Podcast Summary
Milk Road's Portfolio Suffers Significant Losses Amidst Crypto Market Downturn: Despite a $700,000 loss in Milk Road's crypto portfolio, hosts remain focused and are navigating the economic recession while keeping an eye on Web 5's potential impact on the tech industry.
The crypto market has experienced a significant downturn, causing a decrease in the value of the Milk Road's portfolio, which was once worth $1,000,000 and is now estimated to be around $300,000. The hosts had initially started the Milk Road project as an entertaining way to turn $1,000,000 into $10,000,000 through crypto investing. However, the market's current bearish trend indicates a prolonged period of loss rather than a quick recovery. The hosts remain calm despite the financial setback and are focusing on their work while navigating the economic recession. Additionally, Jack Dorsey's recent announcement of Web 5 has added to the confusion and uncertainty in the tech industry.
Staying Updated on Marketing Trends: Adapt to changing marketing landscape by optimizing for social media, boosting engagement, maintaining privacy, and using mental fitness tools to navigate challenges.
The marketing landscape is rapidly changing due to various economic factors, making it crucial for businesses to stay updated on the latest trends in order to effectively acquire customers and run their operations efficiently. The HubSpot 2022 State of Marketing report provides valuable insights based on data and surveys from marketing professionals around the world, offering ways to optimize for social media, boost engagement, and maintain privacy while personalizing customer experiences. Advertising budgets are tightening as companies face financial constraints, leading to decreased revenue for platforms and a potential slowdown in consumer spending. As money earning professionals, it's essential to adapt to these changes and use mental fitness tools to navigate the challenges.
Fear and its impact on our thinking and decision-making: Understanding and acknowledging our fears can help us gain clarity and make more informed decisions
Our fears and anxieties, no matter how irrational they may seem, can significantly impact our thinking and decision-making. The speaker, Sam Parr, shared his personal experience of having a deep-rooted fear of running out of money, despite his financial success. He compared this fear to his fear of flying, acknowledging that it's not logical but still deeply ingrained. The speaker also mentioned how he and his colleague Ben wrote down their scary thoughts to help reframe their thinking. The discussion touched upon the idea that our past experiences and accomplishments can shape our fears and influence our perspective on the future. The speaker drew parallels to the fear of loss and the fear of flying, emphasizing that it's not always about logic but rather about emotions and deep-seated beliefs. The conversation also touched upon the idea of perspective and the importance of recognizing that even if we're not number one, we can still live a sweet life. Overall, the takeaway is that understanding and acknowledging our fears can help us gain clarity and make more informed decisions.
Adapting to economic downturn in tech and business: Acknowledge changed environment, reprogram mindset, focus on adaptations, approach situation with determination and resilience
The economic downturn has brought significant stress and uncertainty for individuals in tech and business ownership. For those in tech, the evaporation of net worth due to stock market crashes and increased interest rates forces reassessment of financial plans and spending habits. Business owners face decreased valuations, tightening customer budgets, and potential layoffs, adding to their stress. However, instead of succumbing to despair, it's essential to acknowledge the changed environment and adapt. By consciously reprogramming our mindset, we can focus on what needs to change in our world and approach the situation with determination and resilience. It's a challenging time, but with a proactive attitude, we can navigate through it.
Navigating Complex Issues and Uncertainty: Stay curious, keep learning, and remain adaptable in a complex world. Calculated risks can lead to success, but uncertainty is a constant challenge.
Understanding complex issues and predicting outcomes in large systems like economies or societies is challenging, even for supposedly smart people. The causes and solutions are not always clear, and there are often multiple possible explanations. People may hold opposing views, making it difficult to reach a consensus. Despite the challenges, it's essential to keep trying to make sense of the world around us and work towards finding solutions. It's also important to remember that even when things seem uncertain, taking calculated risks can lead to success. The speaker finds that they do their best work under pressure and that some people may become billionaires or lose everything depending on their risk tolerance. Ultimately, it's a reminder to stay curious, keep learning, and remain adaptable in the face of uncertainty.
Shifting between optimism and pessimism during market cycles: During economic downturns, pessimism can lead to success, while optimism may be beneficial in bull markets. Stay calm, clear-headed, and committed to goals for long-term growth.
During economic downturns, it can be beneficial to adopt a pessimistic outlook, while in bull markets, optimism may be more advantageous. This is because being able to shift between optimism and pessimism and knowing when to do so is a valuable trait that leads to long-term success. Another key takeaway is the importance of staying calm and clear-headed during uncertain times, as decision making under stress and anxiety is often less effective. Lastly, believing in one's abilities and staying committed to one's goals, even during difficult times, can lead to significant growth and success in the long run.
Long-term perspective on personal finances reduces anxiety during market downturns: Maintaining a long-term perspective on personal finances can help reduce anxiety during market downturns, allowing individuals to take risks and focus on the bigger financial picture, even if their net worth doesn't directly impact their day-to-day happiness, small adjustments in spending habits may be necessary.
Having a long-term perspective on personal finances can help reduce anxiety during market downturns. The speaker believes that they will have enough wealth by middle age to weather any financial storms, so they can afford to take risks and not panic during market fluctuations. However, they also acknowledge that everyone's situation is different, and some people may not have the luxury of waiting for their wealth to accumulate. Additionally, the speaker emphasizes that one's net worth does not directly impact their day-to-day happiness, and small adjustments in spending habits may be necessary without significantly affecting overall well-being. Ultimately, maintaining a clear head and focusing on the bigger financial picture can help individuals stay calm during market volatility.
Finding Ways to Save and Thrive in Challenging Economic Conditions: Use tools like Truebill to identify and cancel unused subscriptions, recognize opportunities for growth in essential businesses, and focus on essentials and joy to maintain a fulfilling lifestyle during tough economic times.
Even in challenging economic conditions, finding ways to cut unnecessary expenses and maintain a sense of humor can bring a sense of invincibility and financial discipline. The use of tools like Truebill, which help identify and cancel unused subscriptions, can be an effective way to save money during tough times. Additionally, recognizing that some businesses and products will thrive in such conditions, like financial management tools, can provide opportunities for growth and adaptation. Ultimately, focusing on what is essential and finding joy in the simple things can lead to a fulfilling lifestyle, regardless of external circumstances.
Learning from Bear Markets: During bear markets, reassess investments and consider averaging down to potentially improve returns.
During bear markets, some investors may thrive, such as short sellers and those who dollar cost average into undervalued companies. Moiz Ali, for instance, had $50 million in cash and was waiting for the right opportunity to invest. The speaker shared a personal anecdote about buying Bitcoin at a high point and then losing a significant amount when the price crashed. Furcon, in response, encouraged the speaker to consider lowering his cost basis instead of dwelling on the loss. This conversation led the speaker to lower his cost basis, resulting in a higher return when Bitcoin's price eventually recovered. The key takeaway is that during market downturns, it's essential to reassess your investments and consider averaging down to potentially improve your returns.
Buying low in bear markets presents opportunities for companies and investors: Bear markets offer chances to buy undervalued assets and establish businesses as industry leaders
Bear markets present opportunities for both starting companies and making investments. During these economic downturns, new businesses can establish themselves as industry leaders, while investors can buy undervalued assets. The opposite of the common buy high, sell low strategy is to buy when assets are temporarily underpriced due to panic and fear. This approach requires conviction and the ability to identify good assets, but it can lead to significant returns. Another interesting topic discussed was Shop Talk, a conference for ecommerce professionals and retail brands. The conference brings together executives from various companies to learn from each other, network, and potentially form business partnerships. The founders of Shop Talk, Jonathan Wiener and his Indian partner, have a background in creating successful companies, and their new venture aims to replicate the success of the Money 2020 conference in the commerce industry.
Creating High-Value, Transactional Events: Ben Wiener and his team's success lies in creating profitable and scalable transactional events in various industries, attracting attendees for deal-making and relationship-building.
Ben Wiener and his business partner successfully sold their ad tech company and payment software business for a combined total of $200 million. Instead of resting on their laurels, they then started conference businesses - Money 2020 for Fintech and Shop Talk for commerce. Within a few years, they scaled these businesses to generate significant revenue and profit, selling them both for over $100 million each to publicly traded companies. They then repeated this strategy in the health sector with hlth.com. Their success lies in creating transactional events that attract the right attendees, who justify the high attendance fees by seeing it as an opportunity to make deals and build relationships. The cartoon-filled about pages suggest they may even be using the same team for design and execution. Their noncompete agreements likely prevent them from entering the Fintech and commerce spaces again, so they've pivoted to health. This strategy of creating high-value, transactional events has proven to be highly profitable and scalable, and it's a playbook that could potentially be replicated by others in various industries.
Establishing Connections and Closing Deals at Industry Events: Industry events are crucial for businesses to make connections, close deals, and generate revenue. Attendees are typically professionals, and the atmosphere is formal. Sheldon Adelson's success story highlights the interconnectedness of conferences and real estate.
Companies attend industry events not just because of competition, but also to close deals and make transactions happen. The speaker shared an analogy of Sheldon Adelson, a billionaire businessman who started in the conference business and later moved into real estate, understanding that conferences and real estate are interconnected due to foot traffic and potential sales. Additionally, the speaker emphasized the importance of B2B events for businesses, where deals and sales are the primary focus, and the attendees are typically professionals dressed in formal attire. The speaker jokingly described the attendees as "sales bros" and encouraged having jokes about wives or complaining about them to fit in. In essence, industry events are significant for businesses to establish connections, close deals, and generate revenue.
Identifying and Leveraging 'Tuckers' in Events: Successful events rely on influential individuals, or 'Tuckers,' to drive growth and sponsorships. European companies are interested in this business model, and creating online communities and selling effectively are essential for success.
The success of certain industries and events relies on having key players, or "Tuckers," who help drive growth and sponsorships. These events often give away a large number of tickets in the first year to build buzz and attract attendees, but eventually rely on sponsorships to generate revenue. The circular economy of buying and selling at these events can lead to a profitable business model, and this template can be replicated in various markets. European companies have shown interest in buying into this business model, and the ability to sell effectively and create online communities are key components of its success.
Impact of Economic Conditions on Personal Finances: Stay informed about economic conditions and their impact on personal finances, including gas prices, inflation, and market volatility, to make informed decisions.
The current economic climate, including a potential recession, inflation, and volatile markets, will impact everyone, regardless of their role or position. The speaker expresses frustration over the rising gas prices, which may seem insignificant to some, but are a significant burden for many. The conversation also touches on the importance of being informed about economic conditions and personal financial decisions, such as choosing the right type of gas for your vehicle. While the speaker acknowledges the potential long-term consequences of choosing the more expensive gas, they also question the significance of the decision and whether it is a strict rule or just a marketing tactic. Overall, the discussion emphasizes the importance of staying informed and aware of economic conditions and their potential impact on personal finances.
Adapting to the rising cost of gas: People are finding ways to reduce their gas usage or find alternative means of transportation due to high gas prices, highlighting human adaptability and the importance of self-reliance.
People are adapting to the rising cost of gas by cutting back on expenses and finding alternative modes of transportation. At $7 a gallon, many individuals are struggling to maintain their savings, leading them to reduce their gas usage or find other means of transportation. This situation brings to mind the resilience of humans and their ability to survive and thrive in various conditions. The speaker shares personal experiences of witnessing people in developing countries living with minimal resources, highlighting the wide range of human adaptability. Amidst these challenges, it's essential for individuals to learn how to govern themselves and be resourceful to navigate the new economic landscape. The speaker believes that not everyone will be able to adapt easily and encourages self-reliance to avoid being overwhelmed by the daily challenges. The speaker is currently writing a book to share these insights and experiences.
Focusing on the masses leads to mediocre outcomes: To thrive, focus on helping motivated individuals, avoid the news, and make intentional choices.
Most people want the same things in life – wealth, good relationships, and overall well-being – but the majority end up with the opposite results. The speaker argues that if you think and act like most people, you'll get the same mediocre outcomes. He also asserts that he is not interested in teaching or catering to the masses, as most people are not receptive to learning or taking action. Instead, he focuses on helping the driven, motivated, and capable individuals who truly want to thrive. The speaker's controversial perspective is to intentionally avoid the news and the common denominator of the population, as he believes he has the freedom to make that choice. Despite potential criticism, he stands by his philosophy, emphasizing that everyone is entitled to their own opinions and ways of living.
Respecting Differing Opinions vs. Silencing Others: Respect others' right to express opinions, even if they differ from ours. Silencing attempts are harmful and unproductive.
While it's natural and expected for people to disagree with each other's opinions, it's important to distinguish between healthy disagreement and attempts to suppress or silence others. The speaker acknowledges the importance of respecting differing viewpoints, but draws a line at attempts to restrict or punish individuals based on their opinions. He uses an extreme example to illustrate the difference between disagreeing and attempting to silence, and encourages listeners to remember that people's appearances and voices can sometimes be misleading. The speaker also shares that some listeners have mistakenly identified him with another person due to their physical and vocal differences, and finds the situation amusing. Overall, the key takeaway is the importance of respecting others' right to express their opinions, even if they differ from our own.
