EPISODE
391

Mind-Blowing AI Tools, 2023 Goals, & Money Making Arbitrage Schemes

Dec 01, 2022·70:00·Sam & Shaan·Listen·AppleSpotify
0:0035:0070:00
15 moments · 261 paragraphs · synced to the second
SHAAN

then there's all these little places where these arbitrages exist. And I start to think about those and I wonder, is that worth it? Now I'll tell you why I don't think it's worth it. It's tempting to do for me for one reason, which is there's a sick pleasure at making a bunch of money with a very extremely low amount of effort. I feel like I could rule the world. I know I could be what I want to.

SAM

I put my all in it like no days off on the road.

SHAAN

Let's travel, never looking back. What's up? We got a great episode. We're doing a crazy AI tool, but my favorite new AI thing, kind of mind-blowing. Sam, you gotta admit, that was pretty mind-blowing, correct?

SAM

It was awesome. I just signed up for the waiting list and I hope they'll actually let me on, but it's amazing.

SHAAN

So this is, this one's, this one's mind-bending. Uh, we also talked about arbitrages, so kind of like money-making arbitrage schemes that either us or our friends have done. Uh, that was a little fun one. Uh, what else did we do?

SAM

We talked about setting goals. So what, the new year's gonna happen in like 4 weeks, so we think you should start your goals immediately. And we talked about our categories goals. And then we also talked about Twitter. So there's a bunch of drama going on with Twitter with PIPE happening, this company that's potentially going to go bankrupt, and a few other things happening in our lives about getting fights on Twitter and whether we should react or not. It's kind of gossipy, but I love that. So that's the episode. Check it out.

SHAAN

All right. What up? We're back. Enough of this holiday. Enough of this holiday nonsense. How was, uh, how was Thanksgiving?

SAM

It was easy. Ethan came over, you know, you know, our friend Ethan. I don't know if you know Ethan, but he came over and he, killed a turkey and he brought it over. Pretty great.

SHAAN

Did you just bring like a carcass in?

SAM

No, he like— I don't know how they kill it actually. I think they just chop their head off and then he plucked it and brought it over and we ate a turkey. It was awesome. Have you ever done that?

SHAAN

Uh, no. I mean, come on. What are we talking about here? I don't know.

SAM

I know you have Indian roots. I would have thought that like your parents— your parents have probably killed a chicken or two in their lives.

SHAAN

Dude, we didn't even do turkey this year because it sucks. Turkey's dry and like nobody likes turkey. We all had like a moment We looked at each other like, yo, turkey sucks, right? And then we just decided to go with chicken. But nevertheless, we're back. Okay, so I discovered this website that's kind of crazy. It's called character.ai. And I'm not going to lie, I spent like 30 minutes talking to a chatbot yesterday and I had a great time. So let me tell you about this conversation.

SAM

What character was it?

SHAAN

So first I picked Socrates. So here you go. You go to the website and there's a bunch of characters you could chat with. It's like AI version of Elon Musk, AI version of Walter White from Breaking Bad, AI version of Socrates. So I click Socrates.

SAM

Dude, Socrates looks like Samuel L. Jackson with a white beard.

SHAAN

I think it literally is, which is, I don't know, maybe racist. I don't know what that is. I don't know why they did that, but nevertheless. So he goes, so here's, I'm just going to read you the chat because it was kind of mind-blowing for me. He goes, hey, I'm a Greek philosopher from Athens, born in 470 BC. I founded kind of Western philosophy. An opinion and that we will use the Socratic method to test its validity. So I said, okay, I gotta come up with a spicy opinion. So I go, I go, I believe that marriage is only needed if you're gonna have kids. And then he goes, well, I'm not sure I agree because marriage is created to ensure that the property of both families maintains— it remains within the family. It was a political thing first and an I love you thing second. I was like, whoa. And then I go, I go, right, but I'm not talking about— I go, right, but I'm talking about nowadays, not the past. He goes, "Ah, I see what you're asking. So I would say that there's legal benefits including sharing of income and property, inheriting rights for the partner if there isn't a will, and medical rights if you're incapacitated or a dying spouse. So marriage is not only a needed but a legal right for some." Okay, so I'm like, "All right, Samuel L. Jackson Socrates, let's keep going." So I go, "That's true, but I think the downsides outweigh the upsides. I mean, divorce can be messy and maybe one doesn't want to be monogamous." He goes, "I see." You're concerned that the emotional pain that marriage can cause, since it is a life contract by nature, especially if something like infidelity happens. But I would still say it's a personal choice, and many want marriage for its emotional benefits. Love makes us do crazy things, even if we know there's a possibility of heartache later. I go, but why not just date? He goes, you could, but the point of marriage is to take a plunge and commit to bond for life. There's less emotional risk when dating, but some people like to take that risk. Some people believe it's worth it. The commitment itself is what makes it fulfilling. Would you agree that love is a little irrational like that? I'm like, what is he doing? He's asking me questions and we keep going. And then here's the craziest part. I go, I go, sure, but shouldn't we strive to be more rational? Blah, blah, blah. And he goes, you should, absolutely. I'm not saying love itself is irrational. It's a risk people take. They wanna bond in a way that's ride or die. They're devoted to themselves like no one, and they're devoted to one person in a way that means nobody else. And I go, maybe they should just pinky promise instead.

SAM

And then he goes, dude, this is crazy.

SHAAN

Haha, that's possible too, but pinky swear is just words. Marriage means you want the law involved. And I go, how did it know my pinky promise thing was a joke? Like, the fact that it said haha means it understood that I made a joke when I didn't say haha. I didn't say anything that like indicated, that tipped off that this was a joke. That blew my mind right there when I go, maybe they should just pinky promise instead, right? Sarcasm.. And he goes, haha, that's possible too, but blah, blah, blah, blah, blah.

SAM

This is wild. I, I just, I clicked the Elon one and I go, do you care about money? He says, I used to, then I realized money is just a construct that can't buy peace of mind, happiness, relationships, love, and many other things that make life worth living. It is, is pretty funny. And I say, I said, what's your favorite car? He goes, the Tesla Model S Plaid. It goes 0 to 60 in 2 seconds and has the best handling of any car. It's just an amazing car, but maybe I'm biased.

SHAAN

Yeah. See, that's so, that's good. Okay. So I go, I go to the Elon one. I go, Yo, Elon, how's it going over at Twitter? He goes, we're still working on the process of actually transferring ownership. My offer of $44 billion was actually an underestimate of the long-term value of Twitter, so it is unlikely anyone will outbid me. I'm going to clean house and get rid of most of the senior execs and some junior ones. It's going to be fun!

SAM

Exclamation point. Oh my God.

SHAAN

And then I go, I go, but what's your game plan to turn it around though? And he goes, number one, reduce bots. Number 2, increased engagement by creating creator tools that are useful to users. Number 3, create other features that in the future will help humanity or society for be better. But I'm not sure exactly what that is this time. For PayPal, we created online payments. For Tesla, we created electric vehicles. For SpaceX, we created reusable rockets. For Neuralink, we did brain-computer interfaces. For The Boring Company, we're creating tunnels. Boring a lot of tunnels is needed to move the world forward to renewables. And he goes, I'm not sure what I'm missing this time with Twitter, but it'll be something.

SAM

That's great. That's amazing, right? That's an amazing insight. Yes, that is really good.

SHAAN

And so I kept chatting with these, and then they have one that's GigaChad. You know, the guy who's got the giant jaw?

SAM

Isn't that a real guy?

SHAAN

Huh?

SAM

I think that's a real guy, right?

SHAAN

No, no, no. It's like a creative. I mean, the guy's like 25 feet tall or something like that. He's huge. I think it's like an exaggerated version of like, you know, whatever, a normal Chad-looking guy. So it opens up the chat, he goes, hey buddy, I've ever told you how much I admire you? You're healthy, you have a great relationship with your wife, blah blah, making ends meet. He just comes out strong. I go, whoa, I don't know if an alpha male sucks up like that. And he goes, oh my God, he goes, yes, a kind and caring alpha male supports others. A true alpha cares about his friends and loved ones. And he goes on and on, he goes. I go, I don't know, sounds pretty beta to me. And he goes, he goes, a beta male is one who looks down on himself. A beta male is not confident enough to, to compliment others' accomplishments. Uh, beta male will try to harm others for their own good. He doesn't understand that harming others is really harming himself. The beta male never understands the concept of karma. What's going on here? But this is kind of amazing. So, okay, so that was cool, kind of interesting. Now I'm gonna blow your mind. Uh, I don't know what you got planned the rest of the day, but you're gonna have to pick up the pieces of your brain after this. So go to This website, adept.ai, A-D-E-P-T.ai. And if anybody out there from Adept is listening, I need to invest in this company. You need to let me invest in this company. I don't know why. I don't know why. I'll help you. I'll help you with the marketing. I'll help you grow. I'll shout you out. I'll do whatever I can, but I need to invest in this company because my mind is blown and I am a believer. I am signing up for the church of Adept.

SAM

Okay, so you go to Adept and it says useful general intelligence, right?

SHAAN

And then it says introducing Act 1. And I thought, okay, Act One, what does that stand for? Right? We've seen GPT-3, we've seen DALL·E 2. What's Act One? Says click read more. So now you're gonna go to a blog post. What I want you to do is scroll down to the third, oh, scroll down to the second, like a screen video. You see it? It's like Salesforce.

SAM

Uh, I, it's Redfin. Oh yeah. Okay.

SHAAN

Salesforce. So just like watch this for a second. So let me explain what's happening. So Adept is this little floating dialogue, like a Google search bar. You can just type in any, you just tell it to do anything. It's like a, a, a perfect worker. It, they basically trained AI to use the internet. So you just type in, hey, can you add Max from Adept to Salesforce as a lead and, uh, set a flag that says he's interested in buying like 20 ink cartridges. And then it, it goes to salesforce.com, it logs in, it goes to your dashboard, it clicks add contact, it types in his first name, types in his last name, taps in the, his, his email. Adds the note, saves it as a thing in a pipeline. It basically does 20 clicks for you of like doing a menial internet task. So now go down to the next one. It's Excel and it says, hey, it starts with some data, then it goes, it just types in, it goes, hey, make a profit column and then make a profit margin column. It just types that in plain English. And then it starts to create these columns and formulas in Excel knowing exactly what it is. Then he types in, hey, highlight in yellow anything where the profit's above, are below 20% and then highlights it. He goes, actually, can you just remove those rows? And it just filters them out. It's doing all of the Excel work just off of somebody prompting this using plain English. It's just amazing.

SAM

Yeah, this is amazing. I just signed up. Hey, if you're listening, Adept, give me access. I'm on your waitlist. This is, this is wild. Who founded this company?

SHAAN

I don't know, a bunch of people with like, you know, 25,000 IQ. I have no idea. It's like one guy who's like ex-Google Brain, and then, you know, there's like, there's like 8 people. Maybe I should just go work there. This is going to be amazing.

SAM

Wow. Yeah. This is amazing. Oh, so dude, the guy who launched it was a VP of engineering at OpenAI. Yeah. This is awesome. How did you find this?

SHAAN

I was, in a very nerdy way, it's a little embarrassing to even say this. This was on slide 57 of a random slide deck about the state of AI. And I got to tell you, I didn't understand the first 54 slides, but I kept clicking for some reason. I was like, yeah, next, next. What deck? It's called State of AI or something like that. And it's this long presentation. And in it I was like reading and I was just like, I don't understand any of these words. And I was like, just stay here. Just stay in the oceans. Maybe a little shell will come your way. And sure enough, it just said something like, blah, blah, blah, blah, blah, teaching AI to use an internet browser like Adept AI. And I go, What? You could teach AI to use the internet browser? That sounds pretty powerful because that's like, you know, do tasks on the internet. It's pretty cool. And then I went to the website and that's when I like read their blog and I saw this because it's not released yet.

SAM

Dude, this is a sick presentation. I just pulled it up. This is awesome.

SHAAN

This is awesome until you try to like comprehend the first— like, go read the first 10 slides. Do you understand any of it?

SAM

No, I don't. But I think it's— I think it's— that's why I could figure it out. But they cite all like the—

SHAAN

all—

SAM

they cite all their sources, so like I could figure it out. But it seems like really, really, really good comprehensive. It's basically all about where you can launch businesses in AI. And it seems like they're, just by skimming it, they're doing a really good job.

SHAAN

Well, that's not what I wanted it to be. I wanted it to be, what are all the business ideas that you could do in AI? It actually wasn't that. It was more like, what are the general trends and where's the puck going in AI? Which is also useful, right? But you got to still do the work at the end to figure out.

SAM

Dude, why don't you just launch that? Launch a media company that people pay 30 grand a year for and you, and you just talk about where, where the, like, you, you just make exactly what you said you wanted to do. Just make that.

SHAAN

Yeah, I feel like I could, but, um, you know, this is kind of stupid. Like, basically after doing the Milk Road, I'm like, oh, I know how I would do this in like 3 other spaces that would be valid. Like, I think I can make $30 to $50 million doing this, but there's a part of me that like, I like that. Remember that self-respect like bar. There's a part of me that doesn't respect that because I'm like, oh, I'm gonna play the same level of the game again. Like, you know, I already, I already did this level. I played this, I played this game. Why don't I play a different game? And I know that that's kind of stupid.

SAM

Like, what categories were you interested in?

SHAAN

Well, I'm gonna keep those cards close to my vest unless—

SAM

oh, you little— decide, dude, if you just walk the walk.

SHAAN

But actually what I want to do is I want to find an operator to do one of them. So if, if you wanna build one of these like kind of media businesses, and I have a, I have a playbook and a niche that I know would work. And let's see how much more I wanna say. Uh, that's how much I wanna say, right? Actually, I'll say, I'll say one more word. If you are, this will kind of give one of 'em away, but that's okay. If you are somewhere between the world of being a doctor and investing, I'd like to talk to you. And you should email me at sean@seanpourrie.com. You should say, hey, that's me. And I wanna, you know, if you really want to do this. And, uh, tell me a little bit about yourself because I see it won't be— the Milk Road is actually not the right playbook for that, but I have a dip, like, I kind of have a different playbook that I in mind that I know would work. I just don't want to do it myself because I kind of have done that game, but I also don't want to waste this, like, thing that I, I know how to make it work. I know exactly how it would work. So I'm in that spot. Maybe an operator would be the right way to do it. Find an operator, give them a piece of the action and guide them, but they do the work. Maybe that would be the right way.

SAM

This deck is awesome. Adapt is awesome. I want to use it. Is it— is it live?

SHAAN

It's not like released yet as far as I can see.

SAM

Dude. And they're hiring a bunch. Interesting company. This would be a good— this isn't like a Sarah's List company because they're too new and they could definitely go bankrupt. But I, I don't know, man. I think that if you're looking to start your career and you want to have a high-risk, high-reward type of, type of job, this might be a good candidate.

SHAAN

I agree 100%. If I'm an engineer, like, this is the type of company I would want to be working at right now.

SAM

Like, and depending how much funding they— if they raised $50 million in funding, like, that's pretty interesting.

SHAAN

They raised $56 million, I think.

SAM

I would say this is a great, a great company to, to, to get a job at.

SHAAN

And like, if you look at their like founding team, it's basically 1, 2, 3, 4, 5, 6, 7, there's 8 people on the website. So, you know, you join early enough and you, you know, you, you're not like employee number, number 89 or something like that. Employee aid is, is a pretty, pretty sweet place for a lot of people who, if you're going to have a job, this is the type of job that's pretty fun, right?

SAM

Yeah, I think this is awesome. This is sick. Adept. That's a stupid name though. Adept, I think.

SHAAN

Let me invest. Let me invest. Sam, you're in the index funds. You can't invest in this.

SAM

I don't want to invest. I just want to use it.

SHAAN

You put all your money in the 7.5%. I'm going to go ahead and invest in the future of all artificial intelligence.

SAM

Who do they raise money from?

SHAAN

It's like Greylock and I think Scott Belsky's in this actually. I need to hit up Scott Belsky and be like, "Yo, make an intro please." because I think he's an investor in this.

SAM

Huh. All right. Well, this is awesome, dude. It says they're based out of Nicaragua. Well, that's a red flag. That's weird, right?

SHAAN

Yeah. What do they do with that? Like, you know, I mean, I can't even think of a single plausible reason for that.

SAM

They look like an Asian guy who worked at Google. I don't think he's from Nicaragua.

SHAAN

Yeah. Fred, what are you doing? What are you doing down there?

SAM

This is like—

SHAAN

he's like, can you use the Nile River to like cool our supercomputers or whatever?

SAM

Huh. Yeah, that's a little interesting to me.

SHAAN

Like how I threw in that Nile reference even though it's not Nicaragua, just so that the comments will all correct it and we go up in the algorithm. They know— they don't know about the intentional mistakes that we do.

SAM

Uh, yeah, I don't— I, I'm not I'm not smart enough on South America geography to even correct you.

SHAAN

Well, I had to learn from all of our TikToks that go viral. It's because there's like one thing we say in them that's like irritates people that it's incorrect and everybody has to comment. And so the TikTok algorithm's like, must be a great video. And it's like millions of views. So like on that, I think the same thing happens on YouTube too.

SAM

Well, I think it happened on like the one where you talk about like Mellow Ball or whatever the fuck his name is, Lamar Ball or something. And I didn't know like I knew their names and I said the wrong person's name and everyone was like, you're an idiot. This guy doesn't do anything. Yeah. And it got like 10 million views, I think.

SHAAN

Like, you could be like, you could start a newsletter and make millions of dollars in under 3 years. They're like, yeah, right. No, no, no fucking way, man. It's like, dude, you literally did it. It's not a hypothetical. It's like literally your story. And they're like, dude, this bro trying to tell us how to make money. It's like, all right, you live in the TikTok comments. Sam's actually done that thing.

SAM

People were making fun of me because I said, if I could do it all— I was like, if you're 21, just go and start a blog. You know, it's a good first business to start. And someone commented, who the hell reads blogs? What is this, 2015? And someone said that. They're like, what blogs do you read? I'm like, like CNN, Fox News, like, like any website that has information that you read on a consistent basis, right?

SHAAN

You have some stuff on this list that I want to know about. Just a call to action. It says, need to start working on New Year's plans now in all caps. Get these implemented.

SAM

So dude, you're like me.

SHAAN

So here's my thing. I think that starting a New Year's thing on January 1st is kind of the most small boy thing you can possibly do. It's like, could you be more basic? Just if you have an idea, start it now. Why are you waiting?

SAM

Yeah. Like at, at the worst, you have to start at December 15th. And I'm a big fan of goals. I write goals. I write my goals out. I tell my wife what they are. And so like we're on the same page. I tell other people what they are. You got to have goals and I break them out into 6 categories.

SHAAN

By the way, how does the wife react? You just say my goal is 8% body fat. She's like, all right, okay, dude, the fitness stuff, women don't give a shit.

SAM

We've talked about this. Ripped. The only people who care about being ripped are other dudes. So like I've given up trying to—

SHAAN

are other ripped guys.

SAM

Yeah, I've given up trying to like make my wife like me physically, like any more than she already does. That will never happen. So, you know, the fitness thing is for me and impressing other men. So that's all there is to that. But I have this. So the first 3 categories of the 3 Fs: family, financial, fitness, and then mind, adventure, and other. So let me give you some examples. So financial, that's easy. So how much money you want to make, you want to make money from different projects, things like that. Family, for us, it's like, you know, like for me, like I like going to couples therapy. Do you, do you do couples therapy?

SHAAN

No.

SAM

Never, dude. You should. It's awesome. It's just like, it's just like fitness. It doesn't matter if you're ripped or not ripped, like you exercise, you got to do it.

SHAAN

You don't— my wife is old school. She thinks like, you know, she's like, yeah, it's good. Therapy's great. Other people should do it. But if I suggest it, it's like, oh, you're saying we're broken?

SAM

Yeah. She's like, therapy's great for freaks, you know? Like it's really wonderful.

SHAAN

Supportive of other people doing it. But if you dare mention that, I will take it as a personal assault. Yeah.

SAM

You should do it. It's awesome. It's a fun way. It's also, it's just good. I think people should do it. Fitness is easy. That one's easy. But then mind. So for mind, it's like how if you want to read books throughout the year. For me, I wanted to have more fun this year because I was pretty uptight leading up to this year. And then the fifth category is the really fun one, which most people don't have, which is adventures. So for me, I wanted to do like a car class, like a driving car class. I wanted to go hunting. I technically, I didn't do that, but I did go fishing. I wanted to camp a couple of times.

SHAAN

I'm just going fishing, hunting.

SAM

Is that the same thing?

SHAAN

I went to Whole Foods, I went hunting.

SAM

Is that not the same thing? I wanted to look something in the eye, kill it, and then put it in my mouth. That was the goal. I wanted to kill something and then consume it. And I was unable to do it with an animal that wasn't, you know, that was on land. So anyway, these are my 6 categories. Are you gonna do that this year? Are you gonna create some categories? Or create some goals?

SHAAN

I do it a little differently, but I have a very similar It's just, it's the same idea. It's just a little slightly different frame, but I do basically, I score myself health, wealth, fun, or like play is kind of that one. And then love. And then the last one is, it's like self-respect. Like how do I view myself? And so those are my 5 categories. And I basically say on a scale of 1 to 5, where, how would I score myself currently? The present moment. And then What would it take to be, to feel like it's a 5? What would make me feel like it's a 5? And I start to sort of dream that up. Okay. Yeah. If this, this, and this. And then what I do is every 3 months I just go look at that scoreboard and I say, have I made progress on those? Like, have any meters moved up or down? And that's like my little gauge. It's like my, my check engine lights. I gotta see if there's an issue, I gotta address it. If there's, if I'm making positive progress, all right, fantastic.

SAM

What was your self-respect number this year?

SHAAN

Self-respect was pretty high, it was a 4, and 4 out of 5.

SAM

So pretty good.

SHAAN

Yeah, that one used to be lower, so like I added it because I was like, you know, all these things are pretty good, something feels off, what's missing? And I go, I think I would respect me more if I was doing some things a little differently. And so I added that. I go, you know, I don't really care You know, that's the one I care the most about, basically, you know, my, my self-esteem, my, my, my judgment on myself. And it's the truest gauge because like, even if all the surface level stuff looks fine, it's like only I have full evidence of the little shithead that I am. And only I see all those moments where I take the shortcuts or where I lack the discipline or where I choose the small boy path instead of doing something more adventurous. So only I know. And so that's why I decided, all right, I gotta, I gotta add that to the scoreboard.

SAM

This is the most bro-y thing ever, but on Joe Rogan's podcast, Guy Ritchie, you know Guy Ritchie, he directed like Snatch and all these other movies.

SHAAN

Yeah.

SAM

He goes, I live life as if I'm the director of my own movie. And he said that line and it was awesome. That's a really cool line. And so that's why I created an adventure category because I'm like, dude, I'm such a bitch. I just sit behind my computer all day. Like I don't do anything like sick. Like I'm watching this James Bond movie and he's like blowing shit up in an Aston Martin. I'm like, this is way so much cooler than having like a Shopify store. Like, I need to, I need to do more adventurous stuff. And so I think it's good that we both have adventure or fun. You got to call yours the, the 4 Fs though. Family, financial fitness, and fun. That'd be way easier to remember. And then self-respect.

SHAAN

Yeah. The F4 system sounds pretty good.

SAM

Yeah. Yeah. It's 4, 4 simple steps to financial freedom. Trademark that.

SHAAN

The 4 Fs to freedom. Freedom is only 4 Fs away. We got our slogans. Book the course. Let's go.

SAM

That's what it needs to be.

SHAAN

I was actually thinking about doing this. I actually was, I don't know if people would be interested in doing this. It's not really like, it's not really like worth my time, but I kind of want to do it anyways, which is like, I want to do a, it's not a course. What do you call it when it's like, like Michael Jordan used to do this where in the mornings he would go work out at 5:00 AM or 6:00 AM and he called it the Breakfast Club. And he was basically just like, Like he started doing it alone and then some guy saw him like walking through the hotel that, you know, some guy came back from partying and saw Michael Jordan going to the gym. He's like, what are you doing, Mike? He's like, oh yeah, I work out every day at 5 AM. You should come, be here tomorrow. And then the guy came and then slowly but surely the whole team ended up going to the Breakfast Club and they had a great year. They won the championship that year. And I kind of want to do that for kickstarting the new year, which is like, first of all, we're not going to do it January 1st, but I just want a batch of people who all want to like level up. And they're, you know, they're 4 Fs basically. Dude, I've thought about this so much and just be like, yo, it's a group and we're just gonna be here. We're gonna be together for like 10 days or 21 days or something like that. It's like, we're just gonna get hella momentum off feeding off of each other's like progress and energy. And it's just literally gonna be a, like a, you know, you put in, I don't know, like $100 and you join this group chat. And then I will, every morning I will drop kind of like something that's high energy to spark the group. And then you just check in with your shit and it's just a momentum club. It's just for people who wanna build massive amount of momentum. So I kind of wanna do this. I, I actually really just want to be a member of one, but I don't think this exists. So therefore I think I might create it and I might kick it off like, you know, whatever, December 15th or December like 20th or something.

SAM

Have you heard of 75 Hard?

SHAAN

Of course. Yeah, that's, yeah, that's the inspiration for this.

SAM

This guy's crazy. So his name's, I don't know his last name, Andy F. Andy Frisella. So he basically has like a supplement company. And if you look at the podcast charts this week, you and I were like number 12 or 13. This guy's always like number 2 or number 1. So he's got like a pretty big following and he's, he's— I think it's a daily podcast. So he does a pretty good job there. But he started this thing called 75 Hard. And here's the rules. If you skip a day, you have to start over. If you miss a task, you have to start over at day 1. You have to pick a diet and follow it. And no alcohol and no cheat meals. You have to drink a water, a gallon of water a day, complete 2 daily workouts that are 45 minutes minutes each, one of which has to be outside, read 10 pages a day of a nonfiction book, and take a progress photo every day. And you have to do that for 75 days. And he's killed it. If you look at the app downloads, it's like $10 or $5 or something for the app. There's thousands and thousands of reviews. He's totally turned this into a movement. He's done a really good job at that.

SHAAN

Yeah, yeah, that's— I think that's like the A+ version of what I'm talking about. Mine is way simpler because I'm not trying to work out twice a day and you know, carry a gallon of water around or whatever. It's more like, what is one simple thing I can do just to create momentum? 'Cause I think most people assume the answer is so hard that they literally just do nothing, right? It's like, if you're not working out, you don't need a workout plan. You need to walk to the gym and like be in the gym for 5 minutes, 10 minutes. Like do a pushup, like, you know, like just a sense of forward progress. And more than anything, usually it's like, especially with the New Year's stuff, it's like, figure out what even, what even do you really want? Do, do you have enough clarity on what you really want where it's like on the tip of your tongue and therefore your brain is recognizing opportunities to achieve that thing all day, right? If it's not on the tip of your tongue, then your brain's not gonna be seeing it and, you know, seeing those moments or those opportunities for it to happen. I'll give you an example of one of these, like my trainer. So I move my workouts to the morning, so now it's great. I start my, start my day, wake up, literally go down to the garage. What time? 8:00 AM. So 8:00 AM is the start of the workout.. So I do that right before I do this. And he always gives me these little stories, but I turn them into games. So he'll be like, dude, on the way over here, he's like, I stopped at Whole Foods or whatever. And this like old lady like clipped my Achilles with her cart. And my initial reaction was to be like, what the, you know, like he was, it's like if you, if you get, you know, flat, you know, flat tired in the back with this cart, he's like, dude, you know, watch what you're doing. He looked, he's like, look back. It's a grandma. I had to laugh at myself for how mad I was gonna get for nothing. And he is like, so I decided, I was like, all right, before I leave Whole Foods, I gotta reverse the karma. I'm gonna light someone up today. He's like, I'm gonna, I'm gonna make somebody's day right now. Like somebody is gonna have a laugh because of me, because of how, you know, I was in this mood. I'm gonna switch it. And so then he tells me the story of how he did it and I'm like, that's a great little daily cha— like one daily challenge for me today. I'm gonna light somebody up today and I'm gonna make their day. I'm gonna make them laugh. I'm gonna do something unexpected. That just makes somebody really, really happy. And then I took that as my challenge and like by, by noon I had done it and I was like, that's just a little thing that wasn't gonna happen, but it was a lot of forward momentum towards something that I personally care about, which is being that type of dude, being that type of dude who's in that type of mood, who put— it's contagious with other people.

SAM

When I hear light someone up, I don't think make their day good. I think the opposite.

SHAAN

Well, yeah, there is like a— we're not playing Halo here or whatever. I'm gonna light them up, like, you know, brighten their day.

SAM

I feel that. Well, I think that's good. Let me know what you're— what you're— how you're gonna organize this.

SHAAN

Well, now that I said it, I feel like I have to do it. This was an idea that I was not gonna do until I just got roped into doing it here on the pod. But okay, we'll do it. Okay. Do you have anything else on this New Year thing that you wanna talk about?

SAM

No, I just think that we have to make goals and we have to make them and you have to decide and start acting on them before January 1st. Doing goals on January 1st is weak. That's nonsense. That's nonsense. We can't be doing that.

SHAAN

You know, we did a Spartan race, I think, together, but that one and Tough Mudder, they do this thing where before you get to the start line, like, it's like, oh, I'm here to do the Tough Mudder race. You go, you're trying to get to the starting point, and there's like a wall you got to climb just to get to the starting line. And, you know, it's sort of like laughable. It's like stereotypical thing, but it's like, yeah, but it's fun, but it's fun. And it's, it's a, it's a line in the sand. It's like either you believe that this sort of thing is awesome Or you should just leave now, honestly, if you're like, and I can bitch about the wall before the starting line. Well, guess what happens after the starting line? A bunch of walls and a bunch of obstacles and adversity that's coming your way. And if you aren't willing to do it before, you know, to go before go, like, you know, you're not, this is not for you. And I just love that. Like, I remember filing that away in the, in the mental swipe file of like, that's how you build a brand. Is you like, you think about what would be the way that we would do a starting line? Do before you even get to the start line, there's an obstacle. And I, I remember thinking that, that, so that's kind of like the New Year's thing to me. There's like the, the starting line is not January 1st, it's now.

SAM

Yeah. Whenever I create, like, you know, everyone has this thing where they go, I'm gonna eat healthy starting tomorrow. And that just says to them like, all right, I could pig out now, but I'm gonna start tomorrow. And whenever I think of dieting, I'm like, no, whenever you have the idea, to like, I'm gonna do this. You have to actually start this second.

SHAAN

I'll do that same thing, and but I'll be like, I was like, if I have the plate in front of me, I'm like, all right, I'm already feeling guilty. It's not finish this meal and start healthy tomorrow. It's I have to physically go take this plate to the garbage can and throw it away. But first, and I take the last bite like I'm a prisoner on death row, and this is the last bite, and I just savor that last bite like it is like every Every particle of that bite is like my heaven. And then after that bite, I go throw the thing away.

SAM

That's right. You gotta start right away. So that's my whole thing with goals. If you're gonna do 'em, you gotta start right away. What, what's this? Are, what, what do you wanna go? What's the most interesting thing? Arbitrage, that and money quote automatically have me interested.

SHAAN

Okay, let me do the money quote real quick. I saw this and this is something that I would say like resonated with me as a lesson for the year, right? We all know your boys lost a lot of money this year. We know, we know it happened. We know that the— that there, there is such a thing as the risk playing out this year. And one thing that really stood out was when I read this quote, I read it on Twitter. I'll read it to you.

SAM

By the way, how do you feel about losing money? Are you actually upset?

SHAAN

Look, nobody, nobody likes losing money. I don't like losing the money, but the adversity is my opportunity.

SAM

So yeah, but do you go to— do you go to bed— do you, do you go to bed worried?

SHAAN

No. What's that gonna do?

SAM

Well, most people— if I ever felt that way, I'd be like What's that going to do for me?

SHAAN

And then I would stop.

SAM

Okay, so you're— you are worried, but you're not that worried. You're sleeping fine.

SHAAN

There's no worry. Worry wouldn't even— worry's not even close. It's more like if there is an emotion that I would feel that's negative, it would be like, ah, shit, or ah, fuck, right? Like, it's like—

SAM

well, is it out of fear or out of embarrassment?

SHAAN

Out of like kicking myself, like, dang, I made a mistake, or maybe I should have thought—

SAM

like, you're like ashamed of yourself? Like, you're like, you're just upset that I made a bad decision?

SHAAN

Yeah, it's like, oh, I— you know, it's like if I'm playing ping pong and I hit the ball into the net, it's like, ah, that was an unforced— there was an unforced error. Could I have done something differently? Could I have shifted my angle slightly? Could I have taken a little less power on it or whatever? Right? Like there are things you ask yourself, could I not have read the signs differently or hedged or done certain things in order to protect myself?

SAM

But, but do you feel pressure now that you gotta go make that up? Are you like, shit, I put all this work in to get the initial thing. Now I gotta go put more time in to go get it back.

SHAAN

No, no. 'Cause I see, this is the good thing about playing, being a poker degenerate for so long. Is like, I've already gone through that like mental like trap a thousand times, so I know how to— I know how to get out of those handcuffs. Like, if you play poker, you, you will on a weekly basis have this feeling of like, oh God, I'm on a downswing, either because I'm playing bad or bad luck or whatever. And then the urge is to get it back. And I've literally been the dude who walks to the ATM at the casino and it's like, would you like to pay the $17 service fee? I'm like, yeah, fuck it, give it to. And then I like push it and I get the, get the $600 out and I hit the max. And then I'm like, all right, I got $600. I'm $3,000 in the hole and I gotta get it back. And then I lose the $600. I'm like, well, later that night as I'm reflecting in my comped hotel room, because I lost so much money, which is the ultimate backhanded compliment where they give you a free, free room. They're like, please sir, come back tomorrow. We, we would love to take your money again. They're like, don't go home. And you know, they're like, as I'm sitting there laying there and I think to myself, Oh, you know what? I shouldn't have gone and got that extra money. I should have cooled off. I should have gone with a clear mind. I should have, you know, gambled at the right stakes so that I wasn't trying to win it all back in the next hand or the next hour, whatever it is. So playing poker online and offline, you know, I've done a lot of the rookie mistakes hundreds of times. And at some point you realize, okay, gotta manage my bankroll properly so I can't go broke. Secondly, if you lose, you live to fight another day. Go clear your head, change your state. Don't come back and gamble right away. Second, like The money you're playing with now is not to win back the money you just won or lost. So if you won a bunch of money, that doesn't mean play reckless now. If you lost a bunch of money, that doesn't mean play desperate now. Like, you have to play in isolation. You have to play the odds and you have to play, you know, the best game you can and just try to make positive decisions. So you learn that in poker. Now, for me, with business or investing, that's all like baked into my DNA because I spent like 10 years doing that.

SAM

Sure. All right. Well, and so what about the money quote?

SHAAN

All right. The money quote is this. And by the way, this was— I just saw this on Twitter. I don't know who— I don't know the source of this. It's from a book. So it says, for one thing, we usually act too quickly when we're trying to make money and too slowly when we're trying to protect our money. If you're pressed to make a decision, ask yourself, am I doing this to protect my money or to make my money more— make more money? If the answer is protect, you should act more quickly. If the answer is to make money, you should act slowly. And I don't know about— I don't know if this is true for you. I think you're wired quite differently than me, but for me, This was like when you're in a room and you say something and you found that echo spot and it just bounces on all the walls and you hear it 1,000 times.

SAM

Why? Because what do you do?

SHAAN

When I feel like there's a moment to make money, I act very impulsively, quickly. I'll not put as much thought and research or diligence or patience into making a decision. I won't sleep on it because if it's making money, I try to strike while the iron's hot. And that served me well in some ways, but it's also been the source of many mistakes.. And then there's the other side of it when I'm trying to protect money. So for example, I'll tell you in the crypto case right now, it's like I saw and heard, because we were doing the Milk Road, we started reporting about these collapses before they happened. Like the Luna collapse right before it happened, the Celsius one before it happened. We put it in the newsletter, the FTX one. And in each case I kind of was like, oh, let me see how this plays out. When the prudent thing to do would've been to act more swiftly and say, hey, just out of an abundance of caution, let me withdraw my money out of this thing, or let me place a hedge, let me, let me do something to protect myself here. And I kind of was just like, let me sit back and let's see it when the action arrives, then I'll take, then I'll put my, my dukes up, right? And in reality, so I've learned that for me, this is a really good rule of thumb, which is if I'm trying to make money, that's the time to slow down, be a little more diligent. If I'm trying, if it's about, if I'm in a protect money mode, I should be pushing the action and acting more decisively and quickly because my nature is to do the opposite.

SAM

Dude, my nature is to do— so I'm pretty slow when it comes to money-making stuff. I'm like, no, I'm going to like actually assess if I want to do this. If it involves like a business that I have to operate or think about, I go, you know, do I want to do this for a long period of time? Let me actually reflect on this. But then when it comes to selling and protecting, I don't, I don't. So like if I buy a piece of property or something like that and let's say it's not working, I'm like, I don't care. I'm holding on to this. If I, if I own like some type of public equity, I go, I just pretend that it— like, I just can't sell. I've never sold a stock in my life, and I'm not sure if that's actually wise.

SHAAN

You've never sold a stock?

SAM

Never. I don't think so. I don't think ever. Not one ever. Maybe when I was fucking around, I was like trying to create content for the podcast when the AMC thing happened, and I think I bought $500 worth of stuff and then I sold it when I earned like a 10% return in one day and I was just like fucking around to like figure out how Robinhood— but that was more experimental. But no, besides that, I don't think I've ever really sold a stock in my life. I think that maybe my wealth manager or like my banker like does like tax harvests where like he's like, yeah, but like me personally, I have never sold. I've never sold a single stock.

SHAAN

That's amazing. Wow. Okay, so great. You're wired very well for success when it comes to—

SAM

You sold— wait, but so when you like buy and sell like equities, Yeah, for sure. No, I don't ever do that. I've never done that in my life. I don't think that's the right thing to do. Do you actually think that you're going to outperform someone who actually does this for a living and has like $20 billion or $50 billion in assets?

SHAAN

Well, either way you're thinking that, right? Like even if you don't sell, you're putting your money in assuming you're— I don't think I'm not trying to outperform somebody else. I'm simply trying to make more money. I'm trying to increase my rate of return. I'm trying to make more money or reduce my losses. And so one strategy is buy and hold forever, buy good assets, buy and hold them forever. And another as— another one is Sean wakes up, feels a certain type of way, and starts making decisions that he shouldn't be making, right?

SAM

Like, what if I told you that you're allowed to go start a private business and you're allowed to go do things like that, but any profit that you make, what it has to go into this pile of money that you can never touch again unless you want to withdraw the gains, but you cannot invest in anything other than this one thing, but it will get a 7.5% return every single year. For the next 100 years, would you accept that 7.5% return?

SHAAN

Shoot me in the head, why don't you? I mean, come on. What if I said you can only have white bread and turkey slices for the rest of your life?

SAM

So you wouldn't take that 7.5% return every single year?

SHAAN

No, dude, that is the craziest thing on earth. Really? I would take that all day. I'm not saying I'm a day trader, but I guess what I guess what I'm saying— wait, so you would not want to literally not be able to touch my money forever, nor would I not want to— no, I mean, not be able to make any decisions. It's like, ah, that's okay, if I, if I, if I, if I overperform, if I underperform, it's not even for that. It's just like, what's the fun in living like that? That doesn't sound fun to me.

SAM

What? But in this scenario, you can go and start— you can go and generate wealth, but any like wealth that you make that you don't spend on things that you actually consume and use for—

SHAAN

so I can invest in startups? I love investing in startups.

SAM

You can invest in startups. Oh no, it just— all your money just goes— you're basically— you, you could spend your money how you want in terms of like buying homes or whatever, anything that you want to have a cool life, but all of your investment goes into a thing where you don't ever touch it and it just makes 7.5% a year. That is— dude, do you realize 7.5% is— that's basically if over 100 years, that's what the markets do. It doesn't happen every year. You know, some years it sometimes it's -20%, but I would totally take that any day of the week. No decisions have to be made. You don't have to worry. 7.5% doubles every 10 years.

SHAAN

You don't want that. I put a portion of my money in that, right? So I have a portion of my money in index funds that I don't touch. I don't think about, but all?

SAM

Why does it have to be all?

SHAAN

Let me have some fun.

SAM

Why am I trying to get rich? What about 95%?

SHAAN

95%? Jesus, dude, this is crazy.

SAM

All right.

SHAAN

So let's say I'm 18, that's my best offer. And I'm not giving you a dollar more than that. 17%.

SAM

You have to admit, so for all of our listeners here, I actually think that most people might think like you at this moment right now. But can you— and if you're listening, you have to ask yourself this— but Sean, can you acknowledge that the 7.5%—

SHAAN

intervention— what's that?

SAM

Listen, listen, can you acknowledge that the 7.5% is financially the safe and correct move? Like, that will— in turn, I don't know how, like, like, you know, nerd bankers do the math, but like, statistically speaking, like, that is the best— that is the best probability to get like a high— a good rate of return.

SHAAN

No, I disagree. Uh, here's why. That is crazy. Here's why, here's why, here's why. I can take that money and just invest it in my own businesses. I can put the capital up for my own business and grow them at a much faster rate. I've done that multiple times. I did that.

SAM

Oh, in this scenario you could still do that. I'm just saying like any profit—

SHAAN

oh, I can't take— I can take money, put in my own businesses, you're saying?

SAM

Yeah, I'm saying you could start businesses, but like any— you basically have two— you have one account, or you have two accounts, a checking account that's just like for your living, and then just like an investment account. And then you could go and like, hey, look, I'm gonna go and start— put a little bit of money into my own privately held company. I'm saying you could do privately held companies, but you can't invest in anything outside of those things.

SHAAN

Yeah, so I think that for most people that is the correct answer. I think that for me that is not the correct answer.

SAM

For Tim, most people think they are not most people, which is crazy here.

SHAAN

That's true. That's true. For an above average person like me, and everybody who's listening is like, I'm above average too. The average person thinks they're above average.

SAM

This is absolutely crazy to me because if you just look at like all the evidence here, like even—

SHAAN

no, more like Buffett, it's the best ever money. And I put it into either investments that I have access to, like I think my startup portfolio is going to beat 7.5% average. I fundamentally believe that. So I'm going to put some amount of capital in that. Like, if you're betting that your startup portfolio or my startup, my Angel portfolio, is going to be worse than 7.5%, that's a— you could say that and it might end up being true. I'm not saying it's not true. I personally don't believe that's going to be true. It has other problems. It's illiquid and there's other things like that. But I think the rate of return is going to be closer to 20 or 30%. And so I'm gonna put some of my money towards that. I'll put some into my own businesses. I might buy a business or buy a minority stake in other people's businesses that are growing 20, 30, 40% a year. And again, different liquid, different liquidity, different risk profiles. But like, I do think that that is how I would prefer to play the game. And I'm okay with the fact that this might mean that I don't beat the 7.5%. I, you know, I'd rather be the hare than the tortoise. And I'm okay if the tortoise wins, the tortoise wins, but the hare had a lot more fun. And I just sort of believe that, you know, I'm gonna do well financially through my own businesses and my investments that like, I'd rather do it the way that's a little more engaging to the brain than just saying—

SAM

do you have any money in index funds?

SHAAN

Boglehead or whatever you call yourselves.

SAM

That, yeah. Do you have any money in index funds?

SHAAN

Yeah, yeah, yeah, I do. I, I have hundreds of thousands of dollars in index funds.

SAM

I, I, I think you're crazy, dude. The way that I look at it is my privately held companies, those generate wealth, those generate, you know, cash flow and income. And then I only want to focus on maximizing returns in that area. And then the whole rest I just put in this thing that I don't even log into.

SHAAN

I think that's a good strategy. I'm not saying that's a bad strategy. I think that is a good strategy. It is just not the one I choose for myself.

SAM

I, I think for most— for you, you are not most people, not actually in the sense that your investments are good. I do agree that they will be great. But you are different from the sense— in the sense of you don't get stressed out about things. But for most every other person out there, I think they should 100% follow my— the way that I do things.

SHAAN

Most people don't have a floating light bulb on their desk, do they? But I do. What are the 4 most dangerous words in the English language? 401.

SAM

The stupidest shit you've ever said.

SHAAN

We're going full First Take and I'm going full Skip Bayless on you.

SAM

All right, what do you, what do you got?

SHAAN

All right, so that's the money quote. Let me tell you about— okay, let me ask you a question about arbitrage. This is actually the least— I have some more well-researched stuff in this, but I want to hear what you have to say about this.

SAM

Okay, when I hear the word arbitrage, I automatically don't love it.

SHAAN

Okay, you might not like this question then. The question is, what are some of the great arbitrages you or your friends have capitalized on? And I asked this because I've bumped into people and I've met people who I think are really good at this. Your best buddy, Jack Smith, I think is very good at this. He's very good at identifying arbitrages. And I think these are kind of a horrible strategy to pursue for a couple reasons. Well, let's define what an arbitrage is. An arbitrage is where you recognize some inefficiency where you almost don't have to create any value. You don't have to create a product. You just sort of recognize that the system is slightly broken, you know, like you could buy something over here for X, you could sell it over there for Y with very minimal work in between and just pocket the difference. And you're like, oh wow, that's amazing that they just didn't recognize this. And it won't last forever, but it— when, you know, well, it does last, you can make hay. What are some arbitrages that you know of that people have done? I want to talk about those.

SAM

I'll tell you one that I did, and I'm not I'm not proud of it, but I think I'll share anyway. So one time when I— in 2013, I got poison ivy and I went to Amazon and I just sent it to you in this chat. I went to Amazon and I bought this thing called Zanfel. Zanfel. It's a poison ivy cream and it costs around— let's see what it costs. It costs $19 per ounce. And I read the reviews and someone said this is the same thing as Mean Green, which is a huge— Mean Green is like a tub. Of hand soap that you can clean your hand, and it costs roughly $0.20 an ounce. And so I ended up creating a website and I called this product Itch Juice. And it— and I bought a vat, like a 50-gallon tub of this stuff, and it was like a quarter an ounce. And I repackaged it and put an Itch Juice label on it, and I sold it as poison ivy treatment. And I made thousands of dollars when I was in college. And And, you know, and then I shut it down because I thought, this is stupid. I'm not going to become a— I'm not going to start a company called Itch Shoes. And so that's one example.

SHAAN

Too late, you already did, actually.

SAM

Yeah, I ended up shutting it down. I thought it was so stupid. But that's one example of an arbitrage that I've personally done. What's an arbitrage that I've seen other people do?

SHAAN

I don't know. I think Jack told me about one of— Jack told me about a few that he's done, but I think one that he's done that I— I, I vaguely remember, I might get some details wrong here, but for a while Jack was very, very active on Rally Road.

SHAAN

So Rally Road or Otis, these basically these marketplaces.

SAM

He was the number one user.

SHAAN

Yeah, you could buy like fractional shares of unique items. So, you know, like an original box set of Harry Potter or like this rare Pokémon card. So you could buy these collectibles. It was a, it was a place to buy collectibles. You could buy full or fractional shares.. And, um, Jack was extremely active on these and I thought, oh, Jack didn't know you were such a big collector. And he's like, I'm not, I'm not, just, you know, thought it was interesting and I just noticed this opportunity.

SAM

And I think what Jack had set up was, and, and by the way, with Rally Road, you can buy things that are like nerdy things that mostly boys like. So it's like you could own, uh, a portion of a 1965 Ford Mustang. You could own a portion of a like a 1977 Elvis Presley last live performance ticket, or this rare Andy Warhol painting, things that are, like, pop culture, sometimes manly man stuff, of which Jack is not, like, a traditional manly man. And I'm like, "Jack." He goes, "Yeah." I told him about, like, some Jaguar car. He goes, "Oh, the Jaguar F1?" Like, "Yeah, I own a part of it." And I was like, "You like that?" He goes, "No. I don't know. I didn't even know what it was. I just saw it on a spreadsheet." Yeah, exactly. That's how he is.

SHAAN

So I think what he was doing was he recognized that that these platforms would have what they would call like an IPO or something like that, initial public offering, where they would sell the thing and it would happen and it's like this moment and then you could bid and you could buy and then they would like, then it would start trading. And he noticed that like there was just more demand than supply for those things. And so he created like, I don't know, a bot or like a set of human beings that would like go buy as much as he could in the IPO and then he would just like immediately flip it right afterwards. And he extended that. I think he had, like, at one point he had a team of people in the Philippines that were just constantly searching for— I hope I could share all this. This wasn't like a secret, right?

SAM

Like, he was— I don't think he's still doing it.

SHAAN

Yeah, so he had a team in the Philippines that was just researching, and they were like highly competent people. They were researching eBay, and they would find what every, like, card is trading for on eBay, and then they would just scour and place bids to buy below that price and then flip it on eBay. And like he just had this like small 8-person operation that was just buying and selling these cards. No, as long as it was under, under the eBay price by a certain margin of safety, I think he was doing that. Something like that.

SAM

And by the way, this guy, Jack Smith, you can look him up on YouTube. He's our good friend. He started a company that he sold for $800 million when he was like 29 or 30. So he probably had millions of dollars on these platforms.

SHAAN

Yeah. Yeah. I think he spent millions of dollars on these platforms. And so he was kind of doing this at scale and I think he was making a pretty crazy return. Doing this. I think he was making, I don't know, I wouldn't be surprised he was making 40, 50, 60% returns on these, on these, on these items. And he was like scaling it pretty well. And I was like, Jack, what are you doing? Like, you know, hey, you genius, how did you even see this? Like, how did you even see this opportunity? Why, why did your brain even look at this? Secondly, just the balls to actually go for it and like set up this operation and like, yeah, put a significant amount of money in. Like, God, that's so different. I've never done something like that on a non-business. This is like not a business. This is literally just like an arbitrage. And then third, like, this is what you do with your time. Do you find these like little cracks in the system and just exploit them, these edges? And I think that's what he does.

SAM

I think he is like an edge seeker and he just finds edges and then he exploits them sometimes for profit and but mostly for amusement, it seems like, like When, when we, when I ran the Hustle, I wanted to have a weekly thread or a weekly column called Jack's Hacks, and he would just talk about all like the interesting stuff that he would find. I mean, if you would go to Jack's house, he would ha— he had moved into this part of Bernal, Bernal Park because he had a rental that, uh, a, a home that he rented that had a garage. And I was like, Jack, you don't even know how to drive. He didn't get his driver's license until he was like 30. I was like, Jack, you don't even drive. Why do you need this? And he goes, oh, that's where I'm gonna I keep all my Amazon stuff. I was like, what? And he goes, check this out. And he showed me this spreadsheet where he would buy 10 to 20 versions of anything that he wanted to buy, as small as a razor to a carry-on luggage to a, like, any type of suitcase to, like, chocolate to keto products. He would buy 10 to 20 of every single one, and he would test all of them, pick the one that he liked, and then return all other 19. So much so that he had to create multiple different Amazon Prime accounts because they ended up banning him. This is how like wild he is. He just loves doing these unique, crazy things and just like finding the edge, finding the best thing. And so if you say, Jack, what's the best carry-on luggage? He'll say, oh, it's this camera bag. Well, why is it a camera bag? Well, because camera bags typically have more volume. So this one holds 50 liters as opposed to 48 liters because it doesn't have like, like, like that. He does things like that. He's just unique.

SHAAN

He's, yeah, he's nuts. And so there's that. And then there, there's other ones that like, you know, just to give another example, I saw this, I think I saw this on Instagram or TikTok or something like that. This is another example of an arbitrage. This is why I wrote the word down. Arbitrage has just cracked me up. So somebody has an Etsy store and I think they're the number one result if you search Mona Lisa or like Mona Lisa photo print or something like that. And basically what it is, is it's an account that will send you a printed out framed picture of the Mona Lisa. It's like $50, $52, I think. And This Etsy shows you how much sales a single store has done, and this store has done 65,000 sales. And so you just do the math, you realize this person's made $1 million selling this Mona Lisa print. And then you look at it, you're like, oh, I think they're just dropshipping. So I think what they did was they just had the top listing for Mona Lisa Etsy, either cuz they were early or they bought it. I, I'm not sure exactly how they got there, right? I don't have visibility to that. But then as soon as you place the order, they just have like a, like a Zapier integration, which just goes to like, it goes to like, you know, what's it called? Like the printing website, like one of the printing sites, Printful, right? It goes to Printful and it just automatically places an order to your, fills in your address for that print. And it has a spread, like it only costs them whatever, $20 to do the thing. And they sell it for $52 and they just pocket the difference.

SAM

I'm looking at them now.

SHAAN

And you know, this is another arbitrage where they're not like creating a ton of value, they're just sort of like connecting these pipes.

SAM

We had a guy— 68,000 sales, vintage wall graphics.

SHAAN

Yeah. And so I'm pretty sure that they're just literally like automatically like going and doing a dropship model where they print, they print the order through one of these, these platforms. And they could always do the printing themselves if they want more margin, but like if you're just a lazy arbitrage, this is a great arbitrage to pick up. And then there's all these little places where these arbitrages exist. And you know, I, I start to think about those and I wonder, who are these people that spend a lot of time looking at this and is that worth it? Now I'll tell you why I don't think it's worth it. It's tempting to do for me for one reason, which is there's a sick pleasure at making a bunch of money with a very extremely low amount of effort of just, it was your cleverness that, that drove this. It's also fun to tell these stories if this is something you've done. So it's nice to have one or two of these in the bag of an arbitrage you've done, just to have the story. I feel like it's like a badge of honor for, for a certain type of entrepreneur. And the last thing, you know, so there's the positives. The negatives are these arbitrages don't last for long. As soon as they, you know, get exploited, you know, then the second arbitrage comes by, starts doing it, and the edge goes away. The window of opportunity closes. So you're kind of hunting for a long time and then you find something and it's probably not gonna last for a very long time.

SAM

So, so that's the downside. Dude, I have a friend who, who has raised tens of millions of dollars for a startup that was, uh, at one point valued for, for hundreds of millions of dollars. And whenever I hang out with him, the most exciting thing that he tells me about is he started a side hustle for fun because he builds stuff and he created an epoxy business. Do you know what epoxy is? I think that you use it for like floors or for like if you're making a table, you like a— it's like a sealer. He has an epoxy business on Amazon that makes him $250,000 per year in profit on very little work. And we don't talk about startups. We talk about his epoxy business. And that's like the most exciting thing that they do. And I think that for— I could name a dozen or so people who are worth 9 figures, $100 million plus, and or people who have made tens of millions of dollars. It seems that a lot of people who are worth that they definitely start doing things like this. So whenever I meet someone who's doing something like black hat or gray hat or even totally white hat, but it's like, oh, that's kind of lame. I always think like, well, but that's oftentimes how the greats start. So like most everyone who has made money on the internet, like even if you look at like Airbnb, like if you look at some of the early tactics that they used, even though they're a great, wonderful, ethical, publicly traded company now, like they still did weird, shady shit in the beginning. And I think it's just a rite of passage when you're creating cool shit is to do like, you know, gray hat stuff.

SHAAN

Yeah. I don't think all, like, I don't, I doubt Elon has, has, you know, done some random ass, like, you know, arbitrage on some dating site or something like that.

SAM

No, but he's done dumb shit. He still does dumb shit. Like he sells like stupid stuff.

SHAAN

Well, there's that. But like, I guess what I'm saying is, I guess I would put it differently. Anyone who has done that, I'm like, you have what it takes.

SAM

Like, exactly.

SHAAN

It's not that everybody who's, who makes it big has done that, but everybody—

SAM

sorry, I meant to say a large, a large amount. Yeah. Yeah.

SHAAN

And, and has a very high likelihood of making it big. It's just a matter of time until they start to apply their talents into that, you know, into that realm.

SAM

And like, we have this friend who, who we met at your thing, Syed, Syed, who owns WPBeginner and all the— in Awesomeness Corp, I think it's called. He probably— I don't know how big it is, but it's probably like worth hundreds of millions of dollars. I want, I want to get him to come onto the pod. So he's this guy who owns this like WordPress— it's called WPBeginner. It's like a blog that blogs about different WordPress plugins and stuff. And then he eventually went and bought the plugins and he like now is like a plugin, WordPress plugin, like mafia. Like they own everything you could think of. And it's huge. It's a huge thing that he owns. And he was telling me some stories about how he started and I'm like, oh, this is just the same story I've heard over and over and over again. Like something like not like scammy, but like, you know, something like you're just like doing normal internet marketing stuff. Like you probably were an affiliate for some product that you thought was stupid., but it just made enough money that you learned, oh, I should actually do this, but for things that can last a long— a longer time. Right. You know what I mean?

SHAAN

Yeah. I think one of his also was like, he went and changed his grades. He like hacked into the school system and changed his grades or something like that. So yeah, I don't know if that was a real story or a fake story, but I loved it.

SAM

Yeah. Like if I hear stories like that, just like, oh, like you definitely have what it takes.

SHAAN

Right. All right, let's do, let's do another one. You got anything else or you want me to do one?

SAM

Do you know any of the details about Pipe?

SHAAN

Um, I don't know the detail. I know, I know what you know. I know what you know from our group chat, so I don't know any more than that. But kind of a strange situation. The, uh, I guess for those who don't know, Pipe was this like cool, cool idea. Basically, if you had like subscription revenue, like, oh, monthly, monthly recurring revenue, they're like, look, we'll pay you out if you're going to make $100 at the end of this year. If like on that, on that subscription, we'll give you $90 of it up front. We'll keep the extra $10 as margin and we'll like, you know, so you could get financing. You can get basically a pay advance on your subscription revenue. And then they were on the other side, they had like banks and, and, you know, funds that wanted to buy these assets. They're like, oh, this recurring revenue is an asset class like real estate, like anything else. You should be able to buy bundles of recurring revenue for a discount for what it's worth, because they want money up front to use to grow, and you want this cash flow. And so that was the idea. Great idea. Raised a bunch of money. Gets valued at $2 billion. It's considered one of the hot winners. Pipe was a huge thing.

SAM

And then suddenly— But it gets valued at $2 billion after 9 or 12 months of existence. Yeah. Gets huge quick.

SHAAN

And I used it, for example, with my fund. It's like, oh, you get these management fees. It's like, oh, but you could pipe them and have them all right now instead of waiting. It's like, oh yeah, I'll push this button instead of wait. That makes sense to me. And so cool idea. Now, This week, for some reason, all of the founders stepped down, and which is, you know, generally speaking, bit of a red flag. All the founders stepped down and they're like, hey, we're gonna hire new people, but they don't have them in place. That was the part which was a little bit strange. So first, it's strange that all three founders stepped down at the same time. Then it's strange that they didn't have replacements in lieu, ready for it. And so people think, you know, Pipe might be imploding. I don't know the story. Did I miss anything there?

SAM

Well, the rumor was— see, someone tweeted it and actually got deleted. I don't know why, but the rumor was basically— and this is 100% rumor— and the founder actually came out and said, no, that's, that's nonsense. This is completely untrue. But basically someone tweeted, 4 people now have shared what happened. Pipe CEO loaned $80 million to a Bitcoin mining company, didn't tell the board, lost it all. Board fires CEO months ago. They had already sold a bunch of secondary shares and may have taken personal loans out as well. Which if all those things are true, that's horrible. Founder has said, no, none of that's true other than the secondaries, which we've made public that we did in fact sell secondaries. But just a juicy, interesting story that we'll have to wait and see how it turns out. I would've thought that you would've known something.

SHAAN

Yeah, it hasn't played out yet. I don't know. You know, sounds like bad news and you know, it's not relevant to me. So I, you know, I stayed away from it for now, but we'll see. We'll see. I'm sure this will come out and I don't think you can keep I don't think you can keep the cat in the bag on this type of thing. Um, oh, by the way, what happened with your thread about Andrew Chen with, uh, Jason Calacanis? I saw something popping off, but I didn't know. Were you, were you in harm's way? Do I need to get in there?

SAM

No, I appreciate that. But see, so here's what happened. So 2 years ago, Andrew Chen, who's a partner at a16z, him and I were at a mutual friend's house when a storm came, and I thought it would be— and I asked him like advice. I was like, how do you angel invest? And I purposely had like a sarcastic funny opener of like, I spent 72 hours trapped in a closet or trapped in an apartment, and it was like supposed to funny, but it's kind of hard to be like, to tell sarcasm on Twitter, I guess. And at the time I tweeted out his 5 like rules and like a lot of people hated them. And one of them was to run towards the heat. So hyped companies, that's like a good way to angel invest because hype is real, whatever. And I said, these are what he said. And then today or Sunday, someone tweeted out and they said, 2 years after this tweet, and this is why we are left with FTX Bird scooters. What are the other ones?

SHAAN

Fast. Fast. Yeah.

SAM

Pipe and a bunch of other like high-profile things that haven't done so great, of which I, Andrew didn't invest in one, by the way. Not one of those. But anyway, and they took a screenshot and they shared my tweets and they were kind of making fun of me. And then Jason Calcanis also shared the same thing and I thought he was making fun of me. So I started chirping back at him and then he DM'd me. He goes, I wasn't trying to make fun of you. I was just trying to make fun of Andrew basically. Basically is— that's not exactly how he said it, but that was the implied thing. And I was like, well, I didn't sense that from you. And he goes, well, I'm sorry you felt that way. All love. And I go, all right, that's fair. We're cool. And so I didn't— no, I didn't pounce. But we're cool. I've got nothing but love for him. You make fun of those guys all the time, or Chamath at least. I've never once— if you go back and listen, I've never once made fun of any of them. I like Jason. He's been nothing but nice to me throughout my career, but I, I was holding back and I'm happy I did. So we're all good.

SHAAN

Yeah. But I got a little bit of throwdown on those types of things though.

SAM

I am, I am ready to throw down. I like one guy, I was like, you know, I, dude, I know I see you in Austin. I'm going to see you again, just so you know. And, uh, like, I'm more, I'll see you, I'll see you around Austin.

SHAAN

He goes, is that a threat? You go, No, I live in Austin too. I was like, I think that was a threat.

SAM

Dude, I— by the way, I will— I'm— I've done— I've been to jail. I do— I've been a bad person in my past, and I will never break the law again. My goal in life is to never break the law. I will never— I'm totally a pacifist. I will— I do not want to hurt anyone, so I will— my intention is never to do anything wrong. I'm just saying, like, if I see someone, I'm gonna like be like, hey, you were being rude to me online, be rude to me now. I'm not gonna hit anyone, I'm not gonna hurt anyone, but I would have no problem confronting someone. That's how it should be, right?

SHAAN

Sure.

SAM

Am I wrong for reacting to these people?

SHAAN

I've been to jail.

SAM

What I'm saying is, I— when I used to get in trouble, I promise, I go, I don't want to do this ever again. I don't want to do anything bad. I don't want to hurt anyone. I don't want to—

SHAAN

but you do, you do train like you're preparing for a fight.

SAM

Yeah, I do, but I don't—

SHAAN

I, I will—

SAM

I like, I will never hit someone. I would— I'll let someone hit me a bunch before I react.

SHAAN

But if you did, you'd win the fight.

SAM

I would hope so. I would hope so. At least against someone on Twitter, more likely than not.

SHAAN

If you got a Twitter account, I could kick your ass.

SAM

Yeah, if you're one of the 300 million people on Twitter, then there's a good chance that I'll come out on top, but not always. But I don't know, am I wrong for reacting to these people?

SHAAN

No, I thought it was hilarious. And then they're like, down on the 'see you in Austin.' That should have been— that should have been, 'Yeah, I'll see you around,' not 'I know, I'm just saying we live in the same town.' That's not what you were saying. Why'd you change?

SAM

Dude, I'm not gonna— I'm not gonna incriminate myself. You can't incriminate yourself, man. I've learned enough.

SHAAN

No paper trail.

SAM

Yeah, you can't incriminate yourself. And then some guy was like, 'Yeah, you, you're like a— just own it, you're a get-rich-quick type of guy.' And I said, uh, name one example of like, could it be this example where I replied to someone and said the best way to make money is to work 40 hours a week on a company that you start for 15 years? Is that a good example of my get rich quick like mentality? Like, show me an example. And he is like, I guess, I guess you can't show me an example. Or he said, I can't show you an example.

SHAAN

I don't— the podcast, My First Million.

SAM

Yeah. I'm like, what does that have to do with getting rich quick? And he goes, well, I just, I can't, I can't find an example. So I just said, thanks for the apology, bitch. Like that, that just, that's good enough for me. That's all I need. I'm just a petty son of a gun. Yeah, you know what I mean? I'm just petty sometimes, but, uh, whatever. It's all good. Should I not react to this stuff? Is this below me?

SHAAN

No, no, it's good. It's good. I enjoy it. I'm here for it. Should you? No, of course not. But like, do I want you to? Yeah, I do.

SAM

Do you ever react to it?

SHAAN

There's been a few situations where I've argued with people, but, you know, yeah, you know, it doesn't really get you anywhere. And also, there's been some— there's been many, like, I've sent you some of the vicious tweets that never sent, or I just say, look, this is a screenshot, send it to Sam. You don't push send on this one because, you know, it's the wrong type of lighting someone up, right? You're not trying to do that right now. Don't, don't do that. But, you know, Taylor Lorenz did get it. She did get it. She was called the Jake Paul of journalism, and like, you know, she never really recovered from that, I don't think.

SAM

So at this point, I don't even want to make fun of her anymore. Like, it's like making fun of Kanye. It's like, you know, you're working through some stuff. We gotta—

SHAAN

I don't want to— maybe she— I don't know, she blocked me. I haven't paid attention. Is she working through some stuff? Is that what's happening?

SAM

It appears that way. Like, there was like videos of her crying about how she's like getting so much hatred on the internet, and I'm like, oof, that could wear you down. I don't want to— I don't want to even— I don't want to pile on. Yeah, it's like making fun of Kanye. It's like, you know, that's— you don't make fun— you don't call someone an idiot when they're actually an idiot. You know what I mean?

SHAAN

That's true. One of the golden rules of my first movie.

SAM

Yeah. You don't make fun of— you don't call a crazy person crazy.

SHAAN

You know what I mean?

SAM

You just don't do that. So anyway, it looks like she's working through some stuff. So that's why I say there's a few other people like that who you and I know of.— that I'm like, this crossed the threshold where we can't mock them anymore.

SHAAN

Right, right. All right. Well, get well soon, Taylor and Kanye and anybody else out there who's genuinely going through stuff and it's not all in good fun anymore. All right. Fair enough.

SAM

That's the pod.

SHAAN

I feel like I could rule the world. I know I could be what I want to. I put my all in it like no days off. On the road, let's travel, never looking back.