all that stuff. But he, well, the cool thing about him was he had high profile people and people who, like a lot of people who listen to you, you're like, I'm thankful that you listen, but I don't exactly want to go hang out with you. But he would actually have a ton of listeners who would reach out to him, who were like, you know, like the Matthew McConaughey's of the world, or, or some like football coach, or Ryan Holiday has that too, where it's like, someone who's like, a big deal, who you're like, oh my God, you listen to me? That's amazing. I would, I would

• 7:17Sam Parr?

  be honored to go and hang out with you. And he had, he had stories like that. And Sean and I have had that a little bit, where like, some like business person who we both admire will be like, yeah, I heard your pod on this thing. And I'm like, oh, wow, you listen to that? Has that, have you crossed that threshold where you have people who you admire, who are messaging you and being like, man, what you said was really cool. What's your, you know, I have a question about X, Y, and Z. And you're like, oh, man, that's amazing. My heroes want to talk to me now.

• 7:42Alex Hormozi?

  Yeah. Um, I mean, yes. I don't want to put anyone on blast, but like, there have been some mega, mega influencers who are like, followed me and like, hit me. And they were like, dude, this is awesome. And I'm like, well, now, I think less of you because you follow my content. So I, big red flag there. You know, I told Leila, the biggest red flag I had with her was that she was intimate. Um, not kidding. But, um, but yeah, like some NFL players that I used to like, you know, really look up to, like huge MLB stars, like, and, uh, like huge, huge podcasters that, that, you know, followed me. And, uh, yeah, it's been cool. One of the, one of the reverse situations is when I like, go to like, see, I'm like, oh yeah, how is so and so celebrity? And I click and it says like,

• 8:25Alex Hormozi?

  follow back. And I'm like, oh shit. Uh, but no, it's, it's cool. I mean, it's, it's, it's surreal. I'm sure you guys have had, it's surreal. It's very, um,

• 8:34Sam Parr?

  Well, I grew up like admiring Lance Armstrong. I'm, I'm big into endurance sports. And one time I got an email and it was like, uh, hey, just want to let you know, I love the hustle. And he signed it with Lance and you could tell it was Lance Armstrong by his Gmail. And I was like, I don't believe this is really Lance Armstrong. If it is, here's my phone number, call me right now. And he called me within like three minutes. And I was like, he called, he goes, Sam, what's going on? And I was like, Lance, is this really you?

• 9:06Sam Parr?

  And then I had a couple of other athletes holler at us. And I remember thinking like, growing up playing sports, I would have killed to have athlete like this recognize me. And I could never achieve the athletic greatness enough for them to acknowledge me, my talents. And then now you just take this total like outside path and you get to it. Or like one time we had like, this was really weird, but like the lead singer of Lincoln Park, Mike, he like tweeted out that he likes our pod and the hustle, whatever. And I was like, oh, that's sick. Like I never, I would have wanted to have met you, but there's no way I could have gone down this normal path. But if we went this weird way, we finally kind of met and I found that to be very strange and awesome.

• 9:46Shaan Puri?

  Yeah, it's sort of that be so good, they can't ignore you as a general advice for life. Like whatever, whatever you want is on the other side of you being so good that you can't be ignored.

• 9:57Sam Parr?

  At anything.

• 9:58Shaan Puri?

  And at anything. And also like it doesn't have to be, I think that's kind of what you're saying, Sam. It doesn't have to be the thing you expect.

• 10:07Sam Parr?

  Right.

• 10:07Shaan Puri?

  Like, oh, you want, you know, you want to meet Warren Buffett someday? You don't have to be a stock picker. That's not, that's probably actually the least likely way that Warren Buffett is going to want to, going to want to know you. And in general, you shouldn't really pick based on what they want. You should just pick based on the thing you can actually get so good at that you can't be ignored. And it's hard to do, obviously that's hard to do, but it's like more of the, it's more of the right guidance than, than many other bits of advice you could take as far as like a North Star for how you're going to like, you know, what you're going to go for.

• 10:39Sam Parr?

  Right, exactly. And so anyway, it's cool that we're all kind of like seeing that in reality.

• 10:44Alex Hormozi?

  Want to.

• 10:45Sam Parr?

  Come true. Are you enjoying acquisition.com? Because I know when we first talked to you, I think you are maybe only a year or two years in. You're relatively new. I think you had just sold.

• 10:57Sam Parr?

  Gym launch. Are you happy with like, is it what you thought it was going to be? And do you actually like? And by the way, explain what acquisitions.

• 11:06Alex Hormozi?

  Yeah.

• 11:06Sam Parr?

  What that is?

• 11:07Alex Hormozi?

  Yeah. So it's acquisition.com. The reason I emphasize that is because there's somebody who bought acquisitions, plural.com. And it's just not, it's not me. It's different. But acquisition.com is our portfolio of companies. And

• 11:21Alex Hormozi?

  so I'll give the TLDR 90 seconds. So I had a chain of gyms, took that, licensed the IP to 5,000 locations, started a supplement company to sell through that distribution base. And then started a software company. We exited all three of those companies in 2021. We'd taken about 40 million in distributions prior to the exit and we sold 46.2 million in the software company I did separately or sold separately in a strategic deal that was all stock. And I said it because you guys will probably laugh because like, I, we were like, I Googled Alex Ramozzi's net worth and it says 15 million. It's like, well, I sold the company for 46 and all cash. So like, I don't know where you got that. And the only reason you do that and get that money is because it was making money. So, so anyways, that was pretty much 2021. So we closed December 25th or 6th.

• 12:06Alex Hormozi?

  I can't remember. It was, it was one of those days. It was right around, it's 24th, it's Christmas Eve. That's towards Christmas Eve. We is, we closed. And then we started acquisition.com the next day. And so that was when we like, we made our kind of declaration. At that point, though, I'd already made three minority investments that had done really, really well. And that's why I wanted to make that kind of my next big thing.

• 12:25Shaan Puri?

  If you started it the next day, that means you kind of had this idea cooking. So what was the, what was the genesis? Why did you, why, what made you realize, oh, this is what I should do next? I should buy these minority stakes and, and companies like the one I just built. And I should get this domain name, which I assume you had to buy. So how were you so ready to do that? What was the thought process?

• 12:45Alex Hormozi?

  So during COVID, because obviously gyms were affected by COVID. You know, we took a hit, but we took a major hit. We were so profitable, but it was a, it was a big, you know, it was hard. And so to kind of get some space, because there wasn't a lot like, I couldn't do more. You mean, there was, you mean, like, obviously, we, you know, we pushed things harder, but like, I was above the business enough that there was nothing, I wasn't, I wasn't going to do anything, right? And so I kind of just needed to take my, my mind off things. And so by, by happenstance, a guy who owned a photography, a single photography studio, made his move on my calendar. And in the first, and this is not how you do this, everyone's like, do not do this.

• 13:27Alex Hormozi?

  But I was actually still taking some calls for Alan, because I wanted to do some like testing. And this was before I had a big brand. So I was just kind of like founder, talking to customers to get an idea of what was going on. But he knew me enough from just like, I had written a small book in the gym space called Gym Watch Secrets, that he had read that book, like loved it, applied it to his photography business. And he took a sales call through my software company, because he knew I was taking the calls. And so he hopped on and was like, I have no interest in your software. He's like, but can you please give me 20 minutes? And I was like, sure, man. All right. And I just liked his vibe. And so anyways, we ended up doing a deal. And so we took him already a percentage of the business. And that business, I think, had done 1.6, they were doing 1.6 million a year at a single, single location,

• 14:11Alex Hormozi?

  which is pretty awesome for a tiny like photography studio. And he had, I think he had taken, and this isn't all the book, clearly, because there's a million things. But he had taken some of the concepts from Jim Lachey's book, applied them. And it had grown the business a lot. And he had an agency for photographers to kind of like, do the same model for them, right? And so we were having a conversation. And he was like, yeah, I did exactly what you said. And all the photographer studios add 400,000 a year to Toplight when they use our thing. I was like, they add 400,000 a year? He was like, yeah, on average. And I was like, Okay, uh, how much are we selling this thing for? And he's like pennies and I was like, okay, so um, let's not do that. And uh, let's own them all.

• 14:55Alex Hormozi?

  And so that kind of pit, so he actually, and this is where like the, the trust factor of what like the inbound deal approach is what I love about acquisition comes that we have a lot of trust. And so he actually shut down a business that was making him, I think 500,000 a year in profit, uh, that agency side and shut it down to zero. Because he like believed that, he believed me enough to, to go all in on this other direction of private ownership of all the locations. And so um, as of today, and that was 2020, as of today, we have 36 locations. In that business, you know, just 30 plus million a year, uh, and it continues to grow by at one or two locations every month.

• 15:31Sam Parr?

  And so what's, what's that business do?

• 15:34Alex Hormozi?

  And it varies. So it's children's photography.

• 15:37Sam Parr?

  Right, dude, that's insane.

• 15:38Shaan Puri?

  And you, so when, when we last had you on, I saw, I went to the website and I was like, okay, cool. What, what are the acquisitions? Great. What are the, what'd they acquire? And I saw basically like enchanted fairies. And I was like, okay, cool. They're doing like none of the gym launch playbook on this other space. That makes a lot of sense. And if I go there today, they're still those same companies. So how come you're not putting new acquisitions up there? Uh, I assume you've made a bunch of acquisitions like, you know, in the last 24 months or whatever. Uh, why not put new companies up there? You're pretty open about other stuff, but in this case, you're not putting them up there. And then also, uh, let's start with that.

• 16:12Alex Hormozi?

  Yeah. Main reason, so there's two big reasons why we're not public about the acquisitions. Number one is that it's, my brand has grown to such a degree that like, if I say, hey, this business is awesome. And it, and it has a national ability, like enchanted fairies is less of an, you know, like unless you're in one of those 30 markets, then also my audience isn't like moms with kids. So like it's, it's, it's, you know, it's, it's arms length enough that it doesn't affect the business. But as you can imagine, a lot of the businesses come to me are business services. And uh, they're, you know, they're national, they're international, whatever companies. And so like me endorsing a company would five, 10x the company overnight. And so that comes with a couple of things. One is that I haven't negotiated those deals with a brand endorsement included.

• 16:58Alex Hormozi?

  If I include a brand endorsement, then I own majority. I'm not gonna, like, I'm not gonna risk my face on something I can't control. And so these are most of the investments we have are minority. We do have a majority of investment as well.

• 17:13Alex Hormozi?

  But that was one that came in as a minority and then I just bought more of it. I love the business.

• 17:18Alex Hormozi?

  And it was up our wheelhouse. The second thing is that if we were to exit those businesses and I had done an endorsement in a minority position, then guess who has to go with the deal? Me. Right? Like I would, as an acquirer, if there's some massive influencer that's associated with the brand, like he's not getting in a deal. And so our whole goal is to build value in the, in the business so that the business is sellable and more valuable. And we use my face to bring deals in. And so that's why I've been really, really tight lipped about the businesses.

• 17:51Sam Parr?

  How many deals have you done so far?

• 17:53Alex Hormozi?

  We've done, right now we have 11 portfolio companies.

• 17:57Shaan Puri?

  Is it all your own money or you raised a fund?

• 17:59Alex Hormozi?

  No, it's all private. It's all mine.

• 18:01Sam Parr?

  Damn dude, so you're, you're going all in on this. And so I asked you originally, are you happy with how this is working out? Is it what you thought it was?

• 18:09Alex Hormozi?

  What's he gonna say? No?

• 18:11Sam Parr?

  Well, yeah, I could be like, well, he's like, well, I didn't, I didn't realize like, uh, this is actually just a mostly a due diligence game. Um, and I don't know if I'd love that. I mean,

• 18:20Shaan Puri?

  What's the worst part about it? What's something you didn't, what's a downside you didn't fully respect upfront?

• 18:25Alex Hormozi?

  So I think there's like knowing something and then experiencing it are two kinds of separate things. And so like, I know that in a minority position, we have to use soft influence to, to, to, to try and move things forward. I know that, but I would say that the most difficult part is, is, is half listened to advice. And so I'll give you an example. So if I say, hey, we think that this operator in your business blows and we need a new operator. Person says, okay. And then we find them a new operator and then they hire the new operator, but then they don't fire the old operator. Like what the fuck?

• 19:05Shaan Puri?

  Right.

• 19:05Alex Hormozi?

  Right. Very hard to win at that point, right? And it's like, well, I listen. So like, it's kind of like listening to half of someone's diet advice. It's like, yeah, yeah, I'm doing the cheat days, brushing the cheat days. It's like, yeah, but there's other days that you're in a deficit. Yeah, but you said cheat days, raging metabolism, like, yeah, but you also need a deficit. You know what I mean? And so it's, it's, it's listening in completeness. And so, um, I don't know, we may move to like, cause like the business that I, I would say transparently that I enjoy the most is the one that we have complete control of. And so we bought majority of that business and we were growing that one like gangbusters. And the speed to action is so much faster.

• 19:45Alex Hormozi?

  That being said, you know, we've, you know, I would say like the, the biggest wins we have been a company that came to us at 16 million the year before, you know, did 50 last year. 20 million in EBITDA, uh, so that's the biggest company that we have in the portfolio. We've had, you know, the, the enchanted fairies is obviously one that, you know, we did that at two wish with, you know, combining the two things though. They're pacing two and a half million a month right now, or 2.7, something like that. Um, so we have some.

• 20:10Shaan Puri?

  Pretty ridiculous deal, right? Like I had a friend message me that was like, dude, Hermosy's playbook is obviously amazing, but he's like, this deal that they offered us. He's like, I don't know who would take this and, uh, you know, he's like, there's, uh, I don't know if this is actually the deal or not, but he was like, basically it was like, no money, we'll give you no money, but we get ownership above, if we grow it above X. So it's kind of like, uh, I think sounded like more of a risk, risk free strategy in a way. But, um, is that, is there a standard deal structure? And is that it where you're not putting capital in, you're basically saying, give us the equity. We guarantee we grow by this much. And if we don't, some, I don't know, some, some clawback.

• 20:51Alex Hormozi?

  We've iterated it honestly, a bunch of times. So one of the, one of the, so this is to answer your question, Sam, like probably even more poignantly now that we're getting into it. One of the hardest things about like the investment cycle is that when you're making a product or you're trying to sell a service, you can ideate it, create an MVP, pitch it, see how it goes within like 60 days, like the whole, like the whole thing. Soup to nuts, you can, you can do that whole cycle 60 days. For deals, it's like, you can think of, you know, an idea for a deal structure. It takes 90 days to six months to close the deal. And then it might take a year to see, even just like some preliminaries of like, how do we like this structure? How does it work? Et cetera. And so like,

• 21:31Alex Hormozi?

  I still feel like we are most in our infancy in the deal structures that we have. So like, uh, in terms of no money in, there are deals we put money in, there are deals that we don't put money in. It depends on the deal. Um, like, the big one for money is it depends on what the need of the business is. So like, if we're opening up a lot of brick and mortar locations, like, we're about to, I think we might have actually posted there tomorrow, uh, on a 28, uh, location chain. Um, that one requires capital to open more locations. So that one, I'm like, I know where the capital's going. I see what the returns on capital are. Let's get that, right? If it's a national-based service business, so let's say it's a, you know, mortgage sales, like they don't need, there's no capex. Like they just need recruiting, they need good guys, right? And that's how, that's how sales gets increased.

• 22:14Alex Hormozi?

  And so like, that's where, that's where, where does the money, like where's the money going and what is it used for? Like, cause what I don't want to do is just like, someone got to go buys a mansion after I write a check, like that's not the goal here. Like the goal is that we're both together wanting to grow this massive thing.

• 22:29Alex Hormozi?

  And so it just really depends on, on what the, what the nature of the deal is. So that's number one. Um, in terms of, uh, how we structure them, uh, originally I had a grand slam offer type thing. Now it's just much more straightforward of like, we are, you know, we're equity holders in the business. It's interesting because it's actually gotten less cute and less clever as time has gone on. Like it's just much more like, this is our deal. Like we own a big chunk of the business, um, and we're going to grow it. And I mean, the thing is, is that for us, based on my holdco cost, like I put 500,000 a year in labor into the businesses. And like, that's if I wanted to like not mark up labor, like that's hard cost.

• 23:12Alex Hormozi?

  And so if a company, for example, uh, you know, is doing whatever, five million a year in EBITDA and I'm, and I'm buying a, you know, a one-third stake or a 40% stake in the business, like, Like, what am I valuing at that? And how much of that value is going to come in the form of just work that we're going to do? And so that's where that's where the valuation and how much cash in, et cetera, kind of becomes more like per deal basis. But yeah, so the all extra sure is one is soft influence has been something that I've been learning. We may in the future just do more majority deals where the founder stays on. Because like what I want to do is show how much more we grew this.

• 23:53Alex Hormozi?

  I mean, we do have obviously some minority ones that have crashed too, but like, I want to murder this majority deal. And be like, wouldn't you like to have 49% of something 10 times bigger or 100 times bigger?

• 24:06Alex Hormozi?

  And so that's kind of the angle, but yeah, we're learning every day.

• 24:09Sam Parr?

  We talked to our good friend is Andrew Wilkinson. He's done a similar ish thing as you. And then we've got a handful of other friends that have done something and they're like, well, I got really inspired when I read the Swarm Buffett book. And that like taught me a little bit about compounding growth. And other people have cited other books or things that they learned where they're like, oh no, this is the way to go. And that's what I that's why I got into this. What about you? What what transitioned you from going to this like almost PE model versus just one brand model?

• 24:38Alex Hormozi?

  Yeah, definitely. If I were to give us a name, it would be like a merger of a family office and a conglomerate. Because family office in that it's literally just family money. Like, I don't, I don't have any outside investors and then conglomerate in terms of like our business model. Like, I'm not trying to exit anything. I would like to continue to compound investments we have. If a founder absolutely like needs to or wants to or, you know, gets divorced and has to create the asset, then like we will go down that that that route. But long term, we're long term holders. But in terms of the inspiration, it was actually because Jim launch has, there's only 50,000 micro gyms, like in the US at least. And we had already gotten on the phone with 20,000.

• 25:21Alex Hormozi?

  So like, if you're a micro gym owner, know who we are probably. And I realized I went to this, this little meetup of entrepreneurs and it was like six or seven people. And the whole room was doing in aggregate, like 500 million a year in revenue.

• 25:38Alex Hormozi?

  And I was, you know, I think I were doing like mid thirties at the time and I was like, I was really excited to go because I was like, what do these guys have that I don't have? Like, I wanted to, you know, like, what am I missing? Right? And we had been there for like three years. We'd been in mid thirties for three years. And I felt like, I was like, something was wrong. And the big takeaway I had was not that they had better systems or they're better at marketing or better at sales or better at product. They just were going after a bigger market. Like, every single one of them to a man had a market that was 10 to 100 times the size. And so I said that whatever I wanted to do next was going to be, was going to go after a much bigger market. And there are significantly more businesses than there are jobs. And so that was kind of the big thing is like, okay, well, it's something that can compound forever. And that has a huge TAM.

• 26:22Alex Hormozi?

  And so we kind of like walked backwards from there. And then in terms of like the, the doing this model, like we believe that people like build the people and the people build the business. And so like Laila, you know, when we're, it was like 18 months of ideation. I know we're, we're going full circle, but like, how did we start the next day? Well, these are the things that we're thinking through. And I said, Laila, if I were to die tomorrow, what, what business would you start? And she was like, I would start a recruiting firm. And I was like, I don't want to start a recruiting firm. I was like, huh, I want like, is there a way that we could combine what you like and what I like into something cool? And so for us, like the most hands-on valuable thing that you can do for a business is find A players. Because if you find A players, you put them in the business and then they grow the business.

• 27:03Alex Hormozi?

  And then that value stays inside the enterprise of the business, not hold go, like not the goose, but the egg. Right? And so for us, we just recruit crazy talent because we like our competitive mode is that we have more influence than they do. And so we have a whole culture, community of mozzie talent where our head of people like continues to bring, like we have tons of people every single day that are applying for portfolio positions and then we can screen them, vet them. And then because we know the company and because we're long-term incentivized, we don't just want to like put a body in a seat. We want to find the killer that we know that if we, that we, we want, we want to fill the role once. Right? We want to fill it with somebody who matches the culture and matches the skillset of the business at this level. So a lot of times like

• 27:47Alex Hormozi?

  First time entrepreneurs, they're at whatever a million a month and they're like, okay, do I hire a bookkeeper? Do I hire a staff accountant? Do I hire a controller? Do I hire a CFO? Do I hire a director of finance? Like where like, who am I hiring right now? And what does that person look like? And so like, we've done this enough times to be like, okay, at this level, you probably need a controller who has experience going from a million a month to three million a month. And right. And like at that point, they and we'll tell them upfront that we will bring a CFO who has transaction experience in the future. So they're not jostled when that happens. Right? Same thing. They're scaling out the sales team. They're like, okay, well, I've got three good guys. It's like, cool. We need 20. So like, you can't just take your best closer and make him manager because he's never done this before. So we want somebody to build at least one or two sales teams

• 28:31Alex Hormozi?

  specific to let's say it's inbound or might be outbound. It depends on like the sale process of the business. And they've built those types of teams and like, cool, we'll bring that guy in. We have our playbooks. Then we say, hey, on our interview process, we're like, this is how we do things during line with that. And if we do feel like there's alignment and they can, they have the chops because we do skill tests. Then we can say, hey, I think that you'll match. And obviously the founder still has final say because they have to like the person. Otherwise it's not going to work. But we do a lot of that heavy lifting because, you know, we might take a hundred interviews at Holdco to find one, one guy for one specific role for one company. And that's where that labor cost comes in for us. But we'll see put like, the reason we took majority and take majority, bought majority of the of that business was we had built the entire executive team.

• 29:15Alex Hormozi?

  We've built the entire executive team and we're like, okay, cool. And the fatter was like, you know what? I kind of want to do other things with the business. Like, I know it's been good hands. I trust you guys. And so it was like a very friendly deal. And now he just gets checks every month. And like likes his life a lot. And we just continued to run the business, which were cool.

• 29:33Sam Parr?

  There's this really cool video where you're with Grant Cardone and I think you're like in the process or pre uh process for selling Jim launch and you're like, and he said something like,

• 29:44Sam Parr?

  Rich people sell their companies, wealthy people never sell. And it's cool is that I've sold a company before, Sean has sold some companies before. You've sold a company. What's so funny is a lot of first time founders and second, third time. I mean, a lot of people, their whole business is selling, but after they sell, they go through this period and they're like, shit, I shouldn't sell ever again, actually. And you said you sold the business for 47 million. You said you had taken 40 million in distributions. So in my head, I'm like, that's a pretty shit sale then. Do you wish that you would have just held on to it and, and, and never sold that, that company?

• 30:22Alex Hormozi?

  No.

• 30:24Alex Hormozi?

  Because the person I was then wouldn't be able to do what I can do now. Could I do that? Could I say today, would I hold on to it? Yes. But I don't think I could have done it then. And so a lot of the respect, transparently, if I had, I got more credibility from selling Gym Launch at 46 and it was valued at 150 before COVID. So to your point, it was a shit sale.

• 30:47Alex Hormozi?

  But I was done. I was emotionally done with the business. I just didn't want to do it anymore. I still own a third of the business. So like, when they crushed the exit, the next exit at 250 million, I'll still get my $100 million check from that.

• 31:00Alex Hormozi?

  But I was, I was emotional. I moved on. And my big thing is like, all my friends, all my close people were like, dude, you sound depressed as fuck. Like you're not interested. And I was like, dude, I want to do this new thing. And they're like, dude, you light up when you talk about this new thing. And so I actually walked away from the deal during the deal process and then came back. And so like, yeah, it was not like, it's funny because people give me a lot of, I'm glad you brought it up. Cause a lot of people give me praise for that, but they don't have the context. Like what, like, you know, we had done, we had 30 million in EBITDA the two, the 24 months prior to do the deal. So like, you know, selling a forty six point two is not like, like I I told them I needed to be public about the number because I do know that the vast majority of people don't get it.

• 31:45Alex Hormozi?

  And that that is enough to give me credibility for fucking TikTok. But it's not like the transaction itself isn't necessarily one that I'm like proud of. I'm proud of what we built and that the company's grown forty percent since we sold it. It's that they're gonna kill on that deal. But now that I also understand how debt works, which I didn't understand that like, again, this is like knowing risk experiencing, like I understood that they were getting a debt. But when I realized that eighty or ninety percent of the money that they put in, they then just immediately pulled right back out, leveraging the company's books. I was like, well, shit, I could have kept the whole fucking thing and gotten ninety percent of the money, not personally guaranteed, and de-risk myself.

• 32:28Alex Hormozi?

  But with that, it created the same story of something that is sellable from a personal brand perspective, and I think the answer is no. And so I don't regret the sale. I think the sale was required for that step in my journey. I think that now, because we have the credibility, like no one cared that I'd taken forty million in distributions, no one gave a shit, like it didn't matter. Like, the day I sold, my neighbors were like, oh, I saw you on Forbes, like, congratulations. So I was like, I was richer before I did the transaction. I was well there before that point. But like, it allowed us to do acquisition outcomes. I don't think I could have, because my my brain was still so, I was still the CEO, as far as people were concerned, of that company, and I needed to have that space so that I could create acquisition there.

• 33:13Sam Parr?

  Sean, would you have done, what do you think? Would you have done that?

• 33:16Shaan Puri?

  I I think he explained it beautifully. I think he explained it exactly beautifully and honestly, which was that. Two, two things you just said that I resonate deeply with me. One, this is the last thing you just said, which is, to have what you want, sometimes you just need to make space. And so this is like, I learned this through relationships. You're dating somebody, you kind of, they're not exactly what you want. They're not bad, there's nothing wrong, there's nothing terrible about it. So most people just stick with it for years and years and years. And then they're kind of like, well, if there was like a much better option, then yeah, like I would feel more comfortable, just like. Going being single, but I've always been very quick to just, if I know this isn't it, I'll break up. I don't need to have another great option ready or like shown to me to make it real.

• 34:00Shaan Puri?

  I know that if I make space, then great things can appear. And then sometimes you just gotta do that. Like I've taken like when we sold Bebo, it was the same thing. I had, I'd been doing this thing for six or seven years and the business was doing okay at that point. It thought like, you know, but in my heart of hearts, I knew this is never going to be massive. And we had all gone into that business with basically like, yo, let's do something massive. So by other people's standards, it might've been a good business. By our, our own mission, it was going to be a failure. I knew that. And so it was when I was out with a friend and he was like, I don't get what you're doing. And he's like, you just need to shake things up. And, um, you know, I was shook. I couldn't sleep. I was like, he's right. Like I've been doing this for too long. I need to shake things up. And so I went into our, our investor the next day and I just said,

• 34:46Shaan Puri?

  I think it's time we change things up. I said, I need to change things up. I said, you know, if you want to keep going, uh, I will help you hire a CEO and you can take, have somebody else take this over. I'll give you back my shares. I don't need a thing from this. Like I, I will do whatever I can or give me 30 days. I'm going to see if I can sell. Or I'm out. Like those are the, this is either way in 30 days, this is going to change. For me, I've just decided to make space basically to for something. He's like, well, what do you want to do next? And, uh, I was like, I have no idea. He's like, well, no, really. Like, you know, usually people when they're, you know, they, they come to me. It's because they already kind of lined up something else. I was like, no, honestly, I have no idea. I just know that I need to make some space.

• 35:28Shaan Puri?

  And so that part resonates with me. And also the idea of like you, like when I look back now and I'm like, oh, like before I sold our company, if I didn't, if my company wasn't going to be the next big thing, I would just shut it down. Literally just turn it off. Take a zero on it. And then I just started looking around and I learned this word aquahire in Silicon Valley. I was like, oh, people just sell failing companies. And then I learned like, you know, the asset sales, like, oh, you could just sell the code and the assets. Like, wait, who are these buyers? And I didn't even really understand what my options were. And so when you talk about, basically, I could have refinanced, I could have just refinanced based on the business assets, took 90% of the value. I felt that same stupidity later, but like, that's life. Life is basically looking back and being like, I was such an idiot.

• 36:13Shaan Puri?

  And that's how I mark years of time, not by like the calendar days, but by number of times I look back and say, God, I was so dumb. I didn't even understand this. I was sitting on something I didn't even really, I didn't really know what I should, now, knowing what I know now, I know exactly what I should have done. And at that time, I didn't even, I wasn't even aware that I was making a mistake.

• 36:29Sam Parr?

  Well, the difference is like, I think that we all, us three actually have been, we're, we are tacticians. So like, I understand how to grow shit and I understand like, you build this page, you do this thing, you write these words, here's the customer, you talk to them, whatever. I think that the, what a gap you have to bridge is becoming a, from tactics to strategy. And I used to like make fun of all my buddies who are in finance. I'm like, dude, you're just like an Excel monkey. You don't know anything like you're just this stupid fucking head trying to maybe make some money, but you don't know shit. And then I realized, like, when they talk about a debt and stuff, I was like, I'm not going to pay attention to any of that because I think that's stupid. And then I realized how it starts working and I'm like, oh my God, that's the strategy. So it's like, that's the strategy and that, and I was like, oh, I used to think I'm, I've got good vision.

• 37:14Sam Parr?

  I understand how this shit works. And then I realized how money worked a little bit more with debt and borrowing other people's money to do this and like taking money off the table. And all of these like terms that I kind of heard about, but I didn't exactly understand. I realized, shit, if I'm going to be like really good at my job, I gotta be good. I gotta understand the tactics. You really also have to understand the strategy, which Alex, it seems like you're actually now, now you get the strategy of how money and business works, not just the tactics, which the whole hundred million dollar offer book, which I read, I think it's awesome. That's mostly tactical, but the strategic shit is what you're saying of like, oh, you can borrow other people's money and to do this, that, that's some big picture shit.

• 37:53Alex Hormozi?

  Yeah, without a personal guarantee. So because I'll be like, why do I put that on the business? Because I don't want to risk that. It was like, you are not risking it. Like the business is risking it. And if you're willing to do a sale for X, it's like, well, are you willing to do? Like, because the business is going to take the risk on either way. I mean, depending on the acquire, but if you're selling your private equity, like I know you have a lot of a bigger tech audience, but I probably have a bigger like.

• 38:14Alex Hormozi?

  Like, I would say everyday business audience, you know, guys who have massive roofing businesses or, you know, a huge chain of, you know, teeth whitening studios. You know, like just, just those types of businesses are the ones that tend to follow more of my stuff. And like, that's usually going to be a roll up or a private equity acquire for the most part, right? Maybe a strategic, if you like, have another big teeth whitening chain that wants to buy you, but like, that's about it.

• 38:36Alex Hormozi?

  And I, I think I resonate with what you said, Sam. I always thought those guys like, I was like, you don't even understand business. And I, to a degree, I actually don't think they understand business, but they understand the macro level of business. And I think where you get really dangerous is when you know both. Because you can play both gangs, like you can, because what they do, they almost purely inorganic growth. They try and staple shit together that, okay, well, we bought four companies that do, you know, three million in EBITDA. And so now we have 12 million EBITDA and we're going to have some equity arbitrage and we're going to be able to sell this thing.

• 39:05Shaan Puri?

  Financial engineering.

• 39:06Alex Hormozi?

  Yeah, saddle them up with debt and then it's just, then it's just a math equation. Like, it doesn't even matter about growing the businesses, but it's like, what if you do that? And you could also triple all the businesses. And then it's like, that's when you create these like breathtaking home runs. And that's kind of what, I mean, that's what we're trying to do with that acquisition. And I don't, I don't have, I don't have, I don't have a huge need for more money unless it's a, an enormous. Like, there's nothing I can do. I'm, I'm, have you ever, have you ever Felix Dennis's, like, How to Be Rich? I think that's the name of the book.

• 39:37Shaan Puri?

  Yeah, we love it. We talk about that table a lot, like the comfortably poor, you know, comfortably rich, then you get to like rich, rich.

• 39:45Alex Hormozi?

  It's super resonated with me. It's like, I'm the, I'm the comfortably rich. But like, not the super rich, not the, like, so, like, everybody here, we can all consume whatever we want. So we can fly in whatever planes we want, like, you know, you can fly private, you can stay in the nicest hotels, get the nicest Airbnbs, go out to dinner every single night of the week. At the five star restaurant, at the Michelin star, and you can do that for the rest of your life. Like, your, your personal needs as a human being are satisfied, but I can't buy that skyscraper right there. And I can't buy this huge company. And so what happens is like the things that you want to buy change. And so you create a new deficit for the amount of wealth that you want. Again, this is just assuming you like the game. And so like, I like the game, and so I just want to keep playing it.

• 40:28Shaan Puri?

  The funny thing is that what you actually like is just playing the game. And if you just said, well, I'm rich enough, then you'd have to stop playing the game you really love. And so instead you start to come up with like things you want that in actuality, sound a little bit silly. It's like, actually, I don't even think you want that skyscraper or to buy that. I don't even think that's actually what motivates you. It's just that I I'm actually peak loving the game right now. And the game only works if you care about the score. And so, you know, it is impossible to enjoy that. You can't play the game if you've said, I've already scored the maximum number of points. Then the game becomes kind of silly. And so it's funny, like, this is with all of our friends. It's like, well, why are you doing this? Don't you, you kind of got enough money, man. And it's like, yeah, but I don't have enough enjoyment. The enjoyment game is infinite.

• 41:13Shaan Puri?

  And the thing I enjoy the most is playing this game. And, um, you know, I'm, so I'm going to continue playing. But in order to do so, I have to like construct these silly like dreams that are, I'm not even sure I really care as much about as far as just playing the game.

• 41:26Alex Hormozi?

  Dude, that was huge. And, um, as a side note, it's like, if you think there's, there's kind of like, I feel like two ways you can create a deficit, right? So one is like, you can create a financial deficit by saying like, I want this thing. It's costs a billion dollars, and so I need to go make a billion dollars. There's my deficit to where I want to go. The other side is what I was like, when you asked, like, what are you like excited about? Cause I said, like, what are the worst parts? But like, I'll tell you what's, what's good right now is that we have finally separated Mozzy Media, which is basically like my, my Laila personal brand and like the content we put out. I would see the books kind of fall under that, like the courses, the books, all the materials we give out to, um, to Mozzy Media. And so what we originally were saying when we started acquisition.com is that the mission was to make real business knowledge accessible to everyone. Like that was the, that was the mission of the company. And that is still very much the mission of Mozzy Media.

• 42:12Alex Hormozi?

  What we realized is that holdco's team, so like our ex consultants, our, our people who recruit talent, our heads of sales who build out sales teams, our heads of marketing, but up marketing departments and marketing functions, our head of customer success who build out products in the Client experience, et cetera. Like those people didn't really resonate with making business education accessible to everyone. Like that wasn't actually like what their mission was. And so we got really clear on what the mission of acquisition.com is, which is, and this kind of came organically. So it's like really exciting for me. Um, but one of the things I've always envied about Elon is that like every company he gets involved in basically saves the world. But like, what like, he finds a way to tie the mission of what he's doing to saving the world. So even Twitter, he was like,

• 42:54Alex Hormozi?

  free civilization needs free speech. And it's like, boom. I was like, man, how did he take a meme platform with tweets of arrogant dudes, you know, and turn it into a, you know, free speech for civilization? Like, that's where I think a lot of his genius is. Um, and so for us, I was like, what's that saying? And so we have the external gap of like, yeah, I want to hit the billion or whatever. But I think the internal one is that we want to build a company off of praise and not punishment. And so we have this huge thing to how we try to build things is like, you can punish people or you can praise them. And we believe that you get more performance out of praise. Now you look at Goldman Sachs, you look at JP Morgan, you look at McKinsey, you look at Bain, you look at these massive companies, even some of these like huge ones. And it's a lot of people are like, man, it's a toxic, toxic work environment.

• 43:38Alex Hormozi?

  It's really hard, blah, blah, blah. And so those are usually punishment driven cultures. And so we want to, and so what's what's happened is like, by doing that, that has aligned all of our hold co-team in terms of how we want to build these companies and the billion dollar Alex Mark is basically irrelevant because like to really win by their standards. We need to build something that's 10 or 50 or 100 billion. You know what I mean? And that might take the rest of my lifetime. It'll probably happen after I die. But if we can do that, then we can prove one thesis, which is like, people want to work and most environments are set up to punish people. And all you do is you raise the bar of what it takes to not get punished. But what happens is people churn out of work, they burn out, they hate their jobs, they hate their lives.

• 44:22Alex Hormozi?

  And I think that there's a better way. And Leila and I are going to try and dedicate the rest of our lives to try and prove that. And so that is the mission of acquisition.com and what we do with the companies. And we can show that that is not just like, Fluffy stuff. And I think if it were just Leila, it'd be a woman driven thing. People like, oh, it's a girl who's saying you should be nice to people. But I think I, given how I look, how I talk, I can probably deliver that message. And it may take the rest of my life to do it, but like, I haven't felt like fucking amped about anything in a long time. The last time I was this pumped was when the mission of Gym Launch was to take the gym industry from his knees to his feet. Because the average gym owner takes home thirty six thousand dollars a year in personal income. And has like maxed out credit cards and has like eighteen days of cash on hand. And I was like, I want to fix this.

• 45:05Alex Hormozi?

  And what ended up happening is like I, because I wasn't emotionally mature enough. I took enough licks from people really close to me, both clients and employees. That I just like, I just needed to put distance. Like I had seventeen different people who worked for me, try to start their version of my business. You know what I mean? I had clients trying, you know, like start their like, because it was a, it was a business based on consulting, right? It was a consulting business. So like, once you had kind of the models, you could, in theory, try and compete with us. Now, no one has succeeded. But it was enough that I was like, dude, you were bankrupt and like, and like on the brink of divorce and you used all of our stuff and then like, you scaled to three locations and sold them. And now your family's financially set off. And like, now you want to attack me?

• 45:50Alex Hormozi?

  Like it happened enough times.

• 45:51Shaan Puri?

  To your feet and then you kick me? This is how I get repaid for this?

• 45:55Alex Hormozi?

  That's how it felt. That's how it felt. And so I wasn't, I like, I think now I can handle it a lot better. But at the time, I just like, I felt so disenfranchised. I just felt hurt, honestly, because I really poured my soul into trying to fix the gym industry. And so when I felt that way, we created space and then it just became an asset we owned. And that's why I was open to selling it. But like, I haven't felt like that until now. And maybe it took two or three years for us to, for me to refine what that big mission was. But that's something I can get behind. Like, that's something I'm fucking amped for.

• 46:26Shaan Puri?

  It's so funny. You mentioned the Elon big mission thing, like this guy, he did it with Twitter too, which was really funny. And then, while he was doing that deal, news came out. It's like, oh, Elon Musk impregnates like this woman who worked for him. And he's like, and he was like, He's like overpopulation, underpopulation, we were at risk of population collapse. It's actually the biggest risk of all. And he's like, I'm just doing my part. And I was like, this guy, Teflon done like, how did he get away with it? He spun that shit like, like he did a full like 540 on that thing, spitting that to be like, actually, actually, I was also saving the planet with that one too. You're welcome. I was like, this man. You're welcome.

• 47:09Shaan Puri?

  That's the thing they call it where it's like, just like the male, male bullshit, like the abilities for some, some men to just absolutely bullshit their way out of everything. And Elon's got that, like he is the world, he is the world leader in that. I think there's wisdom in it though.

• 47:23Alex Hormozi?

  Like in terms of like, cause even thinking if I wanted to create a stronger narrative, cause like I'm already amped about this narrative, but like, I would just look up stats on worker involvement. And talk about how like, it's the end of, of work until, until, unless something changes. And so it's like, we're saving work.

• 47:38Shaan Puri?

  Yeah, it's all what story you're telling yourself because then you'll tell that story to others. And if that story serves you, then, then great. I mean, I think, I personally, I think this is the Silicon Valley, like, uh, what, like PTSD or whatever, where it's like, anytime I hear a mission statement, I'm like, just shut the fuck up. Like, tell the truth. You want to make money. Great. You want your own life value to increase. And you realize that in order for you to get that value, you had to create more value in the world. And so you identified some people that needed something. And you provided that value in spades, whether that was dentists need better software. Or that's, uh, you know, the world needs a social network, or we want to send disappearing photos back and forth to each other's phones.

• 48:19Shaan Puri?

  Like, um, you know, you hear Evan Spiegel, like you go look at the original landing page, it's of Snapchat. Or the emails that he sent to the sororities and fraternities where he's just like, the landing page is like two chicks in a white bikini. Like, kind of like, do like, taking like a naughty selfie, basically. And then there, there's a giant timer where like the, the, the photo is going to disappear. And same thing when he's emailing the, the frats and sororities, telling me, he's not saying, I'm trying to, you know, reinvent the way that humans communicate. Actually, you know, 75% of our brains is wired for images, not text. And so I wanted to make a messaging app that was image based and that, you know, and then you hear him do the pitch and he's like, um, You know, for too long, images have only been used for memories.

• 49:02Shaan Puri?

  But I wanted to use images for communication, the way we originally did with hieroglyphics and shit. It's like, bro, it's okay that you thought this app was fun and cool and like that it might be a hit. And it took off in likes, you know, these like schools and because people wanted to get around, you know, their teachers or parents being able to see photos on their femoral, like that's okay. And, uh, but they always do this. They always tie it back to some giant mission.

• 49:26Sam Parr?

  Now it's the D word. It's democratize.

• 49:28Shaan Puri?

  Oh, yeah. We're gonna democratize access to private limos. Really Uber like, and then of course, what does it become, right? As the marketing teams get in there and the consultants get in there, they're like, we're, we're, our mission at Uber is to make transportation as readily available as running water. That's big. That became their mission statement. It sounds fucking awesome.

• 49:48Sam Parr?

  But at first it was like.

• 49:49Shaan Puri?

  But it was be real.

• 49:50Sam Parr?

  By showing up in a black limo.

• 49:52Shaan Puri?

  Yeah, you didn't start, and literally the early stories of anybody who knew Travis and Garrett at Uber was like, they'd be like, dude, check this out. Push a button while they're at the, at their like Michelin star dinner and be like, watch this. Car shows up and they're like, yeah, that's right. It's baller, right? I could see where he's at on the map. Like this is amazing. This is my private driver. You know, I summoned him through my app and it's like, there's a, there's always to me like the disconnect between what I think the truth is, which is a little bit skeptical and jaded. And then like the revisionist history story that like, sounds really admirable and noble. And like, I personally have just come down and I've landed on like, I'm okay with the truth. I get the human nature. We're kind of just primal animals and it's okay.

• 50:34Shaan Puri?

  You seek pleasure, you avoid pain. You like status and you, yeah, you don't want to be low status like.

• 50:40Sam Parr?

  But Alex is, Alex is, uh, like mission. So like, you know, Alex, maybe it started as like, the mission of our company is to get your money and to put it in our bank accounts. You know what I mean? Like that, like, like we're changing our bank account one dollar at a time. And we're starting with your dollar by thinking you get our dollar like. It's like, it's uh, what? Yeah. Have you heard of South Park where Cartman has crack baby basketball league? And he's like, no, someone's like, look, we need to, we need to pay our babies, our athletes more money. He goes, look, ma'am, I don't make up the rules. I just think them up and write them down. Like, what do you want me to do?

• 51:19Sam Parr?

  I, cause inevitably, I imagine it started with, I just want to get rich and do dope shit. And then it changed to, uh, you know, this pretty grand thing of changing work through, instead of using praise. When, when did that change?

• 51:33Alex Hormozi?

  I think it's a yes and so Sean, I'm like, I, the bullshitometer, et cetera. Like I, I, I fullheartedly hear you on that. And I think that one is that the truth can change. And what I mean by that is because it's not like, we're not talking about a fact. We're talking about truth of, of why someone does something. And so like, why someone does something can change. So like, when I started Gym Launch, I, I've said this, this is like, the mission of Gym Launch was to not be broke. Like that was the mission of Gym Launch. But what happened is after I saw the lives that got transformed from it, and I was no longer broke. The mission had to change because I had accomplished that mission. So the mission had to get bigger in order to continue to expand that because I had families relied on me, employees, et cetera, customers.

• 52:14Alex Hormozi?

  And so it did truly become to take its knees, uh, knees to, from its knees to its, the gym industry from its knees to its feet. Right? And so like acquisition.com started with the thing that I was passionate about because the only thing I was passionate about was just spreading like good business. Like I love to talk about business. It's like my favorite thing in the whole world. I don't picture about business or write books about this, I make courses about business, I make content about this, like, and then I do business in the meantime. Like I fucking love business. And so that was the only thing that I felt passionate about. And so that's what I made the mission about. But as we've walked the path, realizing that like, the reason the businesses have done really well for us is because of the cultures that we create. And we believe that those cultures, um, create better businesses and honestly also better working environment. Like generate really good bottom line, but also really great experiences for the people who, who work there. And so like, I haven't been amped about it.

• 52:59Alex Hormozi?

  And so like the truth of why I want to go there now, and now I see that a much bigger picture than I did when we started it two or three years ago. Um, I think that, I think your reasons evolved. And so I think that it, it makes sense that I think it's both, honestly. Like Evan Spiegel's personal goals, he was like, he had transferred money from that person's account to his to the degree that he could buy whatever he wanted. And so I think you just think more about it and you're like, why do I want to do this? Cause you have to have a reason, otherwise you just, you, you go into a ball of nothingness. And so.

• 53:30Sam Parr?

  Yeah. Well, look, I mean, in the, I think the best way to actually learn that, um, we were talking about the last episode, we talked about, uh, what's the restaurant, Panda Express guy?

• 53:40Alex Hormozi?

  Yeah.

• 53:40Sam Parr?

  And then, and we were like, you know, he, he, he just sells like orange chicken. Like, that's not exactly inspiring, but like, he, he, he employs like 20,000 people and he like gives these guys, I think he, we were talking about, I have my notes here. He gives them all, like he pays a little bit for them to go to Tony Robbins. He gives them like the Think and Grow Rich books and like all these books. And he's like, yeah, like the whole chicken shit, like that's kind of cool and all, but like, I'm actually like taking an hourly wage worker and we're trying to like elevate them. And so I'm like, oh, I can get behind that. I'm, I'm in on that. And if you look at like a lot of non-tech or non-silicon diey companies employ like 30,000 people and they're like, yeah, you know, we sell tires and that's cool, but I'm really just trying to like, we, we create jobs and that's very fascinating and that's really exciting and that's cool.

• 54:24Sam Parr?

  It's better for the economy or like, you know, some of these like really boring brick and mooring, uh, brick and mortar businesses. I think that's actually where you see a lot of really cool missions or like, um, if you, I've read the, uh, have you read about the Koch brothers?

• 54:36Alex Hormozi?

  Um, they've got. Oh, you mean Coke, like Coke Industries? Yeah.

• 54:40Sam Parr?

  Yeah. Yeah. Coke Industries. So basically it started with the dad. He was like an oil guy. And then they use the byproduct of creating oil to create all types of plastics and whatever. And so now it's arguably, it goes back and forth of the biggest privately owned company in America. And he was like, no, like my whole thing is like freedom for people, you know, and I want to like teach them that they have autonomy and like through working here. He's got a whole book on his management systems and he's like, that more so what I'm inspired about is like, uh, is like giving empowering people. And so anyway, when I read about those like older companies, I actually think that that's a bit more inspiring than like some dork saying that he's changing the world one like computer ship at time. When it's like, uh, I don't know, like that's not exactly inspiring. You know what I mean?

• 55:23Alex Hormozi?

  Maybe it hasn't played out yet. Yeah, yeah, yeah. Like if Bill Gates said he like when he started was like, I want to have a computer and everyone's like, okay. And then he did it. And so I think, I think part of it is also like, what snapshot on the timeline are we looking at? But dude, I a hundred percent agree with you. Like I love like you shot it has because basically it shifts from internal to external. Like in the beginning, you do it for you. Obviously, you do it because you get, you get praised instead of punished. Like you have good, more good shit than bad shit. So you keep doing it. But once the thing that was good, no longer like the diminishing return of the pleasure of more money, isn't there anymore, then you have to find a new, you find a new goal. Like you said, and then, and if it also coincides with other people being motivated by not

• 56:04Alex Hormozi?

  making Alex rich, but by proving a point that we can create companies that reward instead of punish and actually a better returns. Like I'm juiced. And like, we haven't proved it yet. That's fine. We haven't proved it yet. We will.

• 56:16Shaan Puri?

  I want to ask you two, two questions. The first is around people you admire. So we talked about the Panda Express guy on our, just our own last episode, because we were featuring, it was like Crazy Rich Asians. Basically was the theme of the episode. And then it turns out he lives near you or whatever. Like, you know, you're both in Vegas. Who are some people that you admire? So I always find this interesting to hear who kind of like stands out and why for, for, for different folks. So who are some people that you admire, either past or present, you know, people that you've met? Because I know that this kind of like getting famous on YouTube thing opens up a bunch of doors. You meet a bunch of cool people that like you otherwise, you expand your circle of people you, you, you get to know through this stuff. So who are some people that you admire?

• 57:01Alex Hormozi?

  Well, I definitely admire Andrew Patern from Panda Express because they're a married couple who built this whole thing and they didn't, they never took out aside money and they've owned the whole thing privately. They have 2,600 locations. They do 3.7 billion a year with 27% net margins and they take $935 million a year in personal income. And I think that's only possible because they have created a new vision for what they wanted the company to be about, which is about their employees. I am inspired by Warren Buffett. You know what I mean? I mean, I, I am because of the long-term mentality he has and he built Berkshire Hathaway and. In some ways, I feel like he built it. He's like a beautiful life story of like just believing in the power of compounding and patience. And like, that's what I feel like his virtues are that he's demonstrated in rational decision making. I would say that for us, it's like if

• 57:42Alex Hormozi?

  we can build something like that, but just with our own, our own spin, our own zest, which is around raise out punishment and building companies that like we can win by their scoreboard, but we do it our way. So that's the Warren angle. And I mean, I admire Elon a lot, a ton, you know, just like what we were talking about earlier, like his ability to see vision and connect to a larger mission. He's seen, he's been able to masterfully do that in every single company he's been a part of. And his track record is incredibly fucking impressive. And he just continues to like defy the laws of like what seems to be like normal or possible over and over and over again. And so I think, just like how he just like stares into the abyss and says like, let's do it. I think that's something that I really, really admire. Yeah, obviously he has flaws like all of us do, but I think he also has been really good about like

• 58:27Alex Hormozi?

  owning his flaws and being public about that. He's just a human. And I think he may create a new model for how big public CEOs run. And maybe that, you know, maybe we're in the beginning of, of that world. And I think on the totally other side of the coin, I think I admire what like Mr. Beast has done from a personal branding perspective. I've been able to get to know really well. And, and Jim's, Jim thinks really big and has a tremendous work ethic. And I think seeing the merger, like seeing where all these things are, like Elon has been able to build a personal brand. And, you know, in a lot of ways, like if you're a fan of Elon, you want to buy all of the things, but he just happens to have enormous monetization vehicles. And to your point, Sam,

• 59:12Alex Hormozi?

  about like how they use like, yeah, sure, we make tires. Yeah, sure. We sell orange chicken.

• 59:17Alex Hormozi?

  Like in a lot of ways, I see like all the companies that we have in acquisition.com is like, yeah, of course we transact, we build businesses, but like, the reason we do it is this. And I think that's really dope. And so that's, that's like, those are probably the, like, if you were to, if you're to mix, like, what are the things that I'm drawing inspiration from at current? It's a, and if you look at what we're doing, it probably would make sense to see all three of those as the three biggest kind of influencers. You got like Mr. Beast on personal brand side here. You've got Lauren Beffet on the investment side, then Elon from like the big vision. And I feel like those three things are probably where I draw the most inspiration from in terms of like our day to day and what we're trying to do.

• 59:49Sam Parr?

  What's interesting about you is that you're pretty good at, you're very catchy. So like whole knees to feet thing is, is pretty awesome. Um, and then, uh, what was the line for your current company? It was, uh, reward versus punish.

• 1:00:03Alex Hormozi?

  Yep.

• 1:00:04Sam Parr?

  You're pretty.

• 1:00:05Alex Hormozi?

  We would have beat them, we would have beat them at their game and we wouldn't do it our way.

• 1:00:08Sam Parr?

  Well, you said, we want to beat them on, we want to use their scoreboard, but do it our way. So you've got, you're quite lyrical. You've also done a few, there's like actually a handful of things that you've talked about very, uh, like casually that I've caught on to that I really like. So for example, you say, uh, you say dessert. What do you say dessert every day?

• 1:00:28Alex Hormozi?

  Never skip dessert.

• 1:00:29Sam Parr?

  Never skip dessert. And then you also, because your whole like dieting thing is you eat all of your protein earlier on. And then you're like, all right, now I have, uh, I fat and carbs. I, we can go big on those. Uh, and like you've done like a few things outside of business that I find like almost more impressive, or I actually use on my daily life more so than your business stuff, which I actually found is pretty funny. You also have, I don't know if you've seen this, Sean, but if you Google like, there's this like 23 year old Alex, who does a thing where he's like, I'm going to do a bulk over the next like eight weeks. And he has like before, during and after photos and like that stuff I look at significantly more than a lot of your business stuff.

• 1:01:10Sam Parr?

  I find that some of your fitness, uh, and diet stuff like more interesting, applicable in my day to day life than the business stuff. Um, I'm shocked that like.

• 1:01:20Alex Hormozi?

  A living for like, I, like I joked about it in the comments once. I was like, people like admire our like, quote my way of thinking about things in business. And I was like, for a decade I did that with fitness. I just don't talk about it because everyone feels entitled to opinion because they have a body. And I just, and I hate, I hate getting into the, they're like, well, what about salt? I'm like, dude, just fuck off. Like just, you know, I mean, like I, I have so little patience for it. Cause I'm like, look at you. And like, if you were more in shape, and by the way, no one who's been more in shape than me has ever criticized any of the content.

• 1:01:54Alex Hormozi?

  It's just like people who are wealthier than you never say shit about business advice. Like about you know, I'd be like, no one ahead of you ever shit on.

• 1:01:59Sam Parr?

  Well, the cool thing about it is like, I I use the fitness analogy a ton in business because I'm like, well, it's hard, but it's simple in that if you lift this much weight and eat like this for a year, you're not necessarily going to look like Arnold or be lean or whatever, but you're going to be pretty good or better than where you are now. And you just got to do it for like two years and you got to like be fairly strict about it. Um, so like, that's why the carryover uh is quite fun watching you do both of those things.

• 1:02:28Alex Hormozi?

  I appreciate it. Yeah, I mean, simple, not easy. I feel like it's the it's a fucking theme of of so many things like fitness, nutrition, marriage, business, like, simple to do or simple, simple to understand conceptually, very hard to do.

• 1:02:41Shaan Puri?

  What's the uh simple not easy for marriage?

• 1:02:45Alex Hormozi?

  I mean, I think it's it's reward more than you punish. I mean, it actually comes down to that. So like, okay, if I want my wife to scratch my back more, I have to wait until she scratches my back of her own volition and then I have to reward her immediately. And then she will want reward more and so she will do it again.

• 1:03:00Shaan Puri?

  Very Pavlovian of you.

• 1:03:02Alex Hormozi?

  Well, yeah, I mean, I think we're all that. You know what I mean? I think fundamentally, there's three things you can do when anyone does anything around you is that you can punish them for doing it, you can ignore that they did it, or you can praise them for doing it.

• 1:03:13Shaan Puri?

  Have you ever heard um the Tony Robbins like, I forget what he calls it, but it's like the four uh the four styles of being in a relationship, he he says something like this. I don't know. Have you heard this thing? It's like um the first one, uh, let me see if I can remember it off the top of my head. So basically he goes, uh, you know, first one's like a baby. It's like, uh, I need love and I don't have to give anything to you. So it's just like, I cry, you give, and that's it. Like, uh, you better be happy with that arrangement. So that's like one relationship you can have, one style of relationship you can have. And obviously, like, doesn't work out very well. Once you're an adult, um, you can't just cry, expect to be given everything you want and then not have to do anything in return.

• 1:03:50Sam Parr?

  He calls that baby love. So that's baby love.

• 1:03:54Shaan Puri?

  Then he has the next one, which is basically tit for tat. So it's, and this is where almost everybody falls into. So this is probably going to sound familiar to at least to like, to an extent. And it's probably the root of all problems in relationships is tit for tat, which is you measure what you get and then you give based on that. When you're, when you're giving a lot, you give a lot, but then as soon as somebody breaks the cycle and they short you consciously or unconsciously, they, they don't do what you, what you wanted. You also withdraw or pull back some amount of giving. And then they reciprocate, uh, give, they, they also measure and pull back and both sides do that. You end up with a sort of a race to the bottom. And so that's tit for tat. And that's where most people stand and they, it's just a cycle that resets over and over again.

• 1:04:37Shaan Puri?

  The next one is unconditional love, which is basically I give regardless of what you give back. Uh, I give because that's who I am. Uh, I give because that's how I, that's how I want to roll in my relationship and I control what I control. And, uh, obviously that's way better. And like, to me, that's the simple, not easy in of, of being in a relationship is just go, go unconditional mode rather than tit for tat. Um, and then he has like some higher one, which is monk, monk love or something like that. He calls it where it's

• 1:05:01Sam Parr?

  Spiritual love.

• 1:05:02Shaan Puri?

  It's like, I love you even though you hate me. Uh, like a monk can be like, I, I, I pray for and love even my enemies and those trying to hurt me. And he's like, you know, nobody gets there, but like that's aspirationally what you could, what you could get to as well. It is like, you know, the love like a monk who loves even their enemies. Um, and those who try to cause harm. And so those, that, those are the, the four levels of love I remembered.

• 1:05:23Sam Parr?

  Alex, do you ever, so like, I saw this video of you the other day and now everyone's like giving you a hard time. Or they're just teasing you in a good way about like your outfit. Cause you wear the same clothing all the time. So you made a funny video about it and you go, instead of just saying, oh, it's comfortable. You go, dude, I'm just more Darwinian to them. These shorts, you want to go work out? I can go work out. You want to go to a restaurant? Yeah, that's, that's what he said. He goes, you want to go swimming? These are waterproof. You want to go, uh, out to a restaurant? These look just good enough that I can go and do that. I can do anything. I can do anything. I'm Darwinian, you're not. I win, you lose.

• 1:05:57Shaan Puri?

  I bought the shoes you had mentioned because you, you were like, these sandals? These are the perfect sandal for working out, running. You know, like walking through rain, climbing a hill or like being at the office. And in the comments, everyone was like, yeah, what's the sandal? What's said? Where's the affiliate link? We can't find it. And then some dude, like 50 comments down was like, dude, that's what the it's this brand. The the nightshade color of this thing. All right. Respect to this guy for finding it. I'm gonna go buy this thing.

• 1:06:25Sam Parr?

  Do but do you ever like, does your mom and dad are like, hey, quit being such a douche and we're just wear what we bought you because to be nice. Like, at what point do you like, are you like, this makes sense for me? And also, like, it's good for the brand versus like, live a little and like, let's just fuck around. Do you know what I mean?

• 1:06:45Alex Hormozi?

  Yeah, like, good for the brand is is actually not like really a thought when it comes to it. Like, I believe that like, brand comes as a result of rather than like conscious, you know what I mean? Like, like, they were like, so wouldn't you think of never skip dessert? I was like, I was making fun of fitness people because my original audience was fitness people who obsessed about like not eating cookies. And I was like, fuck off. Yeah, I'd be like, eat dessert, you know what I mean? But do it in a way that you sell a six pack the whole time. So that was why I never skipped. It was always like never skip leg day, never skip Monday. I was like, no skip dessert. Like the calves thing is because like I genuinely have started training. I started, I start every training session since since a girl told me that she thought that my calves weren't big. Uh, it's been like 12 years, 14 years that I've I start every session with calves.

• 1:07:29Alex Hormozi?

  Um, and so like my calves have grown a lot. And so everyone's like, oh, Jeanette, like my calves were sticks. And I trained the shit out. So like, is it part of my brand? Yeah, because it's in some ways like it's true.

• 1:07:38Shaan Puri?

  Lindsay. Yeah, thank you for the motivation, Lindsay. 14 years of fuel you gave me.

• 1:07:44Alex Hormozi?

  And and it's the the outfit thing is actually because my it's my content team that wanted to make content about it. Because they're like, dude, you're fucking maniac with this. Like, I feel like people should know this. Because everyone who knows you like in person knows that like, like when they walked in for like almost a year and a half, there was stacks of shoeboxes and I would wear different shoes for a day, an hour a day, a week. And they kind of graduated to like, if they're good enough, or I can walk around the apartment, then I'll walk around for their day. If I can walk around with them for a week and I still like them and most of them never got there. So I have a few finalists that got to that point. But like, I think I just like obsessed about making things better. Same things like if I do end up doing a,

• 1:08:24Alex Hormozi?

  you know, if there is a good enough company that does no strips, like I'm going to iterate the product a bunch of times until I think it's absolutely untouchable. And then I'll say, this is the one I use. And I can say that I say that with confidence because I I did the the work on it. For me, I hate, I just hate having to change. Like, I don't know what it is. It's like, it means that I started my day like, not thinking about what I was going to do. So I was like, okay, well, if I can create a setup or a uniform for myself, that I can be in the most environments. So for me, I'm really never in less than forty degree weather, like ever, because I usually tend to be in warmer spots of the country in general. Uh, and so like, this, this outfit goes forty to a hundred and twenty degrees. And so, and I can go to the gym, I can go to the pool, I can walk for hours, I can walk all day, I can go to a nice restaurant.

• 1:09:10Alex Hormozi?

  I can do all those things. So, because if they need.

• 1:09:12Sam Parr?

  But that's crazy because your wife, who I've seen, she dresses lovely. She like, it's fashionable. Her hair always looks nice. You know what I mean?

• 1:09:20Shaan Puri?

  You just said, it goes forty to a hundred twenty, like a, like a car goes zero to sixty.

• 1:09:26Shaan Puri?

  Like this flannel, this jacket right here, this thing goes forty to one twenty.

• 1:09:30Alex Hormozi?

  Once, once it's, once it's below forty, I get colds. I have to put pants. Um, but like, up until then, I'm, I'm pretty much good within that range. And so like, I can, I can button think like this thing can go full, full sleeves and like, I'm like, that's when I'm in like, mass cold mode. Or if I go to a restaurant, there are fire sleeves. I can have that, right? But otherwise, um, you know, like I'm in beater mode. Like we go to the gym, you know what I mean? We go to the pool, we go to beach, we go wherever. I'm going to be in beater mode. You know what I mean?

• 1:09:58Sam Parr?

  And this is the lightest sport.

• 1:10:00Alex Hormozi?

  I tried to.

• 1:10:00Sam Parr?

  Sport drive.

• 1:10:02Shaan Puri?

  Sport mode.

• 1:10:04Sam Parr?

  Mode like a car.

• 1:10:06Alex Hormozi?

  Yeah. Well, my whole outfit has sports mode. People were like, Proxess, like my whole outfit has sports mode and comfort mode and weather mode and I can, I can do that. And so anyway, I mean, like I, I enjoy. I enjoyed finding each of these things almost as much as I enjoy wearing them. And I, and I, every morning, and this is like, every morning when I put this on, I get like a little, a little boost where I'm like, I know that I've picked every single one of these pieces out. I have no doubt that this is the best thing for me, like for my day. And so like, I know that the brand of White Beaver that I have on right now, I tried 40 or 50 other brands on. And I went, I did this one, sat where I wanted to sit. It wasn't too thick on the shoulder or too thin. It didn't drop into some string on the back. Some people like that. I didn't want that.

• 1:10:51Alex Hormozi?

  Um, like eaters themselves are thinner than tank tops. They're ribbed so that they fit right. I think even like, have you ever seen those Under Armour tank tops or those like shrink wrap ones? Like, they don't look good. Like, I think they look synthetic. And for me, I think they look like kind of synthetic-y. Like, I don't like it. I like cotton better. Um, and so like, it was just a number of iterations. Like, if I talked about this year, I could tell you a zillion things that I looked at. Like, I mean, I just, I, I have like an Excel sheet that like, I thought you would have. I have a few friends like that. I'm not as extreme, but I like buying and testing like a ton of stuff. I think Sean did, Sean wears, uh, ordered like 20 of the same shirts. What products, this is actually interesting. This is, I don't think this is like too inside baseball, but what products and brands, uh, do you obsess with and love? Like, uh, in your daily life?

• 1:11:35Alex Hormozi?

  Well, um, I won't say them because I'm in talks with like Hassan. Correct me. Uh, to try and figure something out. Um, but I, I will, I will caveat that with, I think that in general for people like my life might be different than theirs. And I think just being delivered, like so many people are just like sleepwalking through life that like, they're always sitting there with their pants that just don't fit just right or always don't have this thing. Like a lot of stuff I modify. So like I'm like my gym bag, like there's a video about my gym bag. Like I tried out a bunch of different bags. And I finally found a bag that I liked and then I modified the shit out of it. And like that bag, now every time I go to a gym, people are like, dude, that bag's awesome. I was like, I know because I made it for this function and it's great and I love it. It's really good. You know what I mean?

• 1:12:20Alex Hormozi?

  So I think it's more just like finding the, like whatever your 40 to 120 is, because maybe you live in Michigan and it's always cold. It's like, well, you're going to have a different standard, standard wear.

• 1:12:29Sam Parr?

  What shorts are are they? I thought you used to wear just jorts. I used to make fun of you for wearing.

• 1:12:33Alex Hormozi?

  I used to wear jorts, but jorts.

• 1:12:34Sam Parr?

  Yeah.

• 1:12:35Alex Hormozi?

  So I'll tell you, I used to wear jorts because they were more comfortable. Uh, and I could do more casual settings with them, right? They're like always showing up in like athletic shorts. I mean, just like it just it looked it looked like almost too casual, I think. Um, and a lot of restaurants are like no athletic wear. And so I was like, okay, well, that's annoying. And so then it went through this whole thing where I had to find like the best short. And then while I was doing that, like the ones that I have have back hooks on them so that if I can hang them too dry, I've got an iPhone pocket in there that's built in. So like, because I hate having to sit and then you take it out of your pocket.

• 1:13:08Sam Parr?

  Yeah.

• 1:13:08Alex Hormozi?

  Every time it's like, it's such a pain. Like, well, there should be a pocket for this. Everyone has one, right? And there's like a little place that I could put like an iPad, iPad pencil in my shorts because I use my iPad a lot. Um, like I've got cargo on the other side. And these are stretchy, but not too stretchy, but they're stretching.

• 1:13:25Sam Parr?

  Why do you what freight you hauling in there, buddy? What do you got? What type of what do you need the cargo for?

• 1:13:30Alex Hormozi?

  Gummy bears? No, a lot of times it's mic packs. So a lot of times it's mic packs because we're getting like right now my mic pack's in my cargo pocket. Um, but like I could fit a water bottle in here if I need it. Um, or a or a hotel key, like hotel keys there whenever we're traveling. Uh, or I use my Nicorette because I actually Nicorette. So I'll have Nicorette in my pocket if I go on a podcast. So I just I'd like always have the stuff that I I need there, you know?

• 1:13:54Shaan Puri?

  Well, it's just the best, the best way possible, man. This is these are my favorite kinds of pods when you you find out, you know, it's like, I want to see you're weird. Uh, that's when I know you. Until I see you're weird, I don't actually know you, I feel. This is my, this is my personal, my personal thing and uh, I'm glad we went down this rabbit hole because I got to see you're weird.

• 1:14:15Alex Hormozi?

  It's funny because when we let right now, my shaking, I'm not going to show you the brand, but um,

• 1:14:22Alex Hormozi?

  I've got this backpack here, right? And this backpack, I wore, um,

• 1:14:30Alex Hormozi?

  I can wear it like when we travel, I can wear it everywhere and it has everything that I use to travel and I can travel for four weeks. Because all I have to pack is the repairs of shorts that are identical, that are multi everything. And then I just have an amount of tanks that is whatever the laundry cycle of the trip is. And that's it. And I could put one flannel on top. And I'm good like, and I don't even have to use the expansion part of that backpack, which I have options if I need it. And so like, and it has a cool front thing for all my wires that's flat. So it doesn't take up space. Like, there's just a lot of, like, and I went through a zillion different bags to find that. I went through a zillion different bags to find the gym bag, but like now. Whenever I pick it up, I'm like, this is the best bag for the job.

• 1:15:12Sam Parr?

  You seem like a clutter free guy. Like you have a cleaner who comes to your home very, very often and someone who does laundry. And also do you own, do you not own a lot of stuff?

• 1:15:24Alex Hormozi?

  I don't. Leila does.

• 1:15:26Sam Parr?

  Right.

• 1:15:26Alex Hormozi?

  And so like I, I, that backpack and like tank tops, like I could fit my entire wardrobe on my bedside table. And so, super easy. And like, when I was trying stuff on, you know, one of our assistants will come and they'll return, you know, anything that, that I don't use or whatever. But like, I think, I think the underlying point here, there's like, Leila doesn't do that at all. Like, cause that's like, that's not real. Like, she doesn't like that at all. Like she grew up really poor, always wanted to have nice, nice clothes. And now that she can, she loves wearing nice clothes and she feels good wearing nice clothes and she gets hit up by, by the designers to like go to the runway things because she, she were like. One piece of her wardrobe is the entire cost of my wardrobe. Like one piece, like a top.

• 1:16:09Shaan Puri?

  What was the best way you spend money for you personally? Like, not like a business investment that, you know, you're, you think it's a great ROI or you get a bunch of joy out of it, or it's like, dope for you. That is, let's say, not your content team and not like something that's directly in the business.

• 1:16:29Alex Hormozi?

  Yeah, I mean, I would say JSX is wonderful since it's in the Southwest. So it's a it's like semi-private flying.

• 1:16:36Sam Parr?

  Yeah, it's pretty good.

• 1:16:38Alex Hormozi?

  Oh, it's great. I mean, it gives you so like I the only reason we fly private is because it saves it's the only reason we do it like and you a lot less hassle. But JSX allows you all the benefits of private flying. This is a fucking JSX plug, but it's really good. Um, and a ticket's like 300 bucks when it would normally be like 50. So if you want to fly JSX from Vegas to Salt Lake or Vegas to Scottsdale or Vegas to to LA. It's 300 bucks. It's nothing, right? And you really you walk up to the plane, you get on the plane and then you walk off the plane like that's it. You know what I mean? Like it's it's just like private. There's just a few other people there and private flying, in my opinion, has the most benefit for the shortest travels

• 1:17:21Alex Hormozi?

  and the least benefit for the long travels because like long travels, you want to fly as high as possible, as fast as possible, the bigger, you know, the bigger the plane, the better. And um, and by percentage of the trip, you know, the the going through security and dealing with the hassle, if you have a five and a half hour flight, five and a half hours versus like seven hours of of transit. Does it like the day's screwed like it's kind of like it doesn't materially change a lot, but on a short travel where you're going like sub, I would say sub two hours. Like you can you can double the length of the trip or triple the length of the trip by going or in reverse, cut it in half or by a third by flying private. And so that's where I feel like you get the the highest marginal benefit. It's also the cheapest private flight to the shortest ones because it's by hour.

• 1:18:05Alex Hormozi?

  So that's kind of like when we when we when we go back and forth and usually the only times we'll fly private is if we can't get a direct uh JSX flight.

• 1:18:15Sam Parr?

  We um, we'll we'll wrap up in a second here, but last time you were here, Sean asked a question about your portfolio. Um, and I want to follow up on it. What's your portfolio looking like in terms of like your um, both your private investments as well as like, what are you doing with your money? Are you keeping it in equities, bonds, cash? I think last time you were super heavy cash, if I remember correctly, or maybe it was. Yeah, that's what it was. It was treasuries. You're like, I'm almost entirely treasuries. What's it? What's it looking right now in terms of like a if you could do like a pie chart and percentages?

• 1:18:46Alex Hormozi?

  Probably still half. Treasuries.

• 1:18:50Sam Parr?

  Except now they're a lot better than before.

• 1:18:52Alex Hormozi?

  Yeah, so we're probably half treasuries, probably have a quarter in just like indexes.

• 1:18:58Alex Hormozi?

  And the other quarter is in private companies.

• 1:19:02Sam Parr?

  So pretty simple.

• 1:19:03Alex Hormozi?

  Yeah, probably not by value. Over time, that treasury part is going to continue to decline as we do more and more deals. But yeah, I still think that like, I mean, I don't know what the future looks like. So I like, I tend to like having lots of cash. Like I feel good. I never want to not be able to do a deal that's going to 10x because I don't have cash like that. Like the the cost of missing the 10x is well worth the quote inflation that I'm suffering for the difference between the treasury yield and the inflation cost.

• 1:19:30Sam Parr?

  And yeah, I would imagine you probably don't own a car and you seem like you'd be.

• 1:19:34Alex Hormozi?

  So Leila has a, has a one of those H2 electric Hummer pickup trucks.

• 1:19:40Sam Parr?

  Oh my gosh, that's hilarious. Yeah, the huge one.

• 1:19:42Alex Hormozi?

  Yeah, she was like, I want it. I was like, okay. They're actually. You know, it's not really my range to do that. Mine would be, if it were me, I would have a Dodge Caravan. I was like all blacked out, tinted windows. With the TVs, you know what I mean? In the back, like sliding door as I pull up. That would be more my, my, my.

• 1:19:59Sam Parr?

  And are you renting? You're renting still or do you own that place?

• 1:20:02Alex Hormozi?

  Uh, no, we actually just bought, we just bought a place. Um, we, we were running for a couple of years and then Leila found one that she was like, I want this one. So I was like, all right, get it. So I'm actually, so we, we just moved today, actually, or yesterday was the official move. So that's why my background is now my office closet, but we're actually retrofitting a closet here. To, uh, to be my office.

• 1:20:22Sam Parr?

  Dude, I heard that Derek from More Plates More Dates, I had heard a story. So he basically started the, his whole video thing when he was, you know, no one and he just had a shitty apartment. And I had heard a story that he is back, the, the original video was just him on a white wall that he cut that white wall and put it into each of his now nicer homes or apartments. I had heard he took that wall with him everywhere. So even the shade was the same. Um, I don't know if that's true, but I had heard that and I thought that was pretty funny.

• 1:20:54Alex Hormozi?

  I, I'm a big believer that like.

• 1:20:58Alex Hormozi?

  Derek obviously knows what he's doing. Um, I just always just want like, if I move, you guys like my background will change and you'll know that like something has changed my life. You know what I mean?

• 1:21:06Sam Parr?

  Well, he's way more private than you.

• 1:21:09Alex Hormozi?

  Yeah, he's way more private. He doesn't want anyone to know his last name, etc. Um, definitely, you know, different strokes. I think on a long enough time horizon, everyone will find out your last name. I mean, Lady Gaga tried to go by Gaga, but like you can Wikipedia her name. So like, you know, you can, you can find it if you get, um, famous enough. And I figured that like, we will get famous enough. And so it, it, it hasn't been something that I've tried to protect, you know, a ton.

• 1:21:30Sam Parr?

  Well, thank you for, uh, coming on again. You, um, if you go to our YouTube page, my first million, you're actually like the, I don't know what they call that video, but you're like our main page video.

• 1:21:38Alex Hormozi?

  It was like the pinned video for a while.

• 1:21:40Sam Parr?

  Yeah. And it's like a quote of like, I've come to the conclusion that I just like to work and I don't like when people ask me, why am I working all the time or something like that. But, uh, thanks for doing this again. And, uh, uh, we really appreciate it.

• 1:21:51Alex Hormozi?

  No, I mean, thank you guys for having me on and thank you to the audience for maybe making requests to have me back on. So I, I, I appreciate it and it means a lot to me. So I thank you guys for just being awesome hosts in general.

• 1:22:01Sam Parr?

  Awesome. Well, that's the pod.