Author: The Knowledge Project with Shane Parrish

  • The Storytelling Expert: How to Speak so That Everyone Listens (Matthew Dicks #202)

    AI transcript
    0:00:06 You’ve probably been telling not so good stories all your life and you’ve probably heard people
    0:00:12 who tell amazing stories all the time. It turns out that’s not actually something that people are
    0:00:18 born with. It’s just strategic. And if you become a little more strategic, you can be one of those
    0:00:23 people, right? Now we want to know. Now we’re curious. We’re not giving anything away. We’re
    0:00:29 not indicating the end, but we’re finding something that’s going to like appeal to people
    0:00:33 in a real emotional way. We’re going to identify a need they have. And if we identify an appropriate
    0:00:44 need, then we’re going to grab our audience and they’re going to pay attention.
    0:00:58 Welcome to the Knowledge Project, the bi-weekly podcast exploring the powerful ideas,
    0:01:03 practical methods, and mental models of others. In a world where knowledge is power,
    0:01:07 this podcast is your toolkit for mastering the best of what other people have already figured
    0:01:12 out. I’m your host, Shane Parrish. Before we dive in, I have a quick favorite to ask. If you’re
    0:01:17 enjoying the show and listening on Apple Podcasts, Spotify, or any other platform, please take a
    0:01:21 moment and hit the follow button now. The more followers we have, the better guests we can bring
    0:01:26 on to share their knowledge with you. Thank you. If you want to take your learning to the next level,
    0:01:32 consider joining our membership program at fs.blog/membership. As a member, you’ll get my
    0:01:38 personal reflections at the end of every episode, early access to episodes, no ads including this,
    0:01:44 exclusive content, hand edited transcripts, and so much more. Check out the link in the show notes
    0:01:49 for more. My guest today is Matthew Dix, who is perhaps the world’s best storyteller. I’m not
    0:01:54 kidding. He’s won nearly every major storytelling competition. If anyone has a recipe for telling
    0:02:00 better stories, it’s him, and I want it to learn from the master. In this episode, you will discover
    0:02:05 lessons on finding, crafting, and telling stories that connect you to other people, stories that
    0:02:10 will make them believe in you and trust you and compel them to want to know more about you and
    0:02:15 the things that you care about. Steve Jobs said the most powerful person in the world is the storyteller,
    0:02:20 but most of us make common mistakes that are easily correctable. At the end of listening to
    0:02:25 this episode, I guarantee you’ll be more effective, entertaining, and thoughtful about the stories you
    0:02:41 tell. It’s time to listen and learn. There are too many podcasts and not enough time. What if you
    0:02:46 could skip the noise and get just the insightful moments, even from shows you didn’t know existed?
    0:02:52 That’s what Overlap does. Overlap is an AI-driven podcast app that uses large language models
    0:02:58 to curate the best moments from episodes. Imagine having a smart assistant who reads through every
    0:03:04 transcript, finds just the best parts, and serves them up based on whatever topic you’re interested
    0:03:11 in. I use Overlap every day to research, guess, explore, and learn. Give it a try and start discovering
    0:03:18 the best moments from the best podcast. Go to joinoverlap.com. That’s joinoverlap.com.
    0:03:24 This is an ad from BetterHelp. As kids, we were always learning and growing,
    0:03:30 but at some point as adults, we tend to lose that sense of curiosity and excitement. Therapy can
    0:03:34 help you continue that journey because your back-to-school era can come at any age,
    0:03:38 and BetterHelp makes it easy to get started with affordable online therapy you can do from
    0:03:44 anywhere. Rediscover possibility with BetterHelp. Visit BetterHelp.com to learn more.
    0:03:51 That’s BetterHELP.com. This episode is brought to you by Dyson On Track. Dyson On Track headphones
    0:03:56 offer best-in-class noise cancellation and an enhanced sound range, making them perfect
    0:04:01 for enjoying music and podcasts. Get up to 55 hours of listening with active noise-cancelling
    0:04:07 enabled, soft microfiber cushions engineered for comfort, and a range of colors and finishes.
    0:04:13 Dyson On Track headphones remastered by fromdysoncanada.ca. With ANC on,
    0:04:16 performance may vary based on environmental conditions and usage, accessories sold separately.
    0:04:21 What’s the difference between a good story and a bad story?
    0:04:25 I think we can start by thinking about what is a story and what isn’t a story because most people
    0:04:32 don’t tell stories. Most people think of a story as some stuff happened over the course of time,
    0:04:36 and now I’m going to tell you about that, usually chronologically, and that will amount to a story.
    0:04:41 And that really is just reporting on your life, and no one actually wants you to report on your
    0:04:46 life other than maybe your mother and your spouse might be required to listen. It’s just a simple
    0:04:51 accounting of your day or your week or your month, and that’s not interesting and it’s not a story.
    0:04:57 So a story is about change over time. Usually it’s sort of a realization, like I used to think
    0:05:01 one thing and now I think another thing. That’s most stories, sometimes they’re transformational,
    0:05:05 meaning I once was one kind of person, then some stuff happened and now I’m actually an
    0:05:09 authentically different kind of person. But if you’re just doing that, you’re better than most
    0:05:13 people. That sort of is the difference between a bad story and a good story is what is a story
    0:05:18 and what is not a story. Once we get to the difference between sort of a well-told story or
    0:05:23 well-crafted story and a one that is not as well-crafted, we get into things like the acknowledgement
    0:05:29 that no one wants to hear anything you ever have to say unless you give them a reason to listen.
    0:05:34 And there are people who tell stories that don’t sort of have that fundamental belief as part of
    0:05:39 their bone marrow. And the more you believe that, the more you believe that I must entertain
    0:05:45 while speaking, delivering content, showing data, delivering a keynote, the more you believe that
    0:05:51 no one wants to hear anything I have to say unless I’m relentlessly giving them a reason to listen,
    0:05:56 that’s really the difference between someone who is going to be appreciated and remembered and
    0:06:01 impactful and someone who will sort of get lost in the crowd. How much of the difference boils
    0:06:04 down into thinking about the story you’re going to tell beforehand. And then there’s like this
    0:06:08 game where you’re pretending to sort of like ad-lib it on the spot. And the listener is like
    0:06:12 pretending that you’re ad-libbing it on the spot because they want that too. They want to believe
    0:06:16 that versus I haven’t thought about this before and I’m just going to spew the first thing out of
    0:06:21 my mouth. Right. You’re the first person other than me I’ve ever heard refer to it as a game.
    0:06:26 I say we play a game with our audience. They pretend that we’re making it up and we pretend
    0:06:30 that we’re making it up. When the truth, I think for the best storytellers lies somewhere in the
    0:06:35 middle, which is to say you probably should never memorize anything that you say. I’ve never memorized
    0:06:40 the story or speech that I’m going to deliver, but what I say is we remember them. Meaning we
    0:06:44 understand the beats, we understand what’s going to happen, but if I was to tell you a story now
    0:06:48 and then tell you a story five minutes later, the sentences are absolutely going to be different,
    0:06:52 even though the events, the dialogue, the descriptions will all be there in some way.
    0:06:58 But I think that’s sort of the game we play. The best game players stand in the middle and say,
    0:07:01 I know what I’m going to say, but I don’t know exactly how I’m going to say it. And that allows
    0:07:06 you to read the audience and figure out is this landing? Do I need to pivot right now? Do I need
    0:07:10 to pull an anecdote out of my pocket? You know, I always walk around with what I say is five
    0:07:15 anecdotes that if I feel like I’m losing the audience, I can throw that out and grab them back
    0:07:20 and hold them for a while. If you’re overly prepared, you’re sort of trapped in your content
    0:07:23 and you’re just going to be delivering it. I often call them word callers. If you’ve memorized
    0:07:27 your story, really, you’re just a word caller. You’ve just memorized a series of words and hopefully
    0:07:32 they’ll come out properly. And maybe you can artfully do it in a pretend acting way, but the
    0:07:36 best performers sort of know what they’re going to say, but not exactly how. And that’s, you can
    0:07:41 always tell that you can tell it because their talk feels like it’s just for you because you can
    0:07:47 look at someone and you can sort of riff on what is happening in the room. I was recently speaking
    0:07:50 somewhere and someone picked up their phone and started looking at their phone. And in the middle
    0:07:56 of my speech, I stopped and I said, “I really hope your kid is on the way to the hospital right now.”
    0:08:01 And he was like, “Didn’t get to school? I’m just making sure that.” And it was a big laugh,
    0:08:05 but I wouldn’t have been able to do that if I was a word caller. You don’t want to be overly prepared.
    0:08:08 What’s the difference between a story and an anecdote then?
    0:08:12 So an anecdote doesn’t have to have change over time. It’s essentially one of those,
    0:08:17 “Hey, this funny thing happened to me. Isn’t this crazy?” But it tends not to linger.
    0:08:21 You know, a story ideally is the kind of thing that when I tell it to you,
    0:08:25 you’re thinking about it for days, weeks, months, or maybe for the rest of your life. Whereas an
    0:08:30 anecdote is you sit down and you have beers with your buddies and something crazy happened on the
    0:08:35 golf course. You know, something happened in the airport and you tell them it and they all laugh,
    0:08:39 but it’s not the kind of thing they want to go and repeat to someone. They’re not going to
    0:08:43 remember it. I often think of anecdotes as cotton candy. It’s like delicious in the moment and
    0:08:49 lovely, but you don’t really remember your cotton candies, but you remember the best meals of your
    0:08:52 life. Stories are the best meals of your life, the ones you reflect back and go, “I remember the
    0:08:56 restaurant. I remember who I was with. I remember what I ordered.” That’s the story.
    0:08:57 Because you’re connecting to an emotion?
    0:09:01 Ideally touching their hearts and their minds. If I tell you an anecdote about my son,
    0:09:07 we’re going to laugh. We’re going to understand his humanity even a little bit. You might even
    0:09:11 reflect on my humanity, but you’re not going to be sort of thinking about it later on because
    0:09:16 I’m not looking to land something in your heart and mind. I’m not looking to connect to your
    0:09:22 life experiences. When I tell a story, I’m not hoping that you are thinking that once happened
    0:09:28 to me. What I’m hoping is you’re thinking, “I once felt that way. I once thought that way,
    0:09:31 or maybe someday I could feel or think that way.” That’s the goal. That’s sort of that
    0:09:36 understory that we’re always looking to tell. Before we get into more of a crafting a story,
    0:09:38 maybe it would help to have an example of a story.
    0:09:41 Oh, sure. Should I tell you a story?
    0:09:48 Yeah. Well, the one I like to tell, I mean, for business people, I’m standing behind my school
    0:09:52 where I teach. I’m a fifth grade teacher. I’m standing in front of this enormous pile of fall
    0:09:57 leaves and they’re quivering. There’s a little boy inside the leaves and his hand emerges and he’s
    0:10:01 got a metal object in his hand. He looks at me. His head pops out. His name is Jamie. He says,
    0:10:05 “Look what I found.” He’s shaking this metal object. I say, “Wow, look at it.” He says, “Yeah,
    0:10:11 it’s a spoon.” It’s just a kitchen spoon. It fell out of a lunchbox yesterday or 10 years ago.
    0:10:15 It’s migrated to the bottom of this pile. Now, Jamie, this little red-headed boy, has it in
    0:10:20 his hand. I tell Jamie, “That’s not just a spoon, Jamie. That’s the spoon of power.” The moment
    0:10:25 that I declare it to be the spoon of power, Jamie knows I must have it. I know Jamie knows this
    0:10:30 because he just starts running. He doesn’t say a word. He just sprints because he knows his crazy
    0:10:34 teacher. We’ll now chase him down for the spoon and he’s not wrong. I’m responsible for like 100
    0:10:39 kids. I have to keep them safe, keep them secure. I don’t care about any of them anymore. It’s a
    0:10:44 red-headed boy and a spoon that I must now have. And for 18 minutes over the course of this recess,
    0:10:50 I hunt this boy down. I chase him across a field, up a slide, down the other slide, through the woods.
    0:10:55 18 minutes later, he still has the spoon in his hand. I can’t believe it. I legitimately tried to
    0:10:59 catch a 10-year-old and I could not. But he’s in my class, so it’s fine. I’ll get him eventually.
    0:11:03 He’s a 10-year-old boy. He’s focused now on the spoon, but he has the attention span of like a
    0:11:07 mulberry bush. He’s going to forget it in a minute and I’m going to grab it. So I’m teaching math.
    0:11:11 I’m writing equations on the board. This kid, he’s put the spoon on the corner of his desk,
    0:11:16 like to dare me to get it. You know, it’s just out of my reach. So I’ve got one eye on the board,
    0:11:21 one eye on him in the spoon. He’s got one eye on his journal, one eye on the spoon. We’re in this
    0:11:24 like standoff. And then I’m reading. I’m sitting on a stool. I’m reading a book. He’s still got
    0:11:28 the spoon right there. I’ve got one eye on the book, one eye on the spoon. He’s got one on me,
    0:11:31 one eye on the spoon. If he’d ever been this focused in his life, he’d like cure cancer.
    0:11:36 I’ve never seen him so focused. But he’s like me. He’s a writer. He loves to write. So at the end
    0:11:40 of the day, when we write, his head always falls onto his arm. You know, the strokes of his pen
    0:11:44 get long. He’s going to get lost in his story and that’s the moment I’ll strike. I watch it happen.
    0:11:49 I just wait. See the little red head go down, lands on his arm. I sneak up the front aisle.
    0:11:53 I reach over to grab the spoon and it’s not there. And he turns to me and he says,
    0:11:57 “Did you really think I was just going to leave it there for you?” And I lose my mind.
    0:12:01 Like I start threatening the class. I turn to the right. Like, where’s the spoon? The girl says,
    0:12:05 leave us alone. We’re trying to get our work done. Turn to the left. Where’s the spoon? The boy says,
    0:12:08 why are you bothering me? I’m trying to be a good student. They all know where it is. They’re all
    0:12:13 conspiring against me. Then the bell rings. Jamie’s out of his seat. He runs to get his coat and he
    0:12:18 swings by and he pulls the box of books out in the library marked S. He reaches inside and he says,
    0:12:24 “I filed it under S for spoon.” And he’s out the door. I can’t believe that I legitimately tried
    0:12:28 to get a spoon from a 10-year-old kid and I could not do it. So the next day he comes in,
    0:12:32 he has the spoon on a chain around his neck. And he’s swinging it around and I say,
    0:12:36 “How did you?” And he said, “My dad drilled the hole. My mom gave me the chain.” And he’s walking
    0:12:41 around going, “Oh, it’s a spoon of power, Mr. Dix. The spoon of power.” And as bad as I am,
    0:12:47 I’m a terrible person sometimes. Even I can’t tear it from the neck of a 10-year-old. So
    0:12:52 all week he tortures me with this. And then Thursday comes. It’s time for our weekly math test.
    0:12:57 It’s time for Mackenzie to lose her mind because someday Mackenzie might get a problem wrong and
    0:13:00 that will be the end of the world for Mackenzie. So every Thursday I have to like build her up.
    0:13:04 Mistakes are valuable. It’s okay, Mackenzie. You might get one wrong. And she’s sort of
    0:13:09 falling apart as she does. And then Jamie’s there and he takes the spoon off and he says,
    0:13:15 “Maybe this will help.” And he puts it around Mackenzie’s neck and it’s the best math test
    0:13:21 Mackenzie has ever taken in her life. Somehow this spoon on her neck calms her down. Three days later,
    0:13:25 David’s grandfather passes away. When David comes back to school, Jamie’s by the door waiting for
    0:13:30 David. When he walks in, puts the spoon on David’s neck and says, “I think you need this today.” And
    0:13:36 he did. For the rest of the year, every single time a kid is in trouble, in any way whatsoever,
    0:13:40 that spoon finds their way on their neck. They forget their homework. They have to walk over to me,
    0:13:44 face the music we call it. They walk over with that damn spoon on their neck. They get in trouble
    0:13:48 with the principal. They gotta make the long walk down the linoleum hallway. They make the long walk
    0:13:53 with the spoon. They get bullied on the bus on the way to school. When they go home that day,
    0:13:57 they go home with the spoon. Every single time it makes the kids’ days better. So the last day
    0:14:00 of school, I gather all my kids on the floor in front of me. It’s the last time we’re going to be
    0:14:04 together as a family. And they really are a family. We get to know each other in really
    0:14:09 meaningful ways. And so I tell them, “Say whatever you want. Tell us what you’re feeling. We’re
    0:14:14 going to have to say goodbye now.” So Jamie stands up and he walks over to me. He takes the spoon off
    0:14:18 and he tries to give it to me. And I say to Jamie, “No.” I say, “There was a day back in October
    0:14:23 when I wanted that spoon badly. And had I caught you, I would have fried it from your little fingers.
    0:14:29 But you managed to keep it and do this amazing thing with it. I just can’t believe what you’ve
    0:14:35 done. It’s your spoon.” And Jamie says, “No.” Jamie says, “The magic of the spoon only works in my
    0:14:38 classroom. He tells me I need to take it so that next year when kids are in trouble,
    0:14:44 I can give them the spoon like he has this year.” And then he pulls this little orange chair up
    0:14:49 alongside me so he can get up to eye level. And he takes the spoon off. And for the first time,
    0:14:55 I get to wear the spoon of power. The 2020-2021 school year was the hardest I’ve ever taught in
    0:15:00 my 26 years of teaching. The pandemic. We went right back to school in September in masks and
    0:15:04 social distancing. And everyone was afraid. And lots and lots of people got sick.
    0:15:11 Kids got sick. Parents got sick. We lost grandparents. My wife, who’s a kindergarten teacher, got very
    0:15:16 sick. My own children got sick. And I used that spoon more often that year than I’ve ever used
    0:15:20 it in my life. Every day, people were wearing that spoon. And for the first time in my life,
    0:15:25 my colleagues were wearing a spoon of power to get through the day. And as hard as it was,
    0:15:28 there’s the best year of teaching I’ve ever had, the most important year I will ever teach.
    0:15:34 But I’ve always felt like I was the luckiest teacher in America. Because I have that spoon.
    0:15:39 I’ve had it for 16 years. It’s literally in that bag right there. I carry with it.
    0:15:46 I carry it with me everywhere I go. It’s weirdly the most powerful teaching tool I have had and
    0:15:52 will ever have. It is this thing that I put on a kid’s neck or an adult’s neck. And suddenly,
    0:15:59 they feel better. It’s magic. It really is the spoon of power. And so I like to tell that story to
    0:16:04 especially business people. Because essentially, what I do is I take something that they have at
    0:16:09 least eight to 12 of in their kitchen, a simple spoon that they don’t see is very valuable. And
    0:16:14 suddenly, it becomes something incredibly meaningful. The first time I gave that talk,
    0:16:20 that story, I did it as a series of stories during the pandemic, actually, at a college in
    0:16:25 Western Massachusetts. And it was still during the pandemic, everyone’s masked, except for me,
    0:16:30 and everyone’s social distanced. And at the end of the event, I’m a novelist and I write books.
    0:16:33 So I often have a table and there’s books and there’s a bookstore and I sign the books and
    0:16:37 things like that. But we weren’t going to do it because of the pandemic. So after I finished
    0:16:41 speaking that line formed in the aisle and I had to get back on the microphone and say,
    0:16:46 “I’m sorry. We’re not going to sign books tonight. Go home.” And most of the people
    0:16:50 in the line, they weren’t there to buy a book. They wanted to touch the spoon.
    0:16:57 Grown-ass adults who had Doritos and Netflix and pillows at home in the middle of a pandemic,
    0:17:02 wearing a mask, chose to line up and touch a spoon that they definitely have 8 to 12 of
    0:17:07 in their kitchen. And that’s what we have to do. When we tell a story about something like a spoon,
    0:17:12 something as simple as that, it suddenly becomes not a spoon anymore. And the better we are at
    0:17:19 telling stories about ourselves, the people we love, the products we make, the services we offer,
    0:17:24 all of those things, the more we are able to tell excellent stories about those things,
    0:17:30 the more we’re able to infuse those things with whatever we want them to be infused with.
    0:17:32 That’s a great story. I like that story.
    0:17:36 And I feel the emotional roller coaster as you’re telling it and I remember reading it in your book
    0:17:42 too. And I feel the ups and downs and I’m running there with you. And one of the words that you
    0:17:47 used earlier was beat. So I’m wondering, walk me through the architecture of that story and what
    0:17:52 makes it so effective. Sure. I mean, the first thing before I sort of talk about the structure
    0:17:58 is the idea that it doesn’t contain very many adjectives. People often think of stories as
    0:18:02 an attempt to describe something when actually nobody ever wants to know what anything looked like,
    0:18:08 unless it’s relevant to a story. What people really want is to know what you felt, what you said,
    0:18:12 and what you did. And so if you’re going to describe something, you better make sure that
    0:18:18 there’s a reason for it to be described. What I believe is leveraging the imagination of audiences.
    0:18:23 So I said to you, I’m standing behind my school, the school where I teach, but that’s all I said.
    0:18:26 I know that you know what that looks like. You don’t know what my version of it looks like,
    0:18:30 but that doesn’t matter to me. Weirdly, some people get interested in that,
    0:18:36 but you should not. Nobody cares about what anything looks like. Very similitude is not
    0:18:41 relevant in storytelling. When I say we go into my classroom to teach, I say classroom and I know
    0:18:44 you have a classroom in your mind. Now, my classroom definitely doesn’t look like yours,
    0:18:49 because my classroom has a stage with lighting and sets, because I built a theater into my
    0:18:53 classroom, because I’ve been there for 23 years. It doesn’t look like any classroom we’ve ever seen,
    0:18:58 but I don’t want you to see that classroom. I want you to see the one that you can already
    0:19:03 see in your mind. So when people say to me, how do you make the stories seem so real to me,
    0:19:08 I tell them I don’t describe anything. Instead, I choose words that I know already exist in your
    0:19:13 mind. I choose those images, and I just extract them and make use of them. So that’s important
    0:19:17 always, because I think people over-describe. And the tricky thing is we don’t have a lot of bandwidth
    0:19:22 to work with. If you say in the beginning of a story, this beautiful woman walks in the room,
    0:19:28 and her eyes are a piercing blue, those blue eyes had better be relevant in the story at some point,
    0:19:34 because you’ve just stolen some of my bandwidth, so that I have to track those blue eyes and remember
    0:19:38 them throughout the story. And I’ve never heard of a story where eye color is relevant, except for
    0:19:44 Toni Morrison’s The Bluest Eye. And yet we describe eye color all the damn time, which really is just
    0:19:49 sort of degrading the audience’s ability to hear the rest of the story, because we’re giving them
    0:19:54 a job to do. Remember this, remember this, remember this, I’m leveraging imagination throughout that
    0:19:59 entire story. But in terms of what I’m thinking about for the architecture, I’m always thinking about
    0:20:05 the scenes that I’m going to tell. So scenes are predicated on location. So if I think about that
    0:20:09 story, if I’m going to remember it, rather than memorize it, I’m going to know I’m going to be
    0:20:13 on the playground, and I’m going to chase Jamie, and I’m going to wrap him down the playscape and
    0:20:16 through the woods, but he’s going to keep the spoon. That’s the first scene. And that’s what I have
    0:20:20 to get out. And it might come out better one time than the other, but that’s essentially the goal.
    0:20:24 And then my second scene is I’m in the classroom, and I know I’m going to teach math, and then I’m
    0:20:28 going to teach reading, and then I’m going to teach writing, because that’s what I do. And I know
    0:20:33 each time he’s going to be daring me to grab the spoon, but I’m not going to get it. So that’s
    0:20:37 sort of scene two. Scene three is the next day. He comes in with a spoon of power on his neck,
    0:20:43 makes me crazy, right? Scene four is Thursday, Mackenzie, the math test. Scene five is David,
    0:20:48 his grandfather passed away. Scene six is a montage of three things. I know I’m going to say,
    0:20:52 kids who forget their homework, kids who go to the principal and kids who ride the bus, that’s
    0:20:56 specifically structured to give you three different locations and three different kinds of problems
    0:21:00 that kids have. All were real, but I could have chosen from a thousand different times that Jamie
    0:21:06 gave that spoon out. I strategically chose for that reason. The next scene is the last day of school.
    0:21:10 Jamie tries to give me the spoon. Actually, what I tell you, because I’m preserving surprise,
    0:21:14 Jamie tries to give me the spoon. I used the word tries really specifically,
    0:21:17 because I don’t want you to think I’m going to get the spoon. I don’t think I’m going to get
    0:21:21 the spoon either. I’m rejecting the spoon thinking there’s no way I’m taking this spoon from your
    0:21:26 kid. And then he forces it upon me because I want you to be as surprised as I am. And then the last
    0:21:31 scene is sort of that pandemic explanation about what that year was like. But that’s what I’m thinking
    0:21:36 about in terms of remembering the story. And then to maintain entertainment throughout it,
    0:21:42 I’m always thinking stakes, suspense, surprise and humor. Those are sort of the four Mount Rushmore
    0:21:47 ways to maintain interest regardless of what you’re doing. Whether you’re telling a story like what
    0:21:53 I’ve just done or I’m working with a marketing team on a deck that they’re building and it is
    0:21:57 completely absent of stakes, suspense, surprise and humor, which is why nobody ever pays attention
    0:22:02 to anything anyone ever does. Because instead of being entertaining, we’re trying to be informative.
    0:22:07 When informative is important, but only if people are actually listening. And that first part,
    0:22:10 how we’re going to get people to listen is the one nobody ever pays any attention to. They somehow
    0:22:15 think that their information is going to be interesting to people. The world is filled with
    0:22:20 information. The internet exists. You’re competing against every bit of information that has ever
    0:22:25 existed on the planet. So you’d better give me a reason to listen. So I’m always thinking of that
    0:22:31 throughout that story. Constantly asking myself, do I have stakes? Is there suspense? Am I preparing
    0:22:36 for a surprise? And is there a place where I can drop in some humor? So you mentioned keeping a
    0:22:40 storytelling compelling is sort of like there’s elephants, backpacks, breadcrumbs, hourglasses,
    0:22:45 crystal balls and humor. You’re well versed. Yeah, that’s pretty good. Let’s go through each of those
    0:22:49 individually and sort of like what are they and why are they important for the architecture of a
    0:22:54 story in terms of keeping people listening. Like almost on the edge of their seat. What you’ve
    0:22:59 identified is sort of what I call the different versions of stakes in a story. The elephant is
    0:23:04 sort of the most important one. It’s essentially what has grabbed the audience’s attention initially.
    0:23:08 It doesn’t actually have to be what the story’s about. But oftentimes people begin a story without
    0:23:12 anything interesting that’s going to grab the audience. A stake is essentially what are we worried
    0:23:17 about? What are we wondering about? Why are we rooting for the protagonist? Why are we not rooting
    0:23:21 for the protagonist? It’s the thing that makes us want to hear the next sentence. An elephant is the
    0:23:27 idea of here’s a thing that you should care about. And the story I just told you that here’s a thing
    0:23:32 is there’s a boy with a spoon and Matt wants it. The stake is will he get the spoon? We know that’s
    0:23:37 not what the story is actually about, but it gives the audience an initial thing to be thinking about.
    0:23:43 In movies, we often get a trailer. So if you see the movie trailer, the stakes are already laid out.
    0:23:46 And oftentimes they’re laid out. Anyway, if I say let’s go to a romantic comedy, we know what the
    0:23:50 stake is. Two people are not in love and eventually they will be in love. So we know what those
    0:23:55 stakes are. But when I open my mouth and I start telling a story in any context, nobody really
    0:24:01 knows what I’m there for. No one knows what’s about to be said. No one knows why I’m speaking.
    0:24:04 So we have to give them a reason. Something interesting that grabs them. And it doesn’t
    0:24:11 have to be much. When Jobs introduces the iPhone in 2007, his first sentence on stage is,
    0:24:16 “I’ve been waiting two and a half years to share this with you today.” That’s a stake.
    0:24:20 That’s the CEO of Apple has been sitting on something for two and a half years.
    0:24:25 And today’s the day we get to see it. That makes you wonder what he’s going to say next. So the
    0:24:30 elephant is that constant need that there has to be something big. I call it an elephant because
    0:24:34 we should all know what it is. It shouldn’t be a mystery. It should be large and present. And it
    0:24:38 can change over time. So eventually I don’t get the spoon, but the new elephant becomes,
    0:24:42 “What’s Jamie going to do with this spoon?” It seems to be changing the lives of kids. And then
    0:24:46 the elephant becomes, “Is Matt really going to get this spoon? Or is Jamie going to keep the spoon?”
    0:24:51 And then the stake becomes the pandemic, which is just a, you know, that enormous elephant of the
    0:24:57 pandemic is enough. So that’s an elephant. Backpacks are the idea that oftentimes we’re
    0:25:01 telling an audience what our plan is, and then we’re going to tell them the results of the plan.
    0:25:06 But we want them to sort of be loaded up with our hopes and dreams along the way. So when I tell
    0:25:11 you in that story and I, when I say, “It’s okay because eventually we’re going to be writing.”
    0:25:16 And Jamie always gets lost in his writing. He’s like me. His little head falls on his arm,
    0:25:20 starts writing away. And that’s the moment I’m going to strike. I just put a backpack on you.
    0:25:25 I told you what my plan is. I told you what my hope is. My goal is when I reach for that spoon and
    0:25:30 it’s not there, you’re surprised because I’ve loaded you with my hopes and dreams. And then
    0:25:34 I’ve shown you that they failed. When I tell that story to a live audience, they often gasp or laugh
    0:25:39 when I tell you the spoon is not there. Because in their mind, I have mentally placed the spoon on
    0:25:44 the corner. I’ve really reinforced it too specifically. So that when I say I reach for it,
    0:25:48 they see it there. And when I say it’s not there, it’s like I pop it away like magic. And they gasp.
    0:25:53 They go, “Because it really is in their mind’s eye.” Like it suddenly disappeared. So a backpack
    0:25:57 works especially well when a plan is not going to go well. You know, the Ocean’s Eleven movies,
    0:26:01 they tell you how they’re going to rob the casino before they start robbing the casino.
    0:26:05 Because things are going to go wrong and you have to know what’s going wrong in order to feel
    0:26:09 the pressure and the tension of the moment. And that goes for whether we’re doing business or
    0:26:14 telling personal stories. As oftentimes, I was working with a scientist. He put a backpack on
    0:26:18 this audience. He was trying to cure a disease. The backpack he gave to the audience was,
    0:26:24 “We’re going to cure the disease. Here was my plan. We went forward. You know, I did the experiment.
    0:26:30 I looked at the results and the results weren’t there.” And your heart drops because it’s a great
    0:26:35 story about a man trying to do something great. And the result of it is when they look back on
    0:26:39 the results, they discover they’ve actually found something even more interesting. It didn’t cure
    0:26:45 the disease they were hoping to cure, but it created some molecule that changed the nature
    0:26:50 of the company and ended up curing like 12 diseases instead. But it’s so much better for that scientist
    0:26:57 to say, “Here’s what I wanted to do. Here was my plan. I invested all of my life in it. I didn’t
    0:27:01 spend time with my children on the weekends. Really built up our emotion in the same way
    0:27:06 that spoon. It’s exactly the same as the spoon not there. The cure wasn’t there, right? But
    0:27:10 something else instead happened. That was fantastic. Oftentimes, when something isn’t going to work or
    0:27:15 it might work in a surprising way, we want to put backpacks on people. The next one is breadcrumbs.
    0:27:22 So breadcrumbs are just sort of clues along the way, a little hint to something. The reason why we
    0:27:27 might wonder about something, I don’t know if I use a breadcrumb in the spoon story. It’s almost
    0:27:33 like poor shadowing, right? Yeah, it is. It’s sort of like you say some of the thing, but not all
    0:27:37 of the thing. It’s a little bit like suspense, actually. It’s sort of suspense in the same way.
    0:27:44 If I tell you that McKenzie is falling apart during her math test, right? A certain portion
    0:27:48 of the audience will see that as a breadcrumb thinking, “Well, this has to do with the spoon,
    0:27:51 doesn’t it?” A lot of the audience actually doesn’t even think that. They sort of forget
    0:27:55 about the spoon for a minute because they get so invested in McKenzie. You can tell people who are
    0:28:00 empathetic in an audience just by how much they forget about the spoon, and they start caring
    0:28:04 about a little girl who’s struggling with math. But that idea that there’s a girl here and she’s
    0:28:09 falling apart, but this is a story about a spoon, right? That is sort of a breadcrumb hoping the
    0:28:14 audience will be thinking, “How are these two things going to connect? What is going on here?”
    0:28:21 But oftentimes in a story, we just say we mentioned an object. We mentioned a thought.
    0:28:26 We mentioned something that someone says to us, but we don’t allow the audience to understand why
    0:28:30 it was said. That’s a breadcrumb meaning it leads them to be wondering about something later on.
    0:28:36 The next one is hourglasses. In hourglasses, the idea that once you know you have the audience’s
    0:28:41 attention and they’re dying for the next sentence, you make them wait as long as possible. You flip
    0:28:46 the hourglass over and let the sand run. A great example of that is the matrix. Bullet time in
    0:28:52 the matrix is an hourglass, meaning we’re going to change the way a gunfight happens in this movie,
    0:28:57 meaning we’re going to watch the bullet move through space and time so that you will wonder
    0:29:03 more if someone is going to be hit by the bullet. Because before bullet time, gunfights were a lot
    0:29:08 less entertaining because it was just a matter of whether the person got hit or not. Now we get to
    0:29:14 wonder what the course of this bullet is. Any moment where I know the audience wants to hear
    0:29:19 the next thing, I will slow things down. That’s the one time I will start describing stuff. For
    0:29:25 no reason whatsoever. That orange chair, I simply use the word orange as a means of making you wait
    0:29:30 one more second to find out what’s going to happen. If you pay attention to the way I tell that story,
    0:29:35 I start speaking slower the closer we get to the moment where Jamie’s going to hand me the spoon.
    0:29:42 I just know that if I say these words with a reduced pace, your anticipation increases.
    0:29:47 And therefore, when I get the spoon, it’s more likely that you will have an emotional reaction
    0:29:53 to it. And that’s just a matter of judging. Now I have them. Let’s make them wait as long as possible
    0:29:57 to hear it. Crystal balls. And crystal balls are something we use in life all the time. It’s
    0:30:01 essentially just a prediction. It’s an out loud prediction about something that’s going to happen
    0:30:04 because human beings are prediction machines. That’s why gambling is so difficult for people.
    0:30:10 It’s not really the money as much as it is. I think the cowboys are going to win this week.
    0:30:14 And I’m going to put money down on it to prove that I’m right. Those people don’t like wait
    0:30:19 till Monday and open the newspaper to see if they won, right? They’re watching it at the moment the
    0:30:25 game’s playing because we’re prediction machines. So when I say to you, it’s okay because I’m going
    0:30:29 to get that spoon in a little while, right? I’m making a prediction about the future. And now
    0:30:32 you’re going to want to hear as an audience whether that prediction is going to come true.
    0:30:37 Earnings calls are just like that when they give guidance, right? Their attempt to give guidance
    0:30:41 is both to make sure shareholders sort of know the direction of the company. But when they give
    0:30:46 guidance, you know those people are going to come back at the next earnings call to see if that
    0:30:50 guidance played out or they’re going to pay attention over the course of the quarter to see
    0:30:55 what the results are. So guidance is nothing but a crystal ball saying, here’s what we think is going
    0:30:59 to happen. And then you wait three months to find out if it actually happened. The more we can do
    0:31:04 that, the more we get our audience to want us to continue to talk. I always say, I want my audience
    0:31:08 happy that I’m talking. If you just think back on how many times you’ve heard people speak,
    0:31:13 how often have you thought, I’m so happy they’re still speaking? If I can get that,
    0:31:18 no, that’s the Platonic ideal. That’s the sort of really difficult to achieve. But when the audience
    0:31:22 is happy that I’m talking because they can’t wait to hear the next thing that I’m saying,
    0:31:27 that I’m waiting every time. And humor. The tricky thing about humor is I do stand-up comedy.
    0:31:31 And there are certain people that can just make lots of things funny. And in that spoon of power
    0:31:34 story, I could have had you laugh in the whole way through. That’s not useful to me in terms of a
    0:31:40 storyteller. Now, if I do stand-up, it’s very useful for me. But humor is a really powerful
    0:31:45 tool that gets underused completely in business all the time. Humor changes brain chemistry in
    0:31:52 really meaningful ways, causes you to feel closer to me, causes you to perceive me as intelligent,
    0:31:55 even if I’m not intelligent, makes you feel better about the world, actually improves your
    0:32:00 cognition. All of those chemicals get released due to humor, which primes your brain and gets you
    0:32:06 ready to hear me better. But it also does things like if I make you laugh in the first 30 to 60
    0:32:12 seconds of a story, you now feel at ease. Because an audience always has that concern,
    0:32:17 this concern that this is going to get awkward for us because you’re not going to do a good job.
    0:32:22 Many, many times, I have sat in an audience and thought, buckle up, this guy’s going to fall
    0:32:26 apart. And I don’t want anyone to think that. So if you make someone laugh in the first 30 seconds
    0:32:30 of a story or a talk or a keynote, whatever you’re doing, they relax. They go, okay,
    0:32:35 she knows what she’s doing. She made me laugh. Continue. It’s also useful in the boring parts
    0:32:41 of stories or actually in the boring parts of data. If you have to speak for 12 minutes about
    0:32:45 your data, you’d better be funny. I’m always helping tech companies when they’re doing the
    0:32:52 demo of their newly added feature to their platform. And they’re just going to run through it and show
    0:32:57 you what it is. And I’m always saying, why would you do it that way? That’s awful. Let’s create
    0:33:02 two characters. Why don’t you pretend to be somebody? Let’s make the data amusing. Let’s
    0:33:07 make a fake company. And let’s make the fake company that’s going to access your new platform.
    0:33:12 Let’s let that be amusing so that people are smiling while you’re showing them what your new
    0:33:18 product does. So it takes the boring parts and makes them a lot less boring. You can also manipulate
    0:33:22 emotions with humor. Right before I’m going to tell you something terrible in a story, I like to
    0:33:26 make you laugh so that the terrible thing hurts more. It increases the contrast. If you’re dating
    0:33:30 someone for three months and you discover you’re dating a monster and you need to dump that person
    0:33:35 and you really want to like make them hurt because they’ve hurt you, the best thing you can do is to
    0:33:40 take them on the best date of their life. And at the very end of that date, that’s the moment you
    0:33:44 dump them. And that’s what I try to do in storytelling. I try to take my audience on the best date
    0:33:49 possible. And then I hit them with the thing that stabs them in the heart. You know, my wife says her
    0:33:53 favorite stories are mine are the laugh, laugh, laugh, cry, which is to say you think we’re having
    0:33:59 a good time, but actually the understory is I’m providing you a story that’s going to devastate
    0:34:04 you in about three minutes. You just don’t see it coming yet. If you have to tell a part of a story
    0:34:10 that’s really difficult for people to hear, a laugh after that can afford a breath. It can allow
    0:34:16 people to go, okay, I just heard that bad thing, but he made me laugh. He must be okay. Now we can
    0:34:22 move on. So it’s very, very powerful. It can be overused, you know, by certain people and it’s
    0:34:27 underused by most people. Two things about the Jamie story that I thought were really fascinating.
    0:34:33 One was the way you describe the scene. So like, I feel like I’m there with you and it was vague
    0:34:37 enough that you get pulled into it. And I don’t think a lot of storytellers do a really good
    0:34:42 job of that in terms of use location a lot to pull us in. It’s almost like you’re watching
    0:34:45 a movie in your head, like you’re watching it play. Exactly what I’m looking for. Well,
    0:34:50 locations are great because almost all of them are imbued with a thousand adjectives.
    0:34:54 I don’t have to say anything. If I tell you, I dropped a bowl of blueberries on the kitchen
    0:34:59 floor. You see that perfectly. You know, in your mind’s eye, you can tell me if the floor is wood,
    0:35:04 linoleum, or tile. You know, you can tell me if the bowl was plastic, wooden, or glass. You can
    0:35:08 tell me if the blueberries are happy summer blueberries or sad winter blueberries. And
    0:35:12 if I asked you to look around the kitchen, you could identify exactly what that kitchen looks
    0:35:16 like because I’m probably in your kitchen or your parents kitchen or a kitchen you’ve seen
    0:35:20 on television a million times. But either way, I don’t want you to see my kitchen because that
    0:35:25 would mean I’d have to describe it. And the power of your imagination is always more powerful than
    0:35:30 any collection of words that I can assemble. I’m always leaning into location, especially if you
    0:35:34 think about films, there’s always a location in every scene. You never are wondering where
    0:35:38 someone is unless they’re sort of locked in a trunk of a car, you know, and that creates
    0:35:42 lots of wonder and you want to know what’s going on. We open with location because you’re right,
    0:35:47 it activates imagination. It forces the movie to continue to play in the minds of the audience.
    0:35:52 And it’s almost like my brain starts doing the work for you. You don’t have to describe sort of
    0:35:56 like what the floor is like or what the lighting is like or where the windows are, you know,
    0:36:01 you just instantly go there. And the other thing I really that stuck out to me about Jamie was
    0:36:06 we basically time traveled 15 years in that story. So we started like at recess and then
    0:36:11 we went to a day and then we went to a week and then all of a sudden we’re in COVID and it’s,
    0:36:17 you know, 10 years later and you’re still talking about how powerful this spoon is and how it’s
    0:36:22 helped people. And it’s funny because I wouldn’t normally advance a story so far ahead. I often
    0:36:27 tell people that that’s sort of a mistake, try to keep a story in the moment. And had COVID not
    0:36:32 happened, the story probably would have ended with Jamie giving me the spoon and me feeling the
    0:36:37 power of it for the first time and understanding that it’s going to be something I use forever.
    0:36:41 It’s only because of the weirdness and extraordinary nature of a pandemic that allows
    0:36:48 that story to jump ahead. But the other thing is you don’t know in that story that Jamie was my
    0:36:54 student 16 years ago now. You don’t know that until the very end. And that works well for me
    0:36:59 because that story could be happening last year or two years ago. It’s sort of a surprise to you
    0:37:04 that I’ve had the spoon for 16 years. And I know it’s a surprise because when I’ve told it to audiences
    0:37:09 and I say I’ve had that spoon for 16 years, I see the look on their faces because they suddenly
    0:37:14 understand that happened so long ago and you still have that spoon, you know, and I’m often wearing
    0:37:18 the spoon. I have it under my shirt and I take it out at the end of the story to surprise people,
    0:37:22 you know, I’ve had people say, is that really the spoon? And I say like, do you really think I’m
    0:37:26 such a monster that I would lose Jamie Calvert’s spoon that I couldn’t keep track of a single spoon
    0:37:32 over the course of time? But yeah, that time game I play with the audience allows that story to play
    0:37:37 out well. I would say that most of the time, maintaining stories within the moment is probably
    0:37:40 the better way to go. But that one is that one operates a little differently.
    0:37:44 So what are the most common mistakes that people make when they’re telling stories?
    0:37:47 Well, they describe too much for sure. Actually, there’s some really interesting research on comic
    0:37:54 books. They found that when you compare comic book characters, the comic book characters that have
    0:38:00 less visual detail are the ones people feel more connected to. So if I draw a circle with two dots
    0:38:06 for eyes and a little mouth, you’re going to feel more emotionally connected to that than if I
    0:38:11 created a photorealistic version of a comic book character. Because if I give you the circle with
    0:38:16 the two dots and the smile, you fill in the rest with what you want it to be. And now you’re connected
    0:38:21 to it. If I say here’s what Joe looks like in his photorealistic, there’s nothing you can do with
    0:38:27 that other than to accept it in your mind as Joe. Whereas you have a version of Joe in your head,
    0:38:36 the platonic version of Joe. And if I allow you to place all of your background and need and
    0:38:42 understanding of the concept of Joe into my unrealized picture, you’re more attached to it.
    0:38:47 So people make the mistake of overly describing either because they think an audience wants it,
    0:38:52 they’ve been taught to do it in school by people who don’t write but teach people how to write,
    0:38:56 or there are just people that get obsessed. I’ve met lots of people who say like,
    0:39:00 I want them to see my mother the way I saw her. And I say, I hear what you’re saying,
    0:39:05 but there’s a difference between what you want and what the audience wants. And the storyteller
    0:39:09 that’s doing what they want to do is making a mistake. It’s the storyteller who says,
    0:39:14 what does the audience actually want from me? That’s the one who’s going to succeed. You can
    0:39:20 share what your mother looks like with your spouse, with your closest friend who’s willing to put up
    0:39:23 with you. But the audience doesn’t want to see your mother. They want to know what was said,
    0:39:27 what was felt, and what was done. Everything else let us fill in with our brains. So that’s
    0:39:31 a mistake they make. The other problem people have is I just believe the beginnings of stories are
    0:39:35 essential to grabbing people’s attention. And people waste the beginnings of stories
    0:39:41 explaining and teaching us things rather than launching stories in the proper place.
    0:39:46 In the hands of a lesser storyteller, let’s say the spoon of power story begins with,
    0:39:52 I’m a fifth grade teacher. I’m working at a school in Connecticut. It’s called Walk at School.
    0:39:58 I teach about 23 kids per year. We have recess in the middle of the school day. And so I’m teaching
    0:40:03 social studies one day when the bell rings and I tell all my kids it’s time to go out to recess.
    0:40:07 One of my students is named Jamie, Jamie Calvert. He’s this little redheaded boy. He’s very
    0:40:12 precocious. That’s how most people start the story, which is I need to teach you a whole bunch of stuff
    0:40:16 so that the story will make sense. That’s the worst way to begin a story because no one has ever sat
    0:40:20 down and said, boy, I hope he teaches me a lot of stuff before he says something good. So that
    0:40:25 story starts in the right place, which is the actual moment the spoon makes an appearance.
    0:40:29 I’m going to teach you all the rest of the stuff along the way, but I’m not going to open my story
    0:40:35 by boring you. I’m going to open it with location, action, a little bit of wonder. There’s a reason
    0:40:40 why I say it’s a metal object. You never think spoon. Most people think knife. Some people think
    0:40:44 gun. And if you’re not thinking those two things, you’re wondering what the hell is in his hand.
    0:40:48 And either way, I’m winning because if you made a prediction that it’s a knife or a gun,
    0:40:52 now you want to know if your prediction is going to come true. That’s the crystal wall.
    0:40:56 Or you’re just wondering, what is in his hand? What is in his hand? And I want you to be thinking
    0:40:59 that because that means you want me to keep speaking. You’re happy that I’m talking because
    0:41:03 you want me to solve that little mystery that I’ve created for you. The beginnings are where
    0:41:08 people follow everything up because a story is like a plane ride to a beautiful place. You can
    0:41:13 land in a beautiful place, but no one’s on your plane. Then you’ve failed, right? So the beginning
    0:41:16 of the story is the attempt to get everyone on your plane to make the journey with you. And I
    0:41:20 think that’s where most stories fail because people disengage immediately. I just think there’s too
    0:41:24 many opportunities for people to listen to 30 seconds and go, she has nothing to say. And they
    0:41:29 look at their phone, they think of their grocery list, they start looking around the room and saying,
    0:41:32 who’s that bust of? They start doing that kind of thing and you’re never going to get them back.
    0:41:38 So I would say most of the mistakes are made in the beginnings of stories where they fail to
    0:41:42 engage the audience. And at the ends of stories where they fail to actually say anything.
    0:41:48 So the end being sort of the five second moment of change or things that are different for you
    0:41:54 and that the audience can relate to. Let’s go deeper on that. How do we find those
    0:41:59 five second moments? How do we determine the beginning of the story? And those seem to be
    0:42:03 the two most critical points, right? Where am I taking you? What’s the destination that we’re
    0:42:07 getting on? And like, how do we get on that plane together? Right. So we start at the end
    0:42:11 because we want to know what we’re going to say. And I do this regardless of what speaking
    0:42:15 engagement you might be doing. If I’m helping someone with a keynote, I say, what’s the thing
    0:42:19 you’re trying to say? And oftentimes they say, well, we’re trying to say a bunch of things. And I
    0:42:21 say, well, if you say a bunch of things, you’re not saying anything. You have to have something
    0:42:25 that you’re aiming at at the end. Even with a marketing deck, I always say, what are the
    0:42:28 last three slides? And they say, well, we don’t know, we haven’t gotten to those. And I said,
    0:42:31 that’s where we start though, we want to land somewhere. Otherwise, we’re just collecting
    0:42:35 slides and changing the order three days before the event, and then two days before the event,
    0:42:39 and then two hours before the event, we’re going to say something or we’re not going to say something.
    0:42:44 So in storytelling, regardless of what the story is, it’s always, what am I trying to say at the
    0:42:49 end? Meaning how did I change transformation or realization? How did my perception of the world,
    0:42:55 my perception of myself, my perception of a spoon, or how I live as a human being,
    0:43:01 how has that changed over time? And if it’s not a genuine change, it’s just a thing that happened.
    0:43:06 It might be an amusing anecdote. I had a amusing moment in the airport yesterday. I got
    0:43:10 diverted by the customs agent. I sort of did a bad job with the first customs agent,
    0:43:17 and he put a red X on my form. And I thought, I’ve never seen that before. And so he said,
    0:43:21 move on. And I went to that place where they sort of release you. And I went right with everybody
    0:43:26 else. And the guy said, no, you go left. And I went into customs agent layer two, which I’d never
    0:43:30 been in before. And there was a harder questioning. They were essentially trying to figure out why I
    0:43:35 was here. Are you doing business here? And I’m like, no, I’m not getting paid. I’m just going
    0:43:39 to talk to a guy. I said it in a way that made them very suspicious of me. And in the end,
    0:43:43 the way they stopped being suspicious of me is they found my Wikipedia page. And they said,
    0:43:46 oh, look, you’re an American novelist and storyteller. And suddenly they all relaxed
    0:43:50 that everyone was like, okay, we understand why you’re here. That was an amusing anecdote.
    0:43:56 It’s not a story. Because when I left customs, I was not thinking, oh, I see the world in a
    0:44:00 different way. I see myself in a different way. I see customs in a different way. None of those
    0:44:03 things happened. It was the kind of thing I’ll tell my wife and she’ll go, huh, that’s funny.
    0:44:07 And three months from now, neither one of us will remember it because it’s cotton candy.
    0:44:11 That’s what so many people do though. They think, oh, I have a story. Let me tell you about customs.
    0:44:15 I would never say I have a story. I said something strange happened to me in customs
    0:44:21 the other day, right? But it’s not a story. I might probe it and say, is there a story there?
    0:44:25 Is there something about me having a Wikipedia page? That’s kind of weird, right? But I don’t
    0:44:30 think there is because I didn’t feel, you know, that feeling you get. It’s a feeling of
    0:44:36 something just happened. You know, and sometimes you don’t know what it is. I have taken 25 years
    0:44:41 to figure out some of the things that have happened to me in my life. But I knew 25 years ago that
    0:44:45 it was something. And I knew it was something because I kept coming back to it in my life.
    0:44:49 You’re like, that moment really sticks with me. You know, sometimes it sticks with you because
    0:44:53 it was crazy. Sometimes it sticks with you because like in the heart, in the mind,
    0:44:59 it really hung with you. So you have to have something to say. You have to have a point.
    0:45:04 And we start at the end because we want to land in a place where people go, oh, my time was well
    0:45:10 spent. He’s presented me with a new way to look at the world. He’s made me reflect upon my position
    0:45:14 on this planet, that kind of a thing. That’s what we’re looking for. And that can be as simple as
    0:45:19 I want you to see my product in a new and interesting way. So when you leave, you go, wow, that really
    0:45:24 is kind of an interesting broom. I’ve got a broom in my house, but I actually think they’ve upgraded
    0:45:30 the broom. Like I’m feeling I got to go get that broom now because I don’t have the right broom.
    0:45:34 That’s actually a feeling. And that would be the end of a story too. We got to ask ourselves,
    0:45:39 what actually generates change over time? That’s the end of the story.
    0:45:44 And then how does the end inform the beginning? Well, they’re almost always in perfect contrast
    0:45:48 to each other. They have to be opposite of some way. If you want change over time, for the end of
    0:45:54 my story, you know, I’ve learned a thing. At the beginning of the story, I must not have that thing
    0:46:00 learned. If at the end of the story, I say this is a spoon of power, and it’s really going to become
    0:46:05 the most powerful teaching tool I’ll ever have. The beginning of the story is it’s just a spoon.
    0:46:09 And those are words I actually use in that story, just an ordinary kitchen spoon. I tell you in the
    0:46:15 beginning, this is a meaningless kitchen spoon that because Lord of the Rings was on the popular,
    0:46:20 I declared it the spoon of power for reasons that make no sense, except that’s who I am, right?
    0:46:25 But essentially, it was a nothing and I made it a something. So we ask ourselves at the end,
    0:46:29 what’s the change? What’s the meaning? And then the beginning is always going to be the opposite
    0:46:33 of that. And now we have change over time. Now we create what I call an arc, right? It’s going to
    0:46:39 go from one place to another. The customs agent story, you can feel it’s flat. Like, there’s no
    0:46:44 opening where Matt is nervous about going through customs. I’ve done it a million times. Even when
    0:46:48 I saw the red ax, I’m in Canada. What are they going to do? You know, I guess if I was in another
    0:46:52 country, if I had just entered North Korea, and I got a red ax, maybe I have a story now, right?
    0:46:56 But in Canada, I was thinking the worst they’re going to do is like, make me wait a little bit
    0:47:02 longer before I enter Canada, right? So that’s not a story, because I didn’t feel that thing.
    0:47:05 And therefore, I can’t have the opposite of that thing.
    0:47:07 It’s hilarious to me that story, because I mean,
    0:47:10 everybody can get into Canada and yet we stop you.
    0:47:14 Right. Well, again, it was probably because I was communicating poorly, like,
    0:47:17 what’s the purpose of your visit? I’m here to see a guy. What does that mean? I’m going to
    0:47:20 talk to him. What are you going to talk to him about? Well, it’s on a podcast.
    0:47:25 What do you mean on a podcast? You know, I was like, I’m just not doing a good job here.
    0:47:29 And that’s like, I got myself into trouble because I didn’t tell a good story.
    0:47:32 So if the ending is the opposite, the beginning is the opposite. So like,
    0:47:37 you have these two transformations, walk me through some common movies and how you see them.
    0:47:41 And this might wreck movies for everybody listening going forward. But talk to me about
    0:47:45 how the opening scene of a movie often predicts the end and maybe use some examples.
    0:47:50 All of the openings of movies or almost all of them will predict the end of the movie for sure.
    0:47:54 Romantic comedies are the easiest to play within the beginning. If you see a movie like when Harry
    0:47:57 met Sally, they actually say they hate each other at the beginning. I hate you, Harry.
    0:48:01 They do not get along. They travel across country and they can’t stand each other the whole road
    0:48:06 trip. We know what the end they’re going to end up together, right? There’s no way you can’t know
    0:48:11 that. It doesn’t mean you’re not going to enjoy the film. It just tells you this is how this movie
    0:48:18 is going to end, right? If we think about the first Star Wars, you know, a new hope, we meet a boy on
    0:48:24 a planet who’s dreaming with his friends about flying in space someday and using blasters and
    0:48:29 spaceships to defeat an empire. That’s the beginning of it, right? So we have to know
    0:48:33 that that’s not what’s going to happen over the course of this movie. What happens is
    0:48:38 he meets Jesus in the form of Obi-Wan Kenobi because it’s really a religion story. It’s about
    0:48:44 a boy who thinks he’s going to fly in a spaceship and defeat the empire. And instead he finds religion,
    0:48:48 something called the Force. And at the end of the movie, when he’s ready to use that spaceship
    0:48:53 to defeat the empire, he turns off his targeting computer and he says, “I don’t need technology.
    0:48:58 I have religion and religion will save the day.” That’s why when you leave that movie, you feel
    0:49:03 good. There’s lots of space movies and some of them you leave and you go, “Oh, that was a something.”
    0:49:06 And then there are other movies you leave and go, “That was great.” And you forget all about it
    0:49:12 because there’s something about watching a character find a religion and then use that
    0:49:18 belief in the thing to defeat evil that means something to us. My favorite example is like,
    0:49:24 not a great movie, but Independence Day, the alien invasion movie. I love that movie because that
    0:49:29 is so perfectly constructed. That is a movie about people. There’s multiple protagonists in that
    0:49:37 movie. People who are all failing to get the respect of the people they value most. So like,
    0:49:42 Will Smith’s character at the beginning of the movie is rejected by NASA. You don’t get to be
    0:49:46 an astronaut. If you don’t think Will Smith isn’t going to space at some point in that movie,
    0:49:53 you’re crazy. The president is being accused of being weak. He’s soft on crime. He’s a weakling.
    0:49:58 He’s not the strongman he once was. If you don’t think at the end of that movie, he’s going to
    0:50:04 somehow be fighting an alien actually in his plane. You’re crazy. It tells you exactly what’s
    0:50:08 going to happen. Jeff Goldblum’s character at the beginning of the movie, you’re doing something
    0:50:14 with satellites and television. His father thinks he’s wasting his time. His wife who’s sort of
    0:50:20 estranged from him is doing big work and he’s doing nothing. He’s like just sending cable
    0:50:25 television up to space. That’s what you’re doing. All of those characters are essentially characters
    0:50:29 who are being disrespected by the people they value the most. And at the end of the movie,
    0:50:35 all of them will gain the respect of the people they value the most. Now, if Roland Emmerich,
    0:50:40 who made that film, said, “Hey, Shane, want to come to my movie?” It’s about a bunch of people who
    0:50:44 are not really feeling the respect they deserve. And over the course of time, they’re going to
    0:50:48 find that respect. And it’s actually going to come from the sources that they value the most.
    0:50:53 You’re probably not very excited about it. But if you place those actual stories
    0:50:59 amongst an alien invasion, suddenly we have something that people want to go to. And when
    0:51:05 they leave, they go, “It’s kind of not a great movie. And yet for some reason, it sort of stays
    0:51:10 with us in a way that other movies don’t. And I really believe that’s why. Even if we don’t
    0:51:16 know it on the surface level, I believe that somewhere inside, we recognize we watched people
    0:51:23 do a thing that we hope to do someday, which is to say, get the people who don’t notice us
    0:51:27 to notice us. That’s what that movie is about. Oh, that’s interesting. I mean, when I hear that,
    0:51:31 and I’m like, why is it memorable? I haven’t watched the movie. So I’m going to watch it
    0:51:36 tonight, maybe. I think, oh, we’ve all been in a situation where we’re feeling underappreciated,
    0:51:40 undervalued, and we all want to be the person, the hero in the end.
    0:51:43 Right. Yeah. And that’s exactly what that’s about.
    0:51:47 What makes the difference between a memorable movie and one you walk out of and you’re like,
    0:51:49 “Oh, that was entertaining,” but you forget like two days later?
    0:51:54 Oftentimes, the problem with those films is that whatever is sort of being expressed,
    0:51:59 hopefully that five-second moment at the end, because most movies actually have that.
    0:52:05 Regardless of what you’re watching, most screenwriters and filmmakers are taking us on an arc
    0:52:12 in a certain way. The more relatable that ending moment is, the more deep,
    0:52:16 the more resonant it is through the movie, as opposed to what happens in a lot of movies,
    0:52:20 which is it just sort of lands at the end because they know they have to wrap it up at the end.
    0:52:26 Some movies carry it all the way through. If you think of Die Hard, Die Hard’s a movie about a man
    0:52:33 who’s trying to get back his wife. And his wife has decided that her career is going to take precedent
    0:52:38 at this moment. And he’s decided his career is going to take precedent. And so they’re apart.
    0:52:43 And essentially, he’s just trying to get back to his wife. The whole movie is he’s just trying
    0:52:47 to get back to his wife, and they have placed terrorists in front of him. Rather than what we
    0:52:53 face typically, which is like a bad phone call, the job isn’t working out, our kids are making us
    0:52:57 crazy, that’s not entertaining, but terrorists are. John McClain, the character in that movie,
    0:53:02 throughout the entire movie, we’re always thinking about his wife. We’re always going back to his
    0:53:07 wife. His wife is always in peril, and he’s just trying to get back to his wife. In a lesser version
    0:53:11 of that movie, that idea is introduced at the beginning of the movie, but we don’t really see
    0:53:16 the wife again until the end. And so we will feel like, oh yeah, he did go on a journey, but it didn’t
    0:53:23 sort of have the time to sink into us in the way that it sinks into us in Die Hard. We understand,
    0:53:28 it’s also really important that in that movie, he’s not sort of a jacked up Arnold Schwarzenegger.
    0:53:33 We’re like, I’m kind of like that guy. It hurts to run through glass. Like, I understand that I
    0:53:37 might be able to do it to save my life, but the fact that in the next scene, he’s sort of screaming
    0:53:42 and pulling glass out of his foot in a way I would, as opposed to the way Arnold Schwarzenegger
    0:53:46 in a movie would, which he’d just pull it out and crack a joke, you know, and toss it away. That’s
    0:53:50 why that movie stays with us, because we’re like, that’s us. And I understand what it’s like to try
    0:53:55 to get back to a loved one. And I understand how things are placed in front of us, not those things,
    0:54:00 but things. How do we make a good trailer then for a podcast or for a movie? Like, what goes into
    0:54:05 that in your mind that pulls people in and like, I have to watch this. I have to listen to this.
    0:54:11 We want to make sure that people understand sort of what the problem the character is facing,
    0:54:15 what that problem is, and make sure that it’s something that we all can go, yeah, I get that.
    0:54:20 But not solve the problem or even let us know if the problem will be solved. John McClain
    0:54:25 desperately wants to get back to his wife. And unfortunately, terrorists now stand between
    0:54:30 him and his wife. What do you do when there are terrorists standing between you and your wife,
    0:54:35 multiple terrorists, and you have nothing except your wits? What do you do? And we go,
    0:54:40 I’ve wanted to get back to the love of my life. You know, how is he going to do that? And suddenly
    0:54:45 you want it to happen. If they present it as something we want, then absolutely we’re going
    0:54:49 to watch it because we want to see how to do it. You know, I think there is a part of our brain
    0:54:54 that says, I need to see how John McClain gets back to his wife because I want to get back to,
    0:54:59 maybe it’s the love of my life, or maybe it’s like I used to love playing poker and I haven’t
    0:55:03 been playing it for a long time. And I want to get back to that love of my life. But we want to
    0:55:08 present sort of the stakes in the story without revealing too much of the story. So we want to
    0:55:14 see the yearning, the want, the desire. If it’s a podcast, it’s essentially you’re going to present
    0:55:20 a question at the top, you know, something like you’ve probably been telling not so good stories
    0:55:27 all your life. And you’ve probably heard people who tell amazing stories all the time. It turns out
    0:55:32 that’s not actually something that people are born with. It’s just strategic. And if you become a
    0:55:38 little more strategic, you can be one of those people, right? Now we want to know. Now we’re
    0:55:43 curious. We’re not giving anything away. We’re not indicating the end, but we’re finding something
    0:55:48 that’s going to like appeal to people in a real emotional way. We’re going to identify a need
    0:55:53 they have. And if we identify an appropriate need, then we’re going to grab our audience and they’re
    0:55:58 going to pay attention. I love that. That’s really cool. How do we learn to tell better stories then?
    0:56:04 Like walk me through sort of you teach a class on this, like what’s that process for if you had to
    0:56:09 give a high level overview of that? Like how do you learn to do that? Start by becoming what I
    0:56:14 call strategic listeners. There’s listening, which everyone thinks they’re good at and many people
    0:56:18 are not. And then there’s active listening, which is as far as I can tell you look at the person in
    0:56:23 a nod while they speak, but I’m not sure if that actually yields anything. So what I say is strategic
    0:56:27 listening, which is what I’m relentlessly doing all the time, which is to say, if I’m watching a
    0:56:32 movie and it makes me laugh, I say to myself, what did they just do to make me laugh? Like what
    0:56:37 combination of words or situations did they assemble? Or how were the words spoken in a way
    0:56:41 that produced the laugh? If you hear someone tell a great story and you think, wow, that was a great
    0:56:47 story or a great movie, strategically, you should be thinking, what was it about that story about
    0:56:52 that movie about the book I just read that made it great? I think a lot of times what happens is
    0:56:58 people allow that content to wash through them, which is great if you want to be a consumer of
    0:57:03 other people’s greatness. But if you want to be a reproducer of that greatness, then we have to be
    0:57:09 strategic. My wife, when we leave movies, I don’t know, somehow she knows when I know a movie is
    0:57:15 terrible, even if she thinks it’s good. Like we left the first Wonder Woman movie and she was feeling
    0:57:20 great because it was feminist superhero icon. And as we left the movie theater, she goes,
    0:57:27 I know something’s wrong with that movie. I can tell by the way you’re walking. And I said,
    0:57:32 that movie is a disaster. And she said, can you not tell me for 15 minutes so I can keep
    0:57:37 enjoying it? What she was saying is, there’s something fundamentally flawed with that movie,
    0:57:42 and you as a strategic listener have pinpointed it. I have not pinpointed it. Right now,
    0:57:46 I’m just a consumer of this content. Eventually you’re going to tell me and it’s going to ruin
    0:57:50 the movie for me, but just let me enjoy it for a little bit. I told her, I said, I never have to
    0:57:54 tell you. And she said, no, you’ll eventually tell me. So, you know, 15 minutes down the road,
    0:57:58 I told her what was wrong with Wonder Woman. As soon as I told her, she said, oh, what a terrible
    0:58:02 movie. And I said, yeah, I know, but most people won’t notice because they’re going to be consumers
    0:58:06 of the content and not the strategic pulling apart at the threads kind of person. I’m the pulling
    0:58:09 apart at the threads kind of person. And if you can become that, then you’re going to be a much
    0:58:12 more effective storyteller because you’re going to pick up on the things that people are doing.
    0:58:16 If I don’t ask, I’m going to get a viscerator for this. So what was wrong with Wonder Woman?
    0:58:20 So at the end of Wonder Woman, did you see the movie? I did like a long time ago. I forget it.
    0:58:27 At the end of the movie, Gal Gadot, Wonder Woman, she’s battling the bad guy. He’s some sort of God
    0:58:34 or something. Hades. Hades. And they’re fighting. And while that’s going on, Wonder Woman’s boyfriend,
    0:58:41 for lack of a better word, is in a plane and he’s flying some poisonous bomb into the sky.
    0:58:47 And she’s losing to Hades. She’s about to be killed by Hades. And then off in the sky,
    0:58:53 she sees her boyfriend and he dies. The plane blows up. He’s risked his life to save her
    0:58:59 and all the people in the area. And it’s at that moment that she finds the strength
    0:59:05 to rise up and defeat Hades, which means there’s a story about a woman who is incapable of winning
    0:59:11 her own battles unless a man sacrifices his life and therefore inspires her to defeat the bad guy.
    0:59:14 Oh, that’s interesting. I never thought of it that way.
    0:59:18 But that’s exactly what happens. But how often in movies does that happen? When Luke Skywalker
    0:59:25 defeats the Empire, it’s not because he’s thinking about Princess Leia. He doesn’t need Princess Leia
    0:59:32 to inspire him to take the shot, right? In movies, quite often, many times, almost always,
    0:59:39 the man manages to defeat the bad guy without any inspiration, right? When Iron Man defeats Thanos,
    0:59:44 he’s literally looking at Dr. Strange. He’s not looking at his wife who is on the battlefield
    0:59:51 with him. He’s looking at Dr. Strange. And Dr. Strange says this is the one in a million
    0:59:57 circumstances where we might win, right? He’s not relying on a woman and the support of his wife
    1:00:01 to do it. He’s doing it on his own with a little information from a guy. And that’s how most male
    1:00:08 heroes win the day. Female heroes in so many movies can only win the day if a man does something
    1:00:13 first. Actually, the Mary Poppins movie, the new update of Mary Poppins, is even more egregious
    1:00:18 because Mary Poppins is this woman who’s trying to save this family. There’s a father who could be
    1:00:21 the hero of the day, and he’s not. And there’s two kids, they could be the hero of the day,
    1:00:25 they could save the home, but they don’t. Mary Poppins could be the hero of the day. She doesn’t.
    1:00:30 Instead, quite literally, the door opens and a man walks in, the guy who played Bert in the original
    1:00:35 movie. He’s an old actor that we’re all happy, suddenly made a last appearance. The door opens,
    1:00:39 and he basically says, I have all the money you need. Here you go. Everyone fails to save the day,
    1:00:43 and then the door opens, and a white guy with a bunch of money walks in and says,
    1:00:47 here you go. Here’s what you need. And we’re all happy because we see an old actor that we didn’t
    1:00:49 know was going to be in the movie, and he suddenly appears and we’re happy. And hooray,
    1:00:53 the day’s been saved. And I sit there and go, really? None of the people in the movie are going
    1:00:57 to save the day. We’re going to have the random white guy we haven’t seen for all except the last
    1:01:02 two minutes of the movie pop in. But that’s the difference between being a strategic listener
    1:01:07 and saying what’s happening in the story and someone who just is enjoying it. And there’s
    1:01:11 nothing wrong with enjoying it. Although I do think in both of those movies, I think that what is
    1:01:19 being said, which is women can’t win the day, I think that does sort of work its way into our
    1:01:25 unconscious. I actually think both of those films are pretty bad if you’re a little girl and you’re
    1:01:29 watching that movie because you don’t get to see kids win in Mary Poppins. You don’t get to see
    1:01:34 Mary Poppins win. You don’t get to watch Wonder Woman win on her own merit. I do think that
    1:01:38 they’re sort of insidious in that way. Not intentionally. I can’t even comprehend why
    1:01:43 these filmmakers did not see these problems as they were putting their films together or they
    1:01:46 decided they were problems about who cares because we have to kill them somehow and why would we
    1:01:51 kill them for no reason. So we’ll do it for that reason. But I do think they’re pretty detrimental
    1:01:56 to girls in general. So if you’re a parent, you have a young daughter, what’s a good movie to watch
    1:02:02 with her that is not like that, that’ll see the unconscious properly about the woman sort of
    1:02:06 not needing anybody else and saving the day. Thelma and Louise. What happens in that movie?
    1:02:11 They both die. Well, actually, they don’t die. That’s an interesting, I use this one in storytelling
    1:02:18 all the time. Thelma and Louise, it’s from the 1980s, two women sort of get mistaken for having
    1:02:22 committed a crime that they did not commit and they essentially get chased by the police and
    1:02:26 it’s looking really bad for them. And it’s a story about two women coming together, a female
    1:02:32 friendship. And at the end, they have a choice of looking back and ending up in prison or
    1:02:36 driving off a cliff together holding hands and they drive off the cliff holding hands. Now,
    1:02:40 the interesting thing about that movie is it ends with the car mid-flight. We don’t actually see it
    1:02:47 hit the ground, which allows the audience to think maybe they survived. It’s improbable and it’s not
    1:02:51 meant to be thought that way. But there’s a reason why we don’t see the car disappear off screen.
    1:02:54 And it’s because we’re going to hang it right here. We’re going to stop the movie right here and you
    1:02:58 get to sort of determine what you feel about it. Butch Cassidy and the Sundance Kid is the same
    1:03:03 thing. Butch Cassidy and Sundance Kid, they run out of the rocks to go face, you know, a hundred
    1:03:08 federales. And we know they’re going to die, but we don’t see them die. So in our hearts and our
    1:03:12 minds, they’re still alive. Maybe Butch and Sundance get out of it. And that’s the idea that our story
    1:03:17 should always sort of have a little bit of a tail on them. When a story is not complete, when there
    1:03:21 are still unanswered questions at the end of a story, when the audience can sort of play it out
    1:03:26 a little bit on their own, those stories tend to hang with an audience much more. So we want our
    1:03:30 stories to not be wrapped up in a bow because when we wrap it up in a bow, we get to shove it away
    1:03:34 and stop thinking about it. You know, I think of it as a rope. I don’t want to not at the end of the
    1:03:38 rope. I want a frayed ending that allows people to sort of wonder what the hell happened the next
    1:03:42 day. That’s great. When they’re wondering the next day, I’m thrilled. Is it okay to lie when we tell
    1:03:47 stories? I don’t think so. I’m a novelist, you know, I’ve published six novels now. I believe in
    1:03:52 making stuff up all the time. The phrase, “Never let the facts stand in the way of a good story.”
    1:03:56 I hate that. It’s the stupidest thing I’ve ever heard anyone say. When we lie in our stories,
    1:04:01 we can no longer be trusted. You know, when I’m telling stories to people, there’s a reason why
    1:04:08 people share more secrets with me than you could ever imagine. Everyone from an audience member
    1:04:14 all the way up to the CEOs of tech companies that you interact with on a daily basis,
    1:04:20 they end up sharing like really private things with me. My wife will sometimes like, you know,
    1:04:24 she’ll be in the other room and she’ll hear me talking to someone about storytelling in a coaching
    1:04:28 session. And when I come out, she goes, “That didn’t sound like storytelling.” Like the whole
    1:04:32 hour wasn’t spent on storytelling. It’s because I’ve spent so much time with this person and
    1:04:38 shared stories and expressed empathy and done all the things that I do that people are willing to
    1:04:41 trust me, connect with me. You know, there’s a reason why I tell you the spoon of power story.
    1:04:46 And you know, when entrepreneur once told me, “You should sell spoons. You should drill holes
    1:04:50 and spoons and sell them on chains,” he’s not wrong. I could totally make a bundle. I’m not
    1:04:54 going to do it. It’s a really cynical and awful way to be. But it’s because they know the story is
    1:04:58 true. If you think it’s fiction, suddenly you don’t want to touch the spoon of power.
    1:05:03 It’s just the thing he made up and somehow he got a spoon on a chain and that’s all that’s
    1:05:09 going on. So no, I think the extent of lying in a story amounts to I’m allowed to take things out
    1:05:14 of stories that are inconvenient for the story. Not inconvenient for me, but because they make
    1:05:20 the story not run as well. I tell a story about a bunch of guys in a car, you know, we’ll go into
    1:05:24 a place. And I don’t mention one of my friends. And here’s the story. He says, “I was in the car
    1:05:27 that night too.” And I said, “I know, but you didn’t do anything. You know, you’re just cluttering
    1:05:33 the field. Like you’re just stealing bandwidth from the audience, mentioning that Martin was also
    1:05:36 in the car. Like if you don’t do anything, you’re out of the car. You’re irrelevant to me at that
    1:05:40 point because you’re irrelevant to the audience. So I’ll take Martin out of the car. I’ll condense
    1:05:45 time. So a story that takes place over the course of two days, I’ll push it into one day because
    1:05:49 an audience doesn’t want to have to hear that I went to bed, woke up, hit a bowl of cereal. And
    1:05:53 then the story continued, right? I don’t want to have that clunkiness of a story. I’ll shorten
    1:05:58 locations, push things a little physically closer together, and I’ll eliminate things. All of that
    1:06:03 is done in the service of the story, though. If I did something stupid over the course of the story,
    1:06:08 I’m not going to remove the stupid thing I did in an effort to make myself look better. In fact,
    1:06:12 I will enhance the stupid thing I did because I know that’s what audiences really want. You know,
    1:06:17 that vulnerability is what they crave. So whenever I do something stupid, I am thrilled
    1:06:20 because it often means I’m going to have a story to tell. A lot of people tell
    1:06:27 end stories. This happened, and then this, and then this, and then this. Right. And it’s not super
    1:06:32 engaging. Right. And I remember listening to a clip, the South Park guys, they use the terms
    1:06:37 but and therefore, and then I remember reading this in your book. So talk to me about this and like,
    1:06:42 how we take an end story and make it a but therefore story. It was devastating from when I saw
    1:06:46 that clip too. Because I thought I had stumbled upon something that was mine, like, Hey, look what
    1:06:50 I found. And then someone said, That’s great. Did you know the South Park guys believe that too?
    1:06:55 And I was like, Oh, really? And it’s going to be like Matthew Dicks only. But they’re right. And
    1:07:00 I’m right too. And the story is essentially a story that is a series of events, one after the other,
    1:07:04 that are not connected in any meaningful way. First graders tell those stories all the time. I got
    1:07:08 up and then I got my cereal and then I went to school. Right. But adults still tell those stories
    1:07:13 too. Actually, most decks that I’m working on with marketing and sales people are and stories.
    1:07:16 You know, it’s an end story, because if you can just throw a slide
    1:07:21 into a deck, you don’t have a story, because I couldn’t just throw a random scene into the spoon
    1:07:26 of power and still have that story work, right? But people feel they can do that. I’m like, well,
    1:07:29 that’s fine, but you’re not telling a story. Now you’re just, you’re just a slide monkey. You’re
    1:07:34 just throwing in slides. So an end story is the kind of story that if we take something out,
    1:07:39 the story still plays. Nothing really changes in the story. We still can get to the end,
    1:07:43 which means it’s probably not a story. You’re probably just reporting on your day. But our
    1:07:49 therefore stories rely on connection. Scenes are connected to other scenes connected to other scenes.
    1:07:56 So I’m doing this, but that happened. Therefore, this happened, but then that happened. And when
    1:08:00 we connect it in that way, we can’t actually remove anything from the story, because the story
    1:08:07 will fall apart. I also think it creates motion in a story, sort of an angular, exciting nature to
    1:08:11 the story. The spoon of power appears, but it’s not the spoon of power. It’s not just a spoon,
    1:08:17 it’s the spoon of power. Therefore, I must have it. So, which is because, which is therefore,
    1:08:23 so I chased Jamie, but I don’t get it. But that’s okay, because he’s my student and I’m still going
    1:08:29 to have time to teach him. So I’m in math, right? But he’s put the spoon right here. So we’re in
    1:08:36 the standoff. Then we’re, I’m doing reading, but the spoon is still here. But that’s okay, because
    1:08:41 eventually I’m going to teach writing. I walk up the aisle, but the spoon isn’t here. The bell
    1:08:47 rings. Therefore, Jamie gets out of the seat, runs over to his coat, but also goes to the library
    1:08:52 and pulls out the spoon. So if you’re budding and thereforeing all the way through, you know that
    1:08:56 every scene is required. You know, you don’t have any fluff along the way. There’s no extra scene,
    1:09:01 sort of hanging out. And people are going to be so invested in the story. I always tell people
    1:09:06 the but is the most powerful word in all of storytelling. If I say to you, I got in the Uber
    1:09:11 today to come over here, but that just makes you want to hear the next part of that sentence. If I
    1:09:16 said I got in the Uber to come over here today and like the power could go out and you’d be like,
    1:09:22 whatever. But if I say but, you know, something happened. It’s an indication that the world did
    1:09:28 not continue on in the way you wanted it to. It’s the same thing when we oftentimes the not is more
    1:09:33 powerful in storytelling. What something is not is more powerful than what it is. If I say Shane is
    1:09:39 smart, that’s fine. But if I say Shane is not stupid, can you feel that that is a better way
    1:09:44 to say that? And what it does is when I say Shane is not stupid, it presents the dichotomy. It says
    1:09:49 there’s a stupid and there’s a smart and I’m going to tell you which one he is. If I say Shane is
    1:09:54 smart, it’s flat. I’ve only given you one option. That one option exists and it’s the one I’ve chosen.
    1:09:59 So I’m often describing things by what they are not rather than what they are because that creates
    1:10:06 that binary dichotomy in language that causes people to feel energy in our sentences as opposed to
    1:10:12 sort of that flatness. Does that only work when it’s complete opposites? Like Shane is not lazy or
    1:10:17 does it only work when there’s like a really corresponding strong opposite to that? No,
    1:10:20 because I could say something like, and sometimes I do this, it’s really weird. I actually teach
    1:10:26 people to practice this in a way that’s weird. Like when I play golf, my coach will say,
    1:10:31 do this. And he goes, we’re over exaggerating it right now. Eventually, we’ll get it back to normal.
    1:10:36 I have people over exaggerate it. So if I wanted to say the apple was red, you know, if I want to
    1:10:40 over exaggerate that and get really good at this, I’d say the apple wasn’t yellow and it wasn’t green,
    1:10:45 it was red. So red, yellow and green are not opposites of each other. They’re just different
    1:10:49 colors, but you can still do it that way. I might not do it in that instance. That would
    1:10:53 start to make me sound weird. But actually, my people, I coach, I have them do that for a week.
    1:10:58 I say, I want you to never say what it is. I want you to say what it isn’t, just in an effort to
    1:11:03 get used to it so that when you speak, there’s people who just speak dynamically and there’s
    1:11:08 people who speak flatly. And I think the dynamic speakers are the ones who are always trying to
    1:11:13 energize their sentences by doing things like that. What else goes into teaching people how to
    1:11:18 tell effective stories? Knowing what a story is is really important. So understanding as you move
    1:11:23 through your life, that there’s moments happening to you. And those are the things that are worth
    1:11:28 sharing. I just spoke to a guy two days ago, he’s going to be leading a conference, a whole bunch
    1:11:32 of people. He’s a guy who does this all the time. And he met with me because he said, I’m out of
    1:11:36 stories. He said, I used all my stories in the last conference. So I need new stories. And I said,
    1:11:41 how long was the last conference? And he said two days that you ran out of all the stories of your
    1:11:45 life in two days? He did. Right? That’s the problem often is we just don’t have enough stories to
    1:11:50 tell. If we start to recognize that our lives are filled with stories, that they’re everywhere,
    1:11:55 that we don’t need enormous moments in order to carry the day. And instead, small moments are
    1:12:00 actually some of the most powerful moments we can ever share. I would much rather share with you a
    1:12:05 tiny, seemingly insignificant moment that’s filled with meaning rather than one of my crazy stories
    1:12:09 about the times I’ve died and been brought back to life. Those are fine stories, but they’re not
    1:12:13 actually my go-to stories because they’re a lot harder to relate to. I’d much rather tell you
    1:12:18 some tiny, seemingly insignificant moment that meant the world to me because that is more likely
    1:12:22 to relate to you. So paying attention to that is going to be really important. And then just
    1:12:29 establishing that mindset of, what can I say next in order to keep the person listening to me?
    1:12:34 You know, it’s those stakes we’ve described. It’s the idea of suspense, which is really powerful.
    1:12:40 And once you understand it, it’s simple to use. It’s simply the strategic exclusion of information
    1:12:44 alongside the strategic inclusion of information. That’s what suspense is. It’s, I’m going to tell
    1:12:48 you some of it, but not all of it. It’s a metal object rather than saying spoon, right? Crossword
    1:12:54 puzzles are just suspense devices. They just say, there’s a five-letter word for the color blue.
    1:13:00 What is it? And now you have to know. And if you don’t know what it is, it’s suspenseful and almost
    1:13:05 frustrating that you don’t know. And the beauty of suspense is the more information you provide,
    1:13:09 the greater the suspense increases. So if you don’t know the five-letter word for blue,
    1:13:12 and I say, oh, we figured out the first letter, it’s an A, your suspense increases. You’ve either
    1:13:17 solved it and now you feel good because the solving of suspense makes an audience feel good,
    1:13:21 but also the perpetuation of suspense makes an audience feel good because they want you to
    1:13:25 keep talking, right? So eventually we discover the word is Azure, but some people figured it out
    1:13:29 and feel good about themselves. And some people heard the word Azure and suddenly felt relief.
    1:13:34 But either way, I’m winning. So when we’re speaking, we just have to ask ourselves all the time,
    1:13:39 if the power goes out now, will people care? Twice in my life, I’ve been in a movie where the
    1:13:42 power’s gone out. Has that ever happened to you? No. Maybe because I live in New England and we have
    1:13:46 a lot of weather. It’s like thunder and lightning. So I’m like super worried the power’s gonna go
    1:13:50 out right now. Well, twice in my life, it’s happened with a movie. The first time I was alone
    1:13:55 watching a movie, power goes out, manager comes in and says, you can come back tomorrow or later
    1:13:59 today, see the movie. I never went back because I didn’t care about the characters. The power
    1:14:02 went out and I literally was happy that the story was over. The second time I was with my
    1:14:06 daughter, the power went out, we lost our minds. I was like, maybe we should go to another movie
    1:14:10 theater. Let’s just go find another movie theater that has power so we can find out the end of this
    1:14:16 movie. That filmmaker had me on the edge of my seat. That filmmaker made me want them to continue
    1:14:22 talking. If we place that as our mindset, if the power goes out, will anyone care? I’m thinking
    1:14:27 that all the time. If the power goes out, I want everyone to stay right where they are and be waiting
    1:14:31 for me to get the microphone back on so I can finish my story. That’s fascinating. When they
    1:14:36 test movies with focus groups, they should almost test halfway through sort of like a fake power
    1:14:41 outage and like, do people want to come back tomorrow and see the resolution of the conflict?
    1:14:45 Yeah. Well, they do these registers where like, how much you were liking the movie and how much
    1:14:50 you’re not liking the movie. And depending on what kind of movie you’re in, if they’re not liking the
    1:14:54 movie, if I was paying attention, I would say, well, listen, you’re missing one of the four things.
    1:14:59 There’s either no stakes at this moment. We’re not worried about anything. There’s no suspense,
    1:15:05 right? We’re not feeling a surprise coming or we’re not laughing. And it’s one of those four
    1:15:09 things. I tell stories where sometimes I know there’s a boring part. I hate it. But I’ll get
    1:15:14 to a point in the story and I’ll say, for 45 seconds, I have to explain this thing to them. And I
    1:15:19 don’t want to explain this thing to them, but I have to. So I’m either going to make it suspenseful
    1:15:23 or I’m going to make it funny. Those are probably the two go-to strategies that I use. One of the
    1:15:28 two is going to work and get me through the boring part. I still register it as a storyteller
    1:15:34 as the boring part because I know that suspense and humor are not really storytelling. They’re
    1:15:39 sort of like, I’m painting over the problem so I can get back into the story the way I want to.
    1:15:43 But it’s when we don’t paint over the problem. It’s when we’re speaking and we suddenly know we
    1:15:47 have to say something that’s not going to be terribly engaging those demos, right? Now I’m
    1:15:53 going to demo my platform for you and we’re all going to see how it works, right? That’s boring.
    1:15:58 It’s always boring unless we paint over that problem with humor or suspense,
    1:16:03 even things like novelty. Just do it in a different way. Do it in a way no one’s done before. That
    1:16:10 works too. There’s a reason why Andy Kaufman took the stage with a record player, opened it up and
    1:16:15 played Mighty Mouse and just stood there and people were captivated. Eventually they got irritated,
    1:16:20 but that was supremely entertaining for people for quite a while because they had never seen it
    1:16:24 before. So sometimes it’s just, I’ll find a way to do it that’s never been done before and that’ll
    1:16:28 be interesting too. But as storytellers, we have to be thinking that. Structure is everything.
    1:16:32 It’s as long as you’ve structured your story properly, meaning you’ve started at the right
    1:16:37 spot in the beginning and landed in a place of meaning and you haven’t filled it with unnecessary
    1:16:41 nonsense, it almost doesn’t matter what the sentences are that you’re choosing. There’s a
    1:16:46 woman in New York, a storyteller named Denusha. English is her third language. It was Polish,
    1:16:51 Russian, and then English. And her English isn’t great. It’s fine, but her nouns and verbs don’t
    1:16:55 always agree. Her vocabulary is limited compared to mine. She still kicks my ass sometimes because
    1:17:00 she’s making good decisions. Once we have a good structure in place and we can perform at an
    1:17:06 adequate level, the sentences we apply to that structure mean a lot less because we’re actually
    1:17:11 saying something of meaning and we’re starting in a place of engagement and we’re not filling our
    1:17:15 stories with unnecessary content. You do those three things. There’s still a million things I
    1:17:19 could teach you about storytelling, but those things are really going to level you up quickly.
    1:17:24 So you advocate homework for life, which is sort of keeping track of the little moments every day
    1:17:28 that happen to you that might be stories, might be anecdotes. In an Excel spreadsheet,
    1:17:32 that’s what you use. Walk me through one you haven’t made a story recently that you think
    1:17:37 is a story and how do you think about structuring it? Just walk me through your internal monologue
    1:17:42 about one of those moments. I knew this was a moment. I felt it. My son is getting ready to go
    1:17:47 to scout camp and part of scout camp, which I went to all my life, saved my life. The Boy Scouts
    1:17:50 were more instrumental to me than anything. I knew that he was going to have to take a swim
    1:17:54 test on the first day. You’re going to swim 100 yards. He’s not the strongest swimmer. He actually
    1:18:00 had a little swimming kerfuffle a couple of weeks ago. He swam out to the dock for the first time
    1:18:04 at the lake where we go and then he couldn’t get back. He got nervous because he had gotten so tired
    1:18:09 swimming out to the dock, which was only like 40 yards out. I knew that going into this scouting
    1:18:14 swim test, he might not pass. If you don’t pass, it doesn’t mean you can’t swim, but you have
    1:18:18 limitations placed on you. When I was a kid, when I first went to scout camp, they had us do our
    1:18:23 swim test at 8.30 in the morning right after breakfast on a Monday and I was annoyed. I was
    1:18:28 just that kid that I always wanted to do things on my own terms to this day. I’m sort of that way.
    1:18:33 My wife says that’s a double-edged sword. I’ve got like nine pancakes in my belly and I go down
    1:18:38 in the cold of the morning and I have to jump in the lake and I swim about 50 yards and I’m done.
    1:18:43 I’m like, “This is stupid.” I get out and they go, “Okay, you can swim, but you didn’t swim far enough
    1:18:46 you’re a beginner swimmer.” I said, “Okay, whatever.” They said, “That means you can only swim in this
    1:18:51 little area here.” I was like, “Oh.” They said, “You can only take a rowboat.” I was like, “Oh,
    1:18:55 forget it. I’ll do it again. I’ll take the test.” They go, “Great, Wednesday. That’s when the next
    1:19:00 test is happening.” For two days, I was a beginner swimmer, which also meant on Tuesday when we went
    1:19:04 across the lake to camp on the other side, all my friends glided across in a canoe and I was in a
    1:19:09 stupid rowboat. It took me 45 minutes longer to get across the lake. Everyone made fun of me.
    1:19:14 I hated it. I remember that moment. It sears in my brain. So as my son’s getting ready to go to
    1:19:17 scout camp, I’m not sure if he’s going to pass the swim test, but I tell him that story. I say,
    1:19:21 “This is what happened to me.” I say, “It’s okay if you don’t pass, but what I want you to make sure
    1:19:26 you do is not the stupid thing I did, which is just get out because you’re annoyed.” I said,
    1:19:32 “Just try.” I said, “And don’t stop swimming because you get tired. Stop swimming because
    1:19:35 you physically can’t swim anymore.” And then it doesn’t matter what the results are because you’ll
    1:19:40 feel good about yourself. So I pick them up a week later. I don’t make it the first question I ask,
    1:19:44 but it is the first question I want to ask. I sort of try to play it cool. I wait a while and I go,
    1:19:48 “Oh, hey, what about the swim test? How’d that go?” He goes, “Oh, I passed them the first try.” And
    1:19:52 I was like, “Oh, thank goodness. My heart is with him.” And I said, “How did it go?” And he said,
    1:19:57 “Actually, on the second lap, I was going to quit because I was so tired, but then I heard you in
    1:20:02 my head and I remember you said, “Don’t quit just because you’re tired. Quit if you can’t swim anymore.”
    1:20:07 And I heard you say it, Dad, and I swim the other two laps. I’m oddly emotional, not oddly emotional.
    1:20:12 I’m appropriately emotional right now because I sent my son off for seven days and there was a moment
    1:20:18 when I was in his head. It was like I went on that swim test with him and it was because I told him
    1:20:24 a story and I was vulnerable and I tried to make it as relatable to him as possible and as accessible
    1:20:29 to him as possible and it carried the day. It’s probably going to be a story I tell someday.
    1:20:33 It’s a little trickier to tell because I don’t like to tell stories where I’m the hero necessarily.
    1:20:38 That is definitely a Matthew Dix as the greatest father in the world story. I’m going to have to
    1:20:44 therefore temper it with some of the terrible things I’ve done as a father so that I can indicate
    1:20:49 to people that I am not here to place myself on the top of the mountain as the greatest parent,
    1:20:55 but as a parent who screws up quite often but isn’t it beautiful in those moments of parenthood
    1:21:01 when you do the right thing and it actually works out and your kid is wise enough to tell you that
    1:21:05 it worked out. It was just a perfect moment for me. That’s probably something I’ll tell. I knew
    1:21:09 right away that it was going to be a story. So you had this little memory and then you just did
    1:21:14 this all in real time. Walk me through how you structured it, how you thought about the beginning.
    1:21:17 You know what the ending is because you know that moment. That was the moment you’re sort of
    1:21:24 recording almost. That’s your note. So why did we start where we started? Why did we go on that
    1:21:28 journey? And obviously you did this in real time so you would refine this, but walk me through your
    1:21:32 decisions when you made that story. The most important decision to make in that story is the
    1:21:40 structure, meaning what’s the chronological structure of that story. I used a B-A-B-C model,
    1:21:45 which is a model that I started in the middle actually of the story. I started with my son
    1:21:51 is going to camp and I know he has to take a swim test and I know it might not be easy for him.
    1:21:57 The real beginning of the story happens in 1983. I’m going down to the waterfront to take a swim
    1:22:02 test with nine pancakes in my belly. I jump on the pond and think it’s stupid and get out
    1:22:07 and I end up a beginner swimmer. 30 years later, I’m with my son. That’s a terrible way to tell
    1:22:12 that story. You can feel that already, but that’s how most people tell it, right? Most people
    1:22:18 tell it chronologically, meaning A-B-C. I started in the middle because for a bunch of reasons. One
    1:22:21 is if I tell you that beginning of the story, it already gives away the end. You know what’s
    1:22:26 going to happen, right? So I don’t want that. Also stories that take place over the course of 30
    1:22:30 years, actually that story takes place over 40 years. Nobody wants to hear a 40-year story.
    1:22:37 A 40-year story sucks, right? So what we do is we turn the 40-year story into a week-long story,
    1:22:43 which is my son is getting ready to go to camp and I don’t want him to make the same mistake
    1:22:48 I made. So I’m going to tell him a story. So I start in the middle at the B. The next part of
    1:22:53 the story, the next scene is the A, which is 40 years earlier, I’m at camp and I do this thing,
    1:22:57 right? So that’s, I’m bringing us back in time, but I’ve started us in sort of the present. So
    1:23:03 it’s a story that takes place in the present, but I yank the past into the present for a moment.
    1:23:06 And that way the story doesn’t feel like it’s taken 40 years. It feels like it takes a week.
    1:23:11 A guy tells a boy a story and then he waits to see how the story plays out. That’s the most
    1:23:16 important thing to figure out in a story like that is where should I start? And it is absolutely not
    1:23:22 in 1983. It’s absolutely in 2024. Now, things I already know I did poorly when I was telling you
    1:23:27 that story. I didn’t start with a scene, right? I started by teaching you. I said my son’s getting
    1:23:32 ready to go to Boy Scout camp. That’s a terrible beginning. What I should have said was my son’s
    1:23:38 trunk is laid out in the bedroom and he’s throwing stuff into it in a way that will never work out
    1:23:42 for him. I’ll let him make this mistake for a while and then eventually my wife will come in
    1:23:46 with packing cubes and she will solve all these problems, right? But while he’s throwing stuff
    1:23:51 into this trunk for scout camp, I’m sitting on the edge of the bed and I decide this is the right
    1:23:55 moment to tell him what he needs to hear. And that sentence is important, right? In the new version
    1:23:58 of the story, because that makes you want to know what it’s going to be, right? So I’m constantly
    1:24:03 trying to create a sentence that causes you want to hear the next sentence or I open story by making
    1:24:08 laugh, right? You actually laughed when I said throw in stuff in a way that’s never going to work out
    1:24:13 and then packing cubes is a funny thing. So all of that is designed to, I’m going to make you laugh
    1:24:16 and then I’m going to get you to wonder what the story is and then I’m going to tell the story
    1:24:21 and then I’m going to go ahead and have him come back. And I really liked the thing I did with
    1:24:26 you where I said it was the first thing I wanted to ask him, but I tried to play it cool. You laughed
    1:24:29 when I said that and I knew it. I knew you were going to laugh because I thought that was the
    1:24:33 truth and I said it and I knew you were going to laugh because that is the truth of our lives,
    1:24:38 which is there’s so many times in our lives when we want to just ask the question right away,
    1:24:44 but we know we’re not supposed to. So we order the coffee and we ask how your day was and we
    1:24:48 ask how your wife is and we ask how your kids are doing and then eventually when we feel the
    1:24:53 moment’s right, we get to the question. That sameness, that reality, that makes you laugh
    1:24:58 because you think, “Oh, I’ve done that.” That is a real thing in life that we do all the time.
    1:25:03 All of that is how I sort of thought about that story. The structure was good. The opening was
    1:25:07 not, but fixing the opening you can see is pretty easy. That’s amazing. Thank you for going into
    1:25:13 detail on that. Talk to me about metaphors and finding metaphors and how they can be used for
    1:25:18 business people, specifically telling stories or even individuals telling stories about greater
    1:25:22 meaning. I remember the story that stood out and I forget the guy’s name in the book that you just
    1:25:28 wrote about the Little League and how he turned that into a story for his company. I thought
    1:25:33 that was really interesting, but how do we find those metaphors? What we want to ask ourselves,
    1:25:38 when we’re trying to do business, when we’re trying to send a message, we’re trying to look for a
    1:25:43 theme, meaning or message. People content match. That’s the problem rather than thinking about
    1:25:48 what they’re really trying to say. This is a good example. I’m working with a guy who’s getting ready
    1:25:53 to do some speaking. He’s going to be speaking to entrepreneurs about getting through bottlenecks
    1:25:57 so they can accelerate their companies. The lesson he wants to teach them is sometimes
    1:26:04 you just have to find the one right thing that’s holding your company back. He has a great example
    1:26:09 of it. He says to me that at Facebook early on, when they were failing to gain traction,
    1:26:18 they looked at their data and they realized that if a user accumulated seven friends, made
    1:26:22 seven friends or seven connections on Facebook in 10 days, they were likely to stay on the
    1:26:27 platform. If they didn’t do that, they were likely to leave the platform. Facebook, recognizing
    1:26:33 that data point, focused all of their energies on how can we get a user to find seven friends
    1:26:38 in 10 days. That’s when they added features like load your email contacts into Facebook so that we
    1:26:43 can show you who they are. We’ll recommend friends to you, things like that. We’ll start telling you
    1:26:47 who your friends are that you have in common. All of those features were designed. Facebook
    1:26:52 figures out that’s the one bottleneck we have. That’s what he wants to tell the audience,
    1:26:57 but he doesn’t want to just use that story. He wants other things. When I’m talking to him,
    1:27:01 I say, “Well, what are other examples of singular solutions that you can think of?” He gives me
    1:27:06 a business solution, which is just content matching. You already have your business example,
    1:27:11 the Facebook one, and it works really well. I think it’s great. Right away, I went, “Uh-huh,
    1:27:16 yeah, okay, great.” I said, “What about your personal life? Do you have a personal life,
    1:27:20 a simple solution that really changed things for you?” He says, “Well,
    1:27:25 there was a point years ago when I was struggling with my marriage. My wife and I were just not
    1:27:30 getting along and we had gone to couples therapy and it wasn’t seeming to work.” One day, he sat
    1:27:36 down with his buddy and his buddy said, “Are you kissing your wife every morning?” He said,
    1:27:41 “No.” His buddy said, “Kiss your wife every morning.” He said, “What’s that going to do?” He said,
    1:27:46 “Just do it.” It changed everything for him. Somehow, there was a lack of physical closeness
    1:27:51 and intimacy that was missing in the relationship and a kiss in the morning started to change
    1:27:55 everything for them. I said, “That’s the story you should use.” He goes, “I’m not using that story.”
    1:28:01 He said, “That’s not what the purpose of this business is.” I said, “No one’s going to remember
    1:28:05 your other business story. In fact, a lot of people aren’t even going to remember the Facebook
    1:28:11 story. But if you want to land the idea that sometimes a singular solution can solve a big
    1:28:16 problem, you tell the story about kissing your wife in the morning and they’ll never forget it.
    1:28:22 They’ll start kissing their wives in the morning and they will start telling other people to do so
    1:28:26 as well. You will have an echo through their lives.” Now, that’s a metaphor, right? That’s a
    1:28:31 metaphor for his Facebook example, which is what I said to him was the Facebook example
    1:28:35 matching theme, meaning, or message essentially is what’s the theme, meaning, or message of the
    1:28:40 Facebook story. A singular solution can sometimes solve a really complex problem. Let’s find that
    1:28:45 in our personal life. Now, I’m always fighting with business people on this because they never
    1:28:49 want to bring their personal life into the business world, which is why they’re round,
    1:28:53 white, and flavorless, why they’re all forgettable, why everything they say is ultimately forgotten.
    1:28:58 Because we don’t remember business stories. We don’t remember most of them and there’s so many
    1:29:02 of them. But a guy who gets on stage and is vulnerable, it loves to say a few years ago,
    1:29:05 I was having a problem with my wife and she was having a problem with me and we were not getting
    1:29:11 along and things were looking bad. And then I told my buddy and I end up kissing her and somehow
    1:29:15 today we’re the happiest couple and that’s unforgettable. Now, I think he’s going to do it,
    1:29:18 but part of me thinks he just told me he’s going to do it and he’s not going to do it.
    1:29:22 Because that happens all the damn time. I don’t understand why people don’t
    1:29:28 see it because I know you see it. Like you made a sound. I listen to audiences when I said,
    1:29:35 “Do you kiss your wife every morning?” You made a sound. You went, “Mmm.” Which said to me,
    1:29:39 “That’s all I need to know. The story is perfect.” When you hear that sound from an audience,
    1:29:45 you know you have found the perfect story for this example. And if he was you and I was telling him
    1:29:49 the story, he would make that sound. He’d go, “Mmm.” But for some reason, because he has to tell it
    1:29:55 now, he can’t do it. Because I can’t tell a personal story. I’m there to teach them about
    1:30:00 solving business problems and bottlenecks. And I’m like, “You are.” But we don’t teach lessons
    1:30:06 always by sticking to the content. We have to expand beyond it to get people to understand it.
    1:30:11 Particularly when things get complex, when your business is different than mine,
    1:30:17 you have a platform and I have a broom company. How are we going to talk to someone who’s working
    1:30:21 for Slack and someone who’s working for a broom company? If both of those people are in front
    1:30:24 of us and we’re trying to improve their businesses, how are we going to do that? We’re going to use
    1:30:29 metaphors. We’re going to find ways to send lessons and messages to people in ways that resonate in
    1:30:33 their lives. Now, the beauty of that story too, and all the stories I teach, like the story of
    1:30:37 Boris, the one you mentioned about the baseball game, when we do that, when we’re daring enough,
    1:30:43 courageous enough to do it, we create these markers in people’s lives as well. The next time one
    1:30:48 spouse kisses another spouse in the morning, they’re thinking about him and they’re thinking
    1:30:54 about simple solutions to solve bottlenecks. It’s going to continue to reverberate. Whenever we can
    1:30:59 take the content from our business world and bring it into the personal world and allow people to
    1:31:05 feel it in a way that is really human and not profit-driven, then suddenly we have stories
    1:31:09 that people want to hear and we become unforgettable because everyone is forgettable, unless they’re
    1:31:14 doing something that is touching the heart and the mind, slightly different than everybody else,
    1:31:17 changing brain chemistry, being entertaining, all of those things. Is there a difference between
    1:31:21 telling our own stories and telling other people’s stories? Yeah, there is. Unfortunately, when you
    1:31:25 tell other people stories, they’re never nearly as good. If I had told you that my brother went
    1:31:31 through customs and got the X on his form and had to get through that second layer, that story doesn’t
    1:31:34 mean very much to you. My brother in your mind is a fictional character. You don’t even know,
    1:31:38 maybe I don’t actually have a brother. It doesn’t mean they can’t be told. There is a way to tell
    1:31:44 them it’s tricky and it’s not as effective. People want to hear the story of the person sitting
    1:31:49 across from them. They want to know that you’re the one speaking because that requires vulnerability.
    1:31:57 If I tell you a story and it’s not about me, the only vulnerability required is public speaking
    1:32:01 and I’ve overcome that and presumably anyone who’s standing in front of other people can at least
    1:32:08 publicly speak in an effective, somewhat unnervous way. So me telling you stories about other people
    1:32:14 is just me reporting on events for people that you may or may not know. The vulnerability comes
    1:32:19 from I’m having difficulties with my wife and we can’t figure out how to solve it. And then one
    1:32:25 day I decided to start kissing my wife in the morning and everything changes. That vulnerability
    1:32:30 is so powerful. Other people’s stories, you just don’t have that. How do we teach confidence to get
    1:32:35 on stage, to tell a story, to have the ability and not only to get on stage and tell a story,
    1:32:40 but to be vulnerable. It requires a certain degree of confidence in the audience and yourself.
    1:32:45 I get asked inevitably if I work with someone long enough by every client, if I can help them
    1:32:51 learn how to be confident. I have more confidence than I need my wife will tell you. And if I could
    1:32:55 teach people how to be confident, like a magic pill, I would be the richest person on the planet
    1:32:59 because it is the most powerful thing you can have. When you genuinely don’t care what other people
    1:33:04 think most of the time, my wife will tell you, “It’s extraordinary and terrible,” depending on
    1:33:10 the day. And that’s very true. Sometimes when I genuinely don’t care about most of what people think,
    1:33:17 it allows such freedom in life, but also, as my wife will say, sometimes is disastrous.
    1:33:21 Are you born that way or is that something you learn? How do you teach people not to care about
    1:33:28 what other people think? Well, I used to think and I still kind of think. Most of it happened for
    1:33:35 me when I was around the age of 21. I was in an armed robbery. I was managing a McDonald’s restaurant
    1:33:40 after closing. Three men broke through the glass and came into the restaurant. And I knew I was
    1:33:44 in a lot of trouble because the police had told me about these guys. They had already killed two
    1:33:48 people. So when I heard the glass break, I knew what was going on. I was sort of managing the
    1:33:53 safe at the time, collecting all the money, and for reasons I will never understand. I had a deposit
    1:33:58 of about $7,000 in my hand in a bag. When I heard the glass break, I took it and I reached to the
    1:34:02 back of the safe and I dropped it down the chute into the box that I did not have a key for.
    1:34:06 In order to a little placard on the box, the manager does not have a key. They got to me,
    1:34:09 they put me on the floor, they told me to open the box because they figured out there’s not
    1:34:15 enough money in the safe. I told them I can’t and they began beating me. And eventually, one of them
    1:34:18 put a gun into my head and said, “I’m going to count back from three and then I’m going to pull
    1:34:23 the trigger and I’m going to shoot you if you don’t open the box.” And then they counted back from
    1:34:29 three and he pulled the trigger on an empty gun. And I kind of fell apart at that moment. And I
    1:34:35 tried to crawl away and they pulled me back and then the guy I was afraid of, the guy, I was afraid
    1:34:39 of all of them. There’s one, you know, there’s just one. I’m like, “That’s the one that you don’t,
    1:34:44 that’s the one I don’t want to deal with.” And that was the one who put a gun to my head and said,
    1:34:48 “This one’s loaded and now I’m really going to blow your head off if you don’t open the safe.”
    1:34:55 And when he counted back from three again, I remember being so astounded because all the
    1:35:03 sudden I wasn’t afraid and I wasn’t angry. The only thing I felt was regret for what I had not
    1:35:08 accomplished yet. That I was 20 years old. I was on a greasy tile floor at the back of a McDonald’s
    1:35:14 restaurant. I had just been homeless like six weeks before. I was actually awaiting trial for a
    1:35:21 crime I did not commit. My life was a disaster. I had all these dreams and I knew with absolute
    1:35:26 certainty that I was going to die in that moment. And I just felt I haven’t done anything. And then
    1:35:33 he pulled the trigger on an empty gun again, which resulted in a lifetime of PTSD. But it’s a trigger
    1:35:38 in my life that suddenly made everything else seem unimportant. Like nothing seems to matter very
    1:35:43 much. I get yelled at by my fellow teachers. Some of my teacher friends say, “Matt doesn’t care about
    1:35:46 anything. There’s an A schedule, B schedule, and C schedule. You guys have to figure out who’s going
    1:35:50 to get which schedule.” And I’ll say, “I don’t care what schedule I get.” And they get mad at me for
    1:35:57 not caring. But I’m like, “That’s not a relevant thing.” And so what I tell people is that sort of
    1:36:05 a moment where other people’s concern over what I looked like or thought or did all just washed away.
    1:36:09 But oftentimes I’m saying, “Listen, there’s not a gun to my head. I’m not about to die. So this is
    1:36:14 nothing.” And sometimes it’s not true. Sometimes it is something. And my wife will say, “That can’t
    1:36:18 be the level for everything.” And she’s right. And sometimes it is something and I have to acknowledge
    1:36:25 that. With all of that said, my brother and sister would tell you that when Matt was a kid,
    1:36:30 she just didn’t care what other people thought either. And maybe that is in me a little bit.
    1:36:34 I was the oldest of three and then later five growing up in a home that sort of
    1:36:40 didn’t have very much parental support. I was sort of taking care of myself at a very early age.
    1:36:47 And I suspect that when you’re nine and you’re trying to find food and take care of your siblings and
    1:36:52 going to your sister’s parent-teacher conference because you know that the parents aren’t going
    1:36:57 to go to the conference. So maybe you can figure out what’s going on. I think maybe that helps a
    1:37:02 little bit too. So the problem with all of that is to say, I don’t know how teachable it is.
    1:37:07 Public speaking is very difficult and storytelling is even more difficult because you have to be
    1:37:13 vulnerable. It’s kind of like going off a high dive. When I was growing up, there was a 14 foot
    1:37:17 high dive at the town pool, which would absolutely not be allowed today. It was very dangerous when
    1:37:20 you went off it. Like you always had to hold your hands out or you’d smash your head into the bottom
    1:37:25 of the pool. But I remember standing there and watching kid after kid after kid go off that
    1:37:29 high dive and everyone was fine. They also went to the surface, jumped out of the water,
    1:37:34 did it again. And finally, I decided to do it. And even when I was up there and I knew everything
    1:37:38 was going to be fine and I’d seen a million kids do it before me, it was still terrifying.
    1:37:44 And eventually, I just had to go off and hit the water. And the second time, it was still terrifying.
    1:37:48 Even though I had just done it and it didn’t kill me, I had to do it a whole bunch of times before I
    1:37:52 finally was able to just go off and not care. And I often think that’s what I’m trying to get people
    1:37:58 to do. I can’t make the fear go away the first time. Right. You just have to go off the diving
    1:38:04 board and see that it worked out okay. And the beauty of it is if you stand on a stage and you
    1:38:08 share something vulnerable, and I have lots of people who have experienced this, you share something
    1:38:14 vulnerable, the response you get is extraordinary. Oftentimes when people share something like that,
    1:38:19 they’re worried they’re going to be judged for the stupidity, the shame, the ridiculousness.
    1:38:24 But we just will all walk around with that. We’re all walking around with something that we are,
    1:38:28 we think we’re the only one who does. And it’s never true. But the problem is so few people
    1:38:32 are willing to speak about their stupidities and their shames and their foolishnesses,
    1:38:35 that the people who are willing to do it are really valued in this world because they make
    1:38:41 the world easier for everyone else. And I’ve never had, never in my life have I ever said something
    1:38:45 on stage and had someone come to me and say, “I think less of you because of it.” You know,
    1:38:50 I tell a story about pretending to be a charity worker for Ronald McDonald’s children’s charities
    1:38:54 when I get stuck in New Hampshire one day without any gas. I actually go collecting door-to-door
    1:38:58 as a charity worker to get gas money to get home. It’s a pretty terrible thing. Now, I’m able to
    1:39:03 tell that story because I was 19 at the time, so a long time ago, that’s okay. But I tell that story
    1:39:08 a lot. It’s actually in my first book. And one of the first times I told that story when I stepped
    1:39:12 off the stage was sort of intermission. A woman came up to me and she said, “Aren’t you worried
    1:39:15 about what people are going to think of you for that?” And I said, “Well, what do you think about
    1:39:19 me?” She said, “I actually love you for it.” And I said, “Do you think you’re some kind of unicorn?
    1:39:22 Do you think you’re the only nice person in the room?” They all liked me better for it. Just some
    1:39:26 of them want to be at the bar, some of them are using the bathroom, and you came to talk to me.”
    1:39:31 I said, “But no one in the room is thinking he’s a scoundrel because at 19 with absolutely no money
    1:39:36 and destitute, the best solution he found was pretend to collect money for charity.” Now,
    1:39:40 if I’d done it the day before, maybe then I don’t tell the story, and maybe you’re right to think
    1:39:45 I’m an awful person. I’ve never had a situation where I say something like that on stage and have
    1:39:50 anyone say anything but something kind to me. Is there a difference between writing a story
    1:39:54 and telling a story? And what are those differences? Yeah, I had that conversation with someone today,
    1:40:01 a client who said, “Can you write my keynote for me?” And I said, “No, I don’t do that. That’s also
    1:40:05 boring. I don’t want to do it.” I’ve never written anything down that I actually speak on a stage
    1:40:10 other than maybe an outline. But even then, it often is just I’m going to tell this story to make
    1:40:16 this point and this story like almost nothing because I know that what I put on a page is always
    1:40:21 going to be more grammatically correct than what I’m saying. And so when I help someone with a keynote,
    1:40:26 I don’t ever want to see the page. They always want to send me the document. I said,
    1:40:30 “I don’t want to see the document because a speech does not live on the page. It lives in life. It
    1:40:36 lives in the air. It lives in your voice.” I want to hear what you say because what I say and what
    1:40:40 you say are going to be very different things. I’m going to say them in different ways. So when
    1:40:46 I’m writing, which I do, I mean, I have nine books I believe in writing, I know that if I was to take
    1:40:51 something out of my book and read it out loud, it would sound wooden, inauthentic. It would sound
    1:40:58 written. If you’ve ever seen David Sedaris perform, he reads from his books and his notes. He stands
    1:41:03 behind a lectern and he reads it. And you can tell it’s read. And that’s the goal of that. And
    1:41:09 there’s nothing wrong with it. But it’s not performing. And it’s written more to make you laugh
    1:41:13 than it is to connect with you because it is a little harder to connect to someone
    1:41:20 as they read. It’s why even politicians who use teleprompters, you can’t see the teleprompters.
    1:41:24 They’re designed in such a way that you often don’t even know they’re there when a politician’s
    1:41:28 using one because you want to believe someone’s speaking from their heart and their mind, which
    1:41:32 is why I don’t memorize anything. Everything is remembered but not memorized. If I was to
    1:41:37 look at a page or even memorize a page, you would know it right away. My wife and I,
    1:41:40 when we attend storytelling shows, will hear a storyteller and I’ll be like,
    1:41:43 “That was a great story and it was fully memorized that I’m sure was off the page.” And she’ll go,
    1:41:50 “Yes, it was.” And it just does not make us love the person as much as the imperfect, stumbling
    1:41:57 storyteller who also told us a story and did it in that authentic, imperfect way. The former director
    1:42:02 of the moth, Katherine Burns, once told me I was getting ready to speak in front of 2,500 people.
    1:42:07 I told the story and I made a mistake in it and no one knew about me and Katherine because she knew
    1:42:12 the story. There was just a place where I forgot something and I had to double back and slide it
    1:42:16 back in because I knew I had to have this thing to have the end play out. And I sat down and the
    1:42:20 first thing I said was, “Oh, I screwed that up.” And she’s like, “Don’t be ridiculous. You and I
    1:42:23 are the only two people who knew you had to double back.” She said, “You did a great job.” I said,
    1:42:29 “Fine.” And she said to me, “It’s in the imperfection that the beauty lies because the
    1:42:36 imperfection tells us you had not memorized that thing. You remembered it and then you realized
    1:42:39 in the midst of the story that you had forgotten something and you went back and caught it and
    1:42:45 then moved on and that made everyone feel like you were speaking to them and not at them.”
    1:42:48 And I always think about that. The imperfection is the beauty.
    1:42:51 Go deeper on the speaking to people and not at them.
    1:42:54 Speaking at them is the idea that it’s almost irrelevant who’s in front of me.
    1:43:00 90 entrepreneurs at a conference or 2000 people at the Brooklyn Academy of Music or
    1:43:07 six people in a library, when all of those are audiences I speak to, someone who has a
    1:43:12 sort of memorized speech. I know authors who have them, authors who have their speech that
    1:43:16 they take wherever they go and it never changes because they’ve crafted it, memorized it,
    1:43:20 and they deliver it. That’s speaking at an audience, meaning nothing’s going to change.
    1:43:24 I’m here to say words. I’m going to basically say them to the middle distance
    1:43:27 and when I’m done, I will take a few questions and I will go home. That’s at.
    1:43:33 If you’re speaking to an audience, people know right away that what I’m hearing tonight
    1:43:39 will not be the same thing he says tomorrow night and it’s in those imperfections that
    1:43:44 people will detect that. Stopping a sentence to correct what you just said or circling around
    1:43:47 or even repeating yourself accidentally and then saying, “Oh, I already told you that I’m sorry.”
    1:43:53 That’s a beautiful thing because then they know it’s for them. People want to know that when
    1:44:00 you’re speaking, it’s specifically for them. I’ve brought this part of me to you and it’s
    1:44:06 never going to be this way again. It’s going to be the same stuff but it’s going to be done in
    1:44:10 a very different way tomorrow and I might leave something out, put something new in,
    1:44:14 which I often do, but that’s the difference between speaking to the middle distance,
    1:44:19 regardless of who’s in front of you or looking at people and saying, “Who are they?” I once did
    1:44:25 a show at the Brooklyn Historical Society. I went there with a story to tell for a moth story slam
    1:44:29 and I’d never been there before. It was like a one-time deal and when I got in and looked at
    1:44:34 the audience, they were basically all blue-haired old ladies and I thought the story I have is not
    1:44:39 going to be appreciated by these ladies. It was a sort of raunchier story. It just wasn’t going to
    1:44:45 work but because I don’t memorize my stories, I spent 15 minutes pulling out all the humor that
    1:44:51 I knew wouldn’t land and leaning into the heart instead and I won that slam and it was absolutely
    1:44:57 not the story I would ever tell the next night. No one laughed at the story that night and yet
    1:45:00 they loved it. The next night, if I tell it, everyone’s going to be roaring with laughter
    1:45:04 and they’re going to love it and that’s the difference between speaking to an audience
    1:45:09 versus having a night. If I come to you and I’m an author and I say, “Listen, I don’t talk. I don’t
    1:45:15 do talks but I need to write really compelling stories. What are the key points that you would
    1:45:20 get me to learn or understand?” The first thing I would do is especially for an author, I’d say,
    1:45:24 “Let’s tell stories.” We’re not going to read from our book because no one has ever wanted that
    1:45:29 in the history of the world. Let’s tell stories and let’s find interesting stories about how your
    1:45:34 book got written, moments along the way. People are really interested in the work that other people
    1:45:38 do. They want to know how the process works. What do you do as a firefighter? Do you live
    1:45:42 in the firehouse? How many days do you live in the firehouse? What’s it like? People really want
    1:45:46 to know that stuff and the same thing for an author. If you ever hear me give a book talk,
    1:45:50 it’s never about even the content of the book. I almost don’t tell you anything about what’s
    1:45:54 inside the book. I tell you about the journey to write the book and that’s the method of
    1:45:59 let me find half a dozen stories about the writing of the book, where the idea came from.
    1:46:04 That better be a story, not just a one sentence. It’s a story. I don’t know if you’ve noticed
    1:46:09 but I can’t answer a question without going on for a long time with a story. We’re looking for
    1:46:15 those stories along the way that will lead people to want to open the book because they’ve taken
    1:46:19 the journey on the creation of the book and now they’re going to want to open it up and find out
    1:46:22 what’s inside. They’re invested in it almost. Right. The same thing with the keynote people.
    1:46:26 For someone who says, “Can you help me with my keynote?” We start at the end just like a story.
    1:46:30 What are you trying to say? When they say, “I’m trying to say three things,” I say, “Well,
    1:46:33 you can’t.” You’ve got to say one thing and then we’ll say, “All right, that’s what you’re trying
    1:46:38 to say. Let’s find a beginning that’s the opposite of that, the acknowledgement of there was once a
    1:46:42 time when you didn’t know this thing and now you know this thing.” But then the next step is to find
    1:46:46 those stories. Let’s find some stories along the way that led to that understanding because a keynote
    1:46:52 is typically 60 to 90 minutes. We can’t tell a 60 or 90 minute story but we can tell six stories
    1:46:57 over the course of 90 minutes that will support it and be entertaining. That’s what I’m helping
    1:47:01 authors do all the time is find those stories to tell. But those are stories that you’re telling
    1:47:08 people. I mean, in a book, I’m writing a book on XYZ. How do I tell a better story in that chapter?
    1:47:14 I see. Yeah. What makes a difference when you’re writing a story versus you’re telling… You can
    1:47:19 use intonation and pitch and you can speed things up and you can go faster and slower and you can
    1:47:24 pull me… I can’t do that on the page as easy. Right. No. One of the things you can feel a little
    1:47:29 better about with a book is you can actually use more adjectives because people expect them. I still
    1:47:34 don’t. The first novel I wrote, I’ll never forget it. My agent called and said, “We have no idea
    1:47:40 what your character looks like. You have not provided one ounce of description of your protagonist.
    1:47:45 That’s crazy.” And I said, “Oh, no, I kind of visualized them as me.” And she’s like, “That’s not
    1:47:50 actually a thing.” I have such a poor visual memory. That helps me as a storyteller.
    1:47:54 I lived in my home for 10 years with my wife. We were driving home one day. Somehow we started
    1:47:59 talking about the color of houses. I told her we lived in a yellow house. She said we live in a tan
    1:48:03 house. I said, “It’s yellow like the sun.” And when we pulled down the street, I looked and went,
    1:48:07 “Oh, my God, it’s yellow.” 10 years, I didn’t know the color of my house. So it’s not surprising
    1:48:12 that I don’t love adjectives anyway. But on the page, we can use a few more so that can be helpful.
    1:48:18 The paragraph and sentence structure oftentimes can replace intonation and pacing. What I’m always
    1:48:24 fighting with my editors on is this single sentence should be part of the previous paragraph.
    1:48:29 And I say, “No, it should not.” Because I wanted to stand out in the way I would punch the sentence
    1:48:34 if I was speaking it. So if you look at the way I write, especially today, actually, if you compare
    1:48:38 my first novel to my latest novel, you’ll see an enormous difference because this understanding has
    1:48:45 come to me. I can craft the sentences and the paragraphs to look such a way that it can provide
    1:48:49 some of the humor and some of the suspense. That’s why I hate closed captions. My kids watch
    1:48:53 everything with closed captions all the time. And I can’t stand it because it gives the joke away
    1:48:57 all the time. You see the joke before the person says the joke. But that’s how sometimes people
    1:49:04 write, which is they don’t allow the punch to stand alone. They lose the punch in the previous
    1:49:09 paragraph of the eight sentences and the punch is the last one. And I say, “Take the punch out and
    1:49:14 make it its own paragraph.” It looks weird in the eyes of an editor because it is associated with
    1:49:20 the paragraph before. But I say, “I’m not interested in that. I’m interested in the physical effect
    1:49:25 that the reader has when they finish the paragraph and then bang, there’s another sentence there,
    1:49:31 all by itself in a way that I love.” It’s also the reason I drop subjects all the time in sentences.
    1:49:37 So rather than saying, “I went to the store,” especially if I’m emailing people, I’ll say,
    1:49:42 “Went to the store rather than I went to the store.” Because I want to punch right away. I want to get
    1:49:46 into the sentence quicker. I don’t want them to feel the action of it. So you can start to think
    1:49:51 about things like that when you’re writing to sort of bring some of those things that we get to use
    1:49:57 on a stage onto the page. A simple version would be someone would say, “Use italics and bold.” And
    1:50:02 that’s fine. But I kind of feel like that’s a 400-year-old trick that’s been used for a very
    1:50:08 long time. And I think sometimes it actually doesn’t work. It feels almost corny to suddenly
    1:50:12 land on italicized words, or as I would much rather be doing the things like I’ve described.
    1:50:18 So thinking about the way the print lands on a page can really make a difference in the way
    1:50:22 that it’s affecting a reader. That’s really interesting. I think also your topic sentence
    1:50:26 for a paragraph pulls people in or a lot of people just read the first sentence.
    1:50:32 When you put the final point at the end of a paragraph that’s five or six sentences,
    1:50:36 you’re losing a certain percentage of your audience along the way because they’re reading
    1:50:40 the first sentence. And they’re like, “Okay, I get this paragraph. I’ll go to the next paragraph.”
    1:50:43 Right. And so they missed that point.
    1:50:47 Common mistake with storytellers all the time is I teach them you’ve been taught to write in a
    1:50:51 boring way, which is topic sentence and supporting details. That’s a disastrous way to write.
    1:50:55 Because you’re right. Once you present the topic sentence, people know you’re going to provide
    1:50:59 some evidence. And unless I’m like a nerd who wants to know the efficacy of the evidence,
    1:51:05 I’m moving on. So in storytelling, we never start with a topic sentence. If I want to say I had a
    1:51:10 really rotten grandmother, right? I would never start the sentence with, “My grandmother was a
    1:51:14 terrible person.” And then list the way she was terrible. That’s how you were taught to write,
    1:51:17 but that’s a terrible way to write. Instead, I would say, “My grandmother did this to me. My
    1:51:22 grandmother did this to me. My grandmother did this to me. And then the last sentence might be,
    1:51:26 “My grandmother was a terrible person.” Or I might say to myself as the writer or the storyteller,
    1:51:31 “I’ve made my point. I’m going to allow that topic sentence to go unsaid because I think they’re
    1:51:36 going to know it already.” And audiences love that. They want to put things together on their own.
    1:51:40 But you’re right. When you lead with a topic sentence, you’ve kind of failed most of the time.
    1:51:45 Now, there are times when this is appropriate. If you’re writing for a newspaper, right? If you’re
    1:51:50 writing scientific things, I was going to write a book with a sociologist at one point because I’ve
    1:51:55 spent 26 years now primarily in the company of women because I’m an elementary school teacher.
    1:51:59 I’m almost always the only man in a room. And I actually attended an all-women’s college.
    1:52:03 So for four years before that, I was in a classroom and I was the only man.
    1:52:10 So I wanted to write a book about sort of my reflections on living in a world filled with
    1:52:14 females for all my life. And I was going to partner with the sociologist. And ultimately,
    1:52:19 the project fell apart because she wanted to write it like a sociologist, which was topic
    1:52:23 sentence and supporting details. And I said, “No one reads your books.” And I know why because your
    1:52:27 book’s boring because you write in the way that you were sort of taught. And I wanted to do the
    1:52:32 opposite. I said, “I want to lead them to the conclusion.” And she said, “No, you start with it
    1:52:36 and then you explain why it’s the conclusion.” And we just couldn’t come together because
    1:52:40 she wanted to write a boring book and I wanted to write an entertaining book. Her book would have
    1:52:45 been respected by academics. Her book could have been read. And my book would have been read and
    1:52:50 been impactful to the people I actually wanted to be impactful, which was not academics, but
    1:52:57 basically men who maybe operate in a female world and are not doing it effectively,
    1:53:01 which is what my goal was. As a fifth grade teacher, how do you advocate that parents
    1:53:06 teach kids how to write? I tell them a bunch of things. One of the things is if you’re talking
    1:53:12 about spelling, grammar, or handwriting, you’re making a terrible mistake. You’re making writing
    1:53:16 unfun. When kids are little, they’re writing with pen and paper. And then when they get older,
    1:53:20 they’re typing. They say, “Never look at the writing that your child is doing. Always have them
    1:53:24 read it aloud.” Because what comes out of your child’s mouth is always more beautiful than what
    1:53:29 they’re putting on the page. That nonsense on the page, that’ll get cleared up eventually.
    1:53:34 We don’t have to worry about that. What we want is to make kids love to write. That is the only
    1:53:38 goal every teacher should have. Because once you love to write, you’ll start writing and you’ll just
    1:53:44 get good at it. So we want to do things like let kids write as many things as they want to.
    1:53:48 There’s mistakes where teachers say, “Well, I need you to finish this before you start that.”
    1:53:51 But as a writer, I can tell you I’ve never met an author who’s only working on one thing. There’s
    1:53:56 the thing that’s to do and then there’s the thing you’re cheating on. And then there’s the thing
    1:53:59 you’re not telling anyone about that you think is actually the greatest of all the things you’re
    1:54:04 writing. And then there’s the writing in the new genre that you want to explore. There’s all of
    1:54:08 that. And yet when we get to school, we tell kids they have to write one thing and finish the one
    1:54:12 thing and then move on. We don’t let them abandon writing. My daughter is a writer. She’s a real
    1:54:19 serious writer. I think she was 130 pages into a novel. I know at the age of 12, she’s an unusual
    1:54:22 human being. At the age of 12, she got that far into a novel and she said, “Dad, I don’t think
    1:54:25 it’s that good. I don’t think I’m going to finish it.” And I think a lot of parents would have said,
    1:54:29 “You got to finish that. Look at all the work you put in.” As an author, I said, “Yeah, if it
    1:54:34 sucks, you should abandon it.” I said, “The lesson is figure that out a little earlier next time. I’ve
    1:54:39 abandoned a lot of things. I’ve never actually gotten that far into something and needing to
    1:54:44 abandon it. So let’s try to figure out how to do that a little sooner.” But we often tell kids
    1:54:49 they can’t abandon their work. They got to finish it. Let me look at it. Parents want to see spelling
    1:54:55 and grammar and punctuation because that’s the things they understand how to fix. So they’re
    1:54:58 like, “Oh, show me that because I can actually be helpful.” When a kid reads out loud, you don’t know
    1:55:05 what to say. And I always say, “Say kind things. Say what you liked about it. Say the things that
    1:55:09 you thought were extraordinary. And the thing that you know has to be fixed or the thing you
    1:55:15 really want. Make it like the last thing you say after you say eight things.” In teaching,
    1:55:20 we try to achieve a six to one ratio, six positive comments for every corrective comment that we’re
    1:55:26 going to offer, and try to make that your home too. So just say good things so they keep writing.
    1:55:31 Because if you say things that are not kind or you’re overly critical, the thing about writing or
    1:55:37 even public speaking and storytelling is it’s not like math. Two plus two exists for everyone.
    1:55:43 If you don’t get two plus two right, you got it wrong, but it doesn’t mean that you’re like bad
    1:55:47 in a heart and mind sense. But when someone stands on the stage and shares a story, they’re
    1:55:52 essentially saying, “Here’s my humanity. What do you think of it?” When a kid writes something on
    1:55:57 a page, whether it’s an essay or a story, they’re saying, “Here’s everything I have that represents
    1:56:01 me. What do you think?” And if you go, “Well, I didn’t really understand.” Right there, you’re
    1:56:07 just like, you’re stabbing the person they are. You need a capital letter. Yeah. It makes them
    1:56:11 want to never go back to it again. And again, the goal for every teacher or every parent is to get
    1:56:18 kids excited about writing and worry less about the mechanics of writing. That comes and it’s
    1:56:22 relevant, but not important. This has been a fascinating conversation. Thank you for your time.
    1:56:27 We always end on the same question, which is a personal question. What is success for you?
    1:56:36 I just had this conversation with someone. For me, success is always that at some very
    1:56:43 future tomorrow, I’ll be doing something different than I’m doing today. I think Stasis is death.
    1:56:48 I have a company that produces storytelling content and I’ve got a business partner and
    1:56:52 he always wants to plan out six months or a year. And I know why he wants to do it. Actually,
    1:56:56 my production manager wants the same thing and I resist it all the time because I feel like if
    1:57:02 you’ve planned out six months, we don’t have the opportunity for me to stumble upon the new thing
    1:57:10 that I want to stumble upon. So for me, success is in six months, will I be doing something I never
    1:57:16 could have imagined doing today that I’m now trying and maybe loving or maybe hating, but at least
    1:57:21 finding a thing that I want to start doing that is different. As long as my life is constantly
    1:57:28 evolving and I am being presented with new challenges and new opportunities or I’m cracking
    1:57:35 doors open that I had never cracked open before, I feel like I’m successful. So avoiding this
    1:57:39 moment that we’re in right now, making sure that everything that’s going on in my life right now
    1:57:42 is not what’s happening six months from now, that’ll be perceived as success for me.
    1:57:54 Thanks for listening and learning with us. For a complete list of episodes, show notes,
    1:58:01 transcripts, and more, go to fs.blog/podcast or just Google the Knowledge Project.
    1:58:08 Recently, I’ve started to record my reflections and thoughts about the interview after the interview.
    1:58:12 I sit down, highlight the key moments that stood out for me, and I also talk about
    1:58:17 other connections to episodes and sort of what’s got me pondering that I maybe haven’t quite figured
    1:58:25 out. This is available to supporting members of the Knowledge Project. You can go to fs.blog/membership,
    1:58:29 check out the show notes for a link and you can sign up today. And my reflections will
    1:58:34 just be available in your private podcast feed. You’ll also skip all the ads at the front of the
    1:58:39 episode. The Furnum Street blog is also where you can learn more about my new book, Clear Thinking,
    1:58:45 Turning Ordinary Moments Into Extraordinary Results. It’s a transformative guide that
    1:58:50 hands you the tools to master your fate, sharpen your decision-making, and set yourself up for
    1:59:03 unparalleled success. Learn more at fs.blog/clear. Until next time!
    1:59:13 [BLANK_AUDIO]

    Shane Parrish sits down with Matthew Dicks, a renowned storyteller, author, and teacher, to explore the nuanced art of storytelling. They go deep into the techniques that turn mediocre stories into masterful ones.

    You’ll learn what makes a story truly resonate with an audience, how to identify and highlight the pivotal moments that create emotional impact, the architecture of compelling stories, how to structure narratives for maximum engagement and how to use techniques like suspense, stakes, and humor to keep audiences on the edge of their seats. This conversation covers broad frameworks, like how to structure a great story—and the granular details, like when you should talk quietly to refocus the audience.

    Matthew Dicks is novelist, storyteller, columnist, playwright, blogger, and teacher. He’s published fiction and non-fiction books, the latter of which include: Storyworthy: Engage, Teach, Persuade, and Change Your Life Through the Power of Storytelling and Someday Is Today: 22 Simple, Actionable Ways to Propel Your Creative Life.

    (00:00:00 Intro

    (00:03:28) What makes a good story

    (00:06:57) Stories vs anecdotes

    (00:08:29) A Story: The Spoon of Power

    (00:17:42) The art of story architecture

    (00:21:28) Create compelling stories

    (00:36:30) Common mistakes & how to fix them

    (00:55:01) Strategic listening

    (01:03:32) Can you lie in stories?

    (01:05:10) 'And' stories vs. 'but / therefore' stories

    (01:10:05) Finding engaging stories in everyday life

    (01:20:05) Structuring a story

    (01:24:00) Storytelling for an unforgettable brand

    (01:31:20) Learn confidence

    (01:38:40) Writing vs telling a story

    (01:51:53) Teach kids to love writing

    (01:55:15) Define success

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at https://fs.blog/newsletter/

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠

    Watch on YouTube: https://www.youtube.com/@tkppodcast

    Sponsor: Overlap https://www.joinoverlap.com/ – Listen to podcasts like never before.

  • The Marketing Expert: How to Get More Sales, Loyal Customers, and Bigger Promotions

    Unlock the secrets of product positioning with April Dunford.

    Learn how to:

    • Identify customer pain points
    • Craft compelling sales copy
    • Stand out from big competitors

    Whether you're a startup founder or corporate executive, this episode will revolutionize your marketing strategy. Designers, engineers, and marketers: discover insider tips to boost your career and drive results.

    Don't miss this deep and practical conversation on positioning your product for success.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at https://fs.blog/newsletter/

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠

    Timestamps:

    (00:00) Intro

    (02:07) Positioning, explained

    (16:47) Why is positioning important?

    (20:40) B2B vs. B2C positioning

    (29:03) When re-positioning a product failed

    (32:31) How to identify customer's pain points

    (34:35) How to position a product on a sales page

    (38:06) How technology has changed positioning

    (41:40) How to evaluate product positioning

    (45:43) Who's in charge of positioning at a company?

    (50:27) On storytelling

    (56:35) Should a company have a point of view on the market?

    (1:00:21) Dealing with gatekeepers in B2B marketing

    (1:03:02) Mistakes people make with positioning

    (1:05:21) What schools get wrong about marketing

    (1:08:59) Secrets of B2B decision-making

    (1:11:18) On success

  • #200 Brian Halligan: Scaling Culture from Startup to IPO

    AI transcript
    0:00:04 If I put 10 calories and try to improve the feature, I get like a thousand out.
    0:00:09 And so I more paid attention to the features and tried to get better at the features.
    0:00:10 And this took me a while to figure this out.
    0:00:14 And over time, just tried to hire people around my weaknesses.
    0:00:16 And I have plenty of them.
    0:00:20 I really looked at hiring the best I could in the areas where I was weak,
    0:00:21 rather than trying to become an expert at it.
    0:00:23 And I’ll give you one area.
    0:00:26 And for years, I was convinced I was a great product designer.
    0:00:27 I’m not.
    0:00:29 I just don’t have that genetic code.
    0:00:31 I was actually quite bad at it.
    0:00:35 It took a while before that feedback sort of hit me between the eyes.
    0:00:39 We started hiring people really good at it and enabling me to let go of it.
    0:00:48 Welcome to the Knowledge Project.
    0:00:50 I’m your host, Shane Parrish.
    0:00:52 In a world where knowledge is power,
    0:00:56 this podcast is your toolkit for mastering the best what other people have already figured out.
    0:01:00 If you’re listening to this, it means you’re not a supporting member.
    0:01:05 Members get early access to episodes, my personal reflections at the end of episodes,
    0:01:08 which a lot of people say is quickly becoming their favorite part.
    0:01:13 No ads, exclusive content, hand edited transcripts, and so much more.
    0:01:16 Check out the link in the show notes for more information.
    0:01:18 My guest today is Brian Halligan.
    0:01:23 Brian reshaped the way that we think about marketing, sales, and customer service.
    0:01:26 With his co-founding of HubSpot in 2006,
    0:01:29 he pioneered the concept of inbound marketing,
    0:01:34 emphasizing the importance of creating valuable content to attract customers naturally.
    0:01:38 Under his leadership, HubSpot has grown from a startup to a publicly traded company
    0:01:41 and a global leader in the industry,
    0:01:44 empowering millions of businesses to grow better.
    0:01:48 I first met Brian at a Sequoia conference where we both spoke.
    0:01:55 In the conversation we talk about the phases of a CEO from startup to IPO and how the skills
    0:02:00 change, why interviews are a terrible predictor of on-the-job success and what you can do about it,
    0:02:05 why hiring panels are flawed, what changed after his near-death experience,
    0:02:10 why Jerry Garcia from The Grateful Dead is one of the most underrated CEOs
    0:02:14 and what you can learn from him, why consensus is the enemy of scale,
    0:02:17 why you need to have winners and losers,
    0:02:21 what he learned from Steve Jobs and of course the future of inbound marketing.
    0:02:24 It’s time to listen and learn.
    0:02:44 Brian, I want to start with the role of a CEO and the journey from startup to scale up to public company.
    0:02:51 It’s a remarkable journey and I was on that journey for about 17 years and a couple years ago.
    0:02:59 I stepped out of that journey, Shane, in a relatively dramatic way and you may have heard
    0:03:06 this story before. I was snowmobiling up in Vermont and I was taking a snowmobile from
    0:03:12 Rangewater, Vermont to Woodstock, Vermont, coming to the parry part of the trail
    0:03:21 and went up over a lip and went down on the other side and just completely lost gravity,
    0:03:28 went straight down up a cliff and smashed at the bottom. The snowmobile was in about a million
    0:03:37 little pieces. I was passed out for a long time and then I woke up, it was about four in the afternoon.
    0:03:45 It was quite cold and nobody knew where I was. Confident I was going to die and I sat there for
    0:03:53 a good hour thinking about, you know, if I do make it through then what? And I never bring my phone
    0:03:57 when I snowmobile because in Vermont there’s no signal, all darn state there’s no signal,
    0:04:01 but an hour in I’m like maybe I’m on it. It turns out I brought it like a moron
    0:04:09 and I checked it and dialed 911. Shane, have you ever dialed 911? I have, yeah. It’s an amazing
    0:04:16 service. If that was a start-up I would be thrilled to invest in it. It’s amazing. The woman was sort
    0:04:25 of very, very good at it and she says, I remember she said sit tight and mind you I have, I’m a mess,
    0:04:31 many, many, many broken bones. And so it’s like, yeah, I’m not going anywhere. And then she called
    0:04:37 the two local fire stations and they’re volunteer and there’s no one there and so then she has to
    0:04:42 track down the mobile phone numbers of all the firefighters and the rescue people, call us them
    0:04:46 at home. They hop in their snowmobiles and they come and find me. By the time they found me,
    0:04:53 you know, it’s pitch black, it’s really cold out and basically they went to work on me. I kind of
    0:04:58 put Humpty Dumpty kind of back together on the side of the mountain, towed me to a flat area
    0:05:03 which is two miles away, helicoptered me to Dartmouth University and there they really
    0:05:12 put Humpty Dumpty back together over lots of surgeries a lot of time. And I remember that
    0:05:19 because that was the end of my CEO journey. I had been quietly saying to myself that I didn’t love
    0:05:26 being CEO of a spot, frustrated with just the core work. And I remember saying to myself at the
    0:05:33 bottom of that cliff, I make it out, I’m not coming back. And so I was out of work, a terrific woman
    0:05:39 took over for me. It’s a funny story about that while I was gone. And as I got back on my feet,
    0:05:43 everyone just assumed I was coming back like, no, no, no, I’m not coming back. You’re doing a great
    0:05:48 job. You got this. And I actually think a lot of CEOs would be a lot happier if they did something
    0:05:56 similar like that. Not some real part. I assumed, yeah. What went through your head when you sort
    0:06:01 of couldn’t move? You’re stuck in the snow. And you couldn’t contact anybody like what are the
    0:06:06 thoughts that we’re going through your mind? I’m not super comfortable telling everyone all my
    0:06:13 thoughts on this, but a lot of thoughts around if I make it out of this somehow, someone finds me
    0:06:22 randomly, what’s going to change? But then I mean, the net net of all of them is life can be very
    0:06:30 short, very short. You never know what will happen. And don’t waste it. Don’t waste time doing something
    0:06:37 that doesn’t make sense for you. You know, refactor your life. And I refactored my personal life and
    0:06:43 I refactored my professional life pretty dramatically. And these days, I really don’t do anything I want
    0:06:49 to do. And I wanted to do this podcast. It’s a really good podcast. Thank you. Tell me about
    0:06:55 what the changes were. Like, were they all at once? Were they slow? Like, be specific or bear?
    0:07:02 Sort of. I always wonder this because I had a near death experience to you a couple years ago.
    0:07:09 And I remember pondering life and thinking about, oh man, if this is the end, like, did I spend the
    0:07:15 time the way that I wanted to? And if it’s not the end, like, what is it that I really want to
    0:07:21 change in life? And what impact will that have? And I’ve done such a better job of sort of taking care
    0:07:27 of my body and my mind and sort of self care, if you will, just as a big word to encapsulate that.
    0:07:34 I changed a lot of relationships in my life. I sort of invested in some and then I wouldn’t say
    0:07:39 broke off some, but definitely stopped investing in some. And so I’d love to hear about the specific
    0:07:44 things that you did that you sort of were like, okay, well, this is this is the realization.
    0:07:52 It’s exactly like that. When I say refactor relationships, I triple down on family relationships.
    0:07:58 I’m gonna say ended relationships, but I certain people that didn’t give me energy in certain
    0:08:04 ways and just stopped engaging with. And it’s a much smaller group I engage with these days.
    0:08:10 Professionally, I stopped my main job. I mean, I founded HubSpot 17 years earlier. It was kind
    0:08:17 of my life and everything was sort of wrapped up in it. And now chairperson some small but
    0:08:24 not in the day to day. I got obsessed with maybe similar to you with longevity, like, well, if
    0:08:31 I’m going to live to 8590, I want to be very strong living to 8590. So basically anything
    0:08:37 Peter Atea or Andrew Huberman said to do, I did, except they drink a little, but I basically do
    0:08:42 everything they do lost a lot of week, got much better shape. And so lots and lots and lots of
    0:08:48 changes. But I think the macro one was just love your family, tell your mom you love her,
    0:08:54 hug your kids at one more time today, and don’t waste time. You know, do things that really
    0:08:58 are rewarding to you. One of the big things for me was like just being home for the kids every
    0:09:02 day after school, I just made a commitment. I was like, I’m going to be here every day when they get
    0:09:07 home. I’m not going to push it at the office a little longer. I’ll find other ways to do that
    0:09:12 because I’m also sort of balancing ambition and all this other stuff. But it wasn’t going to come
    0:09:17 at the expense of that time with them that I know, inevitably I’ll look back on and be like,
    0:09:21 man, I just wish for, you know, a little bit more cookies and milk. And they say the dying
    0:09:26 wish of every man if they just want another day. And I think about that a lot, like what am I going
    0:09:31 to wish I had done being in my life. So Sheen, while we’re on this, why don’t you tell us what
    0:09:36 happened to you? I didn’t know for a long time what was happening to me. I just had symptoms
    0:09:41 and they kept getting worse and worse and worse. And so like, I had a fever, then I had an earache,
    0:09:46 and this was during COVID. So everybody thought it was COVID. So I went to the doctor
    0:09:49 and they were like, oh, you don’t have an ear infection, you’re fine, you don’t have COVID,
    0:09:56 go home, suck it up. And then I woke up on a Saturday. And I remember just making a latte,
    0:10:03 and then I was drinking it and it spilled down my chest. Okay. And I was like, what the heck?
    0:10:08 I’ve been drinking out of cups since I was like two, you know, rarely do I spill something.
    0:10:15 And I went to the bathroom and I looked in the mirror and the left side of my face was 100%
    0:10:21 paralyzed. And so I had no movement whatsoever. I felt like I was moving things. But like,
    0:10:27 if I raise my eyebrows, like you can see now on YouTube, if I raise my eyebrows, this, it was
    0:10:32 actually kind of beautiful in hindsight, it was freaky when it was happening. Because this, and
    0:10:37 it just didn’t move. And I was like, Oh God, like I got to go to the doctor. My first thought was
    0:10:41 actually not to go to the hospital, which is a little weird. So I show up at my former family
    0:10:47 doctor’s office on the weekend and they’re like, you need an appointment. It’s Saturday.
    0:10:51 And I was like, well, I can’t move my face. So I think that qualifies as like, maybe I get an
    0:10:57 appointment today. And she’s like, Oh my God, yes, you see the doctor right away. I go into the doctor.
    0:11:01 And she’s like, I think you’re having a heart attack. And I was like, well, this doesn’t make
    0:11:08 a ton of sense, right? Like, maybe, I don’t think that’s the case. However, you’re the doctor,
    0:11:12 I don’t know what I’m talking about. And she’s like, you need to drive to the hospital. I was like,
    0:11:16 well, if you think I’m having a heart attack, why are you telling me to drive to the hospital?
    0:11:21 Yeah, it was like, these two things don’t align. Anyway, I go to the hospital, I see a doctor right
    0:11:25 away. I mean, for all of the knocks on Canada’s healthcare system, there’s certain things in
    0:11:30 triage that they definitely see. I saw a doctor probably within three minutes of getting to the
    0:11:34 hospital. And, you know, he’s like, you’re not having a heart attack. It was like, thanks. And
    0:11:39 then it’s like, go sit and wait for like 12 hours. Well, we handle all the other urgent people,
    0:11:43 which is fine. And so he sees me and he’s like, I’m going to give you some pregnant zone. And
    0:11:49 you’ll be fine. And I remember going like, wait, what? Like, you’re just going to give me some
    0:11:54 steroids and like send me home. Like, nobody cares about how this happened. I’m a healthy at the
    0:11:58 time, 42 year old male. I’m not overweight. You know, I don’t smoke. I don’t excessively drink.
    0:12:03 I have nothing that would sort of indicate this. When I was in the waiting room for the 12 hours,
    0:12:07 I started talking to a whole bunch of neurologist friends and they were like, you should get tested
    0:12:16 for these four things. And it was like HIV, Lyme disease, mono and something else. And I was like,
    0:12:22 can I just get a requisition to get tested for this? And he’s like, no, it’s just like a waste of
    0:12:26 the medical system. Oh man. And I was like, wait, what? Like, that doesn’t make sense. He’s like,
    0:12:30 go talk to your family doctor. They’ll figure that out. I got to go help out their patients.
    0:12:34 How’s your faith at this point? Well, it’s still paralyzed, right? So he’s like,
    0:12:38 you’re going to recover. He’s like, you have a 99.8% chance of recovery. I’m like,
    0:12:42 I’m not worried about recovery. I’m worried about what caused this, right? Like, before we figure
    0:12:48 out the future, we have to figure out like, what am I doing something? I need to stop. And
    0:12:53 I went to my doctor on Monday and I was like, Hey, can I get a requisition for these blood tests,
    0:12:57 which in the States, you just show up and do it. And in some provinces in Canada,
    0:13:01 you can just show up and do it too. But in Ontario where I live, they won’t allow you to do that.
    0:13:07 You need a requisition. Anyways, she says no for whatever reason. She’s like, if the ER doctor
    0:13:12 thought you needed it, he would have given it to you. Please, please fuck off politely is sort of
    0:13:16 what she said. And I was like, well, this is so weird. And I’m like thinking about this. And then
    0:13:21 I wake up a few days later and I can’t stand. Oh man. So the backs of my knees,
    0:13:26 like if I’m moving, I’m fine. But if I stand still for like 10 seconds, I’m literally crying.
    0:13:30 There’s tears coming out of my face. I’ve never been in so much pain. It’s like somebody stabbed
    0:13:36 the back of my legs with a knife. And I was like, wow, this is like so crazy and up like emailing
    0:13:41 my doctor again. I’m like, I really think I should get tested for a whole bunch of stuff at this
    0:13:45 point. Like, I don’t know what’s happening. And she’s like slow knowing me. She’s like,
    0:13:48 it’ll get better. Just give it some time. And then like three or four days later,
    0:13:54 I wake up and I can’t open my mouth. Like I have a lock job, basically. I can open it like a
    0:14:00 centimeter. And luckily to cut a long story short, I end up talking to a close friend of mine
    0:14:04 who happens to be an eye surgeon. She’s like, I’ll give you the requisitions.
    0:14:11 She gives me the requisitions. I test positive for Lyme disease. I start the treatment for Lyme
    0:14:16 disease because when you test positive, you can actually, you can fix it. And so I start taking,
    0:14:21 I think it’s doxycycline, the antibiotic, which is the treatment for that and instant
    0:14:26 improvement. The cool part of this is I saw a neurologist, who tested me for like 200 different
    0:14:31 things. You know, I went down to give blood and the ladies like, this is the maximum blood we’re
    0:14:38 allowed to take out of you. I was like, oh, this does not sound really good. And I came back completely
    0:14:43 normal aside from the Lyme disease. So I’m glad we caught it. Glad we solved it, you know,
    0:14:49 made a lot of changes after that. I want to go back to you and HubSpot though. So like you’ve
    0:14:56 been on this journey for a long time from startup all the way to scale up to now public company,
    0:15:02 sort of chairman, walk me through the different phases a CEO goes through. I personally break
    0:15:12 them out like two to 20 employees, 20 to 200, 200 to 2000, and then 2000 plus. And I kind of
    0:15:19 grate myself in these seasons. Like, I give myself a B in two to 20, like two to 20, I was doing
    0:15:25 customer development, I was the lead user of the product, I was marketing it, but I’m a crappy
    0:15:33 coder. And so the heavy lifting was really done by my co founder. 20 to 200. I was kind of in my
    0:15:42 element. I loved it. I was in a 200 to 2000, maybe a B, and then 2000 to 2000, maybe a D. I
    0:15:48 really didn’t like the work. And I think that’s the case with a lot of CEOs and a lot of executives,
    0:15:53 a lot of people like people have a season that they enjoy and they get good at it. I think
    0:15:58 that’s very much the case for me, which was the one where you felt like you had to grow the most
    0:16:06 to fulfill the role really through the whole thing. I fell under qualified to do it. And
    0:16:14 I don’t know about you, but I still have imposter syndrome here on the podcast. And I had it
    0:16:18 throughout. I think one of my superpowers actually is I’m a learner and I try to get better and I
    0:16:25 listen to other people and I take feedback pretty well. And we had a mechanism that was quite good
    0:16:30 for giving me feedback. Really good, actually. My co founder was responsible for my annual 360
    0:16:35 review. He’s super introverted. So he didn’t want to go around and talk to other people.
    0:16:41 So he sent a net promoter survey out to the board, the execs, customers, all bunch of people,
    0:16:45 30 different people. He got a lot of responses, maybe 25 responses. And there were two questions,
    0:16:52 Jane. One was on a scale of one to 10, how likely you refer Brian as CEO of HubSpot? And two,
    0:17:00 why did you give that answer? And people wrote novels about it. And it’s hard for CEOs to get
    0:17:05 feedback, very hard. Very few people get straight feedback to the CEO. So this was a good way to
    0:17:12 get the end was big enough that people gave very, very strong feedback. And he summarized to give
    0:17:20 me my net promoter score. And then I started reading my review. And each page was different.
    0:17:23 So the first several pages were my features and he’s a software developer. He’s like,
    0:17:28 here’s your features. So page number one, you’re very good at explaining HubSpot’s vision. And
    0:17:35 then he pulled out quotes from the novels people wrote. Page two, page one through 10 were features.
    0:17:40 And they were great. And I was pretty confident that I was the best CEO ever invented after
    0:17:46 reading for Sunday. And then the bugs came. Page 11 was the bugs. And there were 12 pages of bugs.
    0:17:52 And I was pretty convinced I was the worst CEO ever invented by the end of the 12 pages. And I
    0:17:56 remember when I finished it, I’m not a Scotch striker. So I remember I poured up class of Scotch.
    0:18:05 But that mechanism for getting feedback was we still use it. So the current CEO gets the same
    0:18:12 type of a thing. And it’s very, very, very useful. I think founder CEOs often have this problem
    0:18:17 that like, founder CEOs like to make decisions, like to be involved with the details, like to
    0:18:22 drive things, like to be in the middle of things. And that’s a great strength when you get 10 people.
    0:18:27 But that great strength you have turns into your greatest weakness when you have a thousand people.
    0:18:31 You’re trying to manage everything, trying to manage your way to know everything that’s going on.
    0:18:36 And so the consistent feedback was like, how do you get yourself out of the details? How do you
    0:18:39 stop working in the business? How do you start working on the business? That was kind of a
    0:18:46 common thread that I worked on across all 17 years. Was that feedback enough for you to walk away
    0:18:51 going like, okay, I see this, people are giving me feedback, I accept it, there’s some truth to this?
    0:18:58 Or was there a part of you that was like, no, they’re wrong? It was pretty, pretty accurate.
    0:19:03 And I’m shaking my head through most of it in the software business. Sometimes there’s something
    0:19:09 that someone thinks is a bug, but it’s a feature to somebody else. So some of my bugs, I actually
    0:19:14 thought were features. Like, I can be really passionate about something. And probably get
    0:19:21 so passionate, it’s like a little scary sometimes. I’m like, fine, if like two out of 30 of you think
    0:19:25 that and the rest think it’s a good thing, I can live with that. So there were several things that
    0:19:30 I was like, that’s a bug that I can live with. And every year I try to work on one or two of the bugs.
    0:19:35 If I put 10 calories and try to improve the feature, I get like a thousand out. And so
    0:19:41 I more paid attention to the features and tried to get better at the features. And this took me a
    0:19:46 while to figure this out. And over time, just tried to hire people around my weaknesses. And I have
    0:19:51 plenty of them. I really looked at hiring the best I could in the areas where I was weak,
    0:19:56 rather than trying to become an expert at it. And I’ll give you one area where I made a mistake
    0:20:02 on this. In the early days of HubSpot, I fashioned myself like a great product designer. I don’t
    0:20:07 know why I did. I think basically, because I followed Steve Jobs, everything he did,
    0:20:13 read every book about him, watched his keynotes, and obsessed with him as CEOs are my era.
    0:20:18 And I was like, I can do that. I can figure it out. I took classes and I really dug in.
    0:20:24 For years, I was convinced I was a great product designer. I’m not. I just don’t have that genetic
    0:20:32 code. I was actually quite bad at it. It took a while before that feedback sort of hit me
    0:20:36 between the eyes. And we started hiring people really good at it and enabling me to let go of it.
    0:20:41 What are some of the lessons you took away from your sort of studying of Steve Jobs,
    0:20:48 if you will, that you used effectively? One of my favorite things on the Interwebs
    0:20:52 is his keynote. And his commencement speech at Stanford, I think, is quite good.
    0:20:58 And once I’ll look back at that, he was faced with cancer. And the way he approached that was
    0:21:05 really interesting. And he says it in a different way, but he didn’t waste any time. That’s for sure.
    0:21:11 And then HubSpot a lot is based on his work. We started the company out of Sloan, while we were
    0:21:15 business school. And at Sloan, they did field trips. And we did a field trip to the West Coast.
    0:21:21 And I remember this one day was a really good day. In the morning, we visited Apple. It was like a
    0:21:27 year after the iPod came out and it was on fire. And I remember Steve walked into the auditorium.
    0:21:32 It was about 100 of us. And he was in a bad mood. And it was pretty intimidating.
    0:21:37 And I remember he looked, he looked out and he basically was like, what are you people doing
    0:21:41 here for business school? Like he wasn’t into the whole business school thing. And one of my
    0:21:46 classmates, JP Gorski, raised his hand up high and he said, we’re here from Sloan School of Management
    0:21:50 and we’re studying innovation, disruption. And we thought we’d learn from the best.
    0:21:55 And as Steve just melted, he liked that a lot. And then he talked about how we came up with the
    0:22:01 iPod. And kernels of this very much made it into the way we thought about HubSpot. And the iPod,
    0:22:06 the way he described, was really simple. There were MB3 players before, but you had to be a real
    0:22:11 geek to use one. And very few people were buying them. And you had to burn music to them as a pain
    0:22:16 in the neck to do it. And he said, I really wanted something simple. So I wanted to take an MP3 player,
    0:22:22 build a freemium app, iTunes, and then work with the record company, enable you to download a song
    0:22:28 for 99 cents a song. And he said, that’s a one plus one plus one equals 10 for the consumer.
    0:22:33 And that was how we originally came up with HubSpot, like a marketer in that day and age,
    0:22:38 putting Google Analytics and a blog, social media tracking tools and SEO tools and marketing
    0:22:44 automation, CRM and all this stuff. And it was complicated, big, hairy problem. And so we used
    0:22:50 that analogy very much that Steve used, like, how do we make an all one system where the one plus one
    0:22:56 will equal 10 across all systems. So the morning was really influential. And then that afternoon,
    0:23:02 when kids were in business school, we visited a little startup called Salesforce.com and their
    0:23:07 CEO, Mark Benioff. And so that day was really formative and thinking about HubSpot.
    0:23:12 Oh, that’s crazy. Had you guys just taken your tuition and invested in both of those companies?
    0:23:15 I know. That’s a good point.
    0:23:22 That’s crazy. So you started it in school. How did you learn how to hire and fire people?
    0:23:26 Like, how do you know you have the right fit? How do you know when it’s time to move on from
    0:23:31 somebody? You know, I think about that as somebody who went from school to a large corporation,
    0:23:35 and they have all these policies and procedures in place. And then now as an entrepreneur,
    0:23:42 I’m dealing with CEOs all the time. We’ve never really hired and fired. And I’m curious as to what
    0:23:47 wisdom you can sort of pass on to people. Most CEOs, including myself, are quite bad at this.
    0:23:56 And I’ve identified some things that may be useful hacks, may not be useful hacks.
    0:24:01 This is also a seasoned thing. If you’re hiring someone when you’re 200 employees,
    0:24:05 I’d see the mistake everyone makes, and we made the mistake over and over and over and over and over
    0:24:10 again, that if you’re hiring someone that you want to go from two to 2000, you’re just really
    0:24:16 attracted by that person who came from Google or Microsoft or whatever huge company with a huge
    0:24:23 resume and all that stuff. And once in a blue moon, that’ll work. But generally, that’s a failure
    0:24:30 condition. If you hire the press release hire that said a couple of phases over you. I don’t think
    0:24:34 it normally works. Same thing for board members. My analogy for being a CEO is like you’re an
    0:24:41 ice climber going up the ice, and it’s treacherous, and you can easily slip. And what you’re looking
    0:24:46 for are executive members who have been up that same sheet of ice, but in the last three or four
    0:24:52 years, what you don’t want is somebody who’s 20 years over you, or someone who spent their whole
    0:24:57 career on top of the hill looking down on the ice climbers, you want somebody just a little bit
    0:25:00 ahead of you on that ice climbing mission. So that’s one thing I think people get wrong.
    0:25:08 I also think I think most people are bad interviewers, including myself, like I’ve missed a bunch.
    0:25:14 And I think the core reason for that actually isn’t the interview, it’s interviewees,
    0:25:21 interviewees are so good in interviewing, you’re interviewing a VP or a C level person for
    0:25:28 company like HubSpot. They’re good at interviewing. And if they’re not, they’ve been coached, they’ve
    0:25:34 looked on YouTube, like, I just think everyone, including myself, overvalues their ability to
    0:25:43 select talent in the interview process. I see that as a overconfidence. I think also like they
    0:25:48 see it with the CEOs I work with, and I see it as companies get bigger, like you’ve got a panel of
    0:25:55 four people evaluating Shane as a potential VP. If all four people like Shane versus two people
    0:26:00 love Shane, two people are like, I’m not sure about Shane. You always go with the person
    0:26:04 with the least amount of weaknesses and that lowest common denominator higher. I think that’s
    0:26:11 a failure conditions. We’ve noticed that over time, I take two loves and two mezz over three
    0:26:18 likes. I think that’s a best practice that people should be doing. And I think people should be
    0:26:22 obsessed with reference checking. And yeah, calling the references, getting good at that,
    0:26:29 getting good at finding people in your network. I would guess I’ve coached tons of CEOs on average
    0:26:34 for every director VP, C level person that’s hired within 18 months, they’re gone.
    0:26:39 How do you know when it’s time to move on from somebody? I guess in a way, you’ve either made
    0:26:44 the wrong hire or it’s the wrong environment for that person to succeed or however you want to
    0:26:49 phrase that. But how do you recognize that? I had a CEO the other day tell me is like the moment
    0:26:54 you start thinking about it, that’s the moment to act on it. I’ve never seen anybody change
    0:26:59 their mind from that initial thought. How do you think about that? What’s your reaction to that?
    0:27:05 Unfortunately, I feel like that’s conventional wisdom. And I think it’s largely puts with what
    0:27:12 I’ve seen. I rarely change my mind on people in that kind of context. And everyone says,
    0:27:18 when you know, you should move quickly. I never had it call me weak.
    0:27:24 Have you ever regretted not moving quickly? It’s sort of interesting to contrast that to
    0:27:29 sort of like Jensen, who’s been talking recently about, you know, he doesn’t really fire people,
    0:27:35 he sort of like berates them into being better in a public way, berate is probably the wrong word,
    0:27:40 but he sort of wants to pull you towards excellence rather than fire you. But I don’t
    0:27:45 think that’s practical for most people or most organizations. So you and I both sat through
    0:27:51 the same Jensen presentation. Yeah. So it’s been a lot of time thinking about CEOism and coaching
    0:27:58 CEOs. And there’s sort of like a set of best practices for being a CEO is almost like a CEO
    0:28:03 unofficial school. What’s confusing about the CEO school that’s been around for a long time
    0:28:14 is arguably the two, I’m not going to say best, but two amazing CEOs are Jensen at NVIDIA in Elon,
    0:28:25 at SpaceX, etc. And they completely ignored almost everything about CEO school, CEO lessons,
    0:28:32 CEO best practices. And I find that fascinating. Talk to me about that, right? Where maybe there
    0:28:37 is no model, we hold up this model, we teach it, it’s easy to do. We say the right things,
    0:28:42 but in reality, the people that end up changing the world are often the opposite of all of the
    0:28:47 points that we teach. Berkshire Hathaway, for example, if you looked at their board of directors,
    0:28:52 I don’t think they pass any of the sort of like standards that business schools would set for what
    0:28:58 an independent board looks like. And Constellation Software is another example of that. So with
    0:29:03 Shopify, all these companies that have sort of done these remarkable things, they don’t look
    0:29:09 anything like what we’re taught in business school. When I was maybe like 50 employees, Shane, I joined
    0:29:15 the CEO group. And I largely joined the group because I respected one of the CEOs and I got him
    0:29:22 Colin Engel. And Colin made the room of vacuum cleaners that I robot. And I might describe my
    0:29:29 relationship with him in two words, man crush. I was a fan of Colin’s. And I remember this first
    0:29:36 CEO group, we met all day, once a quarter. And there’s a couple funny things about the CEO group.
    0:29:44 But I joined, I sure were spending some time with these 10 CEOs. And two were kind of,
    0:29:48 they’re quirky is the way I would describe them and very unique personalities. And the other were
    0:29:55 like central casting, blue blazer, tan pants, like really central casting backgrounds and
    0:29:59 everything. And they acted what I thought CEOs were supposed to act like. And I kind of acted
    0:30:03 like that back then. And when I looked at the numbers, we all showed each other your numbers.
    0:30:07 The two quirky founders CEOs were crushing it and the eight central castings were with a,
    0:30:13 and I was like, enough with trying to be central casting, I’m going to be exactly who I am. And
    0:30:18 we’re going to make everybody else work around who I am. And it’s a lot easier being who you are
    0:30:23 than somebody else. Everybody else has taken that was when I was like, I’m quirky too. I don’t
    0:30:28 care that I’m quirky. I’m just going to lean into my quirkiness and be myself. And I’ve sort of been
    0:30:34 that way ever since. And I don’t think there’s a profile of CEO. You’re talking earlier, how you’d
    0:30:40 love to hire somebody with two, I love this person and to Matt, is that because of that? Because
    0:30:44 the person who says all the right things, everybody’s going to be okay with. But the
    0:30:48 unconventional person, you’re going to get really too extremes, you’re going to get love or hate.
    0:30:53 I think what happens as a company scales is you hire for a lack of weakness,
    0:31:00 not for spiky strengths. And that’s institutionalized in the scale ups,
    0:31:05 interviewing, panel and process. And I think that’s a mistake. And that’s one of the few things
    0:31:11 that leads to really mixed success in hiring execs in these companies. Who do you think is
    0:31:20 the most underrated public company CEOs? I think the guy running Uber has done a nice job. That was
    0:31:27 a very, very, very difficult thing he took over. He got profitable. I think he’s done a really,
    0:31:35 really nice job, very quietly done a very good job. How about you? Oh gosh. I think Toby is massively
    0:31:39 underrated. We were sort of talking about him during the break here. What are your thoughts on
    0:31:44 Toby? Toby reminds me a lot of Colin Engel, actually, just whip smart. One of the things
    0:31:51 I like about Toby and Colin is they’re very first principles thinkered. They don’t care to receive
    0:31:56 conventional wisdom. They’re going to think it through and scratch. And sometimes you’re going to
    0:32:00 get it wrong. But a lot of times they’re going to get it right and do something really innovative
    0:32:06 and smart. Toby’s got so much right. He’s got some big stuff wrong. But for the most part,
    0:32:10 he’s done a really, really good job. He’s certainly not central casting.
    0:32:15 Certainly not. But I think he’s brilliant and a great CEO and he’s running a great company.
    0:32:19 I like that term central casting. Another person who stands out to me,
    0:32:23 those people are probably familiar with now, but 10 years ago, nobody would have ever heard of is
    0:32:30 Mark Leonard from Constellation Software. He’s not really on my radar. Yeah, exactly. I think they
    0:32:36 only issued equity at the IPO and they’re, I don’t know, must be $50 to $60 billion company now.
    0:32:41 See, I wouldn’t put Toby in the underrated because I rate him so highly and I feel like
    0:32:47 people in my circles rate him highly. Yeah, I rate him highly too. And I still think I underrate him.
    0:32:52 Okay, got it. Yeah. Yeah, totally. There’s one other interesting thing that’s, I think,
    0:32:58 relevant out of that CEO group. I remember going to the CEO group meeting, the first meeting chain.
    0:33:07 And what I didn’t realize is there is a topic for the whole day. And one of the quirky things about
    0:33:12 HubSpot up into that point is we didn’t have any HR people. We didn’t allow anyone to talk about
    0:33:16 culture because we didn’t think we could measure it. It was too squishy. And I remember I arrived
    0:33:23 there on the first day. First thing that got put up was the topic of the day and sure enough, I was
    0:33:29 culture. And I remember thinking that’s gonna be a big, big waste of time. At least I got to know
    0:33:35 my main crush. The whole morning I was pretty disengaged. And then Colin at lunchtime, I remember
    0:33:39 if he said to me, it’s like, why aren’t you engaging? You don’t like stopping here? I said,
    0:33:46 no, I think it’s a waste of time. He said, Brian, culture, culture is how people make decisions
    0:33:54 when you’re not in the room. Culture is how companies really scale. Okay, okay, okay, okay,
    0:33:58 got it. And then the afternoon sort of engaged with it. And then the next day he’d go to the
    0:34:03 office. And my co-founder, Darmesh says, how’s the, how was it? How’s Colin? Like, how did it go?
    0:34:08 I said, it was really, really good. There’s, there’s one, maybe one topic a day. He said,
    0:34:16 oh, it’s the topic. I said, it’s culture. Oh, shit, what a waste of time. I said, no, Darmesh,
    0:34:22 culture is how people make decisions when we’re not in the room. Culture is how HubSpot’s gonna
    0:34:29 scale. And he said, okay, and it’s very hard for me to assign work to my co-founder to this day.
    0:34:36 Somehow I assigned him to be the cultures are HubSpot. And he did an excellent job. And still
    0:34:41 is doing an excellent job of marshaling the culture from, you know, 15 employees, 8,000 employees.
    0:34:47 And he did two clever things. First thing he did is we’re big on net promoter services. He
    0:34:51 surveyed all the employees, scale them what to 10, how likely to refer HubSpot as a place to work.
    0:34:57 And then why? Again, people wrote novels about it. And he kind of broken all up into,
    0:35:04 you know, different topics. And then he wrote a PowerPoint presentation called the HubSpot Culture
    0:35:09 Code that basically described the relationship between employees and a company, and just sort
    0:35:14 of outlined how we thought about culture. And then he posted it on the internet and it blew up on
    0:35:20 the internet. But we continue to do that net promoter score once a quarter for the last 15 years.
    0:35:25 And we’re tracking our net promoter score per quarter. And that’s been very, very useful. Then
    0:35:31 we post every response to the net promoter survey and culture on the wiki. And then we address the
    0:35:36 issues that come up. That best practice to serve as well. Every six months, we refactor the PowerPoint
    0:35:42 deck. It’s a living, breathing document. And we basically treat culture like our second product,
    0:35:48 like our product HubSpot, if it’s unique relative to the competition, good quality product, and it
    0:35:54 delivers value. It’s like a magnet that pulls customers in and retains them. Same thing with
    0:35:58 the culture. If it’s unique relative to the competition, it’s high quality and adds value.
    0:36:03 It’s like a magnet that pulls in employees and retains them. And so we put a lot of thought
    0:36:06 into that culture stuff. And I think a lot about how do you take, how do you go from start and
    0:36:11 scale up? I think a key part of that is getting your culture right and writing it down and
    0:36:17 institutionalizing it. I’m going to make a statement about culture. And I’d love for you to argue,
    0:36:21 take both sides of the debate, if you will. So I’m going to say that culture is the only
    0:36:27 sustainable advantage. I disagree. Why? Let’s take Uber. They had a certain culture
    0:36:34 Dara, the new CEO, came in. I’m quite sure he made massive changes to the culture the founder
    0:36:41 put together. And he thrives. I think some of the benefit, of course, is his culture,
    0:36:47 but they had major sustainable competitive advantages in that they had a fleet of drivers
    0:36:52 and customers in the network effect and software that works. And he’s probably been there 10 years
    0:36:58 and I don’t think it’s all culture. Oh, that’s interesting. So in my mind, I would sort of think
    0:37:05 of that more like they had a advantage, like an operational advantage that came from the network
    0:37:11 effect and the scale. I don’t know if that would have been enough to sustain it
    0:37:19 going forward without the culture. Fine. I sort of agree with that. I think the best example
    0:37:25 on the other side of this is Satya. Satya is on my Mount Rushmore CEOs. A lot of people push back
    0:37:29 from me. It’s like, oh, I was an founder. You shouldn’t be on there. He’s on there for me
    0:37:36 because Microsoft was gone very, very sideways for a long time. And he stepped in and really
    0:37:43 did change the culture in a massive company and couldn’t be more impressed with him and the culture
    0:37:48 change and how well that works. So that’s my flip side of the argument is Satya. Okay. Who else is
    0:37:56 on your Mount Rushmore? Jerry Garcia is on my Mount Rushmore. Great CEO. The app for mentioned
    0:38:02 Steve Jobs on there. Why Jerry Garcia? Grateful dead. Really? Why Jerry Garcia? That’s the most
    0:38:08 obvious one on there. Why? No, I’m curious. I’m not a Grateful Dead. I don’t think I’ve ever
    0:38:12 really sat down and listened to the Grateful Dead, so you’re going to have to walk me through this one.
    0:38:19 Okay. Jerry Garcia was the CEO cut in the cloth of Colin Engel and Toby Lukey.
    0:38:25 Really disliked conventional wisdom and kind of rethought everything from first principles,
    0:38:30 starting with the music. So they started that band in the mid-60s. And at the time, there were all
    0:38:35 kinds of rock and roll music, and there was jazz music, country music, and bluegrass music,
    0:38:40 and they didn’t do any of that. They created a new genre of music. People refer to it as jam bands now.
    0:38:47 But Garcia himself was a bluegrass player, and the bass player was a jazz musician, and the keyboard
    0:38:52 player was a blues guy, and Bob Weir, the singer, was kind of a country rock and roll guy, and they
    0:38:58 blended them all together, and they infused this jam band mentality into it, and they really stretched
    0:39:04 the songs out with improvisation. So they sort of rethought the genre and made a new type of music.
    0:39:11 The product was unique, and the go-to market was exceptionally unique. If you think of, like,
    0:39:16 when I was in high school, if I wanted to go to a Rolling Stones concert, I would call Ticketmaster,
    0:39:22 and I would wait till whatever it is, 1.30 on a Tuesday, and the Rolling Stones tickets were on a
    0:39:26 sale, and I would dial away. I’d be five minutes late, but I’d dial away, and I may or may not
    0:39:32 go through. The people who ended up buying most of the tickets were the scalpers. The scalpers had a
    0:39:38 whole bunch of people buying the tickets that sold the tickets in a markup, and so the front row of
    0:39:43 the Rolling Stones concert was a bunch of bankers of venture capitalists, people who could afford
    0:39:48 the tickets, and the people didn’t like anything about that, Shane. Nothing about it. They particularly
    0:39:53 didn’t like a bunch of bankers and venture capitalists in the front row of their concerts. They wanted
    0:39:59 their hippy, crazy fans in there. They also didn’t like the distribution set up, so it was grateful
    0:40:05 then, and then Ticketmaster took their slice, and then scalpers took their slice, and then the fans,
    0:40:09 so they said, “We’re going to disintermediate,” just like the internet did to so many things.
    0:40:14 “We’re going to disintermediate those two layers, and we’re going to sell tickets directly to customers.”
    0:40:19 The way they did it was you listened to a 4015 recording that explained what was going on,
    0:40:24 and the way, Shane, you would buy the tickets was you have to put a three-by-five card,
    0:40:28 which concert you went to. You can only buy four tickets per concert,
    0:40:34 okay, so the scalpers are less incentive, and then you had to go to the post office to get a
    0:40:38 postal money order, so just a total pain in the backside to get a postal money order,
    0:40:42 and then you had to put a self-address down down below, and then you put your regular envelope
    0:40:48 and mail it in. Now, how would the grateful then, Shane, decide who gets the front row seats?
    0:40:49 I have no idea.
    0:40:53 The way they sort of did it was that self-address, they have the envelope,
    0:40:58 the more beautifully you could decorate it with dancing bears and mushrooms and sprinkles.
    0:41:00 I love it.
    0:41:04 Yes, so they solved a bunch of problems. That’s not the end of it.
    0:41:06 What was the last concert you went to, Shane?
    0:41:08 Oh, God, it’s been a long time.
    0:41:09 Did you go to Taylor Swift?
    0:41:12 No, I am a Taylor Swift fan.
    0:41:15 Okay, let’s just say you went to Taylor Swift in Ottawa.
    0:41:20 And you showed up with your giant camera in your boom microphone,
    0:41:24 and you showed up there. What would have happened at the gate?
    0:41:25 They wouldn’t let me in.
    0:41:27 Why? Why didn’t she want you recording?
    0:41:30 It might affect other people’s experience if I have a boom mic.
    0:41:37 You can’t prevent people from recording on their phones, so at some degree, they’re accepting it.
    0:41:42 The NBA actually went through this a couple years ago. They were trying to really block
    0:41:47 people from posting clips on social media. Then they actually embraced it, and it changed the
    0:41:53 whole league. It got way more people. Sorry, this is a sidetrack to this, but that change
    0:41:57 in the NBA really changed the NBA.
    0:42:02 Okay, pre-iPhone, let’s say you were going to a Rolling Stones concert,
    0:42:04 and you had all that equipment you were walking in. Of course, they would block you.
    0:42:09 And the reason is you see the Rolling Stones in Boston, in New York, and then Philly, and then Miami.
    0:42:14 The exact same concert. They don’t miss a note. They’re fantastic.
    0:42:15 Same thing.
    0:42:19 When you walked into the Grateful Dead with your big boom mic and your big camera,
    0:42:23 they put you right in the Taper section, the perfect spot to watch the concert.
    0:42:27 They said they did a tape it, and you taped it, and then you went from Boston,
    0:42:30 then you went to New York, you taped it, you went to Philly, you taped it,
    0:42:34 then you went to Miami, then you get back to your dorm room, and you copied as many tapes as you
    0:42:38 could of the best concert, not the worst concert, and you gave them out to all your friends.
    0:42:46 And that was how they market. They gave away the content. They were the first in-down marketers
    0:42:51 to really nail that. They were the first real freemium model. They were the first viral marketers,
    0:42:56 and the way they did it was brilliant. And it worked for them because every concert was quite
    0:43:01 unique. They’re a jam band, so they never played the same set list twice, and so there was an
    0:43:06 incentive for knuckleheads like me to go from Boston to New York, up and down these coasts.
    0:43:11 In fact, I did that last week, I was at the Spear, and I saw them Friday, Saturday, Sunday.
    0:43:17 Garcia was a genius. He’s a marketing genius, actually, and I think he’s a music spot.
    0:43:25 That’s fascinating. I’m going to have to listen to The Grateful Dead now. I wrote a book on this
    0:43:29 called “Marketing Lessons from the Grateful Dead.” We started talking about inbound marketing there.
    0:43:36 I’m curious as to, you guys pioneered inbound marketing to a big extent, and definitely got
    0:43:42 the momentum rolling there. How has that changed in the past few years, and where is that going in
    0:43:48 the next few years? Ironically, I think it kind of went out of favor a bit over the last few years,
    0:43:54 and I think it’s about to come back in favor. The things that change about it aren’t that different.
    0:44:03 Instead of cold calling people, and spamming people, and advertising people, and renting space
    0:44:08 on YouTube, or renting space on your podcast or your blog, or renting space on New York Times.
    0:44:12 Spray your own New York Times, draw a podcast, and become your own publisher, and then pull people
    0:44:19 in through Google and search and other social outlets. It works very, very, very well. You’re
    0:44:23 living proof of how well it works. The things that have changed, or the social media networks
    0:44:26 have changed. When we first wrote about this, before we started HubSpot, we started writing
    0:44:32 about inbound marketing. Dig and Reddit were the two big social media sites. I don’t think
    0:44:36 things around in Reddit have gone through all these iterations, but obviously it was Facebook,
    0:44:42 and now it’s TikTok, it’s Instagram. It’s all these new social media sites. It’s YouTube. People
    0:44:49 live in YouTube. It’s podcasts. The medium isn’t necessarily a long-form blog like it was back
    0:44:54 when we started HubSpot. It’s videos, a lot of short-form videos, and so that’s changed quite a
    0:45:02 bit. I think what’s interesting about what’s going on now is today you go to Google and you get your
    0:45:09 10 blue links. If you look across our customers, that’s 62, 63% of the inbound traffic is via Google,
    0:45:14 and most of it’s organic. I think over the next five years, that’s going to change a lot. I think
    0:45:17 Google’s going to have to change a lot, and I think people are going to spend more and more of their
    0:45:23 time inside ChatGPT, and they’re all ChatGPT’s competitors. I think when you’re engaging in
    0:45:27 that way and you do a search in ChatGPT for, let’s say, HubSpot, it will tell you about HubSpot,
    0:45:30 and then you’ll say, “Well, how does HubSpot compare to Salesforce?” It will tell you about that.
    0:45:35 How much does HubSpot cost? It will tell you that. People know a lot about HubSpot.
    0:45:38 One of the brilliant things about Google is their blue links, and they didn’t mind sending you
    0:45:42 off their website. It’s a very counterintuitive idea. I think that’s going to start changing as
    0:45:47 consumer behavior changes, and I think be a really interesting to see how it evolves.
    0:45:52 Do you think content is just going to get overwhelming? I mean, you can create content
    0:45:58 with two sentences now. You can create blog posts that would rival probably the best people we’re
    0:46:03 putting out maybe 10 years ago with almost no effort whatsoever.
    0:46:09 I think you’re right, and I think it’s not just that, but it’s going to be e-mails. I think that
    0:46:15 the robo-emailing and the BDRs, I look at lots of startups in the CRM phases, might imagine, but
    0:46:24 there’s about 48 startups building automated AI agents. I still think having a unique perspective
    0:46:30 and a unique personality is going to work. I don’t think your podcast goes away because
    0:46:35 I start something that sounds like you, and I use an avatar to deliver it. I think something
    0:46:40 what you’re doing will last the test of time. I think a lot of people, particularly in scale-ups,
    0:46:44 run away from their personality. They make it generic, and you have a certain vibe and
    0:46:49 a certain personality. I think that works for you, and it’s going to be very hard to replicate.
    0:46:54 Quality and uniqueness never go out of style, and I think you’re going to be increasingly
    0:46:59 important as you just fill content that’s AI generated. It’s almost what you said before,
    0:47:04 like lean into your individual quirkiness, and your tribe will find you and then go around with you.
    0:47:08 Although you have me worried, we’re almost a million people on our newsletter now. I’m like,
    0:47:13 “Oh God, if this is going away, I got problems.” I also think we’re going to see the trend,
    0:47:16 and I’m certainly not the first person to say this, but I think you’re going to see
    0:47:21 a lot more small big companies, and you’re going to be able to get a lot more done with a lot less
    0:47:26 people. I don’t think in a billion dollar company, you’re going to need three, four,
    0:47:31 five hundred person marketing organizations. I think the new tools are coming out, including
    0:47:36 Upsplot Stoles and CRM Suite. I just see how incredibly powerful they are. I think you’re
    0:47:42 going to be able to scale in a whole new way. I think the AI revolution, when it comes to
    0:47:48 inbound, I think top of the funnel gets more difficult. I think middle of the funnel gets
    0:47:54 easier. Really high quality personalization on your website, on chat, on everything, that gets
    0:47:58 much more powerful. Top of the funnel gets more difficult. I think inbound’s going to change,
    0:48:03 but I also think inbound is going to make a comeback. How do we do outreach in a world of AI
    0:48:08 and in a world where people are bombarded with, is it going to be freemium and then pulling people
    0:48:12 in through that and the outreach is letting them know about the freemium stuff? You’ve got to get
    0:48:17 good at the branding thing, again, it turns out. Because getting into your or my inbox is going
    0:48:22 to become exceptionally difficult with all the changes Google’s making to email that’s getting
    0:48:27 part or as it is, but the robo emailing is going to go wild and the robo content is going to go
    0:48:32 wild. It’s a little more around branding. You have to be good at everything. It’s like a baseball
    0:48:36 5-2 player. You have to be getting found in YouTube. You have to be getting found in all the
    0:48:39 social sites. ChatGBT’s going to understand you perfectly well. Google’s going to understand
    0:48:43 perfectly well and you need people tripping over your all over the place. I think people have to
    0:48:46 get comfortable with the fact they’re going to have less new visitors to their website because
    0:48:51 ChatGBT and their ilk are going to know so much about you and not have those lists of blue links.
    0:48:55 They’re just going to live on there and learn so much about you. And then when someone’s quite
    0:48:59 serious, they end up on your website and you have to get very good at personalizing that
    0:49:05 website experience. I also think people are going to end up keeping more information behind
    0:49:11 the paywall and the login wall on their websites because they want to keep a little bit back from
    0:49:15 ChatGBT because ChatGBT is going to understand the public stuff so well. I think it’s going to
    0:49:20 change in a good way though. I guess the baby step that Google made on that was like when they
    0:49:26 would just show you the excerpts. If you asked a question, it’d be like basically giving you a
    0:49:31 link but it’s really hard to find. It’s like here’s the answer to your specific question.
    0:49:38 YouTube is fascinating because unlike voice podcasts, YouTube has virality to it. So when we
    0:49:47 do an in-person recording, the YouTube breach is larger in some instances, not all, than our
    0:49:54 podcast reach. And so we get like 300,000 people sort of listening to a podcast episode but on
    0:50:01 YouTube, we’ll get 300 to 500 to a million people. But it’s YouTube’s algorithm picking it up. It’s
    0:50:06 like people watch this but what we can’t do is like send people off that platform. So it’s really
    0:50:11 good for like stats. I was at the gym the other day and this guy’s like I got 2 million TikTok
    0:50:17 followers but I can’t do anything with them. So I can keep them on this app and I’m really famous
    0:50:23 in this localized environment but TikTok is 100% in control. I don’t own that relationship. Same
    0:50:27 as YouTube. I don’t own the relationship with the viewer. YouTube does the minute it doesn’t
    0:50:32 like me and wants to cancel me or doesn’t like my content anymore or wants to promote a different
    0:50:37 message. Whatever that algorithm is that’s doing that can just like you’re gone.
    0:50:43 I think you’re right. I thought Google was going to roll over and played that there for a while.
    0:50:48 Like I moved most of my search traffic to Proplexity really like it. Google’s kind of started
    0:50:52 and stopped the whole bunch of stuff but recently they’re making noises like they’re not going to
    0:50:57 roll over and play dead to Proplexity. That’s such an interesting company right now and to
    0:51:01 watch their moves will be very very interesting. It’s a challenging time for them but it looks
    0:51:06 like they’re going to they’re not going to let Proplexity just hoover up a bunch of their users.
    0:51:11 Hopefully not. We all want some competition here. I have a couple random questions. I’m curious
    0:51:17 what you’ve learned about making decisions that you think other people miss. On my CEO journey
    0:51:26 for a long time I kind of look for consensus. I think consensus is really the enemy of scale
    0:51:30 and so I used to say whenever we’re making an important decision there should be winners in
    0:51:35 the room and losers. We shouldn’t find like that negotiated settlement that everyone’s happy.
    0:51:39 Somebody should be unhappy. Three or four people should walk out unhappy and one should walk out
    0:51:45 happy and we’re all we’re all going to be good with it. As you get bigger this gravity pulls
    0:51:50 you towards consensus and I think consensus is the enemy of greatness. How do you fight that?
    0:51:56 I write that on whiteboards. I talk about that inside of HubSpot. I try to make an example of
    0:52:00 that every time I’m in a room. I’ve written a bunch of blogger articles about that. We keep
    0:52:05 posted about that. At one point in Signup HubSpot we had a terrific TOO I love and he had a lot of
    0:52:10 great qualities. One of his qualities I didn’t love was he was a consensus person and we had a
    0:52:15 lot of conflation over that and so we talked about it a lot. The management team talked about
    0:52:20 that a lot but I sort of had this thing like there’s going to be winners and losers in every
    0:52:24 argument and if no one walks out a little bit sore we probably made the wrong decision.
    0:52:29 So go deeper on that for a second there. So put me in the room at one of these meetings
    0:52:32 where there’s four people on one side. There’s four people on the other side.
    0:52:36 How do we come to that decision? Is it the highest paid person in the room?
    0:52:40 Is it the person closest to the problem? Who actually makes that call?
    0:52:46 Let’s just say it’s my call which is rare and two people in the room are saying black and two
    0:52:51 people in the room are saying white. I think that the majority of CEOs are walking out of the room
    0:52:55 with the decisions great. Trying to please everybody. Yeah. Try to thread the needle and I
    0:53:00 think that’s a problem. It creeps in more and more. The bigger you get the worse the problem gets
    0:53:04 and I always tried to walk out of the room. It’s like we’re going to pick black or white.
    0:53:09 If you lose this decision you might win the next one. Let’s not get all pissed off about it.
    0:53:13 We’ll all lose our eye and I think that’s the right way to scale it.
    0:53:17 Is there anything else you’ve learned about decision making that you’re like oh I wish I knew
    0:53:23 this sooner? I would say one thing I’ve learned about scaling a company like from the outside
    0:53:30 went from company with an idea and two employees to you know it’s worth 30 billion dollars and
    0:53:36 8,000 employees and a couple hundred thousand customers. It looks like a smooth graph from
    0:53:43 the outside but I’ll tell you what it’s a grind on the inside building up spot. It’s very much
    0:53:48 two steps forward one step back two steps forward one step back two steps forward one step back the
    0:53:55 whole way and there was no silver bullets along the way there was no one higher that completely
    0:54:00 changed the game no partnership that changed the game no customer no investor. It was all
    0:54:05 kind of two step forward one step back two step forward one step back and the other thing I would
    0:54:11 say about the journey is kind of related to that there was definitely wartime and peacetime when
    0:54:17 you’re halfway through a two steps forward it was peacetime when it’s one step back it was wartime
    0:54:25 and I love wartime I’m definitely a wartime CEO I hate peacetime I really need to sit on my hands
    0:54:29 and just let it go like it’s going great leave it alone I have a wartime doing that and I think
    0:54:35 certain CEOs are peacetime and certain CEOs are wartime I’m very very very much a wartime person
    0:54:40 like COVID wartime we made so many changes during COVID I hated COVID and I hated being back in
    0:54:46 society but inside of PubSpot that was a fun job. What does wartime mean for you is that like we’re
    0:54:52 fighting for our very survival does it mean we can just move faster and sort of ignore some of
    0:54:58 the bureaucracy what what does it mean? I think peacetime is bottoms up and more consensus a
    0:55:03 wartime more top down it’s like hey it’s wartime I don’t have time to build consensus on this this
    0:55:11 is why I think we should do we’re going left and I like that about wartime and wartime is like okay
    0:55:19 I remember 2010 the economy was shaky back then we were a very young company maybe 2009 and our
    0:55:24 retention statistics were horrible everyone was canceling our product wasn’t fit back then
    0:55:29 and we lost our remember of the thousand customers we had in the beginning of the year we lost like
    0:55:38 700 of them like just terrible churn rate in 2009 and that was existential and it was like let’s just
    0:55:44 stop the music and start over everything we’re doing going forward has nothing to do with
    0:55:49 signing up new customers is like how do we delight every new customer yeah let’s stop obsessing about
    0:55:54 how do we turn a prospect into a customer let’s obsess about how do we turn a customer into a
    0:55:58 delighting customer and so that was a crisis that really worked we changed the culture of the company
    0:56:03 we changed the center of gravity from prospects to customers never wasted a good crisis that was a
    0:56:08 really good crisis. What you’re building this how did you manage and I don’t want to say balance
    0:56:12 it’s the wrong word but it’s the word everybody understands how did you how did you manage work
    0:56:18 life harmony or balance especially during the high pressure periods with a young family
    0:56:24 I didn’t I did it very poorly what would you go back and tell your younger yourself no I’m really
    0:56:32 proud of it I think my grandkids will be proud of it and I think it took a big effort on my part
    0:56:37 to pull it off and if I said oh man I wish I just put in 40 hours a week back then I wouldn’t be sitting
    0:56:41 on this podcast it would be wonderful to pull it off and I know that’s not a popular answer I’ll
    0:56:47 probably get literally done Twitter for saying that I think that’s a reality it was it was a full
    0:56:52 context for it. I’ve noticed this thing and I think people don’t like talking about it but
    0:56:57 when you find exceptional people who’ve done exceptional things like yourself
    0:57:04 they’re not always the most well-rounded people in every aspect of their life and yet
    0:57:10 we sort of expect them to be right it’s like we we love Warren Buffett but we want him to
    0:57:16 also be a better family man right the weird thing is the minute Warren Buffett starts doing that
    0:57:21 he’s no longer somebody we’re talking about as Warren Buffett and it’s so it goes back to those
    0:57:27 sort of like strengths and weaknesses and my hypothesis is that people at the tail end of the
    0:57:34 curve have incredible strengths and incredible weaknesses and by trying to address those weaknesses
    0:57:40 whether it’s school society nudging people we actually limit we put a ceiling on the strengths
    0:57:44 that those people can actually deliver to the benefit of the world. You’ll probably
    0:57:48 pillar it on Twitter for saying that but I agree with you on that. I’ll give you an example I’ve
    0:57:55 never been married I want to get married so I’m like sexually on my to-do list this year I don’t
    0:58:01 know it’s gonna be this year but I never did it and every time I had a relationship like I play
    0:58:09 game first and do I regret it I don’t know I’ve had a really good life I’ve really enjoyed the
    0:58:15 HubSpot run I’m super proud of it I think when I’m 85 and looking back on my life I’ll still be
    0:58:20 super proud of it I think my grandkids will be proud of it so yeah I made some sacrifices
    0:58:26 I’m okay with it we always end the podcast with the same question I think you’ll have a really
    0:58:33 good answer to this what is success for you I think it’s a really cheesy James Taylor song
    0:58:40 named the secret of life is enjoying the passage of time I think she’s very right about that
    0:58:47 and think about that post my accident I very much try to not do anything that I don’t want to do
    0:58:53 or if I’m doing it not to do it very long and I try to live in the present and stay out of the
    0:58:58 past too much and stay out of the future too much I think the secret of life is about how do
    0:59:03 you set your life up so you’re really enjoying that passage that’s a beautiful answer thank you so
    0:59:14 much for coming on the show Brian thank you sir thanks for listening and learning with us
    0:59:22 for a complete list of episodes show notes transcripts and more go to fs.blog/podcast
    0:59:28 or just google the knowledge project recently I’ve started to record my reflections and
    0:59:33 thoughts about the interview after the interview I sit down highlight the key moments that stood
    0:59:39 out for me and I also talk about other connections to episodes and sort of what’s got me pondering
    0:59:43 that I maybe haven’t quite figured out this is available to supporting members of the knowledge
    0:59:50 project you can go to fs.blog/membership check out the show notes for link and you can sign up today
    0:59:55 and my reflections will just be available in your private podcast feed you’ll also skip
    1:00:00 all the ads at the front of the episode the front of street blog is also where you can
    1:00:06 learn more about my new book clear thinking turning ordinary moments into extraordinary results
    1:00:11 it’s a transformative guide that hands you the tools to master your fate sharpen your decision
    1:00:27 making and set yourself up for unparalleled success learn more at fs.blog/clear until next time

    Brian Halligan, co-founder and former CEO of HubSpot, discusses the journey of leading a company from the startup phase to IPO. Halligan shares his personal and professional experiences, including a snowmobiling accident that altered his life trajectory, the importance of company culture, the nuances of hiring the right people, and the complications involved in running a growing organization.

    This episode is a must-listen for entrepreneurs, CEOs, and anyone interested in the intersection of personal growth and professional success.

    Brian Halligan is currently a Senior Advisor at Sequoia Capital. In 2006, he co-founded HubSpot and served as its CEO until 2021. He is also a senior lecturer at the Massachusetts Institute of Technology.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠

    Timestamps:

    (00:00) Intro

    (02:36) Halligan's life-changing snowmobile accident

    (09:38) Shane's life-changing medical mystery

    (14:38) The different phases a CEO goes through while growing companies

    (20:44) Lessons learned from Steve Jobs

    (23:18) How to hire and fire people (and when)

    (27:55) The problems with ”Best Practices” in business

    (31:11) The most underrated public CEOs (and why Jerry Garcia from The Grateful Dead is on this list)

    (43:38) The history and future of inbound marketing

    (51:08) On decision making

    (55:18) On work-life balance

    (58:28) On success

    Watch the episode on YouTube: ⁠⁠⁠⁠https://www.youtube.com/c/theknowledgeproject/videos⁠⁠⁠⁠

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠⁠⁠⁠https://fs.blog/newsletter/⁠⁠⁠⁠

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now – ⁠⁠⁠⁠https://fs.blog/clear/⁠⁠⁠⁠

    Follow me: ⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠

    Join our membership: ⁠⁠⁠⁠https://fs.blog/membership/

  • #199 Esther Perel: Cultivating Desire (2019)

    AI transcript
    0:00:02 If you trade passion for stability,
    0:00:05 you basically trade one fiction for another.
    0:00:07 Both are products of our imagination.
    0:00:10 It really comes down to the imagination.
    0:00:15 I mean, it is with our mind that we create stories
    0:00:18 and those stories basically shape our experience.
    0:00:21 If you live with a story of things never change,
    0:00:22 you live in one reality.
    0:00:25 And if you live with a narrative that says,
    0:00:28 things always change, they continuously change,
    0:00:31 then you live with a very different set of beliefs
    0:00:35 about how you love, how you work, how you live.
    0:00:37 (upbeat music)
    0:00:52 – Welcome to the Knowledge Project podcast.
    0:00:54 I’m your host Shane Parish.
    0:00:55 In a world where knowledge is power,
    0:00:59 this podcast is your leverage for mastering the best
    0:01:01 one of the people I’ve already figured out.
    0:01:02 If you’re listening to this,
    0:01:04 it means you’re not a supporting member.
    0:01:06 Members get early access to episodes,
    0:01:09 my personal reflections at the end of every episode,
    0:01:11 which a lot of people now say is their favorite part.
    0:01:14 No ads, exclusive content, hand edited transcripts
    0:01:16 and so much more.
    0:01:18 Check out the link in the show notes for more information.
    0:01:22 This episode is a re-release of episode 71
    0:01:25 of the Knowledge Project Cultivating Desire
    0:01:26 with Esther Perot.
    0:01:29 This is one of the most downloaded and shared episodes
    0:01:30 we’ve ever released.
    0:01:33 Millions of people have listened to it,
    0:01:36 but I also realized that many of you have never heard this.
    0:01:38 And importantly, if you have heard it,
    0:01:41 it’s really worth another listen.
    0:01:44 The goal of this podcast is to master the best
    0:01:46 of what other people have figured out
    0:01:50 and ideally do so in a way that is timely and timeless.
    0:01:53 And this conversation is a testament to that.
    0:01:56 If you didn’t know it was a re-release,
    0:01:59 you would think it was recorded yesterday.
    0:02:01 Esther and I talk about the story of her parents,
    0:02:04 the difference between living and surviving,
    0:02:07 erotic intelligence and why it matters,
    0:02:09 permanence versus impermanence,
    0:02:13 dating, growing apart, common argument patterns,
    0:02:16 criticism and what it takes to maintain pleasure,
    0:02:19 desire and excitement.
    0:02:22 It’s time to listen and learn.
    0:02:24 (gentle music)
    0:02:34 This is an advertisement from BetterHelp.
    0:02:37 Everyone knows therapy is great for solving problems,
    0:02:40 but turns out therapy has some issues of its own,
    0:02:43 finding the right therapist, fitting into their schedule,
    0:02:45 and of course, the cost.
    0:02:47 BetterHelp can help solve these problems.
    0:02:50 It’s online, convenient, built around your schedule
    0:02:52 and surprisingly affordable too.
    0:02:53 Connect with a credentialed therapist
    0:02:56 by phone, video or online chat.
    0:02:58 Visit BetterHelp.com to learn more.
    0:03:01 That’s better, H-E-L-P.com.
    0:03:03 – Summer’s here and you can now get almost anything you need
    0:03:04 delivered with Uber Eats.
    0:03:06 What do we mean by almost?
    0:03:07 You can’t get a well-droom lawn delivered,
    0:03:09 but you can get chicken parmesan delivered.
    0:03:11 Sunshine, no, some wine, yes.
    0:03:14 Get almost, almost anything delivered with Uber Eats.
    0:03:16 Order now, alcohol in select markets, see after details.
    0:03:20 This episode is brought to you by Lego Fortnite.
    0:03:23 Lego Fortnite is the ultimate survival crafting game
    0:03:25 found within Fortnite.
    0:03:27 It’s not just Fortnite Battle Royale with many figures.
    0:03:29 It’s an entirely new experience
    0:03:32 that combines the best of Lego Play and Fortnite.
    0:03:34 Created to give players of all ages,
    0:03:37 including kids and families, a safe digital space to play in.
    0:03:41 Download Fortnite on consoles, PC, cloud services or Android
    0:03:45 and play Lego Fortnite for free, rated ESRB E10 Plus.
    0:03:50 Your parents were in concentration camps,
    0:03:53 I think from your mom from 18 to 22
    0:03:57 and your father was 25 to 31
    0:04:00 because the war started very early for them.
    0:04:04 What did your parents credit their survival to?
    0:04:10 – Wow, we’re going right to the heart of the matter.
    0:04:17 I think my parents always said luck came first,
    0:04:22 just sheer luck that they were not rounded up
    0:04:24 out a certain morning when they would take 1000 people
    0:04:29 and move them from the labor camp to the extermination camp.
    0:04:34 But secondly, I think they had sheer determination
    0:04:39 that they were gonna be there to, first of all,
    0:04:43 to be witnesses, to still be there.
    0:04:47 They imagined that they would have members of their family,
    0:04:50 actually, that they would hopefully see again.
    0:04:56 And they were extraordinarily determined to stay alive
    0:05:00 and active about it.
    0:05:05 I think they had a very clear sense of where they came from,
    0:05:08 who they were and why they needed to survive.
    0:05:12 And the rest is the stories that they told
    0:05:16 about the multiple things they had to do in order to stay alive.
    0:05:19 – What are some of the stories?
    0:05:27 – My mother spent a year hiding in the woods when she was 18
    0:05:30 and became petrified by the barking dogs
    0:05:32 and the sense that every morning she would wake up
    0:05:35 in a different place and not know what the day
    0:05:36 was going to be.
    0:05:38 And she basically surrendered by herself
    0:05:40 to a male labor camp,
    0:05:43 figuring that maybe they would need somebody in the laundry
    0:05:46 or in the kitchen and that at least she would know
    0:05:47 every morning where she wakes up.
    0:05:52 I didn’t know many people who went by themselves to the camp.
    0:05:54 And when the camp was a better option
    0:05:58 than the hiding in the woods and stealing eggs from farms
    0:06:01 and potatoes from fields and stuff like that
    0:06:03 to just stay alive.
    0:06:07 My dad, the last year and a half in one of the camps,
    0:06:08 he was in 14 of them,
    0:06:12 basically organized some kind of a black market
    0:06:15 with the kitchen around food and potatoes
    0:06:17 or potato peels more correctly
    0:06:21 and managed to actually feed the Germans as well.
    0:06:26 So DSS basically liked him in the kitchen.
    0:06:27 He was better for him.
    0:06:29 He ate better, as he said, when my dad was there
    0:06:31 than when my dad would go to the factory.
    0:06:32 If you went to the factory,
    0:06:36 you basically lived another week and there was that
    0:06:38 because you had to walk an hour and a half
    0:06:40 in frozen weather to get there.
    0:06:44 So it’s just stories of how they beat the system basically
    0:06:49 and stories of how they made connections with other people,
    0:06:51 how they created deep friendships,
    0:06:54 how he had a man, another man who became
    0:06:59 his kind of lifelong brother with whom he fought together.
    0:07:01 I think that it was very clear
    0:07:03 that neither of them ever attributed
    0:07:06 what their survival to themselves alone.
    0:07:08 They had strength.
    0:07:10 My dad always talked about how they came
    0:07:12 from tiny villages in Poland
    0:07:14 where it’s frozen weather in the winter
    0:07:18 and they were more robust, they were more resistant.
    0:07:20 He carried bags of cement on his back
    0:07:23 and therefore he knew how to work hard in the camps.
    0:07:26 He didn’t come from Paris or Corfu
    0:07:28 or Mediterranean weathers.
    0:07:31 So they had this whole way of describing
    0:07:34 what made them strong basically.
    0:07:39 – Did your parents meet in a concentration camp?
    0:07:43 – Interestingly, my parents met the day of liberation
    0:07:47 on the road as they came out of the camps.
    0:07:49 They were in neighboring camps
    0:07:52 and people just basically wandered the roads
    0:07:57 and as my mother would say with cotton balls in your head
    0:07:59 and looked for whoever they knew
    0:08:01 or whoever knew something about the towns
    0:08:03 they came from or about their families
    0:08:08 or their whereabouts and people basically would say,
    0:08:09 “Oh, there is such and such.
    0:08:14 “I just saw from that village and go find them.”
    0:08:16 So they met each other like that
    0:08:18 and they knew of each other
    0:08:21 because my father traded with my mother’s family
    0:08:24 when they were still in Poland.
    0:08:29 They probably would never have met or married for sure
    0:08:34 because my mother was orthodox aristocracy,
    0:08:38 educated aristocracy and my dad was rather illiterate
    0:08:43 and uneducated and a grand man
    0:08:47 but not necessarily an educated reader.
    0:08:49 So they were completely of different classes
    0:08:55 and he always thought that he had found
    0:08:58 a beautiful princess that he had like,
    0:09:03 come on then, “le gros l’eau” that he had the lotto,
    0:09:05 that he had won the lotto with my mother.
    0:09:08 And they came like that.
    0:09:10 Basically, people gathered on the roads
    0:09:12 and began to travel and wonder where they should go.
    0:09:14 I mean, they were not gonna go back to Poland.
    0:09:19 It’s refugee stories of today, it’s the same stories.
    0:09:24 And my dad had helped somebody from Belgium in the camps
    0:09:26 and that man gave him a name and a false address
    0:09:28 and just basically said, “Come to Belgium.”
    0:09:30 So they arrived like that to Belgium
    0:09:33 where they had a permit to stay for three months
    0:09:35 and then they were supposed to be dispatched
    0:09:36 in a number of other countries
    0:09:40 which at the time were willing to take the Jewish refugees
    0:09:42 and they decided to stay.
    0:09:43 So they stayed another five years
    0:09:45 as illegal refugees in Belgium.
    0:09:48 I mean, it’s quite remarkable
    0:09:51 how what I grew up with the story is my first passport
    0:09:53 which was a stateless passport.
    0:09:57 I mean, that all of that is so, so current.
    0:09:59 I think that the relevance of the story
    0:10:02 is not so much about what happened then
    0:10:05 but about the fact that so much of us thought
    0:10:07 this will never happen again, this cannot happen again
    0:10:10 and it is happening again all over the place.
    0:10:13 – I wanna explore that just a little bit
    0:10:16 before we sort of dive into relationships
    0:10:21 because what does it mean to come back to life
    0:10:24 after surviving the Holocaust in a community?
    0:10:26 I mean, what’s the difference between living
    0:10:27 and sort of surviving?
    0:10:34 – I mean, it’s a distinction that I began to think about.
    0:10:36 I didn’t grow up with that distinction,
    0:10:39 though there were loads of stories about that,
    0:10:42 about people who were depressed,
    0:10:44 about people who were bitter,
    0:10:46 about people who, you know, you’re married
    0:10:48 because I have nothing, you have nothing,
    0:10:51 I’m alone, you’re alone, let’s get married.
    0:10:54 But often these people had no reason to be together
    0:10:57 except rebuilding and so they had a lot of energy
    0:11:01 in the initial phases and they had children right away
    0:11:03 as a way to prove their humanity.
    0:11:06 But after that, sometimes they would look at each other
    0:11:08 and these people had nothing in common
    0:11:13 and my parents had friends like that who were couples
    0:11:15 that didn’t really have much to do together
    0:11:18 except surviving but not living.
    0:11:21 But when I wrote “Mating in Captivity”
    0:11:23 is really when I began to think about it
    0:11:25 because mating is about how do you maintain
    0:11:27 a sense of aliveness?
    0:11:30 It is about erotic intelligence.
    0:11:34 And in so doing, I began to look at my community
    0:11:38 and noticed that in fact I could make a separation.
    0:11:42 It’s a metaphor more than an accurate description, you know?
    0:11:44 I don’t know that people I would describe this way
    0:11:45 would necessarily agree with it
    0:11:49 but I remember thinking in my community,
    0:11:52 I often noticed that there were two groups of people
    0:11:57 and the people who survived, the people who did not die
    0:12:03 often were quite afraid, reticent,
    0:12:06 continuously aware of danger, untrusting.
    0:12:10 Nobody literally could enter in there
    0:12:13 and there was a certain kind of morbidity in the homes.
    0:12:15 There was often survivor guilt,
    0:12:19 there was often a sense that life had broken them.
    0:12:21 And then on the other side,
    0:12:24 I saw people who were gonna take life
    0:12:27 by the horns with the vengeance.
    0:12:29 It’s like I didn’t survive for nothing
    0:12:31 and I’m going to make the best of it
    0:12:33 and I’m going to live grand
    0:12:35 for all those who didn’t make it.
    0:12:38 And for me, the way I described it is that
    0:12:42 they understood the erotic as an antidote to death, basically.
    0:12:46 It’s, what does it take to maintain hope,
    0:12:49 to maintain a sense of meaning, to have imagination?
    0:12:50 Because if you have hope,
    0:12:53 you need to be able to project yourself.
    0:12:55 You know, whether you’re in a camp
    0:12:56 or whether you’re in a relationship,
    0:12:59 you have to be able to imagine yourself,
    0:13:01 to have a sense of anticipation,
    0:13:04 to project a better situation than the one you’re in
    0:13:06 or something to look forward to.
    0:13:11 And that whole way of cultivating the imagination
    0:13:13 is something that I then began
    0:13:16 to really talk to my parents about and understood that.
    0:13:20 In fact, you don’t have to be in a concentration camp for that.
    0:13:23 This is an essential tool for life,
    0:13:27 for experiencing joy and meaning
    0:13:29 and freedom and possibility.
    0:13:32 – I was thinking as you were saying that,
    0:13:34 we often take tomorrow for granted,
    0:13:38 but I imagine that that’s almost impossible for you
    0:13:40 growing up with your parents in that situation
    0:13:42 and in a community like that.
    0:13:47 – I would say that it’s the opposite for me.
    0:13:52 I think I live with tremendous energy
    0:13:57 and I do a lot and I live quite full,
    0:14:02 but underneath there is a kind of chronic sense of dread
    0:14:07 that everything can stop any moment.
    0:14:11 I have no sense that tomorrow is taken for granted for me.
    0:14:14 I think that I’m gonna get a big surprise
    0:14:16 and it won’t be a small boo boo.
    0:14:21 But I try not to think about it the whole time,
    0:14:23 but it is continuously there.
    0:14:26 And I think on the one hand,
    0:14:28 you could experience it as something that is terrifying,
    0:14:32 that deflates you, that constricts and contracts you,
    0:14:34 or you can experience it as
    0:14:37 because anything can stop any moment,
    0:14:39 I’m gonna give it its fullest right now.
    0:14:44 So in a way, it really naturally creates a stance in life
    0:14:48 in which the present has to be savored
    0:14:51 or fully experienced or dealt with.
    0:14:52 It’s not always a positive thing,
    0:14:55 but basically it’s not an effort
    0:14:57 to be in the present in that sense.
    0:15:00 – If things are sort of impermanent, I guess,
    0:15:03 in a way where you’re constantly questioning tomorrow
    0:15:06 and what could be there and what might be there,
    0:15:09 and how does that affect our relationship
    0:15:13 as individuals with trust and vulnerability?
    0:15:18 – I mean, the question of permanence and impermanence
    0:15:21 is the question that also points to the distinction
    0:15:23 between East and West.
    0:15:26 We believe that there is such a thing as permanence
    0:15:29 and we believe that there is such a thing as stability
    0:15:31 and predictability.
    0:15:35 There are entire philosophies who look at the world
    0:15:39 and at life as being in permanent flux.
    0:15:40 That’s the state of impermanence,
    0:15:44 that things are continuously changing and morphing.
    0:15:49 And therefore, to imagine that you can create stability
    0:15:50 is basically a fiction.
    0:15:54 And I think there’s something very powerful about that.
    0:15:58 That means that you actually are…
    0:16:01 I don’t think it necessarily doesn’t permit you to trust
    0:16:03 or it doesn’t allow you to feel vulnerable.
    0:16:06 It just is a different awareness about the world.
    0:16:09 It’s a different philosophical stance.
    0:16:12 Look, for example, in mating in captivity,
    0:16:15 I remember a moment when I read that sentence
    0:16:17 and it made a lot of sense for me, right?
    0:16:22 The idea that you should trade passion and for security,
    0:16:25 for example, from the Eastern perspective
    0:16:27 or from the perspective of impermanence,
    0:16:29 if you trade passion for stability,
    0:16:32 you basically trade one fiction for another.
    0:16:35 Both are products of our imagination.
    0:16:38 And once I began to think like that,
    0:16:41 it offered for me something way more flexible
    0:16:45 in what people can do in their relationships
    0:16:48 to maintain a sense of vitality or a sense of aliveness.
    0:16:51 And it really comes down to the imagination.
    0:16:56 I mean, it is with our mind that we create stories
    0:16:59 and those stories basically shape our experience.
    0:17:03 And if you live with a story of things never change,
    0:17:05 you live in one reality.
    0:17:07 And if you live with a narrative that says
    0:17:10 things should always change, they continuously change,
    0:17:13 then you live with a very different set of beliefs
    0:17:17 about how you love, how you work, how you live.
    0:17:21 – Can you talk to me a little bit more about the stories
    0:17:23 that sort of shape how we see the world
    0:17:26 and your experience with them a lot
    0:17:29 in terms of your psychotherapy is that,
    0:17:31 are you replacing narratives with people?
    0:17:34 Are you sort of trying to get them to open up
    0:17:37 and expand their view in a relationship therapy?
    0:17:39 Or how does that work?
    0:17:40 – It’s a great question.
    0:17:44 So look, I am a therapist that integrates
    0:17:48 a lot of different modalities and different approaches,
    0:17:51 but the narrative approach is very dear to me.
    0:17:54 And because I do see relationships as stories.
    0:17:58 So yes, when people come in
    0:17:59 and they come in with one version
    0:18:02 or one way to tell the story of their relationship
    0:18:06 or the story of themselves in their relationship,
    0:18:10 my first thought is, what else is there?
    0:18:13 What other story is here that has not yet been told?
    0:18:14 But is this really the story?
    0:18:17 Is this the only way to look at this story?
    0:18:19 That is very much how I think.
    0:18:23 Because I do believe that language shapes our experience.
    0:18:27 If I say it certain ways, I will feel certain things
    0:18:30 and have certain thoughts that accompany those exact words.
    0:18:32 And so I have in my mind
    0:18:35 that when you come into a first session,
    0:18:37 I’ve just said it yesterday,
    0:18:39 you come in with a particular story.
    0:18:41 By the time you leave that first session,
    0:18:44 my goal is that you will leave with a different story.
    0:18:45 And if you leave with a different story,
    0:18:48 you leave with a different experience of yourself
    0:18:52 in your relationship, which opens up possibilities
    0:18:55 for new insights, for changes,
    0:18:58 for new degrees of responsibility,
    0:19:01 and for freeing your perception of your partner
    0:19:04 as stuck in the story that you have put them in as well.
    0:19:08 So the change, the story is to create movement,
    0:19:11 is to create possibility for change.
    0:19:15 And that is basically why people do come to therapy.
    0:19:18 – I think narratives affect more than our relationships, right?
    0:19:20 They affect how we live, they affect how we see the world,
    0:19:22 they affect how we see others.
    0:19:24 And part of understanding and connecting
    0:19:26 with other people is not necessarily agreeing
    0:19:28 with their narrative, but seeing their narrative.
    0:19:30 – So let me give you an example, right?
    0:19:32 Because I literally had this experience
    0:19:34 a few days ago, a couple of days ago.
    0:19:38 So a couple comes in, and the original presentation
    0:19:40 is that they have big fights, nasty fights.
    0:19:44 She becomes very mean, she gets abusive, she curses.
    0:19:47 She grew up in a very abusive household herself.
    0:19:51 And it is about, the story is really presented like,
    0:19:53 she’s fine, basically.
    0:19:56 It is not that he’s fine, nothing is said really about him.
    0:19:58 And she’s the problem.
    0:20:00 That’s a classic presentation.
    0:20:01 One person’s the problem.
    0:20:04 And then it turns out that he’s not just okay,
    0:20:06 he’s actually a saint.
    0:20:08 He’s the little prince.
    0:20:09 That’s how he ends up calling himself.
    0:20:13 He’s the little prince who actually can do no wrong.
    0:20:16 And therefore, anytime she asks for something,
    0:20:18 if she says, I wish you bring me flowers or something like that,
    0:20:23 it instantly becomes a slight to him, an indignation.
    0:20:25 Because he’s so good, how could he do anything
    0:20:29 that is missing or shortcoming or…
    0:20:33 And gradually, the session evolved into taking her out
    0:20:37 of the role of being the identified patient
    0:20:41 and looking at how they actually were in a dynamic together,
    0:20:46 in which de facto, there was nothing she could ever ask or say
    0:20:49 because he appeared like he was so put together and strong.
    0:20:51 But in fact, he was very, very fragile
    0:20:58 and always at risk of feeling fractured in his, you know,
    0:21:01 in his attempts at creating a strong identity,
    0:21:04 but it wasn’t nearly as strong.
    0:21:08 And gradually, it became clear that maybe she wasn’t just
    0:21:12 the fragile was one, but he was as well.
    0:21:16 And that there was a whole story behind, you know,
    0:21:20 how he lived with this idea that he is so good all the time
    0:21:24 and he’s been so good to his very sad mother her whole life.
    0:21:28 And therefore, any comment is unfair to him.
    0:21:30 And it totally changed the dance.
    0:21:32 It totally changed the dance
    0:21:35 because it looked like she had been this unreasonable,
    0:21:38 hysterical woman who would come up with these big requests.
    0:21:41 No, it wasn’t. It wasn’t at all.
    0:21:44 And we laughed and we rewrote the story.
    0:21:48 And we changed the whole equilibrium between the two of them
    0:21:51 in terms of who does what and who’s responsible for what
    0:21:54 and who triggers who, how, and when.
    0:21:58 And movement got, you know, air came into the room if you want
    0:22:02 and air is what, you know, air creates expansion.
    0:22:04 So you breathe differently. You sit differently.
    0:22:07 You listen differently. You move differently.
    0:22:08 And the story begins to evolve.
    0:22:11 And from that place, we began to, you know,
    0:22:15 chisel away at some of the stuckness of the relationship.
    0:22:16 It’s that what I mean with the story.
    0:22:19 It’s not just you sit, you know, and talk.
    0:22:23 It’s that the story that is linked to emotions
    0:22:25 and emotions are embodied experiences.
    0:22:27 So when people tell you a story a certain way,
    0:22:29 they also sit in a certain way
    0:22:32 that leads to telling that kind of story.
    0:22:33 If you change the story,
    0:22:35 the body will move differently as well.
    0:22:39 It’s a very holistic kind of thing.
    0:22:41 But it was so clear in this instance
    0:22:44 because it was a while ago that I had had one of those
    0:22:47 where you read the intake and you think, wow, you know,
    0:22:50 there is a healthy one and a not.
    0:22:53 And whenever I get one of those stories
    0:22:56 and the not is willing to agree that they are the not
    0:22:58 when they’re not, they’re not.
    0:23:01 Everybody has their adaptive child inside of them
    0:23:04 with which they try to survive in the world.
    0:23:06 But underneath is the other one,
    0:23:10 the one that dealt with the vulnerabilities if you want
    0:23:13 and then came up with all these coping styles, you know?
    0:23:16 So that was a way of changing the story.
    0:23:18 The guy came in with a rather inflated
    0:23:22 lofty sense of himself and left with a more realistic way
    0:23:23 of thinking about himself
    0:23:25 and a very different way of thinking about his wife.
    0:23:28 – What happens after that?
    0:23:32 – What happens after that?
    0:23:38 Basically, I gave them an exercise
    0:23:41 which I suggest that they do a few minutes every day
    0:23:45 by which she makes statements to him or requests
    0:23:47 or just says certain things.
    0:23:52 And he gets to answer to what she actually says to him.
    0:23:58 I said, you know, I would like you to just very simple,
    0:23:59 right?
    0:24:01 She would say, you know, I would love you
    0:24:03 to bring me oranges tonight.
    0:24:05 And instead of doing his typical,
    0:24:08 when is the last time you brought me the strawberries
    0:24:09 that I like?
    0:24:11 That’s kind of his modus operandi.
    0:24:12 It’s always, you know, you want something from me?
    0:24:14 What about you?
    0:24:17 You know, he could simply say to her,
    0:24:20 I know you would like me to bring you an orange.
    0:24:22 Very basic reflective listening.
    0:24:25 But that reflective listening for him
    0:24:30 starts a process by which he’s able to hear.
    0:24:32 He’s able to just stay with her,
    0:24:34 not make everything about him,
    0:24:37 because every time he makes it about him,
    0:24:41 it makes her think that indeed there is no room for her
    0:24:42 unless she screams.
    0:24:44 So she goes back to her childhood
    0:24:46 where you needed to scream in order to be heard.
    0:24:48 But it’s not just because that’s how she is.
    0:24:51 It’s because there’s a dance between them.
    0:24:53 Because literally there is no way for her
    0:24:54 to say something about her
    0:24:57 that he doesn’t make about him and in a defensive way.
    0:25:01 So we began to chisel away at the defensiveness.
    0:25:03 And we did it with humor
    0:25:05 and with all kinds of crazy statements
    0:25:07 because if you bring in some of the absurd,
    0:25:09 you can highlight that it’s in the form
    0:25:11 and not in the specific content that this matters.
    0:25:14 And it was really for him to actually understand
    0:25:16 that when you just repeat something
    0:25:17 and acknowledge something,
    0:25:19 that you don’t have to be responsible for it.
    0:25:21 You didn’t do anything wrong.
    0:25:24 It’s like all he heard all the time at any very request
    0:25:25 is that he had done anything wrong,
    0:25:27 which wasn’t what she was saying.
    0:25:32 So what you have in a couple is people hear the inaudible.
    0:25:35 They hear what they heard in their childhood,
    0:25:37 but it’s not really what is being said to them
    0:25:38 in the present moment.
    0:25:41 And you need to bring reality in
    0:25:42 so that they can become the adults
    0:25:44 that they both need to be.
    0:25:46 And I do it with enactments
    0:25:50 and made them say, you go home and do this for a bit.
    0:25:54 And write to me, write to me every night just a check,
    0:25:56 just to say it did it.
    0:25:58 Because if you practice this
    0:26:00 and you do it with a good dose of humor,
    0:26:03 gradually you get the point.
    0:26:05 The point is much more serious and deep
    0:26:06 than the little exercise.
    0:26:11 But basically it changed the entire perspective.
    0:26:15 So from there, you begin, therapy is like sculpting.
    0:26:17 At first you carve away gross shapes.
    0:26:20 You make big motions, big interventions
    0:26:22 so that you get the basic.
    0:26:24 And then you start to chisel.
    0:26:26 And it’s the middle phase of therapy
    0:26:29 where you literally create the lasting shape
    0:26:32 of how this relationship could really enter
    0:26:35 into a new dance with each other.
    0:26:37 And the dance will be that I think, you know,
    0:26:39 the goal is that she won’t lose it,
    0:26:41 that she won’t end up cursing him
    0:26:44 where he indeed feels like he did everything wrong,
    0:26:46 that they don’t get to that place
    0:26:47 and that they certainly don’t get there
    0:26:49 in 10 seconds from zero to a hundred.
    0:26:52 And that he doesn’t spend his time
    0:26:54 constantly proving that he’s the little prince
    0:26:56 and that he can therefore hear her
    0:26:58 without constantly, you know,
    0:27:01 just measuring his image in his mirror.
    0:27:04 It’s that fundamental change that needs to take place.
    0:27:06 They’re less, they’re a young couple
    0:27:08 in terms of how long they are together.
    0:27:11 And so it’s actually really not too encrusted yet
    0:27:14 and they will have a different relationship.
    0:27:17 You know, they will, if they stick to it
    0:27:19 because they want it
    0:27:23 and because I think they have what it takes.
    0:27:24 – You mentioned that they were a young couple
    0:27:27 and that sort of call, I have a question about
    0:27:29 what are the important conversations
    0:27:31 to have with your partner early in a relationship
    0:27:34 and how do those differ from the important conversations
    0:27:36 to have later in a relationship?
    0:27:42 – You know, there is a theory that says
    0:27:45 that basically whatever you discuss
    0:27:47 the difficult conversations, if you want,
    0:27:49 that you discuss 20 years later,
    0:27:51 they were all there in the first two dates.
    0:27:55 People actually know their things.
    0:27:59 They know their key conversations from the first moment.
    0:28:02 It’s not that you have different conversations.
    0:28:03 The conversations evolve
    0:28:05 because you have different life stages.
    0:28:07 You have different stressors.
    0:28:12 You have different seasons and phases in a relationship.
    0:28:15 There are new members sometimes that join, children.
    0:28:17 There are people who leave, death and loss.
    0:28:21 And all of those shift the system.
    0:28:23 A couple is a relational system.
    0:28:28 And that system is continuously morphing and adapting itself
    0:28:31 to external things, work, money,
    0:28:36 where they live, moving, et cetera, health and internal things.
    0:28:41 And the conversations that you have are about that, you know.
    0:28:43 But there are a few basic ones
    0:28:44 you want to have in the beginning.
    0:28:47 This couple, you know, they have 20 years apart.
    0:28:48 They’re young as a couple.
    0:28:51 They’re not necessarily both young in age.
    0:28:53 She has more experience than him.
    0:28:57 Even though she’s 20 years younger in terms of relationships,
    0:28:59 he’s actually quite new at this,
    0:29:03 at a more kind of committed long-term relationship.
    0:29:06 Where do they want to live?
    0:29:07 They’re both foreigners.
    0:29:10 Do they want to have a family together?
    0:29:13 How will they arrange their professional lives together?
    0:29:15 You know, in this instance,
    0:29:17 he comes from a rather traditional family
    0:29:21 where he’s used to come home and there’s food on the table.
    0:29:23 Well, is that the woman you picked?
    0:29:26 You know, is that been discussed between the two of you
    0:29:27 or is that an assumption?
    0:29:29 And if it’s an assumption,
    0:29:32 you only make a statement when the food is not on the table.
    0:29:35 And she says, why don’t you cook on occasion, you know?
    0:29:37 So it’s about people’s values.
    0:29:40 It’s about people’s expectations.
    0:29:43 It’s about people’s vision for life.
    0:29:46 What do they look for in life?
    0:29:49 And is there a compatibility about that?
    0:29:52 You know, I think one of the big conversations
    0:29:54 that accompanies every relationship
    0:29:57 is about closeness and separateness.
    0:30:02 What is together and what is individualistic or what individual?
    0:30:06 You know, how much money do you get to spend alone?
    0:30:08 And how much money, you know,
    0:30:10 is involved that you start to have a conversation with the other?
    0:30:12 Do you travel alone or only together?
    0:30:15 Do you go to bed together every night?
    0:30:17 Or can you go to sleep when you’re actually tired
    0:30:19 without having to become a unison?
    0:30:23 You know, how do you want to parent?
    0:30:25 How do you envision family life?
    0:30:28 How do you see your relationship to the extended family?
    0:30:30 What are the boundaries with the grandparents
    0:30:31 or with your in-laws?
    0:30:33 What do you do with your exes
    0:30:35 or with your deep friendships with other people?
    0:30:37 Do you continue them? Do you maintain them?
    0:30:40 Can you maintain them alone or do they become couple friends?
    0:30:44 The issue of boundaries of what is ours and what is mine?
    0:30:46 What do I get to still decide alone?
    0:30:48 What is my zone of freedom
    0:30:52 and what is our zone of commitment and togetherness?
    0:30:56 I think this is probably one of the very important conversations.
    0:30:58 People don’t discuss it with those terms,
    0:31:03 but they factor that is what they are talking about.
    0:31:07 I love the idea of sort of couples discussing values.
    0:31:09 And I don’t… Are those values permanent?
    0:31:11 Do values change over the course of a relationship?
    0:31:15 Do what you expect out of a relationship, does that change?
    0:31:18 Because often people say they grow apart.
    0:31:20 Is that true? How does that happen?
    0:31:22 Yeah, but I’ll answer that in a sec.
    0:31:26 It’s a different… For example, I saw a couple this week
    0:31:29 and they’re having infertility issues.
    0:31:32 And one of them wants to really get in there
    0:31:36 and use all the means possible that science and medicine can provide.
    0:31:39 And the other person basically is a more religious person
    0:31:44 and says, “If it’s meant to be, those are not things we decide.”
    0:31:48 And this is a real philosophical value question.
    0:31:54 What is the right of an individual to tamper with fate, if you want?
    0:31:58 Or to tamper with what life puts in front of you?
    0:32:01 Do you go at it and try in every way you can
    0:32:04 because your agency is what’s at the center?
    0:32:09 Or is what’s at the center an acceptance of what life puts in front of you?
    0:32:12 Or if you want, what God puts in front of you?
    0:32:14 But they’re not discussing it like that.
    0:32:16 They’re talking about should they go for infertility treatment
    0:32:19 and when is the next IVF cycle.
    0:32:22 But what they really are talking about is that.
    0:32:25 And once you actually put it in terms of values,
    0:32:30 it becomes much less a debate between them about who is passive and who is active,
    0:32:32 who gets things done and who is lazy.
    0:32:38 And it becomes a kind of a “you bad” rather than “you different.”
    0:32:42 That’s why values become really important in these conversations.
    0:32:48 You know, we discuss feelings, we discuss values, we discuss beliefs,
    0:32:54 we discuss political assumptions, we discuss our view to the universe,
    0:32:56 you know, and how we see our place on this planet.
    0:32:59 But we don’t discuss it as if we’re in a philosophy course.
    0:33:05 We talk about it in terms of how we relate to food and to excess or to abundance,
    0:33:09 how we are either looking at what’s missing or at what’s there.
    0:33:15 It takes place in small micro moments, but in fact, the conversations are about big ideas.
    0:33:18 So when you ask, do people grow apart?
    0:33:23 Look, when people grow apart, it’s not because they have a difference of opinion necessarily,
    0:33:26 because some couples have major differences in opinion,
    0:33:30 but they continue to remain deeply connected, curious about each other,
    0:33:38 respectful of who they are, and they’re not threatened by the difference of the other, basically.
    0:33:41 Other couples, the slightest difference is World War III.
    0:33:44 You know, so it’s not in the difference itself.
    0:33:46 It’s in the way that people experience the difference.
    0:33:50 If you’re secure, you can be next to somebody who doesn’t eat meat
    0:33:55 and you don’t need them to be like you in order to validate yourself.
    0:34:00 So when people grow apart, what’s happening is both there are two kinds of growing apart.
    0:34:06 There’s either bickering, chronic conflict or high conflict,
    0:34:10 or there is disengagement and indifference and separateness.
    0:34:17 You can either have too much or too little of the thing that actually makes people grow apart.
    0:34:20 You know, that’s really the choreography of growing apart.
    0:34:27 It’s constant fighting, or it’s so far apart that you don’t even notice if the other one is there or not there.
    0:34:29 That’s the apart.
    0:34:36 In the instance of high conflict, what you get is people who are in very critical relationships.
    0:34:38 Everything is negative.
    0:34:40 There is a blame and defense dance.
    0:34:44 You do, I defend, I counter-attack, you defend, you blame me.
    0:34:48 And we just go at this all the time and we react to everything the other person is doing.
    0:34:51 For everything you do, I have something to say.
    0:34:56 You know, and people basically feel diminished and they feel like they don’t recognize themselves.
    0:35:01 And, you know, they constantly blame the other for their misery.
    0:35:06 That’s the other thing, is they really hold the other person responsible for how unhappy they are.
    0:35:10 On the other side, what you have is people who no longer share much of anything.
    0:35:17 And they live entire separate lives and there’s very little that brings them together.
    0:35:25 And there is a sense of isolation, of sometimes of loneliness, of indifference, of neglect,
    0:35:30 of lack of contact, of lack of what we call bids for connection.
    0:35:34 You know, ways in which it’s clear that you’re part of my life.
    0:35:37 You’re part of the fabric of my every day.
    0:35:39 It’s like they’re just so far apart.
    0:35:45 And both of these are descriptions of couples that grow apart.
    0:35:48 You mentioned something in there that I just want to explore a little bit.
    0:35:49 I’m curious about, which is secure.
    0:35:52 What does it mean to be secure in a relationship?
    0:36:00 I’m going to give it to you as an image of a little child.
    0:36:03 You know, do you have kids?
    0:36:04 I do, yeah.
    0:36:05 All right.
    0:36:07 So, how old, if I’m just so I can read the metaphor.
    0:36:08 Oh, ten and nine.
    0:36:09 Ten and nine.
    0:36:13 So, at ten and nine, you still have it very much and you’ve had it from the beginning.
    0:36:21 They sit on your lap or they hold you or they rest on your shoulder or on your chest.
    0:36:23 They are nested.
    0:36:24 They need nothing at that moment.
    0:36:31 They’re just kind of a completely at ease or they’re trying to console themselves,
    0:36:37 but they are drawing from you their sense of comfort and consolation.
    0:36:40 And at some point, they’re done.
    0:36:41 It’s all fine.
    0:36:46 And they get up and they begin by crawling or they go, they run.
    0:36:52 They basically leave you to go and be into their own world, to go to play, to go to do
    0:36:53 their thing.
    0:36:55 They are now experiencing freedom.
    0:37:02 They’ve just experienced safety and security and attachment and nesting and now they’re
    0:37:05 moving into the world and they’re going to do hide and seek.
    0:37:10 They’re playing their own imaginary realm and in order to play, they have to be free
    0:37:15 and unselfconscious and free of worry, otherwise you can’t play.
    0:37:20 To be secure in a relationship is to have both of those things, is to be able to come
    0:37:25 back to the harbor, to anchor yourself, to feel rooted, and then to get up, to leave,
    0:37:28 and to go and play without having to worry.
    0:37:29 Now, what is it that you don’t have to worry about?
    0:37:34 You don’t have to worry about the fact that when you go, you’re leaving somebody there
    0:37:39 who is suddenly bewildered and anxious and depressed and angry, but actually somebody
    0:37:45 who is totally at ease letting you go or that you worry that when you come back, they won’t
    0:37:47 be there.
    0:37:51 And that hide and seek, that’s why that game is so important, is to know that even when
    0:37:54 I’m gone, I live inside of you.
    0:37:57 Even when I’m gone, when I come back, you’ll be there.
    0:37:59 Even when I’m gone, I take you with me.
    0:38:06 And so I experience freedom and connection at the same time that is security in a relationship
    0:38:09 for adults and for children.
    0:38:10 I like that a lot.
    0:38:14 And one of the other things I wanted to follow up on was sort of, it sounded like we were
    0:38:18 almost getting into common argument patterns within couples.
    0:38:23 What are the most common argument patterns that you see and how do we learn to have better
    0:38:27 conversations with our partner?
    0:38:33 There are three primary choreographies of arguments.
    0:38:38 One is fight-fight, fight-flee, flee-flee.
    0:38:43 So either we go at each other and both of us go at each other and we enter into the
    0:38:51 more conflict, you know, bickering, chronic picking.
    0:38:57 The other version is one person attacks, but the other person flees or stonewalls or withdraws
    0:39:00 and you get pursuer-distancer.
    0:39:04 One pursues the whole time and the other one is distancing.
    0:39:08 And the third one is you’ve got both people basically closing the door, going into their
    0:39:11 room and not talking to each other for the next two days.
    0:39:15 That’s three main choreographies of arguments.
    0:39:21 And what’s really important in terms of couples and relationships in general, I will say,
    0:39:26 is that it’s probably one of the golden rules, is to understand that the choreography, the
    0:39:30 form, is way more important than the content.
    0:39:35 If you have people who are going at each other, they go at each other about everything.
    0:39:38 It’s not the specific topics that make them go at each other.
    0:39:43 Their style is we attack and every subject will be spoken like that.
    0:39:48 If they are into we close the door, it’s not the particular issue that makes them close
    0:39:49 the door.
    0:39:52 They close the door and every issue they will discuss, they’ll address it with the same
    0:39:54 dance.
    0:39:59 What you’re challenging in a couple is the dance, is the rigidity of the way that they
    0:40:01 go at it.
    0:40:06 One person instantly raises their voice, the other person basically shuts down, rolls
    0:40:11 their eyes, says, “Here you go again,” waits, all of these motions.
    0:40:16 That’s what happens in a couple that struggles with this stuff.
    0:40:17 You’re asking me about arguments.
    0:40:21 So those are the three choreographies of arguments.
    0:40:26 When I was doing research for this, one of the things that struck me as incredibly insightful
    0:40:31 and I wish I had known a long time ago was you said behind every criticism is a wish.
    0:40:34 Can you expand on that and explore that with us for a little bit?
    0:40:39 Yeah, why don’t you ask me a question about my new podcast, for example, right?
    0:40:43 That would be, I actually would like you to talk with me about my new podcast.
    0:40:45 But I won’t say that, right?
    0:40:47 Why don’t you bring me flowers?
    0:40:49 Why didn’t you say good morning?
    0:40:51 Why didn’t you thank me when I did?
    0:40:53 What is actually what am I saying?
    0:40:54 I’m saying, I wished you had thanked me.
    0:40:58 I wished you had noticed that I bought you this new suit.
    0:41:03 I wished you had shown me your appreciation for, I wished.
    0:41:07 But if I say I wished, I have to put myself out there.
    0:41:10 It means I want something and I can be refused.
    0:41:12 I can be rejected.
    0:41:14 I can be not heard.
    0:41:20 And that in a relationship that is not secure, I will defend against that.
    0:41:22 I don’t want to show you that side of me.
    0:41:26 So instead of saying what I want, I’ll say what you didn’t do.
    0:41:28 That’s the criticism.
    0:41:34 What you didn’t do and what’s wrong with you is safer in some bizarre way than to tell
    0:41:38 you what is special about me and what I would have wanted.
    0:41:39 Is that selfish?
    0:41:43 No, I don’t think it’s selfish per se.
    0:41:47 Because you’re valuing yourself over the relationship by doing that, aren’t you?
    0:41:50 By putting it out there, you’re saying in a way, and maybe I got this wrong.
    0:41:51 So correct me.
    0:41:55 In a way, by putting it out there and being vulnerable, you’re saying us is more valuable
    0:41:59 than what I’m feeling and my vulnerability.
    0:42:03 And when you hold it in and you’re unwilling to be vulnerable and you’re just criticizing,
    0:42:08 isn’t that saying that right now, at this particular moment, I’m valuing myself more
    0:42:10 than I’m valuing this relationship?
    0:42:11 No.
    0:42:13 I would put it to you differently.
    0:42:21 I’m saying that you didn’t do something because I actually really, it’s very interesting.
    0:42:23 I’m going to try to explain this to you.
    0:42:25 It’s not about being selfish.
    0:42:30 It’s actually about feeling not worthy enough.
    0:42:37 I actually believe on some level that maybe you really don’t care about me or that I’m
    0:42:42 not loved or more than I’m not lovable.
    0:42:50 And because of that fundamental lack of sense of self-worth, I say you didn’t do this rather
    0:42:53 than say, I’m not sure I deserve to get this.
    0:42:56 I’m not sure you love me enough to want to do this for me.
    0:43:01 I’m not sure that I’m good enough a person to even deserve to have this.
    0:43:03 And that’s why I put it on you.
    0:43:04 That makes sense.
    0:43:05 Do you get it?
    0:43:13 It’s a, if I say, you never ask me how I’m doing, you come home and you just start talking
    0:43:17 about your day, and then when you’re done, you basically go to your phone and you do
    0:43:18 it.
    0:43:22 When’s the last time you asked me about me?
    0:43:24 What am I actually saying?
    0:43:26 I’m saying I feel neglected.
    0:43:28 I’m saying I feel ignored.
    0:43:32 I’m saying I wonder if you’re still curious about me.
    0:43:36 I’m saying maybe you’re more interested in many other people when you don’t really believe
    0:43:41 that I have anything important to say, or maybe I’m saying you’re selfish and you only
    0:43:45 think about you, which just goes on with, you know, I’m not important enough for you
    0:43:49 to think about me.
    0:43:54 That’s all some of the things that go underneath, or I’m saying I’ve already told you five
    0:43:59 times that I would like on occasion that we also talk about my day and you really are
    0:44:00 not interested.
    0:44:04 You’re not listening, and I don’t want to say it one more time and again feel hurt that
    0:44:10 it’s not coming because you are so selfish to think about you the whole time.
    0:44:18 So it’s basically, it’s actually a protective device, interestingly, to criticize the other
    0:44:21 person is a protection against being hurt.
    0:44:24 I think that makes a lot of sense.
    0:44:26 As wonky as it sounds.
    0:44:31 Yeah, I mean, you said it and I’m like, Oh, I was totally wrong.
    0:44:34 Is there such a thing as too much honesty in a relationship?
    0:44:40 And is sort of the opposite of transparency and honesty a secret, or how do you, how do
    0:44:47 we think about these, these dynamics of honesty and transparency and secrecy and caring for
    0:44:49 our partner?
    0:44:53 Look, I will say to you like this.
    0:44:57 I tend to not think in categoricals.
    0:45:05 I think that all of those behaviors, values, interactions, honesty, transparency, confession,
    0:45:08 they are all contextual.
    0:45:14 They are all contextual relationships take place in a context.
    0:45:23 And once you agree with that premise, then you ask, what does honesty mean in this relationship
    0:45:24 at this moment?
    0:45:29 Is it caring or is it cruel?
    0:45:31 There’s consequences to honesty.
    0:45:35 What will it be like for the other person to live with what I just said?
    0:45:39 I actually really think I should never have married you.
    0:45:40 You’re dumb.
    0:45:44 You haven’t said an interesting thought in God knows how long.
    0:45:49 I actually still really think about the person that I was living with before, but they died
    0:45:54 and I remarried you because I had four kids, but what was I going to do?
    0:45:59 What if it’s hurtful but causing you problems like I’m no longer in love with you?
    0:46:01 Well, deal with it.
    0:46:02 That’s hurtful for your partner though.
    0:46:03 Is that something?
    0:46:06 If you don’t, if you have doubts, deal with it.
    0:46:11 There’s no need to, what can the other person do with those doubts?
    0:46:16 I mean, it’s like, you know, what am I going to say, I’m not attracted to you anymore?
    0:46:21 What can the other one do about that, assuming that they still try very hard to look good
    0:46:27 and all of that and they haven’t gained 75 pounds and even then, it’s like, you know,
    0:46:34 if you have doubts, at best, you figure it out alone and then on the things that the
    0:46:39 other person can’t do anything about and then you basically say, you’re a fantastic person,
    0:46:45 but I don’t want to live with us anymore and I know this is going to hurt you terribly,
    0:46:51 but you don’t put the other person in a bind about something, they can’t change.
    0:47:00 You know, some honesty is cruel and, you know, I wish I could leave you, but I don’t because
    0:47:04 I like our lifestyle, excuse me.
    0:47:06 You know, that’s your problem.
    0:47:09 That’s not the other person’s problem.
    0:47:14 I think we should really not confuse sometimes what are things that we need to take responsibility
    0:47:15 for?
    0:47:18 What I’m going to be angry with you because I feel trapped.
    0:47:19 They’re not trapping you.
    0:47:22 You want to go, you go, but I don’t want to go, but I’m angry at you for the fact that
    0:47:24 I can’t go.
    0:47:30 These are all the dances and the games that people play with each other in the name of
    0:47:31 honesty.
    0:47:35 Of course, I think a lot of things need to be shared and discussed because we live in
    0:47:42 a time where we really value that kind of intimacy as true telling and intimacy as a
    0:47:44 discursive experience.
    0:47:45 Right?
    0:47:48 Intimacy is what I share with you about my inner life.
    0:47:54 That’s a very, very recent Western new definition of the word intimacy, into me see.
    0:48:00 I’m part of that culture too, but I also am aware that people say things, “Well, you told
    0:48:01 me I should tell you how I feel.”
    0:48:04 Well, I think you’re a freaking slob.
    0:48:06 Is that useful?
    0:48:09 Do you get something from that?
    0:48:10 No.
    0:48:11 It may be true, but it’s not useful.
    0:48:16 I find myself saying so often to people, “You may be right, but you are alone,” and it’s
    0:48:20 not difficult to be right and alone.
    0:48:24 Is your goal to get your partner to change and to do more of what you want, and this
    0:48:26 is really not helpful?
    0:48:31 Oh, but it’s authentic, okay.
    0:48:34 It’s authentically useless.
    0:48:38 I do this with my kids sometimes where I’m like, “You’re right, but you’re not going
    0:48:39 to get the outcome that you want.”
    0:48:40 That’s right.
    0:48:41 That’s right.
    0:48:42 What is it you want?
    0:48:44 You want me to tell you how you think?
    0:48:45 I got it.
    0:48:48 You want us to agree on something differently?
    0:48:53 You got to go at this and not like that, because every time you tell me you’re right, you’re
    0:48:57 implying I’m wrong, and if you’re implying I’m wrong, I’m less likely to cooperate with
    0:48:58 you.
    0:49:02 It’s like, don’t lose the compass.
    0:49:04 What is it you’re actually trying to achieve?
    0:49:13 People say lots of stuff to each other in my office, and I’m like thinking, “You probably
    0:49:14 are right.”
    0:49:16 In myself, I’m thinking, “I could see that.
    0:49:21 I can totally see how after all these years, this is how you see your partner.”
    0:49:23 But seriously, you want to be close, right?
    0:49:26 I find that’s supposedly what you said you want.
    0:49:27 You know what?
    0:49:32 After the dump you just made, I’m not sure you’re going to get close, so tell me what
    0:49:33 is it you want?
    0:49:37 You want to shrink your partner and shrivel them up and make them feel terrible about
    0:49:40 themselves, or you actually want something from them?
    0:49:43 If you want something from them, you’re going to have to do this very differently.
    0:49:46 So sorry.
    0:49:51 How often are those conversations high stakes because we’ve waited so long to have them
    0:49:59 versus we should have had them months or years or perhaps decades earlier, and now they’re
    0:50:00 so hard.
    0:50:05 We have an internal conversation with ourselves that just comes out almost like a fire hose
    0:50:11 at this point, whereas had we had it earlier, it would have been a trickle.
    0:50:16 How do we learn to bring those things up when the stakes are low?
    0:50:21 So I will first challenge you that the stakes are not necessarily low because you’re in
    0:50:22 the beginning.
    0:50:29 There are lots of people who come with heavy suitcases.
    0:50:34 And it doesn’t take long, you know, a few months, a year for the suitcases to open,
    0:50:39 and everybody brings their history with them, and the way that they learned to interact
    0:50:44 with people, particularly their loved ones, and what they learned at home.
    0:50:52 So it’s not necessarily that people are always just so nice in the beginning and they accumulate
    0:50:53 over time.
    0:50:59 You accumulate because of the resonance of the stuff that is happening with your partner.
    0:51:04 If the stuff that happens with your partner is so instantly similar to what you experienced
    0:51:07 at home, it doesn’t take long.
    0:51:12 It’s not the time, it’s the actual echo chamber of what you have in your relationship
    0:51:15 and how it mirrors what you had in your family of origin.
    0:51:19 That’s what creates the intensity.
    0:51:26 That said, what does happen over time is that the patterns, the back and forth, the conversation,
    0:51:34 I had a couple this week, it’s really interesting, lesbian couple, wonderful couple, but they
    0:51:40 are four years together.
    0:51:45 And basically, I kind of could see in the conversation within five minutes that what
    0:51:52 they were saying to each other, this was probably number 197 times the same conversation.
    0:51:53 Like this is it.
    0:51:55 This is the one.
    0:52:02 It’s so patterned, predictable, rigid, narrow, and boring.
    0:52:03 And they’re trapped.
    0:52:04 They know they’re trapped.
    0:52:08 That’s why they’re there because they’re stuck because it’s the same old, same old.
    0:52:14 So at one point, I basically switched seats and I made them reverse roles.
    0:52:18 And each one for the next 15 minutes basically spoke as if she was the other.
    0:52:19 It was phenomenal.
    0:52:23 It’s like, if you’re worried that they don’t hear each other and that’s why they need to
    0:52:26 repeat the same thing again, no worries.
    0:52:29 They know each other’s words by heart.
    0:52:33 They could play the other person to the teeth.
    0:52:38 So then once we established that, I said, okay, now we can maybe start to have a different
    0:52:39 conversation here.
    0:52:43 I mean, this is like, you know, one says one thing, the other one snaps right in there like
    0:52:44 a banana peel.
    0:52:49 You slip on it and up you go, you know, and I say this and she says that and it’s this
    0:52:50 ping-pong.
    0:52:56 But once they did the role play, they actually began slowly to get into the experience of
    0:53:02 the other because you really do enact what the other one is really trying to tell you.
    0:53:08 And then you ask them, and how does it feel when you’re saying this yet again, you know?
    0:53:18 And it’s that thing that you try to break is the rigidity and the immediacy where you
    0:53:24 want to create space for something new to be able to come in so that change can occur.
    0:53:31 Otherwise, people do sometimes come dead upon arrival because what you’re looking for is
    0:53:36 their motivation on the part of each person to want to do something different.
    0:53:41 You know, most of the time people don’t come to couples therapy or relationship therapy.
    0:53:46 It’s the same with families when I see families to say what they want to do different.
    0:53:49 They come with a long list of expectations of what they want their partner to do different.
    0:53:55 You know, it’s like a drop-off center, came to bring you my partner, you fix it.
    0:54:02 And you’re trying to say therapy becomes helpful in relationships when each person
    0:54:09 is willing to do something new, regardless, non-contingent on what the other person is
    0:54:10 doing.
    0:54:13 You become committed, you’re not going to do the usual.
    0:54:18 If the usual is you close your door and you don’t say another word, or if the usual is
    0:54:22 you just up the volume, or if the usual is you go on the vicious attack, or if the usual
    0:54:28 is that you just kind of talk about the weather when the other person is talking about their
    0:54:33 dying mother, you’re going to make an effort to change what you do.
    0:54:39 Because if you consistently start to do something different, at some point the other person has
    0:54:42 to adapt, because it’s ping-pong.
    0:54:47 If the ball goes to a different corner, you can’t stay standing on the other side.
    0:54:50 At some point you will move.
    0:54:56 Why does good sex so often fade in relationships, even for couples who continue to love each
    0:54:57 other?
    0:55:04 There are loads of reasons, I think, that sex fades.
    0:55:09 And when I say that sex fades, I think that it’s important to distinguish.
    0:55:13 I’m not talking about the act of sex itself.
    0:55:23 People can have some type of regular sexual activity, perfunctory, comfortable, or less
    0:55:28 comfortable, but I’m not interested in the performance of sex.
    0:55:36 That is not really what the people come to me for, I would say like that.
    0:55:40 Some people come because they’ve become really sexless relationships.
    0:55:48 Sometimes they are deep, affectionate couples that are de-eroticized, that are desexualized.
    0:55:53 But sometimes what they want is to reconnect with a degree of intensity, of aliveness,
    0:55:56 of erotic charge.
    0:56:01 And that’s very different than just the act of doing sex.
    0:56:08 So that said, there’s a long list of things that make people disconnect from their erotic
    0:56:11 self, basically.
    0:56:13 And some of them are not of their choice.
    0:56:14 They’re stressors of life.
    0:56:15 They have to do with health.
    0:56:18 They have to do with economic difficulties.
    0:56:25 They have to do with employment struggles, et cetera, et cetera, and children and family
    0:56:26 life and all of that.
    0:56:32 But sometimes it’s also, I think, and that’s where it became the exploration that I got
    0:56:33 interested in.
    0:56:37 It’s really a kind of a breakdown of the imagination.
    0:56:45 It’s a willingness to go for the least, basically.
    0:56:52 It’s the same difference as cooking a beautiful meal for which you thought about, you bought
    0:56:57 the special ingredients, you took the time to prepare it, you set a nice table, you looked
    0:57:03 forward to sitting down, to enjoying it, to having good conversation, maybe good wine
    0:57:10 that accompanies it, et cetera, versus cutting a tomato, which is perfectly fine.
    0:57:15 But it doesn’t have the same poetry attached to it.
    0:57:21 And that’s what happens to people’s sexualities, is it becomes the kind of basic lasting on
    0:57:27 the list that you should do at the end of a long day as if it’s one more chore in a messy
    0:57:33 room that is rather uninspiring without much playfulness, without much imagination, without
    0:57:36 much creativity.
    0:57:42 You can do it, but doing it is not the same as the quality of the experience that comes
    0:57:44 with it.
    0:57:45 And that’s why it fades.
    0:57:51 It fades because people don’t necessarily invest in it and value it as something, you know,
    0:57:54 in the beginning it seems to come on its own, supposedly.
    0:57:56 So you don’t have to do anything.
    0:58:00 And people have this idea that it should be spontaneous, and it should, you should just
    0:58:02 be in the mood, and it should just come.
    0:58:07 And all these shoulds, whatever is going to just come in a long-term relationship already
    0:58:08 has.
    0:58:11 So it demands predetermination.
    0:58:13 It demands really creativity.
    0:58:19 It demands intentionality and premeditation, which is very tricky to premeditate sex, because
    0:58:23 it supposedly goes against this romantic, you know, “I just was swept and it came all
    0:58:25 over me.”
    0:58:30 Part of why we lose it is because we are filled with mistaken ideas about what actually it
    0:58:35 takes to create pleasure, desire, and excitement.
    0:58:38 Oh, that’s a good segue into love and desire.
    0:58:42 What’s the relationship between pleasure, desire, love?
    0:58:48 Is love about closeness and desires sort of like finding new experiences or adventures?
    0:58:53 And how does that fit in?
    0:59:00 I mean, I at one point played with the idea that love is about having and desire is about
    0:59:02 wanting.
    0:59:07 And therefore, it’s two different verbs that often pull us in different directions.
    0:59:13 Love thrives on closeness, it thrives on deep knowledge with each other, it thrives on minimizing
    0:59:18 the tensions, on narrowing the gaps, and on a sense of predictability.
    0:59:22 You do want to know that you’re going to have the same person the next morning, how
    0:59:25 we’ll still love you and that you will still love.
    0:59:29 And desire is a lot more fickle.
    0:59:35 Desire is to own the wanting and that wanting, how you connect to that sense of sovereignty
    0:59:42 and agency and freedom that is the opposite of “you won’t make me.”
    0:59:50 It thrives much more on mystery, on curiosity, on the unknown, on discovery, on exploration.
    0:59:55 And the challenge of modern relationship is that we want love and desire in the same place.
    0:59:57 It’s never happened before.
    0:59:58 That’s the interesting thing.
    1:00:01 And it doesn’t get solved with Victoria’s Secret just so easily.
    1:00:03 What do you mean it’s never happened before?
    1:00:07 We’ve never looked for, you know, the word “passionate marriage” is a contradiction
    1:00:08 in terms.
    1:00:13 We’ve never looked for passion in the same place where we looked for security and anchoring
    1:00:17 and somebody with whom to pay the checks and fix the house.
    1:00:20 These two things were separate for all of history.
    1:00:24 Love stories took place somewhere and marriage took place somewhere else.
    1:00:26 Marriage wasn’t necessarily about love in the first place.
    1:00:29 It was an economic enterprise primarily.
    1:00:35 But the place where you want to experience full surrender, you know, and the intensity
    1:00:40 of the unknown, how do you bring that in the same place where you want to know that what
    1:00:43 you have today is what you’re going to have tomorrow?
    1:00:49 It’s a very, it’s a grand experiment of modern love is that we are trying to experience
    1:00:51 security and adventure in the same place.
    1:00:57 Now, it’s not impossible, but it is a grand challenge.
    1:01:01 How do I pretend with the person with whom I’ve been living for 30 years that there,
    1:01:03 that there’s still so much to discover?
    1:01:08 How do I remain curious about somebody who I, at the same time, I desperately want to
    1:01:10 feel familiar with?
    1:01:15 How do I bring surprise in the place where I want to experience continuity?
    1:01:20 How do I bring out parts of myself that I’ve never revealed to someone who pretends to
    1:01:22 know me so well?
    1:01:27 How do I take risks, sexual and emotional risks, in a place where I usually don’t want
    1:01:30 too much of a big production?
    1:01:34 And this is why it is very challenging to not just have sex in long-term relations.
    1:01:39 People can have sex, but have sex that is for pleasure and connection.
    1:01:44 Sex that we look forward to, that is anticipatory, that reveals us to ourselves.
    1:01:49 That’s a kind of a neurotic intimacy, right, where we discover things about us that are
    1:01:51 still new.
    1:01:55 It’s what new conversations people can have about that.
    1:02:02 What does it mean to take risks in the same place where you also want predictability?
    1:02:07 What does it mean to allow yourself degrees of surrender with someone that you need to
    1:02:12 rely on who’s going to wake up tomorrow morning to get the kids to school?
    1:02:15 Now it becomes really a fascinating exploration.
    1:02:23 We all grapple with this thing, you know, and it demands real active creativity.
    1:02:28 That’s why I like the food metaphor, because everybody understands the difference between
    1:02:34 putting some food on the table and eating for sustenance and having a lavish or having
    1:02:43 a beautiful, thoughtful, creative meal that is about pleasure, not just about sustenance.
    1:02:46 And the erotic is cultivating pleasure for its own sake.
    1:02:49 It’s not about achieving an orgasm.
    1:02:51 It’s not about the performance of sex.
    1:02:52 We did it.
    1:02:53 We both came.
    1:02:59 No, it’s really about the quality of the experience and of the pleasure that you experienced
    1:03:03 and where it took you and where you went with your partner.
    1:03:08 That over time is a real piece of art.
    1:03:12 As you were saying that, I was thinking, are there tips and tricks that people could use
    1:03:16 at home that want to bring up a conversation about sex with their partner?
    1:03:21 But more importantly, I think it’s how do we go about discussing something that’s difficult
    1:03:22 or hard with our partner?
    1:03:31 Is there a prompt or a way to start that is going to be more predisposed to better outcomes?
    1:03:37 I mean, interestingly, I didn’t anticipate it at first, but I do now know that it is
    1:03:45 one of the most powerful aspects of the podcast is that people would hear other people have
    1:03:48 conversations that they want to have.
    1:03:52 And the deeper they would listen to these other people and the more they would see themselves
    1:03:56 in their own mirror and the more they would acquire some of that vocabulary to then go
    1:04:01 to their partner and say, you know, I was or they listen with the partner to the podcast
    1:04:03 and they say, how do you feel about this?
    1:04:04 Have you ever thought about that?
    1:04:06 Is that something you would be interested in?
    1:04:08 Do you have those fantasies?
    1:04:10 Is that what you feel with me at times?
    1:04:12 Have you ever experienced that kind of a block?
    1:04:15 It’s like going to a movie, right?
    1:04:21 Like when you have a third entity, it allows you to speak to your partner by virtue of
    1:04:27 the thing that you have just watched or shared or listened to in the case of a podcast.
    1:04:31 And then you can ask the same question, you know, do you feel that kind of pressure?
    1:04:34 You know, have you ever faked with me?
    1:04:38 You know, because this woman is talking about that, you know, or this man is talking about
    1:04:43 that, you know, have you ever felt that kind of, you know, have you ever wanted to try
    1:04:45 that for us?
    1:04:48 You know, it’s easier than to suddenly sit in the car and say, oh, you know what?
    1:04:51 I was thinking maybe one day we should do this.
    1:04:52 Where are you coming from?
    1:04:53 You know, where is that coming?
    1:04:58 But if you listen to something together, it gives it a permission.
    1:05:05 It places it in the permitted conversations that we can have as a couple.
    1:05:10 So now you will say, but what are the questions that I ask, you know, in the sessions to those
    1:05:11 couples?
    1:05:13 I like writing, for example.
    1:05:19 So I often think, you know, with some couples, I’ve found it very useful to create a separate
    1:05:20 email address.
    1:05:24 And that separate email address is one in which you’re not talking about management
    1:05:25 ink.
    1:05:30 It’s not about the kids, the money, the family, the to-do list.
    1:05:33 It’s really the lover’s nest.
    1:05:38 It’s when you and I think about each other as partners, as lovers.
    1:05:42 And in that place, we write to each other in a very different language.
    1:05:46 I’m not talking to the mother of my kids or to the father of her.
    1:05:49 I’m talking to my partner.
    1:05:50 And I send songs.
    1:05:51 I send jokes.
    1:05:52 I send pictures.
    1:05:56 And I send just sweet thoughts, you know?
    1:06:04 And that creates a kind of a lubrication that I still hold you as my lover, not just as
    1:06:06 my life partner.
    1:06:12 And it creates that erotic space in which we see each other with different eyes.
    1:06:18 And that in itself is often very sensual and creates a permission in which people then
    1:06:24 start to say different things that they haven’t felt they can say, you know, the grand paradox
    1:06:32 is that the idea is greater intimacy would normally free us to greater sexual freedom
    1:06:34 and sexual openness.
    1:06:37 But in fact, that is not necessarily the case.
    1:06:43 The more we start to feel intimate with each other and we become close and we worry about
    1:06:48 each other and we are afraid of each other’s judgment, and the more sometimes we actually
    1:06:50 become less open.
    1:06:55 Many of us were more open in the beginning than afterwards, which is a paradox.
    1:06:59 And so then the question becomes, how do we reopen?
    1:07:05 How do we start to talk again about things which over time we stop talking about supposedly
    1:07:10 because you should know and it’s assumed and we become uncomfortable about it?
    1:07:16 And I think that what my sessions are about and what I think I do actually in the podcast
    1:07:23 as well is show how you how you make two people who think they know a lot suddenly listen
    1:07:27 to each other again and realize that the one that is next to you is actually forever somewhat
    1:07:31 mysterious and elusive if you just want to remain curious.
    1:07:34 Does part of that come back to the narratives?
    1:07:40 It’s almost as if at the beginning, our narratives are wide open and we see you as everything,
    1:07:41 including all of your likes and desires.
    1:07:47 And then as we spend more time with you, I’m thinking, possibly we start to identify,
    1:07:53 oh, you’re a mother, you’re a wife, and these roles and we see less of this big broad person
    1:07:57 and that shapes what we see and how we interact.
    1:07:59 I completely agree.
    1:08:04 I completely, I mean, you know, you see people sitting with friends.
    1:08:10 Sometimes I go for lunch and I sit in a restaurant and, you know, or I go to a simple spot like
    1:08:15 that and I just see people looking at each other, talking to each other, well-dressed,
    1:08:18 animated, engaged, attentive.
    1:08:22 And I’m thinking, who is here with their partner?
    1:08:23 Probably very few.
    1:08:24 Right?
    1:08:28 And I’m thinking, what they’re going to do is they’re going to be so engaged throughout
    1:08:31 the day and then they’re going to go home and basically they’re going to bring the leftovers
    1:08:32 home.
    1:08:37 And at home, they’re going to talk very little actually or they’re going to check in on the
    1:08:39 day and on the logistics and all of that.
    1:08:40 I’ll give you an example.
    1:08:41 It was really interesting.
    1:08:43 I had it myself recently.
    1:08:50 I’m sitting with friends and with my husband and we were talking about playing as children.
    1:08:54 And one of the people said, you know, I actually, I don’t remember playing as children like
    1:08:55 that.
    1:08:56 I didn’t have characters.
    1:08:57 We had come out of a movie.
    1:09:03 I didn’t have characters and I was more kind of a sport and I was very, very competitive.
    1:09:10 And my husband son, he says, oh, me as a child, I was a different person every day.
    1:09:15 And then proceeded to talk about the kind of games that they played in the woods behind
    1:09:18 the house as children and how they were in fantasy play and all of that.
    1:09:22 And I listened attentively like that.
    1:09:29 Just like a story that he may have told me or not, you know, and we talked about basically
    1:09:35 the power of imagination and to enter other roles and how much we do this as children and
    1:09:41 how, you know, actually sexuality is one of the places where people have it as adults,
    1:09:43 you know, in their, in their homes.
    1:09:47 And I just thought to myself, would we have had this conversation alone where I would
    1:09:51 say, what was, what did you do when you played as a kid?
    1:09:57 Yet people raise children together, but they don’t ask that question necessarily.
    1:10:01 And it’s such a revealing question, how you played as a child.
    1:10:04 What kind of, what, did you allow yourself to play?
    1:10:07 Did you have the permission to play, was it safe enough to play?
    1:10:10 And what kind of play did you engage yourself in?
    1:10:13 Boy, does that tell you an amazing story about a person.
    1:10:15 It’s a great dinner conversation.
    1:10:16 Highly recommend.
    1:10:21 I was thinking, I wonder how our relationships would change if we started giving our partners
    1:10:26 the best hour of our day and waking up an hour earlier and spending it with them instead
    1:10:31 of the sort of like 10 to 11 PM leftovers, as you called it.
    1:10:34 I wonder if we went to bed an hour earlier and woke up an hour earlier and spent that
    1:10:37 time with our partners, how that would change our relationships.
    1:10:42 And we would have, we’d be the most alert and the most attentive and probably the most
    1:10:43 curious.
    1:10:44 Massive.
    1:10:46 I mean, that’s been studied.
    1:10:50 And we know, we know that couples that have rituals every Wednesday at five o’clock we
    1:10:53 meet in the bar and have a drink.
    1:10:56 Every Tuesday we have lunch.
    1:11:00 Every month we leave a night away, depends on what they can afford, what they can do.
    1:11:05 But those who have that ritual in place, which really states, no matter what else goes on
    1:11:12 in our life, we have a dedicated time that is ours where we check in with each other,
    1:11:13 whatever we do.
    1:11:16 You know, we go rowboating, whatever, whatever.
    1:11:22 But it’s very clear that those who’ve done that for like decades on end, now, you know,
    1:11:25 you could say it’s because they did it that they are stronger or it’s because they’re
    1:11:26 stronger that they do it.
    1:11:29 I think those things interact with each other.
    1:11:32 But it’s, I don’t know if I would do it morning and night.
    1:11:36 It depends on what other people are living in the homes.
    1:11:43 But I know that if people have a regularly dedicated time that says, we matter.
    1:11:49 And it’s not everything else comes first and we come last, which is what is often the case
    1:11:53 for many couples, that that makes a huge difference.
    1:11:55 And why does it matter?
    1:11:59 Because this is the first time in the history of human relationships that the quality of
    1:12:04 the relationship in the couple is what will determine if the family will survive.
    1:12:07 Oh, that’s interesting.
    1:12:14 For most of history, family life existed regardless of if the couple likes, gets along or doesn’t.
    1:12:19 At this point, your family will exist if the couple is relatively content.
    1:12:20 Something on that.
    1:12:25 So if you invest in the couple, you actually preserve the family.
    1:12:30 And what people do is they put all the energy in the family when there is family or in the
    1:12:32 work or in everything else.
    1:12:35 And the couple is often left gasping on the vine.
    1:12:39 And then we need to talk about consciousness.
    1:12:40 But it’s neglect.
    1:12:42 It’s, it’s, it’s the other way around.
    1:12:48 It’s, it’s really, if you look at most people, the couple often will come last.
    1:12:51 I hate to end with conscious uncoupling, but I do want to get to it because we had a lot
    1:12:55 of questions from readers and listeners about conscious uncoupling.
    1:12:57 So what is conscious uncoupling?
    1:12:58 What does it mean?
    1:12:59 How does it work?
    1:13:01 And why is it proven effective?
    1:13:08 In season three, I have a whole episode that is called the happy divorce.
    1:13:15 And it’s actually a couple that is getting along better now that they are no longer married
    1:13:17 than they were when they were married.
    1:13:22 And they actually remain very involved as a couple, partly because now that they’re
    1:13:28 not married, they can finally free themselves of all the restrictions and assumptions that
    1:13:32 they had about what is expected from them in marriage.
    1:13:37 It’s very, it’s like they liberated themselves from the constraint of the, of the definition
    1:13:38 called marriage.
    1:13:42 And so now they can finally have the relationship they want.
    1:13:46 So I highly recommend it, it really will explain that.
    1:13:52 But for me, the conscious uncoupling is the idea that there needs to be a way for people
    1:14:00 to at some point choose to separate without us still thinking that longevity is the main
    1:14:06 marker for success, that if you meet at a funeral home at the end of life, then it means
    1:14:15 you had a good relationship and that every breakup or separation or divorce is a failure.
    1:14:17 I think it’s that that needs to be challenged.
    1:14:18 We live way too long.
    1:14:21 We live twice as long as a hundred years ago.
    1:14:27 And not all of us will necessarily only have one relationship in adult relationship.
    1:14:29 You know, we will have two or three, many of us.
    1:14:35 And some of us will do it with the same person, but others will sometimes change.
    1:14:41 And if you can leave and to the best of your ability, wish good to the other person, wish
    1:14:48 them well and wish you well, then you actually are more prepared for the next relationship.
    1:14:54 The more you remain tied in your bitterness, you know, the more you bring that with you.
    1:15:00 The way people leave the previous relationships, the quality of the breakups is really at the
    1:15:03 heart of how people start the next relationships.
    1:15:09 How much they will trust, how they trust, how they collaborate, how they protect themselves,
    1:15:15 how they anticipate, you know, what had happened, how much they bring these invisible others
    1:15:22 access with them, be they ex-partners, husbands, wives, or boyfriends or founders, you know,
    1:15:27 it’s really very interesting to see the parallel of those things.
    1:15:29 How should you leave a relationship?
    1:15:33 Like, what are the variables that you should be considering when you’re doing that?
    1:15:36 We want different things in life.
    1:15:43 I still love you, I still care about you, I still respect you, I still have strong feelings
    1:15:48 for you, whatever the feelings are, you know, I may not love you anymore to want to live
    1:15:52 with you or I may still love you but not want to live with you.
    1:15:56 Love life and life is not the same.
    1:16:05 So you basically, it depends if you have a family then you know that a divorce is a reorganization
    1:16:06 of the family.
    1:16:10 It’s the end of the marital unit but not the end of the family, it’s a reorganization
    1:16:12 of the family.
    1:16:18 If you don’t have a family and it’s two people then it’s about, we’ve come to a place where
    1:16:23 one of us or both of us have chosen no longer to be together and the best thing you can
    1:16:29 do is not want to destroy the other person as a way to kind of separate and justify it
    1:16:33 by vilifying them, demonizing them, etc.
    1:16:38 Basically I do this for me, I don’t do this for us, that’s a given.
    1:16:43 Or I do this, whatever the reasons, and I wish you well and here are the things that
    1:16:48 I take with me of what we have lived together and here are the things that I hope you take
    1:16:51 with you of what we share together.
    1:16:57 And here is what I wish for you and here is where I think that I could have done better.
    1:17:03 If you leave and you seriously only think that it’s all about the other person, you
    1:17:04 may be missing something.
    1:17:08 It’s very good to know that you too could have done things differently.
    1:17:12 And that is honesty by the way, you asked me before about honesty.
    1:17:17 Honesty is not only what you have to say about the other person, honesty is also your own
    1:17:22 reckoning and your own accountability with where you’ve shown up and where you went absent
    1:17:25 and missing in action.
    1:17:27 Those things go into the final conversations.
    1:17:31 When I do conscious uncoupling in my office, which is basically people who are willing
    1:17:37 to be deliberate and intentional about how they part, that’s the idea.
    1:17:40 The same way that people do it when they come together.
    1:17:46 How people start and how people end are amazingly important psychological bookmarks of their
    1:17:48 relational life.
    1:17:52 I think that’s a great place to end this conversation.
    1:17:53 This was fascinating.
    1:17:57 Where can people find out more about you online?
    1:18:03 So first is estherporel.com and there you can also subscribe to the newsletter and the
    1:18:09 blog or the training program sessions or the workshop for couples, which is called Rick
    1:18:16 and Ling Desire and then on all the social channels at estherporel official and on Facebook
    1:18:17 and Twitter.
    1:18:18 Thank you so much, Esther.
    1:18:28 This was a real pleasure and a treat and I had a great time with our conversation.
    1:18:34 Wonderful.
    1:18:36 Thanks for listening and learning with us.
    1:18:45 For a complete list of episodes, show notes, transcripts and more, go to fs.blog/podcast.
    1:18:49 The Farnham Street blog is also where you can learn more about my new book, Clear Thinking,
    1:18:52 turning ordinary moments into extraordinary results.
    1:18:57 It’s a transformative guide that hands you the tools to master your fate, sharpen your
    1:19:02 decision making and set yourself up for unparalleled success.
    1:19:05 Learn more at fs.blog/clear.
    1:19:06 Until next time.
    1:19:10 [Music]
    1:19:13 (tranquil music)
    1:19:21 [BLANK_AUDIO]

    Few episodes in The Knowledge Project’s nine-year history have impacted people’s relationships and lives more than when Esther Perel shared her infinite wisdom for the first time in 2019.

    Shane and Esther discuss how the stories you tell yourself shape how you see the world (and what to do about that), the important conversations to have at the beginning of a relationship, the most common arguments couples have and how to prevent them, what to say to a partner if the relationship isn’t working out, the relationship between desire, love, and pleasure, and so much more. Plus, the conversation starts out on an interesting note: Esther Perel shares stories about her parents surviving the Holocaust and how their experiences shaped her childhood and continue to shape her life today.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠

    Timestamps:

    (00:00) Intro
    (02:38) Coming back to life after the war
    (08:09) The myth of stability
    (11:30) The power of reflections
    (19:48) Important conversations for early relationships
    (24:20) Can values change in relationships?
    (27:20) Being secure in a relationship
    (30:40) Better conversations with your partner
    (33:00) What's behind every criticism
    (36:52) Too much honesty
    (39:37) What happens if I don't love my partner
    (47:12) Why does good sex fade in relationships?
    (50:59) Love vs. desire
    (55:38) How to have difficult conversations with your partner
    (01:05:13) Conscious uncoupling

    Watch the episode on YouTube: ⁠⁠⁠https://www.youtube.com/c/theknowledgeproject/videos⁠⁠⁠

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠⁠⁠https://fs.blog/newsletter/⁠⁠⁠

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now – ⁠⁠⁠https://fs.blog/clear/⁠⁠⁠

    Follow me: ⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠

    Join our membership: ⁠⁠⁠https://fs.blog/membership/

  • Top Psychologist: The Tools to Accomplish Your Hardest Goals and Change Your Mindset

    AI transcript
    0:00:04 So you can’t tell just using, you know, what I would call the grandmother test, you know,
    0:00:07 would your grandmother understand this? Well, unless you’re selling to grandmothers,
    0:00:11 it doesn’t matter if the grandmother understands it. So some people will say,
    0:00:15 well, we need to dumb this down and we need to have it so that anybody understands it.
    0:00:20 I super disagree with that in B2B. If I’m selling a specialized thing to specialized buyers,
    0:00:35 it just needs to resonate with them. It’s okay if it doesn’t resonate with your grandmother.
    0:00:44 Welcome to The Knowledge Project. I’m your host, Shane Parish. In a world where knowledge is
    0:00:48 power, this podcast is your toolkit for mastering the best of what other people have already figured
    0:00:53 out. If you’re listening to this, it means you’re not a supporting member. Members get early access
    0:00:57 to episodes, my personal reflections at the end of episodes, which a lot of people say is quickly
    0:01:04 becoming their favorite part, no ads, exclusive content, hand edited transcripts and so much more.
    0:01:06 Check out the link in the show notes for more information.
    0:01:12 My guest today is April Dunford. Her book, Obviously Awesome, totally changed how I think
    0:01:18 about positioning when it comes to business. This interview originally aired as a members-only
    0:01:23 episode, but I had so many requests for members to share it with their team at work that I decided
    0:01:28 to make it public so everyone can benefit. April is an expert in product positioning,
    0:01:34 and this episode goes from high level to very detailed examples. We discuss the critical
    0:01:39 role of positioning as a strategic approach, not just a marketing exercise capable of totally
    0:01:44 transforming a product’s trajectory. April illustrates this with the example of labeling
    0:01:49 a muffin a muffin and not a cake, demonstrating how effective positioning can shift perceptions
    0:01:54 and drive sales. If you’re interested in getting more sales, loyal customers and bigger promotions,
    0:01:58 this episode is for you. It’s time to listen and learn.
    0:02:10 Switch to Freedom Mobile and get 50 gigs to use in Canada, the US and Mexico for just 35 bucks
    0:02:16 a month for 18 months. That’s all the savings, none of the worries, conditions apply. Details
    0:02:24 at freedommobile.ca. Wow, there are so many pans at home sense. These are non-stick, made in Italy.
    0:02:30 It’s a sign, we need a new pan. We already have a pan, it works. What we have is an extra stick pan
    0:02:35 made of, I don’t know what, everything sticks and burns. Do we seriously have to eat burnt food to
    0:02:42 save 20 bucks? It’s 20 bucks? 20 bucks, need I remind you, made in Italy. You don’t need to
    0:02:48 tell me, we’re getting this pan. Deal’s so good, everyone approves, only at home sense.
    0:02:54 Go back to school with Rogers and get Canada’s fastest and most reliable internet, perfect
    0:02:59 for streaming lectures all day or binging TV shows all night. Save up to $20 per month on
    0:03:09 Rogers Internet. Visit rogers.com for details. We got you, Rogers. I want to start with the basics,
    0:03:16 what is positioning? It’s interesting, so I’m a positioning expert and when I started out as
    0:03:21 a consultant being a positioning expert, the worst part about that is nobody really knows what
    0:03:26 positioning is. They think they do, so people will say positioning, that’s just like messaging,
    0:03:31 isn’t it? I’m like, actually, no, it’s not quite that. Or they’ll say positioning is like a tag
    0:03:36 line. We’re coming up with a tag line and I’m like, oh gosh, no, there’s a lot of things that we do
    0:03:43 that aren’t tagline related. My personal pet peeve is when people talk about brand positioning,
    0:03:47 that drives me nuts. There is positioning and there’s branding. Those two things are actually
    0:03:53 really separate. So most of the things that we confuse with positioning are actually things we
    0:03:59 do with positioning once we’re done with it, but positioning is an input. So if you think about
    0:04:04 it this way, if everything we do in marketing and sales is the house, positioning is the foundation
    0:04:11 upon which the house is built. So my definition of positioning goes like this. Positioning defines
    0:04:19 how your product is the best in the world at delivering something, some value that a well-defined
    0:04:24 set of customers cares a lot about. Now that’s a bit of a mouthful. A lot of the folks that I work
    0:04:29 with are not marketing people, they’re CEOs of tech companies so they don’t have a background in this
    0:04:34 stuff. So I think the best way to think about it is it’s like context setting for products. It’s
    0:04:42 the context I position my product in such that customers kind of have an idea like what is this
    0:04:47 thing? What’s it all about? Why should I care? It’s a starting point for a conversation with a
    0:04:54 customer. Can you give me an example? One of the things that really stuck out to me, I was always
    0:04:59 trying to explain to tech company CEOs with a tech company example and whenever I did that,
    0:05:05 the tech company CEOs would say well that’s a database and we’re not like a database so I thought
    0:05:09 I need some examples that have nothing to do with technology. They’re really simple. So I was trying
    0:05:15 to come up with an example and it was on my way to work and I went to Tim Horton’s coffee shop in
    0:05:20 Canada. So I’m standing in line and the guy in front of me is ordering breakfast. It’s 8 a.m.
    0:05:28 and he orders this thing which is a double chocolate salted caramel muffin and I was like
    0:05:35 that is some genius marketing stuff right there. So I’ve got a piece of cake. It is double chocolate
    0:05:42 caramel cake but if I put it in the muffin format and I call it a muffin, everything about that is
    0:05:49 different. The whole context around it is different. It is socially acceptable to order double chocolate
    0:05:56 caramel whatever if you say it’s a muffin because I’m now comparing it differently. So if I said it
    0:06:02 was cake, what’s cake? Cake competes with other things that are like dessert. It competes with
    0:06:07 ice cream and tiramisu and other things you would order for dessert. What does cake cost? Well in
    0:06:13 a restaurant it’s 10 dollars, 15 dollars. Where do I get it? I might go to a bakery but I get it at
    0:06:19 a restaurant too. When I’m talking about a muffin, well muffin’s totally different. A muffin’s breakfast
    0:06:25 it competes with a bagel and a donut. What do I charge for a muffin? I charge a dollar, two dollars
    0:06:32 for a muffin. The whole context around it is different. The product however is the same like
    0:06:38 that thing that you’re eating is a piece of cake whether it’s in cake form or muffin form.
    0:06:45 So I can choose to position it as a muffin. It’s the same product but the assumptions about that,
    0:06:50 the competitors are different, your value is different. The assumptions that customers have
    0:06:55 about that product are different because I’ve placed it in a different context. What are the most
    0:07:01 common misperceptions about positioning that companies have? I would say the most companies
    0:07:07 just don’t think about positioning at all. In the vast majority of cases, the companies that I work
    0:07:14 with, the positioning feels obvious. It feels like you couldn’t possibly position it as anything else.
    0:07:18 So it started like this. The founder woke up one morning and said, “You know what sucks? Email
    0:07:23 sucks. We’re going to make way better email. It’s going to be fantastic and it’s going to fix all
    0:07:28 these things I hate about email.” And then they launch it and customers say, “I like this part. I
    0:07:34 don’t like this part.” They change it. It evolves over time. Maybe the whole market evolves. If we
    0:07:39 fast forward two years from now, the founder and everybody inside of the company still says,
    0:07:46 “Email. We’re building this email thing.” But maybe that product actually looks more like chat
    0:07:52 because that’s kind of like email too. And so we’ll start having this disconnect where the customer
    0:07:57 sees it and the company is saying, “Well, this is email. Look at our amazing email.” And the
    0:08:02 customer is like, “I don’t know. That kind of feels like chat. You’re calling email. I feel like
    0:08:06 maybe it’s chat and now I’m confused.” And I don’t really know what this thing is anymore.
    0:08:12 When the company figures out they have a problem, like, “Oh, maybe this is an email. Maybe we should
    0:08:17 reposition it.” Nobody knows what to do at that point because they never deliberately positioned
    0:08:22 it or did a thing to decide it was email in the first place. It was just obvious. Of course,
    0:08:27 it’s email. That was our idea. That’s what we’re going to do. Product positioning is basically
    0:08:33 shaping the environment in the consumer’s mind by which they draw comparisons and know what to
    0:08:40 expect. That’s a good way to describe it. It’s a bit like the opening scene of a movie. So you
    0:08:43 walk into the movie. Let’s say you’re going to a movie theater. You walk into the movie theater.
    0:08:47 You know a little bit about it. You bought a ticket. But the job of the opening scene in the
    0:08:52 movie is to set context for the movie because you have these big questions. Where are we? What
    0:08:58 time frame is this? Who are these characters? What is the vibe of this whole movie? You need to get
    0:09:04 these big questions answered before you can settle in and pay attention to the details of the story.
    0:09:10 So if we take, I usually use apocalypse now as the example of a great opening scene. The opening
    0:09:14 scene of apocalypse now starts with shot of the beach. It’s palm trees. It’s all nice. It’s lovely.
    0:09:19 You walk in and you might think, I know it’s called apocalypse now, but maybe it’s not
    0:09:23 apocalypse right now. Maybe it’s apocalypse 30 minutes from now. So you walk in, but suddenly
    0:09:29 this thing changes. The music gets a little bit more intense. We see this thing. It looks like
    0:09:35 smoke, dust, and you’re like, oh, it’s actually smoke. A helicopter goes by and boom, the beach
    0:09:39 is on fire. And all of a sudden, we’re in the middle of the Vietnam War. And then the scene
    0:09:44 changes and it’s Martin Sheen. He’s in his hotel room. He’s drinking, smoking. He’s clearly in
    0:09:49 distress. He walks over the window. He peeks out the blinds and we get the first line of dialogue,
    0:09:54 which is actually his thoughts of the movie. He looks out and he says, Saigon. Shit. I’m still
    0:09:59 only in Saigon. Every time I think I’m going to wake up back in the jungle. So here we are. We’re
    0:10:06 three minutes into a three and a half hour movie and we know a lot. Where are we? We’re in the middle
    0:10:12 of the Vietnam War. Specifically we’re in Saigon. Our lead character has been there before. It didn’t
    0:10:17 go so well. He has PTSD. This movie is not going to be funny. It’s going to be kind of intense.
    0:10:22 Now I can settle in and pay attention to the details of the story. Positioning works the same
    0:10:30 way. If I walked up in Shark Tank or I forget what we call it here in Canada, what’s it called?
    0:10:37 Dragon’s Den. So let’s say we have weirdo Dragon’s Den and I’m not allowed to give you my whole pitch
    0:10:43 for something. I’m just going to talk about the market category. So the category that the product
    0:10:49 is positioned in. So I walk out and I say, I’ve got this amazing thing. It’s revolutionary next
    0:10:56 generation thing, but it’s CRM customer relationship management. If you’re tech people and you know
    0:11:00 what a CRM is, you will make a whole bunch of assumptions about that product just because I
    0:11:05 called it a CRM. So you’ll say, well, you must compete with Salesforce. They’re the absolute
    0:11:10 leader in that market, the gorilla in that market. So I will just assume that you compete there.
    0:11:15 I will make assumptions about what that product does. I will assume that it tracks deals across a
    0:11:20 pipeline. I will assume who the buyer of that is. I’ll assume it’s the head of sales, vice
    0:11:26 president of sales. I’ll even make an assumption about the pricing, even though I said nothing about
    0:11:32 what that thing is or who the expected customers are of that thing. But if you assume that Salesforce
    0:11:38 is my big competitor, because they’re the absolute leader in that space, I’m not charging more for
    0:11:45 my CRM than Salesforce is. So this is how this works. What it does is I position that product
    0:11:52 in a market category. That market category has set off a set of assumptions in the customer’s
    0:11:59 mind about that product. If I do this well, it sets off a set of assumptions about that product
    0:12:04 that are true, and that’s great. Now I’ve saved marketing and sales a whole lot of time, energy,
    0:12:09 effort. I don’t have to tell you exactly who my competitors are. It’s assumed. I don’t have to
    0:12:14 list every single feature. A lot of that stuff is considered table stakes in the category.
    0:12:20 But it works the same way if I do a terrible job of it. So if I do a terrible job of it,
    0:12:25 I position my product in a market category such that it sets off a set of assumptions about my
    0:12:31 product that are not true, now marketing and sales has their work cut out for them on doing this
    0:12:35 damage that you’re positioning is already done, where they’re like, no, no, no, we don’t do that.
    0:12:38 No, no, no, I know you think that. No, no, no, it’s not that. It’s this other thing.
    0:12:44 So if I’m trying to compete with Salesforce, should I do that in a way where I have a product?
    0:12:50 It’s probably inferior because I’m a startup. Right. And so we can’t go toe to toe on every
    0:12:57 aspect. How do we position that in a way to a consumer, which in this case would be a business?
    0:13:04 A business that’s a buyer. The most common way that tech companies successfully position
    0:13:12 is they find an underserved sub-segment of the market. And then they attempt to dominate that
    0:13:18 sub-segment and then push out from there. So I can give you an example. I worked at a company
    0:13:26 called Janna Systems. And at the time, this was quite a while ago. So Sebal or Salesforce was
    0:13:30 a small company at that point and only selling to the very low end of the market. But the gorilla
    0:13:36 in that space at the time was a big, big company in Silicon Valley called Sebal. And so they were
    0:13:41 fantastic company, two billion revenue, fastest company to ever get to a billion revenue in the
    0:13:47 history of Silicon Valley. Amazing success story. They were positioned as enterprise CRM. They were
    0:13:53 the absolute kings of enterprise CRM. We had a product that was also enterprise CRM. So we would
    0:13:58 position ourselves as enterprise CRM. And so not surprisingly, we would get a meeting with a customer
    0:14:04 and the customer would say, okay, so your enterprise CRM, their enterprise CRM, how are you better?
    0:14:11 And the answer to that question was we simply weren’t better than them. We had, you know,
    0:14:16 we had two million revenue, they had two billion revenue, they had 400 customers, we had six,
    0:14:22 they had thousands of employees, I was employee 26 or something. I mean, we were just no comparison
    0:14:31 at all. However, we had a feature that they could not copy that was really interesting.
    0:14:36 And we thought it would be really valuable to customers. We didn’t really understand the value
    0:14:41 of it for customers. But we always showed it in meetings. So we go in, we show the thing, it’s
    0:14:45 this neat feature. And we say, Hey, here’s the feature, it’s really great. And customers would
    0:14:50 look at us and say, Hey, that looks cool. What do we do with that? And we’d say anything you want.
    0:14:57 And then the customer would say, Okay, well, that’s confusing. What else you got? And then we’d say,
    0:15:00 Well, you know, we’re really cheap. If you want us to be really cheap, because we’re desperate to
    0:15:05 close business, how we got out of that mess and eventually landed on positioning that was really
    0:15:13 good for us is we, we sold a deal to an investment bank. And it was kind of by accident. We hired a
    0:15:18 sales rep that had a relationship with somebody very senior at the investment bank, that we did a
    0:15:25 good pitch in there, we showed them our magical feature. And what that customer taught us is
    0:15:31 that feature was actually very, very valuable to investment banks and the way that they wanted
    0:15:36 to manage relationships inside the bank. Once we figured that out, then it was like, okay,
    0:15:41 we actually have a feature that’s really, really valuable for a sub segment of this big market.
    0:15:48 And we knew at the time, Siebel couldn’t copy us on that feature. So we narrowed down the positioning
    0:15:53 and instead of saying we were enterprise CRM, we were CRM for investment banks. And the great
    0:15:59 thing about that is that we never got into a real head to head against those guys again. So we would
    0:16:05 come in and say, Hey, we’re CRM for investment banks. And the customer would say, Oh, well,
    0:16:10 wait, doesn’t Siebel do that? Like, don’t you guys compete with Siebel? And we’d say, Oh, Siebel,
    0:16:18 we love those guys. So big, so smart, so many people. They’re like the world’s greatest general
    0:16:23 purpose CRM for like call centers and manufacturing plants. And I don’t know what, but not you,
    0:16:28 Wolf of Wall Street, you need something special. Let me show you this thing that we would show them
    0:16:34 the thing and talk about the thing. And so our plan was to absolutely dominate that space.
    0:16:38 And then once we had dominated that, we would be building the product and making the product
    0:16:44 more mature. And our dominance and investment banking was going to allow us to get into retail
    0:16:48 banking. So we were going to expand the market from there. And then if we were successful in
    0:16:53 retail banking, that would allow us to get into insurance. At that point, we would reposition
    0:16:59 ourselves as CRM for financial services. If we were successful there, then we’d be big enough
    0:17:03 and successful enough to challenge the market leader and take over and be enterprise CRM,
    0:17:10 which was still the long term goal. So is this about shrinking your target market or your ecosystem
    0:17:14 in a way in which you’re going to compete to one where you have an advantage or an edge over somebody
    0:17:20 else and then expanding from there? Often in technology companies, that’s exactly what we’re
    0:17:30 doing. That seems like very intuitive. There’s a lot of reasons. So the biggest one is people get
    0:17:37 very worried about what we call the addressable market. So if I was trying to fundraise and went
    0:17:43 to an investor and said, look, I want to build a thing and it’s just CRM for investment banks,
    0:17:47 the investor would say, well, how many investment banks are there in the world? I need you to be
    0:17:51 a billion dollar business. That’s not a billion dollar business. I don’t know how you’re going to
    0:17:59 do that. For an investor, you need to talk about the long term story. Where do we want to be in
    0:18:06 10 years? What is our path to getting to be a billion dollars? And if I look at that example I
    0:18:12 just gave you, we had that long term vision. We were going to be a billion dollar company eventually.
    0:18:18 But for most companies, when you start, I’m not trying to do a billion dollars this year. I’m
    0:18:23 trying to do a million. I’m trying to close five deals. I’m trying to close 10 deals. And in order
    0:18:28 to close any business at all, you have to be the best. That’s something. The customer’s not going
    0:18:33 to come in and say, you know, there’s these three options and I’ll pick this one that’s just okay.
    0:18:39 No, the customer says they want the best thing for their particular thing. So great positioning
    0:18:45 is all about defining where do you win? Where are you the best in the world? And even if that
    0:18:51 market is very small at the beginning, you need to have a pathway to get to this bigger market. So
    0:18:56 I’ll win here, then I’ll win here, then I’ll win here, and the market will expand. So the vast
    0:19:02 majority of companies that we know did exactly that. Salesforce is actually a great example.
    0:19:10 When they started out, the enterprise part of CRM was absolutely dominated by a big competitor.
    0:19:15 So it didn’t make sense for them to enter that market there. Instead, they entered the market
    0:19:21 at the very bottom. So they were selling to small, medium businesses. And their secret sauce or the
    0:19:26 thing they could do better than anyone else is they were one of the world’s first SaaS businesses.
    0:19:33 So it was hosted in the cloud. The value to the customer was that you could get CRM just like
    0:19:39 the big companies had, even if you didn’t have an IT department to babysit it. So their big slogan
    0:19:44 of no software was all about that. They were selling to tiny companies that had no IT department that
    0:19:50 could never touch CRM. And there was no competition there. So it was very easy for them to go in.
    0:19:56 And I was working at Siebel at the time. And when they started down at the bottom, we were like,
    0:20:00 we don’t care about that market. We’re not going to chase them down there. We sell great big
    0:20:09 million-dollar enterprise deals. We had no interest in that. Our goal was to just sit in
    0:20:15 the very top of the stack and just sell all of that. And that was it. So of course, what Siebel
    0:20:20 did was they started at the bottom and then crawled their way up. That’s fascinating. So
    0:20:26 basically to compete from a staffing point of view, from a VC funding point of view,
    0:20:32 you sort of say our total market is huge, but then on a practical basis to develop a product.
    0:20:36 Right. You have to start small in a lend and expand sort of fashion.
    0:20:42 Generally, if you look at most, the vast majority of successful companies,
    0:20:49 they’ve started by dominating a market that was too small for the market leader to care about.
    0:20:54 They dominated that market. And then what they did was they proceeded to push the boundaries of
    0:21:00 that market and creep closer and closer and closer to whoever the market leader is.
    0:21:05 What’s the difference between B2B positioning and B2C, like business to business positioning
    0:21:10 versus business to consumer positioning? There’s a lot of things that are different.
    0:21:16 Kind of, if we think about the core of good positioning, the core of good positioning
    0:21:22 is thinking about what your differentiated value is, meaning the value you can deliver
    0:21:27 for a customer that no one else can. And then great positioning puts that in a context that a
    0:21:34 customer can understand it. If we think about value in B2B, it’s very different than value
    0:21:41 in consumer products. Value can be all kinds of things in consumer products. I might buy shoes
    0:21:47 because I just like the color green, man, or I’m buying consumer things because I think it makes
    0:21:53 me look rich, or it’s going to get me a date, or there’s a lot of different things that are valuable
    0:22:00 in consumer. In business to business, it’s very different. In business to business, typically,
    0:22:07 there isn’t one person buying. Typically, there’s a group of people. The average B2B deal,
    0:22:14 there’s five to 11 stakeholders in the deal. If I’m buying accounting software, my boss comes
    0:22:18 to me and says, “Hey, I don’t like the accounting software we have right now. You go buy us some.”
    0:22:25 That’s terrifying. My neck is on the line. If I make a bad choice here, I look bad in front of
    0:22:30 my boss. The end users don’t like it. Maybe the software screws up. I get passed over from a
    0:22:37 promotion, I might actually get fired. There’s stakes in a B2B purchase decision. The way we
    0:22:43 think about value is also really different. I can’t go to my boss and say, “I just like the vibe of
    0:22:51 this software. I have to make a business case to my boss for why we should buy it.” In businesses,
    0:22:55 I mean, we kind of only have two things. We’re either helping you make money or we’re helping
    0:23:03 you save money, and that’s about it. I might make a very irrational decision about a product,
    0:23:09 and often we do make very irrational decisions even in B2B about a product,
    0:23:15 but I can’t say that to my boss. I still have to go to my boss and say, “Here’s why we picked it.
    0:23:19 Here’s the list of reasons.” There needs to be some justification. That’s exactly it.
    0:23:26 That’s explainable to somebody else. Exactly. In consumer, consumer marketers talk a lot about
    0:23:35 emotion, invoking emotion. In B2B, the granddaddy of emotions is fear. Fear of making a poor choice.
    0:23:40 Fear of looking bad in front of my boss. Fear of getting fired. Fear of making a mistake
    0:23:47 drives a lot of decisions in B2B. This is why incumbents, like whoever’s the leader in the market,
    0:23:55 has such an advantage in B2B technology because it is the safe decision. Nobody is going to get
    0:24:01 fired for picking Salesforce at this point. They have double the market share of their closest
    0:24:06 competitor. You can go to your boss and say, “Look, I looked at all the other options,
    0:24:10 but I picked Salesforce because everybody uses Salesforce. They have a big ecosystem.
    0:24:14 They have the best this, the best that. They’re the biggest. It’s the safe choice to make.”
    0:24:19 If you’re trying to compete against Salesforce, that’s really hard gravity to pull against.
    0:24:27 It’s very risky to pick you if the choice is you versus Salesforce or an established market leader.
    0:24:33 When you think about consumer positioning, I’m really interested and I know this isn’t your area
    0:24:40 of expertise, but when you walk into Louis Vuitton or Mads, how do you think about positioning
    0:24:48 such that they can charge $30, $40,000 for a first? The $30,000, $40,000 is the point.
    0:24:56 I’m not buying that bag because I think it’s $30,000 better than a bag that costs 20 bucks,
    0:25:02 although it probably is finely crafted and all that sort of thing. A lot of times, I think luxury
    0:25:10 goods are really about a signal to the market. It’s like I’m a rich, successful person that has
    0:25:17 made enough money that I can carry a Louis Vuitton bag or wear a Rolex watch or whatever luxury
    0:25:24 things are. It’s outside of my wheelhouse, but again, when we look at consumer stuff,
    0:25:32 value comes in all sorts of forms. We buy things in very rational ways in consumer products.
    0:25:39 We’re also irrational in B2B too, but most of that irrationality is around fear. It’s like,
    0:25:43 I just don’t want to make a bad choice here and look bad in front of my boss or do something
    0:25:47 that the company’s all mad at me about later. The thing we have in B2B that’s actually a real
    0:25:57 problem is it’s so scary to purchase something in B2B that 50 to 70% of the time, a deal that gets
    0:26:05 started actually ends in no decision. The no decision isn’t voted to stay with the current
    0:26:10 product that they have. It’s usually no decision because everything looked the same. I couldn’t
    0:26:15 confidently make a decision that I was sure I wasn’t going to get in trouble for. It’s easier
    0:26:19 to just go back to your boss and say, you know what, now’s not a good time. Let’s buy the accounting
    0:26:25 package next year. We don’t need to get into this now. The person who’s been tasked with making that
    0:26:29 decision is just crossing their fingers that they don’t have to be on the hook to make the
    0:26:33 decision next year. When the decision comes up again, like, okay, let’s go and look again,
    0:26:38 they just don’t want to be the person that has to stick their neck out to advocate for something,
    0:26:45 which is totally different from how we buy a pack of gum or buy fizzy water at the corner store
    0:26:51 or buy a purse. The downside there is really small and at work, the downside’s huge and the
    0:26:57 upside’s like nothing. Right. If you advocate for a different product that’s outside of standard
    0:27:03 best practices or standard industry standard, then if you’re successful, everybody forgets
    0:27:10 that you advocated for it, but if it fails, you probably lose your job. Exactly. In rare cases,
    0:27:18 you’ll see senior executives at companies where their role is to change things. So their role is
    0:27:23 transformation in some way, innovation, transformation, or a digital transformation.
    0:27:28 You see a lot of companies right now that have been tasked by the CEO where there are teams that
    0:27:34 have been tasked by the CEO to figure this AI thing out and make sure we’re not falling behind.
    0:27:42 In those cases, the person driving that program, if it is successful, is going to get a promotion,
    0:27:47 they’re going to get a raise, it’s going to look really good on them if they can successfully do it.
    0:27:54 If it’s not successful, then they’re a bum. Would you say the biggest mistake then that you see,
    0:27:58 especially with software products, is competing and positioning in too big of a market?
    0:28:05 That’s one of the things. I think a lot of times, if you look at the positioning that the company
    0:28:12 has, the biggest mistake is not deliberately positioning. I think a lot of companies start
    0:28:19 looking at their product in isolation almost, like there are no competitors. You see it a lot
    0:28:24 in the way companies do sales pitches. They’ll walk in and they’ll give this sales pitch. They’ll
    0:28:28 talk about the product with this great feature, that great feature, this great feature. It’s
    0:28:35 amazing. You should buy us. The buyer on the other side of that conversation, they’re terrified of
    0:28:41 making a bad choice. They’re sitting there going, “Well, that’s all great, but I just had three
    0:28:47 other sales calls with your competitors. Some of that stuff sounds the same.” We walk into these
    0:28:52 situations as vendors in general, thinking that the question we’re trying to answer is,
    0:28:58 “Why pick us?” The real question we have to answer is, “Why pick us over the other guys?”
    0:29:05 I think most companies don’t really wrestle with that. They don’t sit down, put themselves in the
    0:29:10 shoes of a buyer, recognize how hard it is to make a purchase decision, and think,
    0:29:15 “How do we position versus everybody else?” It’s really easy to go with the incumbent,
    0:29:21 the largest. Then you have to basically get people out of that default sometimes.
    0:29:26 Exactly. That’s fascinating. Can you tell me what a time when repositioning
    0:29:36 a product failed and what happened? I worked at a company where we were building a thing.
    0:29:42 The original conception of this thing was that it was a database, but it was a really fancy database
    0:29:49 that could do a certain kind of query really, really fast. It was originally developed for a bank.
    0:29:58 There were a set of queries that the bank did that were so difficult to process that they would
    0:30:04 run them on Friday and the query took all weekend to get the answer back. You’re asking the data
    0:30:10 this question and it took three days to get the answer back. These folks, a couple of super genius
    0:30:16 database guys, came up with this database to fix that problem and it could run that query
    0:30:23 in seconds. It’s amazing technology, fantastic. They got patents on it. Nobody’s seen a database
    0:30:29 like this before, really, really innovative. The original conception of this thing was that
    0:30:38 it was a database. I joined as the head of marketing and we were having a terrible time
    0:30:43 selling. The positioning was terrible. Nobody wanted a new database. There’s an absolute giant
    0:30:47 in that market. They’re called Oracle. Everybody’s standard on Oracle. Everybody gets certified on
    0:30:53 Oracle. Companies don’t want to have multiple database solutions to do something. We would come
    0:30:59 in and say, “We’ve got this nifty new database,” and the customers would say, “Well, we’re Oracle’s
    0:31:02 shop. We’re not married to Oracle. We don’t think Oracle is the best thing, but we can’t bring in
    0:31:09 another platform.” We eventually repositioned it as a data warehouse, which is a specific,
    0:31:13 purpose-built kind of database for doing analytics, which is exactly what we’re doing when we’re
    0:31:19 doing this big query. We did that repositioning and it was much, much better, much better.
    0:31:25 First call was better, much better than we were doing before. The problem was when we looked at,
    0:31:32 we had an assumption that if you had these queries that took three days, you would want to be able
    0:31:37 to do them in 10 seconds versus three days. It turned out that assumption was wrong. When we went
    0:31:43 to the other banks and said, “Hey, you’re doing this thing and it takes three days,” you could use
    0:31:48 this thing and it would take three seconds and they’re like, “It’s okay. Nobody’s really doing
    0:31:53 anything over the weekend anyway. We don’t need the answer right away.” Then we had this question,
    0:31:58 “Well, who needs the answer right away?” We had never asked ourselves that question. Our whole
    0:32:06 value proposition is speed, doing this query fast. It turned out the only customers that needed the
    0:32:14 answer right away were customers that were doing the query for customer service. Their customer
    0:32:17 calls in, they’re on the phone and they’re like, “Hey, I need to know this thing. Well, I don’t want
    0:32:24 to wait three days to get the answer. They want to do it in seconds.” Then we looked at the universe
    0:32:30 of companies that had data of a scale where our thing was appropriate and needed this query
    0:32:35 answered to do customer service and there was literally 10 companies on the planet and that
    0:32:43 was it. The addressable market was so small that it wasn’t a viable business. We had essentially
    0:32:49 built a product that nobody wanted. It was neat. It was really innovative. It was really cool,
    0:32:52 but there was no market for it. It didn’t solve a problem that anybody really had.
    0:32:57 So, if you’re a startup, you have limited resources, and how do you go about identifying
    0:33:00 those pain points then to better position your product?
    0:33:10 The idea behind the famous book on this is Eric Reese’s Lean Startup. The way the Lean Startup
    0:33:15 describes this is you should be out doing something called customer discovery. Before
    0:33:21 you write anything, you should be out interviewing customers or potential customers and validating
    0:33:28 the assumptions that you have about this market. Is this a thing that people would pay for? How
    0:33:34 much would you pay for it? Are there a big enough group of people that have this pain to solve it?
    0:33:40 In a perfect world, that’s what we would all be doing, but often products just don’t happen that
    0:33:47 way. Often products like this particular company, they had built it custom. They had done the deal
    0:33:52 with the bank in such a way that they owned the IP. It seemed like a good idea. They had a bunch of
    0:33:56 assumptions baked in there. They never tested those assumptions until later, but it was good
    0:34:00 enough to go raise money. They just went and raised some money and, “Okay, now we’re going. We’re doing
    0:34:06 a thing.” So, I don’t think a lot of startups do enough customer discovery at the beginning to make
    0:34:11 sure that they’ve got a thing that people really want. The second thing is that even if you do do
    0:34:17 customer discovery, it’s really hard. It’s really difficult. Customers will sometimes tell you things
    0:34:22 that aren’t true, where they’ll say, “Yes, yes, we would buy that and we would buy it for this much.”
    0:34:26 But by the time you’ve actually built the thing and you have a prototype of the thing and you get
    0:34:29 it in customer’s hands, they’re like, “Actually, there’s a different way to do this and we decided
    0:34:34 to do it this different way.” You know that customers have lots of options. So, startups are
    0:34:41 very hard because we’re dealing with uncertainty. We’re dealing with a certain amount of assumptions.
    0:34:46 Our assumptions may prove to be wrong and we have to be able to move and pivot and look for other
    0:34:51 things. Sometimes, our first crack at it isn’t going to work and we’re going to have to go back
    0:34:56 to the drawing board and kind of invent something else and see if that works. How do you position
    0:35:03 your product on a page? A lot of B2B starts with a sales rep or somebody looking at a page for a
    0:35:08 product. How do you position that product? You probably, I don’t know, 10 seconds to get somebody’s
    0:35:13 attention. Yeah, 10 seconds to get somebody’s attention. So, the way I think about positioning
    0:35:20 is this way. I like to break positioning up into a set of components. So, the component
    0:35:26 pieces of positioning are competitive alternatives. So, if you didn’t exist, what would a customer do?
    0:35:31 And then we need to understand what makes us different, which is our differentiated capabilities,
    0:35:35 like what do we got that the alternatives don’t have? The thing that we really need to understand
    0:35:40 is why those features matter. So, what is the value that those features can deliver for our
    0:35:44 business? And you mean the features that you have that nobody else. That no one else has. So,
    0:35:49 that’s our differentiated value. It says, look, we can do this for your business and no one else
    0:35:54 can do it. And then the next thing we have to understand is who cares a lot about that? Because
    0:35:57 just because we have that thing, if only three people on the planet care about that, that’s not
    0:36:03 a viable business. So, we need to understand that. So, what is it? What are the characteristics of a
    0:36:07 target company that make them really, really care a lot about the thing that only we can do?
    0:36:14 Once we have all of that, then we need to build messaging around that. So, if we think about
    0:36:20 typical homepage of a product, it needs to communicate what is the value that we can
    0:36:26 deliver that no one else can. And is this for me, me as the browser, the person that’s there?
    0:36:32 So, I need to communicate who’s this for? Why is it different? Why is it better? And that’s
    0:36:37 really hard to do on one page. You don’t have a lot of copy to do that. You don’t have a lot of
    0:36:42 ways to do that. But that’s what we really have to focus on. The biggest mistake I see technology
    0:36:50 companies making is they’re so certain that their features are valuable and people will just understand
    0:36:54 what the value of those features are. They’re talking about the features, but they’re not talking
    0:37:00 about why the features matter. So, they’re not talking about the benefit. Exactly. So, if I
    0:37:06 use the example of the CRM company I was talking about earlier, we had a feature. We just assumed
    0:37:11 that customers would look at that feature and know what the value was. But they didn’t. They
    0:37:16 didn’t. And so, all we did was talk about the feature. We’re like, “Look, you can model relationships
    0:37:22 this way.” And they were like, “But why? Why do I actually want to do that? What’s that good for?”
    0:37:25 And we’re like, “What’s good for anything you want to do with it?” Like, you figure it out.
    0:37:33 And I think in technology companies, we’re very technical people. We know a lot about technology.
    0:37:38 We get so close to it. We just assume that the customer can make the translation from feature
    0:37:42 to value. But a lot of times they can’t. And in particularly with something that’s
    0:37:48 really innovative, really new, they’ve never seen it before, we’re going to have to help them understand
    0:37:52 why those features are important. If we think about a lot of consumer tech,
    0:37:59 we’ve been trained how to do this. Like, if I tell you I’ve got a phone on my camera and it’s
    0:38:05 2,000 megapixels, you know 2,000 megapixels is way better than 100 megapixels. You’ve been trained.
    0:38:11 We know that. But the first time anybody ever talked to you about megapixels, you had no idea
    0:38:16 what a megapixel even was. Companies had to teach you why that was important.
    0:38:20 It’s interesting because that’s sort of gone away at this point. Like, nobody’s asking how many
    0:38:23 megapixels are in their phone. At one point, it was like a big differentiator.
    0:38:31 But that’s a good sort of segue into my next question, which is, how has the digital transformation
    0:38:35 over the last 25, 30 years changed positioning?
    0:38:42 I think the fundamentals of positioning haven’t changed at all, is my opinion. If you read the
    0:38:46 original book on positioning, it was called Positioning the Battle for Your Mind by these
    0:38:53 guys, Reason Trout. They came up with the concept. They published a book in 1982. And if you read that
    0:38:59 book, the first chapter talks about why do we have to worry about positioning? Why is positioning
    0:39:07 important? And they talked about how it’s important because previous to that, in any given market
    0:39:13 category, there were only a handful of products. So consumers just made a choice between the two
    0:39:18 or three choices that they had. But it wasn’t all that important for companies to really differentiate
    0:39:25 between those choices. But in 1982, oh my gosh, we have so many choices now, positioning is really
    0:39:31 important because the customer has thousands of choices, hundreds of choices. Now, if we look at
    0:39:41 the difference between 1982 to now, that has just exploded. Like, I think it’s much more important
    0:39:48 now to really establish that position. It’s much harder now to stand out in a world where
    0:39:54 we’re exposed to millions of advertising messages a day. Like, think about digital stuff. I am
    0:40:01 constantly bombarded with messages from companies. I cannot avoid it. It’s millions a day compared
    0:40:10 to 1982. So in order for customers to really stick out, sorry, in order for companies to really stand
    0:40:16 out in a market that is so crowded and so overwhelmed with messages from brands,
    0:40:22 we’re going to have to get really succinct on what is this thing? What is the value of this thing?
    0:40:26 Who is it for? How is it different from the other things in the market? And we’re going to have to
    0:40:32 be so clear about that to break out from the noise. And why you should trust us? Because if we’re a
    0:40:36 small company, we’ve got like five employees and we’re competing with Salesforce, but we have one
    0:40:41 particular feature that they don’t have and we have our sort of positioning at our niche market.
    0:40:45 Well, now there’s still a brand issue because it’s like nobody’s ever heard of you.
    0:40:52 A lot of this stuff. So if I go back to that example of that CRM company I was in,
    0:40:59 the great thing about that was we managed to establish ourselves in this little bubble
    0:41:06 of investment banking. And once we had done two customers in investment banking,
    0:41:11 we were the kings of investment banking with only two customers. Because we could walk in and say,
    0:41:17 well, you know, Goldman Sachs and Merrill Lynch, what do they got? They got a bunch of call centers
    0:41:23 and a bunch of manufacturing. And so we could put a circle around it and kind of make like the rest
    0:41:28 of the market doesn’t matter to you, investment banker, like you don’t want the world’s greatest
    0:41:34 general purpose CRM. You want the world’s greatest CRM for people like you. That’s how we win in this
    0:41:38 thing. If I walk in and say, we’re just CRM, we’re CRM for everybody and we’re just the greatest
    0:41:44 CRM ever, nobody wants that. It’s like you’re changing the frame almost like taking up a
    0:41:49 photographer. Like there’s this great quote about, you know, what makes a great photograph is knowing
    0:41:53 where to stand. And it’s like you’re basically almost picking somebody up and you’re being like,
    0:41:58 look at this way. Yeah, this is the this is the Warren Buffett quote, you know, how do you beat
    0:42:04 Bobby Fisher? You play him at any game but chess. How do you go about evaluating product positioning?
    0:42:12 This is an interesting question. People want me to look at their website and tell me whether or
    0:42:19 not their positioning is good. And in B2B, that is almost impossible. Almost impossible. So you
    0:42:26 have this thing, it serves a market, I am not the buyer for that thing. So I could look at your website
    0:42:31 and say, I don’t have a clue what this is all about. But the thing you sell is for airplane
    0:42:36 mechanics. It’s fine if I don’t have a clue about that. It needs to resonate with airplane mechanics.
    0:42:42 So you can’t tell just using, you know, what I would call the grandmother test, you know, would
    0:42:46 your grandmother understand this? Well, unless you’re selling to grandmothers, it doesn’t matter
    0:42:51 if the grandmother understands it. So some people will say, well, we need to dumb this down and we
    0:42:56 need to have it so that anybody understands it. I super disagree with that in B2B. If I’m selling
    0:43:01 a specialized thing to specialized buyers, it just needs to resonate with them. It’s okay
    0:43:05 if it doesn’t resonate with your grandmother. What it does mean is if we’re trying to assess the
    0:43:15 positioning, what really matters is when we are, when we have a brand new prospect that comes in
    0:43:20 that doesn’t really know too much about us, how long does it take us before it clicks?
    0:43:25 And they’re like, Oh, I get it. Oh, I get why you’re different. Oh, I get why that’s good. Oh,
    0:43:33 I get why in my career. So I used to be an in-house vice president of marketing. And so the latter
    0:43:38 part of my career, I was very focused on positioning. So if the CEO hired me, they hired me because I
    0:43:42 could talk intelligently about how we were going to fix this positioning. I would come on board
    0:43:47 and what everybody would want me to do is just run campaigns, April, make the revenue go up to the
    0:43:52 right. And I was always worried about running campaigns on weak positioning because it’s a
    0:43:57 bit like pouring water into the leaky bucket. And so what I would do to assess the positioning,
    0:44:03 whether it was good or not, is I would walk over to sales. And there would be people doing sales
    0:44:08 people doing first calls with customers. And you hear it in a first call. And it sounds like this,
    0:44:15 your sales rep is doing a great job. They have a pitch customers there. And the sales rep has
    0:44:21 a pitch that’s maybe a dozen slides long. And they’re saying, okay, here’s what we are. Here’s
    0:44:25 what we do. We do this thing. They’re getting into the pitch. And you’ll see the customer. If it’s a
    0:44:32 video call, you’ll see the customer and they’ll be making this confused face. And what’ll happen is,
    0:44:36 and they’re not saying too much, and a good rep will stop and be like, are there any questions?
    0:44:42 Like, are you with me still? And the customer will go, yeah, yeah, yeah, just back it up. Can
    0:44:46 you just go back to the beginning, back it up and go back to the beginning, pitch it to me again.
    0:44:51 And, and there’s this fundamental disconnect, like, I don’t even know what bucket to put this
    0:44:56 thing in. Like, is it a, is it a database? Is it a business intelligence tool? Is it a thing?
    0:45:02 Like, you have a frame to figure it, you know, and so there’s something in that positioning
    0:45:06 that is just confusing the heck out of the customer. That’s the most common sign you see is the
    0:45:11 customers looking at it and they’re like, I just can’t figure out what this thing is. The second
    0:45:16 common sign you’ll see with weak positioning is the customer thinks they’ve got it figured out,
    0:45:21 but they’re actually comparing you to something that you don’t actually compete with. So you’ll
    0:45:25 get to slide three or four and the customer will say, yay, I get it. You’re just like Salesforce
    0:45:28 and you’re nothing like Salesforce. You don’t compete in that market. You’re not that. And then
    0:45:32 the rep is like, no, no, no, no, no, let me go back. I’ll go back to the beginning. We’ll do this again.
    0:45:38 So you’ll hear that a lot. The other thing you’ll hear, and this is almost the most terrifying one,
    0:45:45 is in these early conversations with a prospect. The prospect will say, I get it. I get what you are.
    0:45:49 I get who you compete with. I just don’t really get why we would pay money for that.
    0:45:55 Like, can I just do that with a spreadsheet? Can I just do that with my accounting package?
    0:46:00 Couldn’t I just hire an intern do that? Why would I pay money to do that? So they kind of understand
    0:46:05 the product, but again, they don’t understand the value of it. Why would I give you money in
    0:46:10 exchange for that thing? Who’s in charge of positioning at a company? Good question. This
    0:46:17 has traditionally been seen as a marketing function. And even more specifically in tech
    0:46:23 companies, we often say this is a product marketing function. But I don’t believe that. I think that’s
    0:46:28 not the right way to think about it. If we really think about what we’re doing in positioning,
    0:46:34 is we’re getting really tight on who’s our competitor? How are we different? What is the
    0:46:41 value we can provide to the customer and who exactly are those customers? If we made a change in
    0:46:48 that, that would be a big change in the business. If I think about, again, my CRM example, if we
    0:46:55 switch from being general purpose enterprise CRM to CRM for investment banks, that’s a whole
    0:47:03 different company. So I don’t think marketing has, first of all, they’re not talking to customers
    0:47:12 every day the way sales is. They don’t necessarily understand the differentiation amongst competitors
    0:47:19 the way the product team would. And sure as heck, the CEO is going to have something to say about
    0:47:25 where we’re selling and how we win in the market. So in the work that I do with companies with
    0:47:32 positioning, we do it with a cross functional team. So we bring together product marketing sales,
    0:47:39 customer success, support, and we bring everybody together and everybody comes with what they
    0:47:45 understand about customers and how we win. And we work through the positioning together as a group
    0:47:52 exercise. Now somebody needs to be the steward or the police of that positioning once we’ve said it
    0:47:56 to make sure that we are consistent about that in the way we’re using it in marketing and the way
    0:48:02 we’re using it in sales. And that’s typically marketing that does that. I also think it’s good
    0:48:08 to have somebody be the person that puts their hand up and says, you know what, things are changing
    0:48:13 in the market. We maybe need to come back together and check in on that positioning. But I don’t
    0:48:17 think that marketing should be able to change positioning or look at positioning or do it
    0:48:22 on their own. They could try, but it won’t stick because sales won’t believe in it. The CEO won’t
    0:48:28 believe in it. What we actually need is a cross functional team to get together and look at it,
    0:48:32 make some decisions, get everybody in agreement and alignment on it, and then we can all go execute
    0:48:39 on it in our respective departments. And then marketing can be the steward of here’s the positioning,
    0:48:44 here’s how we define it. This is the messaging that comes out of that positioning. And then marketing
    0:48:48 be the person that put their hand up and say, you know what, this big acquisition just happened in
    0:48:52 our market and we might need to step back and relook at the positioning. It’s interesting that
    0:48:57 you say that when you’re talking about a salesperson and the first call, I was thinking, oh,
    0:49:03 look, if things don’t go as planned, the salesperson points to marketing, marketing points to the sales
    0:49:09 person, everybody points to product. But you even expanded this. You have a cross functional team of
    0:49:14 sales, marketing, products, customer success, support, and then you have the CEO involvement
    0:49:19 at some point in there too. Exactly. And when things are going well, everybody is a winner and
    0:49:25 everybody’s responsible for success. But the minute you have a problem, everybody starts pointing
    0:49:31 the finger at everybody else. How do you determine when that’s a positioning problem versus a larger
    0:49:37 problem? It’s interesting because, you know, I do this as work as a consultant and sometimes
    0:49:42 companies will call me and they think they have a positioning problem and then I have a conversation
    0:49:45 with them and I’m like, I don’t actually think that’s a positioning problem because there’s lots
    0:49:50 of reasons businesses aren’t successful and positioning is just one of them. So typically,
    0:49:57 so sometimes companies will come to me and they’ll say, you know what, every company we talk to
    0:50:03 loves us. If we can get them in a meeting, we close all that business. That tells me the positioning
    0:50:08 is good. You’re just not getting enough meetings. You’re just doing a terrible job at lead generation.
    0:50:14 You should go fix that. You just need to get more at bats. Sometimes what you have is a sales
    0:50:19 execution problem. Like there’s something in the way you’re executing in sales that isn’t working.
    0:50:25 So my test is often like, so first of all, do you have good, happy customers that stick with you
    0:50:29 and love you and are referenceable and whatever? Most of the companies that come to me and say,
    0:50:38 yes, yes, we have that. Okay. Do you have confusion at the beginning of your sales process where they
    0:50:46 come in and they just don’t get it? That gap between what a customer knows and what a prospect knows,
    0:50:51 we can close that gap with good positioning. What role does storytelling play in all of this?
    0:50:58 Storytelling is one of these things marketers think a lot about storytelling and obsess a lot
    0:51:05 about storytelling, particularly on the consumer side, business to business marketers like to
    0:51:09 think about storytelling. I don’t think a lot of B2B companies are doing an amazing job at
    0:51:13 storytelling. What’s really funny about that is if you go over to sales, sales doesn’t care about
    0:51:18 storytelling. They never talk about storytelling. And yet they’re the ones that actually are face
    0:51:22 to face with a customer. And if anyone should be telling a story, maybe it’s your sales team.
    0:51:28 Most of the storytelling stuff that you see, or at least what I learned as a marketer going through,
    0:51:32 if you go to marketing school and learn storytelling, a lot of what you’ll see is this
    0:51:38 hero’s journey structure for storytelling, which is very common in entertainment. It’s the way most
    0:51:44 movies are written, a lot of stories are written with this hero’s journey. So in B2B storytelling,
    0:51:50 we think about the hero as the customer. So the customer has a problem they embark on this quest,
    0:51:55 they meet a guide, that’s us, we’re the guide, and we give them a plan and we help them be successful
    0:52:02 and avoid defeat as we have this hero’s journey. The problem with that storytelling arc is there’s
    0:52:09 kind of no competitor in there. And if we think about what a buyer is actually trying to figure
    0:52:15 out is why pick you over the other guys, a hero’s journey doesn’t really give us an arc to do that.
    0:52:21 In the work that I do with customers, we start with positioning. So we get really clear on
    0:52:26 what’s the value we can deliver that no one else can, who are the customers that really care about
    0:52:34 that. And then we want to build a story around that. The story that we’re trying to tell needs
    0:52:39 to answer this question, why pick us over the other guys. So in that storytelling framework,
    0:52:45 we need to have a spot in that framework to paint a picture of the whole market and then show where
    0:52:50 we fit and where everybody fits. So we shouldn’t actually be just talking about us, we should be
    0:52:55 talking about the alternative approaches to the problem, which means we’re going to talk about
    0:53:02 competitors, or at least the approach that the competitors take. In the work I do, we take the
    0:53:09 positioning, we translate it into a sales pitch. That sales pitch has a storytelling structure
    0:53:16 that starts with a conversation around the market. So we’ll talk about, look,
    0:53:23 we look at this market in a different way than our competitors. And because we look at it in a
    0:53:29 different way, we built the product in a different way. And you’re a customer, you have lots of
    0:53:33 choices. There’s other products that you could buy. There’s other approaches you could take to this
    0:53:37 problem. Let’s talk about that. We think about this all day. We have opinions about it. We want to
    0:53:42 hear what you have to say about it too. So this is the way we look at it. You could do it this way,
    0:53:46 this way, or this way. And here’s the pluses and minuses of these different ways of solving this
    0:53:51 problem. And this is a conversation with the customer more than me telling the customer stuff.
    0:53:58 But at the same time, I’m teaching the customer about what we think is important in a purchase
    0:54:04 decision, which most customers don’t know early in their purchase process. They’re trying to buy
    0:54:09 accounting software. Half the people doing a purchase in B2B have never purchased a product
    0:54:15 like yours before. So they’re doing this for the first time. They’re overwhelmed with information
    0:54:20 on the internet. Every vendor says, we’re the best. No, we’re the best. No, we’re the best.
    0:54:24 What we need to do in a good sales storytelling in B2B
    0:54:32 is help customers understand how to confidently make a decision. In order to do that, I have to
    0:54:38 paint a picture of the whole market so they feel good that they understand, ah, if I choose this,
    0:54:45 I’m choosing to go big on this and low on this. If I choose this, here are the trade-offs for this.
    0:54:49 If I choose this, here are the trade-offs for this. Or you could choose us and here’s the trade-offs
    0:54:55 for us. Are we a good fit for you or not? That’s what we should be doing in a good sales storytelling,
    0:55:01 in my opinion. And who does that really well, in your opinion? I have a bunch of clients that I’ve
    0:55:06 worked with, but one that I think is doing an amazing job of this for a really technical,
    0:55:13 complicated product is a company I worked with in San Francisco called Postman. Postman does
    0:55:24 essentially a platform for developing APIs. This is a new concept. Nobody had this idea of a
    0:55:31 platform for APIs before Postman came up with it. They do an amazing job, I think, of talking about
    0:55:38 why APIs are important, so important that you actually don’t want a set of disjointed tools
    0:55:44 across your organization to work on them, why that’s important. They’ve coined a concept called
    0:55:49 an API First World, and then they’ve done an amazing job of storytelling around that.
    0:55:52 So if you go on their website, on their homepage, and you scroll down about halfway,
    0:56:02 they have a graphic novel called The API First World, and it’s a graphic novel designed for
    0:56:10 technical people to understand this story of, what’s an API? Why is it important? Why do we
    0:56:15 really want to have high quality APIs? Why is that important for your business? And why do we need
    0:56:20 a platform to enable that? So I think they do an incredible job of that. And they do it in a
    0:56:27 thousand different ways. Like if you see the CEO do a conference talk, he’s actually not talking
    0:56:33 about the product as much as he is talking about the market and this concept and why we need to
    0:56:39 think about APIs differently. But if you are aligned with his point of view on the market,
    0:56:44 you’re going to buy this product. But they’ve really done a good job, I think, of developing a
    0:56:50 point of view on the market, helping customers understand the context around their product
    0:56:56 and the things that you need to understand in order to understand why their product is valuable
    0:57:01 and why you might pick it. How important is that from a CEO perspective at conferences and talks
    0:57:07 and media to basically put yourself out there and say, I see the world this way, which is slightly
    0:57:12 different than most people see it. I think it’s super important. I think this concept of having
    0:57:18 a point of view on the market is really, really important. Most founders that I’ve worked with,
    0:57:25 if you talk about how the original idea for the product came up, they’ll say, you know, I was
    0:57:30 really frustrated. I looked at all the databases and I decided all the databases were doing it wrong.
    0:57:35 And if you were smart and you knew what I knew, I had a better way to do it. Yeah, you would build
    0:57:41 a database like this. Part of what we need to communicate to customers is we kind of need to
    0:57:48 take them on that journey and say, look, we have a different perspective on this. We look at this
    0:57:55 problem different. It’s not the problem. We see a problem inside the problem. We have a perspective
    0:58:00 on the problem that if you understood it the way we understood it, you would pick our stuff.
    0:58:06 Right. So that point of view I think is really super important. And if you can nail that,
    0:58:11 it is the key to selling lots of stuff. And how important is it to, you mentioned coin the term,
    0:58:17 like how important is it to define the vocabulary by which the customers use ultimately
    0:58:23 to make a choice or to own a term so that if it becomes top of mind to them,
    0:58:29 nobody else has that term. It’s really important if you are doing something that is truly
    0:58:37 innovative, like an emerging thing. So earlier we talked about market categories and most of the
    0:58:43 time, if you look at the way the most successful companies do this, they’re going into an existing
    0:58:47 market category and they’re serving an underserved corner of that and they’re expanding from that.
    0:58:53 About 10% of the time that’s not true. 10% of the time we have something that is emerging.
    0:58:57 It’s a market that is emerging. There is no leader in that market right now because that
    0:59:02 market doesn’t even exist right now. This is something brand new. You could never even do this
    0:59:09 before because technology wouldn’t, wasn’t there to do it. And so it’s emerging. When it’s emerging,
    0:59:16 there’s no good vocabulary to talk about it because we’ve never talked about it before.
    0:59:24 And often in those cases, what we’re doing is we’re defining or attempting to define
    0:59:29 what the boundaries of that emerging market category are. What’s important and what isn’t
    0:59:36 important in that emerging market category. And in those cases, we often very much do want to put
    0:59:43 some names on things. We may want to specifically name the market category in a way that advantages
    0:59:50 us. We may want to name key concepts inside that in a way that helps customers understand
    0:59:58 why this is an important key thing that you need to understand in that. And so if you see companies
    1:00:07 that have truly done category creation, often they’ve done a very good job of helping customers
    1:00:13 understand key things that they needed to understand in order to understand, ah, this is a totally
    1:00:19 different problem. I didn’t even know I had this problem. Because if the customer knew there was
    1:00:24 a problem and they have that problem, there would be a category of solutions to solve it already.
    1:00:28 In emerging markets, we’re often addressing a problem that the customer doesn’t even define it
    1:00:32 as a problem. They don’t even know this is a problem. This is just the way the world works.
    1:00:36 There’s no way to solve this problem. If we can help them become problem aware,
    1:00:42 then, you know, that’s a step closer to that, well, you know, now that you know that you have a
    1:00:47 problem, we’re the thing to solve that. How do you think about independent bodies that play a
    1:00:53 role? And I’m thinking like in cybersecurity, there’s the Gartner Quadrant. And if you’re not
    1:00:58 on there, like people won’t even consider your product, but that sort of limits your ability
    1:01:04 to. Absolutely. How do you think about that? I spent a lot of time working with Gartner in my
    1:01:14 past roles as a VP marketing. Not every market segment has an analyst or an expert body or
    1:01:19 somebody whose opinion matters a lot, but in some segments we do. So I spent a lot of time in the
    1:01:25 database market. No large enterprise buys a database without talking to Gartner Group first.
    1:01:32 So in that case, we spent a lot of time helping Gartner Group understand what our stuff was about,
    1:01:38 why it was important, why they should include us in the quadrant, because we literally needed them
    1:01:45 to position us properly to clients that call them and ask for advice. I’ve had other markets that
    1:01:50 I’ve been in where the buyers simply don’t call Gartner Group because they don’t care what Gartner
    1:01:54 Group has to say about that because Gartner Group doesn’t cover that space. And Gartner Group does
    1:02:00 a really good job in enterprise IT. Outside of enterprise IT, they’re a bit less influential.
    1:02:08 I think it’s important if we’re a vendor to understand where do our customers look for advice
    1:02:14 and where do we need to educate those people or those entities because they’re giving advice
    1:02:21 to our customers. Sometimes that’s industry analysts like Gartner. Sometimes it’s service
    1:02:26 providers or system integrators like Deloitte and they’ll go to Deloitte and say, “What do
    1:02:30 you think about this? We’re doing a big digital transformation. You’re our trusted advisor on
    1:02:34 digital transformation. What do you think about these products?” In which case, maybe I need a
    1:02:38 partnership with Deloitte because they’re not going to recommend my stuff if they don’t get some kind
    1:02:45 of money off of that. So it’s important to understand who influences your buyer. As we go
    1:02:53 down market, it’s interesting. There’ll be people like you, like podcasters that people listen to,
    1:02:59 people that are experts in things. People ask me my advice about marketing technology all the
    1:03:06 time. So in a small way, I’m an influencer there. In the work that I do, companies will often ask
    1:03:10 me, “Well, we now need to do all these things in sales. Who do you know that’s really good in
    1:03:14 sales? Is there particular technology you should recommend in sales?” The important part as vendors,
    1:03:19 I think, is we need to understand who has influence on our buyers and do we need to invest
    1:03:24 some energy and attention in making sure that those influencers understand our stuff and our
    1:03:29 positioning us well. What are the most interesting mistakes you’ve seen people make when it comes
    1:03:35 to positioning? So many things. The first mistake is not thinking about it at all and just assuming
    1:03:42 that there’s only one position we could possibly take. Most products, we could position them in a
    1:03:48 dozen different markets. And if we really step back and forgot about the history and where we
    1:03:54 came from and looked at it with our fresh eyes, we might see something really different. So
    1:03:58 we need to think about this in a way customer thinks about it. So not thinking about positioning
    1:04:03 at all is the first mistake. The second mistake is, as we talked about before, treating it as a
    1:04:09 little marketing exercise. We’re just going to put some new words on the homepage and that’s it,
    1:04:14 we’re done. But sales has no idea how to pitch it. Product doesn’t really understand it. It doesn’t
    1:04:21 actually represent the truth of our product at all. It’s just nice, pretty words. This is not
    1:04:27 repositioning. This isn’t going to move the dial on anything. And then lately, what I’ve seen is
    1:04:41 companies that love the idea of category creation are attempting to create a category when they
    1:04:47 obviously fit in an existing market category. And it’s kind of wishful thinking that this is a
    1:04:52 new category. So they say, no, no, no, we don’t have any competition. This is a brand new thing.
    1:04:57 Nobody works like this. And the result is the customer is like, but wait, aren’t you just a CRM?
    1:05:03 Why are you using all these other words? I’m just confused. So I’ve seen a lot of companies have come
    1:05:09 to me that have attempted to do category creation or pretend that they’re doing this new category
    1:05:15 of things. And then it’s been a disaster. Customers are just very confused. They don’t understand why
    1:05:20 this is different from the existing things they’re doing. They can’t figure out what bucket to put
    1:05:25 it in because they’re trying to create a new bucket. And it’s been a disaster. And then they come
    1:05:30 to me and they’re like, now we got to fix this. And how do we do it? When there’s an obvious spot
    1:05:37 where they could easily position in a very big sub-segment of an existing market category,
    1:05:42 and that would be way easier to sell, way easier to tell the story, way easier to do deals. So I
    1:05:49 see a lot of that right now. What’s the difference or maybe what does schools get wrong about B2B
    1:05:55 marketing that when you in the academic environment, that sounds good. But in the real world, it falls
    1:06:01 flat. Oh my gosh, so much stuff. Most of the research that’s been done in marketing, like when
    1:06:06 I went to marketing school, it was so disappointing. All of the research is done on consumer packaged
    1:06:15 goods, all of it. And often what you’ll get is a professor inside a marketing department at a
    1:06:21 university taking these things that we’ve learned about consumer packaged goods and then stretching
    1:06:26 it out and saying, well, obviously this works with B2B exactly the same way. And it’s like, well,
    1:06:33 wait a second. So we’ll see things like, I must have this conversation about once a week where
    1:06:40 people will talk about, what’s that water, liquid death? You know this one? I don’t drink that.
    1:06:45 The marketers are marketers obsessed with this thing called liquid death. And all it is is fizzy
    1:06:50 water in a can made to look cool. And they sell it at bars. So you don’t want to consume alcohol.
    1:06:55 You’re not into booze. You go to the bar, you still want to look cool. You can order this liquid
    1:06:58 death. It’s got skulls on it and stuff. They do all this really creative advertising and all this
    1:07:04 stuff. And the B2B marketers look at that and say, why can’t we do that? Right? Why can’t this
    1:07:09 just be marketing? Why do we have to worry about product at all? And often you’ll get these marketers
    1:07:14 say, look, can we really differentiate on product? Because people can just copy our product.
    1:07:20 Eventually everyone will just catch up to us and all the products will be exactly the same.
    1:07:27 And if you’re in tech, that is nonsense. That is nonsense. That would be like saying,
    1:07:33 you don’t think any of the innovation that Apple’s done matters. They could have just,
    1:07:39 it’s just marketing. Do you really think that? So there is kind of this belief that we can take
    1:07:46 these things from consumer and apply it to a very considered purchase in a B2B situation
    1:07:52 where there are stakes involved, where the person making the decision might get fired
    1:07:57 and say, oh yeah, that’s just like buying fizzy water. Oh, at the end of the day, these people are
    1:08:03 all people and they’re driven by emotions. We have to connect with their emotions. I agree with that,
    1:08:10 but the emotion is fear. It’s not looking cool. It’s not, hey, I like the one with the skulls.
    1:08:16 I can’t go to my boss and say, I bought the database with the skulls, man, come on.
    1:08:24 I just can’t get away with that. And so I’ve heard a lot of things in marketing classes
    1:08:31 where I’ve leaned back and said, okay, man, if we’re selling toothpaste, fine. But if I’m selling
    1:08:38 a million dollars worth of middleware, not fine. These rules do not apply. So I think in schools,
    1:08:43 we don’t teach enough about B2B. We don’t teach enough about the difference between
    1:08:48 a highly considered purchase versus an unconsidered purchase. I don’t think we talk enough about
    1:08:54 buying committees. I don’t think we look enough at the research around how difficult it is to get
    1:09:01 over indecision in a B2B purchase process and what that means for our positioning, for the way that
    1:09:07 we do sales pitches, for a lot of the stuff we do. So I don’t see that covered enough in schools
    1:09:15 at all. Every great B2B marketer I know has learned this on the ground, hands on, doing it in companies.
    1:09:20 We’re all starting from scratch. What do you know about B2B decision making that you would say most
    1:09:29 people get wrong? The biggest one is this idea of customer indecision, that people do not understand
    1:09:36 how difficult it is to make a purchase. If you understood the research on that, it’s amazing
    1:09:41 anything gets bought at all. There’s a great book out there. It’s by this guy, Matt Dixon.
    1:09:47 It’s called The Jewel to Effect. And the research in that is incredible. So when we went into lockdown
    1:09:53 in COVID, he took this opportunity to study sales calls because all of a sudden all the
    1:09:59 sales calls were happening virtually, everybody was doing them on Zoom. And so they took some AI
    1:10:06 and they analyzed two and a half million sales calls. And they did it in partnership with these
    1:10:11 companies so that they could look at what happened on the sales call. And then what ultimately
    1:10:15 happened? Did we get the deal? Did we not get the deal? What works and what doesn’t work? And
    1:10:22 that research is terrifying when you look at it like that’s where this number comes from.
    1:10:30 40 to 60% of B2B purchase processes end in no decision. This is the most fearsome competitor.
    1:10:37 We have a B2B by far is no decision. And this no decision is not because we’ve made a decision
    1:10:41 to stay with the thing we have because we think it’s better. It’s because we look at our choices.
    1:10:46 We can’t figure out how to do that in a way that we’re sure isn’t going to get us into trouble.
    1:10:51 So we just don’t do anything. If we really understood that, I think we would operate very
    1:10:56 differently in B2B. You can see the difference in people that get that and people that don’t.
    1:11:02 That’s fascinating. I think it’s really interesting to sort of think of sales cycles. I like the fear
    1:11:08 concept. My friend who runs a cybersecurity company, I was like, “Oh, put me in charge of sales.”
    1:11:11 He’s like, “What would you do?” I was like, “I would show up with a binder of newspaper
    1:11:17 clipping so that companies that got hacked would be like, “My job is that you don’t appear in this
    1:11:21 book.” And that would be my entire sale. They don’t care about the technical features. They’re not
    1:11:26 buying features. They’re buying the benefit. And when you’re selling something negative,
    1:11:31 which doesn’t contribute to revenue directly, you’re basically selling the prevention of
    1:11:36 something negative from happening. How do you do that? I was like, “Why wouldn’t that be effective?
    1:11:41 I don’t know.” This has been a fascinating conversation. We always end with sort of the
    1:11:50 same question, which is, “What is success for you in life?” I feel like I spent my whole career
    1:11:56 being a vice president of marketing. I did that for 25, 30 years. And the thing about being a vice
    1:12:00 president of marketing, it’s a really hard job. You have to know a lot about a lot of things.
    1:12:06 Marketers talk about being T-shaped. You have to know you have to be this deep on so many things,
    1:12:10 and then usually you have one thing that you’re really deep on. For most of my career,
    1:12:15 I was a T-shaped marketer, and the thing I was really deep on was positioning.
    1:12:22 Now I’m a consultant, and I just get to do that thing that I love. And so that has been
    1:12:30 such satisfying work. It’s been so satisfying to work with companies, wrestle this thing that is
    1:12:39 really thorny, really hard. And when it clicks, it feels like magic. It feels like magic. Good
    1:12:44 positioning. When you look at it afterwards, people will say, “Well, of course that’s what
    1:12:48 they are. Of course that’s what they do.” And they’re like, “Actually, that was really hard
    1:12:52 for us to get there. And if you had asked us two years ago, we had no idea what that is. And now
    1:12:57 it’s this and it seems obvious, but it wasn’t obvious.” That is very satisfying work to do.
    1:13:04 So I just feel that is success for me. When we get to the end of these projects, and everybody
    1:13:09 in the room is like, “This is so much easier to sell. This is so much easier for customers to
    1:13:15 understand.” I had a client come to me two weeks ago, and they’re doing the first roll out of these
    1:13:20 new sales pitches that they’re doing. And so the first pitch that they did, and they were very
    1:13:24 scared to do it because it was a brand new pitch, and it was a really high-profile client,
    1:13:30 really big deal, they went in, and it’s a competitive deal. So they know that the prospect
    1:13:35 is talk to their two competitors, and then they’re coming to talk to them. And the CEO sent me an
    1:13:43 email and said, “After we did the pitch, the prospect CEO pulled them aside and said, “I have
    1:13:48 never seen a sales pitch as good at that in my entire life.” We’ve seen a lot of sales pitches.
    1:13:54 That was really great. That’s awesome. And so that is the most satisfying thing. And so he’s happy.
    1:14:00 I’m happy. Everyone’s happy. You also hit on something in that answer that I think goes
    1:14:06 under “appreciated in life,” which is avoiding your weaknesses. So doing the thing that you’re
    1:14:11 really good at in structuring your life in a way where you’re not. You’re doing a lot of the things
    1:14:15 that you either don’t want to be doing or that you’re not as good at. It’s so amazing. I wish I
    1:14:21 had been doing it sooner in my career, although I don’t know if I’d be good at this, if I didn’t have
    1:14:27 25, 30 years of being a hands-on vice president of marketing. But this does feel like the reward
    1:14:33 phase of my career that I just get to work in my little zone of excellence doing this thing that
    1:14:38 has really big impact on companies. I love it. They love it. I’m happy. They’re happy. Everybody’s
    1:14:43 happy. If this is all I do for the rest of my life, perfect.
    1:14:56 Thanks for listening and learning with us. For a complete list of episodes, show notes,
    1:15:03 transcripts, and more, go to fs.blog/podcast or just google “The Knowledge Project.”
    1:15:09 Recently, I’ve started to record my reflections and thoughts about the interview after the interview.
    1:15:14 I sit down, highlight the key moments that stood out for me, and I also talk about
    1:15:19 other connections to episodes and sort of what’s got me pondering that I maybe haven’t quite figured
    1:15:25 out. This is available to supporting members of the Knowledge Project. You can go to fs.blog/members.
    1:15:31 Check out the show notes for a link, and you can sign up today. And my reflections will just be
    1:15:36 available in your private podcast feed. You’ll also skip all the ads at the front of the episode.
    1:15:40 The front of my street blog is also where you can learn more about my new book,
    1:15:46 “Clear Thinking,” turning ordinary moments into extraordinary results. It’s a transformative guide
    1:15:52 that hands you the tools to master your fate, sharpen your decision-making, and set yourself up
    1:16:05 for unparalleled success. Learn more at fs.blog/clear. Until next time.
    1:16:15 [BLANK_AUDIO]

    Shane Parrish and Maya Shankar dive into the complexities of identity and personal transformation. They explore how significant life changes can reshape one's sense of self and explain how to navigate these transitions.

    Maya shares her personal stories and tips on making proactive choices and keeping a flexible, layered sense of self. They also discuss the psychological and philosophical aspects of identity, offering practical advice on goal-setting and personal growth.

    Maya Shankar is a cognitive scientist and the creator, executive producer, and host of the podcast, A Slight Change of Plans. Shankar was a Senior Advisor in the Obama White House, where she founded and served as Chair of the White House Behavioral Science Team. She holds a Ph.D. in Cognitive Psychology from Oxford and a B.A from Yale.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠

    Timestamps:

    (00:00) Intro

    (02:40) Shankar's ”almost unbelievable” story of getting into Julliard

    (05:30) Why Shankar studied identity

    (11:38) What is identity?

    (14:52) Using your identity to accomplish your goals

    (18:00) Using anti-identities to accomplish your goals

    (18:51) What to do when your identity is ”attacked”

    (26:30) How to re-establish trust in institutions

    (32:30) Use identity to start a positive habit

    (35:35) How to debunk myths with stories and facts

    (37:18) How does how we frame our goals help (or prevent) us from accomplishing them

    (43:11) The one motivational technique Shankar uses every day

    (45:15) On success

    Watch the episode on YouTube: ⁠⁠https://www.youtube.com/c/theknowledgeproject/videos⁠⁠

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠⁠https://fs.blog/newsletter/⁠⁠

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now – ⁠⁠https://fs.blog/clear/⁠⁠

    Follow me: ⁠⁠https://beacons.ai/shaneparrish⁠⁠

    Join our membership: ⁠⁠https://fs.blog/membership/

  • Parenting Expert: The 4 Biggest Mistakes That Western Parents Make | Michaeleen Doucleff

    AI transcript
    0:00:05 I spent 12 years at NPR covering mostly viruses and they would send me around the world.
    0:00:09 What was really surprising to me and why I went on this journey to like learn this
    0:00:13 other way of parenting was when I came back to San Francisco and I tried some of these
    0:00:17 techniques and methods. They worked like amazing on my little girl.
    0:00:21 So what are some of these tips? I mean you summed it up with an acronym of team.
    0:00:21 Yes.
    0:00:24 What is team and like let’s make them practical for people.
    0:00:30 So the first thing T is like this idea of like a lot of the Western relationship,
    0:00:33 parent-child relationship is based on control but E is a different way.
    0:00:34 E is.
    0:00:36 And the next one is autonomy.
    0:00:41 Yeah this one’s huge. If you could just change like one thing in your child’s life that would be.
    0:00:44 M I guess we’ve sort of talked about this a little bit.
    0:00:46 Yeah it kind of fits all together.
    0:00:52 The M is like so praising is a really interesting topic that’s very unique in Western society.
    0:00:55 In my entire travels I’ve never seen a parent-child.
    0:00:57 Like it’s not necessary.
    0:00:59 Okay would you video games? It’s like seven, eight.
    0:01:00 Every day.
    0:01:01 If you have your homework done.
    0:01:03 I would cut out every day.
    0:01:05 Oh I can’t yeah no.
    0:01:06 But they don’t need it.
    0:01:12 I don’t I don’t well you know if parents are listening to this and have a 16 year old addicted
    0:01:13 to their phone.
    0:01:13 Yeah.
    0:01:17 What are the tangible things they can do in the next one month to sort of like help.
    0:01:18 So here’s how it works.
    0:01:40 Welcome to the Knowledge Project, a bi-weekly podcast exploring the powerful ideas, practical
    0:01:43 insights, and mental models of others.
    0:01:47 In a world where knowledge is power, this podcast is your toolkit for mastering the
    0:01:48 best what other people have already figured out.
    0:01:51 I’m your host Shane Parrish.
    0:01:54 Before we dive in I have a quick favor to ask.
    0:01:59 If you’re enjoying the show and listening on Apple Podcasts, Spotify, or another platform
    0:02:01 please take a moment and hit the follow button.
    0:02:04 The more followers we have the better guess we can bring on to share their knowledge with you.
    0:02:08 If you want to take your learning to the next level consider joining the membership
    0:02:11 program at fs.blog/membership.
    0:02:15 As a member you’ll get my personal reflections at the end of every episode,
    0:02:21 early access to episodes, no ads, exclusive content, hand edited transcripts, and so much more.
    0:02:22 Check out the show notes for a link.
    0:02:28 Today my guest is Michaeline Ducleff, author of Hunt Gather Parent and a global explorer
    0:02:29 of parenting practices.
    0:02:34 Her work takes us on a journey across cultures revealing profound insights that challenge
    0:02:37 our modern assumptions I guess about raising children.
    0:02:40 At the heart of her discoveries lies the acronym TEAM.
    0:02:44 Together encourage autonomy and minimal intervention.
    0:02:49 These four principles draw from the wisdom of indigenous communities around the world
    0:02:53 offering a roadmap for fostering resilience, independence, and emotional well-being in our
    0:02:54 children.
    0:02:59 She shares her observations on how different cultures approach parenting and how their practices
    0:03:03 can help alleviate the burdens we place on ourselves and our children.
    0:03:07 We also explore the role of technology in modern parenting and its impact on our children’s
    0:03:08 development.
    0:03:13 She offers practical strategies for navigating this digital landscape and fostering meaningful
    0:03:15 connections within our families.
    0:03:18 It’s surprising how often we give our kids orders.
    0:03:19 Do this.
    0:03:20 Don’t do that.
    0:03:25 And in this conversation you’ll learn a better approach that encourages critical thinking,
    0:03:29 empathy, and problem solving skills that works on toddlers and teens.
    0:03:33 I tried to make this episode as practical as possible so while we learn insights from
    0:03:36 other cultures, how do we put them into practice in our culture?
    0:03:40 Michaeline shares insights on how we can create an environment that allows our children to
    0:03:44 take appropriate risks, learn from their mistakes, and grow into confident, capable
    0:03:48 individuals in a world that sometimes pushes back.
    0:03:52 Listening to this episode will give you another perspective on parenting that draws from the
    0:03:55 collective wisdom of cultures around the world.
    0:03:58 As with anything, take what works and ignore the rest.
    0:04:09 It’s time to listen and learn.
    0:04:16 Here in BC, extreme weather and wildfires are a reality and they threaten the places we love.
    0:04:21 The government of BC is working with wildfire experts, communities, and indigenous partners,
    0:04:23 taking action to help lessen risks.
    0:04:26 How can you be wildfire ready?
    0:04:30 Take steps to protect your home and community, make a safety plan,
    0:04:32 and check local bans and alerts.
    0:04:38 Learn more at wildfireready.gov.bc.ca, a message from the government of British Columbia.
    0:04:41 Looking to buy or sell a used vehicle?
    0:04:45 Forget the selection and protection of BCAA Auto Marketplace.
    0:04:47 Try some random guy off the internet.
    0:04:50 Some random guy!
    0:04:52 Yes, zero security, zero peace of mind.
    0:04:54 Some random guy!
    0:04:59 The risk is part of the ride!
    0:05:04 BCAA Auto Marketplace helps you buy and sell vehicles, just like we help you every day.
    0:05:10 Visit bcaa.com/marketplace and avoid some random guy!
    0:05:15 The 100% Canadian beef McDonald’s Western BBQ Quarter Pounder is quite the mouthful.
    0:05:19 So who better to sell it in 30 seconds than a 100% Canadian auctioneer?
    0:05:22 Oh mercy, it’s back!
    0:05:26 100% Canadian beef topped with delicious smoky barbecue sauce and bacon.
    0:05:27 Who wants bacon?
    0:05:29 We got hickory smoked bacon, strips, crispy onions.
    0:05:30 Who wants pickles?
    0:05:35 Not one, but two sizes of processed cheddar cheese, served on a toasted sesame seed bun,
    0:05:40 and it’s sold for a limited time at participating McDonald’s restaurants in Western Canada.
    0:05:46 I want to start with our parenting.
    0:05:49 Have we collectively lost our way as parents?
    0:05:55 Western society has kind of veered off the path, you know, and kind of gone into this valley
    0:05:59 of strange parenting valley where we’ve kind of, yeah, we’ve kind of lost sight of like
    0:06:05 what kids actually need, what the parent-child relationship actually needs to really function.
    0:06:07 What’s different?
    0:06:08 So there’s so many things that are different.
    0:06:14 One anthropologist said that there’s about 40 to 50 things that we do as parents
    0:06:17 that you can’t really find anywhere else except in places that are westernized.
    0:06:24 And then there’s like four or five things that we are really missing that are really key to
    0:06:33 raising a child that you enjoy being with, raising a child that’s helpful and respectful
    0:06:33 and confident.
    0:06:37 I mean, that’s really, if you look at our data, right, in Western society,
    0:06:42 we have this epidemic of children who are anxious, who have kind of lost confidence.
    0:06:46 And then for sure, we have children that like we struggle to get them to help,
    0:06:51 right, and be helpful around the house and kind of work together as a team.
    0:06:55 And so there’s a couple of things that we’re not doing that really support that.
    0:06:57 How did we get here?
    0:07:03 It’s a big question, but it dates back to like probably the 1500s in Europe.
    0:07:10 It actually, one scientist thinks and has this whole theory and book about how it dates back
    0:07:11 to the Catholic Church.
    0:07:13 We could talk about that.
    0:07:18 But in general, what’s happened is we’ve lost the parenting teachers.
    0:07:21 That’s, I think, a really key aspect of it.
    0:07:26 That traditionally, you have a child often very young, you know, in your 20s,
    0:07:32 and your parents or aunt or neighbor would teach you how to raise that baby.
    0:07:36 And then by the time you have your second or third baby, you kind of know, right?
    0:07:41 But now, like me, when I had my daughter basically handed me this baby, sent me home,
    0:07:44 and it was like me by myself.
    0:07:44 Good luck.
    0:07:45 Good luck.
    0:07:45 Exactly.
    0:07:50 My husband always says, like, we took all these birthing classes,
    0:07:52 but he was like, why didn’t we take all these parenting classes?
    0:07:53 Like, now what do we do?
    0:07:54 Now that it’s, you know.
    0:08:00 So that, I think, around 1700s is when that really started to get going,
    0:08:02 losing this kind of the teachers.
    0:08:08 And then parents started turning to the medical industry and parenting experts.
    0:08:11 And you can see the progression of like, what do we do?
    0:08:12 We don’t really know what to do.
    0:08:15 And so parents are hungry for these pamphlets.
    0:08:19 They were pamphlets basically from orphanages that doctors had made
    0:08:23 just to like say, how do you raise like 40 kids, right?
    0:08:28 And they turned into these like parenting manuals and books that were very popular
    0:08:31 because parents stopped really knowing what to do.
    0:08:35 Parenting books today, you can trace all the way back to those pamphlets.
    0:08:36 It’s really incredible.
    0:08:41 And of course, they weren’t the way you raise children in a home, you know, in a family.
    0:08:43 They were for these institutions, basically.
    0:08:47 I think I remember listening to one of your interviews and you mentioned like the number
    0:08:51 when sleepbook is by some dude in the 1800s who didn’t even have kids.
    0:08:51 Yeah.
    0:08:55 He was like a sports writer and he wrote about golf, I think.
    0:08:59 And he was also super into guns and he actually like blew his hand off and stuff.
    0:09:04 And he like, I think he saw like there was like this market for parenting advice.
    0:09:08 And he wrote, yeah, like he was one of the first ones to really write about sleep training,
    0:09:14 which is totally crazy, like around the world, like leaving a baby to cry.
    0:09:18 And it’s a very unique style.
    0:09:22 And he was kind of one of the first people to suggest it and recommend it.
    0:09:28 Can we come back to like the Catholic Church and sort of like we’re not taught how to be parents?
    0:09:34 Is that a byproduct of like all of us working more and living in a busier society or is it?
    0:09:35 The theory is.
    0:09:42 And it’s really fascinating was that before the 1500s, people in Europe lived like people
    0:09:48 ever in the world in these big kind of clans or groups of like family, like big and not like
    0:09:50 all one house, but kind of in the same neighborhood.
    0:09:54 And it was, you know, we was like communal living, right?
    0:10:00 And this is how children were raised for hundreds, thousands of years.
    0:10:02 And these kind of big groups.
    0:10:04 And there’s a lot of data to support that.
    0:10:06 And that’s how Europeans were doing it.
    0:10:10 And then the Catholic Church came along about the 1500s and started having these laws
    0:10:17 to prevent close cousins from marrying and having children, which is totally legitimate,
    0:10:21 like biologically, you don’t want to marry your first cousin and have a child.
    0:10:27 But over time, they started extending it out to like second, third, fourth, fifth, six cousins.
    0:10:29 I mean, you and I are six cousins, right?
    0:10:30 But we’re not related at all.
    0:10:33 And it’s whether this was intentional or not.
    0:10:37 What it did was it broke up this like big family living.
    0:10:40 And right, because you couldn’t marry anymore into these groups.
    0:10:46 And it really like took intergenerational living and squashed it down slowly and slowly
    0:10:49 to what we now think of as like the nuclear family.
    0:10:52 So you go from living in an environment where, you know, as a mom,
    0:10:55 I would have clearly an older sibling.
    0:10:57 I’d have an aunt and uncle.
    0:10:58 I’d have a cousin.
    0:11:00 I’d have this, all these people that are like helping me.
    0:11:05 And I would be watching as I grew up, other children being raised, right?
    0:11:07 That’s a big element too, right?
    0:11:10 Like by the time I was 16, I probably had seen like five children
    0:11:13 get raised from somebody in this big group, right?
    0:11:14 And so that’s, I mean, if you look around the world,
    0:11:16 that’s how people learned a parent.
    0:11:21 That’s how this skill, the craft is like passed down through watching.
    0:11:25 And then when you have your own teaching, but if you live,
    0:11:32 if you squash down the family into like mother and father only, and you’re right,
    0:11:35 one parent is out of the home a lot or two parents are out of the home,
    0:11:40 then you’ve no longer have, you no longer watch people being raised.
    0:11:43 Maybe you get one kid, one sibling, right?
    0:11:45 And then you don’t have any helpers.
    0:11:51 And this professor at Harvard has like tracked down the rise of the nuclear family,
    0:11:58 correlates with how long ago the Catholic church was brought into a society.
    0:12:02 And so Europe is the longest and you see this very strong nuclear family
    0:12:06 and then other parts of the world, you know, it’s been introduced more recently
    0:12:11 and you still see, you know, intergenerational living and these big family units.
    0:12:14 But it’s not the only factor, I think.
    0:12:18 Lots of other things have come about to kind of support the creation of the nuclear family
    0:12:25 and the reduction of the people in our lives raising children.
    0:12:28 And we have the saying, right, like it takes a village to raise kids,
    0:12:32 but it sounds like we don’t actually create the village anymore.
    0:12:35 That’s right. And it’s funny because I always say like, it doesn’t take a village.
    0:12:41 It takes like five extra people, like, you know, because if you look in some societies,
    0:12:44 so they’re called aloe parents, this is what scientists call them.
    0:12:49 They’re people and children’s lives that are just as close to the child
    0:12:51 and just as important to the child as the mother and the father.
    0:12:53 They’re other parents, basically.
    0:13:00 And if you look in most societies, children have like four or five of these, very close.
    0:13:03 In some societies, they have like 12 or 15, but they’re not very close.
    0:13:07 But there’s amazing studies in some societies where like a baby,
    0:13:11 they’ll track like how many times a baby is passed around to a different person
    0:13:13 in like an hour or two hours.
    0:13:19 And it’s like something like 10 or 11 people in like an hour, like just regularly.
    0:13:22 Think about that, like when you had your kids, like if you had 10 people,
    0:13:26 like constantly helping you hold the baby, feed the baby,
    0:13:28 like how much different your life would have been.
    0:13:30 I’d have a lot more kids.
    0:13:35 You’d have a lot more kids and you’d have a lot like less stress, right?
    0:13:42 When I was traveling with Rosie, my little girl, we were in Tanzania
    0:13:47 and we were with these women raising, they had the little ones,
    0:13:49 the babies and the toddlers, because the other ones were at school.
    0:13:54 And they were, it was a group of like six women and they would spend all day long together,
    0:13:59 helping each other with the baby, the toddlers and the babies like all day long.
    0:14:01 I’m talking like 10, 12 hours a day.
    0:14:03 It was amazing, right?
    0:14:06 From the standpoint of like social support, right?
    0:14:12 And then I got back home and it was just me, like in this condo with a kid.
    0:14:15 And it was, it was, the difference was so stark.
    0:14:20 So before we sort of cover how we undo all of this, like what did you learn?
    0:14:25 You traveled around the world, you found four different tribes that all taught
    0:14:27 in it in a sort of different way.
    0:14:29 What are the key lessons that came out of that?
    0:14:30 Why is that important?
    0:14:38 I’m a reporter and I spent 13, 12 years at NPR covering mostly viruses
    0:14:39 and they would send me around the world.
    0:14:43 And I started to notice while I was traveling that
    0:14:46 parents didn’t seem to have the same struggles as we did.
    0:14:49 You know, there were clearly struggles, there’s struggles everywhere.
    0:14:50 I don’t want to romanticize it.
    0:14:55 But what was really surprising to me and why I went on this journey to like
    0:15:01 learn this other way of parenting was when I came back to San Francisco and I tried some of these
    0:15:04 techniques and methods, because that’s really what they are.
    0:15:09 They worked like amazing on my little girl in urban San Francisco.
    0:15:15 Like it surprised, it really surprised me how quickly our relationship improved.
    0:15:18 She was like two at the time when I really started to try this.
    0:15:20 So what are some of these tips?
    0:15:22 I mean, you summed it up with an acronym of team.
    0:15:22 Yes.
    0:15:27 But let’s make them, what is team and like let’s make them practical for people.
    0:15:32 So the first thing T is like this idea of like together that humans,
    0:15:35 homo sapiens are these incredibly social creatures.
    0:15:39 That’s what separates us from like other homo species is that we are social.
    0:15:43 And not only that we want to be with people, we want to help people.
    0:15:46 And children are born wanting to help.
    0:15:48 Everyone knows this in our society.
    0:15:55 And so the first thing is really is let your children help you even when they can’t do it,
    0:15:55 right?
    0:15:59 So we have this, there’s there’s studies that show this, like American parents
    0:16:03 are asked this question of like, you’re doing the laundry and your little two-year-old comes over
    0:16:06 and starts throwing the clothes like all over the place.
    0:16:07 Like what do you do?
    0:16:12 And the American mom says something, the European American mom says something like,
    0:16:16 I get mad because she’s making a mess and I tell her to go play, right?
    0:16:18 Or I tell her to go watch cartoons, right?
    0:16:20 And then they ask the same question to a Maya mom.
    0:16:25 And the Maya mom say something like, I get kind of mad because she’s making a mess, right?
    0:16:26 Starts off kind of similar.
    0:16:30 And then she says, but I’m really excited that she wants to help with the laundry.
    0:16:34 And so the Maya mom sees the little toddler’s mess
    0:16:38 as this like sign of interest in helping, right?
    0:16:40 It’s a very different view of the child, right?
    0:16:42 It’s a very pro-social view.
    0:16:45 And then she says, so I start teaching her how to do the laundry.
    0:16:51 And one of the moms even says that the little girl’s like sometimes balls up the laundry.
    0:16:54 And she says, I can see she’s trying to fold it, right?
    0:16:57 With where I would just say she’s balling up the laundry and making a ball, right?
    0:17:01 The other view is that she wants to help.
    0:17:06 That we are these social creatures and we have this huge desire to help
    0:17:08 starting off just from really from day one.
    0:17:15 In many, many parts of the world, parents immediately say, yes, come help.
    0:17:19 And keep the child there and have the child at least watch
    0:17:21 or give the child a very small task to do.
    0:17:26 And so that’s really the T never turned down a child’s request to help.
    0:17:30 Like when I was getting ready for this podcast, like Rosie wanted to do my hair.
    0:17:31 She wanted to do my makeup.
    0:17:37 And it was like, yes, my job as a parent, I see is to find a way that she can actually help.
    0:17:40 And the Maya families have some saying about it.
    0:17:44 Like it’s your job to find the purpose in the child’s life,
    0:17:48 to find the opportunities for the child to have purpose.
    0:17:49 Don’t push them away.
    0:17:53 Because if you keep pushing them away by the time they’re seven or eight
    0:17:56 and they actually can start kind of helping, they’re not stupid.
    0:17:57 They’re like, that’s not my job.
    0:18:01 You know, like you’ve pushed me away for six years.
    0:18:03 Why would I help you now?
    0:18:07 And there’s data that show that that’s kind of what happens.
    0:18:12 That kids, they learn their place in the home is my place playing
    0:18:17 and watching video games, watching TV is my place like helping with dinner,
    0:18:19 helping with the laundry, helping.
    0:18:21 And unlearning that is hard.
    0:18:23 I don’t think it’s as hard as we think it is.
    0:18:28 But again, I think you have to change your view of the child, right?
    0:18:30 You have to instead of just saying, oh, he doesn’t want to help.
    0:18:32 He never helps.
    0:18:33 He’s never going to help.
    0:18:34 Don’t ask, right?
    0:18:35 Can you imagine, right?
    0:18:37 If Sony said that at work, don’t ask him.
    0:18:39 He’s never, he’s no good at this.
    0:18:41 Like how bad that would make you feel, right?
    0:18:46 So it’s like actually starting to see there’s a little flame inside the child
    0:18:48 that actually really does want to help.
    0:18:50 I think you can turn it around.
    0:18:52 Oh, well, let’s say E for encourage.
    0:18:53 Oh, E.
    0:18:57 So E is this idea that like a lot of the Western relationship,
    0:18:59 parent-child relationship is based on control.
    0:19:02 That the parent tells the child what to do
    0:19:05 and they’re supposed to listen because they’re the child.
    0:19:06 And you’re the authority.
    0:19:07 And you’re the authority, right?
    0:19:08 And that’s kind of just set.
    0:19:09 But E is a different way.
    0:19:14 E is we’re going to encourage children to do the right thing.
    0:19:19 And really we’re going to get them to figure out what the right thing is themselves.
    0:19:23 And every time you try to control a child, you create conflict.
    0:19:27 You risk creating conflict because either the child’s going to get mad
    0:19:29 because they don’t want to be told what to do.
    0:19:33 Or you’re going to get mad because they’re not doing it, right?
    0:19:37 And so another way of doing it is like, okay, I’m going to guide you.
    0:19:39 I’m going to encourage you to do the right thing.
    0:19:40 And you know what?
    0:19:43 It’s okay if like nine, sometimes you don’t.
    0:19:45 Because this is the long game.
    0:19:49 But I’m going to use all these tools I have in my toolbox to get you
    0:19:54 to learn to figure out what the right thing is, to learn to think.
    0:19:58 When I went traveling, I knew there were like tools that cultures use
    0:20:01 to get children to figure things out and instead of just telling them what to do.
    0:20:04 But I had no clue how many there were.
    0:20:05 There’s so many.
    0:20:06 It’s amazing.
    0:20:09 And they’re very subtle, but they can really change like the whole dynamic
    0:20:11 between the parent and the child.
    0:20:14 What the E does, the encouragement is it gets the child to feel like,
    0:20:16 I’m making decisions for myself.
    0:20:18 I’m in charge of my life.
    0:20:22 You know, my mom has confidence that I can do it.
    0:20:27 And so there’s this ease that starts to happen with the parent and the child.
    0:20:28 So what are those tools?
    0:20:33 So one of the amazing tools with smaller children is stories.
    0:20:38 Like we are, there’s good evidence that humans are really made to learn through story.
    0:20:42 And when we were actually with the Hadzabe, this hunter gatherer community in Tanzania,
    0:20:44 they were using stories to teach me the rules.
    0:20:47 So when we got to the camp, they didn’t just list off, you know,
    0:20:50 very like American be like, here are the rules.
    0:20:53 And like, you know, like, this is what you can do and you can’t do.
    0:20:55 No, around the fire, they would tell these stories.
    0:20:59 And some of them were about where you went to the bathroom and they would say things like,
    0:21:01 this isn’t about you though.
    0:21:04 Like this, you know, is clearly about me.
    0:21:08 You know, are they, they sing songs that had stories in them for children?
    0:21:14 And so this is a way of like putting the ideas into the child’s mind in a way that,
    0:21:19 one, they can really understand because they don’t let young children don’t understand logic.
    0:21:23 But also like a way of like, again, they’re going to figure it out through these stories.
    0:21:25 So that’s a huge one for younger children.
    0:21:30 As a, even for your children, there’s all these ways of like asking questions,
    0:21:34 telling them consequences, kind of these little puzzles that you set up for them.
    0:21:38 Another big one is the environment, like just setting up the environment so
    0:21:43 they can’t get themselves in trouble, or they’re less likely to.
    0:21:46 Right. So, I mean, the list goes on and on.
    0:21:49 I mean, there’s some beautiful examples, like when we were up in the Arctic,
    0:21:52 Rosie was kind of like throwing these rocks up in the air like this.
    0:21:56 And the little nine-year-old, Rosie was three at the time and the little nine-year-old comes
    0:21:58 over and says, you’re going to hurt somebody with those rocks.
    0:22:03 And Rosie kind of sat there and like looked and then dropped the rocks.
    0:22:07 And the nine-year-old walked away, like it wasn’t a…
    0:22:09 No, and that’s what the parents do.
    0:22:12 It’s like, I mean, I think if Rosie was throwing rocks at kids,
    0:22:13 like then like, it would be different.
    0:22:17 But it’s like, if you really stop and look at most of the situations, you don’t need.
    0:22:22 And one of the stories that would probably resonate with people you told in the book is
    0:22:25 how Rosie was keeping the fridge door open.
    0:22:30 Yes. So when I first traveled up to the Arctic, the moms would tell me these stories,
    0:22:35 like to get kids to wear their hats in the winter because they would get frostbite on their ears.
    0:22:39 And they would tell them that like, if they didn’t, like that their heads would get chopped off
    0:22:44 and the Northern lights would use their heads as soccer balls, all these very kind of scary stories.
    0:22:46 And I was like, no, I’m never doing that.
    0:22:49 And so that’s one of the things readers write into me about,
    0:22:51 like one of the things are like, I could never do this, you know?
    0:22:56 And then when I got back, Rosie had the refrigerator door open,
    0:23:00 I was sitting there, close the refrigerator door, you know, just kind of nagging her,
    0:23:04 which is the big tool we use over and over again.
    0:23:09 And then I was like trying logic, you know, the electricity, I was very frustrated with her.
    0:23:13 And then I turned to her and I said, there’s a monster in that refrigerator.
    0:23:16 And when he warms up, he’s coming, oh my gosh, she’s coming out.
    0:23:18 And I kind of made it very dramatic and kind of fun.
    0:23:21 And like these stories are often kind of a wink in the eye.
    0:23:23 Like the kid kind of knows it’s a story.
    0:23:28 And she like slammed the refrigerator door and was like, looked at me and she was like,
    0:23:32 tell me more, mama, tell me more about this monster.
    0:23:36 And she was, I think three and three and a half at the time, three.
    0:23:40 And it like changed our whole relationship.
    0:23:44 We just started using stories for everything because the way we could communicate with her,
    0:23:47 like we weren’t communicating with her otherwise.
    0:23:49 Oh, we had, we had so many stories.
    0:23:53 And like when she’s, now she’s eight and like around six or seven,
    0:23:56 she kind of knew the stories were, were fake.
    0:23:58 And she kind of didn’t want to hear them for a while.
    0:24:03 And then she wanted to again, like it was like, because even as an adult, you like stories.
    0:24:06 I mean, we still use stories as a society, right?
    0:24:06 Yeah, absolutely.
    0:24:07 We use them as warnings.
    0:24:09 We use them as fairy tales.
    0:24:12 We use them as, I mean, we use them as entertainment, right?
    0:24:16 Like one of the scientists I talked to, because again, parents are very,
    0:24:19 like I was like, this is too scary, you know.
    0:24:23 But then one of the scientists I was talking to said, yeah, but look at a Disney movie.
    0:24:25 Like it’s way scarier.
    0:24:28 Like, you know, then, you know, because also I’m, I’m there.
    0:24:31 I can see the point is not to scare her to death.
    0:24:32 It’s to communicate.
    0:24:34 Parenting is about transmitting values.
    0:24:38 Is there a difference between encouraging and sort of praising?
    0:24:42 Because we seem really good at praising kids.
    0:24:44 It’s like, oh wow, you picked the green pen.
    0:24:45 Like you’re amazing.
    0:24:47 My child’s a genius, you know.
    0:24:52 So praising is a really interesting topic that’s very unique in Western society.
    0:24:57 You don’t, like in my entire travels, I’ve never seen a parent praise a child.
    0:24:59 Like it’s not necessary.
    0:25:02 Is it more subtle or they just don’t do it at all?
    0:25:04 I think that there is some that’s more subtle.
    0:25:06 Like you think the parents not doing anything,
    0:25:09 but then you look and there is like these subtle signals that are happening,
    0:25:13 which also speaks to the fact that we could be a lot more subtle with children, you know.
    0:25:14 Like a smile.
    0:25:17 Yeah, or like a pat on the shoulder.
    0:25:21 Or when one of the moms said I would hug the child, you know, to thank them.
    0:25:25 But praise really just came about in the last like 30 years.
    0:25:30 Like I’m 47 and like my mom was really into praise and my dad wasn’t.
    0:25:33 So I’m kind of right at the generation where the praise kind of,
    0:25:36 and there’s this whole backstory to it about why it happened.
    0:25:38 But praise is a tricky beast.
    0:25:42 Praise can motivate children, but it can also demotivate.
    0:25:47 It’s like depends on how it’s done, what context it is, the child.
    0:25:50 Does the praise actually kind of fit with what you’re doing?
    0:25:54 And I mean, we have the sense that all praise is good and it’s not.
    0:25:57 I tell parents like you can just stop.
    0:26:00 Before we get to autonomy, let’s double click on that.
    0:26:02 What’s the difference between good praise and bad praise?
    0:26:05 And I mean, I don’t think psychologists know.
    0:26:07 And I think that’s one of the problems.
    0:26:09 I think this over the top praise that you’re talking about,
    0:26:11 I don’t think kids know it’s fake.
    0:26:13 And in some ways it’s manipulative.
    0:26:14 I think the problem is that we don’t know.
    0:26:19 We don’t know how much praise helps kids because it’s an experiment.
    0:26:20 It’s brand new.
    0:26:23 How do we get in this experiment?
    0:26:25 Maybe it was the 80s.
    0:26:28 There was this whole push from the California government.
    0:26:34 There was this idea that like the reason why kids started to use drugs
    0:26:38 and misbehaviors because they had poor self-esteem
    0:26:43 and that the way to help kids was to praise them.
    0:26:44 That gives them good self-esteem.
    0:26:46 But the data don’t support it at all.
    0:26:47 There was no data.
    0:26:50 It’s just again like these myths that kind of bubble up.
    0:26:52 But you don’t need to do it.
    0:26:54 I mean, I think I come from a privileged position in the sense
    0:26:58 that like I’ve seen many, many families not praise children
    0:27:02 and like the kids are like amazing
    0:27:04 and have enormous amounts of confidence and self-esteem.
    0:27:06 So it’s like it’s just not required.
    0:27:11 I think what’s more important and what motivates kids
    0:27:13 and there’s a lot of data to support this,
    0:27:18 what motivates kids is having them actually contribute to your life.
    0:27:24 Having them be part of your life and contribute in it.
    0:27:28 I mean, you know as a person who works that you feel good
    0:27:32 and motivated when you help and you do something
    0:27:33 and you accomplish something.
    0:27:36 And that, I mean, there’s tons of data and psychology to support.
    0:27:38 That’s what motivates kids.
    0:27:42 Not when somebody goes on and on about, oh my God, amazing.
    0:27:44 So just to orient us where we are,
    0:27:46 you have the acronym team togetherness
    0:27:48 and we’ve talked about encouraging.
    0:27:50 And the next one is autonomy.
    0:27:51 Yeah, this one’s huge.
    0:27:55 If you could just change like one thing in your child’s life,
    0:27:59 that would be to give them two hours an hour a week of autonomy.
    0:28:02 If you look at hunter-gatherer communities around the world.
    0:28:06 So humans spent 200,000 years as hunter-gatherers.
    0:28:07 That’s where our brains evolved.
    0:28:10 That’s where we evolved in this context.
    0:28:14 And so looking at hunter-gatherer communities around the world
    0:28:18 offers some clues kind of to how the conditions in which we involved in.
    0:28:21 It doesn’t say it exactly, but kind of gives you some clues.
    0:28:25 And if you look in lots of different continents,
    0:28:29 children have enormous amounts of autonomy in these communities,
    0:28:33 which implies that’s how the child evolved, right?
    0:28:35 The child’s brain evolved.
    0:28:36 We used to have a lot of autonomy.
    0:28:38 I mean, I was walking to school at seven.
    0:28:40 I was walking like two kilometers almost.
    0:28:41 Exactly.
    0:28:43 Like it wasn’t that long ago in Western society that we had it.
    0:28:48 The evolutionary perspective kind of says that like we need it, you know?
    0:28:51 And then there’s this data that shows that kids that don’t have it
    0:28:53 are more anxious, more prone to depression.
    0:28:57 Like so when there’s just tons of data that’s like we need autonomy.
    0:28:58 Children need autonomy.
    0:29:02 But I think parents don’t know what it looks like.
    0:29:04 So what does autonomy look like?
    0:29:08 The best way to figure it out is to put your stock watch on
    0:29:12 where you when you’re with a child in the morning at the grocery store just
    0:29:16 somewhere and give no commands to the child.
    0:29:19 No verbal instructions to the child for 20 minutes.
    0:29:22 And see if you can do it.
    0:29:24 I mean, because scientists have done this analysis.
    0:29:26 I did this analysis like in different communities
    0:29:29 and like in places where children have autonomy.
    0:29:35 Parents give children like two to three verbal inputs in an hour.
    0:29:36 And I’ve done it myself.
    0:29:37 I’ve done it with parents in San Francisco.
    0:29:41 And we were talking about like 120 verbal inputs per hour.
    0:29:42 Just a constant stream.
    0:29:43 Do this.
    0:29:44 Do that.
    0:29:45 Don’t do this.
    0:29:45 Say this.
    0:29:46 Say thank you.
    0:29:51 Like, I mean, you can just you can see it like it’s just a constant praise
    0:29:54 because it is a form of like kind of manipulating their behavior, right?
    0:29:57 Which creates a power struggle in some ways.
    0:30:00 Oh, for some children or some children appear fine with it, right?
    0:30:02 They just kind of go.
    0:30:03 I call them like turtles.
    0:30:06 They kind of go down into a little shell and kind of, okay, you know.
    0:30:08 And some children, it’s horrible.
    0:30:12 When I was writing the book and Rosie and I’s relationship was really changing.
    0:30:16 If we were in a hard time and we were arguing a lot, I would do this.
    0:30:20 I put my stock watch on and my phone and I would say, okay, I’m going to be quiet.
    0:30:20 I’m not going to.
    0:30:24 I can give her physical physical.
    0:30:25 Input, right?
    0:30:28 Like you’re talking about more subtle, like some eye movement.
    0:30:30 Some I can move her.
    0:30:33 You know, if she’s doing something bad, I can take something, right?
    0:30:36 I can do physical things, but I can’t know talking to her.
    0:30:39 And it was amazing change.
    0:30:43 Like how quickly that improves our relationship.
    0:30:44 What can I do?
    0:30:47 I have two teenagers to encourage autonomy.
    0:30:48 Like, what does that look like?
    0:30:50 What depends on where they’re at?
    0:30:52 How much they’re already doing on their own?
    0:30:56 Well, I used to like send them to grocery stores on their own when they were like seven and eight.
    0:31:01 And, you know, I got a lot of pushback for that from society.
    0:31:05 I used to let them walk to school and I get a lot of pushback from society.
    0:31:08 One aside from this, it’s so cute.
    0:31:14 My youngest came home one day and I had asked him to get a red pepper and he got a green pepper.
    0:31:15 And I was like, we’ll go back to the store.
    0:31:18 And he was like, I think eight or nine at the time.
    0:31:22 And he goes back to the store and then he comes home and I was like, well,
    0:31:23 what was the difference in price?
    0:31:24 And he’s like, huh?
    0:31:26 And I was like, what did you do?
    0:31:29 He’s like, I put the green pepper on the shelf and I took the red pepper.
    0:31:32 Because why would it be any different?
    0:31:34 He’s like, I paid for it the first time.
    0:31:36 You’re right, just a pepper.
    0:31:36 Exactly why.
    0:31:37 This is so cute.
    0:31:38 This is a funny story.
    0:31:43 It seems like society, I guess, has maybe it’s just my feeling.
    0:31:46 I guess it’s like, it’s pushback on those things.
    0:31:48 Oh, it’s not just your feeling.
    0:31:50 There’s huge data on this.
    0:31:54 And David Lancy, one of the anthropologists that I cite a lot in the book,
    0:31:58 calls it like the shrink-wrapping of kids children.
    0:32:00 Where we’re just so afraid of their safety.
    0:32:03 I’m not afraid of their safety as much as afraid of other parents.
    0:32:04 Right, right.
    0:32:07 The police showing up at my door and like taking away my kids.
    0:32:09 Because I sent them on an errand.
    0:32:13 Society as a whole is afraid of their safety.
    0:32:14 And there are parents that are.
    0:32:18 Like, I think we’re kind of probably in the minority right now.
    0:32:21 But like, so Rosie’s eight, she started going to the store.
    0:32:23 We live in that right now, a 6,000 person town.
    0:32:25 You know, America, I don’t know about Canada,
    0:32:28 but I bet it’s the same as the safest it’s ever been.
    0:32:29 Like, then when we were kids.
    0:32:33 And she’s gotten pulled over by the cops twice.
    0:32:35 One time they brought her home in the back of the car.
    0:32:37 So, I mean, we’ve gotten pushed.
    0:32:39 There’s absolutely a huge pushback.
    0:32:42 I’ve had to just be like, this is what we value.
    0:32:45 You know, my husband and I sat down, we like, what do we do?
    0:32:48 You know, we’ve we’ve thought about going to the police.
    0:32:50 So we dealt with the police and we told them like.
    0:32:54 And the police actually admitted like it’s she’s fine, you know.
    0:32:58 But other parents are calling us.
    0:33:00 It’s the neighbors that we’re calling, you know.
    0:33:02 And so we’ve also made her look better.
    0:33:05 Like the optics of it, we’ve like, she’s on the bike now.
    0:33:07 And, you know, she looks less.
    0:33:10 She looks more like she’s in charge.
    0:33:13 We also, there’s a great, there’s a great organization called Let Grow.
    0:33:14 I don’t know if you know about it.
    0:33:19 But it’s, it’s all about empowering parents and children to give their,
    0:33:20 to have more autonomy.
    0:33:24 And they have these little licenses that you can print out that say like,
    0:33:27 I’m Rosie Ducleff and my parents allow me to go to these places.
    0:33:30 And I’m allowed to talk to strangers.
    0:33:32 I’m talking to you right now.
    0:33:36 And like, so we printed that out for her and, but it’s hard, but it’s worth it.
    0:33:39 Well, I don’t know, like, what can I do?
    0:33:41 Like, okay, so they’re 13.
    0:33:43 One 13, one’s 14.
    0:33:46 I mean, autonomy is also like, what does the child want to do?
    0:33:52 That they can’t because they feel afraid or they feel like they, you know,
    0:33:54 they can’t do it because of parents or society or whatever.
    0:33:57 And then helping them kind of achieve those goals.
    0:34:00 So I guess, like maybe an example, like what comes to mind with,
    0:34:07 with my kids would be like, do I give complete autonomy, which is they come home,
    0:34:10 you know, this is dinner time, you help out with chores and you’re,
    0:34:13 you contribute to the household, but I don’t talk to them about homework.
    0:34:15 I don’t talk to them about schoolwork.
    0:34:18 Or do I provide like a structure around this where it’s like,
    0:34:22 let’s go over what’s due tomorrow and I don’t tell them what to do.
    0:34:27 You know, like, how do you think about that between structure and autonomy?
    0:34:30 I think at 13 and 14, I would not help them structure their time.
    0:34:34 But if they, if they don’t have the ability, do you do see what I’m saying?
    0:34:36 If they’re capable of doing it, let them do it.
    0:34:39 And if they’re not, give the structure, but not the instructions.
    0:34:42 Give the encouragement, right?
    0:34:44 Like go back to the E.
    0:34:45 So what would that look like?
    0:34:47 I’m happy exposing all my appropriate things.
    0:34:51 I mean, I’m just, it’s really fascinating, right?
    0:34:54 Because like we have this sense in our, this is another weird thing we do,
    0:34:57 is that like we think, okay, they’re at this age, they need to do this.
    0:35:01 You know, and I would ask parents like, well, what, what age can they use a knife?
    0:35:04 And the parent would just be like, it depends on the child.
    0:35:04 Yeah.
    0:35:08 You know, and so I, that’s why I’m like, kind of like, well, where are they with it?
    0:35:08 Right?
    0:35:11 Because one of the, one of the publishers said to me, well, I,
    0:35:15 my, my child’s 11 and I opened up the back door and said, you’re free now.
    0:35:18 You have autonomy now.
    0:35:20 And she just stood there.
    0:35:21 Yes, exactly.
    0:35:23 I’m telling you, like chickens will just stand there too.
    0:35:27 If they’ve been inside a cage for like, you know, she was like, but she didn’t want autonomy.
    0:35:29 And I was like, well, she, she’s 11.
    0:35:30 She’s never had that.
    0:35:34 So she can’t just like, you can’t just tell her to go run and play outside
    0:35:36 after 11 years of not, right?
    0:35:38 So that’s why I’m asking you, like, where are they?
    0:35:41 But I think the idea is like, don’t do things for them.
    0:35:48 Like ever, like ever, you don’t need to, especially 13, 14, it’s like,
    0:35:53 like if they can’t manage their time or they can’t figure out, okay, what’s next?
    0:35:55 Because that’s, that’s a skill.
    0:35:58 There’s actually a study looking at this in Guadalajara.
    0:36:00 It’s a fascinating study.
    0:36:05 It looks at parents that are more westernized who manage the child’s time.
    0:36:05 Okay.
    0:36:06 Now you’re doing dinner.
    0:36:07 Now you’re doing chores.
    0:36:08 Now you’re doing this.
    0:36:09 Now you’re doing that.
    0:36:14 And then more, a little more like team parenting, like my book, like where the,
    0:36:16 the children manage their own time.
    0:36:19 And the, in the study, they, these are like nine, 10 year olds in the study.
    0:36:24 They show that the kids that are in that kind of more flexible environment take initiation.
    0:36:26 They start their homework themselves.
    0:36:28 They like, but it takes time.
    0:36:29 That’s a, that’s a skill.
    0:36:32 I mean, that’s one of the things that I tell parents, like,
    0:36:37 when you’re managing your child, when you’re kind of their personal assistant
    0:36:40 and you’re managing their time, like blocked hour by hour,
    0:36:43 you’re kind of doing them a disservice because you’re, they’re not
    0:36:47 able to learn this skill of like, what do I do next?
    0:36:48 Yeah.
    0:36:51 And you know, like at your job, like my job, I sit down in the morning, it’s like, well,
    0:36:52 what do I do?
    0:36:56 That’s a big part of the job is like, okay, I got to interview this person.
    0:36:57 I got to send this email.
    0:36:58 I got to read this part.
    0:36:58 I got to write this part.
    0:37:01 Right. And that’s the skill that takes time.
    0:37:04 And so I would start, if I, if I don’t know, I’m not trying to say your child doesn’t have that.
    0:37:08 But if, if, if I felt like my child didn’t have that, I would start trying to teach,
    0:37:13 like teach them that, you know, like what do you, what do you have on your plate tonight?
    0:37:13 Yeah.
    0:37:14 You know, what would you do next?
    0:37:15 Questions.
    0:37:16 Questions, exactly.
    0:37:19 Like, you know, that was one of my favorite part, questions on command.
    0:37:22 So we actually now have a little school.
    0:37:26 And so I love it because I get to say that I tried these things on lots of kids, you know,
    0:37:30 like as time has gone on, I got more confident because I’ve tried them on all these kids at
    0:37:31 this little school we have.
    0:37:34 And like the questions work with every kid.
    0:37:38 And the questions are designed to get them to think about the next step instead of you
    0:37:42 giving the instruction and telling them what to do.
    0:37:45 That’s right. We have one little boy who, he’s 11.
    0:37:51 He’s very smart, great reader, great math, but he cannot do anything that I don’t tell him
    0:37:52 kind of the next step.
    0:37:58 Like we were just making Valentine’s Day cards and then hanging him on a tree for the teacher.
    0:38:01 And he was literally staying there with the two pieces of yarn and was like, what do I do next?
    0:38:04 And I was like, what do you think you do next?
    0:38:09 And it took about five minutes for him to figure out that he needs to tie it and put it on the
    0:38:09 tree.
    0:38:12 And you just let him sort of struggle with it.
    0:38:12 Yeah.
    0:38:12 Yeah.
    0:38:14 That’s really interesting.
    0:38:17 And the M, I guess, we’ve sort of talked about this a little bit.
    0:38:19 Yeah, it kind of fits all together.
    0:38:22 The M is like minimal interference.
    0:38:24 That’s kind of a limit what we’re getting at.
    0:38:29 It’s like, we think that good parenting, I thought the good parenting was maximal interference.
    0:38:32 Like I was always trying to figure out, okay, what do I tell Rosie next?
    0:38:35 Okay, I’m always looking out for like the next thing to say.
    0:38:38 And like one parent even told me, I forgot who it was, but she told me,
    0:38:44 sometimes I have to really hold myself back from interfering to see if they can do it.
    0:38:49 You know, there’s this like magic moment where you want to jump in and that’s when they were like,
    0:38:52 but if they need your help, you jump in.
    0:38:53 How do we learn that as parents?
    0:38:58 Because you’ve done it for so long and then the temptation is obviously.
    0:39:02 I tell parents, and this is kind of how I started it, was I would take Rosie to the beach.
    0:39:06 I would take her to an environment where she had a lot of autonomy.
    0:39:08 I know the beach doesn’t sound like that to a lot of parents, but like,
    0:39:11 I had taught her like not to go into the water.
    0:39:15 And then I would just sit there like hours and I would read and work and just let her live.
    0:39:19 And that was how I practiced it.
    0:39:23 You get the confidence that like, oh, the kid, I don’t need to interfere so much.
    0:39:27 And when I don’t interfere, she does, she’s so happy and she’s, you know,
    0:39:29 I can work and I can do my life.
    0:39:31 And like, I think you just have to try it.
    0:39:36 And she didn’t want to play with you and she didn’t want to play with me.
    0:39:40 I mean, especially if there was like, not other kids around or something.
    0:39:44 I would just say, no, I’m reading right now, you know?
    0:39:48 I mean, that’s another thing is like most societies, parents don’t play with children.
    0:39:49 Yeah.
    0:39:51 Like at all babies a little bit, but.
    0:39:54 Otherwise sort of like figured out, use your imagination, people.
    0:39:57 Yeah, or there’s other kids, a lot of times there’s other kids around.
    0:39:59 And now we’re in a nonstop.
    0:40:01 I feel like I have to entertain you.
    0:40:06 So that is another huge one, huge, huge difference in art.
    0:40:10 This is what I think the most stressful things is like this feeling of what do you
    0:40:11 do with your time with your kids?
    0:40:14 Kids do not need to be entertained.
    0:40:19 They have not been entertained for like hundreds thousands of years, 200,000 years.
    0:40:20 They do not need it.
    0:40:24 Like I say, like you can welcome them into your world and teach them how to be in your world.
    0:40:31 But when they’re in their world, you can be there, tea for together,
    0:40:32 but you don’t have to do anything.
    0:40:41 There’s a lot of differences between the worlds of these tribes and our world.
    0:40:41 Yes.
    0:40:43 Some of those differences are food.
    0:40:45 Yes.
    0:40:46 Technology.
    0:40:48 Well, both of those are changing.
    0:40:48 Culture.
    0:40:50 Culture.
    0:40:54 In terms of women’s roles and whether they work or not.
    0:40:54 Yes.
    0:40:56 And how they contribute.
    0:41:00 How do you think that affected how they’re raising kids?
    0:41:03 Is that specific to that environment?
    0:41:04 How does it affect our environment?
    0:41:05 What’s the same?
    0:41:06 What’s different?
    0:41:11 In the Maya community, in the Inuit community, which is just north of us right now in Canada,
    0:41:16 there was lots of technology and lots of processed foods.
    0:41:17 Interesting.
    0:41:18 Yeah.
    0:41:19 I mean, the Maya community less, but…
    0:41:22 Like they’re eating fruit loops for breakfast sort of thing?
    0:41:23 The Inuit, yes.
    0:41:23 Okay.
    0:41:25 A lot of them, yes, a lot of them.
    0:41:30 But I mean, the Maya, the more there were more traditional foods kind of made every day and
    0:41:34 every day, but they had, you know, the Hadzabe, it was no technology.
    0:41:39 Very little westernized processed food.
    0:41:40 So it was very different.
    0:41:45 So I think the food is an interesting question because like these really control children
    0:41:47 and control us kind of in ways.
    0:41:49 What do you mean by that?
    0:41:53 I think technology is probably easier to talk about.
    0:41:56 I mean, it’s designed to make the child use it, right?
    0:41:57 So it’s not a secret, right?
    0:42:01 To shape the child’s behavior and their activities.
    0:42:06 And so it’s hard to be as a parent to just let that go.
    0:42:08 So how is it impacting these kids, though?
    0:42:14 Like kids today, I mean, my kids are maybe an exception, but most kids long before they
    0:42:19 hit 13, 14 have iPhones or iPads and…
    0:42:20 Right.
    0:42:21 So the Maya is very fascinating.
    0:42:26 The Maya, many of the parents told me that they don’t get a phone until they can pay for it.
    0:42:28 But you can do that when everybody’s in that camp.
    0:42:29 When it’s collective.
    0:42:31 When you’re the only great, you know, when my great-
    0:42:32 So how did you do it?
    0:42:36 You know, well, I just did what my parents did.
    0:42:38 I was like, I don’t care about Johnny down in the street.
    0:42:39 Yes, yes, yes.
    0:42:41 I care about you, but like I feel that pressure.
    0:42:43 And in grade seven, you know, that he was the…
    0:42:46 There’s two kids in his class who didn’t have a phone.
    0:42:48 In grade eight, he was the only one who didn’t have a phone.
    0:42:55 And he feels it because he feels sort of like left out, you know, like these guys or these,
    0:42:59 you know, my classmates are doing something and I’m not, I can’t be a part of it.
    0:43:02 The way that we’ve talked about this inside our house is like,
    0:43:06 okay, going into grade nine, you can have a phone, but you can’t take your phone to school with you.
    0:43:12 And you have to wait at least a year before you have to show me that you can be responsible
    0:43:17 with it before you can have other apps on your phone that aren’t sort of like games, right?
    0:43:22 Like, so before you can have Instagram, my whole path with this is like,
    0:43:24 I’m hoping schools ban phones.
    0:43:25 By the time that like…
    0:43:26 By the time…
    0:43:28 And they probably will.
    0:43:32 Well, Ontario came out yesterday and said they banned phones in all schools
    0:43:36 up until the end of grade 12, which I think is a great idea personally.
    0:43:41 And I’m hoping we get to this place with sort of like Snapchat and social media
    0:43:43 and some of that stuff before he gets there.
    0:43:45 So I’m like all about delaying, right?
    0:43:46 Right.
    0:43:46 I mean, yeah.
    0:43:48 I think that is the word.
    0:43:51 But they’re also like they’re growing up in a world where they have to coexist with technology
    0:43:53 and we know how addictive it is.
    0:43:59 So, you know, all of a sudden you’re 18 and giving them a phone is also probably not the best strategy.
    0:44:04 It’s interesting because all the data show that when they get the phone, it makes them more lonely.
    0:44:04 Yeah.
    0:44:05 It makes them more isolated.
    0:44:10 Well, it’s my conversation with Jonathan that actually totally I was like adamant, no phone.
    0:44:13 I don’t care what the pushback is.
    0:44:16 Like, I’m going to slow roll this as long as I can.
    0:44:19 And he told me every year you can delay it makes a huge difference.
    0:44:19 Absolutely.
    0:44:21 Because they have like a prefrontal cortex, right?
    0:44:22 Yeah.
    0:44:27 The Inuit were really interesting because they have tons of video games, tons of TV.
    0:44:34 Like the grandmother we were with was like she spent like a week out in the land hunting caribou.
    0:44:37 And then she comes back, she’s like, I got so much CSI to catch up on.
    0:44:44 Like there’s this like very like the technology and never like completely squeezed out the other life.
    0:44:46 Right?
    0:44:47 How is that possible?
    0:44:52 Because it’s designed and I say this as, you know, it’s designed to make it effective.
    0:44:53 It’s designed to squeeze it out.
    0:44:54 There’s no doubt.
    0:45:00 And if you have a 16 year old boy or girl and they’re on technology, like how do you limit,
    0:45:02 how do they limit that as parents?
    0:45:07 I mean, I think some of it is like, and I’m not saying that you would know how to do this at all,
    0:45:09 because I don’t want to give that impression.
    0:45:14 But I think delay is absolutely the right word for many reasons.
    0:45:19 But also it’s about making sure that it is like you’re talking about, like it is not.
    0:45:27 The way it works in the brain is it narrows your desires and wants to this one thing.
    0:45:28 That’s what happens over time.
    0:45:30 I mean, you see it with kids, right?
    0:45:34 That it’s like all they do is on their phone, right?
    0:45:35 They do nothing else.
    0:45:39 And I think that to me is like the key.
    0:45:40 And it’s what you’re talking about.
    0:45:46 It’s like having these spaces and time and valuing of other things.
    0:45:49 I mean, we could talk about this for like an hour.
    0:45:52 We can like go on and on about this.
    0:45:55 And I feel like we’ve kind of got to attend it.
    0:45:57 But no, let’s double click on this for a second.
    0:45:59 What are the big points here?
    0:46:01 Because this is something when I talk to other parents,
    0:46:03 it’s a hot topic to talk about.
    0:46:06 When I talk to schools, it’s a hot topic.
    0:46:09 People want to know more about it.
    0:46:14 They also want to know where they can take strides.
    0:46:19 So if parents are listening to this and have a 16-year-old addicted to their phone,
    0:46:22 what are the tangible things they can do in the next one month?
    0:46:26 Or today, the next month, the next three months to sort of like help.
    0:46:27 Okay.
    0:46:28 So here’s how it works.
    0:46:30 And this is what I’m just writing about right now.
    0:46:33 Our brains are these little prediction devices, right?
    0:46:35 And when I walk into an environment,
    0:46:41 my brain does this quick calculation of where am I going to get my rewards in this environment?
    0:46:42 I’m going to maximize the rewards.
    0:46:45 And kids are even more this way because their brains are,
    0:46:48 the prefrontal cortex is less developed.
    0:46:52 If a child walks into the living room and every time they’ve walked into that living room
    0:46:55 for the last like five years of their life,
    0:46:57 they’ve played on the video game, they’ve looked at their phone,
    0:47:02 their brain is just lighting up Legos, firecrackers.
    0:47:04 They’re going to use the phone.
    0:47:06 It’s going to exclude out everything else.
    0:47:10 They’re never going to pick up a book because the phone is designed to do that.
    0:47:16 So the only way you can bring back these other things into their life
    0:47:19 is to create environments where their brain knows they can’t have it.
    0:47:21 You have to.
    0:47:24 So does that mean like a technology free weekend?
    0:47:26 Does it mean like flip it around?
    0:47:30 So that’s like the kind of the desire or like the way we talk about now,
    0:47:33 like Sabbath is and hours where we’re not is the other way around.
    0:47:37 Life is without it and these are the times we have it.
    0:47:38 Oh, interesting.
    0:47:38 Okay.
    0:47:40 Because then your brain relaxes.
    0:47:44 I can’t because again, your brain is just it’s just it’s a prediction device.
    0:47:46 It just is predicting where do I get these things?
    0:47:49 And if it knows, like I never get it.
    0:47:51 If it’s variable reinforcement, then you’re.
    0:47:54 Oh, there’s there’s variable reinforcement.
    0:47:59 It’s just the tip of the iceberg of the of the tools they use to create this.
    0:48:02 No, but I mean, like if you’re like, oh, I can get video games.
    0:48:04 Some days at four, I can get it at some days.
    0:48:10 It’s like, if you move it around as a parent, you create this sort of like.
    0:48:11 I don’t know.
    0:48:13 It’s interesting because you could think of the moving data.
    0:48:14 That’s a very interesting question to me.
    0:48:18 I’ve read both in these books, like you should do it at the same time.
    0:48:21 So if you do it at the same time, the brain will know the brain will know.
    0:48:23 And if you don’t do it at that time, you’ll get like.
    0:48:27 So this is what we currently do and like give me the best practices here
    0:48:29 because I’m making this shit up as I go.
    0:48:31 But it’s like, okay, we do video games.
    0:48:34 It’s like seven, eight, have your homework done.
    0:48:36 I would cut out every day.
    0:48:37 Oh, I can’t.
    0:48:40 Yeah, they learn a lot from video games.
    0:48:42 I mean, I would argue they actually learn a lot from video games.
    0:48:43 Well, I mean, that’s another thing.
    0:48:46 It’s like screens are not screens, right?
    0:48:49 It depends on what they’re actually playing, right?
    0:48:50 But they don’t need it.
    0:48:51 I don’t.
    0:48:52 I don’t.
    0:48:55 Well, you know, there’s there’s an element of your right.
    0:48:56 They don’t need it.
    0:49:00 There’s an element of all their friends are doing it.
    0:49:02 Playing those video games.
    0:49:02 Yeah.
    0:49:03 But I mean, they don’t need every day.
    0:49:08 Oh, God, I think, you know, if you were to survey parents,
    0:49:11 the fact that I give them like eight hours of screen time a week
    0:49:14 is probably on the extremely low end.
    0:49:17 Is eight hours of screen time going to like hurt them in the long run?
    0:49:18 Probably.
    0:49:19 This is what I worry about.
    0:49:23 I mean, I think, again, it depends on what they’re doing.
    0:49:25 Depends on the kid, depends on their reward center.
    0:49:27 There’s all these genetics involved.
    0:49:30 And like, I have this incredibly addictive personality.
    0:49:33 Like, I can get I’m basically addicted to Gmail, right?
    0:49:34 Like the interest on Harris.
    0:49:37 Or like, I can get like, we’ll play Hey, man.
    0:49:38 And I’ll be like, play it again.
    0:49:42 You know, like, so like for me, an hour a day playing videos
    0:49:43 wouldn’t be good.
    0:49:43 OK.
    0:49:46 You know, I think for some kids, it wouldn’t be good.
    0:49:47 Well, I do change what they play.
    0:49:49 So if they’re mean to each other after.
    0:49:50 Yeah, there you go.
    0:49:51 Consistently.
    0:49:52 So we’ve talked about this, right?
    0:49:57 Like we took away a certain video game a while ago because I was like,
    0:49:58 hey, and I warned them, right?
    0:50:01 I’m like, I noticed how you guys interact after you play this.
    0:50:01 I don’t like it.
    0:50:02 Right.
    0:50:03 That’s not what we do.
    0:50:06 And that’s not how we treat anybody, little in our family.
    0:50:07 And then it kept going.
    0:50:09 And I was like, OK, you just can’t play this video game anymore.
    0:50:09 So I think that.
    0:50:12 And then it came back two years later.
    0:50:12 The game.
    0:50:12 Yeah.
    0:50:14 It was like, do you want to try again?
    0:50:15 Like, you know, they’re like, we want to play.
    0:50:18 And I’m like, OK, but you know why we lost it, right?
    0:50:20 Like, so if it has the same impact,
    0:50:22 we’re going to have the same results.
    0:50:24 So I think you said like the key thing here,
    0:50:27 we always talk about time, hours of whatever screen,
    0:50:32 but I think we need new recommendations from AAP,
    0:50:36 from all the societies, because an hour of screen time today
    0:50:38 can be so different, first of all, what you’re doing.
    0:50:39 Oh, totally, yeah.
    0:50:41 And then it’s so different than an hour screen time
    0:50:42 when I was a kid, right?
    0:50:43 It’s just not the same.
    0:50:46 So I think you have to do exactly what you’re saying.
    0:50:49 You have to like, what happens during that hour screen time?
    0:50:50 How does the kid behave?
    0:50:53 What do they behave like afterwards, right?
    0:50:54 Like, how does it make them feel?
    0:50:56 Like, why do we need to do things?
    0:50:59 Why do kids need to do things where they feel worse afterwards?
    0:51:01 Tell me more about this feeling worse.
    0:51:06 Is that like when I try to end it and they won’t let me end it?
    0:51:07 Is it how they treat people?
    0:51:08 Like, what does it mean to feel worse after?
    0:51:09 I think it’s a lot.
    0:51:12 I mean, I think you’re doing exactly what I’m saying.
    0:51:14 It’s like assessing like–
    0:51:16 I’m really just making this stuff up.
    0:51:19 I have no idea what I’m doing.
    0:51:23 I’m just trying to think like, OK, maybe let’s figure this out.
    0:51:26 One thing is that just because the child wants it,
    0:51:28 doesn’t mean it’s actually pleasurable.
    0:51:28 Of course.
    0:51:29 Right?
    0:51:31 And so I think a lot of parents think that–
    0:51:36 oh, they want it so much that they like it, right?
    0:51:37 And that’s just wrong.
    0:51:40 That’s based off like 50-year-old neuroscience.
    0:51:43 So I’m going to push back on this slightly,
    0:51:45 because when I intuitively hear that,
    0:51:49 I think in a different way, which is probably completely wrong,
    0:51:53 but I think something they care about,
    0:51:58 a currency that I can use to manipulate at worst behavior.
    0:51:59 Yes, yes.
    0:52:01 And I think lots of parents think that.
    0:52:03 Or positively reward behavior at best, maybe.
    0:52:06 And so it’s like the one thing in their lives where I’m like,
    0:52:08 OK, I have something that I know they want.
    0:52:09 Yes.
    0:52:10 I think that’s the common.
    0:52:11 That’s very common.
    0:52:13 And I think I felt that way too about it at first.
    0:52:17 But then I was like, is it worth it?
    0:52:18 Go deeper on that.
    0:52:22 Like, OK, so we had like Rosie, maybe like when she was six,
    0:52:25 it was like starting like with Netflix, right?
    0:52:28 Which is insane, right?
    0:52:33 And if you watch it, it makes me feel insane to watch some of it.
    0:52:36 It’s like so fast, and it’s so psychedelic.
    0:52:37 And it’s just like, ah.
    0:52:40 And every night she would get some time.
    0:52:42 And like you say, it was like this currency, right?
    0:52:45 This like reward, this like manipulative device.
    0:52:48 But then at the end of it, she’d be so crazy.
    0:52:51 And every night would be like a struggle and a fight.
    0:52:54 And like she’d be like a different child.
    0:52:56 And it was just like, I don’t think this is worth it.
    0:52:57 I don’t need this.
    0:53:01 I can, I don’t, first of all, I can motivate her in other ways.
    0:53:03 Ways that don’t make her scream at me.
    0:53:04 And ways that don’t feel like this struggle.
    0:53:06 And don’t make her hyper.
    0:53:06 And don’t.
    0:53:09 And it just feels like a waste of her time.
    0:53:13 I think I come at it more from the perspective of it’s not hurting her.
    0:53:16 But actually, she’s going to feel better and have.
    0:53:17 If she does something.
    0:53:18 Yeah.
    0:53:20 And it like life long better.
    0:53:23 You know, because what you’re doing is you’re building habits.
    0:53:23 Oh, totally.
    0:53:24 Right.
    0:53:27 Like when I’m, when I’m bored, when I, when I want to relax
    0:53:30 and I would even question whether it’s relaxing for kids a lot.
    0:53:31 Especially video games.
    0:53:32 I do this.
    0:53:33 Right.
    0:53:34 I could build that habit.
    0:53:36 I feel that having Rosie like that.
    0:53:40 But maybe, maybe, maybe better in her life would be like.
    0:53:43 When I’m bored, I play, I play the piano.
    0:53:47 I read a book and she’s never going to pick those things.
    0:53:49 If she knows the other is available.
    0:53:51 I have one kid who probably reads too much.
    0:53:53 So.
    0:53:54 If that’s even possible.
    0:53:56 I think most kids are not like that.
    0:53:56 Yeah.
    0:53:59 I take away books as like a consequence.
    0:54:02 You know, it’s like, he’s, he’s like, you know.
    0:54:05 Books, like paper books and Kindle.
    0:54:06 Like he’s on the Kindle all the time.
    0:54:08 It’s attached to my account.
    0:54:11 So, hey, I get these crazy Amazon recommendations.
    0:54:14 It’s like, I’m like, man, you don’t know me.
    0:54:16 I’m not worried about AI taking over at all.
    0:54:16 Right.
    0:54:19 Then I open the Kindle and I’m like, oh, now I know where to get it from.
    0:54:22 But like it’s, it’s a currency coming back to technology.
    0:54:24 It’s like, I know something that motivates him.
    0:54:28 I know that, hey, I’m going to, you know, this is a consequence,
    0:54:30 a natural consequence to your behavior.
    0:54:33 And then he’s like, oh, you’re the dad that takes away a reading from his child.
    0:54:38 But that currency to me is more valuable than like watching Netflix.
    0:54:41 Does it matter if they’re, if it’s sort of like the same thing,
    0:54:44 if they’re reading a book about the same show they’d be watching, do you think?
    0:54:48 Or I mean, I think it just, again, it depends on what you value.
    0:54:48 What do you think?
    0:54:52 Well, for a while, Rosie was kind of addicted to audiobooks.
    0:54:53 Okay.
    0:54:56 Like hours and hours and hours, like six, seven hours on the weekends,
    0:54:58 you know, of just listening.
    0:55:00 And to some parents, that would be like amazing.
    0:55:03 And I mean, I think that’s better than watching cartoons
    0:55:05 in the sense that like she learned narrative structure.
    0:55:08 She learned an incredible vocabulary, right?
    0:55:11 Like, like, so that’s what I’m saying, like I had to like figure out,
    0:55:14 but then it was, I could see it was like squeezing out other things.
    0:55:16 And it was like creating conflict, right?
    0:55:17 Like, so it’s like, what do I value?
    0:55:19 So it’s what it takes over.
    0:55:21 So this value thing is super interesting because it’s,
    0:55:26 it makes me wonder if a lot of our parenting is driven by like,
    0:55:29 we’re trying to succeed through our children,
    0:55:32 instead of putting our children in a position where they can succeed.
    0:55:33 I think that we don’t-
    0:55:34 It’s like, oh, you get into Yale.
    0:55:36 That’s my success as much as your success.
    0:55:38 And you’re transmitting the value of that.
    0:55:39 Yeah.
    0:55:39 Right.
    0:55:42 I don’t think we stop and think enough about like,
    0:55:46 how our actions and what we say and what we,
    0:55:51 the currency we use with children transmits values.
    0:55:55 So for instance, like, I’m sitting there talking to one of my friends
    0:55:59 about Jonathan’s book and about literally about this topic
    0:56:02 and have it with, with the mom of two children.
    0:56:05 And the 13 year old comes over and shows us,
    0:56:07 look mom, look at this video of this gerbil.
    0:56:09 Like, while we’re talking about this topic and what does the mom do?
    0:56:12 Stops looks the video.
    0:56:17 Stops our face-to-face conversation to look at this like TikTok video
    0:56:19 and like engage with it.
    0:56:21 And I just left there and I was like,
    0:56:25 what is that transmitting to the children in the room?
    0:56:26 That they’re the VIP, right?
    0:56:27 You’re the-
    0:56:30 And this TikTok video is more important
    0:56:33 than a face-to-face conversation with a friend.
    0:56:36 And it’s not something you’re actively communicating,
    0:56:37 but it’s something they’re receiving through.
    0:56:39 Oh, I think it is active.
    0:56:40 I mean, yes, in the sense that like-
    0:56:41 Like not directive.
    0:56:44 I’m not saying, oh, the TikTok video is more important,
    0:56:45 but that’s not how kids learn.
    0:56:48 Kids don’t learn from what you say is important.
    0:56:50 Kids learn through practice and modeling.
    0:56:53 That is how kids learn, everything.
    0:56:56 What would be an alternative way to handle that situation?
    0:56:59 I would say, I’m talking, I’m talking to,
    0:56:59 this is important.
    0:57:01 I’m having a conversation with Mike Lean right now.
    0:57:03 You know, let’s discuss this later.
    0:57:05 And then I would tell the child later,
    0:57:10 you know, number one, that’s really rude to, you know,
    0:57:11 it’s a 13-year-old kid.
    0:57:14 Like they should know at that point that’s rude to,
    0:57:16 you know, interrupt in the middle of a conversation.
    0:57:19 Like I would tell Rosie that nicely,
    0:57:20 not maybe not as mean as I just said it.
    0:57:23 Do that after, not in the moment.
    0:57:24 I wouldn’t do it in the moment.
    0:57:26 You wouldn’t embarrass the child.
    0:57:27 You’d make a big scene.
    0:57:30 In the moment, it’s more of a performative parenting device.
    0:57:33 Which is, again, what do you value?
    0:57:35 You’re looking good as a parent.
    0:57:37 They’re less likely to learn, but you feel better.
    0:57:38 That’s right.
    0:57:40 You’re basically shaming them, right?
    0:57:42 But I would tell them in the moment,
    0:57:44 like this conversation is important.
    0:57:47 And there, I’m transuming the value of,
    0:57:49 I value a face-to-face interaction
    0:57:51 more than some gerbil video on TikTok.
    0:57:51 Right.
    0:57:54 But if you look around you and you will see this everywhere,
    0:57:58 you will see parents actively valuing and modeling
    0:58:00 the love of technology.
    0:58:03 The reward system is really a value system.
    0:58:03 Yeah.
    0:58:05 The reward system in the brain
    0:58:10 is made in animals to make sure they get food,
    0:58:12 it’s sex, water, safety, right?
    0:58:15 But in humans, it can be hooked up to anything
    0:58:16 that seems valuable.
    0:58:18 And that’s what children are learning.
    0:58:21 They’re learning that the screen, these videos,
    0:58:25 this video game, this is what our society,
    0:58:27 this is what my family values.
    0:58:27 It’s so hard.
    0:58:31 I leave my phone in a different room
    0:58:32 when we eat dinner.
    0:58:33 Yeah.
    0:58:35 Yeah, we have one phone.
    0:58:37 And it’s in a drawer.
    0:58:38 And I feel it, right?
    0:58:39 You want to go over there?
    0:58:40 I do.
    0:58:43 I definitely feel a pull towards it, right?
    0:58:45 Yeah, they call it motivational magnets.
    0:58:46 It’s just like, well, it’s like, where’s my phone?
    0:58:48 You know, like, you don’t have this thing on me.
    0:58:48 Yeah, that’s your brain.
    0:58:51 But it’s interesting because a couple of weeks ago,
    0:58:53 my youngest came up to me and he’s like,
    0:58:56 “I like that you never have your phone at dinner.”
    0:58:58 I love that.
    0:59:01 And I was like, I didn’t even think you noticed.
    0:59:02 And it’s like, yeah.
    0:59:02 Oh.
    0:59:03 It’s like, yeah.
    0:59:07 Like, it was just this moment of like, oh, I was like,
    0:59:10 so I was doing it because I wanted to pay attention to them.
    0:59:13 And my motivation was like less of a,
    0:59:16 you know, sort of communicating values, which is like,
    0:59:17 we need to chat face to face.
    0:59:19 But it was also about avoiding regret.
    0:59:21 I didn’t want them, I always think about like,
    0:59:23 “Well, they’re going to move out one day.”
    0:59:24 Yeah.
    0:59:25 I hope eventually.
    0:59:30 And when they move out, I’m going to wish I was having dinner with them.
    0:59:30 Yeah.
    0:59:32 And what was more important?
    0:59:34 Checking your email for the under time or like.
    0:59:36 And so all of these thoughts lead to like,
    0:59:37 “I’m just going to leave.”
    0:59:40 And I’m not, I usually am, but like,
    0:59:44 I’m not 100% confident that I can just like leave it in my pocket.
    0:59:45 And then.
    0:59:46 You can’t.
    0:59:48 But the other thing that I’ve started doing recently is I just,
    0:59:50 when I’m with them, I put it on silent mode.
    0:59:51 For sure.
    0:59:53 And the only people that can get through silent mode are them.
    0:59:54 Right.
    0:59:59 I mean, all these things that you’re doing are transmitting the value of like,
    1:00:03 you care about interacting with them more than the phone.
    1:00:04 Yeah.
    1:00:05 I didn’t think they paid attention.
    1:00:07 Oh, at least one of them pays attention.
    1:00:08 I think it’s a fascinating observation.
    1:00:12 I’ve been, I’m writing a chapter now about how actually kids don’t like
    1:00:14 technology as much as you think they do.
    1:00:15 Oh, tell me more about this.
    1:00:17 Because I just ask them.
    1:00:18 But can they answer that?
    1:00:21 I mean, if you ask us what kind of car you want,
    1:00:23 you end up with Homer Simpson’s car, right?
    1:00:25 I’m not, it’s not that blatant.
    1:00:31 And you can actually find it in these, like in conversations or in the books,
    1:00:35 people will say these, people will like say what you just said.
    1:00:39 Like kids will say things like, oh, I really like this night because we’re not on the screens.
    1:00:41 You know, so kid, that’s what I’m saying.
    1:00:45 Like, but you can ask them, you can say like, well, what do you do on the iPad after school?
    1:00:46 I do this, I do that.
    1:00:50 And then one little girl said, without even being saying anything was like,
    1:00:54 but you know, I would do something more fun and more better if my parents let me.
    1:00:56 Oh, you don’t want to actually be on the iPad?
    1:00:57 No, I don’t really want to be on the iPad.
    1:01:00 Actually, and Rosie one day said to me, like not that long ago,
    1:01:02 she said, I thought you wanted me on the Netflix.
    1:01:04 Oh, interesting.
    1:01:07 Because I kind of did in the sense that like what you’re talking about using it as currency,
    1:01:08 right?
    1:01:10 So I was like pushing it at her, right?
    1:01:12 You need to find something.
    1:01:14 You don’t need it.
    1:01:15 It was really weird.
    1:01:23 Again, it’s this question of wanting it, wanting to pick up your phone and actually
    1:01:26 enjoying it and actually valuing it.
    1:01:31 And actually like, I think most kids would rather do something else,
    1:01:34 but they are like, especially teenagers that have been on technology for so long.
    1:01:38 I mean, their brains are so wired to want it.
    1:01:40 They call them motivational magnets.
    1:01:47 The cues turn into these like magnets that pull you there, not the actual software, the cues.
    1:01:50 And you actually transfer the value onto the cues.
    1:01:54 And it’s this very, very, very strong pull to get away from that.
    1:01:57 You have to protect the child from the cues.
    1:02:00 What do you tell your, I don’t know, like I’m picking random ages here,
    1:02:07 but like your 16 year old or your 12 year old that they can’t watch a show on Netflix.
    1:02:09 Or that’s not what our family does or values.
    1:02:12 But then they go to school and everybody’s talking about it.
    1:02:13 Now they feel left out.
    1:02:15 They feel like they’re not a part of something.
    1:02:17 Right, right.
    1:02:19 And isn’t it interesting how it’s all about fear?
    1:02:22 Because we think it’s about reward, but it’s actually about fear.
    1:02:25 And the fear and the reward system are all enmeshed.
    1:02:30 So I think at the teenage years, you start, you really think,
    1:02:34 they really need to start to understand how it affects their brain, right?
    1:02:37 You know, and how it’s manipulating their brain,
    1:02:42 kind of wiring up their reward system to prioritize it over everything else.
    1:02:45 Teenagers don’t like to be manipulated.
    1:02:46 So I think you start there.
    1:02:49 You start with this conversation of how this actually works.
    1:02:53 One of the neuroscientists said to me, he has a 12 year old boy just gave him a phone.
    1:02:57 He gave him this like hour long PowerPoint on what the phone does to his brain
    1:03:01 and how it works and how this thing called sign tracking and all this stuff.
    1:03:03 And then they sat down and they said, okay,
    1:03:06 he said, how much of your day do you want the phone to take up?
    1:03:08 Let’s write it down.
    1:03:09 How much do you want?
    1:03:11 And I think the kids is on like 45 minutes a day,
    1:03:15 which sounds about what you’re doing, right?
    1:03:15 Yeah.
    1:03:17 And he said, okay.
    1:03:18 And they wrote it out.
    1:03:21 And he said, now it’s my job as the parent to hold him to that.
    1:03:27 It becomes more of this cooperation thing where they’re like working together.
    1:03:28 Well, that’s what it is, right?
    1:03:30 Like we’re effectively trying to come up with something with them,
    1:03:33 but you’re still the parental authority.
    1:03:33 Oh, I think absolutely.
    1:03:36 But you move from parent to coaching.
    1:03:38 Yeah, it’s more, it’s more guidance.
    1:03:43 But then there, I think that there’s these rules that makes sense just neurologically,
    1:03:46 you know, like no, no screens in the bedroom.
    1:03:47 Yeah.
    1:03:52 I mean, like we got rid of, right now we have no screens after seven.
    1:03:54 And I try to hold it to myself.
    1:03:56 I can’t do that just because of homework too.
    1:03:58 Like they do all their homework on technology.
    1:03:59 Sure.
    1:03:59 I mean, yeah, yeah.
    1:04:02 But like they leave their phones in the living room.
    1:04:05 They’re not letting their phones in their bedroom at this point.
    1:04:06 You know, this all changes.
    1:04:09 But try it in the sense that like if you can,
    1:04:13 one of the neuroscientists who studies dopamine in the eyes
    1:04:15 told me three hours before bedtime.
    1:04:17 Yeah.
    1:04:18 And so I started doing, I mean, it’s crazy, right?
    1:04:20 That’s like seven o’clock, right?
    1:04:20 Yeah.
    1:04:23 And I started doing it like maybe November.
    1:04:26 And I, Shane, I sleep like I’ve never slept before.
    1:04:27 I mean, I’m not kidding you.
    1:04:30 I’m like, I mean, I, and I think, I think kids will feel the same.
    1:04:32 I mean, it really affects the sleep.
    1:04:33 There’s no doubt.
    1:04:35 Is there a book you came across in your research
    1:04:39 that like parents of teens, you know, sort of 12, 13 can be like,
    1:04:42 hey, before you get a phone, before we talk about technology,
    1:04:45 I want you to read this and let’s have a conversation about it.
    1:04:47 I would recommend watching social dilemma.
    1:04:47 Okay.
    1:04:48 Have you watched that?
    1:04:48 Have you guys watched that?
    1:04:49 No.
    1:04:50 Definitely watched that.
    1:04:53 I’ve heard of some teenagers tell me they’ve had to watch it in school.
    1:04:53 Like it’s.
    1:04:53 Oh, interesting.
    1:04:54 Yeah.
    1:04:55 It’s, it’s good.
    1:04:57 The same schools that don’t ban phones.
    1:04:58 I’m not sure.
    1:05:00 I haven’t done the cross correlation data on that.
    1:05:03 But I, but the problem is, is that parents don’t know these things.
    1:05:07 Like parents, it’s not like I say, like it’s not an even playing field right now.
    1:05:14 The tech industry has all this knowledge and tools and goals about technology and
    1:05:18 how it affects your brain and it affects children’s brain more that way because of,
    1:05:24 you know, they’re not as developed and parents have none of it right now.
    1:05:26 It’s a really, really uneven playing field.
    1:05:30 And we’re playing with these old rules of two hours of screen time at night.
    1:05:35 And I try to be, I mean, personally, I just try it like the rules are interesting.
    1:05:39 We’re trying to get away from rules into more like autonomy.
    1:05:43 If you will, within, within certain limits of how that goes.
    1:05:46 But I mean, it’s just a nonstop struggle.
    1:05:47 And I have great kids.
    1:05:52 So I can imagine if you had more difficult children, I can like,
    1:05:55 like sometimes they go to bed and I’m like, man, I just won the Olympics.
    1:05:55 Right.
    1:05:56 Nobody died today.
    1:05:57 Everybody ate food.
    1:05:59 This is a win.
    1:06:00 And they were on the screen for an hour.
    1:06:03 And you know, like some days I’m like, oh, I just don’t care.
    1:06:04 I need a break.
    1:06:04 Right.
    1:06:08 Like I need a, I mean, it really is about setting up your environment.
    1:06:11 I mean, I said that earlier.
    1:06:14 I said, like you set up an environment where the child can be autonomous
    1:06:17 and you, it’s about doing that with the screens.
    1:06:18 Well, so it’s going to be hard.
    1:06:22 It’s just going to be harder because they, they are magnets.
    1:06:24 I want to come back to this just before we end.
    1:06:31 But like what have you learned about in not these tribes, but in sort of Western culture,
    1:06:37 what can we do for our environment that sort of at least adds friction to things,
    1:06:39 if not removes them as a possibility.
    1:06:41 You mean for technology?
    1:06:43 Well, for technology or anything.
    1:06:48 Like what can we do to encourage autonomy in our kids through the environment?
    1:06:51 I’m a big fan of the environment is like the hidden hand.
    1:06:52 It is.
    1:06:55 I think James Clair said that the hidden hand that shapes your, your.
    1:06:56 Yeah.
    1:06:59 I mean, like you said, like a prediction machine, I come into an environment and it’s like,
    1:07:02 I know, like I’m predicting everything that I’ve done here in the past,
    1:07:04 especially with younger children.
    1:07:06 I mean, older children too.
    1:07:10 It’s about empowering them so you don’t have to say anything to them.
    1:07:11 Right.
    1:07:16 It’s teaching them the skills they need so that they can be autonomous in your environment.
    1:07:19 So you can either change the environment and get rid of everything,
    1:07:21 which is what we kind of tend to do with kids.
    1:07:24 But then you just leave them unempowered, right?
    1:07:27 Or you slowly teach them, you know?
    1:07:29 So does that make sense?
    1:07:29 A little bit.
    1:07:30 Yeah.
    1:07:33 I think it’s just, I’m trying to make it practical for.
    1:07:33 Right.
    1:07:35 So give me an example of something that you’ve.
    1:07:37 Like a house environment.
    1:07:38 Like what are the things?
    1:07:42 So like one thing that you mentioned that I picked up on, which I mean, we don’t do.
    1:07:44 Other people may or may not.
    1:07:47 And I really try not to judge other people.
    1:07:48 Everybody’s doing their best.
    1:07:49 I really do.
    1:07:50 And every kid is different.
    1:07:51 That’s the thing too.
    1:07:55 So, but like having a TV in your room or having something like that.
    1:07:56 So that’s an environmental choice, right?
    1:07:57 Where you put the TV.
    1:07:59 That’s a parental choice.
    1:08:04 And so if you put the TV and sort of the main floor, you end up with one sort of,
    1:08:06 you’re exemplifying one thing.
    1:08:06 Right.
    1:08:10 And if you put it in the basement, you’re sort of like putting it out of the way.
    1:08:11 It’s not a show piece.
    1:08:16 And then the kids get more autonomy in a way because they have to go downstairs and like
    1:08:20 figure it out themselves and hang out with their friends if they want to watch TV.
    1:08:23 And so like I’m just thinking, are there any other environmental?
    1:08:24 I would love to learn some.
    1:08:26 I’m sure everybody else listening would.
    1:08:30 I think one of the things that maybe we haven’t said explicitly that should be said is like,
    1:08:35 I don’t think children can be autonomous with technology, some technology.
    1:08:36 Oh, that’s interesting.
    1:08:36 Okay.
    1:08:36 All right.
    1:08:38 I don’t think that they’re capable.
    1:08:39 I don’t even think adults are capable.
    1:08:41 I mean, I’m not.
    1:08:44 So use the environment to shape the technologies.
    1:08:48 It’s like screen time limits or app limits or something.
    1:08:48 That’s right.
    1:08:50 So like let’s take like Inuit hunting.
    1:08:57 A lot of one of the big goals in is to teach boys, but now girls too, it’s very mixed,
    1:08:58 to seal hunt.
    1:09:00 Okay.
    1:09:02 They have to do, many families have to do it.
    1:09:05 And like, you know, this is a skill you have to learn, right?
    1:09:06 Well, the seal hunt is crazy.
    1:09:09 It is a crazy skill.
    1:09:13 You have to go out on the ice, poke a hole in the middle of nowhere,
    1:09:17 and then they put a little tiny like feather in the hole.
    1:09:21 And you sit there and you steer at it for six hours until the feather moves.
    1:09:23 And then you stab the ice.
    1:09:27 This is a very difficult task.
    1:09:30 Well, you can’t just take a six-year-old and tell them to go seal hunt.
    1:09:30 Yeah.
    1:09:31 Right?
    1:09:32 Well, what do they do?
    1:09:33 The dad explained it to me.
    1:09:37 He’s like, when the kid can stay outside for six hours, then we’ll take them with us,
    1:09:40 but we’ll park them like way out because if they’re make noise,
    1:09:42 you’re going to mess it all up.
    1:09:46 And then if the kid still wants to do it, then we’ll slowly bring them closer.
    1:09:49 And it’s like, I mean, I think that’s how we think of technology,
    1:09:51 is a little bit like seal hunting, right?
    1:09:52 A little bit at a time.
    1:09:54 Demonstrate responsibility.
    1:09:55 And then…
    1:09:58 Yeah, you delay it until they show a lot of interest and really want it.
    1:10:01 And then it’s like, okay, where can you go in the seal hunt?
    1:10:02 You’re going to be way out there.
    1:10:02 Right.
    1:10:04 And then you show me, you can do that.
    1:10:06 And then I’ll pull you in a little bit closer.
    1:10:09 I guess that’s kind of like what I’ve done intuitively personally,
    1:10:10 which is like, okay, we’ll show me.
    1:10:14 You can be responsible before we start adding more things to your phone.
    1:10:15 Right. It’s exactly what you like.
    1:10:20 And delaying it, you know, because the kid’s not capable of standing over the whole…
    1:10:21 I’m not capable.
    1:10:23 …of six hours, right?
    1:10:26 And it’s like the parent’s not going to stick them in that situation and have them fail.
    1:10:30 Well, I think if you put a phone, give the child a phone and stick them in their bedroom
    1:10:35 or the video game, you’re putting them at the seal hole to fail, right?
    1:10:40 And so it’s not new that this idea, I just think that we have to treat this thing
    1:10:44 as this tool that kids can’t learn yet.
    1:10:48 They don’t have the mental capacity to sit over the hole for six hours.
    1:10:51 They don’t have the mental capacity to carry a phone into their room and not go to bed.
    1:10:53 It’s a slow process.
    1:10:55 Oh, yeah. And like everybody’s doing the best they can.
    1:10:57 Every child is different.
    1:10:59 Every sort of like environment is different.
    1:11:02 But then like every broader environment is different, too.
    1:11:04 Actually, the community, the school, absolutely.
    1:11:06 A lot of schools are all technology now.
    1:11:10 There’s iPads and computers and laptops.
    1:11:14 And the school is crazy, which I think actually means at home,
    1:11:15 it’s more important to switch it around.
    1:11:17 Oh, to go the other way, that’s interesting.
    1:11:19 They need to build these other skills.
    1:11:21 I mean, like I’m a big fan of Cal Newport.
    1:11:25 And he talks a lot about how like concentrating in these,
    1:11:29 in doing this kind of deep thinking and stuff, it takes practice.
    1:11:31 We always end with the same question,
    1:11:34 but I’m going to use a slightly different version of it for you,
    1:11:37 which is what is success as a parent for you?
    1:11:39 So when I first, before I wrote the book,
    1:11:41 it was like what you’re talking about, like Yale.
    1:11:45 You know, it’s like Rosie speaking Mandarin and going to Yale.
    1:11:48 Was this like, you know, like, and it, I don’t, I don’t even.
    1:11:51 Ugh. But then when I wrote the book, I was like,
    1:11:56 success for me is Rosie feeling, growing up mentally healthy.
    1:11:58 What does that mean, mentally healthy?
    1:12:01 Not having tons of anxiety and depression
    1:12:06 and like healing societal and like, you know, like enjoying life.
    1:12:12 You know, like really enjoying life and enjoying our relationship,
    1:12:13 enjoying being part of the family,
    1:12:16 which I think is important for like mentally healthy kids.
    1:12:18 You know, that means working, having a job.
    1:12:20 That means having a family.
    1:12:22 That means whatever that means for her.
    1:12:24 But like, you know, waking up and being excited
    1:12:28 about the things she’s doing in that day.
    1:12:30 That’s a beautiful way to end this conversation.
    1:12:32 Thank you so much for taking the time.
    1:12:43 Thanks for listening and learning with us for a complete list of episodes,
    1:12:46 show notes, transcripts, and more.
    1:12:51 Go to fs.blog/podcast or just Google the knowledge project.
    1:12:55 Recently, I’ve started to record my reflections
    1:12:58 and thoughts about the interview after the interview.
    1:13:01 I sit down, highlight the key moments that stood out for me.
    1:13:04 And I also talk about other connections to episodes
    1:13:06 and sort of what’s got me pondering
    1:13:08 that I maybe haven’t quite figured out.
    1:13:11 This is available to supporting members of the knowledge project.
    1:13:16 You can go to fs.blog/membership, check out the show notes for a link,
    1:13:18 and you can sign up today.
    1:13:22 And my reflections will just be available in your private podcast feed.
    1:13:24 You’ll also skip all the ads at the front of the episode.
    1:13:27 The front of street blog is also where you can learn more
    1:13:29 about my new book, Clear Thinking.
    1:13:33 Turning ordinary moments into extraordinary results.
    1:13:37 It’s a transformative guide that hands you the tools to master your fate,
    1:13:39 sharpen your decision making,
    1:13:42 and set yourself up for unparalleled success.
    1:13:46 Learn more at fs.blog/clear.
    1:13:47 Until next time.
    1:13:51 [Music]
    1:13:53 you
    1:14:02 [BLANK_AUDIO]

    It’s surprising how often we give our kids orders: “Do this!” “Don’t do that!” But if we want to raise resilient and independent kids, is this the right approach? Michaeleen Doucleff argues there’s a better way, and in this conversation, she explains why and shares practical strategies for solving the parenting “crisis” in the modern world.

    In this conversation, Doucleff reveals four parenting principles that will help foster resilience and independence in your kids while protecting and enhancing their emotional well-being. Shane and Doucleff discuss her observations on how different cultures approach parenting and how their practices can help alleviate the burdens we place on ourselves and our children. We also explore the role of technology and its impact on our parenting and our children’s development and maturity.
    Michaeleen Doucleff is the author of Hunt, Gather, Parent. Her work has taken her all over the world to explore, observe, and learn from the parenting practices of various cultures. She is also a correspondent for NPR’s Science Desk.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠⁠

    Timestamps:

    (00:00) Intro

    (04:12) How (and why) we’ve lost our way as parents

    (08:02) The rise of the nuclear family

    (13:46) TEAM Parenting: T

    (17:20) TEAM Parenting: E

    (23:01) Why you don’t need to praise your child

    (26:12) TEAM Parenting: A

    (36:42) TEAM Parenting: M

    (38:34) “Kids do not need to be entertained”

    (39:12) Technology, parenting, and transmitting values

    (1:02:59) Resources parents can use to educate kids about technology

    (1:04:50) How you can use the environment to give kids autonomy

    (1:09:56) Success and parenting

    Watch the episode on YouTube: ⁠https://www.youtube.com/c/theknowledgeproject/videos⁠

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠https://fs.blog/newsletter/⁠

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now – ⁠https://fs.blog/clear/⁠

    Follow me: ⁠https://beacons.ai/shaneparrish⁠

    Join our membership: ⁠https://fs.blog/membership/

  • #196 Brent Beshore: Business Brilliance and Happiness at Home

    AI transcript
    0:00:00 All investing at the end of the day is the assumption of risk.
    0:00:03 The ideal investment scenario is you are assuming a risk that is knowable.
    0:00:07 You are being paid more to assume that risk and you have some ability to mitigate that risk.
    0:00:13 So we all have three basic moves in conflict.
    0:00:17 It’s called move against, which is like the second one is and then the third one.
    0:00:22 And so if you watch all of your conflict, we’ll follow that pattern.
    0:00:26 Let’s talk about incentives.
    0:00:27 How do you set incentives for the CEOs?
    0:00:30 I think the ideal system is what if you learned a bit hiring people that most people miss?
    0:00:36 I think that’s probably been the biggest leap forward.
    0:00:37 And what most people get wrong is most people don’t understand.
    0:00:41 What’s the playbook when you take over a company?
    0:00:44 So we are
    0:01:04 Welcome to the Knowledge Project podcast.
    0:01:06 I’m your host Shane Parish.
    0:01:07 In a world where knowledge is power, this podcast is your leverage for mastering the best
    0:01:12 what other people have already figured out.
    0:01:14 If you’re listening to this, it means you’re not a supporting member.
    0:01:17 Members get early access to episodes, my personal reflections at the end of every episode,
    0:01:22 which a lot of people now say is their favorite part.
    0:01:25 No ads, exclusive content, hand edited transcripts, and so much more.
    0:01:29 Check out the link in the show notes for more information.
    0:01:32 My guest today is Brent Beshore.
    0:01:35 Brent is the founder and CEO of Permanent Equity,
    0:01:37 a private equity firm that buys and grows boring businesses.
    0:01:41 And by boring, I mean the kind of businesses that most people overlook,
    0:01:44 but that are essential to making the world go round.
    0:01:47 Some of his companies include Ace Fence, the largest residential fencing company in Texas,
    0:01:52 Chance Rides, the leading amusement ride manufacturing company in the United States,
    0:01:57 and Pacific Air, which has one of the aerospace industry’s largest selection of on hand inventory.
    0:02:03 I first met Brent about 10 years ago now, and we became friends right away.
    0:02:08 I’ve met a lot of people in my life, and I remember flying home after the first time
    0:02:11 we met thinking how incredibly special he was.
    0:02:14 After this conversation, when Brent was flying home, I felt so grateful
    0:02:18 that that chance and counter had turned into a great friendship.
    0:02:21 Not only does Brent love the details, he can talk about any company they own
    0:02:26 or their competitors at the 50,000 foot level or the one inch level,
    0:02:31 but he’s also one of the most thoughtful and kind people I’ve ever met.
    0:02:34 He’s bigger on the inside than the outside.
    0:02:37 Well, his conversation is one continuous episode.
    0:02:40 It comes in two distinct parts.
    0:02:42 The first part is about life, and the second part is about business,
    0:02:46 and his wisdom is equally profound in both.
    0:02:48 We discuss the small changes and mindset shifts he’s made
    0:02:51 that have had a profound impact on his personal life.
    0:02:54 And about 45 minutes in, we switch to business.
    0:02:57 We cover operating out of abundance and what that means,
    0:02:59 why longevity matters, why debt is not a source of return,
    0:03:03 why not having debt is actually a strong signal of a good business,
    0:03:07 what it means to own a business, incentives, his first deal,
    0:03:11 taking outside capital, the advantages of personality testing,
    0:03:14 and so much more.
    0:03:16 In a world where everyone is chasing the next big thing,
    0:03:19 Brent is focused on finding value in the overlooked and underappreciated.
    0:03:24 And that’s a lesson we could all learn from.
    0:03:26 It’s time to listen and learn.
    0:03:37 Some of my favorite brands operate on Shopify,
    0:03:39 including Allbirds, Outway Sox, and Aeropress.
    0:03:42 Shopify is the global commerce platform
    0:03:46 that helps you sell at every stage of your business.
    0:03:49 It doesn’t matter if you just have an idea right now,
    0:03:51 or you already operate a multi-million-dollar company.
    0:03:54 Shopify is there to help you grow.
    0:03:56 What I love about Shopify is that it’s like you have your own
    0:04:00 multi-billion-dollar tech team working for you from day one.
    0:04:03 If you’re just starting, this means you can go from idea to store
    0:04:06 in a few minutes, but it also means if you’re an existing company,
    0:04:09 you can save money and time.
    0:04:11 If you’ve ever checked out from a store and thought that was so easy,
    0:04:15 chances are it was Shoppay, the internet’s best converting checkout.
    0:04:19 Sign up for a $1 per month trial at Shopify.com/Shane.
    0:04:24 Go to Shopify.com/Shane now to grow your business no matter what stage you’re in.
    0:04:29 That’s Shopify.com/Shane.
    0:04:34 The Knowledge Project is sponsored by Protect.
    0:04:36 Protect believes that when you are your best self,
    0:04:39 you are of the most service to others.
    0:04:41 Try hydration immediately upon waking before your first cup of coffee
    0:04:45 and before during or after your workout.
    0:04:48 Try rest one hour before bed and get the best sleep of your life.
    0:04:51 Improve your hydration and your sleep and become the best version of yourself.
    0:04:55 Get 30% off your order at protect.com/knowledge.
    0:04:59 That’s P-R-O-T-E-K-T.com/knowledge or use code “Knowledge” at the checkout for 30% off.
    0:05:07 If you’re on the road, you have a license plate.
    0:05:10 But not every license plate supports our provincial parks.
    0:05:14 Proceeds from B.C. Parks license plates help conserve the beauty of nature,
    0:05:19 from the peaks of our mountains to the shores of our beaches.
    0:05:22 Adventure starts with a license plate.
    0:05:25 Choose the one that gives back.
    0:05:27 Discover how B.C. Parks license plates help protect our parks
    0:05:31 at bcparks.ca/getinvolved.
    0:05:35 A message from the government of British Columbia.
    0:05:37 What’s changed in your life in the past two years?
    0:05:41 I would say my marriage has changed a lot.
    0:05:43 My inner life has changed a lot.
    0:05:44 My physical outer life has changed a lot.
    0:05:48 Ironically, the business has not changed a lot.
    0:05:52 It’s been interesting how the different seasons do and don’t overlap.
    0:05:56 But there’s been a lot of changes about how I approach work that have changed,
    0:05:59 but the actual work itself has not changed.
    0:06:01 Let’s dive into that.
    0:06:02 What’s changed in your marriage?
    0:06:03 What’s changed in your exercise?
    0:06:04 Let’s tackle exercise first.
    0:06:06 Yeah. Well, I think maybe all of it is connected to a walk I went on.
    0:06:12 Gosh, I’m probably pushing now three years ago.
    0:06:16 And there’s a gentleman on this walk who was at a small gathering of people in Colorado.
    0:06:23 He kind of picked me out.
    0:06:24 It was like 40 or 50 people in the crowd.
    0:06:26 And afterwards he said, “Hey, can I kind of go to a walk with you?”
    0:06:29 I was like, “Sure.”
    0:06:32 And he said, “Hey, can I speak truth into your life?”
    0:06:34 And he said, “I see a lot of shame in you.
    0:06:39 I see a lot of fear in you.
    0:06:40 And I worry that that’s dramatically negative when impacting a lot of your relationships.”
    0:06:46 It was more in depth than that.
    0:06:47 I mean, we talked for another probably 20, 30 minutes about what he saw.
    0:06:52 And I just tried to take a posture.
    0:06:53 I mean, initially, when somebody says something like that to you, like cut you, right?
    0:06:56 Like, how dare you?
    0:06:57 I have great relationships, you know?
    0:06:59 You’ve known me for a long time now.
    0:07:01 We were talking about this at least 10 years and not more.
    0:07:03 Yeah.
    0:07:03 And, you know, I wouldn’t have said six or seven years ago that I had bad relationships.
    0:07:08 No.
    0:07:09 I would have said I had really good relationships.
    0:07:11 If you’d asked me how my marriage was five years ago, I would have said,
    0:07:15 “Oh, like a six or seven, you know?
    0:07:18 We have our challenges, but like, we get long.”
    0:07:21 And, you know, compared to where it is today, I would say it was like a two.
    0:07:25 I just didn’t know.
    0:07:27 You know, I think about this idea of, you know, everything’s relative.
    0:07:30 So, like, world class is the best you’ve ever seen.
    0:07:33 You know, you ask somebody who’s only eating at fast food.
    0:07:35 What’s their favorite restaurant in the world?
    0:07:37 They’re going to tell you a fast food restaurant, right?
    0:07:38 So, you know, the question we have to ask ourselves is like,
    0:07:41 what do we have to compare it to?
    0:07:44 And are we talking about relative or in absolute terms?
    0:07:47 And to be honest, I don’t think I had been exposed three years ago to what was possible
    0:07:52 in relationships or what was possible in marriages.
    0:07:54 Like, I had not seen marriages up close where I was like, I was comparing my marriage to what
    0:07:59 I’d seen in other marriages.
    0:08:00 And I felt like we were doing fine.
    0:08:01 Like, we were probably right in the middle of the ballpark.
    0:08:04 I think what this person did for me was open my eyes to like,
    0:08:08 there was a lot more out there.
    0:08:09 There’s a lot more possibilities that I didn’t know.
    0:08:13 That was like a seminal moment of like a warning shot across the bow of, oh my gosh,
    0:08:19 like, I need to probably go and look and study.
    0:08:22 Like, who am I?
    0:08:24 What makes great friendships?
    0:08:25 What am I giving to my relationships?
    0:08:28 How do I think about my marriage?
    0:08:29 And like, what am I doing in my marriage?
    0:08:30 And like, how should it be?
    0:08:33 And am I willing to settle for an interior life filled with anxiety and shame and fear?
    0:08:39 Am I willing to settle for a marriage where things are being hidden and there’s disconnection
    0:08:44 and division, right?
    0:08:46 Am I willing to settle for friendships that maybe don’t go that last 10% and create that
    0:08:53 really meaningful deep connection?
    0:08:55 Am I willing to settle for a physical body that is overweight and out of shape and likely
    0:09:01 going to become diseased?
    0:09:02 And so I think that was a, you know, that was a major moment.
    0:09:04 And then that led into, you know, really finding these different people who’ve shaped
    0:09:09 and changed my life, including an incredible counselor who I started working with.
    0:09:12 And bringing to the surface a lot of these issues that I didn’t even know were there.
    0:09:16 Yeah, I mean, I look back on the person I was even three years ago and I was certainly
    0:09:20 far better than I was 10 years prior, but I was compared to sort of where I was now.
    0:09:24 I felt very shut down and frustrated and irritable and competitive.
    0:09:30 And I feel a lot of those things myself in terms of competitive and, you know, maybe
    0:09:35 a bit more anxious than I should be.
    0:09:37 What was the next step that you took in this journey that sort of like, okay, well, I realized
    0:09:42 something, I feel it.
    0:09:44 Now what?
    0:09:45 I don’t want to sit here and pretend that it’s like self-reliance is the thing that
    0:09:48 got me through this period of my life because it felt like it happened to me.
    0:09:54 And it happened for me.
    0:09:55 It didn’t feel like that I somehow figured out like outsmarted the world, outsmarted my
    0:10:02 shame and fear.
    0:10:04 It felt like I had these sort of people be put into my life and these revelations that
    0:10:09 started to occur that all of a sudden, I mean, there’s an old adage that like,
    0:10:15 when the student is ready, the teacher appears, right?
    0:10:18 And I think there’s very much, there’s a choice I had to make three years ago that was like,
    0:10:23 am I going to pretend like everything’s fine?
    0:10:27 Because that’s what everything in me, that’s what my false self wanted to do.
    0:10:31 No, screw you.
    0:10:33 You’re wrong.
    0:10:34 You don’t know what you’re talking about.
    0:10:35 Who are you?
    0:10:36 You just met me.
    0:10:36 You can’t, you don’t know.
    0:10:38 You don’t know me.
    0:10:38 You don’t know anything about me.
    0:10:39 And it was like, I remember having this very distinct choice to make.
    0:10:43 And I remember being like, if I continue on the path that I’m on that would have denied,
    0:10:49 you know, it’s sort of this idea of like self promotion, self protection, right?
    0:10:53 That’s what, that’s what our false self wants us to do.
    0:10:55 Go around self promote, self protect, because then we don’t have to really be vulnerable.
    0:10:59 Now we also are shut down and we can’t have great relationships.
    0:11:02 We can’t figure out the real sort of us that comes through.
    0:11:06 But that was the choice.
    0:11:07 And I remember kind of, it was an act of surrender of being like,
    0:11:11 I have to take the risk that I’m going to take a look at myself and I’m not going to like myself
    0:11:15 very much.
    0:11:15 I’m going to admit things to myself that, that are ugly and that I’ve done more wrong
    0:11:22 maybe than I’m willing to admit and that I’ve hurt people that I care about.
    0:11:26 That was the choice that I had to make.
    0:11:28 And I, and, and I remember very clearly saying, okay, I, you know, I surrender and I want to know.
    0:11:34 And then things started to change ever so slowly.
    0:11:38 I mean, there’s a weird dip that occurs.
    0:11:39 I feel like when you, you know, when you go from denial to awareness,
    0:11:46 it’s actually way worse.
    0:11:49 So like the awareness of your faults and awareness of your shortcomings without the
    0:11:56 healing of those is actually puts you in a far worse position.
    0:12:00 And so I would say that, you know, that sort of the period of time from three years ago to two
    0:12:05 years ago was horrible.
    0:12:08 Like it was a, it was not a, it was not a year of joy.
    0:12:11 In fact, if anything, it felt like harder.
    0:12:14 My relationships felt more strained.
    0:12:16 And I think it was because I was becoming acutely aware of how broken they were as a result,
    0:12:21 mostly as a result of me.
    0:12:22 I mean, yes, other people’s brokenness too, mostly result of me, but I didn’t have any
    0:12:26 healing in it.
    0:12:26 I didn’t know how to get healing.
    0:12:28 And, you know, that season was just an awareness building season.
    0:12:32 Looking back on that, but it’s awful.
    0:12:34 If you, if you gain awareness without healing, it’s way worse than not being aware.
    0:12:39 Give me an example of something that’s changed in your friendships.
    0:12:43 We were talking about one last night, actually, that’s a perfect one,
    0:12:45 where you always want to pay the bill.
    0:12:49 Yeah.
    0:12:50 Talk to me about that and the revelation behind it and how it came about.
    0:12:54 Let’s see here about two years ago, maybe a little less than two years ago.
    0:12:58 I had a friend who was going through some really tough times and personally,
    0:13:02 professionally and a mentor of his said, Hey, you got to go to this,
    0:13:07 got to go to this intensive counseling retreat.
    0:13:10 And he kind of reluctantly, he’s not a touchy feely.
    0:13:15 He’s a finance guy.
    0:13:17 You know, he’s, he’s not a, he’s not.
    0:13:20 This is voodoo.
    0:13:20 Yeah.
    0:13:21 This is not, it is exactly, this isn’t ooey gooey squishy stuff.
    0:13:24 It’s not, it’s not his, his ballgame.
    0:13:26 And I watched him go into that hard and hardened and just sort of like shut down,
    0:13:32 shut off again, very protective, self-protective.
    0:13:37 And he came out of that week, like changed, like distinctively different.
    0:13:44 And I remember thinking to myself, like, wow, I don’t know what happened there.
    0:13:48 That’s incredible.
    0:13:49 He’d worked with this woman the whole week and he was like, you changed my life.
    0:13:53 Like, this is incredible.
    0:13:54 Like how, you know, first of all, I never be able to repay you.
    0:13:57 Thank you.
    0:13:57 You know, like, I don’t know anything about you.
    0:13:59 Who are you?
    0:14:01 And she said, I’ve got kids and I live in Columbia, Missouri.
    0:14:06 He’s Columbia, Missouri.
    0:14:07 What?
    0:14:07 He said, one of my best friends lives in Columbia, Missouri.
    0:14:10 I live in Columbia, Missouri.
    0:14:12 And so he said, Brent, I’m telling you, like, you have to go see this person.
    0:14:19 And it was right around this time that I felt like I hit rock bottom in my
    0:14:22 awareness of like my own brokenness and like how I didn’t really see a path forward.
    0:14:29 Like I kept like sitting in this dismal state where you’re like aware of how
    0:14:36 messy everything is, but there’s no way to clean it up.
    0:14:40 And all this self-help stuff, like, none of it works.
    0:14:44 Like, at least for me, like, I can only speak, I’m an N of one here.
    0:14:48 But like, you know, the self-reliant thing doesn’t doesn’t work.
    0:14:51 And so he said, hey, I think you should meet with her.
    0:14:54 I’m like, man, this is a true godsend.
    0:14:56 Like I had no idea that somebody of that caliber, national international
    0:15:00 quality caliber was in Columbia, Missouri.
    0:15:02 I started going there and doing these three hour sessions and dredging up things I didn’t
    0:15:07 even know was there that were all connected to the behaviors.
    0:15:12 So if you if you think about like the way that I think about it now is like we have
    0:15:15 these we have these behaviors that other people can see and that we can kind of measure.
    0:15:18 Right.
    0:15:18 Am I doing good or am I not doing good?
    0:15:21 The reality is there’s so many layers underneath that, though, that are influencing that behavior.
    0:15:27 Right.
    0:15:27 Like, oh, something terrible happened and I really don’t feel anything.
    0:15:33 That’s weird.
    0:15:35 Right.
    0:15:35 Or something very small happened and I’m triggered into this like spiral.
    0:15:39 That’s weird.
    0:15:40 And what I would do in the past is I would just kind of like shove it down.
    0:15:44 Right.
    0:15:44 Like, oh, I don’t know.
    0:15:46 I don’t get it.
    0:15:47 But life’s weird and whatever.
    0:15:49 Got to go on.
    0:15:50 Yeah.
    0:15:50 You got to go on.
    0:15:51 And so anyway, through this series of sessions, and I mean, I’ve done a lot now,
    0:15:56 like probably 25 or 30 of these now, three hour sessions.
    0:15:59 So a lot of time we got down to one of the sessions.
    0:16:01 It was actually probably about four or five months ago out of the blues, kind of seemingly
    0:16:06 unconnected.
    0:16:06 And we were talking about friendship and my counselor said, did you always pay?
    0:16:10 And I said, yeah, of course, I always pay.
    0:16:14 She was like, hmm, I got out of the last 100 times that you shared a meal with somebody.
    0:16:20 How many times did you pay?
    0:16:21 And I was like, like 100.
    0:16:23 And she got sat back and I was kind of proud of myself, right?
    0:16:25 I’m a good person.
    0:16:27 I pay for the bill.
    0:16:28 I care about people, right?
    0:16:29 This is like the thing I told myself in my head.
    0:16:31 I do the exact same thing.
    0:16:33 Yeah.
    0:16:33 And by the way, those motivations are, I think, real and true.
    0:16:38 They are bad.
    0:16:39 But she said, yeah, I wouldn’t be your friend.
    0:16:41 And I remember just being rocked by it.
    0:16:42 Like, you wouldn’t be my friend.
    0:16:43 She goes, I was like, what, why?
    0:16:45 And like totally broke my paradigms.
    0:16:48 And she said, because in a friendship, in a real relationship,
    0:16:51 you seed control to the other person.
    0:16:54 The other person concedes control to you.
    0:16:56 It’s not, you’re always controlling.
    0:16:58 The whole point of a friendship is that you can trust and you can be vulnerable
    0:17:02 and you can see control.
    0:17:03 And so paying the bill is merely just a form of control that you’re exerting over your friends.
    0:17:08 And I remember going, oh crap, absolutely right.
    0:17:13 And she goes, yeah.
    0:17:13 And I suspect it’s not just paying the bill.
    0:17:17 You like to have your environment.
    0:17:18 You like to have your way of doing things.
    0:17:21 And I was like, yeah, I do force a lot of relationships.
    0:17:25 And again, this is only like five months ago, right?
    0:17:27 I force a lot of relationships into these boxes where it’s like,
    0:17:30 I want you to be in my box.
    0:17:32 I tell myself because I can provide great hospitality or because I can do,
    0:17:35 do these interesting things, right?
    0:17:37 And I’m caring for them.
    0:17:38 Well, and, and, and generally sometimes I suspect the same for you.
    0:17:41 Like those are real motivations, but we are this mixed bag.
    0:17:46 And I think that’s what I’ve realized is like,
    0:17:47 we hook the good and the bad together and then we do things that come off to other people
    0:17:52 very differently and confuse and frustrate and constrain.
    0:17:56 And it’s really hard for somebody to be frustrated at a friend who’s always buying them
    0:18:00 lunch or dinner or whatever it might be.
    0:18:03 So what it does is it builds up resentment and frustration in the other.
    0:18:08 And they don’t even understand, right?
    0:18:09 Like we’re all, we’re all confused.
    0:18:11 It’s very hard to see ourselves clearly.
    0:18:12 We can see each other clearly, right?
    0:18:14 We can’t see ourselves clearly.
    0:18:16 I think that we’re designed like that because we’re designed for a relationship.
    0:18:19 Like we need one another.
    0:18:20 No one is an island.
    0:18:21 No one is self-reliant, right?
    0:18:23 We need one another.
    0:18:24 So how do you handle dinner now?
    0:18:26 So what I say, only if I mean it, by the way, sometimes I don’t say this.
    0:18:30 But if I don’t mean it, I won’t say it now.
    0:18:33 I say it would give me great pleasure.
    0:18:35 I would enjoy being able to buy dinner tonight.
    0:18:39 But if you don’t want me to buy dinner, I will respect your choice.
    0:18:45 And I give them the choice.
    0:18:46 And sometimes I buy dinner and sometimes I don’t.
    0:18:49 But if they say, nope, I want to buy dinner tonight.
    0:18:52 I say, okay, thank you.
    0:18:55 And the key there is they have agency now.
    0:18:57 They have agency.
    0:18:58 And so the resentment doesn’t build even unconsciously.
    0:19:01 Correct.
    0:19:02 In kind of psychology circles, there’s this idea of a triangle
    0:19:06 where you have a victim and a hero
    0:19:10 and like a judge or a prosecutor.
    0:19:13 And heroes are those who are without knowing the good,
    0:19:19 like they tell themselves that they want to do good for other people.
    0:19:22 And what they’re really doing, and by the way, I relate very strongly to this.
    0:19:26 This is a lot of action that I see myself having done and do,
    0:19:30 is to cover up my own shame and insecurities
    0:19:34 and sort of to push down the pain that I feel.
    0:19:38 It’s like, well, I’m going to go external and go try to help somebody almost against their will.
    0:19:42 Like they didn’t ask me to help.
    0:19:44 Or if they did ask me to help, my response to them is so outsized
    0:19:48 that it removes agency from them.
    0:19:51 And so buying dinner is like a very small example of this.
    0:19:55 And I’ve got, you know, unfortunately, a lot of bigger examples of this.
    0:19:58 You know, I probably, I probably have really engaged in,
    0:20:01 I would say dramatic heroics five or six times in my life
    0:20:04 where I perceived somebody was in grave danger.
    0:20:07 They needed my help and I sprung into action
    0:20:12 and did this dramatic thing for this other person.
    0:20:15 And, you know, in my head, the thing I’m going to get is,
    0:20:19 oh, thank you so much, Brent, you’re amazing.
    0:20:22 I’m so grateful for you.
    0:20:23 And if you hear even the thoughts in my head, it’s all about me.
    0:20:26 So it’s actually not about the other person.
    0:20:27 Yes, I can justify it based on the other person,
    0:20:30 but really it’s about me.
    0:20:31 Yeah.
    0:20:31 Five out of five or, you know, six out of six times,
    0:20:34 it has been met with initial, oh man, thank you so much.
    0:20:39 Like this is incredible.
    0:20:40 Wow, I’m like blown away at your generosity.
    0:20:43 And I’m like, oh, I got all the good feelings.
    0:20:44 And, and then I end up not having a very good relationship with those people.
    0:20:49 And it shocks me.
    0:20:50 And it almost feels like a slap in the face.
    0:20:53 Like, how could they, how could they do that?
    0:20:56 How could they not be better friends with me as a result of this?
    0:21:02 And then when I started doing the sessions
    0:21:04 and started working with her, it became clear to this like,
    0:21:07 oh, heroes create victims because you’re removing all agency from them.
    0:21:12 And you are telling them that they can’t help themselves,
    0:21:16 that they are helpless.
    0:21:17 And when you do that, you are creating somebody who,
    0:21:23 who is diminished and insulted.
    0:21:26 And now, now again, in the moment, that’s not how it feels.
    0:21:32 But that’s where we’re constantly chewing on and assessing our environments.
    0:21:36 A great example of this.
    0:21:37 And this is not a close personal relationship.
    0:21:39 I remember my wife and I, one Christmas,
    0:21:41 we had a public school teacher who we knew and got to be friends with.
    0:21:45 And we were kind of sitting around the dinner table one night and she was sharing.
    0:21:49 She was like, that’s heartbreaking.
    0:21:50 She’s like, you know, these kids around Christmas that I work with,
    0:21:53 and it was a particularly poor school district.
    0:21:55 You know, they don’t have any Christmas presents.
    0:21:56 They don’t have any Christmas.
    0:21:58 Like there’s no joy.
    0:21:59 And it really like touched my wife and I.
    0:22:03 We’re like, wow, like what if we did this dramatic act and anonymously, of course,
    0:22:09 we bought like $30,000 worth of Christmas gifts for like every kid in that school.
    0:22:16 And in our heads, we were like, this is amazing.
    0:22:19 This is wonderful.
    0:22:20 These kids, you know, you can imagine the kids who were like, oh,
    0:22:24 we wouldn’t have had Christmas, but now we have Christmas.
    0:22:26 And wow, somebody cares for us and loves us.
    0:22:29 Like that’s what we were hoping to have done.
    0:22:32 And so we did it.
    0:22:35 And the response from the, you know, small group people that knew about it was like,
    0:22:39 this is incredible.
    0:22:40 You all are so generous.
    0:22:41 You know, pat, pat, pat on the back.
    0:22:43 We’re feeling great.
    0:22:43 We’re in the, we’re in the Christmas spirit.
    0:22:45 Oh, what joy, you know, all the stuff.
    0:22:48 And then it was about a month later and I followed up with the teacher.
    0:22:52 And I was just like, hey, how did that, how did that go?
    0:22:55 And she was like, it was really good.
    0:22:58 You know, everyone was grateful, you know, whatever.
    0:23:00 There’s a few people who, who had some challenges.
    0:23:04 And I was like, I had challenges with us giving, giving gifts.
    0:23:09 She said, well, some of the parents of the kids felt, felt really insulted by it.
    0:23:16 And then it like hit me.
    0:23:20 And I even like, you know, I’m trying not to get emotional about it.
    0:23:22 It, it like, it, it, it cut me so deeply because I realized what I’d done.
    0:23:26 But we had done my life and I had done, we had taken away the dignity of those families.
    0:23:33 And yeah, they couldn’t buy their kids Christmas gifts.
    0:23:37 They were going to do something for them, whatever they could do for them.
    0:23:40 And instead, like any kid, you give a kid a present because like amazing, you know,
    0:23:46 but then it started asking all kinds of questions.
    0:23:48 Well, why can’t you buy me that present?
    0:23:49 Do you not love me?
    0:23:52 Why do these other people care more for me than you do?
    0:23:54 Kids don’t understand how money works.
    0:23:56 They don’t understand how some people have more and some people have less.
    0:23:59 They don’t understand anything about that.
    0:24:01 And so what I’d inadvertently done when I was trying to be kind and generous
    0:24:05 was I didn’t put myself in the position to understand what the,
    0:24:09 the real consequences were going to be.
    0:24:11 The second, third order consequences.
    0:24:13 Yeah, a kid would have had, you know, less toys to play with at Christmas.
    0:24:17 That’s not the point of Christmas.
    0:24:20 I missed, I missed the plot.
    0:24:22 The point of Christmas is to show love and care and in doing what I did,
    0:24:28 I short circuited the ability for those families to experience love and care.
    0:24:32 And I hurt them.
    0:24:33 And there’s a great book out there called When Helping Hurts.
    0:24:37 And it afterwards actually somebody gave it to me and I read it.
    0:24:41 And I mean, you talk about being cut deeply.
    0:24:43 It’s a book about when you try to help and it hurts people.
    0:24:48 It’s one of the, one of the best books I’ve ever read on sort of philanthropy and,
    0:24:51 and how to think about caring for those who you don’t have a relationship with.
    0:24:55 And I think that’s the bottom line is like, it all comes down to we,
    0:24:59 we can’t go wrong if we’re in deep relationship with somebody.
    0:25:02 And we are respecting what their needs are.
    0:25:05 We’re, if somebody asks me for help, you’re not a hero.
    0:25:09 If somebody asks you for help and you rise to meet the need, that’s called being a good friend.
    0:25:13 Where you become a hero and you create victims is when you don’t know somebody,
    0:25:18 don’t know their needs.
    0:25:19 They never asked you to do something and you rise to meet a need they don’t have.
    0:25:25 And in, in turn, you take away agency and dignity from them.
    0:25:28 So it’s things like that that, I mean, these are, these are deep waters, right?
    0:25:31 These are things that are challenging and stuff that we don’t talk about a lot.
    0:25:35 But this is the stuff that I’ve like, it’s been a joy and it’s been awful in some ways
    0:25:40 to explore the stuff in me and to see how frequently I am engaging
    0:25:44 in this maladaptive behavior under the name of goodness and virtue
    0:25:49 and all these things that we tell ourselves.
    0:25:50 Yeah, the story we tell ourselves to justify sort of what we’re doing
    0:25:54 because we want to be the hero in a way unconsciously in a lot of ways, right?
    0:25:58 Like we’re not consciously trying to save somebody.
    0:26:00 We see a friend in need and then we want to jump in and help them.
    0:26:03 When’s the last time you asked somebody for help?
    0:26:05 This morning.
    0:26:06 I’m asking, I’m learning.
    0:26:08 This is a new learned behavior though.
    0:26:09 Because in all the years I’ve known you, this is like, this is different or something.
    0:26:14 Yeah, this is different.
    0:26:15 I, yeah, I would always be the one who would be eager to help but rarely ask for help.
    0:26:23 And again, that destroys relationships.
    0:26:25 There’s not just, there’s no way to have a real relationship with somebody
    0:26:28 unless it’s bi-directional.
    0:26:29 It can’t be you helping somebody and never needing help.
    0:26:33 Because then again, it’s the exact same principle.
    0:26:36 You’re creating sort of the hero/victim dynamics, the power dynamics in any relationship
    0:26:42 are super sensitive.
    0:26:43 And where we have best relationships is where we’re on equal footing.
    0:26:46 Different but equal, right?
    0:26:48 So I always think about it as like, you know, the X-Men or whatever.
    0:26:52 You know, you have, everyone’s got different powers,
    0:26:54 but everyone can like fight the battles together, right?
    0:26:57 And you respect the other’s opinion, right?
    0:27:00 You respect the other person’s skills and talents.
    0:27:02 But if somebody is always the one who can shoot laser beams and, you know,
    0:27:06 blow stuff up and make stuff happen.
    0:27:08 And the other person is just, oh, thank you.
    0:27:10 I appreciate that.
    0:27:11 Thank you for helping me.
    0:27:12 It’s not a real friendship.
    0:27:15 I had never thought about any of this until dinner last night with you.
    0:27:19 And I stayed up late last night just going over all the different ways that I do this
    0:27:25 in my own life with my friends from, you know, always offering.
    0:27:30 Like it’s not even offering to pay for dinner.
    0:27:33 It’s like all race up to the waiter and, you know,
    0:27:36 everybody’s sitting down and they go to the bathroom to make sure that I,
    0:27:39 and I’d read like, I was just replaying this stuff in my head.
    0:27:43 Go like, oh my God, this is crazy.
    0:27:47 I went on an apology tour after I had that realization to a lot of people.
    0:27:50 And I said, hey, I’m really sorry I did this to you.
    0:27:53 And of course people are kind of caught off guard because I don’t even think they realize it.
    0:27:56 But when I said it to them, they were like, yeah, thank you.
    0:28:00 And so now like my close friends, like I, we have this understanding.
    0:28:04 And oftentimes I still am able to buy lunch or dinner or whatever.
    0:28:09 Right.
    0:28:09 Because I enjoy it and they know I enjoy it.
    0:28:11 Like I love hospitality.
    0:28:13 I love to be a provision and provide care for people.
    0:28:17 It’s like a core part of my personality.
    0:28:19 But sometimes they say, thank you, but no, thank you.
    0:28:22 And you know what?
    0:28:23 I feel super loved in that.
    0:28:25 I feel super loved.
    0:28:27 So I, so the cool part is before I didn’t feel love either way.
    0:28:33 If somebody else bought a meal, I would feel frustrated and sort of irritable about it.
    0:28:39 And they took something away from me.
    0:28:41 Right.
    0:28:41 And if I bought.
    0:28:43 Just how everybody else feels when you do it in a way.
    0:28:45 Right, exactly.
    0:28:46 And vice versa, right?
    0:28:48 If I did buy the meal was a little bit like, you start playing with ideas and you’re like,
    0:28:52 oh, am I only a checkbook?
    0:28:53 Do people really like me?
    0:28:55 And it’s like, well, you’re the one who insisted on buying dinner.
    0:28:58 And you’re like, well, but the other person could have insisted on buying dinner more.
    0:29:00 You know, you start getting into this like weird psychology and fight back enough.
    0:29:05 Right.
    0:29:05 You hit the old alligator arms, you know.
    0:29:07 And so now it’s like the inverse of that.
    0:29:11 And I think this is like a good metaphor for life.
    0:29:13 Like I think that the more that I meet what I would call elders.
    0:29:18 So there’s a difference between elders and elderly.
    0:29:21 Elderly or like self-focused, incurred place.
    0:29:25 Pascal would call it incurvature, right?
    0:29:26 They’re incurved on themselves.
    0:29:28 They’re irritable.
    0:29:29 It’s all life is all about them and what they need.
    0:29:31 And they’re scared and fearful.
    0:29:33 And you got elders who are the inverse of this, right?
    0:29:35 Who are outwardly focused, right?
    0:29:37 The more I meet these types of elders that are like genuinely caring and loving,
    0:29:40 the more that I see them exhibiting this type of behavior.
    0:29:44 The more that I see them like no matter their circumstance,
    0:29:49 in good circumstances or in bad circumstances,
    0:29:51 they live with a joy and a lightness and a freedom.
    0:29:54 And then you see elderly and sort of now I can pull it back and see in my life
    0:30:00 that like no matter my circumstances,
    0:30:02 like I’m living in fear and shame and hiding.
    0:30:06 And so it’s like, I think that’s the thing that we’re really talking about here
    0:30:10 is like these are all even like maybe the second teardown or the third teardown.
    0:30:14 Like at the basement of all this stuff, at the very core of all this stuff is,
    0:30:18 there are really only two ways to live.
    0:30:19 You’re going to live out of fear
    0:30:21 or you’re going to live out of genuine love and care for others.
    0:30:25 And love and care for yourself.
    0:30:28 And like that’s it.
    0:30:28 Like everything else rises between those two.
    0:30:30 Like fear driven is scarce.
    0:30:33 It is the way of the world.
    0:30:35 It is a famous author in the 70s.
    0:30:39 She said that nature is red and tooth and claw, right?
    0:30:43 It’s like this idea that there is nothing but you’re either going to be a predator
    0:30:47 or you’re going to be prey.
    0:30:48 Everything is a battle.
    0:30:50 Everything’s a battle.
    0:30:51 Everything’s about competition, right?
    0:30:54 And and believe me, like that’s when I am at my worst.
    0:30:57 That’s who I am.
    0:30:57 And by the way, the world loves my false self.
    0:31:00 The world loves that fear driven self.
    0:31:01 I can get an extraordinarily incredible amount done in that time.
    0:31:06 A friend of mine calls it clean fuel versus dirty fuel.
    0:31:09 Like it’s very difficult to see.
    0:31:11 Like the car looks like the car from the outside.
    0:31:13 Very difficult to understand.
    0:31:15 Is it clean fuel or dirty fuel that’s operating the car?
    0:31:18 And I can.
    0:31:19 I mean, that car can go fast.
    0:31:20 It can take a lot of people with it if I’m on dirty fuel.
    0:31:23 And somebody’s dirty fuel is a for me.
    0:31:26 I’d learned through my life to be it’s a more potent fuel in the short term for me.
    0:31:31 Like I get more stuff done quicker and usually even sometimes with higher
    0:31:37 excellence out of dirty fuel than I do clean fuel.
    0:31:39 That fear is like a heck of a rocket.
    0:31:41 It’s higher octane almost.
    0:31:42 It’s higher octane.
    0:31:42 The problem is it’s got all kinds of contaminants in it.
    0:31:45 And you eventually like torch yourself and the car breaks down and you
    0:31:48 go off the rails and blow yourself up, whatever analogy you want to use.
    0:31:52 And so getting back to the original question, like what’s changed?
    0:31:55 Like I think that more and more I’m trying to operate on clean fuel.
    0:31:59 I’m trying to be self unconcerned.
    0:32:01 I’m trying to become an elder.
    0:32:03 I think people listening resonate a lot with this.
    0:32:06 So I’m curious what other ways you found yourself
    0:32:12 subtly controlling your relationships, whether it be your marriage or your friends.
    0:32:16 The paying is an example, but I’m sure you’ve got other ones.
    0:32:20 You get older and you get better at hiding your motivations, right?
    0:32:23 And you end up wrapping them sometimes consciously, sometimes unconsciously in
    0:32:27 these maybe good packages.
    0:32:30 But the reality was it was like I was demanding control.
    0:32:36 I was demanding care.
    0:32:39 I was demanding people to see me and sort of praise me.
    0:32:41 And so how do I do that on a daily basis?
    0:32:44 It was and by the way, this is not like it’s a victory declared or whatever.
    0:32:49 I mean, this is this is like an ongoing battle.
    0:32:51 I would say on an hour by hour, minute by minute basis is I can tell
    0:32:55 so quickly, am I operating out of fear or love?
    0:32:57 And the test is, do I have peace or not?
    0:33:00 Am I anxious or not?
    0:33:02 And when I’m anxious and fearful and when I’m, you know, I have a tendency to
    0:33:07 catastrophize the future and always be running down all these different
    0:33:12 rapid holes of what ifs might happens.
    0:33:14 And I haven’t, I’ve been given an incredible capacity to do that,
    0:33:17 which makes me like my day job as an investor.
    0:33:20 It’s really useful because I can run down a tremendous number of scenarios.
    0:33:24 My personal life, it’s terrible and I hate it.
    0:33:29 It’s the dark side of creativity, right?
    0:33:33 When you have vision and creativity, you can envision a future that is beautiful
    0:33:37 and bright and loving and wonderful or you can envision a terrible future, dystopian future.
    0:33:42 And so, yeah, I mean, examples of this, I mean, I would go into meetings and I would,
    0:33:49 I would need to take over the meeting to get praise.
    0:33:52 And by the way, I’ve been given a gift to be able to say things and think quickly
    0:33:59 on my feet that people genuinely were praising me.
    0:34:02 It’s not like, I hope, I mean, no one’s perfect, but like,
    0:34:06 we create an organization in permanent equity that’s like very kindly confrontational about
    0:34:12 ideas, like we want to be, we want a lot of friction.
    0:34:16 And so the last thing in the world I want to do is create an organization
    0:34:19 of yes men or yes women, right?
    0:34:20 Like we want divergent thinking, we want a lot of variety.
    0:34:26 And so I don’t think that they were doing it because it was like,
    0:34:29 oh boss, you’re so good.
    0:34:31 You know, that type of like, you know, sycophant type of thing.
    0:34:35 I think it was genuinely like, in my false self, when I’m really charged up,
    0:34:40 like I have a capacity to envision a future that a lot of people like.
    0:34:45 I know internally though, my vision of that future is really driving my need to be liked,
    0:34:53 my need to be respected, my need to be praised.
    0:34:56 And so, and I would have had this high anxiety in these meetings, right?
    0:35:02 And then I get out of them and it’s like, I mean, I’m so wired up.
    0:35:04 So much cortisol in my system because I craved that.
    0:35:10 I needed that.
    0:35:10 That was like my sort of my drug of choice in that, in that setting to the degree that I
    0:35:14 almost lost my right eye as a result of excess cortisol in my system.
    0:35:18 And that’s how stressed and I wasn’t stressed in the sense of.
    0:35:22 I mean, yes, like what I call normal stresses.
    0:35:26 Like, I mean, there’s always going to be sickness and death.
    0:35:29 And as we’ve grown as an organization, there’s just a lot of,
    0:35:32 a lot of people and a lot of people are a lot of brokenness.
    0:35:34 But I would say the vast majority of the stress I was experiencing was self-induced.
    0:35:40 Was because I wasn’t okay.
    0:35:42 And I knew I wasn’t okay, but I didn’t know how else to cope with it.
    0:35:47 Rather than try to get praised, try to grab things from other people, right?
    0:35:51 So it was, I was incurred, as Blaise Pascal would say.
    0:35:55 I was the one who was inwardly focused and focused on my needs and what I wanted.
    0:36:00 I was not on the path to being an elder.
    0:36:03 I was on the track to being elderly.
    0:36:05 And the inverse of that is I get more freedom as I, as I, you know,
    0:36:09 this stuff kind of comes out in relationships and friendships and my marriage in counseling sessions.
    0:36:15 You know, as this stuff kind of comes up now and there’s healing around it,
    0:36:18 that I find myself sitting in meetings and like letting other people talk.
    0:36:21 Imagine that not having to always be the leader of everything,
    0:36:25 not having to have my identity based on short term wins, not being competitive,
    0:36:29 competitiveness is the opposite of relationship.
    0:36:33 It is the antithesis of relationship.
    0:36:35 Like when we’re competitive with somebody, it’s I win and you lose.
    0:36:37 That’s horrible, especially when you’re, you’re, you’re dealing with,
    0:36:40 like my profession doesn’t have to be competitive.
    0:36:44 When I go out and play tennis or pickleball with somebody like,
    0:36:48 I don’t have to win, but before I had to win because I’m a winner.
    0:36:52 Winners win, right?
    0:36:53 Like, and if I don’t win, I’m a loser.
    0:36:55 If I don’t win, I’m a loser.
    0:36:56 If I don’t win, I’m not okay.
    0:36:57 If I’m, if I don’t win, all that stuff is going to bubble up from the basement
    0:37:00 and I’m going to feel terrible.
    0:37:03 I used to literally lose in tennis and feel terrible for days.
    0:37:06 Another thing, I would fight with my wife and I would go do a bunch of email.
    0:37:09 That’s an interesting behavior.
    0:37:11 Well, why would I do that?
    0:37:12 Well, because I get praised for doing email.
    0:37:14 I get a lot of interactivity.
    0:37:16 Oh, hey, thank you so much for that.
    0:37:18 Oh, wow.
    0:37:19 It’s 11 o’clock at night on a Friday night and just had a blowout fight with my wife.
    0:37:23 I’m going to go and do some emails because people are going to be like,
    0:37:25 oh, look how hard you work Friday night.
    0:37:27 You’re working so hard.
    0:37:29 Social media was deadening to me.
    0:37:32 I mean, if you look at the peak of my social media sort of addiction,
    0:37:36 it was probably five years ago to three years ago.
    0:37:39 Why?
    0:37:41 Because I could go online and tickle the ears of people and they would tell me,
    0:37:45 oh, this is a really insightful thing.
    0:37:47 This is really cool.
    0:37:48 Wow.
    0:37:49 You’re so great because, you know, whatever.
    0:37:50 Validation.
    0:37:51 Validation.
    0:37:52 It was praise.
    0:37:52 How many likes did I get?
    0:37:54 Right.
    0:37:54 But I found myself, my personal relationship to people like,
    0:37:57 are we optimizing our lives for the people who know us best or the people who know us least?
    0:38:03 That’s a question that haunts me.
    0:38:04 I’ve watched a lot of people up close and personal who,
    0:38:08 the more you got to know them, the less you liked them.
    0:38:14 And I mean, that’s honestly the lie that we all engage in, right?
    0:38:17 If people really knew me, would they love me?
    0:38:20 Would they even like me?
    0:38:21 Right.
    0:38:21 There are people.
    0:38:23 A lot of people I’ve come in contact with.
    0:38:25 They’re bigger on the outside than they are on the inside.
    0:38:28 Like, I want to be somebody.
    0:38:30 That was me, by the way.
    0:38:31 Like, I, you know, I mean, I think we all have this temptation, right?
    0:38:34 The Instagram pic of, oh, my life’s just a vacation.
    0:38:37 Everything’s amazing, right?
    0:38:39 Twitter’s the sort of the intellectual version of that.
    0:38:41 All I think is these great thoughts.
    0:38:43 Yeah.
    0:38:44 Have all this wisdom.
    0:38:45 I’m so wise.
    0:38:45 Now, let alone my like marriage disaster, my business disaster, you know, all this stuff.
    0:38:50 It’s like, well, yeah, but I can spout platitudes on Twitter and people praise me for it, right?
    0:38:55 That’s the lie.
    0:38:56 That’s the trap.
    0:38:57 Yeah, as this healing has occurred, it’s like, I’m on social media far less.
    0:39:00 Not because like, I actually like genuinely want to help people.
    0:39:02 And like, when I have something to say that I think could be helpful,
    0:39:05 when I’m going to engage in conversation, like, I’ll go on and like, I’ll engage in it.
    0:39:07 But like, I don’t feel a need now to like, hour by hour, check and see how many people
    0:39:13 have liked whatever in my marriage.
    0:39:14 I’m trying to be somebody who’s focused purely on the good for the other.
    0:39:18 But focused on the good of my wife.
    0:39:20 Like, how can I serve her and love her with no expectation of reciprocity?
    0:39:23 Like, it sounds foreign.
    0:39:24 It would sound foreign to me like, the view we have of every relationship,
    0:39:28 sort of in that fear based scarcity based mindset is like, okay, well, Alexis Dokville
    0:39:33 called it self interest rightly understood, right?
    0:39:35 Which is like, I do things for you so you can do things for me.
    0:39:38 Like, that’s not true love and care.
    0:39:40 That’s loving yourself.
    0:39:42 There’s a rabbi who calls that fish love, right?
    0:39:45 He says, you know, we treat our marriages like we do a good fish dinner.
    0:39:49 Right?
    0:39:49 Where you’re like, oh, I love this fish because it tastes good.
    0:39:52 Because it makes me feel warm because it satisfies a need that I have, a desire that I have.
    0:39:59 You’re consuming it, right?
    0:40:02 You’re a consumer of that thing.
    0:40:04 And I think that without a shift in mindset and the default assumption of the world is
    0:40:09 we’re all consumers of one another.
    0:40:11 We are all eating one another, including in our marriages and personal relationships.
    0:40:15 And it’s poison, straight poison.
    0:40:18 I want to spend a lot of this conversation on investing and sort of running a business.
    0:40:22 But before we sort of transition,
    0:40:24 one of the things that you said to me last night that I found super interesting was that
    0:40:29 you’d stop drinking unless it’s a celebration.
    0:40:32 Tell me about that.
    0:40:33 Well, yeah, the last couple of years have been an exploration of
    0:40:38 interior and exterior.
    0:40:41 And I think a lot of our exterior lives reflect the accumulation of our interior lives.
    0:40:47 For me, it certainly did.
    0:40:48 I can remember the first time I was called a fat kid.
    0:40:52 I was 10 years old.
    0:40:53 And that was an identity that I adopted.
    0:40:56 I always was just a little more overweight than everyone else.
    0:41:00 I wasn’t morbidly obese, but I was just a lot of weight.
    0:41:03 I was athletic, but I was a little bit heavier.
    0:41:06 You know, when I became an entrepreneur, it was all consuming.
    0:41:09 I mean, my 20s were filled with I had to win at all costs.
    0:41:13 I had to I had to put every bit of energy into being successful.
    0:41:18 I thought that that was going to make me OK.
    0:41:20 So, you know, my 20s were filled with a single minded pursuit of achievement.
    0:41:25 And I put on 50 plus pounds in my 20s.
    0:41:30 I tipped the scales at one point at 252.
    0:41:32 I remember hopping on the scale and I was like, whoa, I’ve gotten big.
    0:41:36 I started beginning of last year at 235 ish.
    0:41:42 So I was down from my peak, but it was just a battle.
    0:41:44 I’d been engaged in like a decade and long battle with like I’d, you know,
    0:41:48 try this diet or that diet.
    0:41:50 I’d try to work out some I’d make a little progress.
    0:41:53 I’d slip back.
    0:41:54 It was kind of like I had this set range.
    0:41:56 I really couldn’t couldn’t get outside of it.
    0:41:58 Kind of all part of the same transformation occurring at the same time, right?
    0:42:02 Like I found out that food was something I celebrated with,
    0:42:10 was something I turned to for comfort was how I express love and joy and care.
    0:42:15 As my counselor said, it sounds like you eat when you’re sad
    0:42:18 and you eat when you’re mad and you eat when you’re happy.
    0:42:20 I think you’re going to probably be always eating.
    0:42:24 And I was like, yes, I am always eating.
    0:42:27 Like I always have a pull towards food, right?
    0:42:28 Because I was using food.
    0:42:30 And by the way, you know, like there are more maladaptive behaviors, right?
    0:42:35 It just happened to be one that you can’t hide very well.
    0:42:37 Yeah.
    0:42:38 But I was using food to do a job for me.
    0:42:41 And sometimes that job was, you know, in concert with joy and care.
    0:42:44 And sometimes that was in, you know, concert with pain.
    0:42:47 But food was like the tool of choice that would make me
    0:42:51 both feel out of control and in control at the same time.
    0:42:54 And so as those sort of things started releasing and the junk
    0:42:59 that was underneath them that caused that pain started releasing,
    0:43:02 like I felt a real freedom.
    0:43:03 You know, you, I wrote this publicly in my annual letter this year,
    0:43:07 like you had a huge impact on me.
    0:43:10 And it’s funny how we don’t often, I don’t think when you said it,
    0:43:12 you realized like how impactful it was going to be.
    0:43:14 But it was like a lightning bolt.
    0:43:15 You told me, I was complaining to you.
    0:43:17 I think it was maybe January 4th or 5th of last year.
    0:43:20 Yeah.
    0:43:20 And you told me that, you know, you’re working out or everyone’s like, oh man,
    0:43:24 yeah, like I’ve got a news resolution.
    0:43:26 I’m going to drop some weight, you know, whatever.
    0:43:28 And it’s just really hard to work out.
    0:43:29 And I felt kind of defeated about it because it’s like, you know when,
    0:43:35 you know when you’re headed to failure.
    0:43:37 And it like sort of, that’s the thing about dieting.
    0:43:39 And that’s the thing about these like short bursts of like New Year’s resolutions is like,
    0:43:44 they head towards failure.
    0:43:45 Yeah.
    0:43:46 Because they’re not sustainable.
    0:43:47 And so I remember you saying this one thing to me that completely shifted internally,
    0:43:52 how I thought about health.
    0:43:54 And you said, well, I just work out every day.
    0:43:56 It’s part of my identity.
    0:43:57 I don’t have a choice.
    0:43:59 If I’m going to work out, I just have a choice what I do.
    0:44:01 And I remember it hit me like a ton of bricks.
    0:44:04 I was like, oh my gosh.
    0:44:06 Yeah, you’re right.
    0:44:08 And around that time, another good friend of ours, Patrick,
    0:44:13 I was on the phone with him and, you know, the best of friends tell you the real truth.
    0:44:17 Like the pinnacle of friendship is to tell each other the real truth, the hard truth,
    0:44:22 the truth that the truth that you gain nothing from and you have everything to lose.
    0:44:26 Because that is true vulnerability.
    0:44:28 That is truly giving the other person control.
    0:44:30 And I remember Patrick took a risk and I said something.
    0:44:33 I used to make jokes about being a fat kid, right?
    0:44:35 This is that identity that was imprinted upon me.
    0:44:37 And they’re funny.
    0:44:38 People laugh at jokes about being fat, right?
    0:44:40 Self-facing and all this stuff.
    0:44:41 And he goes, would you knock that shit off?
    0:44:43 And it was like a very stern voice.
    0:44:46 He was like, not okay.
    0:44:47 Like, I’ve heard you say this over and over again.
    0:44:49 You’ve made jokes about you.
    0:44:50 In fact, not okay.
    0:44:51 Like, you got to quit that.
    0:44:53 You’re not a fat kid.
    0:44:54 He’s like, why do you do that to yourself?
    0:44:57 And it’s again, this idea like we can’t see each other.
    0:45:00 We can see each other clearly.
    0:45:01 We can’t see ourselves clearly.
    0:45:02 That really flipped the switch in me.
    0:45:04 That was like, I’m not a fat kid.
    0:45:06 I’m going to be healthy.
    0:45:06 I’m going to be a healthy person
    0:45:08 who’s part of their identity is I’m going to work out every day.
    0:45:10 Now I’m not putting my salvation in that.
    0:45:13 I’m not putting my goodness in that.
    0:45:14 I don’t think that people who work out are better
    0:45:16 than people who don’t work out.
    0:45:18 But I’m going to make it a core part of me
    0:45:20 that I’m going to like honor this body that’s been given to me.
    0:45:23 Like I’ve got one container in this life.
    0:45:25 And it’s important.
    0:45:27 When I say basically every day, like I am now,
    0:45:29 I work with a couple of people on the fitness side and like,
    0:45:32 their biggest problem with me is that I work out too much now.
    0:45:35 Like I’m literally, this is not like a bragging thing.
    0:45:38 This is like, I love it so much now.
    0:45:40 And this is something I hated to work out.
    0:45:41 I hated it.
    0:45:42 I would dread it.
    0:45:44 I was out of shape.
    0:45:45 I mean, I hated working out.
    0:45:46 And so now it’s like, I feel the joy
    0:45:49 and I feel privileged that I get to work out.
    0:45:52 Like I have an opportunity to move my body
    0:45:55 and to like experience this world.
    0:45:56 And so whether it’s going on a run or a bike or playing a sport,
    0:46:00 I love pickleball and tennis.
    0:46:01 And or just getting me on a hike or a walk with a friend.
    0:46:04 I love it.
    0:46:06 You know, the Greeks had this very like,
    0:46:07 it’s like body versus soul, like dualistic view.
    0:46:10 Like we are embodied creatures.
    0:46:12 Like we are one in the same.
    0:46:13 That’s not the proper view.
    0:46:15 Like our physical health impacts our mental health.
    0:46:18 And vice versa, right?
    0:46:20 And so I’ve seen this like wonderful,
    0:46:24 like I have more energy to play with my children
    0:46:26 and the relationships are better.
    0:46:27 And like I can, I can, I feel better just in general.
    0:46:31 So like, you know, when you feel better
    0:46:33 and you can move better, it’s all this, like,
    0:46:34 it’s like this virtuous upward loop, right?
    0:46:37 And the inverse downward loop
    0:46:38 when those things start to fail.
    0:46:40 And so the alcohol thing,
    0:46:41 very long-winded way of saying it,
    0:46:42 I just noticed that when I drink alcohol, things felt hard.
    0:46:48 And turns out alcohol is one of men,
    0:46:52 especially one of the biggest inhibitors of testosterone.
    0:46:55 And we think of testosterone as like the libido,
    0:46:57 you know, hormone or whatever, and it is.
    0:46:59 But like that’s not the point.
    0:47:01 Like I wasn’t like, I was like, oh, well, I’m, you know,
    0:47:03 drinking, I was basically drinking almost every day.
    0:47:05 And I was drinking a lot.
    0:47:07 Like I got the point.
    0:47:08 I probably drank to say this even now,
    0:47:09 I would never in a million years have defined myself as like
    0:47:12 with any sort of addiction.
    0:47:14 And like I could not drink and be okay.
    0:47:17 But I was drinking like three or four or five drinks a night
    0:47:20 every night.
    0:47:20 Like, you know, you get home and you open up in a bottle of white
    0:47:23 and you’re making dinner.
    0:47:24 We cook all the time.
    0:47:25 We love cooking.
    0:47:26 My wife and I, it’s like kind of a core part of what we do.
    0:47:28 And you know, we’re making this meal and, you know,
    0:47:30 the, you know, open them, you know, another bottle of wine,
    0:47:33 maybe a red, you have a little bit of that.
    0:47:34 And then it’s like, oh man, you know,
    0:47:36 it’d be really great tonight to have a little H tequila
    0:47:38 or some cognac or something.
    0:47:39 And, you know, before long, it’s like, it really adds up
    0:47:43 and it affects your sleep.
    0:47:44 And for me, I just noticed like, you know, testosterone,
    0:47:47 the best definition I’ve heard of testosterone
    0:47:49 and what it does is it makes hard things seem easy.
    0:47:52 And so when I drink, hard things seem hard.
    0:47:54 And when I don’t drink, hard things seem easier.
    0:47:57 Like I can very clearly tell.
    0:47:59 And so I just said it’s not worth it and try to come up
    0:48:03 with other alternatives and how to get the ritual of it
    0:48:06 and the specialness of it.
    0:48:07 It’s kind of like a, you know, you can mark your days, right?
    0:48:09 I mean, I went for a lot of my life.
    0:48:10 It was like alternating between like caffeine was one part
    0:48:13 of my day and alcohol is another part of my day.
    0:48:16 And now I don’t drink caffeine and I don’t drink alcohol
    0:48:20 for very different reasons, but both of them are health-related
    0:48:23 and my life is way better for it.
    0:48:25 And so my excuse now, and I shouldn’t say excuse,
    0:48:28 the way I think about it is like when I celebrate,
    0:48:31 it’s the only time I let myself drink.
    0:48:33 The interesting thing to me when we were talking last night
    0:48:35 is you mentioned, you used the word rule,
    0:48:39 which I thought was really interesting.
    0:48:40 Do you have any other rules that you’ve adapted
    0:48:43 in the last couple of years that have really helped you
    0:48:45 sort of unlock the next level?
    0:48:47 Yeah, this is actually a huge part of a lot of these changes
    0:48:51 that I’ve made in my life as well.
    0:48:52 How we spend our days is how we spend our lives.
    0:48:55 Like our habits are who we are.
    0:48:58 And habits are very sticky and hard to change.
    0:49:03 They require a tremendous amount of focus.
    0:49:06 And it’s very difficult to add multiple habits at once,
    0:49:09 is what I found.
    0:49:10 I’m also not a personality that loves habits.
    0:49:14 I don’t love structure.
    0:49:16 I really enjoy the variety of life.
    0:49:22 And so in many ways, like habits great on me,
    0:49:25 but I’ve really come as I get older
    0:49:27 to appreciate the value of good habits.
    0:49:30 And so the habits I try and I would say as I,
    0:49:33 these are most days, almost all days,
    0:49:36 I get up and the first thing I do is read and pray.
    0:49:38 I always try to tell my kids and my wife that I see them
    0:49:44 and I know them and I love them.
    0:49:46 And that there’s nothing they can do to ever move outside
    0:49:49 of my love for them.
    0:49:50 One of the questions I love asking my kids now is,
    0:49:56 what do I do when you feel most loved?
    0:49:58 And then I really try to focus on doing those things for them.
    0:50:03 That’s sort of the magic question that unlocks
    0:50:06 a tremendous amount of intimacy with anyone really.
    0:50:11 Any friendship, if you ask that same question,
    0:50:13 you’d be shocked, I think, what the answers you get.
    0:50:15 Because in my marriage and in my friendships,
    0:50:18 in my relationship with my children to some degree,
    0:50:20 like I used to try to love them the way I wanted to be loved.
    0:50:24 And that doesn’t work very well,
    0:50:27 because really what you’re doing
    0:50:28 is you’re loving yourself by doing that.
    0:50:30 And then I kind of went through a phase where I was like,
    0:50:31 okay, well, love them the way they should want to be loved.
    0:50:34 That doesn’t work well either.
    0:50:37 Why don’t they love it?
    0:50:39 Why don’t they love it?
    0:50:39 Yeah.
    0:50:40 Right.
    0:50:40 And then I started really being like,
    0:50:43 okay, I’m going to pretend like I have no preconceived notions
    0:50:47 of how somebody wants to be loved.
    0:50:48 And you’re just going to ask them.
    0:50:49 Yeah, I’m just going to ask them.
    0:50:50 And do you know what’s interesting is most people
    0:50:53 both can tell you pretty quickly,
    0:50:55 but it’s shocking to them what comes out of their mouth.
    0:50:57 Oh, interesting.
    0:50:58 So most people don’t actually know
    0:51:00 how they want to be loved.
    0:51:01 Like it’s not something they think about.
    0:51:03 And I mean, you can use this analogy at work too, right?
    0:51:06 Like, you know, a question will ask somebody is like,
    0:51:08 when do you really feel seen and appreciated?
    0:51:10 I think this is the question we’re all trying to ask is like,
    0:51:12 how do we want to be loved?
    0:51:13 I’m like really getting down on somebody’s level with them
    0:51:16 and getting in the muck in the mire with them.
    0:51:19 Like that’s real relationship.
    0:51:20 Let’s switch gears and talk about business a little.
    0:51:22 But I think that a good segue question is,
    0:51:25 how do you balance love with operating?
    0:51:30 And you’re one of the best operators I’ve ever met in my life.
    0:51:33 How do you balance those two things where we’re taught
    0:51:38 to come at everything from a competitive point of view,
    0:51:40 which you do exceptionally well,
    0:51:42 or did exceptionally well for a number of years,
    0:51:45 and it made you a huge success.
    0:51:46 And then how do you get the same results or better results
    0:51:51 operating out of love?
    0:51:53 Well, I think the lie that we tell ourselves
    0:51:57 is that if we don’t act out of scarcity,
    0:51:59 that there won’t be enough.
    0:52:00 And what that does is it isolates us and it shuts us down
    0:52:07 and it isolates us on everyone.
    0:52:09 I mean, anxiety is contagious.
    0:52:11 Scarcity is contagious.
    0:52:13 As soon as, I mean, if you look at the game theory of scarcity,
    0:52:16 as soon as one person acts scarce,
    0:52:17 the fear ripples through the entire crowd and love is fragile.
    0:52:22 Care is genuinely fragile.
    0:52:24 This either this fear mindset or this abundance mindset,
    0:52:27 this love mindset,
    0:52:28 it requires a tremendous amount of protection
    0:52:32 in order to engage in it.
    0:52:33 And look, I’m not going to sit here and pretend
    0:52:36 that I would often make the same decisions
    0:52:39 if I weren’t already in a position of success.
    0:52:41 You’re operating end of a position of strength already.
    0:52:44 Yeah, I’m coming often times where
    0:52:46 I’m already coming from position of strength.
    0:52:48 I do think though, I would hope if I hit reset
    0:52:52 and I could go back knowing what I know now,
    0:52:55 life is just way better no matter how you slice it.
    0:52:58 Operating from a position of abundance and love and care,
    0:53:02 no matter if you have resources or not.
    0:53:05 But money makes you more of what you already are, right?
    0:53:09 And so if you look at people with tremendous amount of resources
    0:53:12 who made that money through scarcity and through high competition
    0:53:15 and through stepping on people on the way up,
    0:53:18 when they get to the top,
    0:53:19 they continue to exhibit that behavior.
    0:53:21 I think there are a number of people who experienced that.
    0:53:24 And by the way, that was me in my 20s.
    0:53:28 My 20s were filled with doing whatever it took to make it.
    0:53:31 And I would hide it and, you know, I’d do it in a more gentle way.
    0:53:35 But that my heart was scarce.
    0:53:37 And I still battle this on a daily basis now.
    0:53:40 So it’s not like, again, there’s no victory declared here.
    0:53:42 But what is sustainable long term
    0:53:45 is not a sort of Mexican standoff with everyone in your life.
    0:53:50 I mean, that’s how most business is done.
    0:53:51 It’s like, there’s power structures.
    0:53:54 And it’s like, well, I’m going to make myself indispensable
    0:53:56 so you can’t get rid of me, right?
    0:53:59 And it’s like, oh, well, I wish I could get rid of that guy,
    0:54:02 but I can’t, right?
    0:54:03 It’s like, that’s a horrible, like, confrontational,
    0:54:07 competitive, scarce mindset to be in business.
    0:54:10 I feel like this is the norm.
    0:54:12 Unfortunately, it’s really the norm in the finance world.
    0:54:14 I mean, I feel like I’ve, I’ve, I fell backwards into finance.
    0:54:18 I’ve joked on the forced gump of private equity.
    0:54:21 And it is as scarce as it gets.
    0:54:23 I mean, it is all zero sum is how it’s treated.
    0:54:26 As we’ve moved towards a position of abundance,
    0:54:30 as we’ve moved towards an ability to try to treat people
    0:54:33 with honor and care and create win-win relationships.
    0:54:36 I mean, that’s really what we’re trying to do.
    0:54:37 You know, one of our mentors, both of us,
    0:54:40 Peter Kaufman talks a lot about this, right?
    0:54:42 As like the only sustainable long-term path
    0:54:44 is that everyone has to win or it won’t work.
    0:54:48 If there’s any losers in a system, it’s not sustainable.
    0:54:52 So I think that’s just something
    0:54:53 that we’ve really tried to pursue.
    0:54:55 And so what does that practically look like?
    0:54:57 I think is, is a question, right?
    0:54:58 It looks like not protecting yourself always all the time,
    0:55:04 but giving people the ability, if they want to act scarce,
    0:55:08 to do so, but in like lower stakes ways.
    0:55:13 So like one of my favorite things to do is, is be,
    0:55:16 almost open myself up to being taken advantage of
    0:55:18 early on in a relationship.
    0:55:21 So if they do, then you’re like, okay, great.
    0:55:24 Like, and by the way, there’s no judgment in this.
    0:55:26 It’s not like, how dare you or I’m somehow better, you know,
    0:55:29 whatever.
    0:55:29 It’s just, hey, I just don’t think you’re in a position right now.
    0:55:32 I was there before, but you’re not in a position right now
    0:55:35 to be able to engage in our system
    0:55:37 because our system requires a tremendous amount
    0:55:39 of mutual trust and care.
    0:55:41 Now again, we’re imperfect.
    0:55:43 We screw up all the time.
    0:55:44 We’re asking for forgiveness all the time.
    0:55:46 We say, sorry, all the time.
    0:55:47 It’s not, I don’t want to paint this picture
    0:55:48 of like idealistic, like we’ve got it all together.
    0:55:51 We got a lot of things to work on, right?
    0:55:52 But I think most of the people are trying
    0:55:56 to operate out of a position of abundance.
    0:55:58 Most of us are trying to work towards wins for everyone.
    0:56:03 We’re trying to be thoughtful with not just the buyer
    0:56:06 and the seller, you know, private equity.
    0:56:08 So we buy businesses.
    0:56:09 We’re not trying to just think about the buyer and the seller.
    0:56:12 Buyer being us, seller being the person who’s selling
    0:56:14 is this thing.
    0:56:15 We’re trying to be thoughtful about the executive leadership teams
    0:56:17 at these companies.
    0:56:18 We’re trying to be thoughtful about the employees,
    0:56:19 the rank and file.
    0:56:21 We’re trying to be responsible and be thoughtful
    0:56:23 towards our customers and our vendors and the communities,
    0:56:26 maybe even regulators, depending on the situation.
    0:56:28 What does a win look like for a community
    0:56:31 that we purchase a business in?
    0:56:32 I don’t know.
    0:56:33 It’s an interesting question.
    0:56:34 I think it’s different for every business.
    0:56:36 What does a win look like for the construction worker
    0:56:38 on a job in business we bought?
    0:56:40 It’s an interesting question to ask, right?
    0:56:43 We can’t make anybody happy.
    0:56:45 We can’t make anybody fulfilled.
    0:56:47 But we certainly can create an environment
    0:56:49 that allows more for them to be happy, free, fulfilled.
    0:56:53 And this is where, I think, for the rest of my career,
    0:56:55 the engaging part for me is not about money for a long time.
    0:56:59 Thankfully, I’ve not had to worry about money for a while.
    0:57:02 Now, for me, I’m like, wow, what if, when we buy a business,
    0:57:07 not only is the work environment better,
    0:57:10 maybe we allow them, provide the environment,
    0:57:13 maybe show them a better way.
    0:57:15 This idea of everything’s relative, right?
    0:57:17 Maybe we can show them a better way
    0:57:19 where their marriages get better
    0:57:21 and their friendships get better
    0:57:22 and their relationship with their children get better.
    0:57:24 They’re more engaged people.
    0:57:25 They’re more active.
    0:57:26 I don’t want people who are working
    0:57:29 80, 100 hours a week every week.
    0:57:31 Now, look, there are weeks where I work 100, 100 hour weeks.
    0:57:34 Sometimes you’ve got to get stuff done, right?
    0:57:38 So there’s no shame in that.
    0:57:39 But if that’s your norm, you just cannot sustain a healthy lifestyle,
    0:57:45 healthy relationships, a healthy physical body working that much consistently.
    0:57:50 Just no way.
    0:57:50 There’s no time in the day to do it.
    0:57:51 And so I don’t want people who are sustainably like,
    0:57:55 like the whole finance world is full
    0:57:58 of just chewing people up and spitting them out.
    0:58:00 They use people as objects, right?
    0:58:04 Then they throw them away when the object doesn’t become useful.
    0:58:06 I mean, my fantasy, and this may be,
    0:58:08 look at delusions of grandeur, illusions of grandeur,
    0:58:11 is could we show people a better way
    0:58:14 that actually you create higher returns long term by treating people well?
    0:58:20 You create higher returns over time by using little to no debt
    0:58:24 as weird as that is in the finance world.
    0:58:26 And believe me, I know all the people are watching this.
    0:58:28 I get the math.
    0:58:29 You don’t have to send me the math.
    0:58:30 I understand how leverage works.
    0:58:32 I can do them.
    0:58:33 I can do the math too.
    0:58:33 But I think there’s real value in examining why,
    0:58:37 why is it that we have a system,
    0:58:39 especially in the leverage by our world of private equity,
    0:58:42 where the norm is buy, lever, strip, and flip, right?
    0:58:47 I’m going to lever this business to the moon.
    0:58:50 I’m going to try to use as little equity as I can.
    0:58:52 I’m going to try to sell it as quickly as I can
    0:58:54 to generate the highest return I can.
    0:58:56 There’s no way to make good long term decisions
    0:58:59 with short term capital with short term time horizons.
    0:59:01 There’s no way.
    0:59:02 And by the way, what are we doing if all we’re,
    0:59:07 there’s no way to create a long term enjoyable sustainable life
    0:59:11 by having a series of short term transactional relationships
    0:59:14 that you move your life through.
    0:59:15 That’s where you end up with these people who can buy anything
    0:59:19 who’ve made hundreds of millions, not billions of dollars,
    0:59:22 who are miserable.
    0:59:23 Like I’ve met these people.
    0:59:24 Like they have their IRR etched on their tombstone.
    0:59:27 Like no one gives a shit.
    0:59:29 No one cares.
    0:59:30 At the end of the day,
    0:59:31 like David Brooks, I think calls him like eulogy virtues.
    0:59:36 – Yeah, yeah.
    0:59:37 – Like no one at somebody’s eulogy was like,
    0:59:40 he was a great man, made a ton of money.
    0:59:43 Hated his life.
    0:59:44 Hated his wife.
    0:59:44 – But he got 26.5%.
    0:59:47 – Right.
    0:59:48 – IRR.
    0:59:49 – But that, that net IRR, whoo boy, let me tell you.
    0:59:53 – Yeah, he was the one, one of the best.
    0:59:56 – Yeah.
    0:59:57 I mean, and look, we admire greatness.
    0:59:59 Like we’re, we’re a society that worships outliers.
    1:00:02 And so you’re not wrong to play that game.
    1:00:06 That is a game to be played.
    1:00:08 There is a game there.
    1:00:09 And it does lead to certain things that are good.
    1:00:12 It also makes you lose your soul.
    1:00:14 And also, I don’t want to give the impression like we’re trying
    1:00:19 to absolutely shoot the lights out of returns.
    1:00:21 – Yeah.
    1:00:21 Just in a different way.
    1:00:23 How you go about it, your way, your way is more sustainable.
    1:00:26 And there’s a couple of things I want to follow up on
    1:00:28 that we talked about there.
    1:00:29 Going back to the first part, allowing people an opportunity
    1:00:34 to almost take advantage of you.
    1:00:36 Often I find that the first request by somebody
    1:00:39 is very telling or the first offer.
    1:00:42 Here’s what we want.
    1:00:44 Here’s what we need from you.
    1:00:45 And if that doesn’t come across as fair,
    1:00:48 it’s like the biggest signal in the world that it’s like,
    1:00:51 oh, this is probably not a relationship that is going
    1:00:54 to be win-win.
    1:00:55 I’m going to have to work to try to make it win-win.
    1:00:57 But you’ve given me this valuable piece of information
    1:01:00 on day one without even intentionally doing so.
    1:01:03 – Amen.
    1:01:04 And I would also say the slight twist I’d make to that
    1:01:06 is, and give grace, that I will fall down.
    1:01:10 You will fall down and make offers to people,
    1:01:13 even though maybe we actually are in a heart space
    1:01:16 most of the time that’s not transactional.
    1:01:18 This happens to me all the time where I will fall down
    1:01:20 and do something transactional.
    1:01:23 – Totally.
    1:01:23 – And so it’s like, what I often do in that situation
    1:01:26 is say, hey, maybe this was unintentional.
    1:01:28 Maybe you were having a bad day.
    1:01:30 Whatever the reason, this came across to me as transactional.
    1:01:33 If I misinterpret it, maybe I don’t understand what you’re
    1:01:35 actually– the sentiment underneath it.
    1:01:37 But it feels short-term, feels transactional,
    1:01:39 feels extractive in what you offered.
    1:01:43 Did I misunderstand?
    1:01:45 And usually that reaction, the more defensive they are,
    1:01:48 the more kind of like, what are you talking about?
    1:01:51 Right?
    1:01:51 Like, the water we swim in culturally is transactive,
    1:01:55 extractive.
    1:01:57 It removes control.
    1:01:59 It says you will be OK if you can build your own kingdom.
    1:02:03 So it’s perfectly normal for that to be the way people
    1:02:09 interact and transact.
    1:02:10 Like, that is the norm.
    1:02:11 So I just want to be careful with how steeped in that somebody
    1:02:15 is and how much they’ve realized that maybe
    1:02:17 that there’s a better way.
    1:02:18 And what I don’t want to do is I don’t want to come across
    1:02:21 as judging them or condemning them based on that,
    1:02:26 which is a real danger, right?
    1:02:27 Because I mean, you can get self-righteous pretty quickly.
    1:02:29 It’s just a signal.
    1:02:30 Right.
    1:02:31 It’s just a signal.
    1:02:32 If anything, even if they are highly transactional and sort
    1:02:35 of my– like, I have this like–
    1:02:37 it’s like a weird feeling that rises up in me.
    1:02:39 It’s like, ugh.
    1:02:40 Like, ugh, I don’t know.
    1:02:41 You’re spidey, son.
    1:02:42 Right.
    1:02:42 It’s that– I think it’s like a protective thing
    1:02:46 where you’re like, OK, I can feel myself rising
    1:02:49 in competitiveness, rising in scarcity,
    1:02:51 to meet their scarcity.
    1:02:53 And I’m like, ooh, I don’t like that.
    1:02:54 That’s that dirty fuel that I feel like it’s almost
    1:02:56 like a direct injection of dirty fuel into my system.
    1:03:00 And I’m like, ooh.
    1:03:01 Yeah.
    1:03:02 And then it’s like, OK, well, even if I say, hey,
    1:03:04 I don’t think we’re in a position right now to probably
    1:03:06 do something on this, or like, I don’t think the system–
    1:03:08 it would work for you engaging in the system right now,
    1:03:12 try to show them a better way and encourage them.
    1:03:13 Don’t condemn them, right?
    1:03:14 I think that’s the thing that we try to do.
    1:03:16 Now, oftentimes, I think people don’t take it as such.
    1:03:19 I mean, look, if somebody makes you an offer and you decline,
    1:03:22 there’s rejection in that.
    1:03:24 And again, I totally get this because I feel this way is,
    1:03:28 when you get rejected, it touches things that are way deeper
    1:03:31 than just that mere surface level rejection.
    1:03:33 Totally.
    1:03:34 So when it travels down and starts ping-ponging around
    1:03:36 and hitting all those things down below,
    1:03:39 that’s where you get these outsized reactions to things.
    1:03:43 And again, the response that you want to have
    1:03:47 is when you see somebody have an outsized reaction,
    1:03:49 it’s to be able to feel stupid, belittle them.
    1:03:50 Conflict pattern is something that I really
    1:03:53 have enjoyed studying.
    1:03:55 So we all have three basic moves in conflict.
    1:03:59 And actually, if you watch these, it’s fun.
    1:04:01 Like now, whenever I engage in conflict, I know my pattern.
    1:04:05 And I very much know my wife’s pattern.
    1:04:08 And I try to guess what other people’s patterns are.
    1:04:12 You can watch people go through these phases.
    1:04:14 But it’s called move against, which is like, no, you’re wrong.
    1:04:21 Screw you.
    1:04:22 I want to make you submit to me.
    1:04:25 It’s very much like a forced submission.
    1:04:27 This is somebody who gets up in your face,
    1:04:29 who’s yelling, or who’s kind of talking down to you,
    1:04:33 very confrontational.
    1:04:35 That’s kind of like one phase.
    1:04:36 And by the way, again, we do all three of these.
    1:04:39 We just depends on the order.
    1:04:41 But we all have an order to how we do these things.
    1:04:43 And then, by the way, how they interact with one another
    1:04:45 is super interesting as well.
    1:04:47 The second one is move towards the person.
    1:04:51 So the first one’s move against.
    1:04:52 The second one’s move towards.
    1:04:53 Move towards is we need to be OK.
    1:04:56 I’m not OK unless we’re OK.
    1:04:57 Let’s just gloss over whatever’s happened.
    1:04:59 It’s OK.
    1:05:00 It’ll be fine.
    1:05:01 Let’s just water the bridge.
    1:05:03 Let’s just move on.
    1:05:04 Let’s avoid it.
    1:05:05 It’s avoid.
    1:05:05 Well, it’s avoiding a way that is it feels very relational.
    1:05:10 But it’s actually not because it’s not
    1:05:11 for the good of the other.
    1:05:12 It’s actually for their good.
    1:05:13 They want to have things be OK.
    1:05:17 But it actually doesn’t address the underlying issue at all.
    1:05:20 And then the third one is move away.
    1:05:21 So this is the isolate.
    1:05:23 And so if you watch all of your conflict,
    1:05:25 we’ll follow that pattern.
    1:05:27 Talk to me about debt and your thoughts on debt
    1:05:30 and the optionality it gives you and when it’s appropriate,
    1:05:33 when it’s not appropriate.
    1:05:34 Debt is not a source of return.
    1:05:37 It is an amplifier of return.
    1:05:39 So it makes good things be great.
    1:05:44 It can take mediocre things and destroy them.
    1:05:46 And of course, it takes bad things and nukes them.
    1:05:49 The higher your confidence in the predictability
    1:05:54 of the future, the more debt you can use.
    1:05:58 I say can use, not should use, in a perfect world
    1:06:01 of perfect information where you and I own a business.
    1:06:03 And we’re like, it’s a recurring revenue business.
    1:06:07 We are for sure going to make, unlevered,
    1:06:11 we’re going to make $2 million this year, $3 million
    1:06:14 the following year, $4 million the following year.
    1:06:16 And it will go up exactly $1 million
    1:06:18 in free cash flow every year into the future.
    1:06:20 Mathematically, you can create a formula
    1:06:23 to know exactly how much debt you can maximize
    1:06:25 in that business, you pull out the equity,
    1:06:28 the equity returns look out of this world, incredible.
    1:06:32 And because you know exactly the future
    1:06:34 is there’s no risk in that.
    1:06:35 So businesses that have high predictability
    1:06:38 of revenues and incomes and feel like that they are,
    1:06:42 well, we shouldn’t say feel,
    1:06:44 in this case, since we’re creating a scenario,
    1:06:45 they know that outside events
    1:06:48 are really going to not affect them,
    1:06:50 then they can lever a tremendous amount.
    1:06:53 And it makes complete perfect math sense.
    1:06:57 The reality is that the world, I believe,
    1:07:00 is largely unknown and unknowable.
    1:07:04 The future is murky.
    1:07:07 And so it is a form of pride, a hubris,
    1:07:11 to use more debt than you should.
    1:07:14 Now, this is very broad, this is like 60,000 foot
    1:07:17 because everything’s relative, right?
    1:07:18 How much debt should you use?
    1:07:20 In the world I play in,
    1:07:22 we are buying loosely functioning disasters
    1:07:25 that sometimes make money.
    1:07:27 I mean, these are small to medium-sized businesses,
    1:07:30 call it $3 million to $20 million of free cash flow.
    1:07:34 You know, my general view after looking behind the curtain
    1:07:37 at thousands and thousands of businesses
    1:07:39 is that all businesses are loosely functioning disasters,
    1:07:42 like whether it’s a not-for-profit or for-profit
    1:07:44 or government institution, like people are messy.
    1:07:47 When you get multiple people together, that mess compounds.
    1:07:50 When you get large groups together,
    1:07:52 that mess compounds even further, it’s exponential.
    1:07:55 And the volatility of that messiness is tremendous.
    1:08:00 And so when you get to a smaller end of the market,
    1:08:04 these are for-profit companies
    1:08:05 that are making between $3 and $20 million a year
    1:08:08 free cash flow, the volatility of them is tremendous.
    1:08:13 And hence the price that we pay is on average less
    1:08:17 than ’cause we’re paying to accept that risk.
    1:08:21 All investing at the end of the day
    1:08:23 is the assumption of risk.
    1:08:24 The ideal investment scenario is you are assuming
    1:08:29 a risk that is knowable,
    1:08:31 you are being paid more to assume that risk,
    1:08:34 and you have some ability to mitigate that risk.
    1:08:37 And that’s what we’re trying to do in our business.
    1:08:39 We’re trying to find things that are highly risky, right?
    1:08:43 ‘Cause we wouldn’t pay the price that we’re paying for them
    1:08:45 if they weren’t highly risky,
    1:08:48 but that we have talents and relationships and systems
    1:08:52 that we can diagnose what the risks are,
    1:08:55 properly analyze the probability and the magnitude
    1:08:58 of that risk, and then work to mitigate it.
    1:09:01 And that’s where our returns come from.
    1:09:02 The math to me is far less clear
    1:09:05 that over the long term, debt makes you more money.
    1:09:09 I’ll give you an example of this.
    1:09:10 We bought an aerospace business in the fall of 2019.
    1:09:15 I don’t know if you know the shame,
    1:09:17 but aerospace never goes down.
    1:09:19 It’s always flat where it goes up.
    1:09:21 We were told by some of the people advising us
    1:09:23 on that deal, they were like, are you guys,
    1:09:25 did you guys get dropped on your head as a child
    1:09:27 or something?
    1:09:28 Like you’re not putting any debt on an aerospace business.
    1:09:31 Like what is wrong with you?
    1:09:32 Like this is tons of assets, highly leverable.
    1:09:35 Like banks would be happy to provide.
    1:09:37 Predictable is predictable.
    1:09:39 Look at the history of the business.
    1:09:41 And we said, yeah, we don’t feel like
    1:09:44 that’s a responsible thing to do.
    1:09:46 Again, debt only helps the buyer and the seller.
    1:09:49 It doesn’t help the leadership team.
    1:09:50 It doesn’t help the employees.
    1:09:51 It doesn’t help the communities.
    1:09:52 It doesn’t help the regulators.
    1:09:54 Doesn’t help your customers.
    1:09:55 Doesn’t help your vendors.
    1:09:57 There’s all these stakeholders at the table
    1:09:59 that it doesn’t help, but it does help
    1:10:01 in certain circumstances, the buyer and the seller.
    1:10:04 Which again, if you sort of play short-term games
    1:10:07 when short-term prizes, area of scarcity,
    1:10:10 non-recourse debt, heads I win, tails you lose.
    1:10:14 There’s a lot of incentives to use debt irresponsibly.
    1:10:18 I think that most private equity firms look at,
    1:10:21 they’re the gas and the bankers of the breaks.
    1:10:23 And they’ll just do whatever the bankers allow them to do.
    1:10:27 And it’s sort of up to the bankers to say no.
    1:10:29 And so our aerospace business, we were called idiots.
    1:10:34 I mean, actually even on Twitter,
    1:10:35 I think when we came out with our annual letter
    1:10:36 that year, people were like, like finance bros were like,
    1:10:40 you guys are morons.
    1:10:42 It was like maybe, and oftentimes we are morons
    1:10:45 and we’re just good to be called out for it.
    1:10:47 But like in this particular case, I don’t think we were.
    1:10:49 And this is obviously way before we knew
    1:10:51 that there was gonna be a pandemic.
    1:10:53 And you know, this idea of like, did we get lucky?
    1:10:56 Did we get good?
    1:10:56 I think you can know that things are not gonna play out
    1:11:01 the way you want them to and prepare for them
    1:11:03 not playing out and keep optionality open,
    1:11:05 which is going to decrease your returns in any given year
    1:11:08 but give you the ability to survive over decades.
    1:11:12 So pandemic rolls around and we’re worried,
    1:11:15 demand in the industry in our segment went off
    1:11:19 at one point by 88%.
    1:11:21 We started to struggle.
    1:11:23 And we looked at it and we were like, okay, let’s,
    1:11:26 and by the way, the leadership team there
    1:11:28 did an incredible job of maintaining positive cash flow
    1:11:32 every single month through the entire pandemic.
    1:11:34 Everyone else was negotiating with their banks.
    1:11:36 Everyone else was firing people
    1:11:38 and we were the only ones hiring
    1:11:40 and we were building systems and we were taking risk
    1:11:43 and we were able to do that because we didn’t have any debt.
    1:11:45 Everyone else is tied up.
    1:11:46 We weren’t tied up.
    1:11:48 And the alternative is we lever the thing up
    1:11:50 and for, I don’t know, four or five months
    1:11:53 we get a better return and then we negotiate with the bank.
    1:11:57 Hopefully we salvage it.
    1:11:59 Maybe we have to inject more equity in down the road.
    1:12:02 We’re sure as heck not hiring.
    1:12:03 We’re not buying parked packages for pennies on the dollar.
    1:12:07 We’re not setting up for 10 years
    1:12:08 of future success and growth.
    1:12:10 We’re not implementing new ERP systems.
    1:12:14 We’re not implementing new process and ordering systems.
    1:12:18 The whole thing was basically gave us two years
    1:12:21 to completely rebuild that business from the ground up
    1:12:24 and to see the fruits of that is astounding.
    1:12:27 And the business is dramatically worth more
    1:12:29 than it was when we bought it
    1:12:32 in spite of having a pandemic
    1:12:34 and dramatically decreased demand.
    1:12:38 – We can’t predict the future.
    1:12:39 When I was talking to Chris Davis
    1:12:41 who’s on the board of Berkshire,
    1:12:44 he mentioned it’s a strong signal
    1:12:47 if you’re looking for a good business
    1:12:49 that they don’t have any debt or they have very little debt
    1:12:52 because that masks so many things
    1:12:54 and the fragility involved is just off the charts.
    1:12:58 And people don’t realize the risks they’re taking
    1:13:00 and there’s also a world of difference between debt.
    1:13:03 2% if you can get long-term debt at 2%
    1:13:07 versus sort of now seven, eight, nine, even higher
    1:13:12 depending on the circumstances.
    1:13:14 And when people enter into a debt transaction,
    1:13:18 they just assume that the world is gonna stay
    1:13:20 the exact same that it is today.
    1:13:22 I’m gonna make the same revenue.
    1:13:24 The interest rates aren’t gonna go up.
    1:13:26 They’ll only positively surprise me to the downside.
    1:13:29 And then you find out that that’s not the case
    1:13:31 and then all of your free cash flow effectively
    1:13:35 starts getting consumed by debt.
    1:13:37 – And it doesn’t take much.
    1:13:38 It takes like a five to 10% downturn in the business
    1:13:40 which is a perfectly normal-
    1:13:42 – Business cycle.
    1:13:43 – Reasonable cycle to then throw the business into chaos.
    1:13:48 – Yeah.
    1:13:49 – I can’t imagine being an operator.
    1:13:53 And by the way, we’ve never seen a business
    1:13:57 that we wanna purchase ever in the history of the firm
    1:14:00 that has debt on it.
    1:14:01 Like when we buy it, that has debt on it.
    1:14:04 Like no families get wealthy by being like,
    1:14:08 “Oh yeah, we have this great operating business.
    1:14:10 “Like let’s pull a bunch of income from the future
    1:14:13 “into the present and lever up.”
    1:14:14 ‘Cause that would be awesome.
    1:14:15 So we can increase our consumption temporarily.
    1:14:17 – So we can buy a bigger house.
    1:14:19 – Like no one does that.
    1:14:21 And for a very good reason.
    1:14:21 Like it doesn’t make any sense, but somehow
    1:14:24 we’ve gotten ourselves as an industry
    1:14:25 in the finance industry into this position
    1:14:27 where it’s like, it makes no sense
    1:14:29 how families build businesses.
    1:14:32 And by the way, every business starts as a small business.
    1:14:35 Every business starts as a family-owned business.
    1:14:37 They then take a business that has been operated
    1:14:39 a certain way for a very long time,
    1:14:40 gone through ups and downs,
    1:14:41 survived for 20, 30, 50, 100 years maybe.
    1:14:44 And then all of a sudden it’s like,
    1:14:45 actually what we wanna do now is completely gut
    1:14:50 how the business operates and runs.
    1:14:51 We need to hit it with the steroid needle.
    1:14:54 We’re gonna get, we’re gonna jack it up with debt.
    1:14:55 We’re gonna strip it of a bunch of cost structure.
    1:14:58 We’re going to hire a bunch of new people
    1:15:00 who are gonna do amazing things in a short period of time.
    1:15:04 And then we’re gonna flip it to somebody else.
    1:15:06 And by the way, once you get on that treadmill,
    1:15:07 like once you sell the private equity,
    1:15:09 traditional private equity, do a leverage buyout,
    1:15:11 that business is forever going to be flipped
    1:15:14 to the next person.
    1:15:15 Or eventually might get sold to a strategic,
    1:15:17 but it forever is relegated to a lack of independence.
    1:15:21 Like it will never be an independent,
    1:15:23 ongoing concern for very long after that.
    1:15:26 There’s just no, no examples of this.
    1:15:27 So for us, like, you know, I don’t think we’re smart.
    1:15:31 I don’t think we’re trying to be geniuses.
    1:15:34 We just look at like, okay,
    1:15:35 the whole world is built on an entrepreneur
    1:15:39 or small group of people, entrepreneurs,
    1:15:41 getting together, creating something that the world needs.
    1:15:44 It’s hard.
    1:15:46 They built it over a long period of time.
    1:15:48 They inherently acknowledge the fragility of it.
    1:15:51 We just want to continue to honor them, their legacy,
    1:15:54 honor all the stakeholders,
    1:15:55 and I’ll try to win together over the long term.
    1:15:57 And I couldn’t imagine a worse thing to do
    1:16:00 than to put debt on that.
    1:16:01 – And I think people miss over the long term,
    1:16:05 the lack of debt actually works out better.
    1:16:07 But over the short term,
    1:16:10 and I have the saying which is lack of patience
    1:16:12 changes the outcome.
    1:16:14 And so when you lever up to get your immediate returns,
    1:16:19 and then you’re like sort of like playing with house money,
    1:16:23 you can sort of justify almost any behavior.
    1:16:27 And when you think long term,
    1:16:29 like a family thinks of a business and you sort of go,
    1:16:31 well, we can’t do that because what we want is optionality.
    1:16:34 You miss the fact that what you guys did,
    1:16:37 you had a period of two years where you made more progress
    1:16:40 than you would have in probably 10 or 20,
    1:16:43 where you’re strong and you’re operating
    1:16:47 from a position of strength.
    1:16:49 And it’s almost playing on easy mode in a way, right?
    1:16:51 It’s like, oh, like now we can expand our business.
    1:16:54 People are probably discounting parts
    1:16:57 at these fire sale prices.
    1:16:59 We can stock up on them,
    1:17:01 and our margins gonna expand because of that.
    1:17:03 We know the business is eventually gonna come back.
    1:17:06 – I mean, I think it depends on how you look at our roles.
    1:17:09 Are we owners?
    1:17:10 And I’m not talking about legal definitions here.
    1:17:12 I’m talking about mindset.
    1:17:13 – Yeah.
    1:17:14 – If you own something,
    1:17:15 it is your property to do with it whatever you want.
    1:17:19 You can do anything you want with it.
    1:17:20 So like the pushback to everything,
    1:17:22 if I was in a strong man, the opposing argument is,
    1:17:25 who are you to tell me what risks to take?
    1:17:26 – Oh, you can take it.
    1:17:27 – Who are you to tell me how to run my business?
    1:17:30 Like I own it.
    1:17:31 I can do whatever I want.
    1:17:32 I used to feel that way.
    1:17:33 Big shift for me was becoming a steward.
    1:17:36 Right, it’s this idea of stewardship and not ownership.
    1:17:38 So the way I look at it is,
    1:17:39 families are entrusting us to be stewards of their company.
    1:17:43 It’s a responsibility that we have.
    1:17:46 Yes, we get benefits from being a steward.
    1:17:50 Yes, we get to share in the fruits of the labor
    1:17:53 and progress of the company.
    1:17:55 But at the end of the day, my job is to make sure
    1:17:57 that these businesses remain intact or healthy.
    1:18:01 And when you look at it from that position,
    1:18:05 the world becomes a lot clearer.
    1:18:07 What’s in the best interest of everyone else?
    1:18:10 But also me, I mean, I don’t wanna do things that harm us.
    1:18:13 But if we align incentives properly,
    1:18:15 things that help us should help everyone else.
    1:18:17 And vice versa.
    1:18:19 Like we will be taken care of if we take care of our people.
    1:18:22 We’ll be taken care of if we take care of our customers.
    1:18:25 Like it’s not a complicated thing,
    1:18:27 but I think again, are we owners or are we stewards?
    1:18:30 – Or I think often families take a stewardship mind chat
    1:18:33 of ownership, it’s the-
    1:18:35 – Exactly.
    1:18:36 – It’s interesting to me the,
    1:18:38 I try not to judge other people for what they do
    1:18:41 or what they choose.
    1:18:42 ‘Cause I mean, we’re each playing our own game
    1:18:44 or each sort of like doing what’s rationally
    1:18:46 makes sense for us, given everything going on in our life.
    1:18:49 And if we switch shoes,
    1:18:50 we’d probably see the world very differently than we do.
    1:18:55 But people, I think they just underappreciate the fact
    1:18:58 that you are not thinking about really what you’re doing
    1:19:03 over a longer period of time.
    1:19:06 And if you structure your thinking,
    1:19:09 stewardship is a great example.
    1:19:11 Over a longer period of time,
    1:19:13 you eliminate a lot of poor behavior
    1:19:16 that you would otherwise get
    1:19:17 or a lot of things that can take you out of the game.
    1:19:19 – Yeah, for sure.
    1:19:20 – Let’s talk about incentives.
    1:19:21 How do you set incentives for the CEOs of these businesses?
    1:19:25 How do you think about them?
    1:19:27 Walk me through one in detail, for example.
    1:19:30 – Yeah, well, so I think the ideal system
    1:19:33 is everyone’s eating at the same table.
    1:19:36 Right, so there’s not different tables
    1:19:37 that the food falls onto one
    1:19:38 and then falls onto the other, right?
    1:19:40 Everyone’s incentives are aligned to achieve the same goals.
    1:19:44 And for us, when we look at traditional private equity
    1:19:49 and the traditional two and 20 model, right?
    1:19:52 So on the amount of capital
    1:19:53 that you have either gotten to invest or have invested,
    1:19:57 depending on the terms of the agreement
    1:19:59 with your limited partners,
    1:20:01 you get a 2% fee annually
    1:20:04 that goes to covering your overhead costs
    1:20:06 and the expenses of the operations of the firm,
    1:20:09 and the seeking out, the doing of the deals,
    1:20:11 the oversight and governments post-close.
    1:20:14 And then once you pay them back with a return,
    1:20:16 typically a 6% to 8%, maybe 10% depending on the situation,
    1:20:20 then you get to share in the upsides of that.
    1:20:23 And the LPs, the people supplying you with the money
    1:20:26 provide you that capital
    1:20:29 for usually in private equity, 10 years, roughly.
    1:20:33 Which again, goes back to time horizon.
    1:20:36 10 years sounds like a long time.
    1:20:38 Shane, isn’t that plenty of time to buy a business and hold it?
    1:20:42 Maybe.
    1:20:43 I think if you talk to most private equity people,
    1:20:46 they would say it’s not the deals that they did
    1:20:49 that really hurt, that they did that went poorly.
    1:20:53 The ones that hurt the most
    1:20:54 are the ones that they were doing great
    1:20:56 and they could see a long future compounding
    1:20:57 that they just had to sell the business.
    1:20:59 You’re like, but 10 years is a long time.
    1:21:02 The reality is it takes time to find a business,
    1:21:06 get the transaction done.
    1:21:07 There’s a sort of initial phase
    1:21:09 of getting to know the business once you buy,
    1:21:10 you really never know what you actually buy.
    1:21:12 No matter how much due diligence you do,
    1:21:14 you don’t really know until you get into the weeds post-close.
    1:21:17 There’s a period of orientation,
    1:21:18 then there’s a period of traditional private equity growth
    1:21:21 and trying to hit some sort of metrics
    1:21:23 to then sell it to somebody else,
    1:21:24 which by the way, selling takes time too.
    1:21:26 So you got to buy it takes time,
    1:21:27 get to operate it takes time, you got to sell it takes time.
    1:21:29 So the really at max, if you hit it perfectly
    1:21:33 in the fund life cycle, maybe you get five years.
    1:21:36 Five years at most.
    1:21:38 Most private equity firms now are targeting
    1:21:41 what they’d like is two to three years.
    1:21:44 So from the time we buy something
    1:21:46 till the time we sell it is two or three years.
    1:21:48 Again, it’s maybe four or five.
    1:21:50 If you get past five, it’s really distressed at that point.
    1:21:52 Like you’re trying to look for,
    1:21:54 you’re trying to get rid of it and you can’t.
    1:21:56 When we think about incentives,
    1:21:58 incentive, nutritional, private equity would be,
    1:22:00 Shane, I’d like for you to come on.
    1:22:02 I’d like for you to run, do a tour of duty, right?
    1:22:05 So tours of duty is kind of the way that
    1:22:08 leadership has done in traditional private equity.
    1:22:09 Once you tour of duty, it’s going to be two to three years.
    1:22:12 Look, you’re not going to see your family much.
    1:22:13 You’re going to work your tail off.
    1:22:15 But there’s this pot of gold at the end of the rainbow.
    1:22:17 If you can get us our returns,
    1:22:20 you can get our investors our returns,
    1:22:21 then you get to share in the upside of that.
    1:22:24 It’s a highly levered bet of sort of your time and tension.
    1:22:27 And we think that that doesn’t make much alignment.
    1:22:31 This is where you see private equity detonating companies.
    1:22:33 This is where you see lots of problems.
    1:22:35 I mean, private equity, you know,
    1:22:37 as an industry, when I tell somebody I’m in private equity,
    1:22:39 it’s like we look up to lawyers
    1:22:40 and reputation these days.
    1:22:42 You know, lawyers have a better reputation than we do.
    1:22:45 And for a very good reason,
    1:22:46 like there’s been a lot of bad behavior.
    1:22:47 And by the way, the incentives are for the bad behavior.
    1:22:51 All the polls of traditional private equity,
    1:22:53 leverage, buyout model is towards bad behavior.
    1:22:57 Short-termism, treating people poorly.
    1:23:00 – Yeah.
    1:23:01 – Cutting, all these things that hurt.
    1:23:03 I think you’re damaging.
    1:23:04 When you fire somebody, you are hurting not just them,
    1:23:08 but their entire family, their friend group.
    1:23:10 Like you’re hurting communities.
    1:23:12 Now it’s also not healthy to keep somebody in the role
    1:23:14 that they’re in because you don’t want to fire them.
    1:23:15 That’s not healthy either.
    1:23:16 That’s not kind, nice.
    1:23:18 That’s not kind.
    1:23:19 We can talk about that as a separate point.
    1:23:20 For what we are trying to do though,
    1:23:23 is we’re trying to have a complete perfect alignment
    1:23:25 between our LPs, us and the people
    1:23:30 who operate these businesses on a day-to-day basis.
    1:23:33 So we’re trying to all leave from the same table,
    1:23:35 trying to use the same metrics.
    1:23:36 Practically, what does that look like?
    1:23:38 We are, I used to say unusual in our fee model.
    1:23:42 Now it’s unique.
    1:23:43 I mean, we couldn’t even get audited right out of the gate
    1:23:46 because no one knew what to do with us.
    1:23:48 We take no fees of any kind,
    1:23:49 no reimbursements of any kind.
    1:23:52 There’s no cash that comes from either our LPs
    1:23:54 or the companies to us.
    1:23:57 Zero guaranteed revenue.
    1:23:59 Which you’re like, how do you run the firm?
    1:24:01 Thankfully, when we started the firm,
    1:24:02 again, we were operators.
    1:24:03 So we came in with cash flow and with businesses
    1:24:06 and fell backwards into this whole thing of private equity.
    1:24:09 I remember the first deal I did,
    1:24:12 I was close to accidental as you could buy a business.
    1:24:15 I bought it.
    1:24:16 I remember my lawyer,
    1:24:18 he was like, well, we just gotta do diligence.
    1:24:19 I typed into Google DO diligence.
    1:24:21 – Was this media cross?
    1:24:22 – Yeah, it was media cross.
    1:24:23 So what was today?
    1:24:24 I remember getting that deal done
    1:24:26 and I called up a friend who was like,
    1:24:27 my one finance friend from undergrad.
    1:24:29 And I was like, hey, I did this thing.
    1:24:31 I’m like, I think it’s a good deal.
    1:24:33 I don’t know.
    1:24:34 And he goes, oh, you did a private equity deal.
    1:24:35 I literally Googled private equity.
    1:24:37 I owe most of my career to Google.
    1:24:39 When I started studying it,
    1:24:40 I’m like, what, this doesn’t make any sense.
    1:24:42 Like all the incentives are off.
    1:24:43 And so what I said was when we came in
    1:24:45 and we were, we ended up taking outside capital
    1:24:47 for the first time in 2017,
    1:24:48 I was like, I don’t need your fees.
    1:24:52 Like I don’t want your fees.
    1:24:54 I don’t want the incentive to gather more and more capital
    1:24:57 which forces you to go up market.
    1:24:59 You can talk about that.
    1:25:01 I said, and I don’t want to be able to win when you lose.
    1:25:05 Like I want to win-win or a lose-lose situation.
    1:25:08 Like I am willing to take the risk.
    1:25:09 I want to be entrepreneurial
    1:25:10 ’cause that was my background.
    1:25:11 Like I was an entrepreneur.
    1:25:12 And so we have a model where we take no fees of any kind,
    1:25:14 no reimbursements of any kind
    1:25:15 from the portfolio companies or from our LPs.
    1:25:17 We get a percentage of free cash flow
    1:25:19 as we return cash back.
    1:25:20 That’s how we share with our investors.
    1:25:23 Well, turns out what that does for us
    1:25:26 is it gives us the perfectly aligned ability
    1:25:29 to, if there are high return, high probability projects
    1:25:33 to reinvest in the portfolio,
    1:25:34 we would be idiots not to take the cash, defer gratification
    1:25:39 and reinvest it often pre-tax
    1:25:42 at high rates of return with high probability.
    1:25:44 That’s what any family would do, right?
    1:25:48 That’s what we do.
    1:25:49 That’s what our investors want.
    1:25:50 They want to defer gratification.
    1:25:52 We want to defer gratification.
    1:25:54 And the same thing.
    1:25:54 We want to incentivize our leaders
    1:25:55 to do the exact same thing.
    1:25:56 So oftentimes the metrics that they’re measured on
    1:25:59 is on free cash flow.
    1:26:01 But again, it’s not free cash flow in a short period of time.
    1:26:04 It’s free cash flow over a long period of time.
    1:26:07 So when we don’t have things to do with the capital,
    1:26:10 high probability, high return reinvestments,
    1:26:13 the dumbest possible thing you could do
    1:26:15 is keep a bunch of cash.
    1:26:16 I call the bladder problem, right?
    1:26:17 The more money you have,
    1:26:18 the more likely you’re going to piss it away.
    1:26:20 This is where you see these businesses being run
    1:26:23 in ways that you’re like, they are murdering money.
    1:26:25 They are destroying capital.
    1:26:27 How in the world are they getting away with this?
    1:26:28 And it’s like, well, they’re kingdom building.
    1:26:30 Refugee building, their incentives are,
    1:26:32 build a bigger business.
    1:26:33 ‘Cause by the way, you hire the compensation consultants
    1:26:35 that tell you, well, yeah, the same team,
    1:26:39 and they haven’t really made a great return,
    1:26:40 but the business is bigger.
    1:26:41 And by the way, bigger businesses command higher salaries.
    1:26:44 So you play the game.
    1:26:45 It’s a bigger business, it’s a higher salary, more comp.
    1:26:48 It’s like their incentives are off.
    1:26:49 The firm who bought them, they’re two and 20,
    1:26:52 buy, lever, strip, and flip.
    1:26:53 Their incentives and the leadership teams’ incentives
    1:26:56 often are misaligned.
    1:26:57 LPs are misaligned.
    1:26:58 Everyone up and down the value chain
    1:27:00 of the traditional private equity structure is misaligned.
    1:27:03 Now, there’s so much money flowing through the system,
    1:27:05 and there’s enough safeguards,
    1:27:06 and there’s enough discernment
    1:27:07 over a long enough period of time.
    1:27:08 It all kind of has worked.
    1:27:10 You can make an argument that when rates are continually
    1:27:13 decreasing for the better part of two and a half decades,
    1:27:16 interesting weird distortions happen in the market.
    1:27:19 We just want a perfect alignment.
    1:27:21 So we want that operator in the business
    1:27:23 to say the first thing I want to do
    1:27:25 is keep a healthy business with strong cash flow.
    1:27:28 Keep the golden goose cranking out eggs.
    1:27:30 Second, we want to take the proceeds pre-cash flow
    1:27:33 and look for high return,
    1:27:35 high probability projects in the companies.
    1:27:37 We can find them, especially pre-tax.
    1:27:41 Fantastic.
    1:27:42 Reinvest the cash.
    1:27:44 They want to reinvest the cash because now,
    1:27:46 they reinvested $100 and now they’ve got $25 more
    1:27:49 every other year following that.
    1:27:51 We love that too.
    1:27:53 We’d be happy to defer.
    1:27:54 We’re getting $25 as well ourselves.
    1:27:56 Now our investors are like, of course, keep the capital.
    1:27:59 You’ve got great things to do with it, keep it.
    1:28:01 So up and down the value chain, we’re completely aligned.
    1:28:04 When we should hold cash, we do and reinvest it.
    1:28:08 And when we don’t have anything good to do with it,
    1:28:10 we send it out.
    1:28:11 – So is it a simple sort of like two variable formula
    1:28:14 for all your CEOs then or in terms of pre-cash flow
    1:28:18 and invest capital?
    1:28:19 – Nope.
    1:28:20 Everyone’s just incentivized on that.
    1:28:23 – And then do the CEOs get a compensation
    1:28:25 on the cash distributed?
    1:28:27 – Yep, oftentimes.
    1:28:28 Yeah, I mean, it depends on the situation
    1:28:30 where sometimes having these CEOs are rolling forward
    1:28:33 quite a bit of equity, depending on the situation.
    1:28:35 So sometimes they’re getting equity
    1:28:38 or getting cash kickers on top of that,
    1:28:40 but oftentimes they’re 10, 15, 20% owners in these businesses.
    1:28:45 And so the incentive is naturally baked in.
    1:28:48 We love that.
    1:28:49 We don’t want to buy 100% of a company.
    1:28:51 Like if we have our choice, we’re buying 51%
    1:28:53 to 70% of the business.
    1:28:55 And we don’t allow non-strategic actors.
    1:28:59 We want people who are actively engaged
    1:29:00 in the business to own the remainder.
    1:29:02 – How do you think about hiring and firing CEOs?
    1:29:04 How do you know you have the right CEO?
    1:29:06 And how do you know when it’s time to move on?
    1:29:09 – It’s hard.
    1:29:10 It’s hard and it’s messy is the answer.
    1:29:13 Since we’re talking about comparing us
    1:29:15 to traditional private equity,
    1:29:16 I would say it’s one of the things
    1:29:16 that traditional private equity has gotten done better
    1:29:19 than us in some ways is held people accountable.
    1:29:22 I think they go too far in one direction.
    1:29:24 I think we’ve reactionarily gone too far in the other.
    1:29:27 In terms of the performance of permanent equity as a firm,
    1:29:30 I would say in absolute terms,
    1:29:33 we’re not doing as well, nearly as well as we could.
    1:29:36 And this is an area of active learning for us.
    1:29:38 I’m just being honest and transparent about it.
    1:29:40 We’ve been tolerant of a lack of performance
    1:29:42 to a degree that is unhealthy,
    1:29:45 not only for the companies and the returns,
    1:29:48 but also for the people that are engaging in that behavior.
    1:29:51 And this is an active area of discussion right now
    1:29:53 in the firm.
    1:29:53 I mean, I’m giving you a real live view
    1:29:56 of what we’re discussing.
    1:29:58 And it ultimately is a failure on my part.
    1:29:59 Like I’m the CEO, I’m responsible for setting the tone
    1:30:02 and I deferred too much early in my career
    1:30:07 to the promises and to the optimism
    1:30:11 that things would get better when things weren’t great.
    1:30:13 And if you look at where we have really succeeded
    1:30:16 is working with people who were doing well
    1:30:18 and making them better.
    1:30:20 Where we’ve really fallen down as a firm
    1:30:22 is when things get dicey,
    1:30:25 we tend to defer to relationship.
    1:30:28 And we tend to trust the people that we have,
    1:30:31 even when there are many warning signs
    1:30:33 that things are not okay.
    1:30:36 And I would say this is the nice versus kind principle
    1:30:38 that we’ve screwed up.
    1:30:39 Being kind to somebody is saying,
    1:30:40 “Hey, I think you’re in the wrong role.”
    1:30:44 And they’re stressed out, their lives are not,
    1:30:48 they’re not enjoying life.
    1:30:49 They’re not enjoying their role, their fear-based, right?
    1:30:51 When you get into a position where things are not going well
    1:30:53 and you don’t know why and you don’t know
    1:30:54 how to get out of it, it’s terrifying.
    1:30:57 And part of what our role is is to help people.
    1:31:01 We look fundamentally at like we,
    1:31:03 our job is to serve and help others.
    1:31:06 If we can serve and help others succeed,
    1:31:08 we’re gonna succeed.
    1:31:09 Our LPs are gonna succeed.
    1:31:11 And to be honest, we screwed this up.
    1:31:13 We have not done a good job of getting people the help
    1:31:18 and moving people into roles that they should be in
    1:31:22 or having them move on to outside roles.
    1:31:25 And we need to do better at it.
    1:31:27 – Does it ever work to change?
    1:31:28 I mean, I don’t have a ton of experience
    1:31:30 with this working out.
    1:31:31 Maybe you do, where you change a role,
    1:31:33 like, “Hey, you’re CEO,
    1:31:36 but you’d really make a great CTO in the same company.”
    1:31:39 Because then you create all these internal politics
    1:31:42 of like who do I report to and my loyalties
    1:31:44 to the person who hired me?
    1:31:45 And, or is it just easier to sort of like transition
    1:31:48 and move on?
    1:31:49 – I mean, that would be wonderful to be able to do that.
    1:31:51 I think that a lot of people’s careers would benefit
    1:31:54 if they had the humility to be able to do that.
    1:31:57 Fundamentally, we all struggle with pride.
    1:32:00 And we can’t see ourselves clearly.
    1:32:02 Like we are a mystery to ourselves.
    1:32:06 And how we see ourselves in our talents
    1:32:09 and our weaknesses is often different
    1:32:12 than how other people see us.
    1:32:13 This is why we need each other.
    1:32:14 This is the whole point of relationship.
    1:32:15 This is the value.
    1:32:16 And this is the terror of where we’ve gone as a side note
    1:32:20 with social media being so isolating,
    1:32:22 with not having in-person relationships.
    1:32:24 Like this is no wonder that deaths of despair
    1:32:27 and suicide attempts and anxieties through the roof, right?
    1:32:31 We would love to be able to take to somebody,
    1:32:34 “Hey, you’re in the CEO role,
    1:32:35 or maybe the CFO role or whatever it is,
    1:32:37 and we need you to take a step back,” you know,
    1:32:41 in order to move forward.
    1:32:43 Careers often die by suicide, not by homicide.
    1:32:46 Like it’s not-
    1:32:48 – Double click on there.
    1:32:49 – Over and over and over again,
    1:32:50 I’ve watched this tragedy happen,
    1:32:52 which is the Peter Principle.
    1:32:54 Someone rises and they rise beyond their abilities
    1:32:59 and then they can’t take a step back.
    1:33:01 They’re pride, they’re ego.
    1:33:03 Their identity is rooted now in their title,
    1:33:06 in their position.
    1:33:08 And you say to them, “We love you.
    1:33:12 We think you’re awesome.
    1:33:13 We’d love for you to continue to be with us.”
    1:33:16 The role you’re currently in is hurting you
    1:33:19 and hurting those around you and hurting the company.
    1:33:23 And they’ll acknowledge that.
    1:33:24 And then you’ll say, “Great,
    1:33:25 could we get you into this role?”
    1:33:28 No, absolutely not.
    1:33:28 People fight, claw for territory, kingdom building.
    1:33:35 It’s hard to go from being king.
    1:33:37 So maybe an important person in the kingdom,
    1:33:40 but you’re not the king anymore.
    1:33:42 It’s hard.
    1:33:43 It’d be hard for me too.
    1:33:44 Would I be okay with RLPs coming to me and saying,
    1:33:47 “Brent, I don’t think you’re the right person
    1:33:50 to lead permanent equity.”
    1:33:51 I’m not gonna lie and be like,
    1:33:54 “Oh, that’d be a great conversation to have.”
    1:33:57 I hope that I would meet it with curiosity.
    1:33:59 I hope I’d meet it with self-reflection and say,
    1:34:01 “Wow, I really wanna hear.”
    1:34:02 I mean, I think I disagree,
    1:34:04 but I wanna meet it with curiosity
    1:34:06 and see what they have to say
    1:34:09 and see if I could discern out of it.
    1:34:11 Maybe I’m not in the right role.
    1:34:13 – What if you learned a bit hiring people
    1:34:15 that most people miss?
    1:34:17 – Well, another journey I’ve been on,
    1:34:19 speaking of these like added tools and toolkit is,
    1:34:23 I’ve really become much more familiar
    1:34:25 with different personality testing.
    1:34:27 And specifically, I’ve looked at a bunch of them.
    1:34:31 I really like the combination of Myers-Briggs and Enneagram.
    1:34:36 If you think about our business as,
    1:34:39 you know, we take money and we turn it into more money,
    1:34:43 I think you miss the most important thing that we really do,
    1:34:47 which is our whole business is predicated
    1:34:50 on predicting the behaviors of people.
    1:34:53 Like if we can predict the behaviors of people,
    1:34:56 there’s no way to lose.
    1:34:59 And when we don’t predict the behaviors of people,
    1:35:01 we’re almost certain to lose.
    1:35:03 Like an increase in incredible volatility in the system.
    1:35:06 If I think about my job as CEO,
    1:35:08 I need to be helping our team
    1:35:10 to be the most thoughtful, well-educated,
    1:35:14 up to speed on predicting human behavior.
    1:35:17 I mean, this is where the Knowledge Project
    1:35:19 has been super helpful.
    1:35:21 The work that you’ve done,
    1:35:22 collecting the best of what other people have figured out,
    1:35:25 getting it, distilling it, right?
    1:35:27 I mean, this is what we’re all trying to pursue
    1:35:28 and specifically around the wisdom of clicking over
    1:35:32 these lenses of these personality tests provide
    1:35:35 and giving you a framework to create empathy
    1:35:38 and create predictability in relationships.
    1:35:40 I think that’s probably been the biggest leap forward
    1:35:41 and what most people get wrong
    1:35:43 is most people don’t understand
    1:35:45 why people are doing what they’re doing,
    1:35:47 don’t understand how they should think about incentives
    1:35:51 based on the person themselves
    1:35:53 and not just the financial incentives
    1:35:54 and don’t have much empathy for how other people react.
    1:35:58 So take things personally that aren’t personal.
    1:36:00 Everyone acts rationally in the moment.
    1:36:02 This is the heroin addict who’s choosing heroin
    1:36:06 over eating a meal or leaving their family.
    1:36:10 In that moment, believes they’re doing the right thing
    1:36:14 for them, believes it’s rational to pursue that hit
    1:36:17 versus do everything else.
    1:36:21 So the question you have to ask yourself is why, right?
    1:36:25 And same thing in companies,
    1:36:26 same thing with leadership in these firms.
    1:36:29 Like the question is why?
    1:36:30 What do we think, why did that person go off the rails
    1:36:33 or how did that person suddenly disintegrate before our eyes
    1:36:36 or why is that person performing so incredibly well?
    1:36:39 And so these different personality testing,
    1:36:42 it doesn’t, no one’s the box.
    1:36:44 No one is a, you know, in the 16 types for Myers-Briggs
    1:36:48 or whatever it might be,
    1:36:49 there’s no grouping that will perfectly describe anyone.
    1:36:53 That’s not the point.
    1:36:54 The point, you’ve missed it
    1:36:56 if you think that you’re going to put somebody into a box
    1:36:59 and it’s gonna predict 100% of their behavior.
    1:37:01 That’s why I like having multiple of these
    1:37:03 that kind of give you a 3D look at people.
    1:37:06 I mean, my experience is it was an eye-opening,
    1:37:09 I assume that everyone else operated the way I operate.
    1:37:11 I assume people wanted what I wanted.
    1:37:13 Turns out I am weird.
    1:37:16 So are you.
    1:37:17 So does everyone you meet, they’re weird
    1:37:19 because they’re mixtures of all these different axes
    1:37:21 of how we sit on these things, right?
    1:37:25 And how the interplay and interact with one another.
    1:37:28 But I can tell you, as an example,
    1:37:30 once I understand sort of the four axes of Myers-Briggs,
    1:37:33 so where do you gather your energy as the first one?
    1:37:38 So this is introverted, extroverted.
    1:37:40 This is not how you show up in the world.
    1:37:41 This is where you gather energy.
    1:37:42 So introverts can appear extroverted,
    1:37:44 extroverts can appear introverted.
    1:37:46 That’s where this like,
    1:37:47 sort of you get these very basic ideas
    1:37:49 about how the world works
    1:37:50 and you sort of hear like a little bit of these things
    1:37:52 and you get misperceptions of what they actually mean.
    1:37:55 So it’s really important to understand,
    1:37:56 are you getting your energy from inner life
    1:37:59 or are you more solar powered, right?
    1:38:01 Getting your energy from other people and from the world.
    1:38:04 The second one is how do you process information?
    1:38:07 Are you intuitive or are you high sensing?
    1:38:10 This tells you a lot about where somebody starts
    1:38:12 in how they think about life.
    1:38:14 So sensors think about life in the present.
    1:38:18 They’re present oriented.
    1:38:19 They walk from the present into the future.
    1:38:22 They’re very practical.
    1:38:23 They’re very reasonable.
    1:38:24 They’re very rational people.
    1:38:26 Intuitives, like maniacs like me,
    1:38:29 we start into the future
    1:38:30 and then we walk back into the present.
    1:38:32 So we get excited about ideas.
    1:38:34 We’re like, oh, we’ve visioned this future.
    1:38:36 Oh, what might that be?
    1:38:38 How might that work?
    1:38:39 What might we do?
    1:38:40 Who could come along with us, right?
    1:38:41 And then somebody says, a sensor comes along and says,
    1:38:43 excuse me, I’m glad that you’re 10 years in the future
    1:38:47 right now and you have these grandiose visions
    1:38:49 of where you’re going.
    1:38:50 We’ve got to make payroll this week.
    1:38:52 And by the way, that’s on fire and that’s on fire
    1:38:54 and like we need to be here.
    1:38:56 So you need both, right?
    1:38:57 That’s the beauty.
    1:38:58 None of these like being introverted or extroverted.
    1:39:00 They’re just strengths and weaknesses, right?
    1:39:03 There’s always upsides and downsides to each one of these.
    1:39:05 But once I can tell, okay, where is somebody powered from?
    1:39:09 Right?
    1:39:10 How does somebody process information?
    1:39:11 The third one is how do they make decisions?
    1:39:13 This is a really important one.
    1:39:15 So thinkers and feelers, two basic categories.
    1:39:18 Thinkers are all about ideas and about truth.
    1:39:21 So they’re seeking truth, they’re seeking ideas.
    1:39:24 They’re very achievement oriented.
    1:39:26 They want to get things ordered up and neatly packaged.
    1:39:32 That’s how they make decisions.
    1:39:34 So they’re making decisions based on what is truth
    1:39:36 and how am I seeking it?
    1:39:38 Feelers on the other hand, by the way,
    1:39:41 most men are thinkers.
    1:39:42 So 70% of men are thinkers, 30% are feelers.
    1:39:46 70% of women are feelers, 30% are thinkers.
    1:39:50 When we go back up to the sensing and intuitive,
    1:39:53 it’s about 75, 25 sensing to intuitive.
    1:39:57 So 75% of people are present oriented,
    1:39:59 25% are future oriented.
    1:40:01 And so I’m like the super weird combination, right?
    1:40:03 Where I’m external focused.
    1:40:06 I’m an extrovert who is intuitive.
    1:40:09 So right there, I’m in the 25%, right?
    1:40:11 Introvert, extrovert, 50/50, I’m in 25%.
    1:40:15 And then I’m in the 30% of men that are feelers.
    1:40:20 So feelers base everything on relationships and values.
    1:40:23 So we feel our way to decision making.
    1:40:26 It’s how will it impact the world around me?
    1:40:28 How will it impact my relationships?
    1:40:29 How will it make people feel?
    1:40:32 Now, again, it’s not like I don’t have a rational side
    1:40:34 and I can’t consider ideas.
    1:40:36 And it doesn’t mean a thinker can’t feel anything.
    1:40:40 That’s not the point.
    1:40:41 The point is, which is the primary lens
    1:40:42 that you look through in life, right?
    1:40:45 Then the last one, which is really interesting
    1:40:47 is lifestyle.
    1:40:48 This is a J versus a P, a judge versus a perceiver.
    1:40:53 And it’s really about how you like to move through the world.
    1:40:58 Do you move through the world in sort of an orderly way?
    1:41:01 Do you like structure?
    1:41:02 Do you like to, you have a decision to make,
    1:41:05 you gather information, you make a decision, you move on.
    1:41:07 Right?
    1:41:08 You like things structured.
    1:41:10 Or are you a maniac like me, who is a perceiver,
    1:41:14 who is kind of open for whatever?
    1:41:16 I loop on things.
    1:41:17 I need to be forced to make a decision.
    1:41:20 I need a deadline to do things.
    1:41:23 And so again, if you understand people
    1:41:25 based on these four parameters,
    1:41:27 then you can really have a lot of empathy.
    1:41:29 Like my wife and I did this personality testing together
    1:41:33 in each other’s presence.
    1:41:34 And I’ll never forget my,
    1:41:37 we’re going through these lists of like,
    1:41:38 are you more like this or are you more like this?
    1:41:39 You know, whatever.
    1:41:40 And she’s like, of course this.
    1:41:43 Like only a maniac would be that.
    1:41:46 And I’m like, yep, I’m the other one.
    1:41:48 And literally at one point she looked over
    1:41:50 and I could tell, but like a look on her face,
    1:41:52 she was like, I have children with this man.
    1:41:54 Like what, who is this, right?
    1:41:56 But again, we’re all in our own heads.
    1:41:58 Like we think that the world works the same way.
    1:42:01 But for us, it created a tremendous amount of empathy.
    1:42:04 Like she, the how I made decisions
    1:42:06 and how she makes decisions.
    1:42:07 By the way, we’re opposite on every single category.
    1:42:09 You can imagine that might create some friction in marriage.
    1:42:12 Same thing in work relationships, right?
    1:42:14 You ask, what do people mostly get wrong?
    1:42:16 I think we get wrong is we assume everyone like us.
    1:42:18 And so if you have a certain attribute set,
    1:42:21 you tend to want to look at the whole world
    1:42:22 through that attribute set and say,
    1:42:24 oh, well everyone I hire should have that attribute set.
    1:42:27 And if they don’t, they’re bad, they’re bad fit.
    1:42:30 Just totally not true.
    1:42:31 And so we think about a lot of this stuff
    1:42:33 as we are recruiting.
    1:42:35 We think about a lot of like, okay,
    1:42:36 what are the things that we’re asking this person to do
    1:42:39 and what type of person would be good for that?
    1:42:42 And then the other one that I’ve really enjoyed
    1:42:46 is Enneagram because it really shows you
    1:42:48 what is your underlying insecurity
    1:42:51 and what are your primary drives?
    1:42:53 So there’s nine numbers and each one has a very different set
    1:42:56 of pluses and minuses, strengths and weaknesses.
    1:43:00 And so when you’re able, again, none of them are perfect.
    1:43:02 You’re not, it’s like, oh, I’m a,
    1:43:04 be personally like I’m a three, two, right?
    1:43:06 Which in Enneagram means I’m an achiever
    1:43:08 and I’m like a kind of a people pleaser.
    1:43:11 I like to serve, which sounds, oh, he’s an achiever
    1:43:14 and likes to serve people like that’s again, like, look at it.
    1:43:17 No, no, no, it comes with huge downsides.
    1:43:18 Like my worst fear is I’m not enough.
    1:43:22 My worst fear is if people knew me, they wouldn’t like me.
    1:43:24 I’m adaptive to other people.
    1:43:26 And so it’s like, do I know the real me?
    1:43:28 Like my serving of others quickly turns into people pleasing.
    1:43:31 – Do you give people personality tests
    1:43:33 as part of the recruiting process?
    1:43:35 – Yeah, we do.
    1:43:36 Yeah, we really, and by the way,
    1:43:37 we don’t automatically axe people as part of that.
    1:43:41 Like it’s not like we’re like,
    1:43:42 oh, if they don’t fit this exact personality then,
    1:43:44 but what it does is it allows us,
    1:43:46 if we’re getting, you know,
    1:43:46 it’s usually when we’re pretty serious with a candidate, right?
    1:43:49 So we’re trying to make sure that we’re,
    1:43:51 we don’t want to do is we don’t want to project onto them
    1:43:53 what we think they are and then come to find out later
    1:43:57 that they’re not actually capable.
    1:43:58 And so when we get really serious kind of down
    1:44:00 to the final like three to five candidates
    1:44:02 is usually when we start testing.
    1:44:04 And they often learn things about it.
    1:44:05 And sometimes we actually had this happen recently.
    1:44:07 Somebody was like,
    1:44:08 I don’t think based on the testing that I went through
    1:44:11 and all that that actually would be good for this job.
    1:44:13 They opted out.
    1:44:14 – I want to switch to acquisitions.
    1:44:16 So I think a good way to dive into the subject is
    1:44:20 what’s the playbook when you take over a company?
    1:44:24 So you go through a process internally,
    1:44:28 you come to a decision.
    1:44:29 Do you guys write memos internally?
    1:44:31 – Yeah, we do.
    1:44:32 – What’s in that memo?
    1:44:33 – So we are describing the,
    1:44:36 what I would call the overall situation of the business.
    1:44:39 Who are they?
    1:44:41 What business are they in?
    1:44:43 How does it work?
    1:44:44 We also think about like,
    1:44:45 what is the core action of the business?
    1:44:47 So oftentimes things,
    1:44:48 our favorite deals are ones that look weird
    1:44:51 or different on the surface.
    1:44:53 There may be a little furry fuzzy things on the deal
    1:44:56 or they’re misunderstood.
    1:44:58 And hence the price and the connection
    1:44:59 between the price and the value is off, right?
    1:45:03 So we’re trying to look for mispriced opportunities.
    1:45:07 And so in order to be mispriced means
    1:45:09 that something about it is either risky
    1:45:12 that we can do your jobs right,
    1:45:15 ’cause assuming we’re correct in how we do this,
    1:45:18 not always correct, but we’re trying,
    1:45:20 means that there’s a divergence between the risk
    1:45:24 and our ability to mitigate it
    1:45:26 and other people’s ability to mitigate it, right?
    1:45:29 Or there’s a lack of information
    1:45:32 that the other parties have based on their ability
    1:45:34 to dive into the weeds on a deal.
    1:45:38 And so we like things that are misunderstood.
    1:45:43 I’ll never forget.
    1:45:44 The second large deal I did was on a pool business
    1:45:48 that we still own.
    1:45:49 We’ve never sold anything.
    1:45:50 So I mean, we still own everything.
    1:45:51 I shouldn’t keep caveatting that.
    1:45:52 It’s not like we’ve sold anything.
    1:45:54 But the pool business,
    1:45:55 I remember talking about it with you back in the day.
    1:45:57 And most pool builders get big
    1:46:00 because they partner with development firms
    1:46:04 and they go through these massive boom and bust cycles,
    1:46:08 massive boom and bust cycles.
    1:46:09 And it’s Feast or Famine all the time.
    1:46:13 The other thing that they do
    1:46:14 is they’re tempted to be vertically integrated
    1:46:16 and do all the work themselves, right?
    1:46:18 ‘Cause you make more money at every step of them,
    1:46:20 you know, in the more margin,
    1:46:21 but you’re constantly then in the booms,
    1:46:24 you’re hiring a tremendous amount of people,
    1:46:25 which creates cultural issues, tremendous liability,
    1:46:28 all kinds of, I mean, it’s just madness.
    1:46:30 Margins end up not being nearly as good
    1:46:32 as you ever think they should be.
    1:46:34 And then in the bust cycles,
    1:46:35 you’re having to let go of a whole bunch of people
    1:46:37 who you wanna keep, but you have no choice
    1:46:39 ’cause the business will implode, right?
    1:46:41 And so there are two unusual things.
    1:46:43 When I first got the deal memo on this,
    1:46:47 I remember thinking to myself like pool builder,
    1:46:50 big pool builder, like largest single location pool builder
    1:46:53 in the country.
    1:46:54 So like at the time, it’s really large.
    1:46:56 And I was like, yep, they partner with,
    1:46:59 they’re probably vertically integrated
    1:46:59 and they probably partner with development firms.
    1:47:02 And like, that’s just not, you know,
    1:47:04 that’s not something we wanna do.
    1:47:06 And then I started asking just a few questions.
    1:47:08 I was like, hey, can you tell me what percentage
    1:47:09 of your revenue is directed to consumer?
    1:47:11 – Yeah.
    1:47:12 – I was expecting it to be, you know, 10% or 15%.
    1:47:15 It was 97%.
    1:47:17 And then I said, oh, interesting,
    1:47:21 like what is your CAPEX capital expenditures
    1:47:23 on an annual basis?
    1:47:25 And it was like microscopic.
    1:47:27 And I was like, weird, tiny CAPEX,
    1:47:30 good free cash flow, direct to consumer.
    1:47:33 So man, that’s a really durable business.
    1:47:35 That’s an example of like the risks we were taking
    1:47:40 and the way that the company appeared.
    1:47:42 Like the core action of that business is
    1:47:44 they are in the business of marketing pools,
    1:47:46 like selling pools and then handling the logistics.
    1:47:49 But they’re, you know,
    1:47:50 they’re subbing out the actual construction,
    1:47:53 the hiring, the firing, the risk, all those things,
    1:47:56 the boom and the bust to other people.
    1:47:58 And that what that creates is a very capital light,
    1:48:02 highly efficient, high cash flow, high durability business.
    1:48:07 That again, everyone else was looking at
    1:48:09 as a quote unquote construction business.
    1:48:12 So other people that may be interested in it
    1:48:14 were turned off and they’re like, no, I don’t want that
    1:48:16 because that’s a,
    1:48:17 I’m gonna put that in the bucket of construction.
    1:48:18 I don’t wanna take that to a, you know,
    1:48:19 my senior partner or to the loan to the investment committee
    1:48:23 and say, hey guys, I think we should buy a mom and pop
    1:48:27 construction business in Phoenix.
    1:48:29 They’re gonna be like, what, the world’s wrong with you.
    1:48:31 Right?
    1:48:32 Versus we look at that and we’re like, ooh,
    1:48:33 that’s really attractive.
    1:48:34 – Yeah.
    1:48:35 – So those are the types of examples.
    1:48:36 We’re trying to put all that into the memo.
    1:48:38 We’re trying to put all in the memo
    1:48:39 the things that we think are holding it back.
    1:48:41 So first principles, like let’s go to kind of
    1:48:44 first principles on a business that we would acquire.
    1:48:46 So this is a business that’s long tenured.
    1:48:48 They’ve been around for on average a long time.
    1:48:52 And they’re still fairly small.
    1:48:55 So something is holding it back.
    1:48:58 We think of it as the kind of lids on the business.
    1:49:00 And we’re trying to figure out why they aren’t bigger.
    1:49:04 Right?
    1:49:05 There’s something, so by definition,
    1:49:07 there is product market fit if we’re acquiring it.
    1:49:09 By definition, there’s some sort of moat.
    1:49:12 So a moat being defined as you can generate
    1:49:14 above average returns on invested capital.
    1:49:16 There’s something unusual about the business
    1:49:18 that has allowed them to get into business,
    1:49:20 build the business into a successful,
    1:49:22 again, minimum sort of $3 million of free cash flow.
    1:49:25 Not a hard and fast rule.
    1:49:27 We’ve done some smaller deals,
    1:49:28 but on average for new platforms, we’re $3 million.
    1:49:31 That means there’s something special about the business.
    1:49:33 It’s really good in some ways.
    1:49:35 And on the flip side, if it’s not bigger
    1:49:39 and it’s been around for a long time,
    1:49:40 there’s something holding it back.
    1:49:43 And so our job is through those memos
    1:49:46 to collect all the findings of where’s the moat,
    1:49:50 why do we think it’s transferrable?
    1:49:52 How durable do we think it is?
    1:49:54 And on the flip side,
    1:49:56 what do we think the opportunities are for growth?
    1:49:58 And make sure that all of that triangulates with price.
    1:50:01 So of course, I had the privilege
    1:50:05 of spending some time with Buffett at one point
    1:50:07 and I asked him this like battery of questions.
    1:50:10 And he kind of, I think at some point got frustrated with me
    1:50:13 being, I was probably being annoying.
    1:50:15 And he said, “Price is my due diligence.”
    1:50:18 And it was kind of like the showstopper drop the mic moment.
    1:50:21 He was like, ’cause I was asking him all kinds of like,
    1:50:23 “How do you think about this?”
    1:50:24 Or, “How do you think about that?”
    1:50:24 And ultimately he was like,
    1:50:25 “I use price as my major due diligence filter.”
    1:50:29 So that was brilliant.
    1:50:30 It’s like this simple heuristic.
    1:50:32 Like the higher the price you pay for it,
    1:50:33 the more you’re pricing it to perfection,
    1:50:35 the more things have to go right,
    1:50:36 the lower the price, the more you can absorb things.
    1:50:38 And so we are, because of the nature
    1:50:41 of these being smaller companies, they’re messy.
    1:50:45 They’ve got some weird stuff going on usually
    1:50:48 in these things, they’re not bigger.
    1:50:50 So there must be some lids on these things.
    1:50:52 We’re trying to figure that out
    1:50:52 and then we’re trying to correlate that to price.
    1:50:54 And the cool part is after closed,
    1:50:56 like all the problems are merely opportunities.
    1:50:58 I try to remind our team of this all the time
    1:50:59 ’cause you get in these operating situations.
    1:51:01 So you’re like, “Whoo, there’s a lot going on.”
    1:51:04 Like sometimes relationships are very strained.
    1:51:06 There’s weird power dynamics, all these stuff’s going on.
    1:51:08 And I say to them, “Yeah, it’s hard,
    1:51:10 but this is what we get paid to do.”
    1:51:12 Like we’re in the business of shaving fur.
    1:51:14 – So do you have projections in this moment?
    1:51:18 – Yeah, we’re, you’d like do three scenarios,
    1:51:21 like base, upside, downside,
    1:51:23 or how do you think about that?
    1:51:25 – Yeah, we’re trying to stress test
    1:51:26 where we think based on the history of the business,
    1:51:30 it’s going, often assuming for most of the deals we do,
    1:51:34 that there is no growth.
    1:51:35 So we want the business to underwrite
    1:51:37 with no change in trajectory.
    1:51:39 If it can’t stand on its own,
    1:51:41 like we’re not big on quote unquote synergies,
    1:51:44 we’re not big on trying to do this massive change.
    1:51:46 Like if you’ve, if the business has been operating
    1:51:48 a certain way on a certain trajectory for 30 years,
    1:51:51 it is nothing but hubris to come in
    1:51:54 and think that within a short period of time,
    1:51:56 you can completely change the trajectory of the business.
    1:51:58 It can happen.
    1:51:59 There are some tricks and some outside perspective
    1:52:03 that you can kind of look and see
    1:52:05 and run a playbook from time to time.
    1:52:07 But for the most part, like there’s no easy solutions.
    1:52:10 Like I was talking with a Harvard educated search,
    1:52:13 searcher the other day, actually I said the other day,
    1:52:17 it’s probably a year and a half ago
    1:52:19 and bought a business and had all these grand plans.
    1:52:23 I was gonna, he was gonna introduce all this technology,
    1:52:26 all these like changing systems.
    1:52:27 It was an old school business.
    1:52:29 And he was gonna, you know, revolutionize with technology.
    1:52:31 And this is kind of like, if you go on Twitter, the,
    1:52:34 you know, I don’t know what we call it or wherever,
    1:52:36 the group of people that are trying to do this SMB land
    1:52:40 or whatever, this is often the dominant narrative
    1:52:43 of people who haven’t done it, right?
    1:52:46 So people who haven’t actually been in the weeds,
    1:52:48 who haven’t bought a business,
    1:52:49 who haven’t tried to change it is like,
    1:52:50 this is super simple.
    1:52:51 You buy things for cheap, huge amount of upside,
    1:52:54 you go in and you transform them.
    1:52:56 – These guys are idiots.
    1:52:57 – Yeah, these guys are idiots.
    1:52:58 They don’t know what they’re doing.
    1:52:59 It’s like, dude, yeah, you may have been to Harvard.
    1:53:02 You may be well educated.
    1:53:03 That guy’s been working in the business for 30 years.
    1:53:05 Do you not think that he knows
    1:53:07 at everything you know and far more?
    1:53:09 – Of course not.
    1:53:10 So anyway, this guy came in,
    1:53:12 he had all these grand plans and I talked to him about,
    1:53:14 I don’t know, a year later, this is like six months ago.
    1:53:16 And I was like, how’s all that going?
    1:53:19 And he was like, oh my gosh, I haven’t done anything
    1:53:22 that I wanted to do.
    1:53:23 I was like, oh, interesting, tell me about that.
    1:53:25 And look, the business is actually doing well.
    1:53:27 Like he’s glad he bought it, but how it went post-close
    1:53:31 was not filled with, oh man, this is perfect.
    1:53:34 Now we can hit this huge growth trajectory or whatever.
    1:53:36 He’s like, yeah, our servers went out
    1:53:38 like the second day on the job, the phones don’t work.
    1:53:41 We have all these issues, you know,
    1:53:44 the head of sales left shortly thereafter had to replace.
    1:53:47 You know, it’s like this constant fire fighting mode.
    1:53:51 It’s running a business.
    1:53:52 The only people who think buying a business
    1:53:55 and operating it are easy.
    1:53:58 Most of the people have never done it.
    1:54:00 There’s a small group of people
    1:54:01 who got lucky the first time.
    1:54:03 – Yeah.
    1:54:03 – And usually the second and third time they get smoked.
    1:54:05 I mean, look, we took the better part of a decade,
    1:54:08 toiling away in obscurity, doing things like, you know,
    1:54:11 I joke that like we were running the world’s smallest
    1:54:13 family office for a good amount of time there.
    1:54:15 Just slowly compounding, trying to learn systems,
    1:54:18 trying to get, I mean, we were just getting
    1:54:20 smacked around constantly.
    1:54:22 But that then allowed us through that decade
    1:54:24 to get good at this.
    1:54:26 And then we were able to scale.
    1:54:27 Like if I had been given $50, $100 million
    1:54:31 right out of the gate, I would have lost every penny.
    1:54:34 – Yeah.
    1:54:35 – And this market is so inefficient,
    1:54:37 which is by the way, good and bad.
    1:54:39 Inefficiency being defined as can you make a lot of money
    1:54:42 or lose a lot of money, depending on skill, right?
    1:54:44 So like argument is, if I gave you a million dollars
    1:54:47 to invest in the stock market and I said,
    1:54:49 hey, I’m gonna let you keep everything you lose, right?
    1:54:53 So lose as much money as you can.
    1:54:54 And I’ll give you 60 days to try to lose as much money
    1:54:56 as you can in the stock market.
    1:54:57 – Yeah.
    1:54:58 – It’d be really difficult for you to lose a lot of money.
    1:55:00 – Yeah.
    1:55:01 – In fact, you might end up making money.
    1:55:02 In the private markets, like give me 48 hours
    1:55:05 and I can lose a million dollars.
    1:55:07 Like it’s super easy, right?
    1:55:09 Which means skill really matters,
    1:55:10 which means if you wanna have it as a career,
    1:55:13 there’s a lot of value in honing your skillset.
    1:55:16 So to me, that’s the ultimate mode,
    1:55:18 is it’s very simple what we’re trying to do.
    1:55:20 It’s just really, really hard and judgment matters.
    1:55:23 And so that’s the reason why we put everything
    1:55:24 out on the internet.
    1:55:25 Like we literally have our entire playbook on the internet.
    1:55:27 Like you can go on the Permanent Equity website
    1:55:29 and you can see our entire due diligence toolkit.
    1:55:32 Like not only just the questions we ask,
    1:55:34 but the why underneath each question.
    1:55:36 Why would we do that?
    1:55:38 Doesn’t that spark a bunch of competitors?
    1:55:40 Doesn’t that help a bunch of people?
    1:55:42 Yeah, sure.
    1:55:43 – Helps everybody.
    1:55:44 – Helps everyone.
    1:55:45 – Yeah.
    1:55:46 – And we’re stewards and we’re unconcerned.
    1:55:48 There’s abundance.
    1:55:48 – Do you go back a year later
    1:55:51 or is there a milestone, like a predictable milestone
    1:55:53 where you go back and you review this memo
    1:55:56 and now you’ve owned the business for a while
    1:55:58 and like what can we learn?
    1:55:59 – Yeah, we actually do this quarterly.
    1:56:01 So every single quarter we have, we call them baseball cards.
    1:56:06 They’re like one pagers, maybe a little bit longer
    1:56:09 than one pagers that explain the overall strategy,
    1:56:12 the overall purchase price, the rate of return so far,
    1:56:15 where we’ve done well for the wrong reasons,
    1:56:18 where we’ve done well for the right reasons, vice versa.
    1:56:21 So it’s like the entire memo is a constantly updated
    1:56:24 living document of every single investment
    1:56:27 we’ve ever made and how we’re doing.
    1:56:28 – Almost like value line for your businesses.
    1:56:31 – Yeah, for sure.
    1:56:33 And like, but here’s the thing is,
    1:56:34 how would we do it any other way?
    1:56:36 – Yeah.
    1:56:36 – Like if we’re in the business of investing,
    1:56:39 of buying small private companies,
    1:56:42 trying to make them better, we’ve got to learn.
    1:56:45 We got to get better.
    1:56:46 Like how would we know if we were getting better or not?
    1:56:49 How would we know, how would we learn
    1:56:51 if we weren’t doing a look back?
    1:56:53 So I mean, to me, it’s just, of course, obvious.
    1:56:56 And I mean, look, if we’re not good at what we do,
    1:56:58 we should do something else.
    1:56:59 Like don’t waste this life doing things
    1:57:01 that you aren’t good at.
    1:57:03 For God’s sake, it’s like, that’d be terrible.
    1:57:05 – Do the CEOs make that baseball card or does the,
    1:57:09 ’cause you guys, what’s your structure?
    1:57:10 You have a, almost like a portfolio managers
    1:57:12 in charge of multiple CEOs.
    1:57:14 – Yeah, so right now our structure is,
    1:57:16 we have a dual hook and structure post-close,
    1:57:17 where our financial team
    1:57:18 and their financial team hook together.
    1:57:20 And we’re constantly getting feedback loops
    1:57:22 of what I’d call information from that.
    1:57:23 So our goal with our financial team
    1:57:26 is keeping scores the easy part.
    1:57:29 The hard part is getting actionable, real-time information
    1:57:34 to all the stakeholders to make good decisions.
    1:57:36 So that’s their primary role is to help those companies,
    1:57:39 which by the way, this idea is completely foreign.
    1:57:41 We come into most of these small businesses
    1:57:43 and they’re like, yay, we give all our stuff
    1:57:45 to this accountant and the accountant tells us how we did.
    1:57:48 We’re like, sure, that’s not what we’re talking about at all.
    1:57:50 What we’re talking about is on a day-to-day,
    1:57:52 week-to-week basis, what are the metrics you’re looking at,
    1:57:55 how accurate are they, how updated are they?
    1:57:58 How can you make decisions, right?
    1:58:00 So we’ve got that group that’s working with them
    1:58:02 to try to increase the quality of those feedback loops.
    1:58:04 And then we’ve got, what I call like a board of directors
    1:58:06 in a box model, where there’s one point person
    1:58:09 for permanent equity that accesses all the resources
    1:58:12 of permanent equity, kind of is the Sherpa,
    1:58:14 the guide for the person internally.
    1:58:16 So, oh, you’ve got an issue with marketing
    1:58:18 or you need help with that.
    1:58:19 Like we’ve got external internal resources,
    1:58:21 recruiting external internal resources,
    1:58:23 legal external internal.
    1:58:24 So we’ve got all these sort of helpers that we have
    1:58:28 and that person’s job is to help direct them
    1:58:29 as well as govern the business.
    1:58:32 Those are updated based on the constant feedback loops
    1:58:35 of the business over that quarter,
    1:58:37 in concert with the leadership teams,
    1:58:38 but we’re mostly doing the authorship of them.
    1:58:41 – And then you don’t step in and like start issuing directives.
    1:58:44 You want the finance plugged in
    1:58:46 and you want the metrics that they’re looking at
    1:58:48 or you want specific metrics for you or both?
    1:58:51 – We want information every which way, the more high signal.
    1:58:55 We’re trying to separate the signal from the noise, right?
    1:58:57 So there’s tremendous amounts of information
    1:58:59 being thrown off of these businesses that doesn’t matter.
    1:59:01 We’re trying to get down to a handful of metrics
    1:59:03 that we can agree on that the leadership team and us,
    1:59:07 that we’re working in concert
    1:59:08 to understand what they’re telling us.
    1:59:11 That’s actually one of the most difficult things post-close
    1:59:13 is just getting on the same page about what matters.
    1:59:15 – Totally.
    1:59:16 – And when does it matter?
    1:59:17 And again, we’re coming in, hopefully with high humility,
    1:59:20 saying you all are the experts, we’re not.
    1:59:23 But we’re asking questions, like, okay, well,
    1:59:25 if that’s the business model, wouldn’t it make sense
    1:59:27 that this would be like a leading indicator?
    1:59:29 And sometimes it’ll be like, no, we’re like, oh, interesting.
    1:59:33 Tell us why, right?
    1:59:35 We try to come out from that perspective
    1:59:36 as like instead of just telling them what we want to see.
    1:59:39 Like, do you think this would be helpful?
    1:59:40 Are you like, what are you looking at and why?
    1:59:43 Why aren’t you looking at this?
    1:59:43 Why are you looking at this?
    1:59:44 How does this work?
    1:59:45 Again, this is not rocket science.
    1:59:46 Like this is like treat people as humans,
    1:59:48 be humble, be kind, be long-term.
    1:59:52 Things usually work out.
    1:59:53 – Do you do anything within the business
    1:59:56 from otherwise from the first day
    1:59:58 or you’re just sort of,
    1:59:59 what’s the reporting cadence back to you?
    2:00:00 Is it weekly, monthly, quarterly?
    2:00:04 – Yeah, so we are usually in touch on a weekly basis,
    2:00:07 depending on if we’re going through periods
    2:00:09 of negative change or positive change,
    2:00:12 then we’re more active and helpful, being supportive,
    2:00:15 being corrective, maybe, if we need to be.
    2:00:18 If things are in the box, smooth sailing,
    2:00:22 no storms on the horizon,
    2:00:24 then we can be a lot less hands-on.
    2:00:26 We always tell our leaders like,
    2:00:28 we’re always available, everyone has your cell phone.
    2:00:30 Like, you can get in contact.
    2:00:32 We’re the easiest people in the world
    2:00:33 to get in contact with.
    2:00:34 Running a business is lonely.
    2:00:36 If you’ve never run a business,
    2:00:37 if you’ve never been in the CEO spot,
    2:00:40 you can look up from in the organization
    2:00:43 and it looks rosy.
    2:00:45 Oh, look, that person gets paid a lot more.
    2:00:47 Look at all the freedom they have.
    2:00:49 Oh, I want to be the one to set vision and whatever.
    2:00:51 Looking down from that position,
    2:00:53 there’s usually no one to share sorrow with.
    2:00:56 There’s no, you know, frustrations.
    2:00:58 Like, you’re isolated.
    2:01:00 And so one of the things we do
    2:01:01 is just try to be relationally connected
    2:01:04 and offer to be a release valve
    2:01:06 for the very natural human tendencies we have
    2:01:09 to be seen and heard and blow off steam
    2:01:12 and consult on difficult situations.
    2:01:15 You know, again, it’s interesting
    2:01:18 going back to like the personality typing.
    2:01:20 You know, we try to understand for our CEOs
    2:01:22 if they’re internal or external processors.
    2:01:24 That’s a really important piece.
    2:01:26 If you’re a CEO as an internal processor,
    2:01:29 then you can go away with your thoughts and be fine.
    2:01:32 If you’re an external processor and you’re the CEO,
    2:01:35 you have no one to externally process with
    2:01:37 or you end up creating inappropriate relationships
    2:01:39 with people who work for you.
    2:01:41 So that’s fraud.
    2:01:42 So that’s one of the things that we can do
    2:01:44 is if we’re adept at that and understanding the people,
    2:01:47 then we can say, hey, that person’s an external processor,
    2:01:49 hey, they need somebody to talk to.
    2:01:51 Come talk to us.
    2:01:52 Let’s work through things.
    2:01:54 The only things I would say is we’re aggressive
    2:01:56 about post-close in the short term
    2:01:58 is if there’s just any laws being broken.
    2:02:00 Which sounds funny to say,
    2:02:03 my guess is 80% of the small businesses out there
    2:02:08 are either knowingly or should know
    2:02:10 that they’re breaking some sort of rules.
    2:02:12 There’s a lot of government regulation
    2:02:14 depending on the state you’re in.
    2:02:15 And often by the way, federal regulation,
    2:02:17 state regulation and local regulation
    2:02:19 will oftentimes conflict with one another.
    2:02:22 And it requires a tremendous amount of background
    2:02:24 and understanding to know how to be in compliance.
    2:02:28 – I wish they’d simplify this.
    2:02:31 I mean, the amount of stuff you have to keep up with
    2:02:34 is just insane. – It’s astonishing.
    2:02:36 – Yeah.
    2:02:37 – Why don’t you do a totally hands-off model like Buffett?
    2:02:41 – This is, it would miserably fail.
    2:02:43 – In the scale of business you’re dealing with.
    2:02:44 – Why would that fail?
    2:02:45 – People get divorced, people have health issues,
    2:02:48 people die, people lose interest.
    2:02:52 Things are constantly changing.
    2:02:54 The ability to self-replicate is unbelievably rare.
    2:02:58 And the reason why we are in the position we’re in
    2:03:00 to be able to buy these businesses
    2:03:02 is because we are the best option
    2:03:04 for the business to transition.
    2:03:06 Oftentimes there isn’t a family member
    2:03:10 who has the capacity or either financial capacity
    2:03:13 or talent capacity to be able to do it
    2:03:15 or some combination of both.
    2:03:17 And these businesses are not ones
    2:03:18 that you can just like leave alone.
    2:03:20 Like there’s no passive income
    2:03:22 in working in small business land.
    2:03:24 Another way to think about it is like,
    2:03:25 you know, sort of buying an index of small businesses, right?
    2:03:27 I mean, from time to time is like people come up with this
    2:03:29 idea of like, oh, what if you just put like a thousand dollars
    2:03:32 with, you know, a thousand of these small businesses
    2:03:35 and created like a index?
    2:03:37 The reality is over a long period of time that index is zero.
    2:03:39 Like it’s really hard.
    2:03:39 The governance of these things is difficult.
    2:03:42 Like the norm for most small businesses is entropy,
    2:03:46 is decay, is dying slow death and being wound down.
    2:03:50 Like that’s a norm in the small business world.
    2:03:53 You have to fight to grow.
    2:03:54 It takes dynamic leadership.
    2:03:55 It takes vision.
    2:03:56 It takes risk taking.
    2:03:57 It takes capital.
    2:03:59 It takes mitigating risk.
    2:04:00 You’re doing all these things.
    2:04:04 And so yeah, the ability to do that is non-existent
    2:04:09 in our area of the market.
    2:04:10 And by the way, having spent time with both Buffett and Munger,
    2:04:13 they would say the same thing.
    2:04:14 – Go deeper on this.
    2:04:15 – So when you look at them early on in their journey,
    2:04:19 so this is like, let’s go back to the Buffett partnership.
    2:04:21 Let’s go back to actually when Buffett first met Munger.
    2:04:24 Buffett was invested in Sanborn Maps and Dempstra Mill.
    2:04:27 Those are the two primary investments.
    2:04:28 I think this represented 70 or 75% of the assets
    2:04:31 of the Buffett partnership.
    2:04:33 One of the things that Buffett and Munger connected
    2:04:34 very early on about was struggling businesses.
    2:04:39 Was struggles he was having with those two businesses.
    2:04:43 The story I think it’s been told a number of times,
    2:04:45 but is not often remembered because where they are now,
    2:04:50 there’s been like five seasons of Berkshire.
    2:04:52 And where they are now bears zero resemblance
    2:04:55 to where they were in the early days.
    2:04:57 Where they were in the early days is where we are.
    2:04:58 Where we like to play.
    2:04:59 And this is where again, by the way,
    2:05:00 they said they generate the highest returns.
    2:05:03 Smallest amount of capital, highest returns,
    2:05:04 being able to access small companies.
    2:05:07 But Dempstra Mill was a disaster.
    2:05:10 Like Buffett had gotten sideways
    2:05:11 with relationally with people.
    2:05:14 And he was kind of desperate.
    2:05:17 – Yeah.
    2:05:18 – And he met this guy, Charlie Munger,
    2:05:20 who he started to develop a relationship with.
    2:05:22 I mean, they actually talked about it
    2:05:23 at the annual meeting this year.
    2:05:25 Kind of how they got together
    2:05:27 and they had a family that brought them together.
    2:05:28 And when they met each other, it was like Kendred Spirits.
    2:05:30 They stayed in touch.
    2:05:31 And one of the things that Munger asked Buffett was,
    2:05:34 what problems are you facing?
    2:05:36 And Buffett was like, oh, I’ve got this business
    2:05:39 that like, I don’t know what we’re gonna do.
    2:05:41 It’s upside down.
    2:05:42 Sandborn Maps is a whole different story.
    2:05:43 And it was kind of upside down
    2:05:44 in a different way that worked out.
    2:05:46 But Dempstra Mill was just a mess.
    2:05:48 Like he needed somebody to go to the middle of Iowa.
    2:05:51 I think it was Iowa.
    2:05:53 And fix this company and get it fixed up
    2:05:56 and make money at that business.
    2:05:57 And he’s like, he didn’t have anybody.
    2:05:59 ‘Cause he was a stock investor, past investor
    2:06:02 and become activist and active in that business
    2:06:05 by the nature of how much stock he bought.
    2:06:07 And again, this is where the balance sheet was stuffed.
    2:06:10 Like they had a lot of resources, low free cash flow yield,
    2:06:12 all these things that we get access to as well
    2:06:15 in our area of the market.
    2:06:16 He got access to then in his area of the market, right?
    2:06:19 Things just don’t work out.
    2:06:20 And so you get sideways, operating issues,
    2:06:23 the value of the business that starts to go pear shaped.
    2:06:26 And so he got in touch with Munger and Munger said,
    2:06:28 hey, I know this guy, Harry Bottle.
    2:06:30 This is a famous Harry Bottle story.
    2:06:32 They convinced Harry Bottle to move his family
    2:06:34 from Los Angeles to the middle of nowhere,
    2:06:36 middle of the heartland.
    2:06:37 Harry Bottle fixed the business.
    2:06:39 They ended up selling it.
    2:06:40 And that, I mean, Buffett said,
    2:06:44 without Harry Bottle, without Charlie Munger,
    2:06:47 without a few of these things going a different way early on,
    2:06:49 there is no Berkshire, there is no Warren Buffett,
    2:06:51 there is no institution the way it is today.
    2:06:54 One is good to acknowledge just how much luck plays
    2:06:57 in our role and all this stuff, right?
    2:06:59 I mean, like a big part of humility is just acknowledging,
    2:07:01 like we’re far less in control than we really think we are.
    2:07:04 Also, when things do happen and you do see a need,
    2:07:07 talk about it, voice it, see how you can access
    2:07:12 people and resources.
    2:07:13 And so I would just argue that no one can take a business
    2:07:18 that’s small, loosely functioning,
    2:07:21 sometimes makes money and leave it alone.
    2:07:24 These are highly variable assets with very difficult
    2:07:27 attributes about them and it’s a knife fight.
    2:07:29 – The other story is like Berkshire Hathaway, right?
    2:07:31 If you think he was hands off and not talk,
    2:07:34 I think it was Malcolm Chase who took it over?
    2:07:36 – Yeah. – Yeah.
    2:07:37 Like they were talking daily and he wouldn’t let them
    2:07:40 reinvest in the business, but he knew the numbers better
    2:07:42 than Chase did and he still knows the numbers better
    2:07:45 than I would imagine a lot of the operating CEOs do.
    2:07:48 – For sure.
    2:07:49 I mean, Buffalo News, like they were,
    2:07:51 Buffett and Munger were very, very active
    2:07:54 in many of their situations.
    2:07:56 Now, as they’ve gotten into massive businesses that are,
    2:07:59 you know, you’re hiring really high-powered,
    2:08:01 really paid, high-paid operators,
    2:08:03 like they’re gonna be better at operating than they are.
    2:08:06 So I mean, at a certain point, like it flips
    2:08:09 and you have such an access to capital
    2:08:11 and such a need for size that some of those problems
    2:08:14 take care of themselves.
    2:08:15 Now you got the other problem, which is the fact
    2:08:17 that Berkshire hasn’t beat the market in 20 years,
    2:08:20 25 years now.
    2:08:21 Well, why?
    2:08:22 Because they’re so freaking big.
    2:08:24 So you got, I mean, there’s problems either way
    2:08:26 and there’s pluses and minuses either way.
    2:08:28 – You just choose, I mean.
    2:08:29 – You just get to choose which one you wanna engage in.
    2:08:30 – Where do people go wrong doing what you’re doing
    2:08:33 as they scale?
    2:08:34 – They try to go too fast, too soon,
    2:08:38 assuming they know too much.
    2:08:40 So we, from the time we bought the first business
    2:08:45 to the time I bought the second business was four years.
    2:08:47 Four years of toiling away and correcting and learning
    2:08:51 and trying to get a good foundation of capital
    2:08:53 and into position to do the next deal.
    2:08:56 Now we were looking for deals in between,
    2:08:58 but it’s hard buying one business,
    2:09:02 one small, medium-sized business, negotiating it,
    2:09:05 documenting it, closing it, operating it
    2:09:08 and having some sort of either through distributions
    2:09:11 or through a sale, positive outcome.
    2:09:14 One time is brutally difficult.
    2:09:17 It is a brutally difficult thing to do.
    2:09:19 Now it gets to do that again and again and again.
    2:09:22 And oh, by the way, this is an interesting dip that happens
    2:09:26 where, so now you’ve got, let’s say,
    2:09:28 you’ve done this three times, three brutally difficult
    2:09:30 and you’ve just now cash flowed them
    2:09:32 so you still retain them.
    2:09:34 So now you’ve got a portfolio of three companies.
    2:09:36 Well, now you can’t be a CEO of three companies.
    2:09:38 I guess unless you’re Elon Musk and, you know,
    2:09:41 somehow he’s figured out how to do this,
    2:09:43 but most normal people can’t even operate one business
    2:09:46 well, let alone two or three.
    2:09:48 So you got to make a choice.
    2:09:49 Okay, well now I’m going to take my free cash flow
    2:09:51 from three of these companies
    2:09:52 and I’m going to build a layer of overhead
    2:09:55 to be able to then scale and manage.
    2:09:57 So somebody’s got to be out there looking for deals,
    2:10:00 interacting with capital partners,
    2:10:02 diligence really matters, legal due diligence,
    2:10:04 financial due diligence, technology due diligence.
    2:10:06 Somebody’s got to be managing all of that,
    2:10:08 documenting it, negotiating that process
    2:10:10 all the way through, and then of course,
    2:10:12 post-close operating these things, right?
    2:10:14 A lot to worry about.
    2:10:15 Oh, and by the way, you got regulators
    2:10:17 all mixed in there as well.
    2:10:18 There’s a lot of places to hit a pothole.
    2:10:22 And so you say, whew, I’m working 100 hours a week,
    2:10:25 every week.
    2:10:26 And yeah, we’re making a bunch of money,
    2:10:27 things are going great, I’m making up a scenario.
    2:10:30 But now you’ve got to basically take all of your earnings,
    2:10:33 all the free cash flow of your business,
    2:10:35 and go to zero again.
    2:10:36 So you started zero or very little, you invested,
    2:10:40 you do well, you do well, you do well,
    2:10:41 you run the gauntlet two or three times.
    2:10:44 Now you got to go back to zero,
    2:10:46 because you got to take all your free cash flow
    2:10:47 and you got to reinvest it in that next layer.
    2:10:50 That’s brutally difficult.
    2:10:52 Now you’ve got to hold another set of issues.
    2:10:53 Now you’ve got meta problems at the head level.
    2:10:58 Now you’ve got personnel issues.
    2:11:00 Now you’ve got culture problems.
    2:11:02 Now you’ve got technology issues.
    2:11:03 And now you’ve got an operating business
    2:11:06 that’s trying to operate businesses.
    2:11:08 And you’ve got the same issues in the operating business,
    2:11:11 the parent co, as you do in all the smaller businesses.
    2:11:15 It’s brutally difficult.
    2:11:18 And then you go through another phase where you’re like,
    2:11:20 okay, now we’ve got a tight group of people,
    2:11:22 it’s a small group.
    2:11:23 Now we’ve got three or four or five companies, maybe six.
    2:11:26 Well, now you’ve got to build a much larger organization.
    2:11:29 You got to go through the whole cycle again.
    2:11:30 So every time on the way at the cycle up,
    2:11:33 you’ve got to pass through this gauntlet of–
    2:11:36 – Over and over.
    2:11:37 – Over and over and over again.
    2:11:40 I mean, it is a miracle that permanent equity
    2:11:43 has 15 companies.
    2:11:45 It’s a miracle, it’s a miracle that we have a team
    2:11:48 that for the most part loves each other
    2:11:50 and cares about each other and wants to do good things.
    2:11:52 Like it’s literally, down a day goes by,
    2:11:54 I don’t think it’s a miracle.
    2:11:56 And by the way, the future is not secure.
    2:11:58 Like we might screw up badly.
    2:12:01 And so there’s always work to be done.
    2:12:04 There’s no free lunch, nothing’s easy.
    2:12:06 – So why do you do what you do, given all of that?
    2:12:09 – I think I have the best job in the world.
    2:12:11 I get to meet extraordinary people
    2:12:16 from very different cultures around the United States.
    2:12:19 One day we’ll be doing a dinner in New York
    2:12:23 at a Michelin-starred restaurant.
    2:12:24 The next day we’re eating at Hardee’s in the middle of Ohio.
    2:12:28 We will go from Oregon to Florida to New Mexico.
    2:12:32 The cultures are different.
    2:12:33 The food’s different.
    2:12:34 The people are different.
    2:12:36 The businesses are all different.
    2:12:39 I mean, I can’t imagine that.
    2:12:40 I mean, we have a blast doing what we do.
    2:12:43 And it’s hard and it’s stressful and it’s tiring.
    2:12:47 Why do I do it?
    2:12:48 Because I feel called to help families transition.
    2:12:51 I feel called, I mean, like, in my paradigm,
    2:12:55 as a Jesus follower, work is pre-fall.
    2:12:57 Work is for our good.
    2:12:58 Work is something we should engage in deeply.
    2:13:01 This is our co-creation that we get to do.
    2:13:04 And I feel that.
    2:13:05 Like, I feel that on a daily basis
    2:13:07 and there’s thistles and thorns and it’s difficult
    2:13:09 and it’s fallen and it’s broken and it’s messy.
    2:13:11 And so that’s life though.
    2:13:14 Like, that’s what we get to do.
    2:13:14 And like, I can’t imagine a better job
    2:13:16 than getting to serve the families
    2:13:18 and the institutions that give us capital
    2:13:20 that trusts with their capital for 30 years.
    2:13:22 The amount of trust that they have with us
    2:13:24 to give somebody capital for 30 years.
    2:13:26 There’s nothing you can get back 30 years.
    2:13:29 I don’t take that lightly.
    2:13:30 That’s incredible.
    2:13:32 I feel honored that somebody would trust us that much.
    2:13:35 I want to serve them.
    2:13:36 I want to serve them well.
    2:13:37 The families that sell us their life’s work.
    2:13:40 Sometimes generational work.
    2:13:42 Like, that is a heavy burden in some ways
    2:13:46 and what an honor in other ways.
    2:13:48 And then all of the people who we get to work with
    2:13:50 who are trying to be as excellent
    2:13:52 as they can at their craft.
    2:13:54 Like, I get to interact with so many interesting people
    2:13:59 and we get to do such interesting things.
    2:14:00 And I don’t know.
    2:14:02 Like I said, I think I did the best job in the world.
    2:14:04 – We always end on the same question,
    2:14:08 which is, what is success for you?
    2:14:10 – Success would be to be an ambassador
    2:14:14 of the kingdom of God.
    2:14:16 My life transformed when I became a follower of Jesus
    2:14:20 and I’ve been rescued
    2:14:24 and the thing that I want to do most is to,
    2:14:27 we’re called to love and serve people around us.
    2:14:31 We worship a God who condescended himself
    2:14:36 into the physical realm,
    2:14:38 who’s the author who wrote himself
    2:14:39 into the ultimate book of reality
    2:14:42 and came to serve, not to be served,
    2:14:46 and to rescue.
    2:14:49 I want to, with that same love that I’ve been given,
    2:14:53 give that to other people and serve them well.
    2:14:58 – What a beautiful way to end this conversation.
    2:15:00 Thank you.
    2:15:02 (upbeat music)
    2:15:04 – Thanks for listening and learning with us.
    2:15:10 For a complete list of episodes, show notes, transcripts,
    2:15:14 and more, go to fs.blog/podcast
    2:15:18 or just Google the Knowledge Project.
    2:15:21 Recently, I’ve started to record my reflections
    2:15:24 and thoughts about the interview after the interview.
    2:15:27 I sit down, highlight the key moments that stood out for me
    2:15:30 and I also talk about other connections to episodes
    2:15:33 and sort of what’s got me pondering
    2:15:35 that I maybe haven’t quite figured out.
    2:15:37 This is available to supporting members
    2:15:39 of the Knowledge Project.
    2:15:40 You can go to fs.blog/membership,
    2:15:44 check out the show notes for a link
    2:15:46 and you can sign up today.
    2:15:47 And my reflections will just be available
    2:15:49 in your private podcast feed.
    2:15:51 You’ll also skip all the ads at the front of the episode.
    2:15:54 The front of my street blog is also where you can learn more
    2:15:56 about my new book, “Clear Thinking,”
    2:15:58 turning ordinary moments into extraordinary results.
    2:16:02 It’s a transformative guide that hands you the tools
    2:16:05 to master your fate, sharpen your decision-making,
    2:16:08 and set yourself up for unparalleled success.
    2:16:11 Learn more at fs.blog/clear.
    2:16:15 Until next time.
    2:16:16 (gentle music)
    2:16:19 (gentle music)
    2:16:21 [BLANK_AUDIO]

    Succeeding in both life and business is very difficult. The skills needed to scale a company often clash with those required to cultivate a thriving home life. Yet, Brent Beshore seems to have cracked the code—or at least he's actively working on it. In this conversation, he spills his secrets on excelling in both arenas.

    This episode is split into two parts: the first 45 minutes covers life and how to be a better person. Brent opens up about the evolution of his marriage, physical health, and inner life.

    The rest of the episode focuses on business. Shane and Beshore discuss private equity, how to hire (and when to fire) CEOs, incentives, why debt isn’t a good thing in an unpredictable world, stewardship versus ownership, and why personality tests are so important for a functional organization.
    After beginning his career as an entrepreneur, Brent Beshore founded Permanent Equity in 2007 and leads the firm as CEO. He works with investors and operators to evaluate new investment opportunities.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠⁠

    Sponsors:

    Shopify: Making commerce better for everyone. https://www.shopify.com/shane

    Protekt: Simple solutions to support healthy routines. Enter the code ”Knowledge” at checkout to receive 30% off your order. https://protekt.com/knowledge

    Timestamps:

    (00:00) Intro

    (05:08) Why Brent examined his life

    (09:44) How Brent ”fixed” his relationships

    (20:04) How helping hurts

    (32:13) How Brent was subtly controlling relationships

    (40:36) Why Brent stopped drinking (mostly)

    (50:29) How to run a business with love yet competitively

    (01:00:34) Win-win relationships

    (01:05:34) On debt

    (01:19:28) On incentives

    (01:29:08) How to hire and fire CEOs

    (01:34:18) What most people miss about hiring

    (01:44:19) Brent's playbook for taking over a company

    (01:51:20) On projections

    (01:55:52) Revisiting investments

    (01:58:44) How ”hands-off” is Brent?

    (02:08:34) Where people go wrong in private equity

    (02:14:07) On success

  • #195 Morgan Housel: Get Rich, Stay Rich

    AI transcript
    0:00:00 Not having FOMO is the single most important financial skill.
    0:00:04 I think it’s so important that you cannot ever imagine
    0:00:06 accumulating significant wealth over your lifetime
    0:00:08 if you are susceptible to FOMO.
    0:00:10 Like if there’s literally one thing,
    0:00:12 like one trait that you want that’s going to allow you to accumulate wealth,
    0:00:15 it’s the lack of FOMO.
    0:00:17 Why do index funds work so well?
    0:00:19 Two reasons. One is it’s always going to be the case
    0:00:21 that a very small number of stocks account for the majority of returns.
    0:00:25 The other is, I think, the… whether it’s like an investing debate
    0:00:29 or a saving or spending debate, they’re not actually debating.
    0:00:31 It’s people with different personalities talking over each other.
    0:00:34 And once you come to terms with that, there’s not one right answer for any of this.
    0:00:38 What’s the difference between being rich and being wealthy?
    0:00:40 Rich is when you have enough money to make your mortgage payment,
    0:00:43 make your car payment, you can pay off your credit card bill every month.
    0:00:46 Wealthy, I think, is when you have a degree of independence and autonomy.
    0:00:50 The weird thing here is that wealth is the money that you don’t spend.
    0:00:53 Let’s switch gears and talk about reading and writing.
    0:00:56 How do you select what you read?
    0:00:58 I heard this idea I think it was from Patrick O’Shaughnessy many years ago who said,
    0:01:01 “You want a wide funnel and a tight filter.”
    0:01:04 You’re one of the best storytellers of our generation.
    0:01:06 Teach me how to tell a story like Morgan Housel.
    0:01:10 I think it’s two things. One is…
    0:01:13 [Music]
    0:01:29 Welcome to the Knowledge Project,
    0:01:31 the bi-weekly podcast exploring the powerful ideas, practical methods, and mental models of others.
    0:01:37 In a world where knowledge is power,
    0:01:39 this podcast is your toolkit for mastering the best of what other people have already figured out.
    0:01:44 I’m your host, Shane Parish.
    0:01:46 Before we dive in, I have a quick favor to ask.
    0:01:49 If you’re enjoying the show and listening on Apple Podcasts, Spotify, or any other platform,
    0:01:54 please take a moment and hit the follow button now.
    0:01:56 The more followers we have, the better guests we can bring on to share their knowledge with you.
    0:02:01 Thank you.
    0:02:02 If you want to take your learning to the next level,
    0:02:05 consider joining our membership program at fs.blog/membership.
    0:02:09 As a member, you’ll get my personal reflections at the end of every episode.
    0:02:14 Early access to episodes, no ads including this, exclusive content, hand-edited transcripts, and so much more.
    0:02:21 Check out the link in the show notes for more.
    0:02:24 Today, my guest is Morgan Housel,
    0:02:26 the best-selling author of The Psychology of Money and Same as Ever.
    0:02:30 Morgan’s unique perspective on finance, human behavior, and life has transformed countless people, including myself,
    0:02:37 and how I approach life and investing.
    0:02:40 In this episode, we explore the powerful concept of positioning yourself to play the long game.
    0:02:45 Morgan shares his insights on what it means to adopt a long-term mindset
    0:02:49 and the practical steps you can take to cultivate this perspective in your own life.
    0:02:53 While much of this conversation is about money, including how to make it and how to keep it,
    0:02:58 we’ll discover that it’s really a revealing lens for understanding psychology and human nature.
    0:03:04 We talk about how recognizing that different people are playing different games in life
    0:03:08 and how this insight can help you make better decisions.
    0:03:12 We also talk about writing.
    0:03:13 As a writer, Morgan has mastered the art of using stories as leverage for statistics.
    0:03:19 He shares his approach to writing and how he crafts compelling narratives that make complex ideas accessible and memorable.
    0:03:26 We also explore the critical distinction between rich and wealthy
    0:03:30 and how understanding this difference can transform your relationship with not only money, but success.
    0:03:35 By listening to this episode, you’ll gain a wealth of insights and practical strategies
    0:03:39 for navigating the challenges of investing, personal growth, and life itself.
    0:03:44 Morgan’s wisdom will inspire you to think different, embrace the long game,
    0:03:48 and find greater meaning and joy in your journey.
    0:03:52 It’s time to listen and learn.
    0:03:55 The Knowledge Project is sponsored by Protect.
    0:04:04 Protect believes that when you are your best self, you are of the most service to others.
    0:04:09 Try hydration immediately upon waking before your first cup of coffee and before during or after your workout.
    0:04:16 Try rest one hour before bed and get the best sleep of your life.
    0:04:19 Improve your hydration and your sleep and become the best version of yourself.
    0:04:23 Get 30% off your order at protect.com/knowledge.
    0:04:27 That’s P-R-O-T-E-K-T.com/knowledge.
    0:04:31 Or use code “Knowledge” at the checkout for 30% off.
    0:04:35 If you’re on the road, you have a license plate.
    0:04:38 But not every license plate supports our provincial parks.
    0:04:42 Proceeds from B.C. Parks license plates help conserve the beauty of nature
    0:04:47 from the peaks of our mountains to the shores of our beaches.
    0:04:51 Adventure starts with a license plate. Choose the one that gives back.
    0:04:56 Discover how B.C. Parks license plates help protect our parks at bcparks.ca/getinvolved.
    0:05:03 A message from the government of British Columbia.
    0:05:06 I want to start with a bit of a paradox.
    0:05:09 The less money we seem to have, the more risks we’re willing to take.
    0:05:13 Can you explain that to me?
    0:05:15 Daniel Kahneman said something along the lines of,
    0:05:19 “When all your options are bad, your willingness to take a risk explodes.”
    0:05:23 Because you got nothing else to lose.
    0:05:25 And I think you see this in a lot of areas in life.
    0:05:28 One that I see it all the time in, that is a big news story in the United States.
    0:05:33 I don’t know if it’s the same in Canada, but in America we spend something like $100 billion a year on lottery tickets.
    0:05:39 $100 billion. It’s massive that people spend on lottery tickets.
    0:05:43 If you dig into who’s buying it, it’s almost exclusively poor people.
    0:05:47 They buy the vast majority of lottery tickets.
    0:05:50 And the poorer you are, the more lottery tickets you buy.
    0:05:53 And these are some people for whom they literally can’t buy food, or they might be homeless.
    0:05:58 And whatever little money they have, they go into a 7-Eleven and buy some scratcher tickets.
    0:06:04 And you might look at that and say, “You idiots, what are you doing? This is the dumbest idea I’ve ever seen.”
    0:06:10 And maybe that’s the right answer. Like, maybe you couldn’t have stopped there.
    0:06:13 But in Kahneman’s framework, I think it starts to make a little bit more sense.
    0:06:17 If you have someone in a situation like this who, in their mind at least, they think,
    0:06:22 “I can’t get a raise. I can’t build a career. I can’t get promoted.
    0:06:26 I’m kind of stuck in minimum wage job if that’s their mindset.”
    0:06:30 Then buying a lottery ticket might be the only time in their life where they can say to themselves
    0:06:37 and believe, “This is my literally ticket out of here. This is the only chance that I have to get ahead.”
    0:06:43 And so it starts to make a little bit more sense in that situation.
    0:06:46 And maybe you contrast that with someone who has a very high net worth.
    0:06:51 They might be like, “Look, I can just put all my money in treasuries and just live for the rest of my life to soft the interest.”
    0:06:56 And when you have so much, you don’t need to take the risk.
    0:06:59 Well, it comes down to perspective, right? So if I could see what you see and feel what you feel, that decision would be rational.
    0:07:05 Yeah, there’s so many things in life where you can look at other people and the decisions they make,
    0:07:10 not just in money, but for politics, their health decisions, whatever it might be, and fiercely disagree with it.
    0:07:16 But what’s easy to overlook is that if I were in your shoes and had experienced what you had,
    0:07:21 had the same family dynamic that you do, the same DNA that you do, I would do the exact same thing.
    0:07:26 And I think that is a more important question to ask yourself.
    0:07:29 Like, what financial decisions would I make differently if I were born in a different era, born to different parents, born in a different country?
    0:07:38 And I think you can’t answer that question, honestly, because you don’t know.
    0:07:41 But you know there would be a lot of things different that are completely outside of your control.
    0:07:46 Where and when you were born would have a massive impact.
    0:07:49 You and I should not pretend that if we were born in the 1960s in Nigeria,
    0:07:53 that we would have the same views about investing in the stock market over time that you and I do today.
    0:07:58 This kind of gets to the topic of luck.
    0:08:00 And a lot of people, when you bring up luck, they will say something that sounds smart that I fiercely disagree with.
    0:08:06 They say, like, oh, you should increase the surface area of your luck.
    0:08:10 You should, like, oh, the harder I work, the luckier I get.
    0:08:12 It was like some variation of that.
    0:08:13 And I’m like, no, if you can do something that changes your odds of an outcome, it’s not luck by definition.
    0:08:19 Luck to me, the biggest start where and when you were born.
    0:08:22 You can’t control it.
    0:08:23 Bill Gates couldn’t control it.
    0:08:25 Elon Musk couldn’t control it.
    0:08:26 But it has a massive impact on where you’re going to go in life.
    0:08:31 That, to me, is what luck is.
    0:08:32 It’s what you truly have absolutely no control over.
    0:08:35 And then there’s also not only the country you’re born into, but the socioeconomic household you’re born into,
    0:08:41 the schools that you go to.
    0:08:43 How much of this is nature versus nurture versus chosen nurture?
    0:08:48 The stat that I think is so astounding is that income among brothers is more correlated than height or weight.
    0:08:55 So basically that means if you have a brother who is rich and tall,
    0:08:59 you are more likely to also be rich than you are tall.
    0:09:03 It’s more correlated than the literal DNA that you’re sharing with each other.
    0:09:07 Look, is it a perfect correlation?
    0:09:08 No.
    0:09:09 Is it possible to be raised by a poor family and become rich?
    0:09:12 Of course.
    0:09:13 Is it possible to be raised by a rich family and end up in the streets?
    0:09:17 Of course.
    0:09:18 But there’s a very strong correlation between those two.
    0:09:20 I think people can get kind of testy when you talk about luck
    0:09:25 because if I say that you got lucky, I look jealous.
    0:09:29 And if I say that I got lucky, I feel diminished in what I’m doing in life.
    0:09:35 So it plays a massive role, but it’s very easy to ignore the impact that it has in the world.
    0:09:40 How do we break down that contribution between luck and skill or what’s repeatable on our part?
    0:09:46 Rather than saying what is luck, I think it’s important to say like what is repeatable?
    0:09:51 What is something that happened that I could do again?
    0:09:54 And if we look at Buffett, this guy standing behind our shoulder here,
    0:09:57 and let’s look at the course of his life.
    0:10:00 I cannot, he cannot recreate the trading conditions that existed in the 1950s
    0:10:06 that allowed him to buy blue chip stocks at three times earnings, whatever it was back then that he was doing.
    0:10:11 He can’t recreate that.
    0:10:12 He couldn’t do it again.
    0:10:13 But could I or you or anyone else listening try to recreate his patience,
    0:10:18 some of his risk framework?
    0:10:20 Like, yes.
    0:10:21 So that’s something we should pay attention to.
    0:10:23 You want to find what is repeatable and what you could do again.
    0:10:26 And those are the things you should pay the most attention to.
    0:10:29 I think that’s fascinating, right?
    0:10:31 Because when we look at Buffett, what we want is the outcome.
    0:10:34 And what we don’t think about is all the things that go into creating that outcome.
    0:10:38 So what stays the same between all these different decades where he’s done this, right?
    0:10:42 So he’s done it from buying net net, Ben Graham stocks,
    0:10:46 all the way to buying great businesses, all the way to the patients to do nothing.
    0:10:51 And then once every 10 years deploy a whole bunch of cash.
    0:10:54 What is consistent across that period in your mind?
    0:10:57 Two of the big ones.
    0:10:58 We could come up with dozens of things that are consistent with someone like Buffett,
    0:11:01 but the two big ones are endurance and maybe tied to that capping a downside risk
    0:11:07 that allows him to stick around for longer than anyone else.
    0:11:10 There’s also a psychological trait of wanting to keep going longer than anyone else.
    0:11:14 I use this stat in my book that 99% of Buffett’s net worth was accumulated after his 60th birthday.
    0:11:21 Like the vast majority of people, including me and maybe you,
    0:11:24 if we became a billionaire at age 60 would be done.
    0:11:28 He moved to Florida and buy a private island and like live happily ever after.
    0:11:32 For him to be that successful and to keep going full blast for what’s now another 33 years
    0:11:38 and still going stronger than ever is a very unique characteristic that plays a massive role in his success.
    0:11:44 If Buffett had retired at age 60 or 50 like a normal person would have in that situation,
    0:11:50 you would have never heard of him.
    0:11:51 The whole reason he’s so successful is just the endurance.
    0:11:54 And there’s a psychological and a financial component to that.
    0:11:58 Never getting wiped out financially and the psychology that will allow him to keep going
    0:12:03 full blast for nearly a century on end now.
    0:12:07 That sounds academically correct but in temperament incredibly difficult
    0:12:13 because I see my friends getting rich off like Bitcoin or something.
    0:12:17 And that makes me want to change the patience that I have.
    0:12:22 I know how to get wealthy over time.
    0:12:24 We know historically that what’s worked is saving money, being very patient,
    0:12:29 letting it compound decade after decade.
    0:12:32 Then all of a sudden you wake up with a ton of money and financial independence.
    0:12:36 But if I see my neighbor getting richer quicker than I am,
    0:12:41 it makes me want to accelerate that timeline.
    0:12:44 And my lack of patience sort of changes the outcome.
    0:12:47 Not having FOMO is the single most important financial skill.
    0:12:51 I think it’s so important that you cannot ever imagine accumulating significant wealth over your lifetime
    0:12:56 if you are susceptible to FOMO.
    0:12:58 If there’s literally one thing, one trait that you want that’s going to allow you to accumulate wealth,
    0:13:03 it’s the lack of FOMO, particularly in modern markets.
    0:13:06 I can get so crazy with social media and Reddit and Twitter and everything.
    0:13:10 If you are susceptible to FOMO, there’s no hope for you over time.
    0:13:14 I really don’t think that’s an exaggeration.
    0:13:17 And that being able to see your neighbor get much richer than you
    0:13:20 and not being impacted by it is so incredibly critical and easy to overlook these days.
    0:13:27 I don’t have that many financial skills.
    0:13:30 I could never be a stock picker. I could never be a trader.
    0:13:33 I don’t have the intellect or the horsepower to pull that off.
    0:13:38 But I feel like I’ve never been at least that susceptible to FOMO.
    0:13:42 It doesn’t bother me in the slightest to watch other people getting rich.
    0:13:45 Brent Bishore, our mutual good friend, had a quote that I love.
    0:13:48 He said, “I am perfectly happy watching you get very rich doing something that I would never want to do.”
    0:13:55 And I think that’s a great way to frame it.
    0:13:58 I get jealous or anxious to watch other people get richer than I am over time.
    0:14:02 My investing strategy is to own index funds for as long as I possibly can,
    0:14:08 to be average for an above-average period of time.
    0:14:11 And I think that will actually lead to an incredible outcome.
    0:14:14 Not only will it achieve the financial goals that I have for my family,
    0:14:18 but I think over a long period of time,
    0:14:20 it will put you in the top decile, at least, of people who are compounding money over time.
    0:14:25 I think that’s really hard to appreciate that what’s short-term optimal
    0:14:29 and what’s long-term optimal are often two different things.
    0:14:32 Completely different things.
    0:14:33 Howard Marks talked about this investor that he knew who, in any given year,
    0:14:37 he was never in the top half versus his peers.
    0:14:41 He was never in the top 50% of other investors.
    0:14:44 And over a 20-year period, he was in like the top 4%.
    0:14:48 Because everyone else who was beating him in a given year couldn’t keep it going.
    0:14:51 And so like what’s your ultimate goal?
    0:14:53 So much of investing is just define the game that you’re playing.
    0:14:56 And I don’t look down upon or criticize people who are short-term traders.
    0:15:00 Maybe that’s their game and for their investors or for their like it makes sense for them.
    0:15:05 My game is different. I think your game is different.
    0:15:08 Most people’s game might be a little bit different.
    0:15:10 And what’s important is that if your game is to invest for the next 20, 30, 50 years,
    0:15:16 that you’re not taking your cues from people who are playing a different game
    0:15:20 of trading for the next quarter.
    0:15:22 And that’s where a lot of danger and investing comes from.
    0:15:25 You’ve changed my capital allocation strategy.
    0:15:27 Our conversations are walks totally.
    0:15:30 How so? What did you used to do that you don’t anymore?
    0:15:34 We used to do a lot more private investments and now it’s mostly index funds.
    0:15:39 And as things sort of roll in through dividends or whatever, it just gets re-invested in index funds.
    0:15:44 But it’s our conversations that changed that.
    0:15:46 Well, great. That makes me happy and nervous that I’m having influence.
    0:15:49 One thing that some people will say when you talk about index funds is like,
    0:15:52 what is the guarantee that this is going to work for the next 50 years?
    0:15:55 Okay, I understand it works in the past 50 years.
    0:15:58 And my response is always like, nothing.
    0:16:00 There’s no guarantee that this is going to work.
    0:16:02 It’s very possible that it doesn’t work out for whatever reason.
    0:16:05 And there have been periods from the late 1920s and 1950s where the returns were terrible.
    0:16:12 Or even from 2000 to 2010, you had basically 0% real returns in index funds.
    0:16:17 So it’s not perfect in the slightest.
    0:16:19 Nothing guarantees that it’s going to work or be satisfactory over time.
    0:16:23 But I think when you adjust it for the effort that is put in,
    0:16:27 the lack of effort that’s put in, basically zero effort to do this.
    0:16:31 And you adjust it for the fees, which round to zero now.
    0:16:34 When you adjust for all those things, it’s a very appealing way to invest over time.
    0:16:39 If I was to look at your balance sheet, what is your capital allocation strategy?
    0:16:43 I’m trying to think of the percentage wise.
    0:16:45 It’s probably something like 15 to 20% cash, the house that I live in,
    0:16:51 and then the rest index funds and shares of Markel where I’m on the board of directors.
    0:16:56 And that’s it.
    0:16:57 Those are my only assets.
    0:16:58 Cash, house, index funds, Markel stock, that’s it.
    0:17:01 Which index funds?
    0:17:02 Vanguard Total Stock Market Index, Vanguard Value Fund,
    0:17:06 and a little bit of an international fund.
    0:17:08 Why do index funds work so well?
    0:17:10 Two reasons.
    0:17:11 One is it’s always going to be the case that a very small number of stocks
    0:17:15 account for the majority of returns.
    0:17:17 So recently it’s been Fang plus NVIDIA.
    0:17:21 If you didn’t own those stocks, Fang plus NVIDIA over the last decade,
    0:17:25 your odds of outperforming are very, very low.
    0:17:28 It’s not zero, but it’s incredibly hard if you didn’t own those few.
    0:17:32 And even if you look at an index fund that owns a thousand stocks, let’s say,
    0:17:36 you’re going to get the majority of returns from probably fewer than 20 of them.
    0:17:40 And it’s always been like that.
    0:17:41 Back in the 90s, it was AOL and Cisco and Microsoft and Dell and those kind of companies.
    0:17:47 And in previous generation, it was General Electric and Intel and those kind of companies.
    0:17:52 It’s always the case that it’s very tail driven, the distribution of returns.
    0:17:56 And owning the index just guarantees that whatever is going to be the next driver I own.
    0:18:01 Because it’s extremely difficult to know what those are going to be.
    0:18:04 If you had gone back to 2004, 20 years ago and tried to predict,
    0:18:10 what are the big winners going to be over the next 20 years?
    0:18:13 Well, by the way, some of those companies didn’t even exist yet.
    0:18:16 Facebook didn’t even exist yet.
    0:18:17 Google was still a private company or maybe it had just gone public in 2004.
    0:18:21 The big winners are, I think, extremely difficult to know with any foresight what it’s going to be.
    0:18:26 And if you had suggested even three years ago that NVIDIA was going to be one of them,
    0:18:31 it would have sounded absurd.
    0:18:35 So you’re guaranteeing that you’re going to own the oddballs that account for the majority of the returns over time.
    0:18:40 The other is, I think, the lack of effort that goes into it that is needed.
    0:18:46 Investing is one of the very few endeavors in life where the harder you try,
    0:18:50 the worse you’re probably going to do.
    0:18:51 And yes, there are exceptions to that, Renaissance technologies.
    0:18:54 Of course, you can name the exceptions for people who tried very hard and did very well.
    0:18:59 But for the vast majority of people, there’s going to be a negative correlation between the effort you put into it
    0:19:04 and the results that you got out of it.
    0:19:06 And so the leave it alone aspect of investing in index funds is very important.
    0:19:12 One little stat that I love about this is that if you look at both the Dow and the S&P 500, those are not static indexes.
    0:19:18 They change over time.
    0:19:19 There are new constituents that are added.
    0:19:21 Companies go out of business or they merge and then new companies are added to that.
    0:19:26 If you were to look at the Dow, I think one of the studies showed over the last 100 years,
    0:19:31 if rather than adding a new company when one of the original components went out of business or merged,
    0:19:37 if you just left it alone, don’t add anything else.
    0:19:39 Don’t take anything out.
    0:19:40 Just literally take the original components and leave them alone.
    0:19:44 You would have done better than the companies that were added and removed, added and removed.
    0:19:48 Like any activity that goes into it tends to be detrimental over time.
    0:19:52 That’s I’ve always thought is very fascinating.
    0:19:55 It’s literally like there’s very few exceptions in the index world to where the more effort you put into it,
    0:20:02 the better you’re going to do over time.
    0:20:03 Do you think we find it boring and that’s why we don’t want to do it?
    0:20:06 It’s a combination of boredom and just the counter intuition of the less effort, the better we’re going to do.
    0:20:13 Because any other endeavor in life, whether it’s your physical fitness or whatever it might be,
    0:20:18 there is a positive correlation.
    0:20:19 If you want to become in better shape, you exercise, you put more effort into it.
    0:20:23 In most endeavors in life, the harder you try, the better you’re going to do.
    0:20:26 And investing is just not one of those.
    0:20:28 And it’s so not intuitive that people end up tripping over themselves.
    0:20:32 I would also say too that I am not against active investing in the slightest at all.
    0:20:36 I have so much respect and admiration for the people who do it well.
    0:20:40 And the stats that get thrown around that are true that 90% or more of mutual funds will underperform the benchmark.
    0:20:47 My response to that is always like, of course, that’s how it is.
    0:20:50 You should not expect to live in a world in which everyone who tries to beat the market can do it.
    0:20:55 Of course, that’s how it is.
    0:20:56 And the people who can do it are enormously talented and I have so much respect for them.
    0:21:01 Two of them are sitting behind our shoulders here.
    0:21:03 And other people, I know people, you know people who have been and I think will continue to be successful at this.
    0:21:11 So I’m not a passive zealot in the slightest.
    0:21:14 I just think for myself and many other people, it’s probably the smartest way to invest.
    0:21:19 How do you keep your goalposts from moving as you accumulate and compound wealth?
    0:21:25 Hey, I think everyone’s including my and my wife’s have not stopped moving, nor should they.
    0:21:32 I don’t personally aspire to live in a world where if I’m lucky enough for my net worth to go up 100% of it just accrues to savings over time.
    0:21:41 That’s not the life that I want to live.
    0:21:42 I want to have a great life with some great material possessions and travel with my kids and live well over time.
    0:21:48 If your net worth grows 10% but your expectations grow 12%, that’s when you get into trouble.
    0:21:53 This is the gap between the two.
    0:21:54 And so look, I’m making this up.
    0:21:56 This is not an actual analysis, but I bet over time if my net worth has gone up by 10% per year, our goalpost has grown by 5% per year.
    0:22:06 I’m making those numbers up, but it’s something like that.
    0:22:08 So yes, my family lives a better life materially today than we did 10 years ago, but we’ve still saved and lots of money during that period.
    0:22:17 I think that’s all that matters over time is that you know, and even Buffett and Munger who are known for being fruit.
    0:22:23 Buffett lives in the same house he bought when he was 26.
    0:22:25 Yes, but he also flies a private jet and had a beautiful beachfront house in Laguna Beach.
    0:22:29 These guys are not living like poppers over time.
    0:22:31 And that’s what I think is really important.
    0:22:33 It’s just making sure that there’s a gap between your net worth and your expectations.
    0:22:37 Seems one of the things that we inherit from society is that the house you live in is your prime financial asset.
    0:22:47 That seems really recent as well.
    0:22:50 Maybe the last 30, 40 years where that’s become the vast majority of wealth for Americans and Canadians.
    0:22:58 I know in the United States real home prices for most of modern history in the 20th century were flat as a pancake.
    0:23:07 Robert Schiller of Yale did did a lot of analysis on this tracking us home prices since the 1800s.
    0:23:13 And in real terms from probably the 1940s through the 1990s were flat as a pancake on average across the United States.
    0:23:22 And then in the last 20 years, starting with the housing bubble that started around 2003.
    0:23:27 They exploded higher.
    0:23:28 And then, of course, we had the housing crash in 2008 and people thought that was the end of the bubble.
    0:23:33 But then they’ve exploded higher even more.
    0:23:36 And real home prices in the US, I’m sure it’s the same in Canada, are much higher today than they were at the peak of the bubble in 2006 on average.
    0:23:44 Of course, there’s many variables going into that, a lack of building up new homes that didn’t keep up with generational growth.
    0:23:50 And it makes it it kind of bifurcates the world in terms of if you have if you have owned a home for any period over the last 20 years, you’ve probably done very well.
    0:24:00 And if you are looking for your first home today, it’s harder than it’s ever been, particularly now that interest rates in the US are seven or seven and a half percent for 30 year fixed rate mortgage.
    0:24:10 Combine that with home prices that are just absurd, particularly in the in the metro areas that people want to live in.
    0:24:17 It’s completely bifurcated because if you own a house for the last 10 years, you can sell that house and take the equity that has grown in that house to buy a new one.
    0:24:27 To use for your down payment on the other house that’s been inflated whose price has been inflated.
    0:24:31 But if you’re trying to break in for the first time, like it’s it’s a joke.
    0:24:34 It’s a complete joke.
    0:24:36 So that’s it’s a it’s a very difficult thing.
    0:24:38 I would not I have a lot of sympathy for the first time home buyer today who is just who does not have parental support, which is the vast majority of them.
    0:24:46 It’s harder than it’s ever been.
    0:24:48 And there are a few things that make you feel like you are stable in your adult life than owning the house that you live in.
    0:24:54 And I think it plays a huge role in a lot of things in life.
    0:24:57 A lot of people this would have been same for my wife and I don’t want to start having kids until they own their home.
    0:25:04 They want to have that sense of stability before they start having kids.
    0:25:07 So I think the lack of housing affordability has an impact on demographics and having kids over time that will echo for the next 50 or 70 years.
    0:25:15 So it plays a huge role in what’s going on in society.
    0:25:18 There’s also sort of a difference between what’s optimal financially and what’s optimal psychologically.
    0:25:25 We’ve had this conversation before where you told me you paid after mortgage.
    0:25:30 And that makes no very little financial sense because you had one of those crazy like really low mortgages.
    0:25:37 Like a mortgage rate was 3.2 percent fixed for 30 years and we paid it off which I say is very true is the worst financial decision we’ve ever made.
    0:25:46 But it’s the best money decision we’ve ever made.
    0:25:49 And the difference between the two is like look on a spreadsheet it’s terrible.
    0:25:53 I’ve done the math of like what if I had just invested that money instead.
    0:25:56 How much would I more money would we have today.
    0:25:58 It’s a lot.
    0:25:59 It’s a lot of money.
    0:26:01 But nothing that we’ve ever done in our financial life has given us more happiness.
    0:26:06 Then paying that off.
    0:26:08 And a lot of that is unique maybe to my personality.
    0:26:10 This is not advice for other people because maybe you and other people don’t have that personality.
    0:26:15 I’m a worst case scenario thinker.
    0:26:17 I also have a career that can be fickle.
    0:26:20 And so and I’m the sole breadwinner in our household.
    0:26:23 My wife is home with our kids.
    0:26:25 So with all of those my personality my career and whatnot it made perfect sense.
    0:26:29 And when we did it I was nearly in tears with joy when we did it.
    0:26:34 Knowing full well that it was a done that it was a dumb financial decision.
    0:26:38 So I think once you stop viewing money as just trying to make the spreadsheet happy.
    0:26:42 And you view it as a tool to live a better life.
    0:26:45 A lot of things change.
    0:26:47 And in that situation it was a tool that improved the quality of my life and my family’s life.
    0:26:53 I think dramatically even if it was the dumbest thing that we’ve ever done on a spreadsheet.
    0:26:57 And a lot of people when I say this they’ll still push back and be like well walk me through like why it was.
    0:27:03 Why is rational.
    0:27:04 I’m like it’s not rational.
    0:27:05 It’s not rational at all.
    0:27:06 I can’t explain to you on a spreadsheet.
    0:27:08 It was dumb to do but it made me really happy.
    0:27:11 And like is there any worth is there any value to that.
    0:27:14 You know for you like it made me happy.
    0:27:16 We could just stop right there.
    0:27:17 I don’t need to prove it anymore.
    0:27:18 But doesn’t that make it rational.
    0:27:20 If you’re playing a different game right.
    0:27:22 Like if you’re trying to optimize every penny over the long term maybe that doesn’t make sense.
    0:27:26 Yeah.
    0:27:27 But if you’re optimizing for happiness and longevity maybe it does make sense.
    0:27:30 Yes.
    0:27:31 And so I think the the the qualitative factors of money are hard for people to wrap their head around.
    0:27:38 Particularly in a field that has been taught as an analytical field.
    0:27:42 When you if you get a degree in finance or get your CFA or whatever it be it’s purely numbers.
    0:27:48 That’s that’s not totally accurate.
    0:27:49 There’s some there’s some in there but vast majority of how they teach finance is just numbers.
    0:27:54 And so it can be hard for a lot of people to wrap their head around why you would do something where the numbers don’t make sense.
    0:27:59 What can money do for us and what can it do for us.
    0:28:02 What’s the lie it tells us what’s the thing that we we feel like it can do for us that it can.
    0:28:07 Well I think the the lie is that a lot of people in life if they’re unsatisfied with how their life is going.
    0:28:13 It’s a very quick and easy answer to say if I had more money things would be better.
    0:28:18 And that can be true.
    0:28:19 It can solve a lot of your problems.
    0:28:21 But I think what a lot of people want in life not everyone I don’t want to completely generalize this.
    0:28:25 But what I want that I think is is reasonably common for people is I want independence.
    0:28:31 And I want to spend time with the people who I love my family and friends.
    0:28:35 And that’s pretty much it.
    0:28:36 And can you use money to do that.
    0:28:39 Of course money is kind of the oxygen of independence.
    0:28:42 And if you can use your money to spend more time with your friends and family you and I went out to a lovely dinner last night with each other.
    0:28:48 That cost money.
    0:28:49 Thank you for buying by the way.
    0:28:50 And we had a great time with each other.
    0:28:52 Now if you and I went for a walk that would have been free would have been great too.
    0:28:55 But using money for to spend time with whom you want when you want for as long as you want.
    0:29:02 Waking up every morning and saying I can do whatever I want today.
    0:29:04 Even if what I want to do is go to work and be productive is absolutely critical.
    0:29:09 And that is different from the knee jerk of just oh if I have more money I can buy more things nicer things.
    0:29:14 But what you actually want in your soul is to like is you want independence and to spend time with people who who who you love.
    0:29:20 Money can do those things but it’s not as direct as people as people think.
    0:29:24 One example of this is like will having a nicer house make you happier.
    0:29:29 It might but the reason it’s going to make you happier is because it makes it easier to have friends over.
    0:29:34 It’s it’s makes it more convenient to hang out with your kids in a big nice glorious living room.
    0:29:39 So it’s not that the house will make you happier but the house can make it more conducive to do things in your life that those things will make you happier.
    0:29:47 I was reading Rich Dad Poor Dad with my youngest and we come to the concept of a house and if I get this right it was sort of your house is a liability and not an asset.
    0:29:58 So don’t think of it as like a financial asset that’s going to grow and acquire wealth for you.
    0:30:02 Think of it as liability that’s just a sort of table stakes for playing playing the game if you want or living life and having stability and all these other things.
    0:30:11 And I thought it was really interesting and as we talked about it I was like you know it’s just the house.
    0:30:16 What the house is effectively it’s a container and what matters is what happens inside that container.
    0:30:22 The house in and of itself like who cares.
    0:30:25 Yeah just recently just last month I traveled with my son to the town that I grew up in and I stopped by the house that I grew up in for the majority of my childhood.
    0:30:35 I hadn’t been there in 20 years.
    0:30:37 We pulled in the driveway of course there’s people who live there now so we just sat in the car.
    0:30:40 But I sat there for 10 minutes just kind of reminiscing about as soon as you pull in the driveway all these memories start flooding back of the things that happen in that house.
    0:30:49 Good and bad fun and sad like like so many memories in there from my childhood.
    0:30:54 And of course you can go on Zillow and see what that house is worth.
    0:30:57 It’ll give you a very specific dollar figure for what the house is worth.
    0:31:01 But what the house is worth to me and my parents and my siblings is complete is invaluable and you can’t put a price tag on those kind of memories.
    0:31:09 And I think that’s common for most people.
    0:31:11 There’s a tangible financial value and there’s this intangible that you can’t ever put a price on.
    0:31:16 That’s true for vacations.
    0:31:17 It’s true for a lot of things in life that there’s a financial value.
    0:31:21 If I asked you and said what is this house worth.
    0:31:24 Again you can go on Zillow and say but what are the memories built inside that house worth.
    0:31:29 It’s like you can’t put a price on that.
    0:31:31 When you’ve reached financial independence is that the ultimate when you’re spending money but it’s not a matter of the money.
    0:31:38 You’re not quantifying it in sort of a dollar figure.
    0:31:40 You’re quantifying it in a feeling or I think there’s truth to that.
    0:31:43 It’s when you start using it as a tool to become happier.
    0:31:46 Now what’s going to make people happy is very different having an incredible Ferrari collection might make you happy.
    0:31:52 So if it’s not to say that the things will make you happy or not material that you should just use this for experiences that I think is a step too far.
    0:31:59 I think a lot of people have hobbies that cost a lot of money that are material that really make them happy.
    0:32:04 So it’s like great is there are a lot of people out there who would say you know who would really promote frugality and be like you you don’t need a big house.
    0:32:13 You don’t need a nice car.
    0:32:14 Well big houses and nice cars make some people really happy other people they don’t.
    0:32:17 It’s whatever you can use money as a tool for to give to live a better life versus I think a yardstick of status and success to compare yourself against other people.
    0:32:28 That’s what gets dangerous is when you’re just using it as a scorecard to compete with other people.
    0:32:33 How do we catch ourselves in a status game where we’re playing a status game but we don’t we can’t see it because we’re in it.
    0:32:39 It’s unavoidable at the economy level especially at the broad macro level.
    0:32:43 It makes sense from an evolutionary perspective that people compete with each other.
    0:32:47 There’s limited resources and like if I want if I want the food if I want to make whatever it would be I need to compete with you.
    0:32:53 That’s always what it is.
    0:32:54 So it’s so natural it’s never going to go away.
    0:32:56 This is truly like same as ever people are always going to be keeping up with the Joneses and you can imagine a world in which our kids.
    0:33:02 And our grandkids are living way better lives than you and I are and living longer and have better material access to you and I do.
    0:33:11 And they’re no happier for it because they’re just competing with other people who have even more than that.
    0:33:15 That’s always been like that.
    0:33:17 If people 100 years ago could see how you and I are living today they would be completely dumbfounded with virtually everything we have in our life.
    0:33:25 But I would also wager that you and I are not that much happier than they are.
    0:33:29 There’d be some aspects of life or healthier.
    0:33:32 We don’t have to wake up to worry that we’re going to die from the flu next week.
    0:33:36 But people just adjust their expectations to whoever is around them.
    0:33:41 A lot of this is like a DNA thing.
    0:33:44 Some people are just way more susceptible to wanting to keep up with others and other people who could just care less what other people think about them.
    0:33:50 There’s probably six people in my life who I really desperately want their love and respect.
    0:33:57 My parents my wife my kids a handful of friends and everyone else.
    0:34:01 It’s not that I could care less but after those six or maybe eight people it drops dramatically and the vast majority of people on Twitter and whatnot.
    0:34:09 I could I could care less what you think about the decisions that I’m making.
    0:34:12 So I think if you define that it’s it’s you know who’s whose love and admiration do I want in life defining who those people are and what do I have to do to earn their love and respect.
    0:34:23 The love and respect of my wife and my kids and my parents and that’s what I want to use money to do in my life.
    0:34:31 So like spending time with my family taking them to cool places and whatnot.
    0:34:34 There is a financial aspect to this but once you define that personal game you’re playing a lot of these decisions clear up.
    0:34:40 I think a lot of people don’t actually think about what game they’re playing.
    0:34:43 They look at other people and you know from my lens you should be doing something different but that really comes because we’re optimizing for different things.
    0:34:50 Yes. I bet if you and I sat down and like deeply compared our lives there would be things that we do very differently spending like you spend a lot of money on this and I don’t.
    0:34:58 I spent a lot of money on this and you don’t and it’s not a disagreement.
    0:35:02 It’s just we’re different people even if you are about you and I are about the same age same education you know there’s probably a lot that is just like yeah but we’re different.
    0:35:10 So I think most financial debates whether it’s like an investing debate or a saving or spending debate people are not actually disagreeing with each other.
    0:35:18 They’re not actually debating because people with different personalities talking over each other and once you come to terms with that there’s not one right answer for any of this.
    0:35:26 There’s so many things that we inherit though from our parents like invisible rules about money or practices around money.
    0:35:33 I remember like these moments in my childhood where you know my parents had to decide between fixing the roof and fixing the car and they couldn’t afford to do both.
    0:35:42 And I remember they you know they worked for the military and the military had sent them a financial advisor.
    0:35:48 And I remember listening to the conversation they had with the financial advisor and how out of the loop they were with what was happening with my you know that the severance pay that my mom was getting and what was happening and they had no knowledge of it and I was like I never want to be in this position.
    0:36:05 What are the lessons that you learned from your parents that really stick with you today that sort of defined how you think about money.
    0:36:14 The two things that stick out for my parents my parents upbringing.
    0:36:17 So my dad started undergraduate college when he was 30 and had three kids.
    0:36:22 I’m the youngest of three.
    0:36:23 He started his undergrad when I was like a month old something like that.
    0:36:27 And he became a doctor when I was in third grade.
    0:36:29 My early childhood my parents were very very poor they were students and maybe they had some like student grants that allowed us to buy groceries and live in a tiny little apartment.
    0:36:38 We were very happy at a great childhood but they were very very poor.
    0:36:42 And then my dad became a doctor when I was in third grade and had the so that it was immediate shift towards very poor to like upper middle class literally overnight when I was in third grade and my sibling my brother and sister were teenagers at that point.
    0:36:56 So I got to see very like both sides of the spectrum.
    0:36:59 And I remember the year 1993 is the year everything changed in our family.
    0:37:04 What sticks out from that is that the frugality that was demanded of my parents when they were poor stuck with them after they started making more money.
    0:37:13 And so even after my dad became a doctor they were we were very frugal.
    0:37:18 We lived a much better life than we did when we were poor because we were we were living in abject poverty for most of my childhood.
    0:37:23 And but but after that it was they had a very high savings rate.
    0:37:26 We were not spending money like my dad’s coworkers were like you would expect a normal doctor to is nothing close to that.
    0:37:33 I think I looked down upon my parents for that.
    0:37:35 I was like we could be living in a nicer house.
    0:37:37 I know how much money you make we could be living in a better house and driving a better car but we don’t because you’re cheapskates.
    0:37:42 That was my view for my teens and early 20s.
    0:37:46 My dad was an ER doctor which is a very stressful field.
    0:37:50 It’s literally people dying in front of you in your arms every day and working night shifts.
    0:37:54 And it’s a very stressful field.
    0:37:56 So after about 20 years or so he had just had enough.
    0:37:59 And well before I think he intended to retire he more or less woke up one day and said I’m done.
    0:38:05 It was a little more planned than that but I was that was that was close to it.
    0:38:09 And because they had saved so much he could do that.
    0:38:11 He had the independence to wake up one day and say I’m going to do like I’m proud of what I did but I’m going to go do something else now.
    0:38:18 And a lot of his peers could not do that because they spent like doctors.
    0:38:23 They lived in big houses and sent their kids to private school and drove fancy cars.
    0:38:27 So when they wanted to quit they couldn’t they wanted to retire they were they were tired and they wanted to quit but they couldn’t do it.
    0:38:34 And that was such a profound shift in my thinking.
    0:38:37 This was not that long ago I don’t know 12 years ago or so of when I was like oh that’s that’s why you are saving so much.
    0:38:43 It wasn’t because you were cheap skates.
    0:38:45 It’s because you were wanting to become independent and now you are you want to quit so you could quit.
    0:38:50 That’s why you were saving.
    0:38:52 That was a profound shift for me of like you’re not saving because you’re just scared to spend.
    0:38:57 You’re saving because you want something different which is independence and independence is going to give you so much more pleasure than the big house ever would.
    0:39:06 That really stuck with me.
    0:39:07 How do they talk to you when you said hey you’re just being cheap skates like let’s do this thing or let’s get this bigger house or.
    0:39:15 If they heard what I just said they would say yes in hindsight that’s all true but we didn’t know we were saving for independence.
    0:39:23 They also my parents are very interesting that they have dollar cost averaged in the Vanguard index funds for more than 40 years and never sold anything ever.
    0:39:31 So they would be like literally in the top probably two percent of investors during that period without any financial education.
    0:39:38 No financial skill like no nothing like that.
    0:39:41 So I think a lot of the decisions they’ve made have worked out well but it hasn’t really been conscious.
    0:39:46 So I think back when I said you’re cheap skates I’m sure they just kind of shrugged and okay well this is what we’re doing but I don’t think they actually had a plan for what they were doing.
    0:39:54 It was just again the frugality that was demanded of them.
    0:39:57 My parents also met on a hippie commune in the 1970s not exactly the breeding ground for like good saving skills.
    0:40:05 And so for their entire adult lives for literally decades they were they had zero money they had absolutely nothing.
    0:40:12 So they learned how to be poor and they’re also very happy and have a great marriage.
    0:40:17 If you can learn how to be poor with dignity that skill will just like stick with you forever.
    0:40:22 So when they started making money I think I think it’s probably true that they didn’t exactly know what to do with it because they were so used to be they’re so used to being poor.
    0:40:29 But whether it was conscious or not it created this thing that has given them so much happiness and pleasure which is independence.
    0:40:37 What’s the difference between being rich and being the definitions are my own.
    0:40:41 I’m just making this up.
    0:40:42 But I think rich is when you have enough money to make your mortgage payment make your car payment.
    0:40:47 You can pay off your credit card bill every month like you can afford the things that you’re buying technically.
    0:40:51 Wealthy I think is when you have a degree of independence and autonomy.
    0:40:56 The weird thing here is that wealth is the money that you don’t spend.
    0:40:59 That’s what wealth is like the homes you didn’t buy and the car you didn’t buy.
    0:41:03 It’s money that you saved and invested that is going to give you independence.
    0:41:07 And that’s a hard thing for people I think to wrap their head around that wealth is what you don’t see because I can see your house.
    0:41:14 I can see your car.
    0:41:15 I can see your clothes.
    0:41:16 But I have no idea what you’re not worth this.
    0:41:18 I can’t see your bank your brokerage account.
    0:41:20 I can’t see your bank account.
    0:41:21 So wealth is always hidden.
    0:41:23 And it throws a lot of people for a loop because if I was looking for a role model of physical fitness, I will I can see your fitness.
    0:41:32 I can see your weight and your muscle tone one night.
    0:41:35 It’s all visible.
    0:41:36 But when you’re looking for a financial role model, who do you look up to?
    0:41:40 And a lot of people particularly young people will look up to the guy in the mansion with the Ferrari.
    0:41:44 But that guy for all you know is living paycheck to paycheck.
    0:41:47 A lot of those people are.
    0:41:49 And the person who is actually wealthy and independent might be the person in the modest house driving the modest car that you would actually want to be.
    0:41:56 If you want to be wealthy instead of just rich, you want to be independent instead of just making your monthly payments.
    0:42:02 The people that you actually want to look up to are some of the hardest people to identify in society.
    0:42:08 Who do you look up to?
    0:42:09 In general, who I look up to are people who do whatever they want and people with independence.
    0:42:14 And there’s a huge range of that.
    0:42:16 I think there are people whose net worth is, you know, in the low six figures who are independent.
    0:42:21 There’s a guy named Mr. Money Mustache who kind of started the fire movement 10 or 15 years ago.
    0:42:27 And his story was when his net worth was $600,000, not not that much money.
    0:42:32 He retired and lived a great life on it.
    0:42:34 And there’s other people, you know, obviously Jeff Bezos and Elon Musk are independent.
    0:42:39 But I would I would venture that more than half of Elon Musk’s day is doing things that he doesn’t want to do.
    0:42:45 It’s like there’s, you know, piling on all these things that, you know, he’s still driven to do them and get them done.
    0:42:51 And of course, of course, he could quit tomorrow, but doing things that he doesn’t necessarily want to do.
    0:42:56 So anyone who can wake up every day and say like, I can do whatever I want today.
    0:43:01 If you have independence, that’s my personal goal.
    0:43:04 So the people who have that at any income level are the ones I look up to.
    0:43:07 Why are so many people who have money?
    0:43:11 I think the answer is sort of maybe embedded in the last one.
    0:43:13 But why are so many people who actually have a lot of objective wealth or money, if you will, unhappy?
    0:43:21 Andrew Wilkinson, our friend had a saying where he says like a lot of people, I’m paraphrasing him,
    0:43:27 but a lot of people who are very successful are just walking anxiety disorders harnessed for productivity.
    0:43:33 And I think it was Patrick O’Shaughnessy who said the single word that he would use to describe a lot of very successful people.
    0:43:40 It’s not driven. It’s not passionate. It’s tortured.
    0:43:44 They wake up every morning tortured about like, I’m trying to solve this problem.
    0:43:48 I have to get ahead. I have to hit this goal.
    0:43:50 And they are literally, they wake up very anxious and depressed and like, you know, just tortured about achieving their things.
    0:43:58 Elon Musk a couple of months ago gave an interview where he said, you might think you want to be me.
    0:44:03 As in like the richest person in the world, richest person in history, but you don’t.
    0:44:08 And he was like, I think he said something like it’s a it’s a tornado up here.
    0:44:12 It’s a mess inside of this head. You do not want to be inside of this head.
    0:44:15 I think that’s really true. I think that’s a profound truth that you might think you want that kind of life, but there is a cost to that life.
    0:44:24 And the reason he’s successful is because he’s probably woken up tortured for his entire adult life trying to solve these problems.
    0:44:30 I am so glad and grateful that people like himself exist because they made the world a better place.
    0:44:37 New technologies that we can all benefit from.
    0:44:39 But there’s a big difference between saying, I’m glad you exist and I would want your life.
    0:44:43 Those are two very different things.
    0:44:45 It’s almost like we’re looking at the outcome. We’re like, I want the outcome.
    0:44:48 I don’t want, I don’t want all this stuff. We do this with athletes too, right?
    0:44:52 Like I want the gold medal. I don’t want the five a.m. practices seven days a week.
    0:44:56 I don’t want that.
    0:44:57 I think it was Naval who said, you can’t just pick and choose bits of someone’s life and say, I want his physique and her net worth.
    0:45:06 And I want his house and you have to take the whole package.
    0:45:10 And a lot of the great things in anyone’s life, there’s a cost that came with that, whether it’s their career success that they had to put into it.
    0:45:18 You know, there’s stories that Bill Gates worked, I think it was 25 years without ever taking a single day off.
    0:45:24 And what’s the days he’s working?
    0:45:25 It would be like he came home at midnight and crashed on the couch for four hours and then went back to work.
    0:45:30 I’m so grateful that he exists, but I would not want that for myself. That’s not my definition of the life that I would want.
    0:45:37 Our friend, David Senra, who runs the podcast Founders has profiled, I think now by 350 founders over time.
    0:45:46 And he says, I don’t want to put words in his mouth. I’m pretty sure he said the only founder that he has ever read their biography and thought I want his life is Ed Thorpe.
    0:45:59 And everybody else that he reads it, I think he comes into the same conclusion that I do. I’m glad they exist.
    0:46:04 I would never want to live their life because there’s always a hidden cost that when you dig into it, you’re like, yes, he was very successful because he sacrificed a million things that would be very, that are very important to you and I.
    0:46:17 Hear that, Cora Pounder fans? That silence has two friends enjoying the new creamy Parmesan and bacon Cora Pounder at McDonald’s.
    0:46:28 Because adding crispy bacon and creamy Parmesan sauce to our 100% Canadian beef makes it impossible to have a conversation.
    0:46:38 Try the new creamy Parmesan and bacon Cora Pounder today and discover how words are so unnecessary for a limited time only participating McDonald’s restaurants in Canada.
    0:46:48 Let’s talk about that a little bit. You’re incredibly successful. Your books have sold well over 5 million copies now.
    0:46:55 The inbound to you for requests of your time, your speaking, your presence, hop on the phone for 15 minutes, must be off the charts.
    0:47:05 How do you keep your surface area small or keep doing the things that you want to do?
    0:47:11 Well, the only way to manage that is to say no to virtually everyone. And that sucks for me for two reasons. A, I don’t have any assistant.
    0:47:18 I’m personally saying no to them and I’ll pawn it off to anyone else.
    0:47:21 And I don’t like making people sad when you blow someone off or even respectfully say no. They’re going to be hurt a little bit.
    0:47:30 I vividly remember, I’m not going to say who, but names that you and people would know that I reached out to early in my career and said, hey, can I please pick your brain for 15 minutes?
    0:47:41 And they said no, and I was hurt. I still remember it. I still remember the emails. I remember reaching out to a couple of authors probably 15 years ago and saying, my name is Morgan.
    0:47:52 I’m an aspiring author. I’m trying to do this. I so admire you.
    0:47:56 Can I please ask you just 10 minutes on the phone? And some of them didn’t respond. And I still remember that.
    0:48:02 So if anyone who remembers that gets in that same position themselves where they have to say no to a lot of people, it sucks.
    0:48:09 But there’s no other way to handle it. There’s no other way to manage it.
    0:48:12 It seems like success, and we’ve talked about this before, but success sows the seeds of its own destruction.
    0:48:18 How do you think about that and what ways does it do it?
    0:48:21 The biggest is just that it allows you to become lazy and it’s going to degrade the thing that made you great.
    0:48:28 What made you, like literally you, successful was probably like some degree of like waking up and feeling inadequate.
    0:48:37 Just waking up and being like, I know I’m capable of doing more than I’ve achieved already and I got to go do it.
    0:48:42 And it’s pretty common, like whether that was driven by a lack of self-esteem, like whatever it was, you’re waking up and you’re like, I need to achieve more than I have today.
    0:48:53 And once you have achieved some level, it’s easy to be like, well, I’ve already done that.
    0:48:57 And then the thing that made you successful, that drive you had is diminished using some companies and in people.
    0:49:03 And the other thing that’s really powerful is when you are lower on the totem pole, it’s easier for everyone around you to tell you what you’re doing wrong.
    0:49:13 And the higher you gain, particularly when you get up to the very high levels, no one wants to tell you doing wrong because you’re probably paying those people to be surrounded to surround you with advice.
    0:49:23 And they don’t want to tell the emperor he has no clothes.
    0:49:26 That happens to a lot, lots of people, lots of companies and whatnot. The thing that made you great is degraded the more successful that you become.
    0:49:34 And some people fight this very well, but a lot of people don’t. It’s a tough thing.
    0:49:39 I think the laziness aspect of it, of once you become more financially independent, you’re not driven.
    0:49:44 For most of my career, I was writing because that was how I fed my children.
    0:49:48 I have to do this. Yes, I love it. Yes, I enjoy it, but I absolutely have to do this.
    0:49:53 Once you get to a point where it’s like, look, I still love to do this, but I don’t have to do it anymore.
    0:49:58 Is my motivation lower than it used to?
    0:50:02 I think the answer is yes. I don’t like to admit that, but I think the answer is yes.
    0:50:07 Now, I’m still very motivated to keep writing because I love doing it.
    0:50:12 And I think there’s a part of it that I enjoy more now that I’m not doing it to feed my children.
    0:50:18 I’m doing it because I love the art of writing rather than just the business of writing.
    0:50:24 But people’s motivations change over time.
    0:50:27 Now, part of that is great. I don’t want to be 60 years old and having to work to feed myself this week,
    0:50:33 but you shouldn’t pretend that it’s going to not impact the thing that made you great.
    0:50:37 I want to come to writing later on. I get a lot of questions about your process around that.
    0:50:41 But before we get there, what is risk?
    0:50:44 You can have a million different definitions of risk. I think, broadly, it’s anything that’s going to prevent you
    0:50:49 from achieving the goals that you want. That’s a very basic answer, but I think that’s what it is.
    0:50:55 And the reason that’s important is because take volatility in the stock market.
    0:51:00 Is that risk? Well, it could be. If you’re a day trader, then yes. If the market goes down tomorrow, that’s a risk for you.
    0:51:06 If you’re going to retire in 50 years, it’s not whatsoever.
    0:51:09 So just defining it in personal terms is, I think, the most important, but a lot of finance is not that.
    0:51:16 They define risk as volatility, whatever it might be, recessions, all these different things, but it’s a very personal answer.
    0:51:23 What is risky for me might not be for you and vice versa.
    0:51:27 And this is what gets back to most financial debates are people with different time horizons talking over each other.
    0:51:32 There’s a quote I love that is personal finance is more personal than it is finance.
    0:51:36 That is really important for everyone. You and I should not pretend that risk for renaissance technologies is going to be the same for you and I within our personal household.
    0:51:45 It’s completely and utterly different.
    0:51:47 So anything that pulls you away from whatever goals you personally have is what I would define as risk.
    0:51:52 If you had to break down the skill differences between accumulating money, keeping money, and spending money, how would you do that?
    0:52:01 I’ve often defined it as getting rich and staying rich are completely different skills.
    0:52:05 And there’s not that many people who are equally skilled in getting rich versus staying rich.
    0:52:10 There’s, you know, a sliver society that’s very good at getting rich that has no ability to stay rich.
    0:52:15 And there’s some people who are very good at holding on to money, but much less talented at building it and growing it over time.
    0:52:22 When you have both skills combined, it’s a very special thing.
    0:52:25 Buffett is obviously that Bill Gates is that there’s a handful of people who are extremely good at getting rich and have stayed rich very well.
    0:52:33 The example that I always use is Bill Gates when he started Microsoft took the most audacious entrepreneurial swing that maybe anyone’s ever taken of saying every desk in the world needs a computer on this.
    0:52:45 And he’s saying this in 1974, whatever it was, crazy amount of risk, crazy bold vision.
    0:52:51 At the same time, he said that he always wanted Microsoft to have enough cash in the bank to make payroll for one year with no revenue,
    0:53:00 which is the most conservative pessimistic way to run a business.
    0:53:04 So he’s like very risk-taking and very conservative paranoid at the same time, very good at getting rich, very good at staying rich at the same time.
    0:53:14 It’s very unique to have both of those acting at the same time.
    0:53:17 And I think at the individual level, you can have it too.
    0:53:20 My net worth, you’d say, is very barbelled, like a lot of cash. That’s the paranoid conservative side and stocks that I hope to hold for 50 years.
    0:53:30 That’s like incredibly audacious that this is actually going to work out over the next half century.
    0:53:35 And I don’t think that’s any contradiction.
    0:53:38 It’s just trying to get both of the skills of getting rich and staying rich work at the same time.
    0:53:42 Speaking of staying rich, one of the stories we talked about last night was the Vanderbiltz and how they basically blew a $400 billion fortune.
    0:53:51 What happened?
    0:53:52 If you look at all of the robber baron, very wealthy families, the Carnegie’s, the JP Morgan’s, the Ford’s, the Rockefellers, the Vanderbiltz,
    0:54:01 I think virtually all of them did well or did a decent job at managing that dynastic money except the Vanderbiltz.
    0:54:09 The Vanderbiltz completely and utterly botched it.
    0:54:12 The stat is, you know, when Cornelius Vanderbilt died, his net worth adjusted for inflation because he died in the 1800s was the equivalent of $400 billion.
    0:54:21 And in three generations, there was nothing left, which is an astounding thing to think about.
    0:54:25 And in between there sat three generations who just blew money in the dumbest ways you can imagine.
    0:54:32 And the rate, the reason you could say it was dumb is because I don’t think any of them were happy.
    0:54:36 I think they were pretty much all miserable if you dig into the biographies of these three generations.
    0:54:41 A lot of the other robber baron families taught their children, taught their heirs to run the business or to become good philanthropists, whatever it was.
    0:54:50 The Vanderbiltz effectively told their heirs, your job, your sole purpose on this planet is to spend more money than anyone else.
    0:55:00 And so they did it.
    0:55:02 They built the biggest houses that were so big they didn’t even want to live in them because they were too big.
    0:55:06 They threw parties that were so extravagant.
    0:55:08 They were just burdens on themselves.
    0:55:10 They were used like their sole financial metric is can you spend more money than the other socialite?
    0:55:16 And they were all miserable for it.
    0:55:18 And the story that a lot of people know now is that the first Vanderbiltz heir to not get any money when all the money was exhausted.
    0:55:25 The first heir where there’s nothing left was Anderson Cooper of CNN.
    0:55:29 His mother was a woman named Gloria Vanderbilt.
    0:55:32 She got kind of the last trust fund in the family.
    0:55:36 And Cooper is not only the most successful Vanderbilt heir in like 180 years.
    0:55:41 He’s probably the happiest.
    0:55:43 And he’s talked about this, that money that you are given that you inherit can be a burden to your ambition, a burden to your identity of building a name for yourself.
    0:55:54 And he was kind of the first Vanderbilt heir who is like relieved of the burden of having to carry on this thing of like, I’m a socialite.
    0:56:02 I’m a Vanderbilt.
    0:56:03 And he’s just like, I’m going to build my own name and my own career.
    0:56:05 And I’m sure because his mother was Gloria Vanderbilt, there were doors open to him that would not be open to anyone else.
    0:56:11 But he pretty much had to build it for himself for the first time in 150 years.
    0:56:15 Do you believe that money should be able to pass between parents and kids?
    0:56:20 Well, Abel, sure, it’s your decision, but there are obviously downsides.
    0:56:24 And I’m sure I hope it’s a long time for now that I’ll leave my kids some money, not a lot.
    0:56:30 I love the Buffett quote where he says, leave your kids enough money so that they can do anything, but not so much money that they can do nothing.
    0:56:37 And that I think is really important.
    0:56:39 I want to use whatever money I’ve saved to give my kids the best opportunity of building the life that they want, but not so much money that they are forced to live the life.
    0:56:49 That I want for them.
    0:56:51 I’ve met some families who are very wealthy and wealth becomes like a personality burden of because I inherited this much money.
    0:57:02 My job is to just be an heir of my grandfather, an heir of my of my parents rather than finding out who I am and discovering who I am for myself.
    0:57:12 That’s just like the very high levels, but you don’t want the wealth that you pass your kids to burden them into a lifestyle that they don’t want for themselves.
    0:57:20 You just want to be like, here’s enough money so that you can have the leverage and the tools to find out who you want to be and live the life that you want, but not so much that it’s going to burden you into like forcing you into a direction that you don’t want to be.
    0:57:32 It’s almost like there’s a geometric progression of surface area here where the more houses you acquire, the more staff you need, the more staff you need, the more managers you have, the more managers.
    0:57:43 I was talking to Sam Zell, we were supposed to record a podcast, it never happened because he unfortunately passed away, but when I was talking to him, he just wanted two houses.
    0:57:54 He didn’t want ten houses, he didn’t want all of these things like I can just rent them. I don’t want to hassle, I don’t want the burden that comes with that. Do you think that we lose sight of that?
    0:58:04 And then there’s sort of like a natural entropy to wealth, right? Like it starts to expand and you actually have to apply a lot of energy to keep it small.
    0:58:13 Yeah, it’s obviously not the case that the more money you have, the less happy you’re going to be. That’s obviously wrong.
    0:58:18 But I think if you have more money, you can have more complicated life and complication can lead to a lot of unhappiness. That’s definitely true.
    0:58:25 And I think this is mostly true for people who are like middle wealth. If you’re like extreme upper wealth, you can just hire out every decision people can take care of for you.
    0:58:34 It’s people who have enough money to buy a second home, but they have to manage it themselves. That’s when things get like really complicated in your life.
    0:58:41 Many years ago, I did this consulting session with a group of NBA rookies. They were some of them were 19, 20 years old and they’re now making millions.
    0:58:50 And a lot of them grew up in inner city poverty. They grew up very, very poor and when they are teenagers, they signed contracts for millions of dollars.
    0:58:58 It’s like such a stark movement for them. And the purpose of this conversation was to talk about money to try to prevent the very well-known path of athletes going bankrupt.
    0:59:10 A very significant percentage of these people who make millions of dollars are bankrupt by the time they’re 30. So like, how do we prevent that?
    0:59:16 And one of these athletes who was, I think it was 19 said something that I thought was so profound and wise.
    0:59:24 He said, when you grow up in inner city poverty and then you make millions of dollars when you’re still young, that’s not just your money.
    0:59:32 That is mom’s money. That is brother’s money. That is cousin’s money. That is neighbor’s money. You can’t just tell everyone back at home, good luck to y’all.
    0:59:41 I got my money. I’m going to go live in the mansion. You stay in this level of how you can’t do that.
    0:59:46 And he said, the reason so many athletes go bankrupt is not because they bought themselves a mansion. It’s because they bought their fifth cousin a house and they felt so much pressure to do it.
    0:59:57 That they had this like social burden that came with the money. And I think at many different levels, that’s an extreme example, but at a lot of levels, there is social debt that comes with money.
    1:00:10 So if you, at every level of network, like if your net worth grows by $1 with that comes a couple pennies, maybe of like social debt, where you are like incentivized or like push towards to increase your lifestyle,
    1:00:25 or to take care of other people in ways that might be great, but might be a burden, might be a debt that comes with it.
    1:00:30 And at some point, I think that social debt explodes. I mean, people who are worth, you know, 50 or $100 billion, there’s not that many of them, but their social debt to use that money wisely and to donate that money wisely is off the charts.
    1:00:44 It’s enormous, the pressure that they have to use that money well to not end up like the Vanderbilt to, you know, how much pressure does Jeff Bezos and Bill Gates have to donate their money effectively.
    1:00:56 And no matter what they do, no matter what causes they give to, people are going to say, well, that’s not a worthy cause. This was more worthy than that.
    1:01:02 An enormous amount of like invisible social debt that comes with that.
    1:01:05 Talk to me more about that. Like, I love that concept. I don’t want to talk about the extremes where like Bezos and Musk and that.
    1:01:11 But the social debt like almost like you go to a wedding and you have to give more because you have more.
    1:01:17 If your friends know that you have money, you go out to dinner, you’re forced to pay kind of thing.
    1:01:22 Or like, oh, I heard this guy just got a huge bonus last year. Let’s see what he gets me for Christmas kind of thing.
    1:01:28 There’s a lot of that that comes with it. And of course, it’s a good problem to have.
    1:01:32 You should not have sympathy for people who made so much money that they now have social debt like boohoo, deal with it.
    1:01:38 But it’s a real thing. And a lot of it is just the incentive on yourself or within your own family to be like, oh, we have more money now.
    1:01:46 We should I guess we should buy more stuff. It’s like this pressure to do something that you may or may not actually want.
    1:01:52 One other like like weird oddball story that I thought about here on the Amtrak train from Washington, D.C. to Boston is where it goes.
    1:01:59 There is always a quiet car. It’s it’s one section of the train where you’re supposed to be completely quiet.
    1:02:05 If you want to get some work done or whatnot and always what happens, you go there for peace and serenity.
    1:02:11 But everyone on the quiet car is so anxious and upset because on the quiet car, if someone so much as whispers or if your phone accidentally goes off,
    1:02:21 people lose their minds because they have this expectation that it’s going to be completely quiet.
    1:02:26 And so the slightest little sound sets them off.
    1:02:29 And like the irony is you go there for serenity, but you’re just so angry while you’re there because if anyone’s making any noise, it drives you crazy.
    1:02:36 And it’s this thing of just like if your expectations shift, then the littlest thing can can make you upset.
    1:02:43 So like when you go to the quiet car, yes, it is quieter, but you also have this like sound debt that comes with it.
    1:02:48 You could say this invisible sound debt that is a liability now.
    1:02:51 And I think it’s so true with money as well that the more money you gain, the more pressure you have to live a better life that may or may not actually make you happier.
    1:03:01 Will Smith, the actor said that when he was poor and depressed, he could tell himself, if only I had more money, all my problems would go away.
    1:03:09 And then when he became rich and he was still depressed, he couldn’t say that anymore.
    1:03:14 He was still depressed, but he was like, I can’t say that if I had more money, I would be happier because I already have more money that I could ever spend.
    1:03:20 So he said what happened when he became rich is it just removed the hope that he had.
    1:03:24 When he was poor, he had this hope like, oh, I got to make more money and then I’ll be okay.
    1:03:28 When he was rich, he lost all the hope. He’s still depressed.
    1:03:32 Like it’s very inspiring to think if I have more money, my problems will go away.
    1:03:36 But then once you have that money and you realize that you still have just as many problems, maybe even more problems than you had before, that could be a tough thing for people to wrap their heads around.
    1:03:44 We were talking about that a little bit last night in the sense of people who have money can’t really talk about money either.
    1:03:49 Because they have all the same problems that everybody else has, but they don’t feel like they can openly converse about it.
    1:03:56 Because it’s like boohoo.
    1:03:58 And it’s true. They are boohoo problems. There are much bigger problems in the world.
    1:04:03 If you can’t afford health insurance, you’re homeless, whatever, they’re much, much bigger problems.
    1:04:08 But first world problems are real problems in people’s heads and you’re right that they’re, by and large, can’t talk about them.
    1:04:14 It’s very interesting when you get together a group of wealthy people into a room where they can all start.
    1:04:20 Like in that safety zone, they can talk about their problems and they all have the same problems.
    1:04:24 How do I not spoil my kids? How do I do this?
    1:04:26 Things that they can’t talk about with anyone else in their life because those problems are so different from the other like very real material health living problems.
    1:04:36 But there are lots of things that are very difficult to figure out when you have a lot of money or even just a modest amount of money that you can’t talk about.
    1:04:43 Even with some of your closest friends. I am sure you do have friends who have less money than you and I do.
    1:04:48 And you can talk about with those friends, you can talk about anything else in life.
    1:04:52 Problems with your marriage, problems with your health, whatever it might be.
    1:04:55 And there’s all these other things that you’re like, I can’t talk about the things that are actually giving me anxiety right now.
    1:05:01 It seems like the meta skill to think about right now throughout this conversation is how do we learn to manage our expectations?
    1:05:07 This is maybe this is how we started the podcast. I don’t want my expectations to never move.
    1:05:12 I want them to just grow a little bit slower than my wealth over time.
    1:05:16 I want it so that in 50 years, I hope that I’m living a better material life to some degree.
    1:05:23 I just want that level to not exceed my net worth over time.
    1:05:27 Once your aspirations exceed your the growth of your wealth, that’s when people get they take too much risk, they go into debt, whatever it might be.
    1:05:33 You’ve hung around and spent time with a lot of wealthy families, either giving talks or individually, the problems are the same.
    1:05:41 How do they deal with not raising spoiled children? How do they what have you learned from that?
    1:05:47 I’d say most of them how do they deal with not raising spoiled children is they don’t deal with it well. It’s a very hard thing to do.
    1:05:54 I had a conversation recently with a guy who was his father is a billionaire and they’ve lived like billionaires his entire life.
    1:06:02 He’s he’s roughly our age and he’s a very down to earth, grounded, polite guy.
    1:06:07 And so I asked him, like, how did you grow up with private jets and mansions and not not become a spoiled little prick because he’s such a nice guy.
    1:06:16 And he said, despite having that much money and living like a billionaire, his parents never taught him, never told him that because we have more money, we’re better than anyone else.
    1:06:27 And they told him quite the opposite.
    1:06:29 Like it’s and he said something that was was really important. He said the reason that so many kids grew up spoiled is because their parents are obsessed with money.
    1:06:38 That’s why the parents are rich is because they’re obsessed with money.
    1:06:41 But it naturally grows into this thing of like you are better than other people if you have more money and people have less money than us.
    1:06:48 Then we’re not there. They are not equal to us.
    1:06:51 And it’s so basic and almost cliche. But if you are very wealthy, but you’re still teaching your kids the good values that will stick with them.
    1:07:00 And the opposite is true too. If you raise your kids, even if you have a lower income, but you raise them with an obsession with money to like that’s the scorecard of measuring other people.
    1:07:09 It’s like, well, what’s your net worth? What’s your salary? That’s why I’m going to measure you by and rank you by.
    1:07:14 That’s when you get spoiled little jerks as children.
    1:07:17 How do you ingratiate and talk to your kids about money?
    1:07:19 Well, our kids are four and eight. So not not that much yet.
    1:07:22 The other thing that I’ve noticed, I’m sure it’s the same for you and other people who have multiple children is that my kids could not be more different in their personalities.
    1:07:31 And of course, they’re raised by the same parents. They shared they shared have their DNA like it’s the same house, the same rules, the same upbringing and they’re utterly different people.
    1:07:40 So you can’t create one philosophy, one parenting philosophy for that.
    1:07:45 The other thing is, even if I know my children today, I don’t know who they’re going to be when they’re adults.
    1:07:50 Does my daughter want to be a partner at Goldman Sachs? Does she want to work for Greenpeace? Does she want to be a kindergarten teacher?
    1:07:56 You have no idea what they’re going to do. And the different, you know, rules are going to be different for them.
    1:08:02 I also think that what’s true is that the more you try to tell your kids this is what you should do, the more they’re going to rebel against that, particularly when they’re teenagers.
    1:08:12 But the more that you can just lead by example, like a, they are going to pick up on it.
    1:08:17 You don’t need to sit your kids down and say, let me teach you about money.
    1:08:20 And in fact, if you do that, most kids are going to yawn and say, I’m not interested in this.
    1:08:26 But they are definitely paying attention to every time you say, we can’t afford this, they’re they’re making a mental note of it.
    1:08:33 Every time you say, that’s too expensive. Every time you say, I value this, I don’t value that they’re they’re forming a model in their head.
    1:08:40 That’s going to stick with them forever. And so I think just leading by example with them is what we try to do rather than trying to say, this is what I want to teach you.
    1:08:47 These are the values I want to instill back to my own parents. I don’t think they ever sat near my my siblings down and said, let me teach you about money.
    1:08:56 But I, I learned profound money lessons for them by just observing when I was eight years old.
    1:09:02 Well, let’s invert it.
    1:09:03 Well, we can go from parenting and then maybe the money broader. But like what lesson don’t you want your kids to learn about money?
    1:09:10 What would be the worst thing that they can take away from you about money?
    1:09:14 Don’t think that all poverty is due to laziness and don’t think that all wealth is due to hard work.
    1:09:19 It’s not if you are just ranking people by their net worth and ranking their value by the net worth.
    1:09:25 That’s that’s probably the most dangerous thing you can do with money.
    1:09:28 It’s most profoundly wrong take away from money. And yes, a lot of wealthy people earned it, of course.
    1:09:34 And a lot of wealthy people or a lot of poor people made some very bad decisions.
    1:09:37 But once you just use it as a yardstick to measure people’s value by, you’re making a you’re making a huge mistake.
    1:09:44 There are a lot of wealthy people who I cannot stand and some of my best friends don’t make that much money.
    1:09:50 And I think you only you can only have that in your life if you divorce someone’s salary and net worth from their their personal worth in life.
    1:10:00 What else keep going?
    1:10:01 I think what’s interesting. I don’t know if this is the lesson was interesting is that if you want, if you ask most parents, what do you want for your kids?
    1:10:07 Almost every parent will say, I just want them to be happy. I just want to raise happy kids.
    1:10:11 And then if you said, do you want your kids to be rich and successful?
    1:10:14 Like, well, sure, but I just wanted to be happy. I just I just want them to be happy.
    1:10:18 So then figuring out how to use money as a tool to make you happier rather than just a tool to pile on to become wealthier is really important.
    1:10:26 That I would, you know, there are for sure people who earn 30 grand per year that are so much happier than people who earn $3 million per year.
    1:10:33 And understanding that value of money, I think is is really important.
    1:10:37 Like, what can money do to make you happier?
    1:10:39 Because there’s no other purpose. There’s nothing else that you should even think about other than that.
    1:10:44 What do you think is the biggest risk to capitalism?
    1:10:47 I think it’s always going to be the case. It is inevitable.
    1:10:50 And it is actually ideal that there are some level of inequality in the world.
    1:10:55 It’s not only it’s not only inevitable. It’s ideal. The opposite of that is a nightmare.
    1:10:59 But it’s also the case that you do not want a third of society waking up every morning and saying, this doesn’t work for me.
    1:11:07 This system doesn’t work for me. So once you get to some critical level, maybe it’s not 30%, whatever it is.
    1:11:13 But if enough people wake up in the morning and say, this sucks, this system doesn’t work, then it’s going to reverse itself.
    1:11:20 And there’s a very long history of that.
    1:11:22 So the balance of you want inequality, because people’s skills are unequal, you want that to be the case.
    1:11:29 But there is some barrier at which it starts to reverse itself.
    1:11:32 And it becomes a pitchforks in the streets kind of scenario that reverts.
    1:11:38 Now, in the history of the United States, that’s happened several times in the 1920s and the Great Depression.
    1:11:43 I’ve been thinking what we’ve dealt with in the last couple of years.
    1:11:46 There’s always a pendulum between labor and capital workers and investors.
    1:11:51 And it kind of swings back and forth of who’s taking the lion’s share of the spoils in this economy.
    1:11:57 In the 1920s, it was capital from the 19, probably 50s to 70s, it was labor.
    1:12:03 And since then, it’s been capital and it kind of shifts back and forth.
    1:12:07 Now, just in the last three or four years, there’s been a huge growth.
    1:12:12 The segment of society whose incomes have grown the most tends to be the lower incomes.
    1:12:17 We’re still kind of attached to this narrative of the rich get richer and the poor get poorer.
    1:12:22 But in the last couple of years, it has kind of flipped around at least to a degree that we haven’t seen in a very long time.
    1:12:26 Is that the pendulum shifting towards another 30-year trend?
    1:12:30 Maybe, I have no idea, but that pendulum is always there to kind of keep itself in check.
    1:12:35 And I think if it gets too extreme, you can get very extreme outcomes.
    1:12:40 We don’t remember this now, but in the 1930s, during the Great Depression, the words “dictator” and “authoritarian” and even “fascism” were not the dirty words that they are today.
    1:12:53 A lot of people during that era, it was not uncommon for people to say capitalism and even having a big democracy just doesn’t work.
    1:13:05 The Great Depression in their minds proved that it didn’t work.
    1:13:08 And people’s push to say, “Hey, look at all these countries in Europe that are going towards fascism.
    1:13:13 Maybe we should try that because this didn’t work.”
    1:13:15 I think that’s the danger when you get too unequal in society is that too many other people can be tempted to saying,
    1:13:21 “That didn’t work. Let’s try something even more extreme.”
    1:13:24 It’s almost like I feel like I don’t have opportunity.
    1:13:26 In a minute, I feel like I don’t have opportunity.
    1:13:29 And it’s almost like we want equal opportunity and we’re okay with unequal outcomes.
    1:13:35 Yeah, it’s a really tough thing.
    1:13:38 And I would not, I think you and I, if we felt that we were trapped,
    1:13:42 that there’s no way, no matter how hard we work, if we felt, whether it’s true or not, that we were trapped in a low-income job,
    1:13:49 you and I would be prone to some extreme views, too.
    1:13:52 Oh, totally.
    1:13:53 There’s a saying I love that.
    1:13:55 It was from a Russian poet who spent a lot of time in the Gulag.
    1:13:59 And he says, “Man becomes a beast in two weeks.
    1:14:03 If you have two weeks of deprivation, two weeks without food, two weeks in solitary confinement,
    1:14:09 a refined, kind, polite person becomes an animal.”
    1:14:13 So like, if you put someone in an extreme scenario, they’re going to be prone to extreme views, extreme outcomes.
    1:14:19 Do you think most adults understand compounding?
    1:14:21 I think it’s not intuitive to virtually anyone.
    1:14:24 Michael Badneck, a good friend of mine, has a saying that’s so simple, but I think sums us up the best.
    1:14:29 He said, “If I asked you, what is 8 plus 8 plus 8 plus 8?”
    1:14:34 You can figure that in your head in five seconds.
    1:14:37 If I said, what is 8 times 8 times 8 times 8 times 8, even if you’re a math genius, you’re like, I don’t know.
    1:14:44 It’s such a huge number.
    1:14:45 Like, I have no idea what it is.
    1:14:47 Basic linear math is very intuitive, very easy.
    1:14:50 Compounding math is just, it’s so, it’s so unintuitive for even people who understand it.
    1:14:55 And it’s everywhere.
    1:14:56 Compounding is not just in your bank account, your brokerage account.
    1:14:59 There’s compounding in nature.
    1:15:00 There’s compounding for social trends.
    1:15:02 And it’s easy to underestimate how big something can become because compounding is so counterintuitive.
    1:15:08 You see this with COVID, which was compound interest at its prime.
    1:15:12 Like this virus that in the early days is, you know, doubling every day, whatever it would be.
    1:15:17 And that’s how you go from, oh, three people are infected in March of 2020 to today.
    1:15:22 Like, I don’t know anyone who’s not had COVID.
    1:15:24 And so it goes from literally three people to the entire world in the blink of an eye when it’s doubling that quickly.
    1:15:30 How would you explain it to kids or adults?
    1:15:33 Like, what is the best way to teach people the power of compounding?
    1:15:36 It’s like the one formula.
    1:15:38 I tell my kids this when they’re in math and they’re learning this in sort of grade eight, grade nine.
    1:15:43 They learn about compounding.
    1:15:44 And I’m like, your teacher is never going to tell you this, but this is the most important formula you’re probably going to learn in your math class.
    1:15:51 Yeah, I don’t know if, I don’t know.
    1:15:52 I’m not making this up right now.
    1:15:53 I’ve not thought about this.
    1:15:54 I don’t know how I explain it, but just growth fuels more growth.
    1:15:58 It’s like the more you grow, the more fuel you have for more growth.
    1:16:02 That’s not a very good explanation for it.
    1:16:05 But that’s the thing to wrap your head around is like, it’s not what you start with.
    1:16:10 It’s just like how long you’re doing it for.
    1:16:12 And it’s not even the growth.
    1:16:14 It’s the duration.
    1:16:15 Yes.
    1:16:16 So I said this earlier how I think about my own investing philosophy.
    1:16:19 If I can be average for an above average period of time that leads to a way above average result.
    1:16:27 It’s not, it’s not about like, what are the returns that I can earn this year?
    1:16:30 If I can earn 8% returns for 50 years, the results are ridiculous.
    1:16:34 The results are absurd.
    1:16:36 And so maximizing the variable that matters, which is time and endurance, you know, all compounding is effectively is returns to the power of time.
    1:16:44 And so if you understand math, that the exponent there is what’s doing all the heavy lifting, like maximize for that.
    1:16:50 But where is all of the effort in the investing industry?
    1:16:54 It’s in the smaller number.
    1:16:55 It’s in returns.
    1:16:56 How do I increase my returns this year?
    1:16:58 But I think when you understand like, no, all the power, all the wealth, all the leverage is in the endurance.
    1:17:04 Just focus on that before you think about anything else.
    1:17:06 That’s a really powerful way to think about it.
    1:17:08 Let’s switch gears and talk about reading and writing.
    1:17:11 How do you select what you read?
    1:17:13 I heard this idea.
    1:17:14 I think it was from Patrick O’Shaughnessy many years ago who said, you want a wide funnel and a tight filter.
    1:17:20 I will start reading any book on any topic that looks even mildly interesting to me, but I will slam it shut without mercy and move on to something else if it’s not working for me.
    1:17:32 A lot of the reason that people don’t like read, why people don’t read as much as they should, or if they say, I’m not a big reader.
    1:17:39 A lot of the reason is because they feel like morally that they need to finish every book that they start.
    1:17:44 And we realize that the majority of book, there’s four million books for sale on Amazon.
    1:17:48 I bet 3.9 million of those are not meant for you or for me.
    1:17:53 They’re meant for other people, but they just don’t work for what we want out of them.
    1:17:58 And if you force yourself to finish every book you start, of course, it’s going to be a miserable experience.
    1:18:02 But when you are willing to try anything but have a filter that just has no mercy to move on if you don’t like it, that’s when you find the great books.
    1:18:14 Because if you only stick to books that you know you’re going to like about topics that you’re interested, you are missing so many other topics out there that you don’t even know that you would like.
    1:18:23 You have to try a million different things, but then cut it off very quickly if you don’t like it.
    1:18:28 So that’s how I try to read. If it’s even slightly interesting, if someone has said, oh, this is a good, I will start reading it.
    1:18:34 By the way, Kindle samples are free. You have no excuse to not try any book and then just mercilessly cut it off if it’s not working for you.
    1:18:43 I find this really interesting because with my oldest who reads a ton, I just put books on his nightstand and some of them I think he’ll like.
    1:18:52 Some of them I don’t think he’ll like and he randomly he’ll pick them up and he read like an immune system textbook last year and loved it.
    1:18:59 Yes, I think there’s a lot of like that. If you ask me right now, would I like to read a book on the immune system?
    1:19:04 I say, I don’t know, not really. But there are so many topics like that over the years that I never would have thought that I would like that I start reading.
    1:19:11 I’m like, this is incredible. Or it’s working for me in that moment. It’s a missing puzzle piece in that moment.
    1:19:17 There are a couple books that have always been on my go to books that I recommend to other people.
    1:19:22 Oh, this is one of my favorite books of all time. A couple of those books, I went back and reread and I’m like, they’re really not that good.
    1:19:29 But at the time that I read them, it was a missing puzzle piece that it was like perfect for me in that moment.
    1:19:35 Even if when I read it now, I’m like, this book’s kind of very basic, not that well written.
    1:19:40 And so I think that missing puzzle piece is true for a lot of people.
    1:19:43 And that’s why I like you need to read a lot of books because what other people think are good may or may or may not be the book that you need at that moment.
    1:19:51 Are you a Kindle reader mostly?
    1:19:53 I go back and forth. I’m in a Kindle kick right now.
    1:19:56 And I’ve been in physical books before what I love about Kindle is so easy to highlight and go back and search.
    1:20:04 Which for me as a writer is really important.
    1:20:06 When I’m writing, I’m like, oh, what was that quote from this book? I need to go find that really hard to do that in a physical book.
    1:20:12 Where’s Kindle? It’s just so easy.
    1:20:14 Do you take them out of the Kindle or just leave the highlights on the Kindle?
    1:20:17 I use the Readwise app.
    1:20:19 And so everything that I highlight, whether it’s in a blog post or on Twitter or it goes all into that.
    1:20:24 David Senra is the one who said his Readwise feed of all of his highlights is his smart Twitter feed.
    1:20:31 Twitter can be filled with so much garbage and noise, but Readwise, you can flick through.
    1:20:35 I think David Senra said he has like 28,000 highlights and you can sit there and scroll it of these like amazing quotes and anecdotes that he’s highlighted over the years.
    1:20:43 Are there passages that stick with you or haunt you that you’ve read that you can’t stop thinking about?
    1:20:49 This might seem a weird one, but I just because I’m a writer too, as you are, I’m a sucker for just a well-crafted phrase.
    1:20:55 But there was one, I forget who wrote this and I’m sorry, I can’t tell you who wrote this, but it was a book about D-Day.
    1:21:03 And it was talking about this one group, this one company of soldiers on D-Day of whom many of them died.
    1:21:12 And the passage was all of them were prepared to die that day and all of them did die that day.
    1:21:19 And that was something, it’s such a beautifully crafted sentence and it’s also just haunting in its own way.
    1:21:25 I’m such a sucker for that. It’s not like, I always say the best story wins.
    1:21:29 You could phrase that fact that they all died a million different ways, but however the author was, phrase that always really stuck with me.
    1:21:36 Why do you think the best story wins? What’s behind that?
    1:21:39 What we’re trying to do when we read a lot of times is just contextualize whatever fact or story that was within our own lives.
    1:21:45 And it’s much easier to contextualize a story than a statistic because there’s a human element to a good story.
    1:21:51 And I also, it’s just so much easier to remember and stick with you.
    1:21:55 I don’t remember any of the formulas that I was forced to memorize in school, forced to memorize the night before the test or remember a single one.
    1:22:03 But every good story that I was told, some of them when I was six years old, I still remember.
    1:22:08 So because it’s just so much easier to remember a story than a statistic and it’s easier to contextualize it within your own life.
    1:22:14 And because there’s so much emotion embedded in it, stories are like leverage for good statistics.
    1:22:20 If you decide, like there’s some statistics, like I just said, if I said first platoon of company E all died on D-Day, that’s a statistic.
    1:22:29 But if you phrase that, if you put a name or a face to it, it becomes a completely different thing.
    1:22:35 I always use the example of Ken Burns, who makes the best documentaries about US history.
    1:22:40 And the vast majority of what is in his documentaries are already known.
    1:22:45 Documentary about the Civil War or World War II, you know how it ends, you know what happened.
    1:22:49 There’s not that much new in there, but he is a better storyteller than I think any historian has ever been in history.
    1:22:56 He can tell a story about the Civil War that will literally bring you to tears even if you know what happened.
    1:23:02 You knew what happened, but when you hear the story and see the face and hear the music in the documentary, it will literally bring you to tears.
    1:23:08 And Ken Burns has talked about how important music is in his documentaries, the background music.
    1:23:14 And he said that he will literally edit the script so that when the narrator says a specific emotional word, it matches up with a beat in the background music
    1:23:25 so that the emotion and the music is literally aligned like that.
    1:23:28 No other historian is doing that.
    1:23:30 No other historian does that.
    1:23:32 And that’s why he has the leverage by talking about the Civil War that no other of the historians who are writing about the Civil War can recreate.
    1:23:43 Take a few seconds and think about how you would teach me to tell a better story.
    1:23:50 You’re one of the best storytellers of our generation.
    1:23:53 Teach me how to tell a story like Morgan Housel.
    1:23:57 I think it’s two things. One is right for an audience of one, which is yourself.
    1:24:04 Don’t think about other people.
    1:24:06 Don’t think about who’s going to read this.
    1:24:08 Don’t ask yourself how is the reader going to interpret the sentence.
    1:24:11 Write a sentence that moves you, that makes you when you read it, you’re like, I like that without thinking about anyone else.
    1:24:19 I think once you start thinking about who is my audience and what are they going to like, you start to pander.
    1:24:25 And you start to like perform for them in a way that is very hard to like create a good emotional story about just write for yourself.
    1:24:33 The other is don’t forget how impatient everyone is.
    1:24:38 So this is a sense where maybe you are thinking about the reader, but everyone is so impatient when they’re reading that you just always have to ask yourself, what is the point that I’m trying to make?
    1:24:47 Make that point and get the hell out of people’s way and move on to another point.
    1:24:52 And most storytelling, you lose it once you lose the reader.
    1:24:57 Mark Twain, he said, he said at one point that when he would edit his work, he would read it aloud to his family and read the story aloud.
    1:25:06 And when he saw them getting bored, he would make another cut that part.
    1:25:11 They’re clearly dozing off here.
    1:25:13 And when he would see their eyes bug up, he’d be like, Oh, this is a good thing. This is a good part.
    1:25:18 And I think Mark Twain was the one who said, leave out the parts that readers tend to skip.
    1:25:23 That’s the key to good writing. Leave out the parts that people tend to skip.
    1:25:26 I think that’s important to keep in mind, too, is just write for yourself in a way that you like and get to the point and get out of people’s way after that.
    1:25:35 How did you learn to write? You didn’t even go to high school.
    1:25:38 When I was at the Motley Fool for 10 years, that was a 10 year period where I was sometimes writing three posts per day, three articles per day, doing that every day for almost a decade.
    1:25:49 I wrote thousands and thousands of blog posts.
    1:25:52 And when you write online, people are merciless about the feedback they give you.
    1:25:58 The readers in the comment sections are on Twitter will tell you in no uncertain terms, this article was shit and you did a terrible job.
    1:26:07 Or they’ll say this was really good. I really enjoyed it.
    1:26:09 So having that level of constant feedback and doing that thousands of times over a decade will turn anyone into a much better writer than they were when they started.
    1:26:19 So that was really what it was for me. It’s a combination of quantity and fierce, unvarnished feedback from readers.
    1:26:27 Do you test ideas?
    1:26:28 I think in some ways you test ideas in Twitter and if they work, you can turn those ideas into a blog post.
    1:26:35 If the blog post works, you can turn it into a book idea or book chapter.
    1:26:39 That’s kind of the natural progression for a lot of these things.
    1:26:42 And just like it’s very true in comedy too, even the best comedians, the world-class comedians don’t necessarily know what’s funny until they’ve tested it.
    1:26:50 And this is why George Carlin, Chris Rock, Jerry Seinfeld, they test their new jokes in tiny clubs.
    1:26:57 Because even Chris Rock does not know what’s funny until they’ve tested it, until he’s tested it.
    1:27:01 And I think it’s true for writers as well.
    1:27:05 I’ve had a lot of experience with, I’ll write a blog post and I’m like, this is good. This is some of my best work.
    1:27:11 And it flops. No one else likes it.
    1:27:13 And the opposite is true too. The biggest, most popular blog posts I’ve ever written were always ones where when I was writing and I was like, I don’t think this is any good.
    1:27:23 This is so obvious. It’s so boring. It’s too personal. No one else is going to care about this that does well.
    1:27:29 So even after doing this for so many years, I don’t know if my ability to find a topic and say like, ooh, that’s going to turn into a good post is really that good, which is why you kind of have to test ideas over time.
    1:27:40 It’s so interesting because podcasts are like that too. I’ll record an episode and I’ll be like, oh my God, that was mind blowing.
    1:27:46 And then, you know, three months later, I’ll check at the stats and be like, what? And then I’ll record a podcast where I’m like, oh, you know, I wasn’t that engaged.
    1:27:53 And I look at the stats and it’s like off the chart.
    1:27:55 Yes. The most popular blog post I’ve ever written by far, by like an order of magnitude, was a post in 2017 that I wrote about I grew up with and still have a stutter.
    1:28:08 And when I was a child and teenager, I could barely speak. It was a very severe stutter when I was a child.
    1:28:14 And I couldn’t really overcome it to where I can talk to you like it to now until I was 30 years old.
    1:28:19 And so I wrote a post about this trial. It’s called overcoming your demons.
    1:28:25 And it was the most popular post I ever wrote. When I published it, I literally hid it from our blog feed because I was like, no one’s going to be interested in this.
    1:28:32 I lose a little hidden like the link was out there, but it wasn’t even on the feed because I was like, I’m so embarrassed about this that I would just be writing about a personal thing.
    1:28:40 No one else cares about this. And I really felt that way. And it turned into the most popular thing I ever wrote. It’s hard to tell.
    1:28:46 Do you think you were scared to put it out there?
    1:28:48 Combination of scared. Also, the point of the post was overcoming your demons that I started with this like profound disability that had such a big impact on my childhood and I overcame it.
    1:29:00 And now I speak on stage and do these kind of podcasts. And I felt like it was to look at me, look at me, look at me. I didn’t want that.
    1:29:08 But I think everyone has their demons. You do. Everyone has something where they’re like, I’ve got this problem in my life.
    1:29:17 And a lot of those are hidden. People don’t talk about them because they’re embarrassed. They don’t want to talk about it. It’s too personal.
    1:29:22 And I think when you are vulnerable and open, people love it because even if you don’t stutter, you’re like, oh, I have this similar, I have this issue, whatever it would be.
    1:29:33 And like, thank you for telling me that your life was not perfect. Thank you for being open about the struggles that we all have in our lives.
    1:29:40 It’s a fine balance between that and being too personal, which we’ve all seen online, or being too braggy, egotistical about like, look how much I overcame.
    1:29:51 I’m so important. I’m so special. It’s a heart. It’s a balance. It’s almost like a strategic. Some people use vulnerabilities strategically.
    1:29:58 Yes, you can tell. There was that viral LinkedIn post a year or two ago of, it was a founder and he said, I just had to lay off half my company and he included a picture of him with like tears running down his face.
    1:30:09 People are like, that’s terrible. You like shame on you for just trying to like pull up the heartstrings and say like, oh, I’m so empathetic that I cry.
    1:30:18 And I feel like it’s actually a hard balance between like, why did my stuttering post work? But that picture was just universally panned.
    1:30:27 It’s a balance, but I think it’s hard to know where you cross the line there.
    1:30:31 I want to come back to comedians for a second. What did they know about telling stories that we should learn from them?
    1:30:38 I forget who says this and this is not a direct quote. I’m paraphrasing it. I’m going to do a much poor job paraphrasing it, but it’s like comedy is a way to show you’re smart without being arrogant.
    1:30:49 Something like that. That’s not the quote. I’m doing such a bad job paraphrasing this, but I honestly think that the best comedians are the some of the smartest people in society.
    1:30:58 They understand psychology. George Carlin understood psychology. I think better than Daniel Kahneman did. That’s a bold statement, but I think that is I think that is actually true.
    1:31:07 They are so smart at understanding how the world works, what makes people tick, how people think, but they’re doing it in a way where they don’t want to just impress you with their intelligence.
    1:31:18 They want to make you laugh. What could be better than that? And so I’ll give you one example. My favorite George Carlin line.
    1:31:24 He says, have you ever noticed that everyone driving slower than you as an idiot and everyone driving faster than you as a maniac?
    1:31:32 A, it’s it’s funny, but B, it’s like, God, that is if you think about that’s profound and understanding like how like relative views of other people and whatnot.
    1:31:40 And so they are, I think they’re absolute geniuses, but they want to deliver it in a way rather than using big words to say like, look how smart I am, they just want to make you laugh.
    1:31:48 And they are also because particularly for like a young comic, if they are not making you laugh quickly, they’re going to get booed off stage.
    1:31:56 So they are the epitome of one liner, just like so succinct in their delivery, so succinct in their writing, because they don’t have the luxury that a lot of authors do of like, let me write a 7000 word chapter.
    1:32:10 A comedian on stage is like, if you don’t make me laugh every 10 seconds, you’re going to get booed off.
    1:32:14 It’s interesting because you mentioned psychology there. They’re keen observers of human nature and psychology.
    1:32:21 And all we’ve talked about today, we’ve talked about it through the lens of money, but it’s basically psychology.
    1:32:27 I think a lot of things in life fall under this umbrella of how do people make decisions around uncertainty, risk and lack of information.
    1:32:37 And that is health, that is politics, that is friendships and marriages, and it’s also money. A lot of things fall under the same umbrella.
    1:32:45 There’s a study of how do people behave. And one of the things I think is important here is that you can learn so much about money by studying and reading fields that have nothing to do with money.
    1:32:57 I think you can learn more about money by reading about politics, military history, biology, sociology, then you will by reading a finance book.
    1:33:04 Because you’re just trying to figure out how do people make decisions, how do you make decisions and how do other people make decisions.
    1:33:10 And by and large, you’re not going to learn that in an economics textbook, but you will learn about it by reading all these other fields that have nothing to do with money.
    1:33:17 What’s your process for writing?
    1:33:19 I don’t think this is a good advice. So if you’re a writer out there, I’m not saying this is the right way to do it.
    1:33:24 But one of the things that I do that I think is not common is I write, by the time I get to the bottom of a post, it’s pretty much the final draft.
    1:33:34 Not because I can write a final draft in one shot, but because I by and large don’t move on to the next sentence until I’m satisfied with the previous one.
    1:33:45 Most writers, most very good writers will do the opposite. They say your first draft should just be a brain dump and then you go back and edit.
    1:33:53 For whatever reason, it’s never really worked for me.
    1:33:55 So now the other thing is I can’t say I think I get too anxious and jittery sitting for too long. So all times I’ll write one sentence.
    1:34:04 When I’m satisfied with it, I’ll get up and like go do the laundry and I’ll come back and write two more sentences and then I’ll go do the dishes or walk my dog or something.
    1:34:11 So it’s very sporadic like that. And I think that contrasts with a lot of writers who are like, oh, I sit down, I can dump 5000 words on the page and then I go back and edit it.
    1:34:20 That is probably the best advice to give. That’s what you should do. And it’s for whatever reason, it’s never really worked for me.
    1:34:28 We should do what works for you.
    1:34:30 I guess that’s it. But most writers that I look up to, I think are much better writers than I do it the opposite.
    1:34:36 How do you hook people? You’re one of the best at sort of you and James Clear, the two people who, you know, the first sentence to your paragraph and sort of like the first part of your story really pulls people in.
    1:34:49 What do you think you do differently?
    1:34:51 I think it’s a constant reminder of how impatient people are. And if you don’t hook them in five seconds, you’re gone. And I know that because I’m a big reader and if you don’t hook me in five seconds, I’m probably gone.
    1:35:01 Unless you are like an author who I really know that I will give you a little bit more leeway to be like, okay, like, I don’t know where your article is going, but I’m going to stick with you because I like you.
    1:35:12 If you’re not that, you got five seconds to catch your attention or else you’re out of there.
    1:35:17 And I think that is it’s easy to overlook that that it’s not just being succinct, you know, in the core of your article, but it’s it’s it’s almost like an inverted pyramid.
    1:35:29 It’s like, people are most impatient in the first two sentences.
    1:35:33 And so you think of me the other way around, they would get impatient after they’ve worked their way through your article and they’re getting bored.
    1:35:39 Like, no, they’re most impatient at the top.
    1:35:41 And there’s a there’s a lot of data that can be very disheartening for authors.
    1:35:45 There was a mathematician who looked at Kindle highlight data and he used highlights as a proxy for how far people making in a book.
    1:35:52 And the assumption was when people stop highlighting in Kindle, they probably stopped reading.
    1:35:56 And he showed that even among bestselling books, the most popular books, the average reader makes like a quarter of the way through.
    1:36:03 That’s in the bestsellers.
    1:36:04 That’s in the good books, a quarter of the way through and they’re done.
    1:36:07 And so just always reminding yourself how impatient people are.
    1:36:10 It’s just like, what’s your point?
    1:36:12 Make your point and get the hell out of people’s way.
    1:36:14 I also think Twitter has made people better writers because the character count limitation has forced people to be like, you have two sentences to tell me your idea.
    1:36:25 And that’s all you get.
    1:36:28 That’s actually, I think that’s been a great thing overall for making people more succinct.
    1:36:32 What makes a good hook?
    1:36:33 It could be a lot of things.
    1:36:34 I could think it could be funny.
    1:36:36 It could be profound.
    1:36:37 I think we were talking about this last night about, I forget who said it, that good writing fits one of the acronyms of like OMG, LOL, you know, like something like that.
    1:36:47 It should be shocking or funny or profound or scary.
    1:36:51 Something like that.
    1:36:52 That’s going to basically an emotion.
    1:36:55 Yeah, yeah, something like that.
    1:36:56 I want to end with two questions.
    1:36:58 So one being what you can leave everybody some parting wisdom on money and life.
    1:37:06 What would it be?
    1:37:07 I think the most important is to realize how personal it is.
    1:37:11 And therefore you really got to be careful taking your cues from other people.
    1:37:15 You and I again, same age, same like going on the list.
    1:37:19 You and I are very similar people.
    1:37:20 Probably have very different views about what to do with money and that is fine.
    1:37:23 Just like you and I might have different views about food.
    1:37:26 You like this food.
    1:37:27 I like that.
    1:37:28 It doesn’t mean that you’re wrong.
    1:37:29 It’s got different tastes.
    1:37:30 People understand that with food, but there is a common sense with money that there is one right answer for everybody.
    1:37:37 And so I think you really have to be introspective and look in the mirror and just say like what works for myself and my own family.
    1:37:42 And even if there are holes and flaws and other people disagree with that, if it works well for me, that’s that’s as good as you can do.
    1:37:49 That’s an important thing.
    1:37:50 And final question.
    1:37:51 What is success for you?
    1:37:53 I heard, I think Jim O’Shaughnessy said that his goal as a parent was not to raise good kids.
    1:38:00 It was to raise good adults.
    1:38:02 Like he wanted to be the kind of father that when his kids became adults, they were well balanced.
    1:38:06 That’s different from raising good kids.
    1:38:08 You want to raise good adults.
    1:38:09 So that would be a big, like maybe the top box to check in my life is looking back and being like my wife and I did our best to raise kids that became good.
    1:38:22 Self-sufficient, well balanced, polite, happy adults.
    1:38:26 That’s excellent.
    1:38:27 Thank you very much, Morgan.
    1:38:28 Thanks, Shane.
    1:38:29 Thanks for listening and learning with us for a complete list of episodes, show notes, transcripts and more.
    1:38:42 Go to fs.blog/podcast or just Google the Knowledge Project.
    1:38:48 Recently, I’ve started to record my reflections and thoughts about the interview after the interview.
    1:38:54 I sit down, highlight the key moments that stood out for me.
    1:38:57 And I also talk about other connections to episodes and sort of what’s got me pondering that I maybe haven’t quite figured out.
    1:39:04 This is available to supporting members of the Knowledge Project.
    1:39:07 You can go to fs.blog/membership, check out the show notes for a link and you can sign up today.
    1:39:14 And my reflections will just be available in your private podcast feed.
    1:39:17 You’ll also skip all the ads at the front of the episode.
    1:39:20 The Furnham Street blog is also where you can learn more about my new book, Clear Thinking, turning ordinary moments into extraordinary results.
    1:39:28 It’s a transformative guide that hands you the tools to master your fate, sharpen your decision making and set yourself up for unparalleled success.
    1:39:38 Learn more at fs.blog/clear.
    1:39:41 Until next time.
    1:39:43 [Music]
    1:39:48 (gentle music)

    The skills it takes to get rich are drastically different from the skills it takes to stay rich.

    Few understand this phenomenon more than Morgan Housel. He's identified unique lessons about wealth, happiness, and money by studying the world's richest families and learning what they did to build their wealth and just how quickly they squandered it all.
    In this conversation, Shane and Housel discuss various aspects of risk-taking, wealth accumulation, and financial independence.

    Morgan explains the importance of understanding personal financial goals and the dangers of social comparison, lets everyone in on his personal financial “mistake” that instantly made him sleep better at night, and why the poorest people in the world disproportionately play the lottery—and why it makes sense that they do. They also touch on the influence of upbringing on financial behaviors, the difference between being rich and wealthy, and the critical role of compounding in financial success. Of course, we can’t have a writer as good as Morgan Housel on the podcast and not ask him about his process, so Housel concludes with insights into storytelling, his writing processes, and the importance of leading by example in teaching financial values to children.

    Morgan Housel is a partner at Collaborative Fund. Previously, he was an analyst at The Motley Fool. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers and was selected by the Columbia Journalism Review for the Best Business Writing anthology. He's the author of two books: The Psychology of Money and Same as Ever.

    Newsletter – The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at ⁠https://fs.blog/newsletter/⁠

    Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠⁠https://fs.blog/membership/⁠⁠⁠ and get your own private feed.

    Follow me: ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://beacons.ai/shaneparrish⁠⁠⁠⁠⁠⁠⁠⁠⁠

    Sponsors

    Protekt: Simple solutions to support healthy routines. Enter the code ”Knowledge” at checkout to receive 30% off your order. ⁠https://protekt.com/knowledge

    Timestamps:

    (00:00) Intro

    (04:46) Risk and income

    (07:40) On luck and skill

    (10:10) Buffett's secret strategy

    (12:28) The one trait you need to build wealth

    (16:20) Housel's capital allocation strategy

    (16:48) Index funds, explained

    (20:59) Expectations and moving goalposts

    (22:17) Your house: asset or liability?

    (27:39) Money lies we believe

    (32:12) How to avoid status games

    (35:04) Money rules from parents

    (40:15) Rich vs. wealthy

    (41:46) Housel's influential role models

    (42:48) Why are rich people miserable?

    (45:59) How success sows the seeds of average performance

    (49:50) On risk

    (50:59) Making money, spending money, saving money

    (52:50) How the Vanderbilt's squandered their wealth

    (1:04:11) How to manage your expectations

    (01:06:26) How to talk to kids about money

    (01:09:52) The biggest risk to capitalism

    (01:13:56) The magic of compounding

    (01:16:18) How Morgan reads

    (01:22:42) How to tell the best story

    (01:24:42) How Morgan writes

    (01:35:42) Parting wisdom and thoughts on success

  • #194 Abigail Shrier: The Parent-Therapy Trap

    AI transcript
    0:00:00 So, I think we got here through a lot of what I call bad therapy.
    0:00:04 Bad therapy is any therapy that introduces new symptoms or makes existing symptoms worse.
    0:00:09 And by that I mean, we’re teaching them over and over.
    0:00:12 Your feelings are the most important thing.
    0:00:14 That’s what we’re broadcasting when we constantly ask them how they’re feeling.
    0:00:18 When we constantly ask them if they’re happy, we’re fretting over their happiness.
    0:00:22 So we’ve made happiness a goal.
    0:00:24 Making happiness your goal is a way to make you unhappy.
    0:00:28 We’re teaching kids they can never ignore any distress, they’ve never ignored any pain,
    0:00:32 and so they’re not able to do it.
    0:00:50 Welcome to the Knowledge Project, a bi-weekly podcast exploring the powerful ideas, practical
    0:00:55 methods, and mental models of others.
    0:00:58 In a world where knowledge is power, this podcast is your toolkit for mastering the
    0:01:03 best of what other people have already figured out.
    0:01:06 I’m your host, Shane Parish.
    0:01:08 Before we dive in, I have a quick favor to ask.
    0:01:11 If you’re enjoying the show and listening on Apple Podcasts, Spotify, or YouTube, please
    0:01:16 hit the follow button now.
    0:01:17 The more followers we have, the better guests we can bring on to share their knowledge with
    0:01:21 you.
    0:01:22 Thank you for your support.
    0:01:24 If you want to take your learning to the next level, consider joining our membership program
    0:01:28 at fs.blog/membership.
    0:01:31 As a member, you’ll get my personal reflections at the end of every episode, early access
    0:01:36 to episodes, no ads or hearing this, exclusive content, hand-edited transcripts, and so
    0:01:42 much more.
    0:01:43 Plus, you’ll support the show you love.
    0:01:46 Check out the link in the show notes for more information.
    0:01:49 Okay, if you’re listening with a child around, now might be a good time for you to put on
    0:01:54 your headphones.
    0:01:55 While this is bound to be a controversial episode, I want to remind you that, as is the case
    0:02:01 with all of our guests, my job is to explore a subject through the eyes of our guest in
    0:02:05 a non-judgmental way.
    0:02:07 If you have a real mental health issue, this episode is not for you.
    0:02:12 If however, you have a nagging feeling that therapy isn’t helping you or your kids as
    0:02:16 much as you thought it should, or you just want to learn more about the topic, sit back
    0:02:21 and listen.
    0:02:22 Today, my guest is Abigail Schreyer, author of the book Bad Therapy.
    0:02:27 In a world where mental health challenges are on the rise, particularly among youth,
    0:02:32 Abigail’s work offers a critical examination of the failings in our current approach to
    0:02:37 therapy.
    0:02:39 In this episode, we use the counterintuitive question, “How would we raise children to
    0:02:44 be as mentally unstable as possible in order to explore the key principles and practices
    0:02:50 that are essential for fostering resilience and independence in our children and ourselves?”
    0:02:56 We don’t just talk about kids, we also explore the concept of “therapist as best friend”
    0:03:01 for adults, questions you can ask before engaging a therapist, and when it’s time to end your
    0:03:07 relationship with a therapist.
    0:03:09 We also discuss the societal trends contributing to the decline in mental health, the role of
    0:03:14 technology in social media, and the responsibility of parents and therapists in addressing these
    0:03:19 issues.
    0:03:20 Abigail shares insights on how other cultures approach child-during differently, and what
    0:03:24 we can learn from their successes.
    0:03:26 Throughout our conversation, we uncover problems in the mental health field from the protocols
    0:03:30 that prioritize ideology over individual needs to the graduate schools that produce bad therapists.
    0:03:37 By listening to this episode, you’ll gain a deeper understanding of the complex factors
    0:03:41 shaping our children’s mental well-being, and the steps we can take to redesign our
    0:03:45 approach to therapy and parenting.
    0:03:48 Abigail’s insights will empower you to make informed decisions and advocate for change
    0:03:52 in a system that, at least based on the numbers, is failing our youth.
    0:03:58 It’s time to listen and learn.
    0:04:08 Some of my favorite brands are on Shopify, including Gymshark, Allbirds, Outway Sox,
    0:04:14 and Aeropress.
    0:04:16 Shopify is the global commerce platform that helps you sell at every stage of your business.
    0:04:20 It doesn’t matter if you just have an idea or already operate a multi-million dollar company,
    0:04:26 Shopify is there to help you grow every step of the way, because businesses that grow grow
    0:04:31 with Shopify.
    0:04:33 What I love about Shopify is that it’s like you have a multi-billion dollar tech team
    0:04:37 working just for you from day one.
    0:04:40 If you’re just starting, this means you can go from idea to store in a few minutes, but
    0:04:44 it also means if you’re an existing company, you can save money and time.
    0:04:48 If you’ve ever checked out from a store and thought that was so easy, chances are it was
    0:04:53 shop pay, which is the internet’s best converting checkout up to 36% better compared to other
    0:05:00 leading commerce platforms.
    0:05:02 Go to Shopify.com/shane now to grow your business no matter what stage you’re in.
    0:05:10 The No Launch Project is sponsored by Protect.
    0:05:13 Protect believes that when you are your best self, you are of the most service to others.
    0:05:17 Try hydration immediately upon waking, before your first cup of coffee, and before during
    0:05:22 or after your workout.
    0:05:24 Try rest one hour before bed and get the best sleep of your life.
    0:05:28 Improve your hydration and your sleep and become the best version of yourself.
    0:05:32 Get 30% off your order at protect.com/knowledge.
    0:05:35 That’s P-R-O-T-E-K-T.com/knowledge.
    0:05:39 Or use code “knowledge” at the checkout for 30% off.
    0:06:01 I was thinking about how to start this conversation, and I think we should actually start with
    0:06:17 the inverse.
    0:06:19 Instead of talking about how to raise strong, healthy, capable children who are independent,
    0:06:25 how would we raise them to be as mentally unstable as possible?
    0:06:30 That’s something I looked at, and the answer seems to be, and I’m a journalist, I interviewed
    0:06:35 a lot of experts in terms of people who are familiar with the psychological research.
    0:06:41 Not the people who hold themselves out as mental health experts guiding everyone, but
    0:06:45 the people who are actually conducting and familiar with the psychological research.
    0:06:49 If we wanted to make kids dysregulated, here’s what we would do.
    0:06:54 We would obsess over their emotions.
    0:06:57 We would ask them constantly how they were feeling about things.
    0:07:01 We would ask them to pay attention to their feelings, so therefore broadcast that their
    0:07:05 feelings were an important and reliable guide to how they were doing in life.
    0:07:13 We would treat them in isolation, treat them as very special and unique and isolated from
    0:07:19 everyone else, unique in the world.
    0:07:23 Never give them a sense that their actions had an effect on others, so therefore they
    0:07:28 had no responsibility to others to be a good citizen, whether that’s on an airplane or
    0:07:34 in a classroom, but constantly talk about them as unique.
    0:07:38 We would give them diagnoses for ordinary behaviors.
    0:07:43 We would pathologize ordinary behaviors and treat them to see themselves as disordered.
    0:07:47 “Oh, that’s just, you know, you have ADHD, oh, that’s your oppositional defiance disorder.
    0:07:52 That’s why you acted out.”
    0:07:53 So, instead of using the sort of lay terms we’ve always used that have to do with character,
    0:07:58 like being a jerk in class or being inappropriate in class, we would say, “No, that’s your oppositional
    0:08:04 defiance disorder.”
    0:08:05 So treat them to see it as a brain problem so that they never felt they had any agency
    0:08:09 to do anything about it.
    0:08:11 And we would teach them to focus on happiness and wellness all the time.
    0:08:16 And I think if we did all those things, we would end up with what we have, which is a
    0:08:19 very dysregulated generation.
    0:08:21 When you use the word dysregulated, what do you mean?
    0:08:23 We’re seeing kids, high school students, university students who cannot control their emotion.
    0:08:29 So teachers report that elementary school kids and even high school kids are throwing
    0:08:34 tantrums in the classroom like they’ve never seen before.
    0:08:38 And we’re seeing even as, you know, the young, this young rising generation goes off to
    0:08:42 the workplace.
    0:08:44 If their feelings are hurt at the workplace, they will complain to HR and try to get their
    0:08:48 boss fired.
    0:08:49 That seems to them a reasonable response to something not going the way they expected
    0:08:55 in the workplace.
    0:08:56 They want everything to stop for them.
    0:08:58 How did we get here?
    0:09:00 So I think we got here through a lot of what I call bad therapy.
    0:09:04 Bad therapy is this, is any therapy that introduces new symptoms or makes existing symptoms worse.
    0:09:09 And by that, I mean all this feelings focused with kids.
    0:09:13 We’re teaching them over and over, your feelings are the most important thing.
    0:09:17 That’s what we’re broadcasting.
    0:09:18 When we constantly ask them how they’re feeling, when we constantly ask them if they’re happy,
    0:09:23 we’re fretting over their happiness.
    0:09:25 So we’ve made happiness a goal.
    0:09:27 The researchers can tell you, and there’s a lot of good research on this, making happiness,
    0:09:32 your goal is a way to make you unhappy because most of life, we’re not exactly happy, right?
    0:09:38 We’re thinking about the work we have, we’re frustrated, we have a worry that’s bothering
    0:09:44 us.
    0:09:45 Whether it’s a rich or an allergy or a slight pain, that we have to repress to get on with
    0:09:50 the business of our lives.
    0:09:52 And we’re doing the opposite with that.
    0:09:54 We’re teaching kids they can never ignore any distress, they’ve never ignored any pain,
    0:09:59 and so they’re not able to do it.
    0:10:00 But how did that start?
    0:10:02 How did this all come into society?
    0:10:05 Did it go slowly and then all at once?
    0:10:08 Was this one bad actor or one person seeded this idea and it took hold?
    0:10:15 Because it seems like everybody’s just following the protocol.
    0:10:18 But who’s creating these protocols?
    0:10:20 How did this happen?
    0:10:21 I think that we created a window or an opening, and parents as a group did.
    0:10:27 How did we do this?
    0:10:28 We had lived through a lot of divorce, we had a lot of broken homes ourselves, and we were
    0:10:34 really worried that we weren’t going to do things properly.
    0:10:37 We needed an expert, and in America in general and across the West, we’ve become more and
    0:10:42 more reliant on so-called experts, even for ordinary things.
    0:10:46 We don’t trust ourselves to handle our lives in the way that we used to.
    0:10:51 We think that basically our lives require a certain amount of expertise, and child-wearing,
    0:10:56 especially, we’ve become totally unconfident in our ability to raise kids.
    0:11:02 Even though the project of raising kids really hasn’t changed in what kids need over centuries.
    0:11:08 I mean, kids need the same things from us.
    0:11:11 But instead, we’ve convinced ourselves that it’s a highly technical project.
    0:11:15 You need to know about a child’s amygdala to do it right.
    0:11:19 And that’s what the experts have been saying.
    0:11:21 It’s not true.
    0:11:22 It flies in the face of all the good psychological research.
    0:11:24 But nonetheless, I do think all these factors have undermined our confidence that we knew
    0:11:29 what we were doing.
    0:11:31 And so then we turned to really bad advice from a whole lot of people who I think very
    0:11:37 often mean well, but they’re giving very bad advice.
    0:11:39 And sometimes their science is just garbage.
    0:11:43 And they’ve been promoting the idea of trauma, trauma is everywhere in our world.
    0:11:48 This is their idea that anything we do to get any time you yell at a kid that can traumatize
    0:11:53 a kid, that injury, emotional injury can be with them for a lifetime.
    0:11:57 It’s not true.
    0:11:58 It’s not what the best research has shown.
    0:12:00 But nonetheless, they peddle this in the popular culture and it makes parents stricken and afraid
    0:12:06 to basically assert themselves as the authority and really have any discipline with their
    0:12:11 kids.
    0:12:12 A lot of the issues you raise are cultural, sort of like in terms of resilience weakening,
    0:12:18 the abdication of parental responsibility.
    0:12:20 These are big like social trends that are going on.
    0:12:24 How much of the problem do you think goes to therapy versus parenting practices versus,
    0:12:29 you know, we’re all just sort of like following the momentum?
    0:12:34 So I think it’s all essentially bad therapy and this is why, because who’s in charge?
    0:12:40 Who’s running the show?
    0:12:42 And today with children, with families, it really is the mental health experts.
    0:12:47 If you doubt that, just think for a moment about the fact that the rising generation
    0:12:51 never says it’s shy.
    0:12:52 They say they have social phobia.
    0:12:54 They never say they’re sad.
    0:12:55 They say they’re depressed.
    0:12:57 They never say, gosh, they went through a tough time in middle school.
    0:13:00 They say they have PTSD.
    0:13:02 They’re speaking the language of psychopathology to understand themselves and each other.
    0:13:07 Parents are practicing the techniques taken from therapists and psychologists.
    0:13:12 Those are the techniques they’re aping when they talk to their children.
    0:13:15 They’re not, there’s nothing natural about the way parents now behave with kids.
    0:13:19 They get down to eye level, they constantly solicit their kids feelings and they talk
    0:13:24 in the language, I see you’re having some big feelings now.
    0:13:28 They’re reading a script and the script is supplied from therapists.
    0:13:32 And then the final piece is schools where they are openly, they’re mandated as trauma-informed
    0:13:37 care across public schools, social-emotional learning, and teachers and counselors, armies
    0:13:44 of counselors are playing shrink with the kids all day long.
    0:13:46 I was talking to somebody recently who said, the worst thing you can do to a 12-year-old
    0:13:51 is try to be their best friend.
    0:13:53 The worst thing you can do to a 40-year-old is try to parent them.
    0:13:55 Do you think that we’re just trying to be our kids’ friends or how do you see it like
    0:14:00 as a parenting level?
    0:14:01 Yes and no.
    0:14:03 So I think that’s a piece of it for sure.
    0:14:05 We’re trying to be our kids’ friends, but we’re also treating them as adults, right?
    0:14:09 That’s what that means.
    0:14:10 When you say you’re trying to be your kids’ friends, first of all, you say, I’m not the
    0:14:14 authority here.
    0:14:15 Now, there’s great research showing that kids actually do need authority.
    0:14:19 They need their parents in charge and if their parents aren’t in charge, they go looking for
    0:14:22 authority elsewhere.
    0:14:24 Kids really need authority in terms of further mental health, further stability for everything,
    0:14:29 for success in life.
    0:14:30 They really need their parents in charge, which doesn’t of course mean being cold and
    0:14:33 unloving.
    0:14:34 It just means that parents are in charge and they have rules.
    0:14:38 You said being their friends, in some ways it’s worse than that because, yes, they’re
    0:14:44 being their kids’ friends, but they’re also assuming that the kids are little adults.
    0:14:50 So for instance, when they play the role of therapist with a child and say, I’m just here
    0:14:56 to affirm your emotions, remember that a kid is still figuring out which of his emotions
    0:15:01 make any sense at all, right?
    0:15:04 A toddler will feel rage if you don’t give him the snack he wanted and you have to teach
    0:15:11 a kid that’s not appropriate.
    0:15:14 You can be disappointed, but screaming and even feeling rage, that’s not what we feel
    0:15:20 anger about.
    0:15:21 We feel anger about lots of things in life, but you can’t feel rage and throw your cheerios
    0:15:26 across the floor because across the room because you didn’t get the snack you wanted.
    0:15:31 And they actually, you have to sort of educate their emotions a little bit.
    0:15:35 You don’t do that with adults, right?
    0:15:38 Mostly you want to sort of, you know, as a therapist, therapists usually want to create
    0:15:42 a space where adults feel comfortable opening up about emotions they might feel embarrassed
    0:15:48 about, right?
    0:15:50 But with kids, they’re just trying to figure out which of these emotions make any sense.
    0:15:55 So the last thing we want to do is what we’ve been doing is affirm every one of their emotions,
    0:16:00 no matter how extreme or dysregulated.
    0:16:04 And then talk to them as if we’re all just, you know, feelers here.
    0:16:09 We’re all just emotional feelers trying to understand each other.
    0:16:13 That’s not actually what kids need.
    0:16:14 They need an adult in charge.
    0:16:16 When you say parental authority, what does that mean specifically?
    0:16:20 Sure.
    0:16:21 So I’m using the language that Diana Bommerin used as a child psychologist or sorry, she’s
    0:16:25 an academic researcher, psychologist of the 1960s.
    0:16:29 And she was the first one to invent what was now, what’s now known as parenting styles,
    0:16:34 but she didn’t really invent it.
    0:16:35 She actually was curious, how were Americans raising their kids and what was the result?
    0:16:41 And she went in with an open mind and what she found that what there are roughly, you
    0:16:46 know, three types, you know, authoritarian, cold, unloving, and obedience focused.
    0:16:52 This basically doesn’t exist in the West anymore, authoritative, which just means parents are
    0:16:58 in charge.
    0:16:59 They set down rules.
    0:17:00 Yes, they will punish if kids, you know, deliberately defy those rules, but they’re loving and,
    0:17:07 you know, they’re, you know, there to, you know, listen and care about their kids and
    0:17:11 even, you know, sympathize with them.
    0:17:13 But the parents are ultimately in charge.
    0:17:16 And those kids always did the best.
    0:17:19 And this study has been replicated hundreds of times.
    0:17:22 Authoritative parenting produces the best kids in terms of success, emotional well-being,
    0:17:29 and even eventual closeness with mom and dad and or parents, whoever the parents may
    0:17:34 be.
    0:17:35 Well, and then the other type, which also doesn’t exist anymore is permissive parenting.
    0:17:40 This was the parenting where it was sort of like anything goes very laissez-faire parenting.
    0:17:44 That also had not great results.
    0:17:47 But what we have today is I argue a little worse because it’s permissive parenting without
    0:17:53 at least the kids had independence.
    0:17:55 So they were able to develop some, you know, confidence and capacity on their own.
    0:17:59 Today we have surveillance parenting parents, you know, literally monitoring their kids on
    0:18:04 their iPhones, not trusting their judgment at all, interfering with, you know, interceding
    0:18:09 with every teacher, eventually even interceding with their bosses in the workplace.
    0:18:14 And you know, constantly running interference with kids, but never having any authority
    0:18:19 with them.
    0:18:20 So never saying to a kid, avoiding the word no, so, you know, never punishing, never asserting
    0:18:25 a boundary with a kid in terms of his behavior or her behavior and what you expect from them.
    0:18:30 But then at the end, but then running interference with them with everybody else in their lives.
    0:18:35 You mentioned the term social emotional learning.
    0:18:37 What is that?
    0:18:38 So that is a project in schools that’s been around for over 15 years now and it’s across
    0:18:45 the West.
    0:18:46 They have various forms of it across the West.
    0:18:48 But the idea was to teach kids emotional regulation and it specifically is a therapeutic
    0:18:54 intervention.
    0:18:55 It doesn’t use moral language.
    0:18:56 It’s not about character.
    0:18:58 It always puts it in terms of non-judgmental coping techniques or wellness techniques or
    0:19:03 anti-bullying techniques or empathy education of various sorts.
    0:19:09 And the problem with it is that however intended in practice, it does everything we would do
    0:19:17 if we were going to dysregulate children, like constantly asking them to check on their
    0:19:23 emotions, constantly talking to them about their bad feelings, constantly having them
    0:19:28 think about a time when they were sad, lonely, left out, or disappointed.
    0:19:32 So it becomes very much like a sort of group therapy and the other and they’ve done these
    0:19:37 studies now.
    0:19:38 So we have some indication that it absolutely is leading to the results because they were
    0:19:42 actually able to do researchers in Australia and England actually tested this, separate
    0:19:47 groups of researchers.
    0:19:49 And they were able to show that the kids in the control group who didn’t go through these
    0:19:52 practices ended up happier, better adjusted, better in terms of depression and anxiety,
    0:19:58 and lower depression, lower anxiety, and also less alienated from parents.
    0:20:04 Because the other bad thing about it is it teased up a criticism of parents because of
    0:20:08 course, if you’re going to sit around with kids ruminating about a time when they were
    0:20:11 sad, lonely, left out, well, whose job was it to keep them safe?
    0:20:15 So criticism of parents is almost inevitable.
    0:20:18 I remember my mom never asked me how I felt as a kid or what I wanted or where we should
    0:20:24 go for dinner or any of these things.
    0:20:26 But she also like spanked me and had all these other disciplinary measures.
    0:20:30 Do you think we’ve progressed in positive ways as parents or is it all sort of actually
    0:20:35 going back to that sort of classic, I would say, 70s and 80s parent is a better thing
    0:20:41 for society?
    0:20:43 Nobody wants to go back.
    0:20:44 Let me just say, nobody wants to go back.
    0:20:46 I don’t think we could.
    0:20:47 We’re a lot more sort of emotionally as aware as it were as a society.
    0:20:52 We’ve decided that it’s really important to be in tune with your kids emotionally.
    0:20:56 And we want that closeness with our kids and we want that affection.
    0:20:59 And I’m not suggesting that we shouldn’t have all those things.
    0:21:03 The problem is the question is, what do you want and what do the kids need?
    0:21:09 You can be as affectionate as you want, but you can’t not be the authority in your home
    0:21:14 because that turns out to be essential for their mental health, thinking the people who
    0:21:18 love me the most are the ones in charge, not the therapist, my mom hired, not the pediatrician
    0:21:23 who’s bossing my mom around, my mom or dad or wherever the parent is, they’re in charge.
    0:21:29 The people who love me most know what’s best for me.
    0:21:32 That basic idea is something kids need.
    0:21:35 So however your style is beyond that, that’s up to you, right?
    0:21:40 If you’re a super lovely person, go for it.
    0:21:44 That’s not the stuff there’s good research on.
    0:21:47 What there’s good research on is when you have an absence of authority, the kids don’t
    0:21:52 do very well.
    0:21:53 Do you think this is like systemic of sort of our generation, I assume we’re about the
    0:21:58 same age.
    0:21:59 I think our kids are close enough that we can say that where I used to see this in the
    0:22:04 workplace as well, where people would follow the protocol and they could never get in trouble
    0:22:09 following the protocol even if they knew it led to a dead end because it’s like I’m just
    0:22:13 doing my job.
    0:22:14 And there’s sort of like, I see a parallel here for parenting, which is I’m just relying
    0:22:19 on the experts.
    0:22:20 I’m just doing like, there’s no sort of agency or response that you know, it’s almost a weird
    0:22:25 abdication of responsibility in the sense of I’m just following what other people suggest.
    0:22:32 I get that.
    0:22:33 I’ll say this, parents are pouring in way more time to their kids than the previous
    0:22:39 generations.
    0:22:41 So it’s hard for me.
    0:22:42 I don’t personally blame parents, right?
    0:22:45 They have so little confidence right now because we’ve done because the mental health industry
    0:22:49 has done everything it can to divest them of any sense that they know what they’re doing.
    0:22:53 Right?
    0:22:54 I mean, in school materials, they refer to parents as caregivers.
    0:22:57 They’re telling the kids, your parents are just service providers.
    0:23:01 They’re caregivers, like any other service provider.
    0:23:05 And then they have trusted adults in the materials.
    0:23:07 This is all across America.
    0:23:09 Trusted adults, who is a trusted adult?
    0:23:11 Any adult a child can trust.
    0:23:13 It could be a school counselor, it could be, but it’s definitely not assumed to be the
    0:23:17 parents.
    0:23:18 I mean, parents are so denigrated in our society.
    0:23:23 So it’s not surprising that they would feel ill-equipped to handle the kid.
    0:23:28 And also we’re not giving the kids the healthiest lives.
    0:23:31 When you start out the day with an iPad with your kid, he’s going to have trouble concentrating
    0:23:36 in school.
    0:23:37 That doesn’t necessarily mean he has a brain problem.
    0:23:41 We won’t know if he has a brain problem unless we make his environment a little cleaner.
    0:23:45 Right?
    0:23:46 By which I mean less chaotic.
    0:23:49 Kids really do need structure, right?
    0:23:52 And they definitely don’t need to be constantly titillated by things like an iPad because
    0:23:55 it will make it harder for them to have an attention span for school, which is more boring
    0:24:01 usually than an iPad.
    0:24:04 So first thing we have to do is give kids a healthier environment, which goes from everything
    0:24:09 from exercise to time in person with extended family, all things kids need.
    0:24:16 People who love them and they love back over a lifetime, that’s essential for our well-being,
    0:24:21 whether it’s cousins, neighborhood kids, and extended family.
    0:24:25 So first we have to give them a healthy life, but instead we give them an unhealthy life
    0:24:28 and then we pour in mental health resources and we don’t notice they’re getting worse
    0:24:33 and worse.
    0:24:34 So how did parents so easily get convinced that we’re not the authority?
    0:24:40 It’s a good question.
    0:24:41 Why did we all buy in?
    0:24:42 I think the culture shifted over time so you don’t notice the temperature of the waters
    0:24:47 changing.
    0:24:48 I’ll give you just one silly example, but from my kid’s school, every time there’s a national
    0:24:54 catastrophe or a school shooting or anything else, I get an email from the kids, my school’s
    0:25:01 guidance department telling me, informing me of the good tactics for how to talk to my
    0:25:08 children about this national event.
    0:25:11 We just accept it.
    0:25:12 No one’s ever asked me, “How would you like me to talk to your children about the school
    0:25:17 shooting?”
    0:25:18 No, they tell me how to talk to my own kids and nobody bats an eye.
    0:25:23 Now the school mental health staff may not have children.
    0:25:26 They may not have raised any of them successfully to adulthood.
    0:25:30 And we certainly never get to see what the product of their great tips are, but nonetheless
    0:25:35 they feel totally comfortable marching into my home and telling me how I should be talking
    0:25:39 to my kids about a national catastrophe.
    0:25:41 It really is a slip that happened over time.
    0:25:43 I mean, I took my son to an urgent care clinic for a bad stomach ache that wasn’t going away
    0:25:47 after he got home from summer camp.
    0:25:49 And after we were done and they decided it was just dehydration, it wasn’t appendicitis,
    0:25:53 they said, “Oh, now we’re going to do our mental health screener.”
    0:25:56 We asked the parents leave the room.
    0:25:58 And I got up to leave and I had already written this book and I still got up to leave.
    0:26:03 And it was only because I’m like, “What are you doing?
    0:26:05 Why are you getting up to leave?”
    0:26:07 Then I sat back down and I said, “Could I please see your mental health screener?”
    0:26:10 And I took a picture of it with my phone and it was created by our National Institute of
    0:26:15 Mental Health.
    0:26:16 This is a federal government agency and they decided, and this is part of the protocol,
    0:26:21 kids age eight and up, they asked the parents to leave and then they asked the children
    0:26:24 five escalating questions alone in a room with this person about whether they might
    0:26:29 want to kill themselves.
    0:26:31 It is so irresponsible to be doing this with kids.
    0:26:35 It’s so bananas.
    0:26:38 But I think we’ve gradually accepted their greater role in society, by the way, which
    0:26:43 flies in the face of all kinds of research about suicide and suicide contagion, which
    0:26:48 we have, but they don’t seem to be paying any attention to the research and they’re
    0:26:52 doing things that are the opposite of what you would do if you’re paying attention to
    0:26:56 the research.
    0:26:57 We’re almost encouraging it in a very subtle way, it sounds like.
    0:27:02 Yeah.
    0:27:03 That’s right.
    0:27:04 I mean, the obsession with suicide with children, and when I say obsession, I don’t mean privately
    0:27:10 being concerned as adults and working on this problem, which is real, but telling the kids
    0:27:16 all the time, “Here are the suicide headlines.
    0:27:19 We put them around the school, constantly giving them surveys about suicide.
    0:27:24 What you’re doing is you’re telegraphing.
    0:27:26 Kids kill themselves and also it’s normal to kill themselves, to kill yourself.
    0:27:33 And also, here are techniques you might be tempted to use.
    0:27:37 All this stuff is in the mental health surveys.
    0:27:40 It’s the opposite of what you would do if you were being responsible about mental health
    0:27:45 concerns with young kids.
    0:27:47 I remember reading about this study they did a long time ago, if I’m getting it right,
    0:27:53 there was litter in the forest and they found this spot where people would just leave a
    0:27:58 little bit of litter and then they put up a sign saying, “No littering,” and the amount
    0:28:01 of litter increased because it reminded people that they could litter in a way.
    0:28:07 I don’t know.
    0:28:08 It was a really weird finding, but what you were saying reminded me of that.
    0:28:12 The CDC has great research on this, which is that if you normalize suicide with kids,
    0:28:19 if you present it as a means of coping with distress, basically telegraphing, this is something
    0:28:24 other kids are doing when they feel sad, you constantly ask them, “How are they feeling?”
    0:28:29 And also present the idea that if you’re struggling, this is something some kids do.
    0:28:35 If you make a hero of kids who are going through mental health struggles, if you valorize it
    0:28:42 and we know it’s valorized today, and if you’re repetitive in your mention, then you’re going
    0:28:48 to increase suicide in the population, and that’s what we’re doing in schools.
    0:28:53 Do we valorize other things?
    0:28:55 Well, we definitely don’t valorize grit.
    0:28:59 We don’t valorize putting your emotions to one side and getting on with life, deciding
    0:29:04 that on a tough day, you’re going to still show up for practice on time and do a great
    0:29:09 job for the team.
    0:29:11 We don’t valorize that anymore.
    0:29:13 We don’t valorize agency, making a turnaround in your life, even though you’ve been through
    0:29:19 something hard.
    0:29:21 And the saddest thing is, kids can.
    0:29:23 These are all things we’re born with, the ability to overcome adversity.
    0:29:29 Instead we tell the kids the opposite, “Your parents are divorced.
    0:29:32 You’ve had trauma.
    0:29:34 Let’s talk about it.”
    0:29:35 It’s the worst thing we could do for a kid who’d been through something hard.
    0:29:39 We should be telling them the opposite.
    0:29:41 Listen, in your family, do you know what your grandfather went through?
    0:29:44 Do you know what your great-grandfather went through?
    0:29:46 You shouldn’t feel bad about that.
    0:29:47 You should feel so proud, because that’s what people in our line have overcome.
    0:29:53 And you can overcome tough things too.
    0:29:55 I know you can.
    0:29:57 Is this mostly like a Canada-US problem, or is this like a worldwide Western?
    0:30:01 Definitely.
    0:30:02 America’s always the worst at everything, and I think Canada, right along with us, seems
    0:30:06 to be, you know, for these cultural fads.
    0:30:09 We’re just all in together for whatever reason.
    0:30:13 But I do have some indication that it’s not insignificant in Europe, and that is that while
    0:30:19 I was writing the book, trying to put together the psychological research and what it showed
    0:30:24 and how what we were doing in schools was actually counterproductive, what I found literally
    0:30:29 after I was done with the book was that two teams of researchers were looking into the
    0:30:32 same things with their own coping techniques and social-emotional techniques in their own
    0:30:38 schools, and they were testing it.
    0:30:40 So the fact that they were testing it with a control group both in the UK and in Australia
    0:30:46 made me realize, oh, this social-emotional learning thing, this feelings focus, this
    0:30:50 obsessing over kids’ feelings and therapy with kids, it’s not just an American or North
    0:30:56 American problem.
    0:30:57 And the therapy isn’t just with kids.
    0:30:59 I mean, there’s a lot of adults who, I don’t know, like they’re continuously in therapy.
    0:31:05 Like it’s not, and I go to therapy, I work on an issue, I solve that issue, and I leave.
    0:31:10 It’s like, you become my best friend and I go every two weeks for years.
    0:31:15 Right.
    0:31:16 I mean, there’s the interesting research on this is a few things.
    0:31:19 One, they found that people tend to feel purged after they leave a therapist’s office.
    0:31:26 So they tend to think that therapy is helping even when objectively, when they research
    0:31:30 your check, it isn’t.
    0:31:31 So sometimes, of course, therapy can be very helpful and very useful and even lifesaving.
    0:31:37 But very often, we feel better when we leave a therapist’s office and we never check that
    0:31:42 by objective markers, we may be doing no better or even worse.
    0:31:48 So our own feeling about it isn’t a good guide.
    0:31:51 And when they do do these experiments with things like, and they look into the iatrogenic
    0:31:57 effects, meaning when the healer introduces the harm in therapy, there’s a whole body
    0:32:02 of research that shows people who’ve gone through natural bereavement, the loss of a
    0:32:06 loved one often feel worse after therapy.
    0:32:08 They did these controlled studies with a control group who lost a loved one, but didn’t go
    0:32:13 to therapy.
    0:32:14 They did better than the ones who went to therapy.
    0:32:17 Same thing with breast cancer survivors, anxiety about it, depression about it.
    0:32:22 They did worse if they had gone to therapy and also alienation from a spouse, alienation
    0:32:26 from parents.
    0:32:27 All of these are classic iatrogenic effects of therapy and there’s a whole body of research
    0:32:32 on it.
    0:32:33 The problem, I’m not saying no one should go to therapy, but it’s very troubling to me
    0:32:38 that while the researchers are very aware of these risks, the practitioners of therapy
    0:32:43 very often either minimize or deny them.
    0:32:46 And they seem totally unaware that sitting around with someone weekly can encourage rumination
    0:32:51 or dwelling on bad feelings, which of course is the biggest symptom of depression.
    0:32:55 How do we tackle this as a parent and let’s say our kid is in therapy now.
    0:33:01 What conversation should we be having with the therapist about, we’re sort of pushed
    0:33:07 to the outside of this, right?
    0:33:09 What happens in this room is none of your concern, but this kid is your responsibility.
    0:33:13 And so what conversations I’m wondering, practically speaking, can parents have with
    0:33:17 their therapist, be like, okay, how long are we going to be here?
    0:33:20 What are we working on?
    0:33:21 What issues are we talking about?
    0:33:22 How are we solving this specific problem so that we can get out?
    0:33:25 Is that a fair conversation to have with the therapist?
    0:33:28 It’s an essential conversation to have.
    0:33:30 Here’s the thing, when you drop your kid off to therapy, very often it will undermine your
    0:33:36 authority with your kids because now you have someone who’s an adult who seems to be above
    0:33:40 the parent who sits around with the child basically judging your interactions with the kid.
    0:33:46 And very often kids will leave with the sense of, gosh, that was, you know, my mother was
    0:33:50 emotionally abusive or that was wrong of my mother to say or whatever.
    0:33:54 That’s a very common side effect of therapy now.
    0:33:57 By the way, with adults, adults can handle that.
    0:33:59 Adults can brush things off, but a kid doesn’t have a context for evaluating, was that abusive
    0:34:05 of my father to yell at me?
    0:34:07 Is it abuse when a father yells at a kid?
    0:34:09 Look, a kid shouldn’t be in therapy unless they have a real need, first of all.
    0:34:14 So if they have a real need, then the therapy should focus on that need, whatever the problem
    0:34:19 is.
    0:34:20 And it should be confined to that.
    0:34:22 If they have a phobia, right, then the therapy should be confined to getting them past that
    0:34:28 phobia so they can function in life, not to create this perma handholder who also interferes
    0:34:36 with the parent-child relationship for your kid and passes judgment on the job mom and
    0:34:41 dad are doing or, you know, dad and dad, however they family arrangement, right?
    0:34:47 That’s not a helpful situation, and here’s what I want parents to know, okay?
    0:34:51 And I’m not speaking to if your child’s anorexic, but for God’s sake, get them help.
    0:34:56 I’m not poo-pooing therapy for all kinds of things that a child may have need for.
    0:35:02 What I want parents to know is dropping off their kids to therapy, that’s not neutral.
    0:35:07 And what you want to do, of course, is to get your kid out the door eventually, not to
    0:35:12 create a permanent situation where this person is constantly overseeing your parenting and
    0:35:18 making the child feel, and this is either either demoralized, convincing a child that
    0:35:23 they have a diagnosis, a brain problem that they’ll never get past because they’re rehearsing
    0:35:28 it once a week, right?
    0:35:30 Or a bad incident that they’re rehearsing once a week and now it’s gone from a middle
    0:35:34 school crush to a giant trauma in their lives that they think they have PTSD from, these
    0:35:39 are all really common side effects.
    0:35:41 But I want you to know something else too.
    0:35:43 If a child brings his or her problem to an aunt, to an uncle, to a grandmother, at some
    0:35:49 point that person will say, or even to a friend, okay, we’ve talked about this enough, go play.
    0:35:54 A therapist will never say that to a child.
    0:35:57 Now there are therapists who are really good who will say we’re here for 10 sessions, we’re
    0:36:03 going to work on this phobia, we’re going to get your kid past it, and let’s measure,
    0:36:07 let’s actually track that the anxiety is getting better.
    0:36:10 But I talked to kids who had been in therapy since age six because their parents divorced.
    0:36:16 There was no need.
    0:36:17 There was nothing wrong with the child except that the parents divorced.
    0:36:20 So they figured, oh, well, then I have to take my get into therapy.
    0:36:24 This girl, this one young woman I profile in the book was now 17, and I asked her what
    0:36:29 she was working on.
    0:36:30 She had been in therapy since she was six.
    0:36:32 Call her back in the book.
    0:36:34 And I said, what are you working with your therapist on now?
    0:36:36 She said, well, I’m leaving for college in the fall, and right now we’re working on getting
    0:36:40 me ready to make friends in college.
    0:36:43 That is a classic side effect of therapy.
    0:36:45 It’s called treatment dependency, where you don’t feel like you can make a move as an
    0:36:50 adult, things we all learned how to do without checking in with another adult or expert or
    0:36:56 your therapist.
    0:36:58 So we’re really undermining kids’ agency by sticking them in a kind of therapy or kind
    0:37:04 of emotions check-in situation for their whole lives.
    0:37:07 But we do that as parents.
    0:37:09 We have the best intentions, right?
    0:37:11 So we get divorced and we’re like, oh, I want to provide the best environment I can for
    0:37:16 my kids.
    0:37:17 So I’m going to go see an ex.
    0:37:18 I’m going to get them to see a therapist.
    0:37:20 And then it sort of spirals and maybe keeps going beyond.
    0:37:23 And maybe that temperature sort of rises slowly.
    0:37:26 But how do we get out of that thinking that like, oh, no, there’s no obvious sign my kids.
    0:37:32 Is it like we’re trying to be a martyr in some way as a parent or, you know, we’re trying
    0:37:35 to create this situation where we’re, I don’t know, I’m struggling with this, but I think
    0:37:40 you know what I mean.
    0:37:41 Yeah, I do.
    0:37:42 I think that we have believed that that is the protocol.
    0:37:46 You always stick your kid in therapy.
    0:37:48 There is such thing as preventive mental health, by the way, there isn’t, right?
    0:37:52 We can deal with actual problems, but preventatively, we’ve never been good.
    0:37:56 There’s no good study showing preventive mental health works unless you’re talking about things
    0:38:00 like a good life, like connection, you know, doing things for others, getting involved
    0:38:04 in community, dancing, you know, exercising, eating, right?
    0:38:08 Those are great, right?
    0:38:09 Having relationships, in-person relationships, we know all that’s good for you, right?
    0:38:14 But preventive mental health, sitting with a therapist and talking through your parents’
    0:38:18 divorce.
    0:38:19 I don’t think there is good in studies showing that that is necessarily good for kids.
    0:38:26 And there are a lot of risks.
    0:38:27 And I’ll give you an example.
    0:38:28 An adult said to me recently, a friend of mine said to me recently, she said, “You know,
    0:38:33 I wasn’t sure I was going to agree with your book, but when my parents divorced, they stuck
    0:38:37 me in therapy just automatically.”
    0:38:39 And I didn’t want to talk to this stranger about how I was feeling.
    0:38:44 I was really sad, and this person was a stranger.
    0:38:46 I wanted my mom, like I was angry, but I didn’t want to talk to this stranger.
    0:38:50 And I just thought, but she’s like, “But they made me.”
    0:38:53 And I had to go once a week, and it was awful.
    0:38:55 And I just thought, wow, what a healthy, normal reaction.
    0:38:59 I’m sure she was shamed.
    0:39:00 It sounds like she was shamed.
    0:39:02 No, of course you have to talk to a therapy.
    0:39:03 Why don’t you want to talk to her?
    0:39:06 But that’s the most natural thing in the world.
    0:39:08 I don’t want to share with my stranger about my home breaking up.
    0:39:12 I want to talk to my parents or someone who really loves me.
    0:39:17 And yet today, kids are made to feel terrible, right?
    0:39:20 That’s so unsophisticated.
    0:39:23 And so it puts the therapist in this situation, now they’ve got a kid who doesn’t really want
    0:39:26 to be there, so now they pander to the kid.
    0:39:28 How do you pander to the kid?
    0:39:30 By affirming or agreeing with everything the child comes up with.
    0:39:34 The kid’s not ready to do the hard work of therapy most of the time, unless they’re dealing
    0:39:39 with a serious problem, like anorexia or severe OCD, it’s interfering with our life.
    0:39:46 And now they need the help, right?
    0:39:47 Because they can’t get on with their life.
    0:39:49 They’re afraid to leave their house or they have some severe phobia or whatever.
    0:39:52 But sitting around talking about why I’m sad, it’s not even clear very often what the goal
    0:39:57 is.
    0:39:58 Make you less sad.
    0:40:00 You know what’ll make you less sad?
    0:40:02 Community getting involved in projects with others.
    0:40:05 Yeah, sometimes not thinking about why you’re sad.
    0:40:09 Building new relationships, real and personal relations, in-person relationships, not online.
    0:40:15 Spending time with extended family.
    0:40:18 So I think the project of sticking kids who don’t have a real problem in therapy, it’s
    0:40:23 got a lot of risk.
    0:40:26 And adults too, I would imagine.
    0:40:27 Yeah, but adults are different.
    0:40:29 Because we can sort of recognize easier.
    0:40:31 I mean, with kids, they’re so easily, I wouldn’t, I don’t want to say they’re easily influenced.
    0:40:37 How’s that?
    0:40:38 Yes, of course.
    0:40:39 An adult can say, listen, I’ve been on this anti-depressant for three years.
    0:40:43 I have no sex drive.
    0:40:44 I hate it.
    0:40:45 I’m ready.
    0:40:46 I’m ready to taper off it.
    0:40:47 I don’t want me taper.
    0:40:48 Yeah.
    0:40:49 Kid can’t say that.
    0:40:51 They might not even know what they’re missing when it comes to sex drive.
    0:40:53 You put a kid early enough on anti-depressants.
    0:40:56 They don’t know what a sex drive is for or why they might miss one, right?
    0:41:00 So you get in and start deleting their natural resources for coping with things.
    0:41:05 You alter them in some giant way while they’re just trying to adjust to life.
    0:41:09 I mean, how many adults do you know say, yeah, I probably had ADHD as a kid, but nobody diagnosed
    0:41:15 me.
    0:41:16 And now I’m this incredibly successful adult, a lot, right?
    0:41:21 I mean, I know so many adults in that situation.
    0:41:23 And they often say, I wish I had gotten a diagnosis and medication, but they turned out pretty
    0:41:28 great left to their own devices.
    0:41:30 Now, of course, I’m not saying that that’s true of every child.
    0:41:33 There may be kids who need the stimulant, but stimulants are profound and they are given
    0:41:38 out way, way too readily without first seeing if we can make adjustments in the child’s environment
    0:41:45 to help them handle their distractibility.
    0:41:50 You mentioned preventative mental health.
    0:41:54 I do think we can, like not prevent, but we can position ourselves to handle things through
    0:42:00 resilience, through overcoming adversity, through, I mean, isn’t that preventative mental health
    0:42:06 in a way where you’re not preventing a specific thing, but you’re sort of like, I want to
    0:42:10 put you in a position where you can overcome whatever the world throws at you, and it’s
    0:42:14 not going to beat you down and you can get through it.
    0:42:17 Yes.
    0:42:18 And you know who won’t give that to you?
    0:42:19 Mental health experts, because then there’s nothing to come back for.
    0:42:23 You can join a church group and get that.
    0:42:26 You can join a bowling league and all of a sudden you’re happier or a dance class, right?
    0:42:32 You can start to regulate exercise and you will see mood improve.
    0:42:36 Now, I’m not talking about people suffering with major depressive disorder.
    0:42:40 I want to say that again.
    0:42:41 There are people who absolutely need an intervention and they should get it, but I’m talking about
    0:42:46 the average bummed out person and certainly the bummed out kid.
    0:42:51 The number of things we can do in our life to set ourselves up for a good life.
    0:42:56 Now is that preventative mental health care?
    0:42:58 No, it’s called good living and it doesn’t require a therapeutic expert who’s going to
    0:43:02 undermine the parents authority with their kids and make the kids, because it makes a
    0:43:07 kid feel like, oh, my parents, my problems are too big for my parents to handle.
    0:43:13 So they needed to call in this other person who’s sort of more expert than they are.
    0:43:19 That’s not a, that’s not a, that’s not nothing to introduce.
    0:43:23 That’s a risk.
    0:43:24 It’s messing with the parent-child relationship.
    0:43:26 It’s messing with the child’s confidence that the parents know what they’re doing, right?
    0:43:30 So if you have to introduce that fine by all means, the child suffering, bring in the therapist.
    0:43:37 You know, then it’s just a question of what kind of therapy and who you should trust.
    0:43:42 But a child who doesn’t need it, there’s a lot of things you can do to give them a good
    0:43:47 life.
    0:43:48 But sitting around and talking about their feelings with a therapist weekly, I’m not
    0:43:51 sure is the way to get there.
    0:43:54 That’s so interesting.
    0:43:55 I mean, I was on the Tim Ferriss podcast and the most controversial part of that segment
    0:44:00 was that I chose to send my kids to a school that I sort of overgeneralized, but doesn’t
    0:44:06 really care how they feel about their homework or, you know, if you come in, you didn’t do
    0:44:10 your homework, they’ll give you a zero.
    0:44:11 I mean, my oldest, one of his memories from grade seven was one kid didn’t do his homework
    0:44:19 because he didn’t feel like it.
    0:44:21 And the teacher drew a big zero on his page and crossed it out and then told the whole
    0:44:25 class that your homework doesn’t care how you feel it, but it needs to be done.
    0:44:30 And I got so much flack for this segment on the show, but I’m sort of like, well, you
    0:44:35 know, we need to be tough on kids and kids can overcome a lot of this stuff.
    0:44:39 We just think they’re so fragile.
    0:44:41 And so we’re making them fragile.
    0:44:43 Listen, a kid who gets a zero because they didn’t feel like doing their homework.
    0:44:47 You know what the kid learns?
    0:44:49 It could be embarrassing.
    0:44:51 It shames the kid’s behavior, but you know what else the kids learned?
    0:44:55 I matter.
    0:44:56 When I don’t do what I’m supposed to do, someone notices I’m part of this community.
    0:45:02 I’m part of this class.
    0:45:03 And my teacher, he may be upset, disappointed that I didn’t do the work, but he cares.
    0:45:11 He notices it matters to him.
    0:45:13 I have a role to play.
    0:45:15 And when I do my homework tonight, he’s going to notice that too, or she’s going to notice
    0:45:19 that too.
    0:45:20 So yes, holding kids to high standards, high expectations gives them a sense.
    0:45:26 It honors them with the sense that they have capacity.
    0:45:29 They have capability.
    0:45:31 Obviously, if you’re giving a kid a zero, what you’re saying is, you could have done
    0:45:36 this homework.
    0:45:37 I know you could have done it because I believe in you.
    0:45:39 I was going to say, when I talked to friends who send their kids to private school, they
    0:45:42 always say the biggest difference between private and public.
    0:45:45 They never mentioned class size first.
    0:45:48 They mentioned the expectations the teachers have of the kids or higher.
    0:45:52 Expectations are one of the greatest things you can give kids because it’s a way of saying,
    0:45:57 I have faith in you.
    0:45:58 You can do great things.
    0:46:00 And once you introduce the diagnosis and the pill, what you’re saying is, OK, you can’t
    0:46:05 totally do it on your own.
    0:46:08 You need intervention.
    0:46:09 You have a brain problem.
    0:46:10 And that will lead a kid to feel like, I can’t do it on my own.
    0:46:14 Now, again, if a child absolutely requires it, then they require it.
    0:46:18 They need it.
    0:46:19 They need the extra help.
    0:46:21 But if they don’t, you don’t want to introduce that message with a kid.
    0:46:27 Being told, listen, you were lazy last night.
    0:46:30 You didn’t do your homework.
    0:46:31 You were irresponsible.
    0:46:32 You didn’t do what you were supposed to do.
    0:46:34 A kid can make a decision.
    0:46:36 I’m not going to do that anymore.
    0:46:37 But if you tell them they have a brain problem, no, you have ADHD.
    0:46:42 We’re going to change all of your requirements now.
    0:46:45 What you’re saying is, you can’t.
    0:46:47 One of my close friends is a therapist, and she wanted to ask your opinion on something,
    0:46:52 which was she said, terrible therapists do terrible work, which leads to terrible results.
    0:46:58 Just like anybody in any profession, the terrible people in that profession do terrible work,
    0:47:02 get terrible results.
    0:47:03 Do you think that grad schools are partly to blame because they’ve graduated idologues
    0:47:08 instead of free thinkers who have hearts and souls?
    0:47:11 So yes, things have gotten a lot more politicized, a lot more woke in the world of therapy.
    0:47:17 There’s no question.
    0:47:18 But I think there’s a bigger problem.
    0:47:19 And the bigger problem is, we’re over-treating the population with therapy.
    0:47:25 I’m not talking about bad therapists.
    0:47:28 I’m talking about too much therapy, okay?
    0:47:32 Sitting around with a child once a week, talking about their pains, talking about their struggles
    0:47:38 is an unhelpful intervention if a child doesn’t need it.
    0:47:42 And I don’t care how well-intentioned the therapist is.
    0:47:46 You know that you’re not doing them a good service.
    0:47:49 You ought to know that.
    0:47:50 And the reason is, is they’ve measured things.
    0:47:53 You know what, better for mood, for mild to moderate depression than psychotherapy or
    0:47:59 antidepressants?
    0:48:01 Dancing.
    0:48:02 Yeah, exercise, dancing, anything.
    0:48:06 You could literally, instead of asking kids in school constantly how they’re feeling,
    0:48:10 you could do anything with them.
    0:48:13 Have them paint the gym.
    0:48:15 Have them pick up trash.
    0:48:17 Have them build a structure together.
    0:48:19 You could literally have them dance.
    0:48:21 They could do almost anything, and it would be better than sitting around talking about
    0:48:26 their feelings.
    0:48:27 Because, guess what, teenagers have a lot of bad feelings.
    0:48:31 They do.
    0:48:32 News flash.
    0:48:33 If you’re going to sit around once a week and say, “Come talk to me about your feelings,”
    0:48:36 wow, they’re going to fill up that session.
    0:48:39 And they’re going to leave with, “Wow, I do have a lot of bad things to feel sad about.”
    0:48:43 If you don’t do that unless a kid needs it, absolutely requires it.
    0:48:50 There is too much treatment of the population.
    0:48:53 What role do you think technology and social media play and the mental health challenges
    0:48:58 faced by today’s kids, and how, conversely, do you think parents and even therapists who
    0:49:03 are listening to this can help address these issues?
    0:49:06 Sure.
    0:49:07 So, I think that social media has absolutely played a big role.
    0:49:11 It’s been an accelerant for all kinds of deteriorating mental health.
    0:49:15 It’s encouraged people in the idea that they have a diagnosis.
    0:49:18 It’s spread social contagions, mental health diagnoses, so things like gender dysphoria
    0:49:25 I wrote my last book about.
    0:49:27 Social media absolutely played a big role, but I don’t think it’s the whole story.
    0:49:32 The reason I don’t think it’s the whole story is a few reasons.
    0:49:36 But for instance, just to give you one statistic, in 2016, the CDC came out with a report that
    0:49:42 one in six American children between the ages of two and eight had a mental health or behavioral
    0:49:48 diagnosis.
    0:49:50 One in six American kids in 2016, they were not on social media.
    0:49:54 They’re not on social media today between the ages of two and eight, but they definitely
    0:49:57 weren’t back in 2016.
    0:49:59 It’s not just about the phones, and I think the phones are bad, but it’s not just about
    0:50:05 the phones.
    0:50:06 The lives we’re giving them, and the constant therapy in the culture, the constant sense
    0:50:12 that their feelings are all important.
    0:50:14 They are tyrannized by their own feelings, and they’re tyrannizing each other when they
    0:50:18 should be learning to put their feelings to one side and get on with life.
    0:50:23 You know what?
    0:50:24 Turns out, their feelings will get better.
    0:50:27 They will be more manageable.
    0:50:29 If you hold their conduct to high expectations, if you tell them, “So what?
    0:50:32 You were cut from the basketball team.
    0:50:34 Let’s work harder next time,” or try a different sport, you let them fail a little bit.
    0:50:40 Yeah.
    0:50:41 Michael Jordan was cut from his high school basketball team.
    0:50:43 There you go.
    0:50:44 Do you think schools are incentivized to encourage this?
    0:50:49 I’m going to walk through this as I think it out loud here, but it strikes me that schools
    0:50:55 get more resources as kids get diagnosed and need exceptions or accommodations.
    0:51:00 There’s almost this hidden incentive schools have to nudge parents to get kids, “Oh, your
    0:51:07 son or daughter is a problem in the classroom, and therefore, you should go get them tested.”
    0:51:13 When they get tested, they come back with, I think in Canada, we call them IEPs, Individual
    0:51:18 Education Plans, which is like, “Oh, your son or daughter really sucks at writing,
    0:51:24 so what we’re going to do is we’re going to pull them out of class and they don’t have
    0:51:27 to write.”
    0:51:28 We just talk into a microphone, and that’s how we’re going to accommodate them, but that
    0:51:33 requires more resources for the school, so they get funded better from whoever’s funding
    0:51:38 them.
    0:51:39 You also, conversely, not only are you incentivized to do this and treat every child like they’re
    0:51:46 a special snowflake, but you’re also not addressing the problem because now you’ve
    0:51:51 taken an issue.
    0:51:52 Maybe they’re in the 30th percentile for writing, and you’ve said, “We’re not going
    0:51:57 to work on your writing anymore.
    0:51:58 You don’t have to do that.
    0:52:01 You can do this accommodation, and so you’re not going to get better at it because you’re
    0:52:05 not actually practicing it.”
    0:52:06 Right.
    0:52:07 It’s a huge problem.
    0:52:08 There is a major conflict of interest with schools getting involved in mental health.
    0:52:13 Huge conflict of interest should never have been allowed, really, except in the cases
    0:52:18 where you have a kid who’s so struggling, they need someone to go to and talk to, and
    0:52:23 that may be.
    0:52:24 That’s not what we’ve got.
    0:52:26 It’s a huge conflict of interest.
    0:52:28 They are incentivized to keep the kids bolted to their seats.
    0:52:32 That’s their incentive, and any kid who’s bored, maybe because the teacher isn’t good,
    0:52:37 or maybe because they’re not good at controlling the class or whatever.
    0:52:42 That’s the person referring you for a pill that should never have been allowed, only
    0:52:47 because of the conflict of interest.
    0:52:48 They can be as wonderful as you want, but there’s a built-in conflict of interest.
    0:52:52 As you said, the kids, schools want more mental health resources.
    0:52:55 They want more resources.
    0:52:57 They are implementing these surveys to show how bad kids are struggling, and the surveys
    0:53:02 themselves are distressing.
    0:53:05 They’re asking kids all kinds of questions about suicide and neglect and things that might
    0:53:09 be going on at home.
    0:53:11 Then they’re using these surveys to justify getting more resources.
    0:53:14 This should never, ever have been allowed.
    0:53:16 By the way, a school counselor who engages in therapy with a kid, and they’re allowed
    0:53:22 to do it, they’re giving counseling sessions to the kids right now.
    0:53:26 That shouldn’t be allowed.
    0:53:27 Why?
    0:53:28 Because there’s a dual relationship.
    0:53:31 That is an ethical prohibition every other form a therapist has, which means that if
    0:53:35 you’re a therapist, you’re not allowed to give therapy to your own child, to your neighbor’s
    0:53:41 kid, to anyone else you have a person, another relationship with.
    0:53:46 Why?
    0:53:47 Because of the potential for abuse.
    0:53:50 A counselor knows all of a child’s friends, all of their teachers, and what do they do?
    0:53:55 The second the kid is struggling, they go in and they use the one tool they have, accommodation,
    0:54:00 and they get the kid excused from hard things.
    0:54:04 Just as you said, they’ll never learn to sit through an exam in normal time, because that’s
    0:54:09 the only tool the school counselor has.
    0:54:10 This is a terrible conflict of interest.
    0:54:12 Really, it shouldn’t be allowed.
    0:54:14 I’m not suggesting anything about the motives of school counselors.
    0:54:21 It can be wonderful, but the conflict of interest is bad.
    0:54:24 What role, if any, did COVID play?
    0:54:26 Was it another accelerant, or did it change our perception of mental health?
    0:54:31 I know a lot of people I know started going to therapy during COVID, and they’re still
    0:54:37 in therapy.
    0:54:38 The lockdowns were very hard on kids, as parents knew they would be.
    0:54:42 Parents protested to keep the schools open.
    0:54:44 You know who didn’t protest?
    0:54:46 Mental health organizations.
    0:54:47 They had nothing to say, as the schools headed into a second year of lockdowns.
    0:54:53 Parents knew this was going to be bad, and it was.
    0:54:56 It was very bad that we had kids in isolation, because they need those connections.
    0:55:00 Now mental health experts present themselves as the solution.
    0:55:04 Look, if a child developed some severe problem, then they may need that solution.
    0:55:11 In general, do I think they can be trusted?
    0:55:14 No, not as the solution to a problem that was obvious and foreseeable, that they said
    0:55:19 nothing about.
    0:55:21 In American, I can tell you the school counselor’s association, school psychologist’s association.
    0:55:26 None of these organizations had anything to say about their foreseeable damage that was
    0:55:32 going to happen to kids.
    0:55:34 Maybe they just didn’t know.
    0:55:37 Maybe they were afraid to speak up, but in any case, the idea that they’re now the solution
    0:55:41 to the struggles we’re seeing, I don’t think in general they’re the solution.
    0:55:46 What would you do if you could wave a magic wand and redesign the mental health system?
    0:55:54 How would you approach it?
    0:55:58 Both the mental health system and child-during, how do we get back to a baseline now of, let’s
    0:56:05 say normal, whatever normal is, but how do we come back from this?
    0:56:08 It strikes me that it’s really, really hard to even slowly walk back from this once it’s
    0:56:14 got momentum and it’s in place.
    0:56:17 I think we can change this because it’s very bad.
    0:56:21 The results of all of their work, all the mindfulness techniques for kids regulation
    0:56:26 is a disaster.
    0:56:27 They’ve failed.
    0:56:28 I think we can really ease, you know what the mental health professionals should be doing
    0:56:32 when it comes to kids or young people dealing with the sick?
    0:56:36 We have so many kids in desperate need of help.
    0:56:39 We have schizophrenics all over our streets.
    0:56:41 The need is enormous, but they would rather treat the well because it’s easier and come
    0:56:50 up with these techniques with no proven efficacy for just bolstering your sense of well-being.
    0:56:56 Now, let me just say again, if an adult wants to do that and get something out of it, by
    0:57:02 all means they should.
    0:57:04 An adult can do any number of things that they decide are good for their, what makes
    0:57:09 them happy or feeling in control or whatever else they want.
    0:57:13 The problem is with a kid, you’re really messing with a lot when you stick them in therapy
    0:57:18 or you treat him as unwell because he’s likely to believe it.
    0:57:23 He’s likely to believe that he has PTSD because he was bullied or teased a little bit in middle
    0:57:29 school.
    0:57:30 He’s likely bullied, teased, made fun of.
    0:57:34 The most normal experience in human life.
    0:57:36 And by the way, kids who are told that’s a big deal, boy, are they in for disappointment
    0:57:41 because the number of times you are going to get insulted or have your feelings hurt
    0:57:46 in life, wow, a lot.
    0:57:49 If you lead a good life, you’re going to be criticized.
    0:57:53 You’re going to have your feelings hurt over and over and over.
    0:57:56 You have to be able to handle it.
    0:57:58 You have to.
    0:57:59 If you’re going to be a strong, productive adult.
    0:58:01 Yeah.
    0:58:02 It’s funny you mentioned that my youngest had his feelings hurt in class and got shamed
    0:58:06 for something.
    0:58:07 He got a poor score and one of his college or student friends called it out to the class
    0:58:13 and was like, “Look how low that is.”
    0:58:16 He calls me and he’s crying and I’m like, “Oh, yeah.
    0:58:19 This is going to happen all through life and we’ll deal with it and you’re strong enough
    0:58:23 to get through this.”
    0:58:24 And then he got home at night.
    0:58:25 We just pulled up some of my YouTube videos.
    0:58:27 I was like, “Let’s read some of the comments.”
    0:58:29 Right?
    0:58:30 Exactly.
    0:58:31 Exactly.
    0:58:32 And so I pointed out things that people were saying about me and he’s like, “Why would
    0:58:36 people say those things about you?”
    0:58:38 And I was like, “Nobody who does anything in the arena.
    0:58:42 Nobody who’s struggling is doing that.”
    0:58:45 Right?
    0:58:46 You don’t see Elon Musk jumping on my YouTube video saying, “This guy’s a nitwit.”
    0:58:50 No, they never comment like that stuff.
    0:58:53 So I thought it was really interesting and he’s like, “Huh.”
    0:58:56 And I was like, “Anybody in the arena trying, they might not say anything, despite what
    0:59:02 they think, but they’re not going to try to pull you down.
    0:59:04 The people who pull you down, you’ve got to ignore those people.
    0:59:08 If I listened to all these people, I’d stop doing what I do for a living and that doesn’t
    0:59:13 make sense because I don’t want to do that.”
    0:59:15 So you just have to ignore it.
    0:59:17 That’s awesome that you told him that.
    0:59:19 Yeah.
    0:59:20 We used to say this.
    0:59:21 We used to say, “Sticks in stones may break my bones.”
    0:59:23 No one’s heard of that, heard that in a generation.
    0:59:26 Right?
    0:59:27 You never hear sticks in stones.
    0:59:28 Instead, the mom or dad calls the school or calls the other parent and says, “Your child
    0:59:33 was bullying my child.”
    0:59:34 Well, God, you’re setting them up for a bad life because let me tell you, as you just
    0:59:38 said, boy, are we criticized a lot in life as adults by a boss, by whatever.
    0:59:42 And one of the things that bosses say is, “I can’t give any constructive feedback to
    0:59:46 the rising generation.
    0:59:47 I can’t stand them as employees because I try to give them constructive feedback and
    0:59:52 they won’t accept it.
    0:59:53 They go to pieces.
    0:59:55 They think it’s inappropriate and I’m trying to help them be better workers and more successful.
    1:00:02 It’s the opposite of what kids need.
    1:00:04 They need to be told, so what?
    1:00:06 Now, I’ll just add one caveat.
    1:00:09 We were absolutely, we evolved to handle being made fun of by our group, by our class, by
    1:00:16 whatever.
    1:00:17 But I don’t think we evolved to be humiliated in front of a million people on social media.
    1:00:23 So, I don’t think social media is a way to toughen kids up, is an effective or normal
    1:00:30 way to toughen kids up.
    1:00:31 If you get dumped, if you get cut from the basketball team and you have to go through
    1:00:35 that humiliation in front of your classmates, you will learn something.
    1:00:41 You will learn something.
    1:00:42 You will say, “I survived it.
    1:00:43 I’m fine.
    1:00:44 I went on and did this other thing.
    1:00:46 I met someone who I liked more or whatever it is.”
    1:00:49 The humiliation on social media at that scale, that impersonal context, I don’t think it
    1:00:56 builds the same natural resources for resilience.
    1:01:00 Speaking of social media and sort of that culture, I mean, the public campaign to cancel
    1:01:07 you was pretty huge.
    1:01:09 What was that like?
    1:01:10 How did you deal with that?
    1:01:11 Did it affect you at all?
    1:01:13 Oh, yeah.
    1:01:14 I mean, look, a few things.
    1:01:18 So was it fun?
    1:01:19 No.
    1:01:20 But I was right.
    1:01:23 I wrote a book about a transgender, a sudden spike in transgender identification among
    1:01:29 teen girls.
    1:01:30 I thought it was a socially driven phenomenon.
    1:01:32 I thought these kids were going through reckless medical protocols that really shouldn’t be
    1:01:36 allowed because or should have given, had more supervision, more oversight.
    1:01:43 And the risks weren’t being explained to parents and all that was right.
    1:01:47 So am I always on some people’s blacklist?
    1:01:50 Yeah.
    1:01:51 I’m on literal blacklist, but what was the hardest?
    1:01:53 The hardest part was explaining it to my kids and anything that affected our family.
    1:01:58 That’s always going to be the hardest part is like trying to explain to them, “I know
    1:02:02 that this person treated us badly, but I didn’t do anything wrong.
    1:02:07 Okay.
    1:02:08 I know that usually people treat you coldly when you’re a bad person, but that’s not
    1:02:13 the case here.
    1:02:14 I didn’t do anything wrong.”
    1:02:16 So explaining that to my kids was hard because some people took some things out on my kids.
    1:02:22 That was the hardest part.
    1:02:24 And look, I can’t say I’m a favorite of the prestige media because they’ll never sort
    1:02:30 of never forgive me, even though they now run articles saying exactly what I said, somehow
    1:02:35 they’ll never forgive me for having pointed it out without their permission or auspices
    1:02:39 or whatever.
    1:02:40 But that’s just stuff I have to deal with, meaning like I made a decision, I made a
    1:02:45 choice freely.
    1:02:46 I was going to write this book.
    1:02:47 I knew there would be blowback or there could be blowback.
    1:02:51 And those are the stakes.
    1:02:53 I think I’m proud of what I did.
    1:02:55 I feel like it was the right thing to do.
    1:02:58 I stand by everything in the book.
    1:03:01 None of it’s been, every word of it is true.
    1:03:04 So I feel good about it at the end of the day.
    1:03:08 And look, exactly what you said to your son there, I mean, my kids know that.
    1:03:13 I mean, I’ve been called every possible name, right?
    1:03:16 And I hope that they know that, look, they’ve been called names at school just like every
    1:03:25 kid is.
    1:03:26 And I just hope they know that we survive these things, we get past them.
    1:03:33 And you just keep going.
    1:03:35 That’s the answer.
    1:03:36 Just keep going.
    1:03:37 As a journalist, what do you see happening in media right now?
    1:03:41 You mentioned that they weren’t running stories about this.
    1:03:43 Now they are.
    1:03:44 How do you look at media from the outside, but from the inside as well?
    1:03:49 Oh, I think there’s a lot of really good developments in media.
    1:03:52 There’s a lot of people who are acting outside of the prestige media.
    1:03:56 I mean, I think, look, the prestige media in America certainly is falling apart in a
    1:04:02 lot of ways.
    1:04:04 Some of the media outlets are still very well funded and they seem to be doing fine in a
    1:04:10 certain sense, but it’s weird.
    1:04:14 It’s like, they have this sort of Potemkin village they’ve set up that doesn’t actually
    1:04:19 reflect what’s going on in the country because they decided that their mission wasn’t going
    1:04:24 to be about truth.
    1:04:25 It was going to be about something else.
    1:04:27 So I think in general, a lot of them have become sort of a PR project rather than a
    1:04:33 truth organ.
    1:04:35 And that’s dangerous.
    1:04:37 And I think that their prestige has been damaged by it and certainly their reliability, the
    1:04:44 trust people have in them.
    1:04:46 And I think that’s in many ways a good thing.
    1:04:49 They don’t deserve people’s trust for all the things they didn’t report or cover it
    1:04:54 up or whatever.
    1:04:55 Now that said, we’re seeing a lot of conspiracy theory and that’s bad.
    1:05:02 And I think that when you can’t trust the mainstream media to report on stories actively,
    1:05:07 accurately rather, you end up with a lot of conspiracy theory.
    1:05:12 Conspiracy theory is very bad development.
    1:05:14 It leads people in all kinds of bad places, including scapegoating.
    1:05:19 And so I wish that they would get back to the project of reporting news and reporting
    1:05:26 things accurately wherever the chips may fall.
    1:05:29 I don’t see that happening for most of the mainstream media.
    1:05:33 Do you think it’ll take sort of a crisis for that to come back?
    1:05:36 It’s a good question.
    1:05:37 I don’t know.
    1:05:38 I don’t know.
    1:05:39 Some of them may just need to fail.
    1:05:41 Do you think it’ll take a crisis for us to sort of tackle collectively the mental health
    1:05:47 culture?
    1:05:48 That I think we can fix tomorrow.
    1:05:50 It’s very easy.
    1:05:51 It doesn’t require any money.
    1:05:52 Do you think we will fix it?
    1:05:54 Well, I don’t know.
    1:05:55 I hope some people will.
    1:05:56 I hope that I think that it depends how many people are aware that over-treating kids with
    1:06:03 therapy and feelings focus and rumination is all very negative and that therapists have
    1:06:09 really bad incentives here when they’re treating the well.
    1:06:14 It’s not their fault.
    1:06:15 A lot of most of them are well-meaning, but they set themselves up as the overseers of
    1:06:19 a child’s life.
    1:06:21 And the very fact of their existence in the child’s life introduces risk.
    1:06:26 So unless they’re necessary, we’ve got to get them out of kids’ lives.
    1:06:30 We need to go back to focusing kids outward on things they’re doing in the world, things
    1:06:34 that make you feel good, actually, like community, you know, like efficacy, feeling capable, again,
    1:06:44 in the world, not feeling like they need to run to an adult to handle every problem.
    1:06:49 So I think this is very, very fixable.
    1:06:52 And I certainly hope it doesn’t take any money.
    1:06:54 It just requires subtraction.
    1:06:57 So I really hope we get on this.
    1:07:00 What can parents do?
    1:07:01 As they’re listening to this, if they’re still listening, what small steps can they take
    1:07:05 to sort of start to go back to baseline, if you will, or back to building more resilient
    1:07:13 kids?
    1:07:14 That’s probably a better way to word that.
    1:07:16 I think they need to, first of all, give their kids chores.
    1:07:19 They need to give their kids more independence and more chores and more things to do so that
    1:07:25 they feel that they matter in the world, that the family, they are benefiting the family we
    1:07:29 expect you to.
    1:07:31 And we’re happy when you do and we’re proud of you.
    1:07:33 Look what you just did for the family, for someone besides you.
    1:07:37 And by the way, it makes kids feel good.
    1:07:38 But that also means we need to control our own anxiety.
    1:07:41 Let them do things that are a little bit risky, like sharp knives or cooking dinner or whatever
    1:07:47 it is, get them involved, get them going around the neighborhood, get them doing things where
    1:07:52 they have to figure themselves out a little bit and navigate other people like strangers.
    1:08:01 So all that stuff’s really good, but we also need to have frank conversations.
    1:08:05 You know what?
    1:08:06 Sitting around and talking about your feelings all the time, don’t worry about your feelings
    1:08:09 all the time.
    1:08:10 If you have a problem, if you’re really sad, like when your son called you, that’s different.
    1:08:16 His feelings had been hard.
    1:08:17 He didn’t know what to do.
    1:08:19 And you gave him great advice, but constantly checking on their feelings when they don’t,
    1:08:24 when they’re feelings, there’s no indication that there’s been any problem, which is what
    1:08:27 we’re doing now, preventatively, that’s a disaster.
    1:08:31 And you know what?
    1:08:32 Telling a kid you’re fine, shake it off, or you’ll live, or you’ll be fine.
    1:08:37 But that does a triage, right?
    1:08:40 The actual big problems that they can’t resolve on their own from the ones that they’re like,
    1:08:46 “Hey, I can.
    1:08:47 I am fine.”
    1:08:48 And we need to at least give them a shot at realizing that a certain amount of teasing
    1:08:53 is something they can overcome.
    1:08:56 You know, I remember, I don’t know if she’d be mad at me for sharing the story, but my
    1:08:59 best friend went through a hard time in high school and I remember her mom, like her friend
    1:09:05 group, totally cut her.
    1:09:06 And I remember this, God, we all remember that.
    1:09:09 I remember being cut by friends in high school and it was so upsetting.
    1:09:12 Your best friend, all of a sudden, she’s mad at you and won’t speak to you and it’s devastating
    1:09:16 in high school.
    1:09:17 It’s really, it hurts.
    1:09:19 And I remember that a bunch of girls had decided they were mad at her and her mother, who was
    1:09:23 an immigrant to this country, said, “There’s a party and she didn’t, my friend didn’t want
    1:09:29 to go to it.”
    1:09:30 She was in high school and she was afraid to go to the party.
    1:09:32 And her mother said to her, “You need to go to that party and you need to wear red.”
    1:09:38 And I just kind of thought that encapsulated a great message for kids, right?
    1:09:47 Like that is the message that we should be giving them.
    1:09:50 You’re going to be fine.
    1:09:51 You don’t need to cower.
    1:09:53 You’re going to show up at that party and you’re not going to be embarrassed.
    1:09:58 And at the end of the night, we’ll have a laugh about how it all went.
    1:10:02 But you’re not going to sit at home and we’re not going to rush you off to a therapist because
    1:10:05 girls, you know, made you feel left out because they’re going to keep doing it.
    1:10:09 They’re going to do it at the workplace.
    1:10:11 You got to be able to deal with this.
    1:10:12 How do we talk to our kids about the difference if we start doing this at home, right?
    1:10:17 We start building more agency, building more responsibility and we’re doing our best as
    1:10:23 parents.
    1:10:24 How do we talk to the kids who are going to a school and getting maybe a different message
    1:10:28 about these things where they are maybe encouraged to talk about their feelings and they are
    1:10:32 sort of, uh, do you understand what I’m saying, like where we have two different environments
    1:10:37 for the kids?
    1:10:38 How do we have that conversation with them because we don’t control what happens in
    1:10:41 the school.
    1:10:42 Even if we control what happens in our house, right?
    1:10:44 So parents ask me that all the time.
    1:10:47 They always say, I don’t want to undercut the school.
    1:10:50 The school is doing this project and I feel, I feel uncomfortable criticizing it to a
    1:10:56 school.
    1:10:57 I’ve interviewed a lot of teachers.
    1:10:58 You know what they’ve never said to me.
    1:11:00 I really don’t want to undercut the messages at home.
    1:11:04 So what I would say to parents is feel free to tell kids what you think about everything,
    1:11:10 including I had one mom tell me after she read my book, she was going to have her kids
    1:11:15 fill out the mental health survey and just fill it out at random.
    1:11:18 Don’t read it.
    1:11:19 Why?
    1:11:20 Cause she doesn’t want her kids sitting there hearing about the, um, you know, cutting,
    1:11:25 choking, all the burning, all the methods you might choose to self harm.
    1:11:31 She was telling her kid, that’s not good for you and I know what’s best.
    1:11:35 And I think parents have every right to say that to their kids.
    1:11:38 And in some cases, given how much they’ve been undermined by the schools, you know,
    1:11:43 with the, with the gender, just, you know, the transgender identification thing and the
    1:11:49 actively deceiving parents, the amount they’ve been undermined, I, you know, I tell my kids,
    1:11:54 you know what?
    1:11:55 It makes normal people sad to sit around and think about their feelings.
    1:11:59 Don’t pay attention in SEO.
    1:12:01 If you have to sit through it, be respectful, be polite, but I just want you to know I regarded
    1:12:06 as a lot of nonsense.
    1:12:09 Literally anything you could be doing would be better for your mental health than sitting
    1:12:12 around and doing these exercises.
    1:12:14 Also I have to tell my kids mental health is not something you work on.
    1:12:18 Something happens while you’re living a good life.
    1:12:21 So we don’t talk about mental health, okay?
    1:12:25 We talk about what good you could be doing in the world.
    1:12:28 What you want to get out there and try, you know, what friend you want to make, what the
    1:12:35 activity we should do, not, we don’t sit around talking about mental health.
    1:12:39 That’s what happens when you’re leading a good life.
    1:12:42 I talked to a lot of teachers and therapists before our interview and it seems like there’s
    1:12:50 like a silent majority who agree with you, and yet we’re here.
    1:12:58 Why are they silent?
    1:12:59 It’s crazy, isn’t it?
    1:13:01 I have to tell you, it shocked me.
    1:13:04 The response to the book has been overwhelmingly positive and I was expecting tremendous backlash,
    1:13:10 but my inbox is filled with mental health professionals who say, “I have been seeing
    1:13:15 this for, you know, decades now.
    1:13:17 I was hoping someone would write this book,” and look, that’s what journalists exist for,
    1:13:22 right?
    1:13:23 Because nobody wants to criticize their colleagues or what their whole profession is doing.
    1:13:29 They don’t generally want to do that, but a journalist can interview researchers and
    1:13:34 put the story together and they’re just judged based on their journalism.
    1:13:38 They’re not, you know, then treated badly by their colleagues.
    1:13:41 So yeah, the response to the book has been surprisingly and overwhelmingly positive even
    1:13:46 by mental health professionals, I’m happy to say.
    1:13:50 That’s confusing to me as an adult, though, who sends his kids to school.
    1:13:55 If the vast majority of teachers agree with us and it takes an outside journalist to change
    1:13:59 things or bring attention to it, there’s a problem there and these people are responsible
    1:14:04 for educating my children.
    1:14:07 And yet they’re feeling helpless.
    1:14:09 They’re feeling like they can’t do anything on the inside.
    1:14:12 They are helpless.
    1:14:13 Here’s why, because the psych staffs are like the DEI staffs of a corporation.
    1:14:19 That’s what the psych staff now is at a school.
    1:14:22 They effectively run the schools.
    1:14:24 They pass judgment on everything.
    1:14:26 They control what a teacher can assign, what kind of test a teacher can assign, and to
    1:14:32 what child.
    1:14:34 They’re effectively running the show.
    1:14:35 They’ve been put in charge of the schools, just like the DEI groups have been put in charge
    1:14:42 of corporations.
    1:14:43 They’re effectively running and intimidating everyone.
    1:14:45 That’s exactly what the psych staffs are doing.
    1:14:48 The teachers who are there to teach are miserable.
    1:14:50 They do not like these psych staffs telling them what they can assign and when.
    1:14:55 Or when a child needs an anytime pass because his mental health requires him to be able
    1:14:59 to walk around the school in the middle of class.
    1:15:01 Guess what?
    1:15:02 Counselors will tell you that these kids use those passes in the middle of their least favorite
    1:15:06 class.
    1:15:07 What’s an anytime pass?
    1:15:08 I don’t know.
    1:15:09 Oh, sorry.
    1:15:10 That’s what they sometimes call them.
    1:15:11 A mental health pass that allows you to take a walk around the school when you’re feeling
    1:15:15 too much stress and surprisingly, unsurprisingly, the kids abuse them, right?
    1:15:21 As anyone would, but the mental health staffs will very often insist upon them.
    1:15:26 You see that the teachers are intimidated for good reason.
    1:15:31 Good school counselors who think this is not what they signed on for are upset.
    1:15:38 What happens with these kids?
    1:15:40 Let’s say everything continues.
    1:15:41 We’ve probably seen they graduate, maybe their parents intervene at work, but that doesn’t
    1:15:46 continue forever, does it?
    1:15:49 You don’t have a 40 year old whose mother is calling their boss at work.
    1:15:53 Are we just delaying becoming an adult?
    1:15:57 Is that what we’re doing here?
    1:15:58 Or are we preventing becoming an adult and you have this learned helplessness?
    1:16:04 We’re preventing them from becoming adults.
    1:16:06 It’s worse.
    1:16:07 That’s why, because a child who believes they’re unwell and incapable will not feel up to
    1:16:13 supporting others and supporting others, being there for others is what adulthood is.
    1:16:19 It’s saying that to the world, I’m strong.
    1:16:21 You can depend on me to hold down a job.
    1:16:25 I’m strong.
    1:16:26 I can raise a family.
    1:16:28 I can be responsible for others in this society.
    1:16:31 That’s what adulthood is.
    1:16:33 What we’re doing is we’re treating kids like mental patients and because they feel infirm,
    1:16:40 they don’t feel up to adulthood.
    1:16:41 They don’t want to get their driver’s license.
    1:16:43 Driving is scary.
    1:16:44 They don’t want to take the risks that a robust teenager would take.
    1:16:49 They’re afraid of them.
    1:16:51 We need to go back.
    1:16:52 We need to undo this and we need to show them they can.
    1:16:55 We have high expectations for them and they should.
    1:16:58 They should absolutely take on the next generation, the mantle of all the responsibility for all
    1:17:03 the hard work in front of us as a society.
    1:17:06 We’re counting on them and we are.
    1:17:08 We’re depending on them, whether we like it or not.
    1:17:11 We really should tell them, “Hey, we got a lot of challenges.
    1:17:14 Let’s get to work.
    1:17:15 Let’s see what we can do, what you’ll be able to do to help us going forward as a civilization,
    1:17:22 as a society, as a community.”
    1:17:24 I love that optimistic note to the ending and final question.
    1:17:28 We normally ask what is success for you, but I want to ask you a slightly different
    1:17:32 version of this, which is, what does being a successful parent mean?
    1:17:37 What is a successful parent?
    1:17:39 A successful parent is someone who’s raised a good child to adulthood, to good adulthood.
    1:17:45 Someone who has raised a productive citizen who, by the way, has your values, passing
    1:17:50 on your values to your kid.
    1:17:53 If they are a strong person with your values, you’ve done a great job, which basically means
    1:17:58 do they value work?
    1:18:00 Are they reliable?
    1:18:02 Do they show up for others?
    1:18:04 Do they want to, and I think they should want to, form a family?
    1:18:08 Our society depends on it, and we should inculcate that in kids.
    1:18:13 All these things, whether they want to be there for others, be strong for others, and
    1:18:19 be reliable to others, build community, build family, build all those things that our society
    1:18:25 is depending on, no, that doesn’t mean that every single person needs to get married.
    1:18:30 They may choose not to, and that’s fine.
    1:18:32 But in the main, we want people to want those things.
    1:18:36 We want people to want to be someone others can rely on in a permanent and serious way.
    1:18:42 No, he’s worked with me, he’s been my partner in this job for 20 years.
    1:18:47 We want kids to feel like they can do that.
    1:18:50 And if they have raised a citizen who can do that, who does that, who is relied upon,
    1:18:56 gosh, that parent’s done a great job.
    1:18:58 And those are the people, those are, in my book, those are the only parenting experts,
    1:19:01 the ones who’ve actually done a good job of it.
    1:19:08 That’s a beautiful way to end this provocative conversation.
    1:19:11 Thank you so much.
    1:19:13 Thank you.
    1:19:14 Good luck with everything, Shane.
    1:19:17 Thanks for listening and learning with us.
    1:19:19 For a complete list of episodes, show notes, transcripts, and more, go to fs.blog/podcast
    1:19:27 or just Google the Knowledge Project.
    1:19:30 Recently, I’ve started to record my reflections and thoughts about the interview after the
    1:19:35 interview.
    1:19:36 I sit down, highlight the key moments that stood out for me, and I also talk about other
    1:19:41 connections to episodes and sort of what’s got me pondering that I maybe haven’t quite
    1:19:45 figured out.
    1:19:46 This is available to supporting members of the Knowledge Project.
    1:19:50 You can go to fs.blog/membership, check out the show notes for a link, and you can sign
    1:19:55 up today.
    1:19:56 And my reflections will just be available in your private podcast feed.
    1:20:00 You’ll also skip all the ads at the front of the episode.
    1:20:03 The Furnum Street blog is also where you can learn more about my new book, Clear Thinking,
    1:20:07 turning ordinary moments into extraordinary results.
    1:20:11 It’s a transformative guide that hands you the tools to master your fate, sharpen your
    1:20:16 decision making, and set yourself up for unparalleled success.
    1:20:20 Learn more at fs.blog/clear.
    1:20:25 Until next time.
    1:20:25 [Music]
    1:20:31 you
    1:20:34 (gentle music)
    Over the last decade, therapy has become the de facto solution to solve all sorts of problems for all sorts of people. Everyone has slowly accepted that therapy is normal and a net benefit to society.
    But instead of helping kids work through difficult circumstances, what if it’s just making the problems worse? That’s what Abigail Shrier thinks is happening, and in this conversation, she reveals some surprising reasons why.
    Shane and Shrier discuss the real reason therapy is “bad,” how we got to this point of acceptance as a culture, and what you can do as a parent to get back to normalcy. Shrier also shares her experiences with lifelong therapy patients, who should actually be in therapy, and the one thing that makes someone a successful parent.

    Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: https://fs.blog/newsletter/

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out nowhttps://fs.blog/clear/ 

    Follow me: https://beacons.ai/shaneparrish

    Join our membership: https://fs.blog/membership/

    Sponsors:

    Shopify: Making commerce better for everyone. https://www.shopify.com/shane

    Protekt: Simple solutions to support healthy routines. Enter the code “Knowledge” at checkout to receive 30% off your order. https://protekt.com/knowledge

    (00:00) Intro
    (05:44) Inverse: How do we raise mentally unstable kids?
    (08:29) How we got to now
    (11:45) Bad therapy…or just social trends?
    (13:21) Being your kids’ friend: good or bad?
    (15:55) The parenting type that raises the BEST kids
    (21:35) Is this all the parents’ fault?
    (29:53) Is “Bad Therapy” a world-wide problem?
    (32:57) Talk to your kids’ therapist about these things
    (42:09) The importance of facing adversity in childhood
    (47:06) Can we blame grad schools for all of this?
    (49:14) On technology and social media
    (51:03) Schools should “never” have gotten involved in mental health
    (54:43) Did COVID accelerate “bad therapy?”
    (56:07) How to return to normalcy
    (58:21) Why Shane shares negative YouTube comments with his kids
    (01:01:23) Shrier’s experience being “cancelled”
    (01:04:13) On prestige media
    (01:07:47) Small steps parents can take to return to normal
    (01:11:02) Dealing with schools saying one thing and parents saying another
    (01:13:32) Why is the silent majority…silent?
    (01:16:32) If this continues, what happens?
    (01:18:19) What makes someone a successful parent?
  • #193 Dr. Jim Loehr: Change the Stories You Tell Yourself

    AI transcript
    0:00:00 I’m very curious and I will be till my last breath. That’s the gift, teaching people to be
    0:00:06 excited about what you could become and what you might really find great joy in mastering.
    0:00:13 If you can do that as a teacher, as a parent, that is a forever gift that will never stop giving.
    0:00:21 [Music]
    0:00:37 Welcome to the Knowledge Project, a podcast about mastering the best of what other people have
    0:00:42 already figured out so you can apply their insights to your life. I’m your host, Shane Parrish.
    0:00:50 Every Sunday I send out the brain food newsletter to over 600,000 people. It’s considered noise
    0:00:56 canceling headphones for the internet and it’s full of timeless wisdom you can actually apply to
    0:01:02 your life and work today. Sign up for free at fs.blog/newsletter. If you’re listening to this,
    0:01:09 you’re missing out. If you’d like access to the podcast before public release, special episodes
    0:01:14 that don’t appear anywhere else, hand edited transcripts, or you just want to support the
    0:01:19 show you love, you can join at fs.blog/membership. Check out the show notes for link.
    0:01:24 Today my guest is Dr. Jim Lair, who’s a world-renowned performance psychologist,
    0:01:30 co-founder of the Human Performance Institute and author of more books than I can count,
    0:01:34 including one that really impacted me a while ago called The Power of Full Engagement. Dr. Lair
    0:01:39 believes the single most important factor in successful achievement, personal fulfillment,
    0:01:43 and life satisfaction, is the strength of our character. I wanted to talk to Jim because his
    0:01:49 belief in matching energy and time had a fundamental impact on how I spend my time and how I allocate
    0:01:56 my days. In this episode we talk a lot about the little voice inside our head, the one narrating
    0:02:02 life for us, the one writing this story. We explore when it powers us, when it limits us,
    0:02:07 how we can recognize when it’s serving us, when it’s not, how to edit it, how what we say affects
    0:02:13 our kids’ narrative that they are telling themselves, and the difference between what the
    0:02:17 best in the world tell themselves and other people. We also explore the power of journaling,
    0:02:22 matching time and energy, decision-making, and health foundations. It’s time to listen and learn.
    0:02:39 The Knowledge Project is sponsored by Protect. Protect believes that when you are your best self,
    0:02:44 you are of the most service to others. Try hydration immediately upon waking, before your
    0:02:49 first cup of coffee, and before during or after your workout. Try rest one hour before bed and get
    0:02:54 the best sleep of your life. Improve your hydration and your sleep and become the best version of
    0:02:59 yourself. Get 30% off your order at protect.com/knowledge or use code “knowledge” at the checkout for 30%
    0:03:11 off. Let’s start with how we tell stories about ourselves to ourselves. We tell stories around
    0:03:18 work, family, health, happiness, and friendship. The story that we tell ourselves in reality are
    0:03:24 often different. Sometimes our stories empower us, and sometimes they limit us. I’m wondering if
    0:03:31 maybe we could explore a little bit about the story you used to tell yourself as a father.
    0:03:36 That’s an interesting question. I have three sons. It wasn’t until I became heavily involved in the
    0:03:47 field of psychology and mental health and performance psychology that I began to realize that just
    0:03:55 about everything we say publicly and privately in our head is a story. We don’t have direct contact
    0:04:04 with the real world. We have all this data streaming into our five sensory portals,
    0:04:11 and then our big neural processor has to make sense out of that. There’s a preference for
    0:04:18 making sense in terms of what’s already been loaded in. If you get information that might be
    0:04:27 somehow contradictory to what’s in there, you tend to just purge it. You tend not to listen or you
    0:04:33 tend not to incorporate it. The more I began to understand this, and as a father, I wish I had
    0:04:41 understood it much earlier in my life, I began to realize that the way I spoke to my three sons,
    0:04:50 my public voice became a major factor in the way their private voice would speak to them
    0:04:59 as they grew older. When I realized that, I stopped on a dime because I didn’t want something that I
    0:05:07 might have said haphazardly. I said something off the cuff that was actually not aligned with my
    0:05:15 values or who I really wanted them to think of themselves as. You kind of think, well, they
    0:05:22 don’t really hear it, but our brains are always listening. There are some people that get direct
    0:05:28 access into Command Center, what I call Command Central. A father, at least for a period of time,
    0:05:35 and the mother, have direct entry into the sacred space where most of the meaning is created in our
    0:05:44 storytelling. If as a father, I say to my sons, “You know, I don’t know what’s the matter with you.
    0:05:49 You’re always screwing things up.” I really wonder if I’d had your opportunities, I would have been
    0:05:57 a star. You say these things and you don’t think they’re really going to have much of an effect.
    0:06:04 You’re trying to motivate them, but the more we have learned about the power of this inner voice
    0:06:11 in directing traffic, your inner voice pretty much as we’ve learned it determines your destiny.
    0:06:17 So every time I speak to my sons, every time I speak to my grandsons, I’m very careful that
    0:06:26 is this what I want them to say to themselves when they start maturing in life? That was a game
    0:06:33 changer for me, big time. What questions should we be asking ourselves to better understand if the
    0:06:41 story we’re telling ourselves is empowering or limiting us? Again, there’s this level of
    0:06:48 awareness and I have tried in my career to raise the curtain so that people understand
    0:06:57 that there’s something going on that maybe was purely automatic and maybe the voice you got,
    0:07:03 you never really intentionally acquired, but suddenly you have this critic inside yourself
    0:07:08 or the storyteller that we all have and you have to stop and reflect. I have rules of storytelling,
    0:07:17 they’re not really rules, they’re guidelines and the first thing is the rule has to be true.
    0:07:24 Is this aligned with reality? So the first awareness, am I making stuff up here that just
    0:07:30 is convenient for the moment to maybe make me feel better or is this aligned with really
    0:07:36 objective reality? That’s the first kind of principle of really good storytelling. Another
    0:07:41 one is, is this story that I’m telling myself, is it aligned with the best part of me with who I
    0:07:49 really want to be in life, my values, my sense of purpose? Does this story take me where I want
    0:07:56 to go in life? Does it help me feel more optimistic and hopeful about my future? Or does it in fact
    0:08:04 give me a sense that, you know, I’m not that capable, the world is tough, I probably can’t make
    0:08:11 it. Why am I doing this? This is stupid. And so I really want people to have this kind of automatic
    0:08:18 sensor before you allow these stories to take form that you intentionally purposefully orchestrate
    0:08:29 them so that these stories are aligned with the best part of you. And if they were made known
    0:08:35 publicly to all the people that you know or put on a jumbotron, you would be proud of the way you
    0:08:43 have been coaching yourself, talking to yourself about what’s the storm that you’re in or about
    0:08:50 the future that you’re crafting. And I’m very hopeful that the more we can bring an awareness
    0:08:56 to people’s lives, I have changed so many people’s thinking about so many things in sport and outside
    0:09:04 of it. And it’s basically the question you ask, which is, how do we make our stories really,
    0:09:11 really help us navigate better in life? You work with a lot of world-class performers. Is there
    0:09:17 a difference between the story they’re telling themselves and the story that the rest of us
    0:09:22 tell ourselves? What’s so interesting is that when they started, often they just,
    0:09:29 they had a love affair with whatever sport they were involved in. They never had any
    0:09:35 dreams or they just, you know, they just thought, these are people who have become number one in
    0:09:41 the world. I’ve had 17 people that have become number one in the world. And when they look back,
    0:09:47 they’re so astonished because they never dreamed this was ever going to happen. They dreamed of
    0:09:52 being maybe a great tennis player, golfer, speed skater, but they never dreamed they would have
    0:09:58 this kind of accumulated success over so many years. But as they get more success, the possibilities
    0:10:07 begin to open up in their minds about what they can and can’t do. And all I can tell you is that
    0:10:15 the sense of joy in the pursuit and to be able to have parents who enable it, not force you,
    0:10:22 but actually give you the opportunity to explore this in your own way and then be surrounded by
    0:10:29 great coaches who, I had a great coach in the early part of my athletic career in basketball.
    0:10:38 And he saw something in me that I never saw in myself. Coach Guy Gibbs in basketball. And
    0:10:43 he came into my life at a very important time. I was kind of struggling with confidence and somehow
    0:10:49 this guy that I really felt was an extraordinary human being. And that’s the way we look at most
    0:10:55 of our coaches. I mean, coaches have a special place in our lives. He really just took me aside
    0:11:01 and said, listen, Larry, you can be really good. And I’m going to push you until you get there.
    0:11:06 And I want you, I believe in you more than you believe in yourself. I will never forget it.
    0:11:11 I’ve written many books. He’s now passed away, unfortunately. But a lot of my books, I credit
    0:11:18 him for coming into my life at an important point. And we never know when something that
    0:11:27 we say or do is going to impact someone in a powerful way. But most of the number ones and
    0:11:33 really high success athletes that I’ve worked with never, never really dreamed when they have to
    0:11:40 pinch themselves when they realize, I’m number one in the world now. What the world? But as they
    0:11:47 pursued a love affair with their sport, it’s very hard if you’re forced to become number one in the
    0:11:54 world with a parent hanging over your head, or it just doesn’t last. It’s just, it’s really
    0:12:00 unfortunate. And I’ve been there many times. It’s not like you’re starting out saying, I want to be
    0:12:05 number one in the world. And you really believe it. And you start and you’re just beginning with
    0:12:08 the sport. There are a few that said they kind of knew Novak Djokovic, who’s probably the greatest
    0:12:15 tennis player, is the greatest tennis player of all time. One of his early coaches, her name
    0:12:21 was Yelena, said of all the young athletes that she had trained as a young little boy,
    0:12:27 she told him that he had the greatest potential that anyone that he had ever seen. And I think that
    0:12:35 kind of changed his perception of himself. Now, what if she had told him that, and he really
    0:12:42 didn’t have all that potential, you know, he would have continued to push. As long as he
    0:12:48 had a love affair with the sport and really love getting better and learning, if he didn’t become
    0:12:54 number one in the world, if he never made a professional career out of it, if she if the
    0:12:59 message is right, use this sport to help you grow up and become a better human being. And if you
    0:13:05 become number one in the world and doing it, you know, no one loses. I don’t care how far you go.
    0:13:10 I try to send that message over and over again. But when you start out, it’s pretty hard to
    0:13:17 believe we’re going to be number one. If it is, it’s probably just you’re blowing smoke into the
    0:13:23 world. That’s all the estimate. But you’re trying to lift yourself up and maybe give you hope that
    0:13:28 someday you might be inspired to be like Novak Djokovic or the greatest athletes of all time in
    0:13:35 their sports. But for me, I have to say that I never thought I would end up in the character
    0:13:43 space. I’m a performance psychologist. People come to me because they want to win. And I wrote
    0:13:50 most of my early books on mental toughness. And it was all about how do you get so strong
    0:13:57 mentally and emotionally that you can outcompete anybody because the muscles between your ears
    0:14:04 are stronger than they’ll ever have. You have skills that they maybe don’t have between their
    0:14:09 ears. And that’s what I specialize in for most of my career. But then I began to realize something
    0:14:17 very different. And I began to notice that the careers of those who really developed
    0:14:24 these incredible what I what I call character strengths, be they performance or really moral
    0:14:33 and ethical character strengths, I began to realize that more important than what you achieve is who
    0:14:39 you become is a consequence of the chase, that you’re becoming a person, some kind of person,
    0:14:45 either brutal, warm, loving, caring, focused, dedicated, kind, you have integrity, you’re honest,
    0:14:54 you’re grateful. And what I began to see is that people who developed these moral and ethical
    0:15:01 skills from their coaches and parents, along with the skills of the sport, they were the
    0:15:07 true winners. And they were much more likely to sustain the success, because everyone wanted
    0:15:12 them to succeed. So I, you know, I still have to wake up and think, how did I end up in the
    0:15:18 character space? I had nothing in my training whatsoever to take me there. But I’m a data guy
    0:15:25 and we had, by the time we left the Human Performance Institute, which a company I co founded,
    0:15:31 over 400,000 people go through. And it was a massive data set. And I would look at this and
    0:15:38 I love data trends. And we were so fortunate to have all these extraordinary people come through.
    0:15:43 And that’s where it led me. So I started going there. And I’m still a little bit shocked that I
    0:15:49 ended up in that space. But as more important to me than what you achieve is the way in which you
    0:15:55 achieved it and who you became as a consequence of the chase. That’s a powerful message. When we
    0:16:02 recognize our stories need editing. Now what? How do we, how do we change them?
    0:16:09 That is another great question, Shane. So I wrote a book and it was called The Power of Story. And
    0:16:18 the subtitle was, “Your Story Becomes Your Destiny.” And every book I’ve written, I’ve written 19
    0:16:24 books and each one of them represents another insight that I never had before. If it’s new to me,
    0:16:30 maybe it would be new to other people as well. Maybe I’m just a slow learner. I began to realize
    0:16:36 that the stories we tell ourselves and the stories we tell others either enable us to fulfill and
    0:16:42 to have a great life or actually take us in tragic directions. And I’ve seen this over and over again.
    0:16:49 And more important again than what happens to us in life is the story we craft around what
    0:16:57 happens to us. And if we realize that our story is faulty, that we’re making stuff up that’s
    0:17:05 literally not helping us, really do not, the story elements do not fit what I would say the
    0:17:12 principles, the guidelines of good storytelling. Then you’ve got to edit that story just as you
    0:17:19 suggested. And again, this will probably surprise many of the folks who are listening, but we tried
    0:17:27 everything. And we had a lot of very smart people. We had some of the smartest people. I mean, our
    0:17:32 faculty was one of the most brilliant faculties I think we’ll ever, ever assemble. And we tried
    0:17:38 visualization. We tried very interesting ways of kind of changing the way people actually process
    0:17:45 thinking and thoughts over a period of time over and again. And what we finally concluded
    0:17:50 was that your hand, your hand writing probably had the greatest impact on neurological functioning
    0:18:02 on the way in which these neural networks formed and were changed than anything else we could do.
    0:18:10 If I were to ask you, if you needed to remember something, what would be the most likely thing
    0:18:15 you would do to remember it? You’d probably write it down. What we call an executive functioning
    0:18:20 prefrontal cortex and cortex. There’s something that’s happening and moving the muscles of your hand
    0:18:28 that actually create a greater imprint and are much more likely to be sustained. There’s a
    0:18:36 brilliant researcher by the name of James Pennebaker. He’s at the University of Texas. And
    0:18:42 I mean, it’s incredible the kind of success on the protocols he’s had in helping people overcome
    0:18:48 trauma with their hand, with writing, with writing skills. But we found that creating the story that
    0:18:56 works for you with your hand and rewriting it, you know, several times from memory and then reading
    0:19:05 it and even using the voice memo on your phone, where you actually tell your, you talk to yourself
    0:19:14 over the phone, your voice memo capability, and then you play it back and you listen to yourself
    0:19:22 coaching you. It’s not having someone from the outside coaching you with their public voice.
    0:19:27 You are taking your private voice and making it public and now listening to it and trying to
    0:19:34 get a new way of having these neuro pathways in your brain transfer information. And eventually,
    0:19:41 over time, the story begins to change. So it might be, I hate putting, I’ve never been a good putter
    0:19:49 in sport. And if I could just be a great putter, I would be on the PGA tour list and one of the top
    0:19:57 guys or women. But and then the story you tell yourself is, I just don’t seem to have the ability
    0:20:02 to be a good putter. I’ve always had trouble putting and I think this is my greatest never.
    0:20:08 So I say that you can’t get there with that story. That story is so limiting. Here’s the story that
    0:20:15 works for you. At this point in my life, the truth is, if you look at my stats and one of the poor
    0:20:21 putters on the PGA tour or the LPGA tour, that’s true. But I’m an athlete and I have to tell you
    0:20:29 one day I’m going to become one of the best putters, if not the best putter on tour. And I’ll
    0:20:35 tell you why. Because I am going to devote more energy, more effort. I’m going to make this the
    0:20:42 most important part of my game. And I’m going to love doing it. And every time I see a green,
    0:20:48 I’m going to light up and say, ah, fantastic. I have another chance to practice my putting
    0:20:57 and to get it right. And if I miss a putt three footer for a birdie, I’ll simply say, thank God,
    0:21:03 I got that out of my system. Now I’m going to get better. And so you develop a running kind of
    0:21:10 narrative with yourself that builds confidence, builds belief, builds this and you start by crafting
    0:21:19 the perfect story with your hand. And the more your hand works, and actually what we found,
    0:21:24 James Pinnebaker hasn’t found this though. But with our data collection, we found that it’s more
    0:21:31 powerful to do it by hand than it is on a computer. And so we have everybody do it, you can print it
    0:21:38 or you can cursive writing, however you want to do it. But we prefer that you do it by hand. And
    0:21:45 each new iteration you do from memory. And then you compare it with the last one. And then those
    0:21:54 that you’re putting new energy into this network where stories are told around putting or around
    0:22:03 your marriage or around your intelligence, your confidence. And that’s what we’ve done over the
    0:22:09 years. We’ve had so many astonishing successes. And I had no idea any of this was going to surface.
    0:22:16 It all took years of practice and data collection to refine it. And I feel very grateful to have
    0:22:25 had that opportunity. What I call a living lab for helping distill a lot of the mysteries of how this
    0:22:32 miraculous human system is engineered. I love the nature of writing. We encourage that with sort
    0:22:39 of decision journals and as the means by which we can reflect or one of the ways by which we can
    0:22:45 reflect. And one of the ways which we can learn to think as well. So not only do we discover
    0:22:51 through writing that we don’t know what we’re talking about always, but we discover new ideas
    0:22:55 and we come to a new understanding. It’s so powerful as a form. And if you look through
    0:23:01 our history, most of the people who we would consider the greats of history at one point
    0:23:07 or another have journaled. I completely agree. And it was something that I started with after
    0:23:13 learning about this with a lot of our clients and so forth. I started journaling and I mean,
    0:23:18 I get up in the morning and I have to do it. It’s almost like an addiction now. And I try to
    0:23:23 program my day and look at all the things. And when anybody asks me, you know, how am I feeling
    0:23:28 today? My response is if I’m feeling a little foggy and I have a headache or whatever I’ll say,
    0:23:35 you know, I have a little, I have a few things that are bothering, but I got to tell you,
    0:23:40 I’m excited about having another opportunity to push the needle to learn a little bit more.
    0:23:46 I’m grateful for this day. And if you put that down in writing, something magical happens.
    0:23:52 This like it changes the whole kind of template, the screen, the mindset you have for, you know,
    0:24:01 dealing with all the storms that you are inevitably going to face all day long. So it
    0:24:04 doesn’t become a nightmare day. And that’s, it’s a wonderful lesson. I’m such a believer in journaling.
    0:24:11 Are there particular questions that you come back to, whether it’s when you’re journaling or
    0:24:18 helping people identify or modify their story that they can be asking themselves and reflecting upon?
    0:24:25 Well, one of the things again, I, all these things I didn’t get from my
    0:24:30 working on a master’s or doctorate degree in psychology. So you’ve got a degree in the real
    0:24:36 world. I got it in the real world. But we began to realize that all the people that came there,
    0:24:42 that the people that had the greatest success had a deep, compelling reason for
    0:24:48 expending all this energy and completing the mission that they had set for themselves during
    0:24:55 this intensive program. So that we began to realize that there are some forms of purpose,
    0:25:01 if you want to call it that, that take you way beyond where you would normally go in terms of
    0:25:08 the effort and energy and expenditure. And it’s almost like a mission for once it’s tied to your
    0:25:15 success, we ask people to really describe in their language, what is the ultimate mission
    0:25:22 they’re on in life, the mission for which failure is not possible, if they’re going to be successful
    0:25:28 in life. And so we try to get them to understand that we’re all here for a purpose. You had no choice
    0:25:34 in terms of showing up on planet Earth at this time. But you do have a choice as to how you want
    0:25:42 to spend the energy, the precious energy you have and the time that you have while you’re here.
    0:25:48 And what would define ultimate success of your life? So we began to really, really dig into that
    0:25:55 purpose. And then we link whatever change they want to make to that purpose. So in my own life,
    0:26:04 you know, my purpose is I laminated it and put it in my wallet. And, you know, now it has continued
    0:26:11 to evolve. And my probably the most compelling purpose is that I live what I teach. And that is
    0:26:22 that I don’t teach to others something I don’t do myself or that I think is only for other people.
    0:26:29 And so the question that I ask myself every day, I look back on yesterday,
    0:26:34 and I go, did I live what I believe is really the most important mission I’m on? And was I
    0:26:43 consistent in terms of fulfilling what I believe my ultimate purpose is with my three sons, with my
    0:26:50 grandsons, with my colleagues. I’m trying to hold myself to account in terms of the purpose for
    0:27:00 which I believe I am here for. And that resonates with me. And I’m willing to do anything and
    0:27:06 everything I can to make sure I don’t fail. And for me right now, I’m in a position where,
    0:27:14 you know, I don’t really need to put the metal to the to the floor, but I’m more fired up now
    0:27:21 because I want to make sure that what I’m teaching, what I’m delivering on this podcast,
    0:27:25 if someone were to do an audit of my life, it would actually reflect this is how Jim Lair
    0:27:32 actually runs his life. It’s not just something that he speaks about, but he applies it first to
    0:27:40 himself. And then hopefully by example, people will be interested in hearing more about it.
    0:27:46 I want to come back to something you said earlier about as children and grandchildren,
    0:27:52 we sort of inherit the stories that were told by the people in our lives. And, you know, you
    0:27:58 had a great teacher and that’s that was a powerful change of your story where he or coach, I guess,
    0:28:04 he believed in you before you believed in yourself. And the story we tell as parents
    0:28:10 becomes the inner monologue, I guess the inner narrative that our children grow up with.
    0:28:15 What are the things that we can do as parents listening to change that for the positive with
    0:28:24 our kids when they come home with a test that they, you know, maybe they failed or they’re
    0:28:29 struggling with something or how can we change the story that we’re telling them so it becomes
    0:28:38 a different story that they’re growing up with and a different story they’re inheriting from us.
    0:28:42 A lot of people are not even that aware of this inner voice until someone makes them more aware
    0:28:49 of it. And a lot of the athletes that we worked with thought that whatever is going on between
    0:28:55 their ears is just like you’re pushing air around. There’s nothing really happening. You can think
    0:29:01 something but it doesn’t really doesn’t seem to have any consequence. So it’s just kind of like
    0:29:07 nonsense. It’s like babble between the ears that is just of no consequence. But we have come to
    0:29:15 an understanding that everyone has an inner voice, a private voice. Everyone has a public voice
    0:29:21 unless they have a speech issue. And it almost looks as if it’s coated in the genes because
    0:29:28 one generation passes on that inner voice to the next. Your public voice with your children
    0:29:36 become their inner voice. And if you talk to them in certain ways that are very destructive,
    0:29:42 demeaning, critical, sarcastic, even though your response is, “Hey, I’m not trying to be
    0:29:52 anything but a good parent that’s going to help them face a tough world. I don’t want to develop
    0:29:57 wooses. I’m not going to be all kindness and love and all that garbage. I’m going to be like a drill
    0:30:06 sergeant because life is tough.” And their parents before them, they say, “Kids today have it way too
    0:30:13 easy.” And you have to remember, I’m the guy that wrote a lot of the books on mental toughness. So
    0:30:18 I’m not for the wissification of youth, trust me. But what’s so interesting is that the voice of your
    0:30:24 parents, unless you became very aware of it and intentionally changed it, you’re going to bring
    0:30:31 that voice particularly under stress to your children. So the first issue is I want you to
    0:30:37 tune in to what kind of coach are you to yourself? What is your inner voice? Would you want your
    0:30:45 inner voice to be somehow incorporated into the head of your children? The way you speak to
    0:30:54 yourself, are you proud of it? Is it helpful or is it a very almost sadistic adversary that’s
    0:31:01 all you’re never good enough? You never live up to what you really should. You’re always falling
    0:31:09 short. You are a dumb head. And if you look where that probably came from, if you came from a very
    0:31:16 tough culture that may have been the way parents thought for a long time, that’s how you raised
    0:31:21 tough kids. You just have a tough language, not realizing that that’s really, you know, it’s not
    0:31:29 what the evidence shows. You want them to be truthful, straight up. You may want them to have
    0:31:37 a voice that’s, you know, at times really tough. And they pull themselves up by their bootstraps
    0:31:44 and they don’t, they’re not wimps. They’re going to be strong and handle life’s stresses in ways
    0:31:51 that would make them very proud. But it’s not this harsh inner critic where they’re actually
    0:31:57 fighting two battles all the time, one with the outside world and one with themselves.
    0:32:02 It’s an exhaustive two front battle. And so we’re trying to help parents understand what is your
    0:32:09 inner voice saying to you and be very careful. If you don’t think that’s what you want in your son
    0:32:15 or daughter’s head, be very careful what you’re saying publicly to them because your public voice
    0:32:22 will one day be their inner voice, which controls their destiny, their belief in themselves,
    0:32:29 their joy and happiness in life. That’s where it all plays out. That voice no one hears but them,
    0:32:35 that we, the only voice that’s in their head until their death, will come likely from you.
    0:32:41 And when you realize that, you’re probably going to change the tone and the message
    0:32:48 in many important ways. I think that’s so important. It’s sort of like a realization that you don’t
    0:32:54 know you’re having this impact in a certain way. And then when you realize that that’s where you
    0:33:00 got your internal voice, it sort of makes it hit home a lot. How do we help our friends
    0:33:11 identify and sort of edit their stories? I’m thinking we all know when this story,
    0:33:18 our friends are telling themselves, is getting in the way of them being the best version of
    0:33:25 themselves. And when I’m saying this, I’m thinking we’re so prone to being victims of circumstance.
    0:33:31 We’d like to absolve ourselves. And this is a common story. We all have it in moments. I’m sure
    0:33:38 you’ve had it. I mean, I’ve had it. Everybody else has it. How do we become a good friend in that
    0:33:43 moment and help somebody? Or is it worth that? Or can you actually do anything when somebody’s
    0:33:49 sort of blaming circumstance? I’m thinking also my kids, right? They come home and they’re like,
    0:33:55 “I did the best I could.” And they kind of shrug their shoulders sometimes and absolve themselves
    0:34:01 of responsibility. And how can I act in those moments? So the issue is how do you get through
    0:34:08 to this inner core of a person, to their inner voice, this control central, because your kids can
    0:34:17 just shut you out. They hear you, but they don’t really, it doesn’t register. And sometimes they
    0:34:24 hear their peers much more powerfully than they’re going to hear you, particularly after they reach
    0:34:30 a certain point where they’re starting to strive for independence. They kind of lock out a lot of
    0:34:37 adult messaging. But what kids don’t want to be is preached to. They don’t want to be preached to.
    0:34:46 The great wisdom seekers in our history, when they were trying to, let’s say in the American Indian
    0:34:54 tradition, they would tell stories. They tell stories that actually don’t bring defensiveness.
    0:35:01 What defensiveness does, it means I’m locking you out. You’re threatening me with your bloody
    0:35:08 preaching. And so the more parents can say, “I’ll just give you a quick little anecdote here about
    0:35:14 my life that I learned.” And you give them a mindset, say, “I was not a good student.
    0:35:23 I actually hated school. And one day I had a teacher who took me aside and said, “Listen,
    0:35:32 I don’t know what your issue is, but you seem to be angry every time you come in the classroom.
    0:35:37 And you don’t want anyone to call on you. There’s no joy here. And I would just like you to think
    0:35:44 about this. I’ve had lots of students like this. And there is a joy in learning if you can dig it
    0:35:50 out. And you provide them with a little different perspective. You know, Carol Dweck, the brilliant
    0:35:56 developmental psychologist, who developed this notion of mindset. There’s a way to look at something.
    0:36:01 And they may not really look like they’re hearing it the first time you say it,
    0:36:08 but it may register because even when you’re saying it, they may not allow it into the inner
    0:36:16 recesses of this command center. But you’re hoping that over time that mindset will begin
    0:36:24 to change as opposed to being a victim. Kids don’t like me. And what’s happening on social media
    0:36:31 for so many kids is actually, it’s a tragedy. They’re getting so beaten up. Their self-esteem
    0:36:37 is so fragile. You know, kids are not held accountable for what they say. And they can’t
    0:36:42 see them when this digital criticism comes across. They can’t shake it. That’s why so many
    0:36:50 kids today are struggling. Their self-esteem is like so fragile. They’re only as good as the last
    0:36:58 post that came up. And when someone just gives them a chilling source of feedback, no matter how
    0:37:05 untrue, you can’t stop it because it comes from their peers. And they’re so vulnerable.
    0:37:12 Parents have to be very careful about, particularly in the early years, how much time they allow their
    0:37:16 kids on social media. And they have to be able to put some counterbalances in there in ways that
    0:37:23 they don’t get blocked out, because that’s what happens. Parents, we’re working on,
    0:37:30 I’m working on a board and a program for young people. It’s called the Youth Performance Institute.
    0:37:36 And we’re recruiting kids who’ve been through all kinds of really challenging moments
    0:37:42 and really have come through on the other side of it. And we’re using them as mentors for kids
    0:37:50 who are struggling. And so we believe that the best way to get to kids is through the mentoring
    0:37:57 of other kids who have been through the wars and have figured out answers. You know, the more you
    0:38:04 realize that there is such a powerful destructive force, there are some positive benefits from
    0:38:10 social media. But it’s like touching a hot stove. You can use a stove to cook and to do all kinds
    0:38:15 of great things with, but it can burn the hell out of you. And if you don’t understand how to
    0:38:20 protect yourself and your family from that, it can completely take all these very delicate
    0:38:27 impulses and stories in your head that actually seal your fate. You don’t even want to live,
    0:38:34 because you have no real meaningful connections to other people, particularly your peers,
    0:38:41 after what’s just happened to you. One of the examples that you used in your book,
    0:38:46 I thought was really powerful. And I tried to use it this weekend and probably failed,
    0:38:50 but it was around video gaming and how parents talked to their kids about video gaming. And
    0:38:54 I think the example in your book was stop, you’re playing too much video games,
    0:38:59 stop the worthless video game playing. And how do you go from that all the way to something like,
    0:39:05 “I really want what’s best for you because I love you, and I’m concerned that too much
    0:39:11 screen time is limiting your creativity, your brain power, your academic progress.” How do
    0:39:18 you switch that phrasing? So what you just said, Shane, you were very careful in the way in which
    0:39:25 you presented the second version. And that is the version you want embedded in their heads.
    0:39:33 That’s coming from your public voice as a parent. And you want that to somehow be the way in which
    0:39:42 that young boy or girl now is thinking about it themselves, that there might be some good things
    0:39:46 here and have them talk about how this might not be a good thing to spend too much time. And what
    0:39:54 might be a way to actually control the way in which this is actually dominating your life?
    0:40:00 How could we put some… And I’d like for them to be involved in that as opposed to me as a parent
    0:40:08 just putting the hammer down and then they’re sneaking around and they use other kids’ phones.
    0:40:14 And I mean, you’ve got to get their brain wrapped around the dangers involved and you have to be
    0:40:22 so skilled in terms of how you’re telling the story. And it may not work, but you’ve got to keep
    0:40:31 trying because the risk is real. And the way you presented it there probably is the best way you’re
    0:40:37 going to have as a parent as opposed to… You’re not… I’m taking your phone away. That’s the end of
    0:40:42 that. As opposed to let’s… Yeah, have you been hurt by what someone has ever said to you on your
    0:40:50 social media? And why do you think you spend so much time on social media? What is it doing to help
    0:40:57 you and what is it doing that might hurt you? And you bring them into the conversation as opposed
    0:41:03 to being the know-it-all parent because you didn’t grow up with social media. So they don’t even think
    0:41:10 you understand it and you probably don’t because you were never there. So you have to really be
    0:41:16 very careful about how you present a potential solution to a crisis that could be really deadly.
    0:41:24 And some of it, like drinking and driving or taking drugs, they’re really, really dangerous areas to
    0:41:31 talk about. And just swinging a sledgehammer probably is not going to get through emission
    0:41:38 control central. You’re going to have to spend time getting them to think about this. What would
    0:41:43 happen? Just hypothetically, if you were drinking and driving and you were in an accident and someone
    0:41:51 got seriously hurt or died, what’s the impact that might have on the rest of your life? Or if someone
    0:41:58 who’s drinking and driving hit you and your best friend was killed, how would you feel about that?
    0:42:06 And getting them to kind of look at it through those eyes as opposed to some mandate. If I ever
    0:42:12 catch you drinking and driving, trust me, I’m taking your keys away. I think, especially with
    0:42:18 the drug thing that’s really hard, I have two teenagers, 13 and 14. And on the weekend, we
    0:42:24 walk by somebody who had clearly overdosed, I think, on the sidewalk. And it’s tragic. And I felt
    0:42:31 compelled to talk to them about this moment afterwards. And the only thing that I could
    0:42:37 really muster was, I don’t think he thought he was going to be addicted when he started.
    0:42:44 100%. Nobody thinks that that’s going to happen to them. So that notion there, but for the grace
    0:42:53 of God, go I. Go me. It’s like some of these folks are victims of mental illness. Sometimes they
    0:43:05 had a very, very severe injury, maybe an accident, and they started taking painkillers,
    0:43:11 and they got addicted. We didn’t know how addictive this, some of these different classes of
    0:43:18 anesthesias, analgesics, all this, that actually, it’s the area of the brain
    0:43:26 called the nucleus accubans and the release of dopamine. And some people are just far more likely
    0:43:34 to become addicted and even a single experiment with some of these drugs. But they never intended,
    0:43:42 they never dreamed if they had known this was going to be the consequence, they would not
    0:43:45 have gone there. And all of a sudden, they have to get their fix, and they have no money. So now
    0:43:52 they’re forced into crime. And now they’re doing things they wouldn’t even imagine doing, but they
    0:43:58 have to get it to satisfy this incredible drive to get another, another fix. And it’s really
    0:44:08 challenging. So anytime you see that, that’s a great opportunity with your children to have a
    0:44:14 conversation that sometimes a single bad event. I mean, I have some good friends who ended up with,
    0:44:24 in really a painful situation, and they ended up taking painkillers, and they became addicted.
    0:44:31 And it became an absolute war. And their spouses wanted to divorce them, no one could understand
    0:44:37 it. They had to go to all kinds of rehab for the third time. And one of my cousins ended up in
    0:44:44 jail. It’s just a very, very, and it’s treacherous. And it’s, it seems like it would never happen to
    0:44:49 anyone in your family or any one of my kids. But anytime you can prepare your loved ones to be
    0:44:57 very careful, you can save a lot of very, very sad, terribly unfortunate consequences in life.
    0:45:04 You’ve worked with 17 people who were the best in the world at what they did unequivocally. And
    0:45:10 you’ve worked with tens of thousands, if not hundreds of thousands of other people who would be
    0:45:15 considered sort of in the top 1% of their particular domain or field, whether it’s in business or
    0:45:22 athletics. What would you say you know about the highest performers that other people seem to miss?
    0:45:30 When we come into the world, we just fight to try to get a sense of just, hey, I’m not a complete
    0:45:39 idiot. You know, you’re trying to just find some confidence. You’re always put in situations
    0:45:45 where they’d be emotional, social classroom situations in math or science, or you’re not a
    0:45:52 good communicator, a good writer. And you’re always pushed to try to get into sport. You’re not that
    0:45:59 good at it. You can’t find the right thing. The thing that’s amazing to me is that, you know,
    0:46:05 these folks who become such extraordinary examples of genius, most of them had no clue,
    0:46:10 no clue that this is where they’re going to end up. And they tended to end up in a situation
    0:46:16 where they had the opportunity to flourish, where something that they, a light went on inside them.
    0:46:23 Maybe they had no idea that they would be, you know, a genius in math, that they ended up with a
    0:46:30 teacher, a physics teacher that they fell in love with. And all of a sudden, they started
    0:46:36 realizing, I got some talents in this area of science and I love it. And all of a sudden,
    0:46:42 now they’re on a whole interesting career path. Everybody has strengths, but it has to be
    0:46:48 discovered and it has to be aligned with what your interests are. What we’ve found is that
    0:46:54 you tend to like doing what you’re good at. Not always, but, you know, some people say,
    0:47:02 “I’m really good at that, but I hate it.” It doesn’t happen that often. If it’s really that
    0:47:07 challenging and you find yourself, it’s almost like easy, it’s seductive. You like doing things
    0:47:13 that actually bring you great success. So most of the people that I have had the opportunity
    0:47:19 to work with, if I have an opportunity to sit down and talk with them, they have to pinch themselves
    0:47:25 when they realize where they’ve ended up. They’ve exceeded by multiples where they ever thought
    0:47:33 they could end up, whether it be financially or the prestige or their family or whatever it is.
    0:47:39 And then there are all those that just never really caught fire, never really found that.
    0:47:44 And that’s the beauty of a great teacher, a great coach, trying to find out how they can light the
    0:47:52 fire of a young boy or girl and help them understand that you don’t know what you’re good at until you
    0:47:59 try a lot of things and eventually you’re going to land somewhere. And life is so much better
    0:48:06 when you’re in pursuit of something that you really are excited about and you love to learn.
    0:48:13 If I were to say one thing about myself, I’m a forever learner. I just, I love to learn and I
    0:48:21 wasn’t that way in school. I hated school. But I mean, I’m a reasonably intelligent guy. My father
    0:48:28 was a brilliant mathematician, engineer, but I just, I never found much joy until I found a few
    0:48:36 teachers who actually brought joy out in the learning process. And then all of a sudden,
    0:48:42 I started to get on fire and I am on fire today about learning. If you look at all the things
    0:48:49 I love to learn and read and I just have, I’m very curious and I will be till my last breath.
    0:48:56 That’s the gift, teaching people to be excited about what you could become and what you might
    0:49:03 really find great joy in mastering. If you can do that as a, as a teacher, as a parent,
    0:49:09 that is a forever gift that will never stop giving. It’s definitely within the purview of,
    0:49:16 of most of the people we come in contact with on a regular basis. Give them joy in the learning
    0:49:23 process. They can’t read, help them to find books that excite them. I had a couple of grandkids who
    0:49:30 were not that excited about reading, but their parents got them into Harry Potter and Harry
    0:49:37 Potter’s not an easy book to read. And all of a sudden they had so much excitement or Star Wars
    0:49:43 reading about that stuff. And all of a sudden now they’re reading books like crazy because they got
    0:49:49 them started into things they wanted to do. And, you know, maybe a music teacher wants you to learn
    0:49:56 all the classical music and you just roll your eyes and go, I hate this. And then you go, well,
    0:50:02 let’s learn something you would like to learn. And so they start playing things that really excite
    0:50:08 them. And all of a sudden the learning curve goes off the charts. And maybe at some point they’re
    0:50:13 going to go back and want to play the classics. But if you start with something they’re not that
    0:50:20 interested in, you may kill the golden goose. Real world sort of example of that in a different way.
    0:50:27 We used to buy books for classrooms. And so for schools that wouldn’t buy the kids the books that
    0:50:35 they want to read. Because often the books in the classroom in grade two and three are sort of like
    0:50:40 hand me downs from like a decade. But they have no relevance to the kids. They’re not the books
    0:50:44 they want to read. I realized this with my own son in grade three, which is a different story. But
    0:50:49 and so we offered to buy classrooms like all the books the kids wanted to read. So they just had
    0:50:54 a selection of them. And I think we did this for 50 or so classrooms per year for like five years.
    0:51:02 And I still get emails from those teachers saying how unbelievable the difference in the children
    0:51:10 was when the books changed. That is absolutely brilliant. That’s a brilliant way to intervene
    0:51:16 in a young child’s life when they’re so open to the possibilities that they could become something.
    0:51:25 That’s exactly it. And I got this idea from my son who always never wanted to read. It was a huge
    0:51:33 reader. I think he read before he talked basically and still is the most prolific reader I know.
    0:51:38 But he never wanted to read anything the school was telling him to read. And I always asked him
    0:51:43 why because I always thought it was like an authority thing. And for him, it was just like,
    0:51:48 no, it’s really boring. Like, I don’t want to read that. And I thought that was well, what would
    0:51:52 make it more and why aren’t the books that you love to read? Because you clearly love that was the
    0:51:57 that was the stimulus for you to do that for five years to bring all those books into the schools.
    0:52:02 Yeah, because I was like, well, if this impacts him that way, it’s probably and he was lucky because
    0:52:07 he had no problems reading. And I was like, well, all these other kids who are struggling,
    0:52:10 what if they had what if he couldn’t read, then you’ve pretty much locked him out.
    0:52:14 Yeah. Yeah. If he doesn’t have anything that’s interesting, he has no motivation to learn.
    0:52:19 Exactly. And anyway, I thought I was so empowering the results, at least, you know,
    0:52:23 not scientifically, but in the real world, I was like, why don’t schools do this? Like,
    0:52:27 I don’t understand. Like, we spend so much money later on downstream, sort of like with people who
    0:52:33 are literate or struggling to read. If we just spent a couple hundred bucks a year in grade two
    0:52:38 and grade three on books that kids want to read, whatever that year that is, whatever is,
    0:52:43 whether it’s an injago or whatever is culturally relevant in the moment that the kids are into,
    0:52:47 you’ll save all this money downstream. And I always thought it was such a powerful idea that
    0:52:53 never really took off. I love that example. It’s a real world example where you made a big difference
    0:52:58 at a critical time in a young person’s life. Well, one of the biggest things that I’ve taken
    0:53:04 from your work over the last decade or so is the amalgamation of time and energy. And one of the
    0:53:13 things that you’ve said in your work is that time only has value in its intersection with energy.
    0:53:18 Therefore, it becomes priceless in its intersection with extraordinary energy,
    0:53:23 something you call full engagement. Talk to me about time and energy.
    0:53:30 So when we set up the Human Performance Institute, I had come to understand,
    0:53:37 first of all, I wanted to set it on a science foundation and almost all science is about energy,
    0:53:44 whether it’s physics or chemistry or everything is fundamentally goes back to energy dynamics.
    0:53:51 We are reservoirs of potential energy and we’re trying to figure out how to convert that into
    0:53:58 kinetic energy to have a big life. You have to be a big spender. But if you’re going to be a
    0:54:03 big spender of energy, this is a system that has to be renewed constantly. It’s not once you have
    0:54:10 energy, all energy comes from the same place, from the mitochondria of the cells. And that’s
    0:54:19 basically the union of oxygen and glucose called the Krebs cycle. And when you’re depleted with
    0:54:27 glucose or oxygen, energy dynamics start to decline pretty quickly. And so we decided to set up the
    0:54:35 whole system of training around energy. And the impetus, one of the big impetus
    0:54:40 that I felt when I was working with athletes prior to setting that up, I was at the Nick
    0:54:47 Boletary Tennis Academy. And I was there for six years as director of sports science and director
    0:54:52 of sports psychology. And I watched all of the players there. We had 240 of the best players
    0:55:02 in the world. And they would be completely on time because they were demanded to be on time.
    0:55:09 I videotaped everything when they show up on the courts. I had all this telemetry on all these kids
    0:55:16 because I wanted to learn, I wanted to figure things out. And what I began to realize is that
    0:55:22 even if you were there on time, there was no way guaranteed you were going to learn anything.
    0:55:27 In fact, we actually saw where some of the kids, because they hated it so much,
    0:55:31 they were perfectly on time, they got worse, they were worse from all the practice.
    0:55:36 And they were not in the language I began to use later, was engaged. And engaged for me was the
    0:55:45 intersection of whatever time you have with the infusion of energy aligned with what the
    0:55:52 objective was. So if the objective was to have a better forehand or a backhand or serve or to
    0:56:00 compete better, just the fact that you showed up and were in practice, but you never invested
    0:56:05 extraordinary energy, you’re not going to get much of a return.
    0:56:10 Just kind of going through the motion.
    0:56:11 Exactly. And so at that time, time management was, I mean, everyone was crazy about time
    0:56:19 management as the ultimate way. And I, we had Stephen M. R. Covey on our board who was Stephen’s
    0:56:26 son. And I knew Stephen Covey, brilliant man and his seven habits and everything else and his son.
    0:56:34 And I said, you know, I think you have to, this is how my brain tends to work. I said, you know,
    0:56:41 the whole time management industry is flawed. It’s set on a faulty premise. And he said, no,
    0:56:49 there’s, there’s a billion dollar industry, a lot of smart people. I’m sorry, Joe, I don’t know
    0:56:54 what you’re thinking, but that’s not true. And I said, okay, I’m going to give you this scenario,
    0:56:59 you tell me if I’m right or wrong, is the basic thesis of time management is that the first thing
    0:57:06 you need to know what your values are, what matters most to you in life. And once you do that,
    0:57:13 you have to very courageously begin to invest time in all those things that really make the
    0:57:22 greatest difference for you that will bring success as you define it. And the more you do that,
    0:57:28 the more successful you will be, but you must invest time in the things that matter most to you.
    0:57:35 And that’s why time management is so important. And I said, how close am I to that thesis is
    0:57:41 that’s basically it. And I said, well, I will tell you the investment of time, time has no value,
    0:57:48 has no valence, has no force. Until time intersects with energy, you really have nothing. I mean,
    0:57:56 you’re just there. You can be present with your family. But because you’re there, is that going
    0:58:03 to move the needle forward being a loving, caring mother or father? And the fact is, no,
    0:58:09 you’re going to have to invest energy aligned with the mission. Time doesn’t give you anything
    0:58:15 except the opportunity to make the investment of the one thing that changes the needle that
    0:58:21 changes everything. And that’s your energy, whatever you invest your energy and you give life to.
    0:58:28 And it’s not time, but energy. So I developed this notion of full engagement, which is investing,
    0:58:37 it’s an acquired ability to invest your full and best energy right here, right now, regardless of
    0:58:43 what the situation is aligned with the mission. And it’s hard, it’s difficult, but it’s a skill set.
    0:58:51 And you’ve got to have, you’ve got to have time, but you really have to make the investment of
    0:58:57 energy. And if your energy reserves are low, then people know you’re really care. Because you’re
    0:59:04 adding up your, your, your anti up the, the resource that you’re very low on, you’re not just,
    0:59:13 you know, hanging out because you don’t have a lot of energy as a father, as a mother with
    0:59:18 your children, they know when you’re tired. Now you’re coming up with the goods, you are going
    0:59:23 to deliver on the one thing that people want because they know you care. You can invest time
    0:59:29 and don’t really have much in it. If you develop extraordinary energy and invest extraordinary
    0:59:36 energy, people know you care. And that’s the whole, for me, that was a major breakthrough in,
    0:59:43 in the paradigm. It’s just a different, it’s a different paradigm completely than what most
    0:59:48 people have been exposed to. I mean, we have this almost this tradition of time management being
    0:59:55 everything. I was home for four hours with my family. I should get some kind of an award with it.
    1:00:02 But when we look at where your energy went, you didn’t have, you know, you were watching the game,
    1:00:07 you were irritable, cranky, on and on and on. And you didn’t move the needle positively. In fact,
    1:00:13 you got a reverse return on them thinking that you really care deeply about them. For you to pursue
    1:00:19 that, it actually is an indictment. It’s a little bit uncomfortable after you have been hoodwinked
    1:00:24 into believing that time is everything. Now you realize that energy is everything. And once you
    1:00:30 land on that, on that particular platform, now how much sleep I’m getting, the quality and quantity,
    1:00:39 the frequency of my meals, and to really look at how the system was engineered from an energy
    1:00:44 perspective. We are oscillatory beings in an oscillatory universe. Nothing is a flat straight
    1:00:52 line. Nothing is linear except death. Every bio potential in the human physiology is oscillatory,
    1:00:58 everything. And so we have to be wave makers. We have to understand that if we want to have a big
    1:01:04 life, we’ve got to be spending a lot of energy, which means you’ve got to be recovering a lot of
    1:01:09 energy. So in our training, we put a lot of emphasis on training the mechanisms of recovery.
    1:01:15 When you do intervals in aerobic, in anaerobic capacity, what you’re doing is basically training
    1:01:22 the systems to recover more quickly. The fitter you are, the faster you recover. And so if you
    1:01:30 want to have a big life and be out there in the fast line, you’ve got to find ways to recover
    1:01:34 quickly and take care of yourself. One of the big, big insights that we had at the institute,
    1:01:40 which was so embarrassing, when we finally had all the evidence to support it, was that health
    1:01:47 ignites performance. The healthier you are, the more energy you’re going to have. And the more
    1:01:52 energy you have aligned with whatever performance arena you’re in, you’re going to be better.
    1:01:57 So full engagement requires a lot of energy. And if you’re in an environment where it’s sucking
    1:02:04 all your energy up, you have nothing left. Like nurses who are on 12-hour shifts, we worked a lot
    1:02:11 in medicine. Or some of these emergency surgeries are very long, they’re brutal. Well, how do you
    1:02:19 prepare for that? How can you oscillate in that 12-hour shift? How can a surgeon oscillate effectively
    1:02:27 so that their blood sugar levels don’t get so low that in an athlete’s life, when that happens,
    1:02:33 they bonk, they choke. Well, we don’t want to choke when it comes to life and death. We worked
    1:02:40 with a lot of military special forces and helped them understand the importance of recovery.
    1:02:47 And how can you get recovery in just a few seconds? We developed what is called the 16-second cure
    1:02:53 in tennis. We’re in 16 seconds between points. When you ritualize it, you can get complete and
    1:03:00 total recovery. And we validated that in using telemetry, heart rate telemetry. We looked at
    1:03:08 levels of cortisol and everything else, oscillatory frequencies of the brain,
    1:03:14 but you have to train it. We have to actively train those capacities. And it’s very exciting
    1:03:19 because the system is infinitely trainable. And I wrote a book called Stress for Success. It’s
    1:03:26 like, it’s not stress that’s killing you. It’s chronic stress. It’s stress unabated by recovery.
    1:03:34 And if you’re in a high stress environment, you better start learning how to get the recovery
    1:03:39 and you’ll start thriving in the stress. And in fact, the hormones of stress are the hormones of life.
    1:03:45 You take all the stress out of your life, you’re going to start shriveling up in you. If I surround
    1:03:52 you with marshmallows and pillows, eventually all you’re going to be able to deal with is
    1:03:57 marshmallows and pillows. And the pillows eventually won’t be soft enough and the marshmallows
    1:04:02 won’t be sweet enough. So you’ve got to chase. You’ve got to chase, oh man, stress. You’ve got to
    1:04:08 go after. That’s when the life lights up. When you’re on fire doing something, making something
    1:04:14 happen, expending lots of energy and doing it in a way that doesn’t compromise your ability to produce
    1:04:23 energy, eating good food, getting your good recovery at night at sleep, drinking and hydrating a lot,
    1:04:30 doing all the things that actually enhance energy production so that you can be a big
    1:04:36 expender. If you want to be a big investor, just like Wall Street, you’ve got to make a lot of
    1:04:41 deposits. And if you don’t do that, you’re going to bonk and you’re going to blame old man stress.
    1:04:47 It wasn’t old man stress that killed you. It was that you didn’t honor the recovery that actually
    1:04:52 made the expenditure of energy manageable and actually very exciting. Walk me through the
    1:05:00 16 seconds between points in tennis. So again, all this data collection I was doing at the Nick
    1:05:08 Boletary Tennis Academy, I had them all hooked up to all this telemetry, looking at heart rate
    1:05:15 variability. And we did the same thing with voice recorders on. They wired them up so we could,
    1:05:21 they were supposed to put verbally and with their public voice, everything they were saying to
    1:05:27 themselves privately. And we began to realize that the between point time in tennis, which is
    1:05:34 roughly 20 to 25 points, depending upon the tournament or whatever, and the time that we
    1:05:41 started doing this work, we began to realize that if I just took video of people playing points,
    1:05:48 you couldn’t tell how mentally tough or how effective they were under pressure.
    1:05:56 But if I looked at the between point time only, you could tell who were those that were actually
    1:06:03 extraordinarily good competitors and who were not. And you didn’t even need to see the points.
    1:06:09 And about 70% of a match is not when people are playing points. It’s actually between point time,
    1:06:19 which is major. Anyone that would think that 70% of what you’re doing between points
    1:06:25 doesn’t affect what you’re doing during points. I mean, you have no idea how the system is
    1:06:30 integrated. When I started talking about the between point time in tennis, people thought
    1:06:35 I had duly lost my mind. No one had ever looked at the between point time. And so we began to,
    1:06:43 I took as a lot of the coaches would do you, if you want to have a great forehand,
    1:06:48 you look at what are the common elements in the 10 best forehands in the world,
    1:06:54 and you teach those. Those who were the best competitors, we took the best competitors
    1:06:59 on the men’s and women’s tour at that time and looked at all those things that they did in common
    1:07:04 that were not just personality dynamics or anything else. And we developed a training system between
    1:07:11 points based on those 16 seconds. We found that Steffi Graff at that time took the shortest amount
    1:07:18 of time of anyone on the tour. So we said, you need at least 16 seconds. So some people would just
    1:07:25 walk right up and serve or just right away jump into it. And we said, no, no, no, no, no.
    1:07:30 The system has to recover. You have to make waves. And we began to realize that the fitter you were,
    1:07:37 the faster your heart rate would come down. And we actually developed a computer that actually
    1:07:45 determined what your ideal range of heart rate was prior to starting a point. If your heart,
    1:07:50 it was too high, or if it was too low because you kind of gave up and there was no intensity,
    1:07:55 you’re not going to likely perform well. An anger would send your heart rate over the top,
    1:08:01 fury, anger, frustration, all that stuff, it would block recovery. We began to develop this
    1:08:07 concept and I made a video of it. It became maybe the best, most widely watched video in
    1:08:14 tennis history, but the 16 second cure, basically you start out with a positive physical response
    1:08:20 immediately when the point is over, then you go through a relaxation stage, then you go into
    1:08:27 kind of a ritual stage where you bounce the ball, and then you kind of go purely instinctive into
    1:08:33 the point. And that video will show you in great detail with all the best players in the world,
    1:08:42 and they all do it, but they learned it by instinct, although now the coaches teach it
    1:08:48 regularly to everyone. But I felt really positive that I may have made a contribution
    1:08:57 to the training of tennis players in their ability to manage the stresses of competitive tennis.
    1:09:03 You mentioned a word there, ritualize and ritual. Why do you use that word?
    1:09:08 The difference between a habit and a ritual, a habit is something that just
    1:09:14 may or may not help you in life. You have a bad habit of eating too much or you just don’t hydrate
    1:09:21 enough, or you drink sugary drinks all the time and it destabilizes your blood glucose levels.
    1:09:28 But you have a lot of bad habits, you sleep too late, you don’t have a habit of really laying
    1:09:36 out your day very clearly and so you’re kind of floating around most of the day just trying
    1:09:41 to catch up with yourself. It could be, we just call those bad habits. And then you have good
    1:09:46 habits or positive habits that you’ve tried to acquire. Some of them just show up and you’ve
    1:09:51 been around a lot of people with good habits and you kind of acquired them. A ritual, as we define
    1:09:57 it, is an intentionally acquired habit that serves the mission, whatever the mission is. So to become
    1:10:06 a better tennis player between points, to become a destabilized blood glucose during a match,
    1:10:12 what should you be eating? Maybe a banana, drinking lots of water and some specific
    1:10:20 hydration elements between games on changeovers. You can have a ritual for getting up in the morning
    1:10:28 that you intentionally develop. It’s kind of a tiny habit that you decide is going to help you
    1:10:36 navigate in life more successfully and the things that matter to you. We need rituals. I will tell
    1:10:41 you, it’s called the unbearable automaticity of being. We are creatures of habit and some of
    1:10:49 those habits just destroy us. I mean, they don’t help us at all. We don’t even know how we got them.
    1:10:55 We just some one day, we woke up and this is how it is. We love to sleep lay. We don’t like to get
    1:11:01 up in the morning and on and on and on. And a lot of things just, you know, they just happen. But our
    1:11:07 day is pretty much unfold automatically. You’re going to do tomorrow pretty much what you are wired
    1:11:13 up habitually to do. Now, the beauty of being human is that we have the ability to pause between
    1:11:22 the stimulus and response and create a novel response. And that takes a certain amount of time
    1:11:28 and a lot of energy infusion until we rewire the circuitry. And it’s basically a neurological loop
    1:11:40 that enables you to continue doing certain things. And in the animal kingdom, they’re completely wired
    1:11:47 up with instincts and routines that enhance survival. But human beings actually can stop
    1:11:55 and reflect I don’t want to be 40 pounds overweight. And then you have to link this mission, which is
    1:12:03 maybe very difficult to get off of drugs or whatever. You have to get a purpose that is so
    1:12:09 powerful that it just it just grabs you and ushers you into the storm. And you will not surrender.
    1:12:16 And most of the time is these little tiny habits, getting up at a certain time setting the alarm
    1:12:24 having breakfast always at a certain even if it’s a small amount, you get yourself started
    1:12:29 rather than having a big lunch and then a huge dinner and going to bed. You start understanding,
    1:12:35 you know, you don’t have to be a victim of your environment, you actually can intervene. But it
    1:12:40 takes a lot of heavy duty lifting. And it’s all made possible by your energy investment intentional.
    1:12:48 And the other thing I wanted to come back to that you mentioned quite a few times is mental
    1:12:53 toughness. How do we increase our mental toughness? Well, again, I didn’t have it wired upright. I was
    1:13:02 just getting started trying to figure it out. And I did develop a construct that based on all the
    1:13:09 players I interviewed athletes from 21 different sports and asked them to describe what they feel
    1:13:17 like when they’re playing at their absolute best, something that sometimes referred to zoning.
    1:13:21 When what they could do and what they were doing were one in the same.
    1:13:25 It’s an exhilarating feeling and everyone has been there. And I just I asked them for the descriptors
    1:13:33 that they would use. And I was blown away because they all use it looked like they all copied from
    1:13:40 each other. They they were very calm, physically relaxed, emotionally confident, lots of positive
    1:13:50 energy. There was a whole constellation, there were 12 of them that surfaced. And I use that as
    1:13:57 I refer to it as their ideal performance state. And whether it was a linesman in football or
    1:14:04 a gymnast, it was like levels of intensity might change, but the feeling that they had
    1:14:11 when they’re performing from inside was similar across all sports. So that led me to understand
    1:14:19 that there is a there’s an internal chemistry that’s bubbling up that actually drives those
    1:14:25 feelings and emotions. There’s a physiology that’s allowing there’s a very delicate balance in the
    1:14:32 neuro physiology and in the physiology of the whole body, this mind body connection.
    1:14:38 And so the question is, how do we train to actually get all of this chemistry to line up
    1:14:47 when we want it most? If you get a little too much cortisol, which is which is more of a
    1:14:54 defensive survival based hormone, it throws everything out of kilter. All of a sudden the
    1:15:00 brainwaves aren’t going faster, you get tighter, you get tunnel vision on and on. And so it’s a
    1:15:07 very delicate balance and you never master it. You get close, you get better, and you have to do
    1:15:13 everything right and you have to follow your rituals to do that. When I started, I called it
    1:15:18 mental toughness. And I began to realize that mental is only one component. Emotions also are a huge,
    1:15:27 huge driver of this chemistry. And maybe more important than what you’re thinking and what
    1:15:33 you’re analyzing logically. Emotions probably drive more of the chemistry than anything.
    1:15:39 And your mindset that you set, obviously the mental side is really important. But you can just
    1:15:46 completely come apart because your fitness, you haven’t really achieved the right fitness.
    1:15:52 So now your cells are not getting enough oxygen, or you’re having eaten properly. Now you’re really
    1:15:58 in a glucose challenge. And maybe you don’t even want to play. Motivationally, maybe, you know,
    1:16:04 maybe this is something your parents wanted you to do. But you don’t really have a purpose that’s
    1:16:09 your own, which will unwind so that for this delicate chemistry to rise up, you have to really
    1:16:16 want it. You have to really have the system has to bring out this amazing chemistry formula,
    1:16:25 which is not easy to mobilize, particularly in the context of pressure. So it’s not mental toughness,
    1:16:33 it’s mental emotional, it’s physical, it’s actually spiritual as well. We are a fully integrated
    1:16:38 species. And we’ve got to understand that everything we do affects everything else.
    1:16:45 And even the way you speak to yourself, the way you walk, the way you carry your shoulders,
    1:16:50 I flew all the way to Spain because I got a fabulous opportunity to interview
    1:16:55 one of Spain’s most famous bullfighters, Martin Vazquez. He’s now just passed away,
    1:17:02 but he was a superstar. And I begged for the opportunity to meet with him because I wanted
    1:17:09 to know how a matador controls fear when they know that there’s this massive bull
    1:17:15 who is going to do everything possible to kill them and to subdue this potential threat that
    1:17:21 the bull is seeing. How do you control fear? How do you keep from being paralyzed? Because when you
    1:17:29 choke, you’re very likely going to get gored and can very possibly die. And he smiles and he says,
    1:17:36 “Not obvious, Jim.” And I said, “No, I came all this way. It’s not that obvious.”
    1:17:41 And he said, “Have you ever seen a bullfighter in the ring show anything but supreme confidence?
    1:17:49 Have you ever seen them mope around with rounded shoulders saying, “I’m having a bad day. I don’t
    1:17:56 feel like I’m on my game today.” The, you know, being negative or a little bit pessimistic and
    1:18:03 irritated at the bull because the bull is just not cooperating or whatever. You see nothing every
    1:18:09 step, every movement. He said, “We start training as a young boy at a very early age on how to walk,
    1:18:18 how to turn, how to carry our shoulders, where to put our eyes. Every single detail is done
    1:18:25 meticulously.” And he said, “The bull can see that and knows that you have no fear and that you
    1:18:35 dominate the bull by your presence. We control fear by our physical presence.” I was mesmerized by
    1:18:43 the whole thing and we looked at videos and it was really quiet. So I brought it back to the states
    1:18:50 to the Nick Monetary Tennis Academy and we showed all this video of bullfighters
    1:18:55 and we developed what I call the matador walk. And I would take tennis players out in the court
    1:19:03 and teach them how to walk, how to turn, how to look, how to control their eyes. And I will tell
    1:19:09 you it had a profound effect. They thought it was a little weird in the beginning, but they saw the
    1:19:14 results they were getting and how they felt much more. If you want to be fearless, you look fearless.
    1:19:20 If you want to control the chemistry, you have to look on the outside the way you want to feel
    1:19:27 on the inside. And that was the insight. It’s powerful. It also relates to the stories that
    1:19:33 we were talking about earlier. It sort of comes full circle. Right, exactly. You can control your
    1:19:38 chemistry from the inside out or from the outside in. You can work with meditation, with thoughts,
    1:19:44 with ideas, with private voice. Or you can work from the outside, working with your actual physical
    1:19:53 muscles and the way in which you carry yourself, all of it, can either contribute or undermine
    1:19:59 your ability to achieve your potential. That’s a really powerful way to take control, no matter
    1:20:07 where you are in this particular moment. You can always do something to sort of move forward.
    1:20:12 I want to end with the same question I always ask, which is, what is success for you?
    1:20:17 I want to make a difference in the lives of other people. And I have a very opportunistic
    1:20:26 kind of stage where I can help people if what I am saying is true. Success in my life is helping
    1:20:34 other people be successful in things that matter to them. And that’s why for me, my mission is to
    1:20:42 live what I teach so that if I teach it, it’s not something I’m just voicing. They actually
    1:20:49 see it in my life. And I feel like if I didn’t get it right, at least I did the best I could.
    1:20:55 And for me, success in my life is using the opportunities I’ve had to learn to help other
    1:21:03 people be successful in whatever way they define success.
    1:21:07 That’s beautiful. Thank you so much, Jim, for taking the time.
    1:21:18 I hope some of this resonated. I appreciate all the work you’ve done, all the contributions you’re
    1:21:24 making, and I hope we move the needle forward. Thanks for listening and learning with us.
    1:21:33 For a complete list of episodes, show notes, transcripts, and more, go to fs.blog/podcast
    1:21:40 or just Google the Knowledge Project. Recently, I’ve started to record my reflections and thoughts
    1:21:47 about the interview after the interview. I sit down, highlight the key moments that stood out
    1:21:52 for me, and I also talk about other connections to episodes and sort of what’s got me pondering
    1:21:58 that I maybe haven’t quite figured out. This is available to supporting members of the Knowledge
    1:22:02 Project. You can go to fs.blog/membership, check out the show notes for a link, and you can sign up
    1:22:08 today. And my reflections will just be available in your private podcast feed. You’ll also skip
    1:22:14 all the ads at the front of the episode. The Front I’m Straight blog is also where you can
    1:22:18 learn more about my new book, Clear Thinking, turning ordinary moments into extraordinary
    1:22:23 results. It’s a transformative guide that hands you the tools to master your fate,
    1:22:29 sharpen your decision-making, and set yourself up for unparalleled success.
    1:22:33 Learn more at fs.blog/clear. Until next time.
    1:22:48 you

    What if reaching the next level of success wasn’t determined by another skill, degree, or course but by something that changed on the inside?

    That’s what Dr. Jim Loehr believes, and in this episode, he reveals everything he knows about mental toughness and winning the mind game. Shane and Loehr discuss the radical importance of the stories you tell yourself—including how they can damage your kids—and how to change the negative stories you believe. Loehr also shares the best reflection questions to ask yourself to reveal personal blindspots, the importance of rituals for calming anxiety and performing under pressure, and how the best in the world use their recovery time effectively.

    Dr. Jim Loehr is a world-renowned performance psychologist and author of 16 books. From his more than 30 years of experience and applied research, Dr. Loehr believes the single most important factor in successful achievement, personal fulfillment, and life satisfaction is the strength of one’s character. Dr. Loehr possesses a masters and doctorate in psychology and is a full member of the American Psychological Association.

    Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

    Newsletter – I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: https://fs.blog/newsletter/

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now – https://fs.blog/clear/ 

    Follow me: https://beacons.ai/shaneparrish

    Join our membership: https://fs.blog/membership/

    Sponsor:

    Protekt: Simple solutions to support healthy routines. Enter the code “Knowledge” at checkout to receive 30% off your order. https://protekt.com/knowledge

     

    (00:00) Intro

    (03:20) Parenting and storytelling

    (06:15) How to determine whether or not the stories are limiting or enabling you

    (08:41) What the stories world-class performers tell themselves

    (15:02) How to change the stories you tell yourself

    (23:26) Questions to journal about

    (26:16) Private voices vs. public voices (and how they impact your kids)

    (31:32) How to help your friends change their stories

    (37:30) How to better come alongside your kids to prevent destructive behavior

    (44:48) – (45:06) What Loehr knows about high performers that others miss

    (53:12) On time and energy

    (01:06:26) Conquering the “between point” ritual

    (01:11:50) On rituals vs. habits

    (01:15:54) How to increase your mental toughness

    (01:23:51) On success