Never Listen to Your Parents Ep 337

In a candid discussion, Alex Hormozi, a successful entrepreneur with a portfolio generating $85 million a year, challenges the conventional wisdom of heeding parental advice on financial success, especially if their achievements do not align with one's aspirations. Hormozi argues that taking calculated risks is essential for wealth creation, contrasting it with the safety of inaction, which guarantees failure. He underscores the importance of speed in execution and patience in wealth accumulation, citing personal experiences and insights from influential figures like Warren Buffett and Gary Vaynerchuk. Hormozi encourages embracing failure as a stepping stone to success, emphasizing that significant returns come from ownership, not merely effort.

• Alex Ramosi discusses the idea of not listening to parents' advice, regardless of age.
• He argues that if parents are not as wealthy as you aspire to be, their advice may not be relevant to your goals.
• Alex emphasizes the importance of listening to those who have achieved the wealth you desire.
• He points out that parents and others often advise being less risky due to the nature of caution and naysaying.

"Why you never should listen to your parents at any age."

This quote introduces the central theme of the discussion, which is about the potential drawbacks of heeding parental advice when it comes to personal and financial growth.

"Hi, my name is Alex Ramosi. I own a portfolio of companies that is $85 million a year in revenue. I make this channel because a lot of people are broke, and I don't want you to be one of them."

Alex Ramosi establishes his credibility by mentioning his successful business ventures and his motivation for creating content—to help others achieve financial success.

"And so one of the things that happens, and this is at any age, like, I know guys who are making millions and millions of dollars a year and still are insecure about what their parents tell them about x, Y, and z."

Alex highlights that even financially successful individuals can feel insecure due to their parents' opinions, suggesting that parental influence can persist regardless of one's achievements.

"And so the reason I think this is interesting is that most people, unless your parents are exorbitantly wealthy and have achieved everything that you wish to achieve, I don't think you should listen to your parents."

The quote explains that unless parents have reached the level of success one aspires to, their advice may not be the most suitable to follow.

"And so one of my first rules of life is never to listen to someone who's poorer than you or poorer than you want to be."

Alex Ramosi shares one of his life rules, implying that financial success is a benchmark for deciding whose advice to take.

"So that's two different caveats there, because you might be younger, and it's like, okay, well, yeah, my parents more money than me, but are they poorer than you want to be? If so, then only listen to people who are wealthier than you want to be."

This quote clarifies that the rule applies even if one's parents are currently wealthier but do not represent the level of wealth one aims for, suggesting the importance of aligning advice with one's financial ambitions.

"And the thing is that they always will, and other people, too, will always side on the side of being less risky."

Alex asserts that parents and others tend to advise against taking risks, which he implies could hinder one's growth or success.

"Because when you naysay right, it's kind of like if someone's like, oh, I don't like your girlfriend. And the thing is that if you date in general, right, and dating can apply, like the concept of dating can apply to business concepts, it doesn't really matter. But if you date, then fundamentally, every single person that you date, except for the one that you marry, is going to be somebody who you're not going to be with. And if someone says, I don't think this person's good, I don't think this person's good, then they will be right literally 99% of the time, except for the one time that matters."

Alex uses an analogy comparing naysaying to someone critiquing one's dating choices, emphasizing that cautionary advice is often correct due to the nature of risk but ignores the one instance where taking a risk is worthwhile.

• Alex compares the concept of dating to business, implying that taking risks is essential for success.
• He suggests that by always predicting failure, naysayers can be right most of the time, but they miss out on the one time that matters—the successful outcome.

"Kind of interesting."

This brief quote summarizes Alex's reflection on the analogy he presented, indicating that he finds the comparison between dating and business decisions thought-provoking and relevant to the discussion about taking risks and listening to advice.

• The majority of businesses don't succeed, with a 95% failure rate within five years.
• People often self-reinforce their belief in being correct because they witness many failures.
• They are often wrong in the critical moments that matter for success.
• Avoiding risk is a surefire way to avoid success.

"And so the thing is, most businesses fail. 95% of businesses fail within five years, right? And so most times they are correct. And so it's very easy for them to self reinforce that they are so smart and they're always right."

This quote emphasizes the high rate of business failure and how observers might mistakenly believe they are smart for predicting such failures, reinforcing a risk-averse mindset.

"But the reality is that they are wrong in the 1% of times that it matters right in your life."

Alex Ramosi points out that naysayers may be correct about business failures most of the time, but they are often wrong when it comes to the pivotal moments that can lead to success.

• Alex Ramosi was dissatisfied with his earning level.
• He identified investment banking as the only job meeting his financial goals.
• Investment banking requires significant time, effort, and sacrifice, often at the cost of personal life.
• Alex decided against this trade-off for a more balanced lifestyle.
• He concluded that his current path would not lead to his desired outcome.

"That's the guaranteed way of not achieving it. And I remember when I was quitting my job, that was the biggest conclusion that I came to, was that I was not happy at my current earning level..."

Alex shares his realization that not taking risks was a sure way to avoid achieving his goals, which led to his decision to quit his unsatisfactory job.

"So the best investment bankers can make ten, $20 million a year. But I knew what it was required to get there and the amount of effort, time and sacrifice."

He acknowledges the lucrative potential of investment banking but also the immense personal cost it entails.

"And so I figured there was no job that was going to pay me what I wanted to make and afford me the lifestyle that I wanted."

Alex determined that traditional employment would not satisfy both his financial and lifestyle goals.

• Taking small risks is essential for achieving greater goals in the long term.
• Alex Ramosi resonates with Gary Vee's philosophy of "microspeed, macro patience."
• The dichotomy of money loving speed and wealth loving time.
• Building wealth requires the ownership of assets over time.

"And so even though it was micro risky, it was macro the only way I could do it, right."

Alex explains that while quitting his job was a short-term risk, it was the only way to achieve his long-term goals.

"Microspeed, macro patience, right? Money loves speed, wealth loves time."

This is a reference to Gary Vee's concept that quick actions are necessary for immediate gains, but patience is required to build long-term wealth.

• You earn from work, but you gain returns from what you own.
• Ownership of assets is a key to building wealth.

"One of my other favorite sayings that I'll share with you is you get paid for what you do, you get returns on what you own."

Alex shares a maxim that highlights the distinction between earning a wage for work and receiving returns from owned assets, underscoring the importance of ownership for wealth creation.

• People should be cautious when listening to others, as their advice may not be accurate.
• External opinions may not align with one's personal goals and circumstances.

"And so, anyways, back to the reason why you shouldn't listen to other people is that they don't have an accurate und..."

Although the quote is incomplete, Alex begins to explain why other people's advice may not be reliable, suggesting that it may not be based on a full understanding of the individual's unique situation.

• Recognizing the greatest risk often lies in inaction.
• The importance of making a few significant decisions that act as major levers in life.
• The tendency of people to focus on trivial choices rather than pivotal life decisions.

"And the biggest risk is not doing anything at all. The biggest risk is never dating, not that you're with this person, right?"

This quote emphasizes that the act of avoidance or not taking any action can be the most significant risk, rather than the potential risks associated with making a decision or commitment.

"Warren Buffett said, most people only need to make four or five really good decisions in their life."

Warren Buffett's quote highlights the idea that only a handful of decisions have a profound impact on a person's life, suggesting that the quality of a few key decisions can outweigh the quantity of less significant ones.

• Reflecting on personal life decisions that have acted as substantial levers for change.
• Encouraging deeper contemplation on life-altering choices.
• Emphasizing the importance of decisions related to career, living situation, relationships, and business.

"There's really not that many of them that have been the biggest levers, but the few that have been, have been massive and enormous levers in my life."

Alex Ramosi remarks on the rarity but immense impact of significant decisions in his life, suggesting that while not all decisions carry the same weight, the ones that do can be transformative.

• Critiquing the common habit of prioritizing trivial activities over critical thinking regarding important decisions.
• Highlighting the dangers of rushed decisions and advocating for deliberate consideration.
• Introducing the concept of "micro speed, macro patience" in the context of long-term planning.

"People don't put enough thought into that stuff and spend all their time thinking about what next show they're going to watch on Netflix, rather than thinking, like, I'm going to take some time with this decision, because one of my other sayings is mistakes love a rushed decision, right?"

Alex Ramosi criticizes the tendency to prioritize inconsequential decisions, like entertainment choices, over significant life decisions, and warns against the propensity for mistakes when decisions are made hastily.

• Acknowledging that most people will default to opposing unconventional decisions.
• Understanding that opposition stems from a place of perceived safety and the likelihood of being right most of the time.
• Recognizing the exceptional nature of certain decisions that, despite opposition, lead to extraordinary success.

"Most people will oppose you at all times. And that is because it is safer for them to do so because they will be right most of the times."

Alex Ramosi discusses the commonality of opposition to unique or unconventional decisions, explaining that it is a defensive mechanism that ensures correctness in most cases.

"But on the 1% of times that they are wrong, it's that 1% decision saying that you're going to buy Seized Candies for $25 million and ends up generating a billion dollars, right, in revenue."

The quote exemplifies a scenario where an unconventional decision, such as a significant business purchase, can result in a disproportionately high return, illustrating the potential rewards of taking calculated risks that others may oppose.

• An invitation to business owners interested in scaling their businesses.
• Providing a resource for businesses aiming to achieve substantial growth.

"If you are a business owner that has a big old business and wants to get to a much bigger business, going to 5100 million dollars plus, we would love to talk to you."

This invitation targets business owners with the ambition to significantly expand their business, suggesting that the speaker has the expertise and resources to assist in achieving that growth.

• Directing listeners to a specific website for further engagement.
• Offering access to a team that can help with business growth.

"And if you like that, or would like to hear more about it, go to acquisition.com. You can apply anywhere on the page and talk to one of our team and see if we can help you get there."

The call to action provides listeners with a clear next step to take if they are interested in the services being offered, guiding them to a website where they can seek assistance from a professional team.

• Alex Ramosi emphasizes the importance of persistence and learning from failures.
• He shares his personal journey, detailing the transition from a consulting job to opening a gym and eventually finding success after several business attempts.
• Ramosi highlights the concept of macro risk versus micro risk, explaining that while individual failures (micro risks) are common, the overarching risk is never achieving success (macro risk).
• He encourages embracing failures as part of the entrepreneurial process and learning from them to build the necessary skills and character traits for success.

"I had so many people who told me that everything I was doing was stupid. I was giving up a really good consulting job to open a gym, right? I took all my savings and sunk it into a business. And you know what? That business wasn't the one that set me free. It was four or five businesses from there."

This quote illustrates the skepticism and doubt Alex Ramosi faced when he left a stable job to pursue entrepreneurship. It emphasizes the non-linear path to success and the importance of resilience.

"But I learned the skills that one by one I was able to assemble and assemble on a belief standpoint of the world with the character traits to reinforce them, to eventually yield the success that some people think is cool."

Ramosi reflects on the cumulative learning experience from his business ventures, suggesting that the skills and character traits he developed were foundational to his eventual success.

• Alex Ramosi discusses the difference between macro and micro risks, with micro risks being individual failures and macro risk being the overall failure to succeed.
• He stresses the importance of taking calculated risks and understanding that failure is an integral part of the entrepreneurial journey.

"And it's just understanding macro risk versus micro risk. Micro risk, yes, you will fail, but failure is part of the game, right? But the macro risk is that you'll never actually succeed. And that's the real game."

The quote explains the concept of macro risk versus micro risk in entrepreneurship, where micro failures are less significant in the grand scheme of achieving overall success.

• Alex Ramosi likens the entrepreneurial journey to dating, where one must experience many failures to find success.
• He notes that it's common for entrepreneurs to start multiple businesses before finding one that succeeds and that pivoting within a business is often necessary to align with market needs and personal strengths.

"You have to have a lot of small businesses that don't work, right. You don't have to, but it's common. And I don't know any entrepreneur who hasn't had a lot of businesses who eventually yielded success, right? Or even a lot of businesses within their main business. They pivoted a lot of times until they figured out what they were good at and what the market needed."

This quote highlights the typical experiences of entrepreneurs who often start multiple ventures and make numerous changes before finding a successful formula.

• Ramosi concludes by encouraging viewers to focus on building assets that can provide returns over time.
• He underscores the importance of owning assets to avoid working indefinitely and to create lasting value.

"And what we're trying to build here is an asset that can pay us over time. Because if we cannot learn how to build that asset, we will work until the day we die."

The quote emphasizes the goal of entrepreneurship to build assets that generate ongoing returns, providing financial security and independence from continuous labor.

• Alex Ramosi expresses his support for the viewers and encourages them to continue taking risks and being patient.
• He uses the phrase "Microspeed, macro patience" to encapsulate the need for swift action in the short term while maintaining a long-term perspective.
• He also mentions the distinction between getting paid for work done versus earning returns on ownership.
• Ramosi ends with a call to action for subscribing to his content, showing his understanding of audience engagement.

"Keep being awesome, keep taking risks. Microspeed, macro patience. And you get paid for what you do. You get return on what you own."

This quote serves as motivational advice, encouraging viewers to be proactive and patient while also highlighting the difference between active income and passive income through ownership.