Alex Hormozi — Dangerously Honest Advice to Create Generational Wealth

Source: YouTube Channel: Alex Hormozi (4260000 subs) Duration: 45:07 Views: 474957 · Likes: 14949 Video: Watch on YouTube

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If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: “Gym Launch” does 3M profit the next 6 months. Then 17M profit next 12 months. 28 yrs old: Started Prestige Labs. 20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to 1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at 46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the 42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract busines

Key Insights

If you’re watching this video, you probably want to create generational wealth. And guess what? It’s not like rich kids are born with higher IQs. We already know that. But they do have advantages. So, what are those advantages? Beliefs and skills. I’m going to do my absolute best to share as many of these in this video as humanly possible. Number one, don’t despise wealth. Understand that ethical wealth creation is possible. If you secretly despise wealth, it will elude you. You can’t hate rich people and then at the same time want to become one. Now, I mean, I guess you could, but it’d be kind of weird. And so some poor parents unintentionally teach their kids that money is scarce and that rich people are greedy or bad. Now the flip side is that wealthy parents teach that money is everywhere and that creating value deserves some sort of reward through exchange. And that’s fun that’s the fundamentals of capitalism is voluntary exchange. Key word is voluntary. Two people choose to interact, choose to make a trade. And the beautiful thing about capitalism is both people say thank you. It’s one of the only things in human nature where people do things and both people say thank you. You go to the cash register, you buy the shoes, the store owner says thank you and you say thank you. Both people have a net positive sum from the exchange and that’s how overall economies grow. If you want to grow your own personal economy, the idea is how can I create as many of these positive sum exchanges as possible? And if you do enough of those positive exchanges, like why would you not want lots of people to thank you? Well, because if a lot of people thank you, then it means that you were doing something good that people will exchange money for. And if you do that a lot of times, you’ll have a lot of money. How did this somewhere get distorted? Now, a lot of that’s media. And you know, I’ll try to make my own version of of media so that I can have a very small voice that says something a little different. But at the end of the day, money is just a tool. It allows you to exchange. It’s literally just an intermediary for exchange. And as a result, it will lubricate the number of exchanges that you make. If you’re somebody who tends to do bad stuff, when you have more tools to do bad stuff, you do more bad stuff. If you are a quote good person, I won’t even try to define that, but let’s just say good person who has a tool, they will be able to do more good stuff. You’re probably not going to be able to create generational wealth if you hate money. But most people can’t even take a shot because they actually believe in one of the biggest lies that’s out there is that passive income equals BS. Now, let me explain. Passive to you means active to someone else. There’s always someone who is active. It’s less of a binary of active versus passive and it’s a continuum. And so it’s like where do you live on this continuum? Let’s say this is all active and this is all passive. It’s very rare that you have things that are purely here. Now you can absolutely buy a dividend ETF and like the only thing that’s not passive about that is making all the decision and doing all the research in order to do that and whatever work you did in order to get the money. But beyond that, yes, the dividend that you get from that would be passive. The thing is is that most people who see rich people assume that they have all of this passive money that’s coming in. All the richest people that I know for sure have passive income, but they’ve got way more active income. Most people are trying to like get rich on passive when they’re like make active income cool again. I I’ll tell you a story. We own an advisory practice as part of acquisition.com, right? Which is where it’s functionally like management consulting. We go, you know, we go in, we look at a company, we help them grow. That’s what we do, right? It’s actually true custom work. It’s not like courses and coaching or anyt

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