AI transcript
0:00:03 – I always thought anxiety and worry were the same thing,
0:00:06 but worry is actually, it’s a behavior.
0:00:08 It’s almost like a self soothing behavior.
0:00:10 And people who are very anxious
0:00:12 think that if you just worry enough,
0:00:14 you won’t be anxious anymore.
0:00:17 But instead, worry can make you more anxious.
0:00:19 Like you’re never gonna get to the end of the worrying.
0:00:22 – If it’s a behavior, why not change it?
0:00:24 This week on the gray area,
0:00:27 I talked to Olga Hazan about our personalities
0:00:29 and whether we can change them.
0:00:31 Listen to the gray area with me, Sean Elling.
0:00:34 New episodes every Monday available everywhere.
0:00:38 – Welcome to Office Hours with Prop G.
0:00:40 Today we’re wrapping up our special two-part series,
0:00:42 all about careers, navigating them, advancing them,
0:00:43 maybe even surviving them.
0:00:46 I’ll be sharing my best advice.
0:00:47 I don’t know if it’s the best advice,
0:00:48 but it’s my best advice.
0:00:51 No corporate speak, no BS.
0:00:54 That’s right, NC17, our rated advice.
0:00:56 That’s why we’re here.
0:00:58 I have not read or seen these questions.
0:01:00 So let’s bust right into it, first question.
0:01:05 – Hey, Scott, my name is John
0:01:07 and I’m a recent college graduate based in Florida.
0:01:09 I’m pursuing a career in financial services,
0:01:11 specifically wealth management for households
0:01:14 with a net worth between one and $5 million.
0:01:15 Like many white-collar professionals,
0:01:16 I’m concerned about the impacts
0:01:19 that AI could have on my industry.
0:01:21 While I see AI as a valuable tool,
0:01:24 I worry that the chatbots could offer potential clients
0:01:27 a faster, more knowledgeable, and ultimately free service
0:01:30 posing a pretty big challenge for myself.
0:01:33 Wealth management has always faced issues
0:01:35 from road advisors, fee-cutting firms,
0:01:38 but fortunately, compliance has always saved us.
0:01:40 What advice would you offer a young professional
0:01:42 like myself to future-proof my business
0:01:44 against AI-driven disruptions,
0:01:47 all while continuing to grow and provide value to clients,
0:01:50 especially as a 20-something-year-old with a young face?
0:01:51 I appreciate your time.
0:01:54 – That’s a really thoughtful question
0:01:57 and I think kind of information-intensive
0:02:01 white-collar industries that, to a certain extent,
0:02:04 trade and complexity, there’s a lot of regulation,
0:02:07 there’s a lot of different assets, people have taxes,
0:02:09 it’s complex once you get above
0:02:11 any reasonable set of assets.
0:02:14 And so people want to feel security,
0:02:15 they want an absence of fear,
0:02:19 they want someone nice and young and attractive and bright,
0:02:22 such as you, to show up and actually,
0:02:25 to a certain extent, use as a bit of a disadvantage here,
0:02:26 but give them a sense of confidence
0:02:28 that they’re doing the right thing with their assets.
0:02:31 And in exchange, sometimes or many times,
0:02:33 people are willing to pay 1% to 2% of their assets.
0:02:36 My mom paid this guy 1.5% a year
0:02:38 to basically buy a bunch of shitty stocks for,
0:02:39 and I looked at it and said,
0:02:42 okay, this makes no sense, invest in Vanguard.
0:02:46 This guy can’t pick stocks, he’s some 65-year-old
0:02:48 sitting in a bad office somewhere in Las Vegas,
0:02:50 and he’s underperforming the market,
0:02:52 but he’s really expensive.
0:02:55 The majority of wealth managers in that way class
0:02:58 could be best described as expensive but bad.
0:03:00 They’re high EQ, they make you feel better,
0:03:01 they come over to your house.
0:03:05 Anyone who takes you to dinner or to a sports event
0:03:07 means their fees are way too fucking high.
0:03:09 You know who will never take you to a next game?
0:03:10 Vanguard.
0:03:13 And you are in kind of ground zero,
0:03:15 I think, unfortunately, for disruption around AI.
0:03:16 So what do you do?
0:03:17 First, let’s look at some data.
0:03:18 According to Brookings,
0:03:21 those in business and financial operations occupations
0:03:23 are at the third highest risk level for disruption
0:03:26 from large language models.
0:03:28 Additionally, Citigroup believes that over 50% of jobs
0:03:30 in the financial services industry
0:03:32 could eventually be replaced by AI.
0:03:34 Pew Research found that 62% of Americans
0:03:37 believe that AI will have a major impact on workers,
0:03:39 but just 28% believe that it will have
0:03:40 an impact on them personally.
0:03:42 Recent data suggests that AI adoption rates
0:03:44 are just 5% in some industries,
0:03:45 creating an enormous opportunity for those
0:03:49 who do decide to utilize the new technology.
0:03:52 So my kind of saying around this,
0:03:53 if you’re gonna go into this industry,
0:03:55 you have to go on with your eyes wide open,
0:03:57 and that is you’re gonna have to get to scale
0:03:58 within three to five years.
0:04:00 And that is if you’re just managing
0:04:05 a bunch of like 100,000, $500,000 million portfolios,
0:04:07 at some point, they’re gonna figure it out
0:04:09 and just go to Vanguard.
0:04:11 What you need to do is get to a certain amount of scale
0:04:14 such that you can charge low enough fees
0:04:15 such that quite frankly, you’re worth it.
0:04:17 And then what does it mean?
0:04:18 What is value?
0:04:20 It’s fees over the services you’re offering.
0:04:21 Or maybe it’s the opposite.
0:04:23 Anyways, you get my point.
0:04:26 And in money management, the bad news is,
0:04:29 it’s as difficult or as easy to manage 10 million
0:04:32 as it is a million, but the good news is,
0:04:34 it’s as easy to manage 10 million as 1 million.
0:04:37 So financial services is a lot
0:04:38 like being a real estate broker.
0:04:40 It’s a shitty business for the first 10 years.
0:04:42 It’s going to every fucking event.
0:04:43 It’s giving your card to people.
0:04:45 It’s doing a lot of free work.
0:04:46 It’s doing a ton of work and finding out
0:04:49 that no one has, they don’t really have assets.
0:04:51 But once you have a stable of clients,
0:04:53 it turns into a really good business.
0:04:56 Now, the first thing is you are going to have
0:04:57 to acknowledge the following
0:05:00 or really adopt the following as religion
0:05:01 if you want to be successful.
0:05:03 AI is not going to take your job.
0:05:07 Someone who understands AI is going to take your job.
0:05:09 And that is AI still hallucinates
0:05:11 and the majority of people still do not want to use
0:05:15 an AI Robo Advisor to figure out which funds
0:05:17 they allocate across, right?
0:05:19 Even if you, they decide to go all Vanguard,
0:05:22 there’s still some decisions to be made.
0:05:23 There are Robo Advisors,
0:05:24 but most people don’t want to do that.
0:05:27 You are also going to have to become exceptionally talented
0:05:29 around the integration of how to make money
0:05:30 and how to keep it.
0:05:32 Now, what do I mean by that?
0:05:33 Taxes.
0:05:36 I would say the majority of my value add,
0:05:38 Goldman Sachs manages my money,
0:05:39 but really they don’t manage my money.
0:05:42 What they do is they manage my personal finance.
0:05:44 What do I mean by that?
0:05:45 I have several entities.
0:05:48 They coordinate my lawyers when I’m creating LLCs.
0:05:49 They give me tax advice,
0:05:52 which is really the kind of value add.
0:05:54 And that is, I’ll say, okay,
0:05:57 I am thinking of buying this or I’m buying a home.
0:05:59 Should I put it in an LLC?
0:06:02 If I put it in an LLC,
0:06:05 it might trigger a increase in taxes
0:06:06 because the home gets reappraised.
0:06:09 But if I put it into an LLC,
0:06:11 I can depreciate it a 2% a year.
0:06:13 And if I hold on to it for two years
0:06:14 and make some money off of it,
0:06:16 it qualifies for 1031 exchange.
0:06:18 If you sound confused, trust your instincts.
0:06:19 It is really fucking confusing.
0:06:22 Keep in mind that essentially the tax code
0:06:25 has been weaponized by very wealthy people.
0:06:28 It’s gone from 400 pages, I think to 4,000.
0:06:30 I read somewhere it’s gone to 7,000.
0:06:32 And those additional pages are basically loopholes
0:06:34 for the rich or essentially an effort
0:06:37 to transfer wealth in the lower and middle income households
0:06:39 to the wealthy who have aggregated
0:06:41 a disproportionate amount of the spoils
0:06:43 over the last 40 years.
0:06:46 But in that complexity is your value add.
0:06:48 And that is you can understand the difference between,
0:06:50 all right, I’m gonna help you allocate your assets.
0:06:52 We’re gonna go into low cost funds,
0:06:54 but I’m gonna help you pick them and help you diversify.
0:06:57 I’m gonna do the hard work of understanding
0:06:59 where you’re too concentrated.
0:07:01 I’m gonna establish a relationship with you.
0:07:04 I’m gonna do a lot of work for you kind of off the clock.
0:07:07 And I’m really gonna think thoughtfully
0:07:10 and come to you proactively with different tax ideas
0:07:14 or ways to essentially become more tax efficient.
0:07:16 It was like Wayne Hizanga, the founder blockbuster
0:07:19 used to run those ads for the state of Florida
0:07:22 talking about Florida’s zero income tax
0:07:23 or zero state income tax.
0:07:25 And you used to say, it’s not what you earn,
0:07:26 it’s what you keep.
0:07:29 So to a certain extent, a financial advisor in my view
0:07:32 is gonna have less value add on how you make money.
0:07:33 How do you make money?
0:07:35 You diversify and you’re going to low cost index funds,
0:07:36 all right?
0:07:37 But how do you keep money
0:07:40 is understanding their specific personal situation
0:07:42 and how they figure out and navigate
0:07:45 the incredibly complex tax code.
0:07:47 And you’re gonna have to also be the one
0:07:50 to cut your own fees as their assets grow.
0:07:53 Ritholt’s management, my friend Barry Ritholtz
0:07:56 and his partner, Josh Brown of CNBC fame,
0:07:59 they run a, I wouldn’t even call it a hedge fund,
0:08:00 I’d call it a wealth advisory fund.
0:08:02 And as they have grown their assets,
0:08:05 they have lowered their fees and they are very thoughtful
0:08:07 and give personalized advice to their clients,
0:08:10 which Vanguard, they may claim to do it,
0:08:12 but they really don’t.
0:08:13 And as a result, people decide,
0:08:15 okay, Vanguard would be less expensive,
0:08:17 but these guys are worth it
0:08:19 because they know my personal situation,
0:08:20 they’re willing to meet with me,
0:08:23 they walk me through ideas, they’re proactive.
0:08:26 So you are gonna have to become an AI warrior, my friend.
0:08:28 You’re gonna have to figure out a way
0:08:30 to get people’s financial complexion,
0:08:32 upload their credit cards.
0:08:34 Christ, figure out a way, go to that app
0:08:36 where it tells them how many subscriptions they have.
0:08:37 The first thing we’re gonna do,
0:08:39 we’re gonna focus on saving your money.
0:08:41 Give me your taxes, I’m gonna,
0:08:43 and then you’re gonna upload it to different LLMs
0:08:45 and try and generate ideas for tax savings.
0:08:48 You are going to be an AI warrior.
0:08:49 This is what you want.
0:08:51 This is what you want.
0:08:52 When your competitor walks in
0:08:54 to pitch them on managing their money,
0:08:57 you walk in with a Panzertank.
0:08:59 And that Panzertank is knowledge,
0:09:00 it’s willingness to do good work,
0:09:02 understand their personal situation
0:09:04 and understanding of how it all dovetails
0:09:08 with the tax code, and you understand how to use AI.
0:09:09 That is your Panzertank.
0:09:11 And the guy next to you or the gal next to you
0:09:12 who shows up after you,
0:09:15 they’re showing up fighting on horseback
0:09:16 because you understand,
0:09:19 you’re one of the 5% that understands how to use AI.
0:09:21 Let me finish where I began.
0:09:23 AI is not gonna take your job.
0:09:27 Somebody who understands AI is gonna take your job.
0:09:28 Question number two.
0:09:30 – Hi, Scott, I’m a big fan.
0:09:32 I’m a 23-year-old living in suburban New York.
0:09:35 I work at a mid-size physical good supply company
0:09:36 and maintaining and developing
0:09:39 some of their warehouse and logistical operations software.
0:09:41 I’m curious about starting my own distribution type business
0:09:45 and I wanted to talk to real-life people about this.
0:09:48 What advice would you give to find and talk to actual people
0:09:49 in an industry that you’re curious about entering,
0:09:51 especially if you’re a little introverted
0:09:54 and scared of sounding stupid?
0:09:56 – So anonymous, so you’re a 23-year-old
0:09:59 and my understanding is you’re thinking about
0:10:01 starting your own type of distribution business.
0:10:04 I always thought, so I started my first business,
0:10:06 I’ve been starting business my whole life,
0:10:08 but essentially my entire professional career
0:10:10 has been entrepreneurship except for a two-year-senate,
0:10:12 Morgan Stanley, that I was awful at
0:10:14 and only confirmed that I should be an entrepreneur.
0:10:15 But anyways, a couple things.
0:10:17 One, the way you start a business,
0:10:20 I mean, it’s good that you’re talking to people
0:10:22 and I’m not suggesting you don’t,
0:10:24 but the way you start a business is by getting a client.
0:10:27 A mistake I have consistently made, consistently made,
0:10:31 I still make it, is believing that spending money
0:10:32 is building a business.
0:10:34 No, it’s not, it’s making money that builds a business.
0:10:37 So the best way to test this idea
0:10:40 is to see if you could get a client.
0:10:42 And I’m not sure, I don’t know about the competitive dynamics
0:10:45 here or the situation with your current company,
0:10:47 but I would try and find a client
0:10:49 or pitch a potential client.
0:10:52 Yeah, talk to people, get some advice.
0:10:55 If you’re an introvert and you aren’t comfortable selling,
0:10:57 then you need to either find somebody who can sell
0:10:58 and make them your partner
0:11:00 or you shouldn’t be an entrepreneur.
0:11:03 Let me be clear, entrepreneur is a synonym
0:11:06 for salesman or salesperson.
0:11:08 You know what being an entrepreneur is?
0:11:12 It’s getting out a big spoon every day and eating shit.
0:11:14 You’re constantly selling.
0:11:17 I’m not talking about just selling clients, selling investors.
0:11:19 The most selling I have ever done,
0:11:21 I always had good products at my firms
0:11:23 and I felt like more than selling, I was closing
0:11:25 ’cause I would create content marketing
0:11:30 to try and create content that we then get inbound leads.
0:11:31 I used to tell our sales team,
0:11:33 you’re not selling or closing
0:11:35 because we did a really good job of content marketing.
0:11:38 The biggest sell I ever did was trying
0:11:40 to find really talented people
0:11:42 and then convince them to join my firm
0:11:44 when they had offers from Google and Salesforce
0:11:46 or trying to convince people to stay
0:11:48 that we would get to a liquidity event
0:11:49 and they would get economic security with me
0:11:52 as opposed to see above going to fucking Metta
0:11:53 where they were awarded options
0:11:56 that were already $300,000 in the money,
0:11:58 you are always selling.
0:12:00 And if you are not comfortable with that
0:12:02 or you can’t get comfortable with that,
0:12:05 then you need to find a partner who is comfortable with it.
0:12:08 There are some people that are so good at what they do
0:12:11 that they can build a business without selling.
0:12:14 My landscaper is this really charming guy
0:12:16 who will bring me out and show me,
0:12:18 he’s very emotionally manipulative.
0:12:21 He’ll come out and show me this bougain via
0:12:24 that he’s helping us drape over our garage.
0:12:26 I absolutely love bougain via.
0:12:28 It reminds me of my childhood in Orange County
0:12:29 and my dad’s super into them.
0:12:32 And he just picked up on the fact that I love bougain via
0:12:34 so occasionally he drags me out and he shows me this thing
0:12:36 and he literally goes over and kind of hugs it
0:12:38 like he’s in love with it.
0:12:39 That is selling.
0:12:41 That is developing a relationship
0:12:45 with a professor/podcaster that has an affection
0:12:46 for bougain via.
0:12:49 If you’re not comfortable maintaining
0:12:51 those sorts of relationships,
0:12:54 you’re gonna have to find someone who is.
0:12:55 So absolutely go out and talk to people.
0:12:58 But again, the way you start a business,
0:13:02 what builds a business is revenues, not expenses.
0:13:06 And at 23, it sounds like you were doing incredibly well.
0:13:07 The other thing I would ask yourself
0:13:10 or maybe get a kitchen cabinet together and ask them
0:13:12 is would you benefit from another couple of years
0:13:15 experience at your current firm?
0:13:15 Are you learning?
0:13:17 Do you have senior level sponsorship?
0:13:18 If you have those things,
0:13:20 do you want to think about sticking around for a while?
0:13:22 Is there an opportunity to grow with that company
0:13:24 if they find out you’re thinking about leaving?
0:13:25 What always really upset me
0:13:27 was when there was young talented people who left
0:13:28 and I’d say, where are you going?
0:13:31 And I think, that is just the worst fucking job ever.
0:13:32 What are you doing?
0:13:33 And they think, well, I want to be in a position
0:13:34 where I can manage people.
0:13:36 I’m like, well, why didn’t you come and ask me?
0:13:38 I’d have you manage some people.
0:13:40 Is there an opportunity at your current firm?
0:13:42 Develop a kitchen cabinet.
0:13:44 Think about whether you might benefit
0:13:46 from staying a year or two years
0:13:48 and think about how you get that first client
0:13:50 and if you are not comfortable selling,
0:13:51 then you need to find someone
0:13:53 to bring in the organization pronto
0:13:54 that is comfortable selling.
0:13:56 ‘Cause that’s what it means to be an entrepreneur,
0:13:57 my brother.
0:14:01 But again, 23 thinking this way, you’re doing really well.
0:14:04 We have one quick break before our final question.
0:14:04 Stay with us.
0:14:10 We’re taking Box Media podcasts on the road
0:14:11 and heading back to Austin
0:14:13 for the South by Southwest Festival,
0:14:15 March 8th to the 10th.
0:14:16 What is real?
0:14:19 We’ll be doing special live episodes
0:14:20 of hit shows, including Pivot.
0:14:21 That’s right.
0:14:23 That dog’s going to the great state of Texas.
0:14:25 Where should we begin?
0:14:26 With Esther Perrell,
0:14:29 a Touch More with Sue Bird and Megan Rapinoe,
0:14:32 not just football with Cam Hayward and more
0:14:34 presented by Smartsheet.
0:14:37 The Box Media podcast stage at South by Southwest
0:14:40 is open to all South by Southwest badge holders.
0:14:42 We hope to see you at the Austin Convention Center soon.
0:14:46 Visit voxmedia.com/SXSW
0:14:47 to learn more.
0:14:50 That’s voxmedia.com/SXSW.
0:14:57 This week on ProfG Markets,
0:14:58 we speak with Mike Moffitt,
0:15:01 founding director of the University of Ottawa’s
0:15:02 Missing Middle Initiative
0:15:05 and a former economic advisor to Justin Trudeau.
0:15:07 We dive into the state of Canadian politics
0:15:10 and we get his take on the biggest challenges
0:15:11 facing Canada’s economy.
0:15:14 Canada’s economy is like three oligopolies
0:15:15 in a trench coat.
0:15:17 We have a lot of inequality that way.
0:15:21 We have high levels of market concentration
0:15:24 because we have this tension in Canada
0:15:26 where we want things to be Canadian.
0:15:28 We want Canadian ownership.
0:15:30 But when you do that, you create a moat.
0:15:33 And whenever you create barriers to entry,
0:15:36 you’re going to naturally create oligopolies.
0:15:38 You can find that conversation
0:15:41 exclusively on the ProfG Markets podcast.
0:15:45 – Welcome back, question number three.
0:15:47 – Hi, ProfG.
0:15:49 I’ve recently transitioned to academia
0:15:52 after spending about 25 years in industry.
0:15:54 While I truly enjoy my new roles
0:15:57 with teaching, student advising, and research,
0:15:59 I still enjoy staying connected to industry
0:16:02 through consulting and professional advising.
0:16:03 I’ve heard you talk about the importance
0:16:05 of becoming a domain expert in your field
0:16:07 and I was curious,
0:16:10 where do you see efforts best spent for maximum impact?
0:16:14 Should I focus on podcasting, writing, industry presentations
0:16:16 or any other options?
0:16:19 You seem to excel at doing all of these.
0:16:21 What do you think has the biggest impact
0:16:24 and what do you personally enjoy the most?
0:16:27 Lastly, I just wanted to say that I really appreciate
0:16:30 the insights and thoughts you put into your work.
0:16:32 Your perspectives are not only fascinating,
0:16:34 but also make me sound much more knowledgeable
0:16:35 than I really am.
0:16:37 I’d love to buy you a drink to thank you
0:16:39 the next time you’re in Colorado.
0:16:41 Looking forward to hearing your thoughts.
0:16:44 – So first off anonymous, you shouldn’t be anonymous.
0:16:47 You’re not saying anything that would threaten your job
0:16:48 and you sound like such a lovely guy.
0:16:51 And also you have more confidence
0:16:53 than I did when I was your age.
0:16:55 You’re able to express admiration for other people.
0:16:57 I had this fucked up notion of masculinity
0:16:58 when I was your age.
0:17:01 You sound like you’re 20s or 30s.
0:17:04 That if I was impressed, especially with another guy,
0:17:07 it somehow took away from how impressive I was.
0:17:12 I didn’t have the confidence to express admiration
0:17:14 or heat praise on other people.
0:17:17 So you’re already well ahead of the game
0:17:18 and you got a nice voice.
0:17:21 And it was, it sounds to me like you’re just set up
0:17:23 really well for success.
0:17:24 Now transitioning to academia.
0:17:30 So first off, I think academia is underrated as a career.
0:17:33 It is wonderful.
0:17:34 It attracts a lot of lone wolves
0:17:36 ’cause you can do a lot of stuff on your own.
0:17:38 There is some problems with academia right now.
0:17:40 One, it’s become morally corrupt
0:17:41 based on an exclusionary rejection
0:17:43 as bullshit culture of not letting in kids,
0:17:45 despite the fact we have the capital
0:17:47 to double, triple or quintuple our freshman class.
0:17:49 That’s another talk show.
0:17:52 And there’s too many old people who refused to leave
0:17:56 that were the man or the woman in gap one accounting
0:17:58 or understood the difference between black water
0:18:00 and blue water economics in 1978.
0:18:02 And now they’re 80 and won’t leave.
0:18:04 And basically just show up to faculty meetings
0:18:05 and they’re hugely disruptive.
0:18:08 I work with what I think is probably the best faculty
0:18:11 in America at NYU Stern.
0:18:16 And 10% of any faculty are just so inspiring.
0:18:19 These are people who give up a dramatic amount
0:18:22 of compensation ’cause they love teaching
0:18:24 and they are just so good at what they do
0:18:26 and their relentless pursuit of the truth,
0:18:29 especially in this age is just inspiring
0:18:32 and they’re great storytellers and they care about people.
0:18:34 Anyways, but the downside of academia
0:18:38 is there’s just a third of the people at any institution
0:18:41 that quite frankly just shouldn’t be there,
0:18:44 aren’t pulling their weight and because of tenure,
0:18:46 which is essentially a guild for the unproductive,
0:18:49 tenure is nothing but student debt in my viewpoint.
0:18:52 Anyways, I don’t know how I got here.
0:18:55 What mediums would be best for you?
0:18:58 You’ve got an amazing platform.
0:19:00 One thing I’ve really benefited from at NYU,
0:19:02 I say a lot of provocative, aggressive things.
0:19:05 I think without the halo of the NYU brand,
0:19:07 people might just think I was an asshole
0:19:10 or maybe a creative asshole or maybe an interesting asshole,
0:19:11 but mostly just an asshole.
0:19:13 But I think people take what I say more seriously
0:19:16 because I do try and show some fidelity
0:19:19 to the institution and to academia
0:19:22 by having a team of people that research things,
0:19:24 we fact check, we go over stuff,
0:19:27 we try and marinate in data.
0:19:29 I do have an approach to teaching.
0:19:32 Anyways, I do think it’s a very powerful platform.
0:19:34 So what mediums?
0:19:38 All strategy comes down to one thing.
0:19:43 What can I do or what can we do that is really hard?
0:19:46 That’s all strategy is.
0:19:50 What can we do that is really hard?
0:19:54 We have an amazing story about scale and e-commerce
0:19:56 or scale around streaming.
0:19:58 So we can raise so much cheap capital
0:20:01 that we’re gonna spend more money on warehouses and planes
0:20:03 or on original content.
0:20:05 We’re gonna spend $18 billion a year on original content
0:20:07 which is more than we spent on the entire film
0:20:09 or television industry the decade of the 80s.
0:20:11 That is really hard to do.
0:20:13 So they lean into their advantage
0:20:16 of just overwhelming the competition with capital
0:20:18 via great storytelling and access to cheap capital.
0:20:21 That is really hard to do.
0:20:22 You need to decide, all right,
0:20:24 what would be really hard to do?
0:20:25 And the way you figure that out
0:20:27 is you ask yourself, first,
0:20:29 what am I really good at?
0:20:30 Could I start a podcast?
0:20:33 And if I do a podcast, am I good at it?
0:20:34 Do I have the ability to get good guests?
0:20:36 Do I have a good voice?
0:20:38 Am I compelling in this medium?
0:20:40 Do I find that people wanna listen to me?
0:20:41 Do you write well?
0:20:43 Can you go on LinkedIn and start writing
0:20:45 about your specific domain
0:20:48 and immediately get people subscribing and following?
0:20:50 Are you really good on TikTok?
0:20:54 You wanna figure out what is your medium, right?
0:20:55 And the way you figure out what is your medium
0:20:57 is you pick one or two and say,
0:21:00 “I need to be in the top 10% in terms of followers.”
0:21:03 This is an assignment I give my class and brand strategy.
0:21:05 I tell them that they must pick a medium.
0:21:07 It can be threads, it can be acts,
0:21:08 it can be Twitter, it can be PowerPoint.
0:21:10 And then they need to figure out a metric
0:21:12 that says by the end of the class,
0:21:14 I’m going to be in the top desile.
0:21:16 And you can figure out those numbers.
0:21:18 What is the number of followers you need on Instagram,
0:21:20 on Reels, to be in the top desile?
0:21:23 And it’ll tell you, this is how many followers you need.
0:21:27 So you need to figure out what is your medium.
0:21:31 What I enjoy the most is writing because it’s the hardest.
0:21:33 But when you write something worthwhile, it moves people.
0:21:35 There’s something about the written word
0:21:37 that when it’s done well and you’ve taken the time
0:21:40 and the energy to fact check, to proof it,
0:21:42 to make it sound elegant, to have a good twist of phrase,
0:21:47 to make people feel something, it really resonates.
0:21:47 It sticks with them.
0:21:50 If I go on Morning Joe or The View and I kill it,
0:21:53 it gets a huge sugar high on YouTube.
0:21:56 And it’s fun and it’s rewarding.
0:21:59 But there’s nothing like writing something
0:22:01 that where you took the time, you were up,
0:22:03 you proofed it, you fact-checked it,
0:22:05 and it resonates and it moves people.
0:22:08 Moves their emotions or it highlights something
0:22:11 that other people were thinking but not saying.
0:22:15 That for me is what I want to say is the most enjoyable.
0:22:18 It’s the most rewarding because it’s the hardest thing to do.
0:22:20 So the first thing I ask, can you write well?
0:22:23 Oh my gosh, if you can write well,
0:22:25 your brand immediately says to people,
0:22:26 you’re smart and you’re educated,
0:22:28 which is a good chocolate and peanut butter,
0:22:30 not only academia but in a professional world.
0:22:31 Is that your medium?
0:22:33 Or are you really good at presentations?
0:22:35 Do you want to figure out a way to start speaking in groups?
0:22:38 Do you want to call people, conferences and say,
0:22:42 hi, I’m a professor of X, I want to come talk about this?
0:22:47 I didn’t get, 98% of my time on stage, I don’t get paid.
0:22:50 I’ve returned all my compensation to NYU
0:22:51 so they don’t pay me.
0:22:53 And the majority of the talks I gave
0:22:56 for the first 30 years of my career,
0:22:58 I wasn’t getting paid for, is that true?
0:23:00 Consulting, I guess I was getting paid a lot.
0:23:02 But I did a lot of free speaking gigs.
0:23:07 Now I charge 50K for a virtual 200K for an in-person
0:23:10 and 400K if I have to go to the Gulf or Asia.
0:23:12 I don’t get a lot of those but I do get some of those.
0:23:15 Now, I am boasting but there is a reason.
0:23:19 It is taking me 20 or 30 years of deciding
0:23:23 that okay, speaking is probably what I am best at
0:23:25 and I’m gonna get fucking amazing at it.
0:23:27 I have a team of people pulling together
0:23:30 150 slide presentations.
0:23:31 I go through it like it’s a Broadway show.
0:23:35 I rehearse it, I think of video, I think of sound,
0:23:37 I think of emotional highs and lows.
0:23:39 And every time I give one of these presentations
0:23:42 or talks and I do about 40 or 50 a year,
0:23:44 I immediately right afterwards go back to the team
0:23:47 and say, we hit a narrative arc here
0:23:48 that just didn’t feel right.
0:23:51 This joke didn’t land, this was really good.
0:23:53 Let’s get data on this, let’s compare this to this.
0:23:55 It’s like I’m putting on a Broadway show or a movie
0:23:58 but every time I run the movie I get the audience’s reaction
0:24:01 and I get to re-cut the film, right?
0:24:04 I’m okay on Threads or Blue Sky.
0:24:06 I like to think I’m a good podcaster.
0:24:09 I’m not sure I’m great.
0:24:11 I like writing, I’m good, I’m not sure I’m great
0:24:15 but I aspire to be world-class in front of an audience
0:24:20 and it lends itself really well to my strengths.
0:24:23 The larger the crowd, the more charming and engaging I am.
0:24:24 I’m not very good one-on-one.
0:24:27 One-on-one I come across as insecure yet aloof.
0:24:29 I’m not good on the phone.
0:24:32 And you wanna figure out what mediums you’re not good at
0:24:33 and then find one where you think,
0:24:35 could I be the best in the world
0:24:37 and really lean into that medium?
0:24:40 In terms of the content, in terms of the content,
0:24:44 the specific crowds out the general.
0:24:45 I was in the field of brand strategy.
0:24:47 That’s a pretty specific area.
0:24:49 It wasn’t design, it wasn’t marketing,
0:24:51 it wasn’t media planning.
0:24:54 It was managing your brands as if they were assets,
0:24:57 like a portfolio in a mutual fund.
0:24:59 And then I went even more specific.
0:25:00 I started collecting data
0:25:04 on the digital footprint of luxury brands.
0:25:06 Not the digital footprint of all consumer brands
0:25:08 but the digital footprint of luxury brands.
0:25:11 And I started doing rankings out of NYU
0:25:14 on which luxury brands were the most digitally competent.
0:25:15 And I parsed it into five areas.
0:25:18 Genius gifted, average challenged and feeble.
0:25:21 By the way, rankings are incredibly powerful
0:25:23 when they come out of an academic institution
0:25:25 because you have to do the work.
0:25:27 You have to fact check the shit out of it
0:25:28 and then you put it out.
0:25:30 And wow, and the thing about a ranking is,
0:25:34 it’s not about who comes first, it’s about who comes last.
0:25:35 And that’s what I was willing to do.
0:25:38 Most rankings from institutions list the top 10
0:25:39 and give out awards.
0:25:41 No, I was gonna do a ranking that said,
0:25:43 okay, whoever it was, David Ehrman,
0:25:45 you’re literally the worst brand and jewelry
0:25:47 as it relates to digital footprint.
0:25:51 Anyway, go very, don’t be afraid to go very niche,
0:25:54 pick your medium and commit to being in the top 10,
0:25:57 if not the top 1% and don’t be afraid
0:25:59 to switch mediums in terms of your focus.
0:26:01 But you do create a flywheel.
0:26:05 I do all of it because I find it’s reinforcing.
0:26:08 Long-winded way of saying the specific crowds
0:26:10 at the general, find your medium,
0:26:12 commit to being in the top 10% within a year,
0:26:15 the top 1% within two to three years.
0:26:16 Don’t be afraid to switch mediums.
0:26:20 But my friend in academia, if you write well,
0:26:22 that is probably gonna be your go-to.
0:26:23 That is the hardest thing I do.
0:26:25 It is the most rewarding and quite frankly,
0:26:28 I believe it’s the most impressive.
0:26:31 Also, also in 50 years, it’s unlikely people
0:26:32 are gonna be watching your videos.
0:26:35 It’s unlikely people are gonna see your social,
0:26:38 but your kids will likely read what you have written.
0:26:42 And I find that nice to think about and very comforting.
0:26:44 Congratulations on your transition to academia.
0:26:46 I think it is a wonderful way to make a living.
0:26:48 Thank you Anonymous from Colorado.
0:26:51 That’s all for this episode.
0:26:52 If you’d like to submit a question,
0:26:53 please email a voice recording
0:26:55 to officehours@proptimedia.com.
0:26:58 Again, that’s officehours@proptimedia.com.
0:27:01 (upbeat music)
0:27:08 This episode was produced by Jennifer Sanchez.
0:27:10 Our intern is Dan Chalon.
0:27:12 Drew Burroughs is our technical director.
0:27:13 Thank you for listening to the PropG Pod
0:27:15 from the Box Media Podcast Network.
0:27:18 We will catch you on Saturday for No Mercino Mouse,
0:27:20 as read by George Hahn.
0:27:22 And please follow our PropG Markets Pod
0:27:24 wherever you get your pods for new episodes
0:27:26 every Monday and Thursday.
0:27:29 (upbeat music)
0:00:06 but worry is actually, it’s a behavior.
0:00:08 It’s almost like a self soothing behavior.
0:00:10 And people who are very anxious
0:00:12 think that if you just worry enough,
0:00:14 you won’t be anxious anymore.
0:00:17 But instead, worry can make you more anxious.
0:00:19 Like you’re never gonna get to the end of the worrying.
0:00:22 – If it’s a behavior, why not change it?
0:00:24 This week on the gray area,
0:00:27 I talked to Olga Hazan about our personalities
0:00:29 and whether we can change them.
0:00:31 Listen to the gray area with me, Sean Elling.
0:00:34 New episodes every Monday available everywhere.
0:00:38 – Welcome to Office Hours with Prop G.
0:00:40 Today we’re wrapping up our special two-part series,
0:00:42 all about careers, navigating them, advancing them,
0:00:43 maybe even surviving them.
0:00:46 I’ll be sharing my best advice.
0:00:47 I don’t know if it’s the best advice,
0:00:48 but it’s my best advice.
0:00:51 No corporate speak, no BS.
0:00:54 That’s right, NC17, our rated advice.
0:00:56 That’s why we’re here.
0:00:58 I have not read or seen these questions.
0:01:00 So let’s bust right into it, first question.
0:01:05 – Hey, Scott, my name is John
0:01:07 and I’m a recent college graduate based in Florida.
0:01:09 I’m pursuing a career in financial services,
0:01:11 specifically wealth management for households
0:01:14 with a net worth between one and $5 million.
0:01:15 Like many white-collar professionals,
0:01:16 I’m concerned about the impacts
0:01:19 that AI could have on my industry.
0:01:21 While I see AI as a valuable tool,
0:01:24 I worry that the chatbots could offer potential clients
0:01:27 a faster, more knowledgeable, and ultimately free service
0:01:30 posing a pretty big challenge for myself.
0:01:33 Wealth management has always faced issues
0:01:35 from road advisors, fee-cutting firms,
0:01:38 but fortunately, compliance has always saved us.
0:01:40 What advice would you offer a young professional
0:01:42 like myself to future-proof my business
0:01:44 against AI-driven disruptions,
0:01:47 all while continuing to grow and provide value to clients,
0:01:50 especially as a 20-something-year-old with a young face?
0:01:51 I appreciate your time.
0:01:54 – That’s a really thoughtful question
0:01:57 and I think kind of information-intensive
0:02:01 white-collar industries that, to a certain extent,
0:02:04 trade and complexity, there’s a lot of regulation,
0:02:07 there’s a lot of different assets, people have taxes,
0:02:09 it’s complex once you get above
0:02:11 any reasonable set of assets.
0:02:14 And so people want to feel security,
0:02:15 they want an absence of fear,
0:02:19 they want someone nice and young and attractive and bright,
0:02:22 such as you, to show up and actually,
0:02:25 to a certain extent, use as a bit of a disadvantage here,
0:02:26 but give them a sense of confidence
0:02:28 that they’re doing the right thing with their assets.
0:02:31 And in exchange, sometimes or many times,
0:02:33 people are willing to pay 1% to 2% of their assets.
0:02:36 My mom paid this guy 1.5% a year
0:02:38 to basically buy a bunch of shitty stocks for,
0:02:39 and I looked at it and said,
0:02:42 okay, this makes no sense, invest in Vanguard.
0:02:46 This guy can’t pick stocks, he’s some 65-year-old
0:02:48 sitting in a bad office somewhere in Las Vegas,
0:02:50 and he’s underperforming the market,
0:02:52 but he’s really expensive.
0:02:55 The majority of wealth managers in that way class
0:02:58 could be best described as expensive but bad.
0:03:00 They’re high EQ, they make you feel better,
0:03:01 they come over to your house.
0:03:05 Anyone who takes you to dinner or to a sports event
0:03:07 means their fees are way too fucking high.
0:03:09 You know who will never take you to a next game?
0:03:10 Vanguard.
0:03:13 And you are in kind of ground zero,
0:03:15 I think, unfortunately, for disruption around AI.
0:03:16 So what do you do?
0:03:17 First, let’s look at some data.
0:03:18 According to Brookings,
0:03:21 those in business and financial operations occupations
0:03:23 are at the third highest risk level for disruption
0:03:26 from large language models.
0:03:28 Additionally, Citigroup believes that over 50% of jobs
0:03:30 in the financial services industry
0:03:32 could eventually be replaced by AI.
0:03:34 Pew Research found that 62% of Americans
0:03:37 believe that AI will have a major impact on workers,
0:03:39 but just 28% believe that it will have
0:03:40 an impact on them personally.
0:03:42 Recent data suggests that AI adoption rates
0:03:44 are just 5% in some industries,
0:03:45 creating an enormous opportunity for those
0:03:49 who do decide to utilize the new technology.
0:03:52 So my kind of saying around this,
0:03:53 if you’re gonna go into this industry,
0:03:55 you have to go on with your eyes wide open,
0:03:57 and that is you’re gonna have to get to scale
0:03:58 within three to five years.
0:04:00 And that is if you’re just managing
0:04:05 a bunch of like 100,000, $500,000 million portfolios,
0:04:07 at some point, they’re gonna figure it out
0:04:09 and just go to Vanguard.
0:04:11 What you need to do is get to a certain amount of scale
0:04:14 such that you can charge low enough fees
0:04:15 such that quite frankly, you’re worth it.
0:04:17 And then what does it mean?
0:04:18 What is value?
0:04:20 It’s fees over the services you’re offering.
0:04:21 Or maybe it’s the opposite.
0:04:23 Anyways, you get my point.
0:04:26 And in money management, the bad news is,
0:04:29 it’s as difficult or as easy to manage 10 million
0:04:32 as it is a million, but the good news is,
0:04:34 it’s as easy to manage 10 million as 1 million.
0:04:37 So financial services is a lot
0:04:38 like being a real estate broker.
0:04:40 It’s a shitty business for the first 10 years.
0:04:42 It’s going to every fucking event.
0:04:43 It’s giving your card to people.
0:04:45 It’s doing a lot of free work.
0:04:46 It’s doing a ton of work and finding out
0:04:49 that no one has, they don’t really have assets.
0:04:51 But once you have a stable of clients,
0:04:53 it turns into a really good business.
0:04:56 Now, the first thing is you are going to have
0:04:57 to acknowledge the following
0:05:00 or really adopt the following as religion
0:05:01 if you want to be successful.
0:05:03 AI is not going to take your job.
0:05:07 Someone who understands AI is going to take your job.
0:05:09 And that is AI still hallucinates
0:05:11 and the majority of people still do not want to use
0:05:15 an AI Robo Advisor to figure out which funds
0:05:17 they allocate across, right?
0:05:19 Even if you, they decide to go all Vanguard,
0:05:22 there’s still some decisions to be made.
0:05:23 There are Robo Advisors,
0:05:24 but most people don’t want to do that.
0:05:27 You are also going to have to become exceptionally talented
0:05:29 around the integration of how to make money
0:05:30 and how to keep it.
0:05:32 Now, what do I mean by that?
0:05:33 Taxes.
0:05:36 I would say the majority of my value add,
0:05:38 Goldman Sachs manages my money,
0:05:39 but really they don’t manage my money.
0:05:42 What they do is they manage my personal finance.
0:05:44 What do I mean by that?
0:05:45 I have several entities.
0:05:48 They coordinate my lawyers when I’m creating LLCs.
0:05:49 They give me tax advice,
0:05:52 which is really the kind of value add.
0:05:54 And that is, I’ll say, okay,
0:05:57 I am thinking of buying this or I’m buying a home.
0:05:59 Should I put it in an LLC?
0:06:02 If I put it in an LLC,
0:06:05 it might trigger a increase in taxes
0:06:06 because the home gets reappraised.
0:06:09 But if I put it into an LLC,
0:06:11 I can depreciate it a 2% a year.
0:06:13 And if I hold on to it for two years
0:06:14 and make some money off of it,
0:06:16 it qualifies for 1031 exchange.
0:06:18 If you sound confused, trust your instincts.
0:06:19 It is really fucking confusing.
0:06:22 Keep in mind that essentially the tax code
0:06:25 has been weaponized by very wealthy people.
0:06:28 It’s gone from 400 pages, I think to 4,000.
0:06:30 I read somewhere it’s gone to 7,000.
0:06:32 And those additional pages are basically loopholes
0:06:34 for the rich or essentially an effort
0:06:37 to transfer wealth in the lower and middle income households
0:06:39 to the wealthy who have aggregated
0:06:41 a disproportionate amount of the spoils
0:06:43 over the last 40 years.
0:06:46 But in that complexity is your value add.
0:06:48 And that is you can understand the difference between,
0:06:50 all right, I’m gonna help you allocate your assets.
0:06:52 We’re gonna go into low cost funds,
0:06:54 but I’m gonna help you pick them and help you diversify.
0:06:57 I’m gonna do the hard work of understanding
0:06:59 where you’re too concentrated.
0:07:01 I’m gonna establish a relationship with you.
0:07:04 I’m gonna do a lot of work for you kind of off the clock.
0:07:07 And I’m really gonna think thoughtfully
0:07:10 and come to you proactively with different tax ideas
0:07:14 or ways to essentially become more tax efficient.
0:07:16 It was like Wayne Hizanga, the founder blockbuster
0:07:19 used to run those ads for the state of Florida
0:07:22 talking about Florida’s zero income tax
0:07:23 or zero state income tax.
0:07:25 And you used to say, it’s not what you earn,
0:07:26 it’s what you keep.
0:07:29 So to a certain extent, a financial advisor in my view
0:07:32 is gonna have less value add on how you make money.
0:07:33 How do you make money?
0:07:35 You diversify and you’re going to low cost index funds,
0:07:36 all right?
0:07:37 But how do you keep money
0:07:40 is understanding their specific personal situation
0:07:42 and how they figure out and navigate
0:07:45 the incredibly complex tax code.
0:07:47 And you’re gonna have to also be the one
0:07:50 to cut your own fees as their assets grow.
0:07:53 Ritholt’s management, my friend Barry Ritholtz
0:07:56 and his partner, Josh Brown of CNBC fame,
0:07:59 they run a, I wouldn’t even call it a hedge fund,
0:08:00 I’d call it a wealth advisory fund.
0:08:02 And as they have grown their assets,
0:08:05 they have lowered their fees and they are very thoughtful
0:08:07 and give personalized advice to their clients,
0:08:10 which Vanguard, they may claim to do it,
0:08:12 but they really don’t.
0:08:13 And as a result, people decide,
0:08:15 okay, Vanguard would be less expensive,
0:08:17 but these guys are worth it
0:08:19 because they know my personal situation,
0:08:20 they’re willing to meet with me,
0:08:23 they walk me through ideas, they’re proactive.
0:08:26 So you are gonna have to become an AI warrior, my friend.
0:08:28 You’re gonna have to figure out a way
0:08:30 to get people’s financial complexion,
0:08:32 upload their credit cards.
0:08:34 Christ, figure out a way, go to that app
0:08:36 where it tells them how many subscriptions they have.
0:08:37 The first thing we’re gonna do,
0:08:39 we’re gonna focus on saving your money.
0:08:41 Give me your taxes, I’m gonna,
0:08:43 and then you’re gonna upload it to different LLMs
0:08:45 and try and generate ideas for tax savings.
0:08:48 You are going to be an AI warrior.
0:08:49 This is what you want.
0:08:51 This is what you want.
0:08:52 When your competitor walks in
0:08:54 to pitch them on managing their money,
0:08:57 you walk in with a Panzertank.
0:08:59 And that Panzertank is knowledge,
0:09:00 it’s willingness to do good work,
0:09:02 understand their personal situation
0:09:04 and understanding of how it all dovetails
0:09:08 with the tax code, and you understand how to use AI.
0:09:09 That is your Panzertank.
0:09:11 And the guy next to you or the gal next to you
0:09:12 who shows up after you,
0:09:15 they’re showing up fighting on horseback
0:09:16 because you understand,
0:09:19 you’re one of the 5% that understands how to use AI.
0:09:21 Let me finish where I began.
0:09:23 AI is not gonna take your job.
0:09:27 Somebody who understands AI is gonna take your job.
0:09:28 Question number two.
0:09:30 – Hi, Scott, I’m a big fan.
0:09:32 I’m a 23-year-old living in suburban New York.
0:09:35 I work at a mid-size physical good supply company
0:09:36 and maintaining and developing
0:09:39 some of their warehouse and logistical operations software.
0:09:41 I’m curious about starting my own distribution type business
0:09:45 and I wanted to talk to real-life people about this.
0:09:48 What advice would you give to find and talk to actual people
0:09:49 in an industry that you’re curious about entering,
0:09:51 especially if you’re a little introverted
0:09:54 and scared of sounding stupid?
0:09:56 – So anonymous, so you’re a 23-year-old
0:09:59 and my understanding is you’re thinking about
0:10:01 starting your own type of distribution business.
0:10:04 I always thought, so I started my first business,
0:10:06 I’ve been starting business my whole life,
0:10:08 but essentially my entire professional career
0:10:10 has been entrepreneurship except for a two-year-senate,
0:10:12 Morgan Stanley, that I was awful at
0:10:14 and only confirmed that I should be an entrepreneur.
0:10:15 But anyways, a couple things.
0:10:17 One, the way you start a business,
0:10:20 I mean, it’s good that you’re talking to people
0:10:22 and I’m not suggesting you don’t,
0:10:24 but the way you start a business is by getting a client.
0:10:27 A mistake I have consistently made, consistently made,
0:10:31 I still make it, is believing that spending money
0:10:32 is building a business.
0:10:34 No, it’s not, it’s making money that builds a business.
0:10:37 So the best way to test this idea
0:10:40 is to see if you could get a client.
0:10:42 And I’m not sure, I don’t know about the competitive dynamics
0:10:45 here or the situation with your current company,
0:10:47 but I would try and find a client
0:10:49 or pitch a potential client.
0:10:52 Yeah, talk to people, get some advice.
0:10:55 If you’re an introvert and you aren’t comfortable selling,
0:10:57 then you need to either find somebody who can sell
0:10:58 and make them your partner
0:11:00 or you shouldn’t be an entrepreneur.
0:11:03 Let me be clear, entrepreneur is a synonym
0:11:06 for salesman or salesperson.
0:11:08 You know what being an entrepreneur is?
0:11:12 It’s getting out a big spoon every day and eating shit.
0:11:14 You’re constantly selling.
0:11:17 I’m not talking about just selling clients, selling investors.
0:11:19 The most selling I have ever done,
0:11:21 I always had good products at my firms
0:11:23 and I felt like more than selling, I was closing
0:11:25 ’cause I would create content marketing
0:11:30 to try and create content that we then get inbound leads.
0:11:31 I used to tell our sales team,
0:11:33 you’re not selling or closing
0:11:35 because we did a really good job of content marketing.
0:11:38 The biggest sell I ever did was trying
0:11:40 to find really talented people
0:11:42 and then convince them to join my firm
0:11:44 when they had offers from Google and Salesforce
0:11:46 or trying to convince people to stay
0:11:48 that we would get to a liquidity event
0:11:49 and they would get economic security with me
0:11:52 as opposed to see above going to fucking Metta
0:11:53 where they were awarded options
0:11:56 that were already $300,000 in the money,
0:11:58 you are always selling.
0:12:00 And if you are not comfortable with that
0:12:02 or you can’t get comfortable with that,
0:12:05 then you need to find a partner who is comfortable with it.
0:12:08 There are some people that are so good at what they do
0:12:11 that they can build a business without selling.
0:12:14 My landscaper is this really charming guy
0:12:16 who will bring me out and show me,
0:12:18 he’s very emotionally manipulative.
0:12:21 He’ll come out and show me this bougain via
0:12:24 that he’s helping us drape over our garage.
0:12:26 I absolutely love bougain via.
0:12:28 It reminds me of my childhood in Orange County
0:12:29 and my dad’s super into them.
0:12:32 And he just picked up on the fact that I love bougain via
0:12:34 so occasionally he drags me out and he shows me this thing
0:12:36 and he literally goes over and kind of hugs it
0:12:38 like he’s in love with it.
0:12:39 That is selling.
0:12:41 That is developing a relationship
0:12:45 with a professor/podcaster that has an affection
0:12:46 for bougain via.
0:12:49 If you’re not comfortable maintaining
0:12:51 those sorts of relationships,
0:12:54 you’re gonna have to find someone who is.
0:12:55 So absolutely go out and talk to people.
0:12:58 But again, the way you start a business,
0:13:02 what builds a business is revenues, not expenses.
0:13:06 And at 23, it sounds like you were doing incredibly well.
0:13:07 The other thing I would ask yourself
0:13:10 or maybe get a kitchen cabinet together and ask them
0:13:12 is would you benefit from another couple of years
0:13:15 experience at your current firm?
0:13:15 Are you learning?
0:13:17 Do you have senior level sponsorship?
0:13:18 If you have those things,
0:13:20 do you want to think about sticking around for a while?
0:13:22 Is there an opportunity to grow with that company
0:13:24 if they find out you’re thinking about leaving?
0:13:25 What always really upset me
0:13:27 was when there was young talented people who left
0:13:28 and I’d say, where are you going?
0:13:31 And I think, that is just the worst fucking job ever.
0:13:32 What are you doing?
0:13:33 And they think, well, I want to be in a position
0:13:34 where I can manage people.
0:13:36 I’m like, well, why didn’t you come and ask me?
0:13:38 I’d have you manage some people.
0:13:40 Is there an opportunity at your current firm?
0:13:42 Develop a kitchen cabinet.
0:13:44 Think about whether you might benefit
0:13:46 from staying a year or two years
0:13:48 and think about how you get that first client
0:13:50 and if you are not comfortable selling,
0:13:51 then you need to find someone
0:13:53 to bring in the organization pronto
0:13:54 that is comfortable selling.
0:13:56 ‘Cause that’s what it means to be an entrepreneur,
0:13:57 my brother.
0:14:01 But again, 23 thinking this way, you’re doing really well.
0:14:04 We have one quick break before our final question.
0:14:04 Stay with us.
0:14:10 We’re taking Box Media podcasts on the road
0:14:11 and heading back to Austin
0:14:13 for the South by Southwest Festival,
0:14:15 March 8th to the 10th.
0:14:16 What is real?
0:14:19 We’ll be doing special live episodes
0:14:20 of hit shows, including Pivot.
0:14:21 That’s right.
0:14:23 That dog’s going to the great state of Texas.
0:14:25 Where should we begin?
0:14:26 With Esther Perrell,
0:14:29 a Touch More with Sue Bird and Megan Rapinoe,
0:14:32 not just football with Cam Hayward and more
0:14:34 presented by Smartsheet.
0:14:37 The Box Media podcast stage at South by Southwest
0:14:40 is open to all South by Southwest badge holders.
0:14:42 We hope to see you at the Austin Convention Center soon.
0:14:46 Visit voxmedia.com/SXSW
0:14:47 to learn more.
0:14:50 That’s voxmedia.com/SXSW.
0:14:57 This week on ProfG Markets,
0:14:58 we speak with Mike Moffitt,
0:15:01 founding director of the University of Ottawa’s
0:15:02 Missing Middle Initiative
0:15:05 and a former economic advisor to Justin Trudeau.
0:15:07 We dive into the state of Canadian politics
0:15:10 and we get his take on the biggest challenges
0:15:11 facing Canada’s economy.
0:15:14 Canada’s economy is like three oligopolies
0:15:15 in a trench coat.
0:15:17 We have a lot of inequality that way.
0:15:21 We have high levels of market concentration
0:15:24 because we have this tension in Canada
0:15:26 where we want things to be Canadian.
0:15:28 We want Canadian ownership.
0:15:30 But when you do that, you create a moat.
0:15:33 And whenever you create barriers to entry,
0:15:36 you’re going to naturally create oligopolies.
0:15:38 You can find that conversation
0:15:41 exclusively on the ProfG Markets podcast.
0:15:45 – Welcome back, question number three.
0:15:47 – Hi, ProfG.
0:15:49 I’ve recently transitioned to academia
0:15:52 after spending about 25 years in industry.
0:15:54 While I truly enjoy my new roles
0:15:57 with teaching, student advising, and research,
0:15:59 I still enjoy staying connected to industry
0:16:02 through consulting and professional advising.
0:16:03 I’ve heard you talk about the importance
0:16:05 of becoming a domain expert in your field
0:16:07 and I was curious,
0:16:10 where do you see efforts best spent for maximum impact?
0:16:14 Should I focus on podcasting, writing, industry presentations
0:16:16 or any other options?
0:16:19 You seem to excel at doing all of these.
0:16:21 What do you think has the biggest impact
0:16:24 and what do you personally enjoy the most?
0:16:27 Lastly, I just wanted to say that I really appreciate
0:16:30 the insights and thoughts you put into your work.
0:16:32 Your perspectives are not only fascinating,
0:16:34 but also make me sound much more knowledgeable
0:16:35 than I really am.
0:16:37 I’d love to buy you a drink to thank you
0:16:39 the next time you’re in Colorado.
0:16:41 Looking forward to hearing your thoughts.
0:16:44 – So first off anonymous, you shouldn’t be anonymous.
0:16:47 You’re not saying anything that would threaten your job
0:16:48 and you sound like such a lovely guy.
0:16:51 And also you have more confidence
0:16:53 than I did when I was your age.
0:16:55 You’re able to express admiration for other people.
0:16:57 I had this fucked up notion of masculinity
0:16:58 when I was your age.
0:17:01 You sound like you’re 20s or 30s.
0:17:04 That if I was impressed, especially with another guy,
0:17:07 it somehow took away from how impressive I was.
0:17:12 I didn’t have the confidence to express admiration
0:17:14 or heat praise on other people.
0:17:17 So you’re already well ahead of the game
0:17:18 and you got a nice voice.
0:17:21 And it was, it sounds to me like you’re just set up
0:17:23 really well for success.
0:17:24 Now transitioning to academia.
0:17:30 So first off, I think academia is underrated as a career.
0:17:33 It is wonderful.
0:17:34 It attracts a lot of lone wolves
0:17:36 ’cause you can do a lot of stuff on your own.
0:17:38 There is some problems with academia right now.
0:17:40 One, it’s become morally corrupt
0:17:41 based on an exclusionary rejection
0:17:43 as bullshit culture of not letting in kids,
0:17:45 despite the fact we have the capital
0:17:47 to double, triple or quintuple our freshman class.
0:17:49 That’s another talk show.
0:17:52 And there’s too many old people who refused to leave
0:17:56 that were the man or the woman in gap one accounting
0:17:58 or understood the difference between black water
0:18:00 and blue water economics in 1978.
0:18:02 And now they’re 80 and won’t leave.
0:18:04 And basically just show up to faculty meetings
0:18:05 and they’re hugely disruptive.
0:18:08 I work with what I think is probably the best faculty
0:18:11 in America at NYU Stern.
0:18:16 And 10% of any faculty are just so inspiring.
0:18:19 These are people who give up a dramatic amount
0:18:22 of compensation ’cause they love teaching
0:18:24 and they are just so good at what they do
0:18:26 and their relentless pursuit of the truth,
0:18:29 especially in this age is just inspiring
0:18:32 and they’re great storytellers and they care about people.
0:18:34 Anyways, but the downside of academia
0:18:38 is there’s just a third of the people at any institution
0:18:41 that quite frankly just shouldn’t be there,
0:18:44 aren’t pulling their weight and because of tenure,
0:18:46 which is essentially a guild for the unproductive,
0:18:49 tenure is nothing but student debt in my viewpoint.
0:18:52 Anyways, I don’t know how I got here.
0:18:55 What mediums would be best for you?
0:18:58 You’ve got an amazing platform.
0:19:00 One thing I’ve really benefited from at NYU,
0:19:02 I say a lot of provocative, aggressive things.
0:19:05 I think without the halo of the NYU brand,
0:19:07 people might just think I was an asshole
0:19:10 or maybe a creative asshole or maybe an interesting asshole,
0:19:11 but mostly just an asshole.
0:19:13 But I think people take what I say more seriously
0:19:16 because I do try and show some fidelity
0:19:19 to the institution and to academia
0:19:22 by having a team of people that research things,
0:19:24 we fact check, we go over stuff,
0:19:27 we try and marinate in data.
0:19:29 I do have an approach to teaching.
0:19:32 Anyways, I do think it’s a very powerful platform.
0:19:34 So what mediums?
0:19:38 All strategy comes down to one thing.
0:19:43 What can I do or what can we do that is really hard?
0:19:46 That’s all strategy is.
0:19:50 What can we do that is really hard?
0:19:54 We have an amazing story about scale and e-commerce
0:19:56 or scale around streaming.
0:19:58 So we can raise so much cheap capital
0:20:01 that we’re gonna spend more money on warehouses and planes
0:20:03 or on original content.
0:20:05 We’re gonna spend $18 billion a year on original content
0:20:07 which is more than we spent on the entire film
0:20:09 or television industry the decade of the 80s.
0:20:11 That is really hard to do.
0:20:13 So they lean into their advantage
0:20:16 of just overwhelming the competition with capital
0:20:18 via great storytelling and access to cheap capital.
0:20:21 That is really hard to do.
0:20:22 You need to decide, all right,
0:20:24 what would be really hard to do?
0:20:25 And the way you figure that out
0:20:27 is you ask yourself, first,
0:20:29 what am I really good at?
0:20:30 Could I start a podcast?
0:20:33 And if I do a podcast, am I good at it?
0:20:34 Do I have the ability to get good guests?
0:20:36 Do I have a good voice?
0:20:38 Am I compelling in this medium?
0:20:40 Do I find that people wanna listen to me?
0:20:41 Do you write well?
0:20:43 Can you go on LinkedIn and start writing
0:20:45 about your specific domain
0:20:48 and immediately get people subscribing and following?
0:20:50 Are you really good on TikTok?
0:20:54 You wanna figure out what is your medium, right?
0:20:55 And the way you figure out what is your medium
0:20:57 is you pick one or two and say,
0:21:00 “I need to be in the top 10% in terms of followers.”
0:21:03 This is an assignment I give my class and brand strategy.
0:21:05 I tell them that they must pick a medium.
0:21:07 It can be threads, it can be acts,
0:21:08 it can be Twitter, it can be PowerPoint.
0:21:10 And then they need to figure out a metric
0:21:12 that says by the end of the class,
0:21:14 I’m going to be in the top desile.
0:21:16 And you can figure out those numbers.
0:21:18 What is the number of followers you need on Instagram,
0:21:20 on Reels, to be in the top desile?
0:21:23 And it’ll tell you, this is how many followers you need.
0:21:27 So you need to figure out what is your medium.
0:21:31 What I enjoy the most is writing because it’s the hardest.
0:21:33 But when you write something worthwhile, it moves people.
0:21:35 There’s something about the written word
0:21:37 that when it’s done well and you’ve taken the time
0:21:40 and the energy to fact check, to proof it,
0:21:42 to make it sound elegant, to have a good twist of phrase,
0:21:47 to make people feel something, it really resonates.
0:21:47 It sticks with them.
0:21:50 If I go on Morning Joe or The View and I kill it,
0:21:53 it gets a huge sugar high on YouTube.
0:21:56 And it’s fun and it’s rewarding.
0:21:59 But there’s nothing like writing something
0:22:01 that where you took the time, you were up,
0:22:03 you proofed it, you fact-checked it,
0:22:05 and it resonates and it moves people.
0:22:08 Moves their emotions or it highlights something
0:22:11 that other people were thinking but not saying.
0:22:15 That for me is what I want to say is the most enjoyable.
0:22:18 It’s the most rewarding because it’s the hardest thing to do.
0:22:20 So the first thing I ask, can you write well?
0:22:23 Oh my gosh, if you can write well,
0:22:25 your brand immediately says to people,
0:22:26 you’re smart and you’re educated,
0:22:28 which is a good chocolate and peanut butter,
0:22:30 not only academia but in a professional world.
0:22:31 Is that your medium?
0:22:33 Or are you really good at presentations?
0:22:35 Do you want to figure out a way to start speaking in groups?
0:22:38 Do you want to call people, conferences and say,
0:22:42 hi, I’m a professor of X, I want to come talk about this?
0:22:47 I didn’t get, 98% of my time on stage, I don’t get paid.
0:22:50 I’ve returned all my compensation to NYU
0:22:51 so they don’t pay me.
0:22:53 And the majority of the talks I gave
0:22:56 for the first 30 years of my career,
0:22:58 I wasn’t getting paid for, is that true?
0:23:00 Consulting, I guess I was getting paid a lot.
0:23:02 But I did a lot of free speaking gigs.
0:23:07 Now I charge 50K for a virtual 200K for an in-person
0:23:10 and 400K if I have to go to the Gulf or Asia.
0:23:12 I don’t get a lot of those but I do get some of those.
0:23:15 Now, I am boasting but there is a reason.
0:23:19 It is taking me 20 or 30 years of deciding
0:23:23 that okay, speaking is probably what I am best at
0:23:25 and I’m gonna get fucking amazing at it.
0:23:27 I have a team of people pulling together
0:23:30 150 slide presentations.
0:23:31 I go through it like it’s a Broadway show.
0:23:35 I rehearse it, I think of video, I think of sound,
0:23:37 I think of emotional highs and lows.
0:23:39 And every time I give one of these presentations
0:23:42 or talks and I do about 40 or 50 a year,
0:23:44 I immediately right afterwards go back to the team
0:23:47 and say, we hit a narrative arc here
0:23:48 that just didn’t feel right.
0:23:51 This joke didn’t land, this was really good.
0:23:53 Let’s get data on this, let’s compare this to this.
0:23:55 It’s like I’m putting on a Broadway show or a movie
0:23:58 but every time I run the movie I get the audience’s reaction
0:24:01 and I get to re-cut the film, right?
0:24:04 I’m okay on Threads or Blue Sky.
0:24:06 I like to think I’m a good podcaster.
0:24:09 I’m not sure I’m great.
0:24:11 I like writing, I’m good, I’m not sure I’m great
0:24:15 but I aspire to be world-class in front of an audience
0:24:20 and it lends itself really well to my strengths.
0:24:23 The larger the crowd, the more charming and engaging I am.
0:24:24 I’m not very good one-on-one.
0:24:27 One-on-one I come across as insecure yet aloof.
0:24:29 I’m not good on the phone.
0:24:32 And you wanna figure out what mediums you’re not good at
0:24:33 and then find one where you think,
0:24:35 could I be the best in the world
0:24:37 and really lean into that medium?
0:24:40 In terms of the content, in terms of the content,
0:24:44 the specific crowds out the general.
0:24:45 I was in the field of brand strategy.
0:24:47 That’s a pretty specific area.
0:24:49 It wasn’t design, it wasn’t marketing,
0:24:51 it wasn’t media planning.
0:24:54 It was managing your brands as if they were assets,
0:24:57 like a portfolio in a mutual fund.
0:24:59 And then I went even more specific.
0:25:00 I started collecting data
0:25:04 on the digital footprint of luxury brands.
0:25:06 Not the digital footprint of all consumer brands
0:25:08 but the digital footprint of luxury brands.
0:25:11 And I started doing rankings out of NYU
0:25:14 on which luxury brands were the most digitally competent.
0:25:15 And I parsed it into five areas.
0:25:18 Genius gifted, average challenged and feeble.
0:25:21 By the way, rankings are incredibly powerful
0:25:23 when they come out of an academic institution
0:25:25 because you have to do the work.
0:25:27 You have to fact check the shit out of it
0:25:28 and then you put it out.
0:25:30 And wow, and the thing about a ranking is,
0:25:34 it’s not about who comes first, it’s about who comes last.
0:25:35 And that’s what I was willing to do.
0:25:38 Most rankings from institutions list the top 10
0:25:39 and give out awards.
0:25:41 No, I was gonna do a ranking that said,
0:25:43 okay, whoever it was, David Ehrman,
0:25:45 you’re literally the worst brand and jewelry
0:25:47 as it relates to digital footprint.
0:25:51 Anyway, go very, don’t be afraid to go very niche,
0:25:54 pick your medium and commit to being in the top 10,
0:25:57 if not the top 1% and don’t be afraid
0:25:59 to switch mediums in terms of your focus.
0:26:01 But you do create a flywheel.
0:26:05 I do all of it because I find it’s reinforcing.
0:26:08 Long-winded way of saying the specific crowds
0:26:10 at the general, find your medium,
0:26:12 commit to being in the top 10% within a year,
0:26:15 the top 1% within two to three years.
0:26:16 Don’t be afraid to switch mediums.
0:26:20 But my friend in academia, if you write well,
0:26:22 that is probably gonna be your go-to.
0:26:23 That is the hardest thing I do.
0:26:25 It is the most rewarding and quite frankly,
0:26:28 I believe it’s the most impressive.
0:26:31 Also, also in 50 years, it’s unlikely people
0:26:32 are gonna be watching your videos.
0:26:35 It’s unlikely people are gonna see your social,
0:26:38 but your kids will likely read what you have written.
0:26:42 And I find that nice to think about and very comforting.
0:26:44 Congratulations on your transition to academia.
0:26:46 I think it is a wonderful way to make a living.
0:26:48 Thank you Anonymous from Colorado.
0:26:51 That’s all for this episode.
0:26:52 If you’d like to submit a question,
0:26:53 please email a voice recording
0:26:55 to officehours@proptimedia.com.
0:26:58 Again, that’s officehours@proptimedia.com.
0:27:01 (upbeat music)
0:27:08 This episode was produced by Jennifer Sanchez.
0:27:10 Our intern is Dan Chalon.
0:27:12 Drew Burroughs is our technical director.
0:27:13 Thank you for listening to the PropG Pod
0:27:15 from the Box Media Podcast Network.
0:27:18 We will catch you on Saturday for No Mercino Mouse,
0:27:20 as read by George Hahn.
0:27:22 And please follow our PropG Markets Pod
0:27:24 wherever you get your pods for new episodes
0:27:26 every Monday and Thursday.
0:27:29 (upbeat music)
Today, we’re wrapping up our special two-part series all about careers—navigating them, advancing them, maybe even surviving them.
In this episode, Scott offers guidance to a wealth manager concerned about AI disruption, shares advice for an aspiring entrepreneur, and closes with insights on becoming a true domain expert in your field.
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