We Are Giving Away Our Money Ep 332

Abstract
Summary Notes

Abstract

In a reflective episode, Alex discusses his decision to donate his entire estate to charity after his death, a choice influenced by his belief that unearned wealth can be detrimental to individuals. He and his partner Leila, who do not have children, prefer supporting causes over individuals to avoid depriving anyone of the chance to earn their success. Alex delves into the impermanence of legacy and the insignificance of wealth accumulation, drawing parallels between life and a casino game where ultimately, no one leaves with their chips. He shares his shift from a scarcity-driven business mindset to one of abundance, emphasizing the importance of skill and experience over money. Alex's current focus is on sharing knowledge through acquisition.com and free resources, aiming to make a positive impact while alive, and to be a responsible capital allocator until his wealth is eventually donated to charity.

Summary Notes

Impact of Inheritance

  • Speaker A observed that receiving unearned money can have negative consequences.
  • The decision to donate their entire estate to charity was influenced by the potential harm of unearned wealth.
  • They believe it is not beneficial for descendants to inherit large sums of money without having earned it themselves.

"All the people that I know who were given money, it ended up ruining their lives."

This quote highlights Speaker A's personal observation that inheritance can lead to negative outcomes for the recipients.

"I don't think that giving people a lot of money when they do not earn it is good for them."

Speaker A expresses a belief that unearned wealth can be detrimental to individuals, suggesting a reason for their decision to donate their estate to charity.

Legacy and Impermanence

  • Speaker A questions the desire for a permanent legacy, citing historical examples of forgotten civilizations.
  • They argue that the pursuit of legacy is a human condition that does not reflect reality.
  • The biological dilution of genetic material over generations is discussed as an example of the impermanence of legacy.

"I think there's these ideas that we all strive for of impermanence, or rather permanence, because we want to live on after we die."

Speaker A discusses the common human desire for a lasting legacy, which they believe is ultimately unrealistic.

"The amount of our genetic pool, if you want to look at it from a biological perspective of what, ten or 100 generations from now, is, is basically nothing, right? We're not really there."

This quote emphasizes the biological perspective on legacy, suggesting that one's genetic contribution becomes negligible over many generations.

Gratitude and Perspective on Success

  • Speaker A feels a sense of gratitude for the opportunities they have received.
  • They have experienced a shift in perspective on business success and attribute it to inherent abilities.
  • Speaker A uses visual examples to illustrate the concept of natural inclinations towards certain skills or talents.

"We also feel like we've been given a lot, and not just from being born in America and all that kind of stuff, but from a broader context, I've shifted my perspective on, I think, business success over time."

Speaker A acknowledges the privileges and opportunities that have contributed to their success, leading to a broader understanding of how success is achieved.

"If you were to look at Shaquille O'Neill versus, let's say, a tiny lady, right, there's, you could see a huge amount of genetic diversity just in that visualization."

The quote is used to illustrate the concept of natural predispositions, comparing physical diversity to mental and character traits that predispose individuals to success in specific areas.

"What if we were to look through that same visual lens, what Jeff Bezos would look like mentally or what Bill Gates would look like mentally, or what Warren Buffett would look like mentally."

Speaker A extends the analogy to mental capacities, suggesting that successful business figures like Bezos, Gates, and Buffett may have inherent mental predispositions that contribute to their success in business.

Natural Talent and Hard Work

  • Natural talent plays a significant role in success, similar to how Shaquille O'Neal, despite his innate abilities, still practices to hone his skills.
  • Hard work and sacrifice are important, but some people see disproportionate returns on their time and effort.
  • The speaker acknowledges their own talent and the role of work in enhancing it.

"But I think that we're just naturally good at it. And I think that obviously work and sacrifice and those things hone the skill."

The quote emphasizes the speaker's belief in natural talent being a foundation for success, which is then further developed through work and sacrifice.

Philanthropy and Giving Back

  • The speaker has come to the conclusion that giving back after death is not a significant ask, leading to the decision to start giving back while alive.
  • Monetary donations are one way to give back, with the speaker and their partner donating around a million dollars a year to charities.
  • The speaker believes that sharing skills, experiences, and lessons is more valuable than just giving money.

"And so to give back after we are dead is not really asking that much beyond that."

This quote reflects the speaker's perspective on the importance of giving back and the relatively low impact it has on them after death.

"But I think what is more valuable is the skills and the experiences and the traits and the lessons that we have gathered along our journey that I think is more valuable."

The speaker values the transfer of knowledge and experience over monetary contributions, highlighting the importance of sharing personal growth and learning.

Acquisition.com and Knowledge Transfer

  • Acquisition.com is the speaker's portfolio holding company with significant yearly revenue, and it serves as a platform for sharing knowledge.
  • The speaker is using the channel to transfer valuable lessons to others while they are still alive.
  • The motivation behind creating content like books and courses, and giving them away for free, is to share the speaker's journey and insights.

"And the point behind this channel is to hopefully transfer those lessons while we are alive to other people."

The speaker is intent on using their platform to educate and share lessons with others, emphasizing the value of knowledge transfer.

Shift in Motivation

  • The speaker's early businesses were created out of scarcity and need, not happiness.
  • A quote from Naval Ravikant about desire and unhappiness is mentioned, relating to the speaker's past motivations.
  • Once personal financial goals are met, motivation can diminish, leading to a potential shift in the driving force behind actions.
  • The speaker sees two paths: making money as the ultimate scorecard or changing the driver behind one's actions.

"And what's interesting is when I look at the people who make a lot more money than me now, they don't kind of act that way."

This quote suggests that those who have surpassed certain financial thresholds often have different motivations and behaviors than those still striving to meet their goals.

"And so I think at that point there are two directions that you can kind of go in. One direction is to make money the ultimate scorecard, which I'll give you an analogy of why I think that's silly in a second. And the other is that you can change the driver."

The speaker discusses the crossroads of motivation after achieving financial success, highlighting the choice between continuing to chase wealth or finding a new purpose.

Entrepreneurial Journey as a Casino

  • The speaker likens the entrepreneurial journey to a casino where everyone plays for chips but cannot cash out.
  • The metaphor suggests that despite accumulating wealth or success, individuals can't take it with them when they leave the game, implying the futility of making money the ultimate goal.

"And so imagine every one of us is given a token, right, as we come of age, whatever that age is. [...] And the difference is that you might amass this big amount of chips, right? But the thing is that we don't get to cash out."

The casino analogy is used to illustrate the temporary nature of success and wealth accumulation in the entrepreneurial world, questioning the value of making money the sole objective.

Perspective on Wealth and Legacy

  • Wealth is transient and cannot be taken out of the "casino" of life.
  • The speaker believes that wealth should be put back into the middle of the table for others, such as family, competitors, or humanity, to utilize.
  • Accumulating wealth for its own sake is seen as a game with no lasting personal benefit.
  • The speaker emphasizes that money can only resolve financial issues and has limited utility beyond that.
  • There's a belief that leaving vast wealth to an individual could be detrimental, likening it to giving someone a weapon without the skill to use it.
  • The speaker and their partner, Leila, prefer to direct wealth towards causes rather than individuals to avoid depriving them of the opportunity to earn and achieve on their own.

But either way, we don't get to leave the casino alive and we don't get to leave with our chips.

This quote encapsulates the speaker's view on the impermanence of wealth and the inevitability of death, highlighting the futility of hoarding wealth.

And once you've run out of money problems for money to solve, there's really not a lot of utility for it.

The speaker notes that once basic and luxurious needs are met, additional wealth does not significantly alter one's life or solve non-financial problems.

Because I think it's too much for one person to have.

The speaker expresses concern over the potential negative impact of bequeathing a large sum of money to an individual, suggesting that it could be overwhelming and potentially harmful.

Because I also think that when you give it to individuals, you rob them of the opportunity to earn for themselves and you rob them of the opportunity to achieve in that way.

This quote reveals the speaker's belief that inheriting wealth can deprive individuals of personal growth and the satisfaction of earning their own success.

Reflections on Winning and Personal Achievement

  • The speaker experienced an unexpected sense of dread at the thought of winning a large Powerball jackpot.
  • Winning the lottery was seen as potentially invalidating the speaker's personal goals and aspirations.
  • The speaker acknowledges a past desire for status and recognition through personal achievement.
  • Recognizing genetic and societal advantages, the speaker reflects on the role of fortune in one's opportunities and success.

I realized that during the drawing, I actually had this feeling of dread because I really didn't want to win, because I realized that if I won, then it would kind of make everything that I was wanting to do meaningless, which was really weird for me to think about.

The speaker shares a personal anecdote about contemplating the implications of winning the lottery, realizing it could negate the value and purpose of their ambitions.

I wanted to have people give me status for having earned this right.

Here, the speaker reveals a past desire for recognition based on merit and the effort put into achieving success, rather than through mere luck.

I think that I have decent reasoning powers, and I don't know how much of that is learnable.

The speaker reflects on their cognitive abilities and the role of innate versus learned skills, considering their own advantages in life.

No Ads or Sales Pitch

  • The speaker does not run ads or sell products through the podcast.
  • The only request from the audience is to help spread the word to support entrepreneurs.
  • Encourages listeners to rate, review, and share the podcast to reach and assist more people.

Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything.

The speaker confirms the podcast's ad-free and no-sales approach, setting the stage for the request that follows.

The only ask that I can ever have of you guys is that you help me spread the word so we can help more entrepreneurs make more money, feed their families, make better products, and have better experiences for their employees and customers.

By asking listeners to share the podcast, the speaker aims to extend its positive impact on entrepreneurs and their communities.

Personal Advantages and Charitable Giving

  • The speaker acknowledges personal advantages such as having a doctor as a parent.
  • They highlight their approach to philanthropy, stating that they have given away $2 million in the past two years.
  • The speaker believes they can make a larger impact by growing their wealth and donating in the future, following Warren Buffett's example.
  • There is a discussion about the trade-off between consumption and investment in various aspects of life.

And so, anyways, just to bring this home for you. The reason that we have acquisition.com and the reason that we are pushing far more towards giving away everything that we have is while we are alive.

The quote explains the speaker's intention to give away their knowledge and resources through acquisition.com while they are alive, emphasizing the importance of active philanthropy.

I've given away $2 million in the last two years, and I think about $2 million in 40 years, and how if I allocated it well, it would probably be like $100 million, right?

The speaker reflects on the potential growth of their charitable contributions if invested wisely, suggesting a long-term view on philanthropy.

And the consumption investment trade off happens kind of for everything. It's like investing in your relationship versus consuming your relationship, investing in the business versus consuming the benefits of the money.

This quote introduces the concept of the consumption-investment trade-off, which can be applied to relationships, business, and finances, indicating a broader philosophical approach to life decisions.

Legacy and Wealth Allocation

  • The speaker discusses their current estate's value and the potential for significant growth over the next 40-50 years.
  • They express confidence in their ability to be a better allocator and multiplier of capital, aiming to leave a substantial legacy.
  • The speaker cites Naval Ravikant's quote on retirement, which influenced their perspective on trading time for money.

The big impetus behind this was donating what will just our current estate is probably valued between 60 and 80 million, depending on who's valuing the equity slices we have in the businesses we own.

This quote provides insight into the speaker's current financial standing and their intention to donate their estate, which has a considerable value.

Retirement is when you stop sacrificing today for a hypothetical tomorrow. And I think that what that will gave me was the permission to stop doing that.

The speaker shares Naval Ravikant's definition of retirement, which has allowed them to shift focus from monetary gain to providing value in enjoyable and meaningful ways.

Business Model and Practices

  • The speaker clarifies that they do not engage in one-on-one consulting or sell time.
  • Their business model involves investing in and taking positions in companies, particularly those with revenues in the range of $5 to $10 million.
  • They emphasize that they do not sell courses, masterminds, or coaching services.
  • The speaker warns against scammers impersonating them and soliciting money via WhatsApp.

We don't sell time. So I get probably like 100 dms a day asking if we do one on one consulting. We do not.

The quote states the speaker's policy on consulting, highlighting that they do not sell individual time or engage in one-on-one consulting, despite receiving numerous inquiries.

For context, at the time of this video, the smallest business that we have in the portfolio is 8 million a year.

This quote provides context for the types of businesses the speaker's company invests in, indicating a focus on more substantial, established enterprises.

I will never ask you for a WhatsApp. All right? So please do not respond to any of the comments that have a picture of me and some weird decimals afterwards to make it look like it's me.

The speaker issues a clear warning about scammers impersonating them and advises viewers not to engage with such fraudulent activities, emphasizing their commitment to integrity and transparency.

Conclusion and Engagement

  • The speaker expresses affection for their audience and emphasizes the timing of the video.
  • They encourage viewers to subscribe for more tactical content on business growth and wealth.
  • The quote from Naval Ravikant is reiterated as a guiding principle for the speaker's approach to life and business.

Hope you're amazing. This felt like the right time to make this video in the parking lot before I go to the gym and keep being awesome.

The speaker ends on a positive note, sharing personal sentiments and the spontaneous nature of the video, which aligns with the authenticity and immediacy of their message.

And if you enjoyed this video, click subscribe for a lot more tactical stuff that we do about growing businesses and growing wealth.

This quote is a call to action for viewers to engage with the speaker's content, promising more strategic advice on business and wealth.

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