Why I keep a lot of cash in my bank account
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- Опубликовано: 27 ноя 2022
- Want to SCALE your business? Go here: acquisition.com
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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 $200,000,000+ 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 business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
The way he says “ i have way more than that”🤣
He was calculating about "100-200 million" in his head lol.
Honestly
Second hand cringe
@@Parmigianapapi found one
Usually they don’t have more then that when they answer that way.
A bunch of people say "why would you keep so much cash" until a crash happens and all the people with cash can make big moves.
This aged well
He laughed like a wall street broker 😆
😂😂
My boy almost got insulted lol almost! He had to laugh that one off
😂😂 "way more than that" 👍
Patience is a virtue, but it is more difficult to differentiate between patience and fear of re-entering too soon. I am definitely interested to see your moves in 2023!
Nah I hate when people act like investments are guaranteed even real estate can crash.
@@jaredwilliams6853 the same can be said about cash
Alex was so adamant about having "way more cash" his face turned red lolol 😂
Fr it’s like it honestly way I see it…it’s not in your best interest to tell everyone you have a ton more money than they think. Let him think you only have 15 million why state “oh I have more than that” that’s a sign of insecurity to me (personally, I’m only 21) because if you do there’s no need to get red and say that out loud yah feel 💯🤦🏾
Yea 100%. He has a very fragile ego I noticed.
As symmetrical risk:reward. I don't mind losing 6-10%p.a on inflation because I am waiting for deals and opportunities that make me 3-20x my money.
Agreed. Having the cash to buy at extreme dip is worth it
@@damontayy1272 it's actually not. You make more money statistically by just blindly investing in the market.
@@damontayy1272Yuhp that’s how my dad acquired 2 houses. Beach front property dipped and now he’s got 2 houses he can rent out for 1600 a month.
@@programmer1840 it depends. If you sold out around the top of the cycle as he seems to have and are liquid as the market crashes you can make much more in the more traditional safe investments. When you have the amount of liquidity he seems to and are investing in the markets he is the traditional notion of inflation that most people have (i keep my money in the bank and my buying power goes down) doesnt really apply. He is selling an asset at an inflated price and buying back/reinvesting at a lower price after keeping himself liquid for a few months. The obvious risk of such a strategy is you time it wrong an the market keeps going up but the highs from last year were clearly not sustainable.
Inflation is not 6-10%
Alex is not capping! He RICH! He worth 250 million! This man said him and his wife aiming for the Multi-Billionaire status.
frfr
Yup like ye was worth billions.
@@camilodelarosa7185 yup like your worth nothing 😭😭😭😭
@@healthality5001 Cash isn't safe. Inflation can become hyperinflation very quickly.
The US dollar isn't as dominant as it long was.
Such a simple, straightforward considerate person. Much Respect 🤙🏽
Correction: he has significantly more than $15m sitting in cash. I would guess it’s prob closer to $100m. But him and Lelia also have a portfolio company that has equity stakes in other businesses for which they have the skill set to grow so their money is working for them.
If you know how to provide value to companies to get them to grow, you don’t really have to worry about inflation.
Yeah I’d guess 70-100M as well. He’s smart to wait a year or so to deploy. Losing 4-7M is a small cost to his upside of deploying that amount after a downturn.
How did he not get crushed in taxes cashing out all those businesses?
@@pjacefilms I’m sure he has accountants to help him offset his taxes. Buying and investing businesses also has tax advantages. He has mentioned he and Leila have invested in about 70 businesses now.
I love how Alex laughs it makes me laugh as well
Uncle warren lol I like that
Damn bro you need security or landscaping a jack of all trades here 🤣🤣
My guess is 69 million plus
He gave him that Jeff Bezos rich laugh bahahaaahah.
It's all about timing.
“With leila closer to 15 haha what a goof” dudes worth 100+
Some people have a hard time grasping the concept that even if he keeps his money in the bank and a crash does affect him he’d still have more cash than all of us here to basically jumpstart any opportunities that happen because of a crash.
The way he looks down and closes his eyes shows how humbly he meant it.
Or that he was lying lol stop it
@@reedhampton5101alex isn’t a fraud like most “millionaires” are on the internet.
No he got offended. He bases his value completely on the amount of money he has.
Rich getting richer. I’m glad I’m one of them. I mean us
You can tell he’s not lying when he says I have way more than that. That lets you know he’s packing way more than that😂
My man said I have way more than that on cash now that’s some boss shit but he earned it
“i have way more than that”
MUAHHAHAHAHAH
Plus there's about to come a time where everybody is gonna wish they had a bank full of cash to buy assets for rock bottom prices during the crash
You wont be able to use it my friend
@@User-in2mg exactly if think where to crash the last place you want your money is in a bank
It's better to keep your money in assets because you can sell those assets or open credit lines against those assets and use that credit to buy what you want to buy
My guy research a bail in
This is a man I aspire to be like
Warren did the same thing in the 70’s when the stock market crashed. He waited three years and watched everyone get richer until the day they didn’t. He was the only one with cash to buy everything dream stock he wanted. God bless brother
It’s now 2024 though bro
Look at market cycles and study four stages of market cycle@@ocho33
Cash in bonds, thats safe against inflation
I love this man, so baller but honest 😂
‘Oh I have way more than that’
My guy felt disrespected when asked if it was 15 mil 💀💀
His mind is gonna be blown when the banks go insolvent when Basel 4 kicks in.
Man did that jim carrey rich man laugh
Very curious how to actually store this amount of cash. FDIC only covers 250k, and the rest is virtually at risk of evaporating. Is this where off-shore institutions come into play?
These guys have access to banks we don’t. And there’s insurance for everything. You can insure your money
Look into “Nomad Capitalist” on RUclips - offshore isn’t a mystery black box, and it’s actually pretty straightforward when you hear it explained thoroughly.
People have no idea. The IMF wrote about data integrity issues during cyberattack simulations on the financial system. That means 1s and 0s could turn to 0s and bank records likely could be destroyed. Maybe not all but a lot probably will. Not to mention the liquidity crisis Jim Rickards mentioned, who worked financial war games and consulted with the CIA, DOD, Pentagon, etc. Largest wealth confiscation in history. And bail ins. I think this time we will go through an unprecedented event
Bitcoin…
@@TNnxnek epic. thanks!
Oh cool... I have waaaaaaYyyyyyyyy more then that
Talk about ‘insert evil laugh’
So humble
I agree, at a certain point there’s bigger fish to fry than trying to squeeze 2 more % outta every single dollar
Good job 👏🏼
More or less better have some cash in case the electronic wire or internet get messed up, then the bank will stop you to have your hard earn money back. So better have some cash in case
Alex has earned a flex for all the free knowledge he gives. Hopefully he doesn't make it a habit though because this vid offers zero value.
I mean I think there’s value in saying that you should probably hold on to more cash vs spending it all on stock investments that may not have the return you can get investing cash in opportunities
In the UK they can do a buy in, taking all but 80k of your money. Is it different in the states?
I need to and I will study this man
Cash is king when moves need to be made quickly
Boom! He knows the macro. This other guy dosent
So this is way over what fdic covers, do they have other insurance policies to cover bank runs/force majeure type extremely unlikely scenarios?
That crash has some to do with warren buffet tho
Alot of people are worried about the economy.
Going to be rough times ahead for a while
How do you get into the circle without having 100mil?
What podcast episode is this
When he closes his eyes "I have way more than that!"... I respect Alex, but I'm not sure he was legit here..
S&P fell almost 20% in 2022. The man is not stupid
True. But warren buffet won't be alive in 10-15 years. It's surprising he doesn't have more in cash
Should cash be part of your diversification plan
Bet that number is a lot closer to 115 million
Sell high,buy low. Stocks,cars,houses.. etc. goes for anything
So modest
cds payin good now
I was born in Soviet Union and know how to lose all my savings bc government decided to change the currency. Where is the teaching for ppl who have few thousand dollars as savings or some cash at home. I am happy for Alex, but be humble and ALWAYS remember where you came from.
Fractional reserve banking means your money is at risk in banks if people start pulling out.
Or until the matrix no longer uses a money system.
Cash is a position
Banks only insured for $100k. Plenty of appreciating assets available to purchase.
He’s going up no matter what
Id keep it in gold over cash
Around 55 MIL
Timing .
warren says hold during sell offs because of the history of returns and gains in the market. also he has said he has invested in legacy companies such as coke more money.
people act like you have to be invested at all times because of inflation but if you invested at the highs of the market you would be down more than inflation rate lol
Nice
This is why I know the markets will recover. Rich people are holding cash and waiting for the bottoms so they can reinvest and make out big when it recovers.
Warren always has a stack of cash, ready to buy stocks when the stock market crashes.
humility
smart dude
But you dont actually tell why
Dry powder reserves
His laugh is so douchy
How does he keep that much cash in a bank account when bank accounts are only insured $250k usually? Why mot buy t-bills or something?
wrong information warren buffet doesn't keep physical or bank cash for his $100 billion cash
he keep those in 2 ways
1. farms/properties
2. treasury bills/notes/bonds
those cash aren't sitting waiting for inflation to eat it all those are safe and is slowly earning for themselves
Who is the guy mozi is speaking to?
Behind the brand
If you think this is egotistical you are insecure and need to work on that part of yourself. Or you will never be talking about millions in the bank.
the thing is you can always just take out a loan against stocks and assets to have a virtually unlimited supply of cash and loose zero dollars in the long run.
He doesn’t need to share exactly the number, who needs to blow themselves up when you can pop open the bank account and see the zeros 😎
Can't get out if you're locked up
I would have a big majority of that in a high yield savings account
Silver is cash
I'm guessing waiting for the bottom, to go all in and make a killing
Hmm some say to keep money as crash will happen and you will be able to buy more soon ... others say it is liability anfld by keeping money they are loosing value every day...
Too bad debt notes are the next to vanish
But they're already hyperinflating due to the banking crisis last week
Dry powder.
As Leila told him it kinda does come off egotistical
Who gives af? Y’all way to worried about people’s opinions. “I should censor myself and never mention what I’ve done or what I have. I also shouldn’t laugh or speak too loudly bc ppl might find it offensive 😰”
If someone is going judge you over something so dumb, fuck em.
I have way more than 15 dollars in my bank
But why does he keep looking down everytime he says “it’s way more than that” do I sense some deceit in those eyes. 👀
200mln or 150mln doesn't matter
This Guy's a whopper
Cash is king
He looks tired
What does this guy do
I have way less than 15m sitting in my bank
Odd seems like Robert Kiyosaki is preaching the opposite
I wouldn’t keep it in the bank tho