Explain that

... all year.

So this is wild to me that we're even having this conversation, 'cause it, it, like at no other time in my life would you have companies coming out and saying, "We are so blown away by the demand that we are signing, contractually signing multi-year demand for this product, that we are going to go out and leverage the entirety of our balance sheet.

And then on top of that, we're going to borrow debt, because this is the biggest opportunity we've ever seen in the history of our company to compound returns on our money over the next few years." And then the m-- And by the way, these aren't just random startups.

These are like the biggest, most well-run companies in the world by teams that have historically been highly conservative when it comes to CapEx, and they're telling you this.

And then you have these numb skulls who work at sell side banks and like rando retail investors freaking out because the company is reducing their cash flow.

Like, that's not what these companies are supposed to be doing.

What are your overall thoughts then of Leopold as an investor, and what words would you have for him if he were sitting right here right now?

No?

I...

No.

I, I, I was a, I was a film...

I mean, I was a, I graduated with a business degree, but all my friends were in film.

So I went out to LA.

I thought I was gonna be a film producer.

Yeah.

So can you explain how you think about the, the exit or the sell when it's come-- when it's something like this where it's like a trend or a, a wave that may not be enduring?

Well, well, let, let's back up.

It all, it all is dependent upon the conviction level and the underlying thesis that you observed, right? So you, you have a thesis that you come up with that there is some new information that is likely to positively impact this company or this sector that the market is not aware of yet or that the market underappreciates.

Now, you have to ask yourself, to what extent is this a needle mover for this company, right? Is this going to meaningfully move the revenue needle, the profit needle, their cost structure, or the perception of this company? Is it meaningful? And are there other things that are happening to this company that are more meaningful than this one piece of information that I feel is a needle mover, okay? And then you have to ask yourself, to what extent do other investors, institutional or retail, already know about this? 'Cause it's not a binary thing, right? Some people might know, but does the market at large fully appreciate that piece of information, or do they only partially appreciate it? So it's additive, and you have to determine, am I highly convicted in this trade because this thing that's about to happen or that already happened is going to be massively impactful to this company, and there's nothing else that's going to impact this company over the course of the next few weeks or the next couple of months, and there are virtually no other investors, inst-institutional or retail, that understand this yet? And to answer your question, Sean, the exit window is when other people come to terms with this information, right? When other people start to appreciate this information that you found, that you traded on.

As soon as that information becomes public, like in the case of the Sphere, when other retail traders, when financial press, when the company itself and analysts started coming out with reports saying, "Hey, they're selling out the arena due to Wizard of Oz.

This is gonna be a game changer.

We're starting to revise our earnings estimates based on this new template that they found with the Wizard of Oz.

Let's see what's gonna happen." So are you making that bet and then kind of stepping away for a little while, or are you gonna be, are you active every single day then?

Big ice cream guy

... you know, like the, the, the way that I think about investments n- now, like if I was, if I was doing venture investing right now, here's how I'd think about it, the, the barbell theory.

I, I always talk about a barbell theory for a lot of different things, but I would think about barbell for venture investing.

And what I mean by that is there's two types of investments I think are really interesting in venture.

Um, one is actually not even really venture, but there are companies that are just meaningful, potentially cash flowing companies.

They, they have the capacity to really cash flow in something that might not even be that exciting.

And so it's not like a huge winner for you in terms of like being a 20, 30, 40X, or maybe it can be, but it's a company that so obviously is gonna cash flow that it's really de-risked.

... to encourage them?

Can you explain to people what that investment was, and then how you even came to that decision at the time?

Yeah.

I mean, it, it was simply looking back at that Snapple investment and trying to go all in on that methodology to say, "I am going to start paying attention more and connecting dots." So my officeThat I worked at for nine years where I was working when I started this journey was right next door to a Cheesecake, Cheesecake Factory.

And that Cheesecake Factory was in Dallas, Texas, and there was a line out the door every single day for lunch and dinner.

This was when Cheesecake Factory was really popping.

Now, if you're an institutional investor working in Manhattan at the time, you're probably not going to give as much credibility to a company like Cheesecake Factory as you should, simply because your taste in food, right, is probably levels above, uh, where most of America was.

W- uh, a- and you just can't relate.

Can you kind of speak to the opportunity that exists right now in using AI agents, kind of how far along that process we are? And then when we talk about people that wanna build things, build businesses, be ready for, like, this new world, this AI world that we're moving into, how critical of a piece is AI agents and learning how to use them in that process?

And I've seen that you've said before that you think essentially that AI is gonna hit in three different stages, and we're about ready to get hit by the third stage.

Yeah, I, I, I think investors that have done the best over the last few years have always been a few steps ahead.

If you think about this, uh, as being like an AI super cycle, uh, which I, I often cite, there was a phase one, which was that magical moment we all remember when we first hopped on ChatGPT, and we thought, "Wow, this is...

This thing can think, or at least pretend to think, really well.

Uh, it, it, it, it's almost like magic, and it- it's gonna change the world." And a lot of money was thrown at the companies that were responsible for building that technology, which was OpenAI and Anthropic and, uh, Google and a couple others.Uh, the second wave of the AI super cycle was what's commonly referred to now as the infrastructure layer.

So all the companies that were responsible for, you know, providing the technology that enabled, uh, that step up, uh, y-y-you know, in, in, in, in, in, in use cases.

So the chip companies like Nvidia, uh, the data center companies, um, energy companies, all the companies across the entire supply chain that enables artificial intelligence, uh, that's all part of the infrastructure wave.

Do you think that this wave is strong enough to withstand things that are beyond their control?

But doesn't that also mean that the average person sitting in their living room could have the same capabilities as Ken Griffin?

Yes.

That's what's a game changer.

And so, like, everyone's so concerned about the massive job loss that might or might not be coming.

I'm concerned as well.

But no one is equally hyped about the unlock of millions and millions of idea people around the world who for the first time in human history can execute their idea for pennies on the dollar.So anything that lives in your mind, any industry, any company, any solution to any problem on Earth.

We have lots of people that have ideas of how to solve problems.

Mm-hmm

Yeah.

Okay? All the swimming pool equipment broke, and everyone had to buy new swimming pool equipment.

And the pool companies went nuts, right? And so I was like, "Do people know about that yet?" 'Cause I'm in Texas, I live in Texas.

I knew about it like immediately.

I had a pool, pool equipment's gone.

All my friends all have to get new pool equipment.

How long is it gonna take you to get new pool equipment? Like six months 'cause we can't, they're literally sold out of pool equipment.

Wow.

I'm just gonna keep it safe." And so, I understand both sides.

This is the biggest life hack.

Nothing comes close.

Literally nothing comes remotely close to this life hack.

Forget about everything else in life, and just start investing, period.

You're done.

And guess what? Y- you don't have to spend any time if you don't want to.

Sure.

I'm just gonna keep it safe." And so I understand both sides.

This is the biggest life hack.

Nothing comes close.

Literally nothing comes remotely close to this life hack.

Forget about everything else in life, and just start investing, period.

You're done.

And guess what? You, you don't have to spend any time if you don't want to.

Uh, there's a lot of women that watch and listen to the School of Greatness, and if there's, man or a woman, in their 20s and 30s let's say, who hasn't gotten into investing yet, who hasn't taken it seriously, um, what would be the strategy if someone had an extra 100 to $1000 a month and they said, "I'm gonna start going all in in this strategy."And whether it's $100 a month, $1,000, eventually more if they have more, what should they start doing today to set themselves up for their future success?