Friday, October 26, 2018

405 – John C. McGinley: When to Quit Your Dream & When to Stick With It

John C. McGinley has been in 80+ movies, he’s been in six Oliver Stone movies and all nine seasons of “Scrubs.” And now, he’s celebrating the 3rd season of “Stan Against Evil,” where he’s acting AND writing. We talked about acting, improving, auditioning. We talked about the pressure and who should not get into acting… But then about 45 minutes in, I asked him about his experience parenting a child with down syndrome. Four days into his son’s life, John had to make life or death decisions about heart surgery. His life focus changed completely. It had to. And John rose up to it. This podcast really touches on all aspects of life… everything from having a dream to fulfilling it and then seeing your life rotate. Something I think a lot of people can relate to.

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Wednesday, October 24, 2018

404 – Noam Dworman: The Risk of Censorship…

 

Some background: a few weeks ago, Louis C.K. showed up at the Comedy Cellar.

Noam Dworman (the owner) wasn’t there. He got a text. “Louis’s here.” He saw it the next morning.

Now everyone is asking Noam, “Where do you draw the line?”

He’s gotten death threats. The Twitter mob came after him. He’s become a talking point. And the more he’s reduced to a talking point, the more hate he gets.

So I wanted to ask Noam questions about his life, his club, his business, his family. He told me about his influences. I wanted to get to know him. And then I wanted to get to know his side of the controversy.

But then I realized… he doesn’t have a “side.”

Sure, he has an opinion.

He has thoughts.

But it’s not for one team and against another. And somehow, that gets him EVEN more hate.

People want him to ban Louis from the stage.

“I’ve been accused of not believing the victims,” Noam said. “And nothing could be further from the truth. I can’t say this enough: It’s not about not believing anybody. It’s not. I take everyone at their word. I don’t know how else to put it.”

He told me about a customer who called yelling.

“What did he say?”

“He said, ‘I was there with my in-laws. We come to the Comedy Cellar to have a good time and this was upsetting them.’”

Noam listened (something a lot of people don’t do.)

And they worked it out.

“We actually became friends,” Noam said. “He actually came in and offered to tell the media that he thought he overreacted.”

But Louis also did a lot of things wrong. And Noam knows this. Louis used a trigger word. He mentioned a rape whistle in the bit. And he didn’t address the elephant in the room.

Noam knows the wrongness of the situation.

But when someone tells Noam to ban Louis, they’re forgetting the larger questions…

Who gets to decide Louis’s punishment is? Who gets to decide who works and who doesn’t? Who has the right to censor people? And information?

Sometimes we need to let people speak just to find out what they’re hiding. Look at Roseanne. If Twitter blocked her tweet before the world saw it, we wouldn’t haven’t seen that side of her.

And hate would be baking under the rug.

I told Noam this… When we were growing up no one had peanut allergies. A generation later, because we’ve disinfected everything, millions of kids have peanut allergies. And now, people are allergic to language.

And it doesn’t seem like this trend ever reverses.

First, we disinfected our food. Now we’re disinfecting language. So then that leads to another big question. What’s next?

Noam has thought a lot about these questions. He’s studied the judicial system. I think we should be glad that he’s not taking this lightly.

He looks at the laws, he looks at the claims from all the women, and he sees that the women can take their claims to court.

And he makes this point in the podcast.

He says, “We have quite developed institutions to make sure people make amends for the things they do. And, up until recently, we all respected that. We took pride in the fact that we didn’t do things by emotion. We did things by procedures. And it seems like now we think that was all a big dumb experiment. [It’s as if people think] really what we should be able to do is read a paragraph in the Times and then anyone who’s in the position to punish ought to dole it out… Nobody, I think, really believes that’s the way the world should be. I don’t think they really want that.”

Noam shouldn’t have to be Twitter’s juror #1. Or the judge. He runs a club. Not a courtroom.

Some people disagree. Some people make it political.

The Twitter mob wants you to say what you stand for. You stand for “this” or “that.” Then they can define you. But what if you stand for something outside of that “this” or “that”?

Communication isn’t math. Expression isn’t linear. Unless you’re writing a headline.

It’s only linear if you have an agenda.

But when someone like Noam chooses to stay outside of the teams (left vs. right), then each team accuses you of being on “not their team.”

And this is dangerous.

If you’re not spewing the left’s agenda, you’re somehow alt-right. And if you’re not spewing the right’s agenda, you’re somehow alt-left.

And if you’re neither, you’re both.

If I, James Altucher, am going to boil down MY perspective of what Noam is saying it’s this…

He said, ““If somebody should be punished, I hope they are punished.”

That’s part A.

And then he said, “In my position, I need know that things are true. I can’t just smell it in the atmosphere. I have to verify.”

“Why do you have to know?” I asked.

“If people want me to take action on something, they shouldn’t fault me for wanting to make sure I have the right to investigate. These are the lessons since the Magna Carta or the Bill of Rights or due process and giving people the benefit of the doubt and perjury. We got away from Town Hall justice and public humiliation.”

That’s part B.

And he also said, “I’ve seen interviews with jurors. And you [can see] that when they were the ones who knew they had to make these decisions, all of a sudden they take things very, very seriously. And I think that’s the difference.”

“The rumor can be wrong or exaggerated or understated — we don’t know.”

That’s part C.

Punish people who should be punished. Follow the law. And verify the truth.

I think that’s all reasonable. But Twitter doesn’t want reasonable.

I’ve been on Noam’s podcast before. I’ve been to the Comedy Cellar. I know their rules.

There’s a line-up. A bunch of comedians go on. They get each get about 15 minutes. And sometimes, people drop in. And if someone in the audience doesn’t like the jokes or the comedian, they’re free to leave. The Comedy Cellar will even cover your bill. No questions asked.

So there’s this real sense of hospitality there. For the comedians and the customers.

Noam told me the history:

“My father opened his first coffee shop in 1960. And that became the place where musicians would come informally after gigs. Bob Dylan used to come in. Jose Feliciano… Peter, Paul and Mary… a lot of people. And then, at some point, because he was Israeli, a lot of Middle Eastern musicians started coming.”

His dad went on to open a club, which became really popular. And when Noam grew up, he joined a band.

It became a huge success within six months.“That’s what I did until I started going deaf in 2009 or earlier.”

“You play a lot of instruments, right?”

“I play guitar, mandolin, bass, piano, oud…”

“Oud?”

“It’s a Turkish instrument. My father played that kind of stuff.”

“And just out of curiosity, why are you going deaf?”

“All of that loud music five nights a week.”

I asked about the business more. He told me about his grandma.

“My grandmother was known to be just a wonderful hostess. This was one of her defining attributes. And that was passed down to my father and, in some way, it was passed down to me.”

She taught him the value of treating people in your home a certain way.

“Small business people, for the most part, they think of their business as their home,” Noam said.

I’m going back on Noam’s podcast this week. And I know he’ll treat me like he treats all people.

 

Links and Resources

Comedy Cellar

 

Also Mentioned

Louis (tv show)

Fat Black Pussy Cat

Village Underground

Cafe Wha?

Bill Grundfest

Gilbert Gottfried

John Stewart

Bill Marr

Ray Ramano

Larry David

Michael Che

Chapelle

Allan Havey

Malcolm Gladwell

The Comedy Channel

Jerry Seinfeld’s Documentary “Comedian”

“Tough Crowd”

Amy Schumer

Chris Rock

Dave Patel

Joe Machi

Gary Shandling

Robert Kline

Harvey weinstein

Bill Cosby

Aziz Ansari

Fable: The Emperor’s New Clothes 

Jim Gaffigan

Norm MacDonald

Roseanne

“The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure”by Greg Lukianoff

“1984″ by George Orwell

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403 – Robert Greene: The Laws of Human Nature (Why We Are The Way We Are)

We don’t walk around thinking, “My boss is acting.” “My wife is acting.” “My kids are acting.”

But they are. Whether they know it not.

“Everyone has a character,” Robert Greene said on my podcast. “We have qualities that are deeply ingrained in us. Based on our genetics. Based on our childhood and our parents.”

And this causes patterns in our lives. “Weird patterns that we repeat over and over again.”

I’ll give you an example.

Let’s say I keep going broke (this is a true story.) But if I figure out WHY I keep going broke, I can avoid it. I went broke for two reasons:

  1. I had a scarcity complex. I could have millions in the bank and think I was broke.
  2. I thought I was the smartest person on the planet. Because my business was doing well. Then I sold it. So I thought my success equalled some higher intelligence. I was wrong. Once I learned I could be stupid and successful, I stopped making dumb decisions.

 

Knowing your patterns is a type of freedom. But Robert went further than just knowing his own patterns.

He wanted to know all of human nature’s patterns. So he studied it, broke it down and put it into this new book,  “The Laws of Human Nature”

“You want to be able to judge people’s character by seeing their patterns,” he said. “Not by looking at their resume or their charming smile or everything that they try and show you. Look at their past and their patterns and they will reveal their underlying character.”

This book will teach you how to be an x-ray machine. And I know I’ll be recommending this book for the rest of my life. And I’m evening giving away copies right now.

So here’s what he taught me. And I’m sure I’ll end up doing a Part Two for this because I’m on my third re-read of this book.

 

1. EVERYONE IS ACTING

“When we were children, we learned how to act. We learned how to smile. We learned how to cry extra hard to get what we wanted from our parents. We’re trained from early on to be actors.”

And it’s non-stop. “We’re continually acting,” he said.

So it’s no wonder we’re tired all the time. Everyday, we wake up and try to be ourselves.

But we’re acting, conforming and playing by other people’s rules. Rules from school, the adults we grew up with, our social circles, etc.

And the influences keep changing.

TV becomes YouTube. Anyone can be “media.” Radio becomes podcasts. The news becomes Twitter and so on.

And that’s just today’s influences. People are designing tomorrow’s influences everyday.  

2. DON’T DENY IT

“The worst thing is to be in denial,” Robert said. “That’s what I’m trying to hit you over the head with in this book.”

Acting = human nature.

“You’ll naturally go, ‘Oh, I’m not like that. I do what I want to do. I don’t listen to other people. I’m independent.’ Well, hell you’re not,” Robert said. “You’re much more of a conformist than you realize. Because that is human nature. You are not immune to this no matter what you tell yourself.”

 

3. KNOW YOUR NATURE (AND OTHER’S)

Robert gave me some examples.

He said, “The ability to judge people’s character is one of the most important skills you can have. It will stop you from choosing the worst kind of romantic partner that will make your life miserable. It will prevent you from hiring people who are charming but slackers or who are out to steal your company from you.”

“Okay, so what’s the first step?” I asked.

“You have to be aware, first of all, that you are conforming, that you are influenced by what other people are doing and saying before you can begin to cut that off.”

 

4. ADMIT IT

So, to recap, first you have to become aware. Then get out of denial. Then admit it.

“You are not a rational human being,” he said. “Admit it.

And he breaks down all the signs of irrational behavior in his book.

“If you realize that you are not rational, that you are largely governed by emotions, you can now begin to divorce emotions from your decisions. And opinions slowly and become rational. But your denial is a big problem in all of these elements in human nature. So you are a conformist. When you admit that and realize it now you can begin to work in the opposite direction.”

 

5. DON’T BE EMBARRASSED.

Most of us are bad at judging people because of two things:

1. We don’t know our own characters.

– If we don’t know who we’re playing then how can we expect to understand who anyone else is?

2. We don’t know we’re acting. (That’s actually #1)

– There’s all this pressure to be your authentic self. So if we admit we’re acting, it’s embarrassing.

But when you realize it’s natural. And just part of human nature, you’re free.


These lessons all came from just ONE of the laws in Robert’s book.

He goes into:

“The Law of Aimlessness” / how someone finds their sense of purpose

Robert says, “There’s a voice saying, ‘This is where you should be. ‘This is who you are.’ And as we get older we lose touch with that. We listen to our parents. We listen to the culture at large. And suddenly, we’re 30, 40 years old and we’re a lawyer or we’re in some job that we don’t really connect to. And we’re down sized. And we feel like we’re at a loss. We’re aimless. We don’t know where to go.”

“So what do you do if you’ve lost touch with that voice?”

“You need to reconnect to who you are. You need to look at the things that excite you the most. I call them primal inclinations. It may not be so simple. It may not be so simple as saying, ‘golf.’

Robert knew when he was 8 years old that he loved writing. But he could never figure out what to write. He started with journalism. Then he tried novels. Then plays and movie scripts. “I could basically say I was a failure in all of those arenas because they weren’t connecting to something meaningful to me. It wasn’t who I was.”

Finally, someone suggested “Why don’t you do a book?”

Now he’s a bestselling author. “So the lesson there is, I kept trying my hand at things that excited me but weren’t quite right until I found the right thing. So you need to experiment. You need to look at what excites you and try your hand at it. If you’re 45 years old and you suddenly lost your job, you’re not in the position to experiment a lot. So what I advice is take the skills you have and apply them in a direction that suits you more.”

He told me about “The Law of Covetousness,” which is about about learning how to be desirable.

And “The Law of Fickleness” where Robert teaches you the steps to develop inner authority

And so on.


There are only certain books that make me feel like I’m getting smarter. I could feel my IQ go up reading this book.

And I want you to have this feeling. Because it’s actually part of full-body health. To feel like you’re improving even if it’s just 1% a day.

So I’m giving away copies of this book. All the details are on my Instagram. And I hope you get one.

Maybe you’ll get the signed copy.

 

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Thursday, October 18, 2018

Ep. 402 – Jocko Willink & Leif Babin: How Navy SEALS Lead (In Business & The Battlefield)

The troops didn’t care. They got a direct order. And did the opposite.

“No patches,” Jocko said. He had a good reason. “Other units judge you on how you wear your uniform.”

They were about to do a mission with the Marine Corps and the U.S. Army. Jocko wanted his SEALS to make a good impression.

But Leif Babin and the troop had a different plan. They designed. And disobeyed.

“‘More Cowbell’ was one of my favorite patches,” Leif said.

Jocko saw a picture of them (taken by a reporter in the field). “The patches were staring at me.”

And he was furious.  

“As I sat there and looked at these patches, I was going through my mind… all the punishments that I was going to unleash.”

But that’s not leadership.

And that’s what Jocko realized one minute into his anger. He and Leif were teaching me about the internal struggles of leaders. And what happens when you lead with ego vs. with balance.

Some people don’t want to be balanced leaders. They’re not leaders then.

They’re people in power. And there’s a difference.

“What’s a possible punishment you would’ve given?” I asked Jocko.

“Oh, there’s all kinds of punishments. The worst punishment that I could’ve done would be to say, ‘You’re not going on missions.’ And make them stay back. That was my first thought.”

Then his mind switched gears. It went from “How dare you?” to “Why did you you?”

He realized two things:

  1. These guys have never disobeyed him before. They’ve done everything he asked. So this must be important to them.
  2. His ego was making him angry. Not the troops. “The thought that I should just crush them and prove that I’m the guy in charge… that was my ego. But that didn’t last long.”

 

He took a second look.

They all matched. No one stood out. So it still looked uniform.

“So instead of unleashing punishment on them, I didn’t do anything.”

That’s leadership. Seeing the macro. And not just the micro.

“There are some situations where you have to hold the line,” Leif said. “Some standards have to be held without compromise. And then there are some areas where you need to let that go. And you need to let the team actually have some room to run.”

Jocko and Leif kept giving me lessons. They wrote about it all in their new book “The Dichotomy of Leadership: Balancing the Challenges of Extreme Ownership to Lead and Win.”

They break down each chapter with a dichotomy. For example “Be Humble not Passive” or “Hold Them Accountable But Don’t Hold Their Hand.”

I’ll tell you my favorite lessons:

 

1. DISCIPLINE CAN BE CREATIVE

I asked Jocko, “How do you discipline your kids?” “Yard work works,” he said. “You have any rocks that need cleaning?”

 

2. LEADERSHIP CAN’T BE SEMI-EFFECTIVE

“Something that Leif always brings up is that there are two measures of leadership,” Jocko said. “It’s either effective or it’s ineffective. So if it’s been working for 17 years and it’s not working now that means it was effective before, but it’s ineffective now. And we have to get over our ego figure out what the real problem is and solve it.”

 

 

3. BLAME YOURSELF / TAKE EXTREME OWNERSHIP

“The number one thing that I say to myself is ‘Whatever the problem is, it’s a leadership problem.’ That’s number one. There’s a problem, there’s something going on, let’s say they’re not they’re not closing deals in this in that particular case, the problem is a leadership problem.”

 

4. PUT THE MISSION FIRST. NOT YOUR EGO

“Ego causes so many problems. If we see problems on teams, if we see friction points or some things that aren’t happening the way they should, I mean 99.9% of the time there’s some ego issue in there. Someone’s not able to check their ego. They’re putting themselves before the mission, before the team. That’s one of those things you have to balance. I mean, you have to have an ego because if you don’t have ego, you’re never going to strive to do anything. You’re not going to compete. You’re not gonna try to be the best at what you do. And yet, ego can also be totally destructive.”

5. ASK YOURSELF, ‘CAN I ADMIT WHEN I’M WRONG?”

“If you put, ‘I’ve gotta be right’ before the mission then that becomes totally destructive. We see leaders that will just ride a plan into the ground and destroy their entire team and company just to prove that they were right. Because they can’t admit that their plan was was a failure and adjust that.”

There are so many more lessons than just these five. I’ll give you one more.

 

6. CALCULATE YOUR LEADERSHIP CAPITAL

Jocko said, “How much leadership do I have? Right now, (when the patches incident happened) we’re three weeks into deployment. And for the next six months, I’m gonna be asking these guys, my brothers, to go out, risk their lives on a daily basis, to take on this massive amount of pressure, to be in situations that they could get wounded or killed. On a daily basis. I’m asking them to do that. I’m asking them to be professional. I’m asking them to get virtually no sleep. I’m asking them to eat a bunch of crappy food. I’m asking them to be away from their families, their wives and their loved ones. I’m asking them to do all this stuff and on top of all that really meaningful stuff, I’m going to nitpick because they want to put a cool patch on their uniform? No, it’s leadership capital. And I’m not going to waste it on things that don’t matter.”


That was probably my favorite lesson. Because it helps with all the others. It helps you put the mission first. It helps you check your ego. And realize when you’re wrong.

And these are all hard things to feel.

It’s uncomfortable to be wrong.

That’s the dichotomy…

 

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Monday, October 15, 2018

401 – Chip Conley: How To Find Your Calling At Age 50 (Or Older)

People always ask “What number do I need to retire?”

Which really means “Do I have enough?” “Will I have enough?” “Can I survive?” “Will I be happy?”

But people aren’t retiring as much as they used to.

People are reinventing. They’re working longer. Or starting something new. They’re getting a second wind.

But that hasn’t stopped anyone from asking the retirement question. So I wanted to break it down.

See, when someone asks “What number do I need to retire?” they’re really asking, “What is financial freedom?”

And “Can I have it?”

I say “yes.”

Except, first I have to change the equation. It’s not x amount of dollars = happiness for the rest of your life.

It’s x dollars + virtual net worth = financial freedom.

Here’s how I broke it down on the podcast. I was talking to Chip Conley. He’s the Head of Hospitality for Airbnb and second time “James Altucher Show” guest.

He first came on my podcast a couple years ago. (When I was living in Airbnbs)

I got a call from my host. “Hey, the Head of Hospitality for Airbnb is staying in the apartment right below you. Do you want to meet him?”

“Yes.”

He came downstairs with a bottle of wine. (Classic hospitable move.) I opened my computer and recorded our conversation.

Now Chip has a new book out called “Wisdom at Work.” So I invited him to the studio.

He’s 58 and he’s not retired. He said he found a new “calling.”

People with jobs and careers want to retire.

People with callings don’t.

So one way to “retire” is to find your calling. That’s one option. There’s another option, which I’ll get back to.

First, I asked Chip how he found his calling. Here’s what I found out:

1. Mine Your Mastery

“I spent 26 years being a boutique hotel entrepreneur. In 2013, the three young founder of Airbnb approached me. They said, ‘We want to democratize hospitality, will you join us?’”

He said yes.

Now, I should say, of course this opportunity was rare. It’s not everyday or in every lifetime that some future billionaires will approach you and ask for your help.

Chip already built up his skillset.

He had spent the majority of his career disrupting the standard hotel industry.

Boutique hotels were unheard of when he first got started.

His foundation matched their future.

But let’s say you’re reading this and thinking “No one’s going to approach me.”

That’s fine. Make a list. Write down all of your skills (the things you got really good at over the last 5, 10, 20 years). Then cross out all the ones you don’t enjoy doing.

  • That’s Step A: Mine your mastery.
  • Step B: Make a list of things you’re curious about.

Now draw lines between them. Where can you see yourself? And listen to your gut. “There’s lots of physical effects that can happen in our life that sort of tell you you’re on the right path,” Chip said.

That’s step 2.

 

2. Get Clear

“Getting clear internally is probably one of the most important things for us to figure out in life,” Chip said. “Weirdly enough we don’t do a whole lot in people’s upbringing to help them get there.”

“Zero,” I said. “We don’t do anything to help people get there.”

“Yeah, thank you.”

“We just feed them facts they’re going to forget.”

And sometimes in the process of memorizing those facts, we forget to understand ourselves. Sometimes I even feel guilty when I try to get clear.

Like “Oh, no, I don’t have time to get clear with myself I have a spreadsheet to do.”

Here’s how I get clear: I go back to my 10 year old self. And I write down everything I loved back then.

That’s it. Don’t go any further. Don’t try to match it with job description. Don’t try to turn it into a company.

Just go to sleep.

Let your brain digest it.

And in the morning, I wake up less anxious. And more clear.

 

3. Forget Who You Think You Are

Chip thought he was going to be CEO, Brian Chesky’s mentor. He was wrong.

“Within the first couple weeks, I realized… I’m the intern.”

“I was twice the age of the average employee. I didn’t understand the language being spoken in the hallways. I didn’t have an Uber or Lyft app on my phone at that time. I had never heard of the sharing the economy. I had gone from being the pioneer as a boutique hotel entrepreneur in my mid 20’s to being the establishment by 52.”

He could’ve quit.

He had all the excuses. “I’m too old.” “I don’t belong.” “I thought I was going to be the mentor.” etc.

He stayed.

“I decided the only way I’d survive here is to be as much of a curious learner as I am the wise sage.”

He combined what he knew with what he didn’t know.

“And that’s what a modern elder is,” he said. “A modern elder is not the traditional eder that passed and is regarded with reverence. The modern elder is all about relevance.”

“Ok, how do you become relevant?”

“By taking that timeless wisdom and applying it to modern problems.

For example: when Chip was building boutique hotels, he already faced the skepticism and mistrust since it didn’t have “Hilton” on the name. So he had to battle that.

With Airbnb, he could help meet skepticism head on.

So he saw they had this “superhost program.”

Which did two things: it reassured you that the host is good at what they do. And it incentivized the hosts to step it up.

When Chip started working at Airbnb, there were only 200 superhosts in the world. And Airbnb hadn’t added any new ones for over a year. They were even thinking about getting rid of the program.

Then Chip stepped in.

 

He knew this could help fight skepticism and encourage people traveling to trust their host and trust Airbnb.

 

And it worked.

Now, there are 700,000 superhosts around the world.

But if Chip held on to this idea of “No, I can’t be the intern. I have to be the mentor, he would’ve left. And he would’ve lost his chance to be the modern elder.

—–

OK, back to to retirement.

The second option: build your virtual net worth.

I’m 50. And I’ve gone broke more than once.

People tell me, “You don’t seem 50.”

And then I’m supposed to say, “Thank you.”

But I don’t. And I won’t.

Because I’m actually proud to be 50

It’s part of my virtual net worth.

I’ll explain.

Let’s just say you need $10 million to retire. (This is not a real example). I’m just giving easy numbers.

With $10 million you’ll make 4% a year after taxes, conservatively. So you can live a great life with $400K a year.

But here’s the flip side: if you love what you’re doing and you don’t have $10 million but you’re making $400K a year through multiple streams of income, it’s as if, virtually, you have $10 million.

And instead of retiring, you have your calling.

And you’re not worrying every morning at 6am “Do I have enough?” “Will I have enough?” “Can I survive?” “Will I be happy?”

Because you already are.

 

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Friday, October 12, 2018

WHY THE STOCK MARKET DROPPED: MY TWO CENTS

I hate writing about stocks. I used to outsource my happiness to the moves of the stock market.

Day by day, minute by minute. I was miserable.

But I’m seeing too much BS in the news so I just wanted to make some comments and point out things not typically in the news.

This is not a political article. Or an economics article. Or an article even about stocks.

The stock market (the Dow Jones index) fell 1400 points in the past few days and I started to see the usual “Dr. Doom” style pundits begin forecasting doom and gloom.

They are wrong like they are always wrong.

The points I’m about to make aren’t even about the past two days.

But they are about the things you need to look at when making major decisions with your money. And not rush into irrational behavior.

It’s important to understand this one cognitive bias: Herd Behavior.

When a movie is over, everyone shuffles to the aisle and rationally waits to leave through the exit.

But if someone yells “Fire!” then the cognitive bias known as “herd behavior” takes over. Everyone gets irrational. The exits gets clogged with a mass of people. And then people die.

To survive in the investing world you have to avoid herd behavior. Don’t get burned by the fire. Or even the rumor of “fire!”

The pundits on the news are just trying to make money by yelling “fire”.

If the below is a little technical, ask in the comments and I’ll try to answer. But it doesn’t matter. Just note that things are always a little more nuanced than what is portrayed.

The key to everything in life is to stay in the game for the long term.

——-

FIRST: FAQ ON WHY THE MARKET WENT DOWN

** Why did the market drop?

Because people are afraid the Federal Reserve is going to keep raising interest rates.

** Why would this be bad for the stock market?

Because when interest rates are TOO HIGH there is more incentive for people to keep money in the bank than for people to invest in the stock market.

There is also less incentive for companies to borrow money to explore new innovative projects so there are less jobs, less inflation, etc.

** Why does the Federal Reserve raise interest rates?

Because when there are signs that inflation is heating up, they want to avoid too much inflation and they want the economy to slow down a little bit.

** Is there inflation?

Not really. Inflation is around 2%, which is normal.

But with unemployment near all-time lows, demand for employees will go up in the future, which will increase wages, which inevitably will increase prices.

So the Federal Reserve tries to get ahead of this by raising interest rates.

** Why are we even worried about interest rates?

Because the media needs headlines and they need to say “The Dow fell 1400 points because…” and they point to interest rates.

Plus, Trump said the Fed is “going crazy” causing people to panic even more about interest rate increases in the future.

But, as I’ll show below, Trump’s comment was more theatrical than practical and the worries are mostly nonsense.

——-

FAQ ON HOW TO THINK ABOUT THE CURRENT ENVIRONMENT

** When does the Fed normally raise interest rates?

Nominal GDP (the value of all goods produced in the US) is at 5.8% (GDP + inflation).

Federal funds interest rates are at 2.25%.

“Neutral rates” (the rate level at which the economy can still grow without inflation picking up) is usually considered near the Nominal GDP, give or take. So we are still very far from being in a danger zone with economic stagnation.

** Is the stock market overvalued?

Right now the P/E ratio of the S&P 500 is 22. Historically over the past 40 years it’s been 20.2.

If you don’t know what the “P/E ratio” is don’t worry about it. It’s a standard way of valuing the market and determining if its overvalued or undervalued.

There are no rules that say P/E ratios have to be 20 but since it’s less than 10% higher than historical, with profits going up, this doesn’t seem to be a big issue.

** Can the market still go up?

The forward P/E ratio (next year’s estimated profits) is 16.9, which leaves room for the market to grow heavily next year even though, again, the 20.2 is an average and not a rule.

The point is: there’s no stock market bubble.

** Is the Deficit a problem?

The size of the deficit is never the issue. It’s a country’s ability to PAY BACK the debt that is always the issue.

Interest payments on the federal debt are about 1.4% of GDP.

Between 1982 and 1995 this number was between 2.5% and 3.2%. We were paying it back then, we are paying it back now.

** What about the future?

Interest payments on debt could rise in the next decade or so as entitlement programs get more expensive but there is plenty of time for reforms before that happens.

** The tariff “war” 

Before the recent slew of tariff increases, the US tariffs were below every other country. We’ve simply stopped subsidizing the rest of the world.

Canada, China, Europe all had higher tariffs on our goods than we had on theirs.

** Who makes the decision on interest rates?

The Federal Reserve (the FOMC) raises interest rates. The FOMC has 12 members. Seven of them are on the Board of Governors of the Federal Reserve.

Trump will end up appointing six of those Governors. And he appoints one of the District bank presidents (New York) and the Minnesota head (Neel Kashkari) is against raising rates.

In other words, Trump controls the Federal Reserve although he is not admitting that.

Trump is looking at the 2020 election. For better or worse, he will pump as much cash as possible into the stock market.

This may be a net negative after the election but it’s a positive right now. (More cash = more jobs).

** How else does cash get into the stock market?

The Fed is not the only way cash gets into the economy.

The recent overhaul of Dodd-Frank raised the threshold on what banks need to be regulated, freeing up thousands of community banks.

All banks were regulated in the financial crisis of 2008-2009 but smaller community banks were not really the source of the troubles so it makes sense they are deregulated now.

This will mean more banks will be lending, more houses built, more jobs created, more money flowing into the economy.

Markets fell because of headlines. But don’t let a yell of “FIRE!” cause you to make irrational decisions that you normally wouldn’t make.

I know that I am irrational also. I tend to be too optimistic. I tend to smile too much.

But, we all die sometime. Might as well smile a bit.

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Thursday, October 11, 2018

400 Podcasts = 400 “Yes’s”

 

Today, my 400th podcast releases.

400 episodes = 400 “yes’s”

“Yes’s” from Tony Robbins, Richard Branson, Tyra Banks, Tiffany Haddish, Garry Kasparov, Kareem Abdul Jabbar, Tony Hawk, Arianna Huffington and the list goes on (by #392).

But first, I had to say “yes.”

And I’ve written a lot about podcasting and what I’ve learned…

  1. Why You Absolutely Must Do A Podcast 
  2. The Ten Secrets Of Podcasting (and what I’ve learned) 
  3. How My Podcast Downloads Doubled Overnight 
  4. Podcasting, Then and NOW 
  5. I Did 200 Podcasts With My Heroes. This is What I Learned… 
  6. The Ten Secrets Of Podcasting (and what I’ve learned)
  7. What I Learned from my First Podcast Guest in 1980 and What I Learned from My Last Podcast Guest (Yesterday) 

And I’ve interviewed more people than I ever thought possible.

So I put together a special bonus episode with my team. It’s 24 clips from the last 100 episodes.

It was hard to pick which ones to talk about. Because each episode has value.

I remember telling Jordan Peterson that nothing he said changes lives. He agreed. It’s the person ready to hear it that changes the life.

So I hope this bonus-style episode makes it easy to find what you need today.

Here’s the 400th episode with clips from all these guests (see full list below):

(Also, Part 2 comes out Saturday so make sure you subscribe.)

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Wednesday, October 10, 2018

HOW I CRUSHED NEIL DEGRASSE TYSON’S DREAMS

I didn’t plan on telling Neil deGrasse Tyson that I don’t believe in his dreams. But that’s what I did.

I told him, “You’re living a dream life.”

“I still have this fantasy,” he said. “It could be a fantasy but I’d rather it not be, but the fantasy is that one day, sooner rather than later, I give all of this up and go back to the lab and become a scientist again. And you never see me.”

“I kind of think you’re not going to do that because…”

He started laughing.

I told him “You won’t”. And he laughed.

But I guess that’s an easy response when you know so much more than the person sitting across from you.

I asked him every question I could think of. Because I’ve wanted to interview Neil for years now. I’ve read all his books. I loved Cosmos. And he works at my favorite childhood museum.

So here are 5 of my favorite lessons from this episode with Neil deGrasse Tyson:

1. Curiosity is Freedom

Physicists don’t think like other scientists.

Look at their vocabulary. “It’s quite transparent unlike chemistry and geology and biology.”

The official name for the start of the universe: “The Big Bang.” There’s a red spot on Jupiter. They named it “Jupiter’s red spot.”

“We focus on the idea we’re trying to communicate,” Neil said.

But look at biologists. What did they name the most important molecule in the human body? Deoxyribonucleic acid.

DNA.

“The physicist will strip naked a problem down to its fundamental essence of matter, motion, energy forces, this sort of thing.”

He gave me an example.

And he first made this clear: physicists are trained to think. “It’s the rewiring of your brain,” he said.

“You look at a couch. To a physicist you’re not looking at the cushion or the color first. You’re looking at what’s supporting it. ‘Oh, there are four legs. So there are forces at each leg and the rear legs support a higher force because that’s the back of the chair.’ So you get the force diagram going in your head. Now you clad that with everything most people care about when buying the couch.”

It might seem like it doesn’t matter. But it does. Because Neil has more thing to be curious about. Just because of his study of physics.

More curiosity = more freedom.

 

2. Find Your Section

If I don’t know what I love anymore, I go to the library. Or a bookstore. I roam the eisles. And read the section names “Fiction.” “Non-fiction.” “Business.” “Poetry.” “Philosophy.” etc.

I try to find the section where I would want to read every book there. Every old book. Every new book. Every book that’s not written yet.

Neil found his section early.

He was born the same week as NASA. At age 9 he fell in love. And he’s never turned it off. I asked him if he ever felt like he made the wrong career choice.

He said, “What? I don’t understand the question.”

 

3. Don’t Be Intellectually Lazy

Neil told me about Richard Holbrooke. He was a diplomat who studied physics.

And it made him a better negotiator.

“Because as a physicist, when you walk into a room, you analyze what people are saying. You cut the fat and B.S. And you say, ‘This is what they actually mean and why.’ Because the laws of physics are operating the same room and they apply to everyone equally.”

“Ok, but how?”

He gave me two examples. And both are related to war. Because that’s what Neil’s new book is about. It’s called, “Accessory to War: The Unspoken Alliance Between Astrophysics and the Military.”

  • #1. Your enemy might threaten you with certain amount of firepower, but if you know their budget and how many scientists they have, then you might be able to determine they’re bluffing.
  • #2. Your enemy might say they moved their troops from here to there. But you look at the measurement. And you evaluate their equipment. And come to the conclusion that they’re not telling the full truth.

 

“You analyze what people are saying and the likelihood of it being true. By the way, it’s equally intellectually lazy to accept what someone says as true as it is to reject what someone says as false.”

Then he told me how… in lesson #4

 

4. Ask Questions

“The real scientific inquiry is about probing the information, knowing how to ask questions, and learning the difference between what is the bologony and what is the truth.”

Not everyone feels like their in a position to ask questions. Because maybe you’ll look stupid. But I’ve learned the only way to get smart is to look stupid.

 

5. You Want To Go to Mars

I asked Neil, “Why would anyone want to go to Mars anyway?”

“Um, O.K. Here’s what you sound like… We’re in my office, huddled around the microphones. And I say, ‘Gee, I wonder what’s outside this cave?”

‘No! Let’s stay in the cave. There’s no real reason to leave the cave. We have cave problems we have to solve the cave problems first.”

I saw his point. But I countered.

“But what if we send robots to Mars and I can see Mars as if I’m the robot?”

“You can’t though,” Neil said.

“Oh, because of the speed of light?”

“Yeah, there’s a time delay that makes it nearly impossible to do any good work.”

Then he described the future of space tourism. And who the first trillionaires will be…

——-

When I told Neil that he won’t go back to the lab, what I really meant is “I don’t want you to go back to the lab.”

But that doesn’t matter.

I don’t matter in the equation of Neil’s future. And that’s why laughed.

Because he knows deep down what he wants.

And he hopes to do it.

He even said, “I’m in control of it.”

And I don’t know if that’s the optimist in him speaking or the physicist who boils things down to its parts.

Maybe both.

 

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Tuesday, October 9, 2018

How I Overcame Rejection

One time I was crying and my mom, quite reasonably wanting me to stop, threw a knife at me.

It missed. She had poor aim. But it did stop me crying.

It was a long time ago. I was 12. I don’t remember too many things from when I was 12. But I remember the knife.


I asked a girl out, Nadine Davis. She said “no”.

I was a junior in high school. I forget how I asked her out. But I remember she said “no” and walked away quickly. Disappearing into a crowd of students that were laughing.

That was of one of six girls that said “no” to me while I was in high school. Nobody said “yes”.

My first kiss was when I was a freshman in college.

And because I was so insecure and afraid that nobody would ever like me again, I moved in with that girl until we graduated.


I wrote four novels. I was writing about 3,000 words a day while I was in graduate school.

28 years later I still write 1,000–3,000 words a day every day.

Since I was in graduate school for computer science, the 10 hours a day I was putting into writing novels didn’t really help my grades.

I failed all of my classes and got thrown out. I was rejected from getting a degree.

I then took easy programming jobs so I could work for just a half hour a day and then write for the rest of the day.

After each novel I would send them out to about 30 publishers. Big publishers, small publishers, agents.

I wrote about 40 or 50 short stories. I’d send them to literary journals, hoping that if enough got published I could put together a collection of short stories.

All four novels got rejected by all 30 places I would send them. Zero personal rejections.

Sometimes famous authors look back on that one rejection letter that had a personal touch, like: “I can’t take this but you’re close. Keep trying!”

I got none of those. I wish I got one. All rejections.

Why did I think I had a chance at making writing a career? For years nobody liked anything I did.

It takes a special kind of blind arrogance to keep going.

I spoke with John McGinley, who has been in over 80 movies and 100s of TV shows (He played “Dr. Cox” on Scrubs).

He told me he never gave himself a Plan B. If he didn’t succeed at acting, he would have nothing. And he told me he was rejected about 100 times for every one acceptance.

I was rejected maybe 500 times.


I pitched a TV show to HBO. They liked the idea. It was called “3 AM”.

I would walk around the streets of NYC interviewing prostitutes and drug dealers and homeless people and all the people who lost the ability to live a life during the day. We would all wander at night. Them doing their thing, me interviewing them.

I did it for HBO’s website and then they gave me money to do it for TV. I shot a 45 minute pilot.

They said, “No”. Years later the woman who told me “no” said she made a mistake.

But at the time I cried. I really put my all into that show. I worked on it for three years.

(Screen shot from the 3 AM website)


I ran a hedge fund. I had to raise money from wealthy people and then I would invest it for them.

One time I was at a lunch. The guy had silver white hair. Rich hair. He had a bright red sweater.

He said to me after a few minutes, “Your hair is a mess, you don’t have a business card. You’re dressed in second-hand clothes. Why do you think I should put money with you?”

He was right. At first I was angry at my friend who set up the lunch. But this stranger was right. I was a mess.

Another time I visited the boss of a friend of mine. He gave me a tour of his office and then said, “What can I do for you?”

I told him I wanted to raise money.

He said, “I would be happy to hire you. But I can’t take the risk of investing money with you. I have no idea what you do with the money. It could be illegal.”

He said, “The last thing I need is to see my name on the front page of the Wall Street Journal. Reputation is everything.”

His name was Bernie Madoff.

One time I built a company that was a combination of social media and investing.

I was a programmer and an investor and I combined my interests to create a website that a million people were using.

I wanted to sell my company to Google. I visited them.

People were skateboarding in the hallways. There was a chef. Everyone was smiling.

I felt this thing in my heart. Like I was on a first date.

We all met in a big conference room and everyone asked me such smart questions. I felt like I was in graduate school again where everyone was so smart and curious.

At 3 in the morning my heart was pounding. I woke up and wrote them a letter. “It was so nice to meet you…”

Like a love letter.

They rejected buying my company.

Once again I cried. I cried after Bernie Madoff. I cried after Google. I cried after HBO. I cried when my novels were rejected. I cried when girls said “no” to me.


I think I get rejected every day.

I got rejected yesterday. I’m not ready to say what it was about but it was something important to me.

I got rejected the day before. Someone I really admired didn’t want to go on my podcast.

I got rejected the day before that. I was doing stand-up comedy and I didn’t get as many laughs as I would’ve liked.

I got rejected the day before that. I wanted my daughter to go with me to Paris and she said, “no” because of school work.

I got rejected the day before that.

I’m not sure what happened to me. Because I still get disappointed after a rejection.

But I know that after a rejection I can ask “why” and I can improve.

After a rejection I can figure out if there’s a “backdoor” that can still get through to the people who say “you can’t”.

After a rejection I can ask experts and mentors (or read about them) and learn from their successes.

After a rejection I can take a walk and look at the beautiful rooftops with gargoyles and gardens and the intimate secret etchings of architects and take a deep breath and appreciate the moments we are allowed to breathe.

(I relax by staring at the rooftops instead of the ground.)

 

After a rejection I can come up with 10 more ideas of ideas I want to work on and use the experiences of failure to become a better person, to have a better chance at success, to work with better people who will contribute to my success (and I to theirs) and to increase my odds of doing what I love.

I say to myself, “If only she had said ‘yes’ yesterday to this project I really wanted. My life would be different!”

I could say that yesterday and still feel the sting. But in a day or two that sting will be over.

And I will be “on to the next one” as Jay-Z says. A billionaire rapper rejected more than anyone.

It’s a 100 to 1 ratio John McGinley told me.

“My dad would ask us, ‘what did you fail at this week?’”, billionaire Sara Blakely told me about her Friday night dinners growing up.

When Richard Branson’s flight to Puerto Rico was cancelled one time when he was 27 years old he created an entire airline as a result of that rejection.

When “50 Shades of Grey” was rejected by every publisher, EL James self-published it first (finding the backdoor), then after selling 250,000 copies she was traditionally published and now has sold 40 million copies.

When Barack Obama was told to “wait his turn” by every establishment figure he admired in 2008, he had the audacity to hope and became president.

When Mike Massimino, the astronaut who fixed the Hubble Telescope, failed the test (for the fifth time) to join NASA “because of his eyesight”, he did eye exercises for a year to actually get his eyesight to 20–20.

(Fixing the Hubble after being rejected five times when he applied to be an astronaut.)

 

The above people are lucky.

The above people are curious.

The above people are arrogant.

The above people ask “What if…?”

The above people learn from their mistakes and don’t blame others.

The above people learn new skills to enhance their old skills.

The above people don’t listen to what society tells them they should do.

The above people are threats to the establishment, to their friends, and to the most toxic people of all – their frenemies.

The above people over prepare and make sure their needs fit the agendas of the people they are asking from.

I’ve been rejected a million times. And it’s never pleasant. And I always want to give up. And I’m often depressed. And I’m often lonely.

But I’m free.

(The door is open. The bars are an illusion.)

 

 

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Wednesday, October 3, 2018

How To Improve Yourself In 6 Months

You can’t. It’s really hard to change. I’ve been an addict. When you’re addicted to a drug you can’t just say, “Well, this is bad for me. I’m going to stop.”

Just give up now or be ready to go through a world of pain.

Or…

You can. But it’s really hard and few people do it.

You can’t say, “I’m out of shape and I don’t exercise so I’m going to start exercising every day now for an hour a day.”

I started exercising three times a week. Some weeks two. Some weeks one. I knew that if I overdid it, then I would simply lose interest.

In any case, I lost interest. I hated it .

I stopped even though I knew that stopping would hurt me and not help me.

It’s really hard to change.

But…

Here’s how you can improve in the next six months.

Remember this line: The way you do Anything is the way you do Everything.

Remember it.

I’ve had to improve at lots of things. Sometimes to survive and feed my family. Sometimes to stay healthy and LIVE. Sometimes because I simply wanted to.

Learning to improve at ONE thing gives you the ability to improve at everything.

I read the other day there are three aspects of “well-being”:

  • Connection with community or friends or family or partners
  • Freedom (every day you make more decisions for yourself instead of relying or being dependent on the decisions of others)
  • IMPROVEMENT

It doesn’t say “Improve yourself”. It just says “Improvement”.

Because if you improve at anything, you are improving yourself.

And the way you do anything is the way you do everything.

I’ve had to improve at investing, interviewing, writing, selling, negotiating, creativity, public speaking, leadership, programming — all just to survive.

I’ve had to improve at chess, comedy, poker, parenting, being a good husband/boyfriend, reading, friendship, charisma, authenticity — all because I wanted to.

I realized quickly that the “language” of getting good at one thing taught me the basic grammar to get good at everything.

The way you do anything is the way you do everything.


FIND ONE THING TO IMPROVE:

You can’t improve without passion and obsession.

After interviewing on my podcast 400 of the most successful people in recent history, there’s one thing I know: all of them were obsessed.

They were obsessed with their ONE THING.

But improving at their one thing meant they were improving at everything.

You can’t be great at golf without weight lifting.

You can’t be great at physics without having the charisma to get across your ideas.

You can’t be great at inventing the light bulb without knowing marketing.

HOW TO FIND YOUR ONE THING:

Some basics:

A) There will be many “one things” in your life. I’ve been obsessed with chess, computers, writing, TV, business, investing, speaking, podcasting, marketing, stand-up comedy, etc.

Each thing feeds the other.

B) Go to a bookstore: which section could you see yourself reading every single book?

C) List what you LOVED at the age of 13. How did it age?

For instance, Matthew Berry loved sports at age 13. He later was an unhappy Hollywood screenwriter. Miserable.

But he wasn’t going to be an athlete. He was too old. Not in the right shape for professional athleticism.

But he quit Hollywood. Got divorced. Went broke.

And for $100 a post he started writing blog posts about fantasy sports.

He improved every day.

And now he’s the ESPN anchor for fantasy sports. I can’t walk down the street with him without people going up to him constantly and thanking him.

D) Try lots of things.

E) What are you a little good at? Usually what you have some talent at could easily grow into an obsession.

I asked Sasha Cohen, a former world champion of figure skating, what was the one most important ingredient of being the best in the world at something. Anything.

“Obsession,” she said. And so did the other 399 people I’ve interviewed.

And once you find your obsession, how do you improve?

And remember two things:

  1. When you improve at any one thing, you… IMPROVE.
  2. The way you do ANYTHING is the way you do EVERYTHING.

PLUS, MINUS, EQUAL:

When I was 17 I barely knew how to play chess. But I was a geeky, lonely kid and I wanted to be popular and I wanted to be good at something.

I wasn’t an athlete and girls didn’t like a pimply scrawny kid like me with no confidence.

I knew the rules to chess and they asked me to play on the bottom board of the school team. They gave me a book of rules to read while we are on the bus to the match. I won my game.

I don’t know why, but I became obsessed with getting better. People liked me when I won! I wanted to be liked.

Within three months or so I was the best on the team. A year after that I was the best high school student in the state and one of the best people in the country for my age group at chess. A game that millions of people played.

Here’s what I did:

I found my PLUS:

I took lessons from Sammy Reshevsky (once the best player in the world) and Michael Wilder (the US Champion). I took lessons up to three times a week.

Not everyone lives near a mentor they could take lessons from.

But I also read one-two chess books a week. And I studied the games of all the top grandmasters. For instance, Bobby Fischer’s book “My 60 Memorable Games”. I went through each game and his analysis over and over.

I had real mentors and virtual mentors.

I found my EQUALS:

I found other people my level who were striving to be better. We would study the same books and try to analyze different positions. We would play against each other and this was a way to see how I was improving relative to my equals who were just as obsessed as me.

I found my MINUS:

After I became better than everyone else on my school’s chess team I started giving them lessons.

If you can’t explain a concept to a three year old then you don’t fully understand that concept. Which means I’d have to go back to my PLUS (real or virtual) to understand more.

30+ years later I’m a nationally ranked master. I play every day. It’s something I’ll enjoy for the rest of my life.

(Frank Shamrock, the best MMA fighter in history, explained to me his Plus, Minus, Equal theory)


I had to get better at investing to survive.

It was 2001 and I had lost all my money I had made by selling a business for $15, million. I was struggling to raise a family, pay my mortgage, and nobody would give me a job.

I found my PLUS: 200 or so books about investing. I also found real mentors by trading for various hedge fund managers, although I had to gain knowledge from the virtual mentors before real mentors would even talk to me.

I found my EQUALS: many message boards of investors, everyone trying to figure out the right strategies that gave good, consistent results. Was it value investing? Momentum? Arbitrage? Etc.

I found my MINUS: I started writing about investing to people who understood far less than me. The MINUS was critical because it helped me understand how the masses invested and what they were doing wrong that I could model via computer software.

I became a good investor and made a lot of money and pulled myself out of the hole at the exact moment I was about to be buried alive.

TEN A DAY

In the summer of 2002 I was so depressed. I had about four months before I would lose my house.

I was scared. One thing made me happy.

I would write down ten ideas a day. Somehow being creative just a little bit made me happier. Made me have hope. Made me think I would make it. That no matter what I could make it.

I could climb. I could improve I could wish and hope and live and love. Just ten ideas a day and maybe one would be good or okay or something I could grab onto and it would pull me out.

And it did.

MICRO-SKILLS

I wanted to get good at stand-up comedy. It’s scary to go onto a stage with a room full of strangers.

It’s like public speaking but it’s not. I could go up and speak about Donald Trump and everyone could nod their heads and then my job is done.

But in stand-up comedy you go up to a room full of people who have no idea who you are and you have to make them LAUGH every fifteen seconds, more or less.

It’s HARD to make people laugh.

Do you know how many times the average child laughs per day? 300 times!

Do you know how many times the average adult laughs per day? FIVE TIMES!

So if I’m doing stand-up comedy for 15 minutes I have to make the people in the crowd laugh roughly sixty times. 12x more than they normally do in a 24 hour period.

(Dave Chappelle has all of the comedy micro-skills: storytelling, likability, crowd work, punchlines, point of view, etc.)

I did the PLUS, MINUS, EQUAL. I did the ten a day. And still do.

BUT… “stand-up comedy” is not one thing. Just like “investing” is not one thing. And “chess” or “tennis” or “piano” or “business” is not just one thing.

Comedy is a collection of micro-skills where each skill has nothing to do with the other skills.

You have to master each micro-skill in order to improve.

Here are some of the stand-up comedy micro-skills: likability, crowd work, crowd control, humor, delivery, dealing with hecklers, stage work, act-outs, writing, voice work, etc.

Here are business micro-skills: ideas, execution, leadership, sales, negotiating, fundraising, marketing, customer relations, etc.

Here are chess micro-skills: openings, endgames, attacking, defending, tactics, positional ability, and each of those are broken into micro-skills (king and rook endgames, king and two bishops endgames, king pawn openings, queen pawn openings, tactics in closed positions, tactics in open positions, etc.).

[FOLLOW ME ON INSTAGRAM TO SEE MY WEALTH MICRO-SKILLS]

Divide your passion into micro-skills. Pick one each day. Get a little better at it.

Last night, for the first time, I did a full hour of comedy in front of a full house of people.

I had a blast.

Did they? The key skill of comedy is to know that if you are having a party, then they are also.

BORROW HOURS

Malcolm Gladwell says that the Beatles practiced for 10,000 hours before they became the best in the world.

(The last time the Beatles performed together)

I’m 50. I don’t have that many 10,000 hours left in me.

But the good thing is: we’ve all done many things in life. You can borrow hours from other things you got good at.

I’ve put in my 20,000 hours writing. I’ve put in my 10,000 hours public speaking.

I was able to “borrow” hours from the time I’ve spent doing humor writing and public speaking when I started to get interested in stand-up comedy.

I had put in my 10,000 hours running businesses when I needed to get good at investing.

Investing means: “investing in businesses”. Too many people treat investing like a game. It’s not.

When I buy a share of Apple, I’m owning a piece of a real company with products, management, employees, investors, etc.

I borrowed from my hours running companies in order to understand how to value the companies I was investing in.

The other day someone said to me, “You can’t skip the line.”

Shut the F up.

I can do what I want.

FAIL FAST

When I was 17 I was playing chess for my high school team. I was in the #1 spot after playing for just a few months.

I lost.

I threw the pieces on the board and ran out. I heard everyone laughing.

I didn’t go back to school for a week. I hated myself. I hated life. I judged my life by my ability to be good at something and now I was “bad”.

I was a sore loser.

I stayed at the same level for years. But then, I don’t know why, I stopped being a sore loser.

I loved chess but maybe it was because I had other things in my life. I had a business. I was married. I was creative in other ways.

So I took lessons again (plus minus equal) and I quickly hit the Master level.

How did I improve so quickly then?

By losing a lot of games and then studying them.

Where did I go wrong? What micro-skills did I need to learn? What was I missing?

I studied with my PLUS. I asked my EQUALS. I taught it to my chess students.

I got better.


At comedy I was heckled when I first started. I was telling an extremely crude joke.

A father had taken his two sons. He started yelling at me, “Get off the stage!” I was so new I didn’t know what was happening so I kept telling my jokes while he was yelling

Afterwards, the MC came on and said, “Sir, do you need a drink?”

And the heckler said, “That guy was weird.”

I didn’t know what I did wrong.

So I asked my PLUSses.

“Videotape yourself,” one said. So I started doing that and, now, several years later, I still do it. I videotape each set and watch myself with both the mute and un-mute buttons.

Another PLUS said, “Likability is more important than humor.” I went too fast into my crude humor without focusing on likability.

Another PLUS said, “Work on setup/act-out/absurd-ism/punchline.”

Another PLUS said, “Work on crowd work”.

One of my EQUALS said, “You didn’t show enough confidence on stage so the audience knew they could overpower you.”

Another EQUAL said, “Find things that the audience can relate to first.”

I had to fail and bomb and die before I could kill and destroy and murder.

SAY YES

People always say, “Say no”. This is true. I even wrote the WSJ bestselling book, “The Power of NO”.

Well…

Say yes.

When you first start improving, say yes to everything. You need to learn.

I didn’t know what to say “no” to at first.

When I started my first business, “Can you design a logo for us?” Yes. “Can you write this software for us?” Yes. “Can you help us develop a new kind of tea?” Yes. “Can you come to LA for a meeting?” Yes.

I learned what to say Yes to and what to say No to. But I had to say a lot of Yesses.

With stand-up comedy, “Can you do one-liner jokes on a subway?” Yes. “Can you go up for 15 minutes even though you never have done that before?” Yes. “Can you go up tonight without any notice?” Yes.

“Yes” gives you the opportunity to build out the map of your comfort zone.

GO WHERE IT’S LEAST CROWDED

I asked Peter Thiel, the first investor in Facebook, what made Facebook so special.

“It’s the tenth social media network out there. It wasn’t unique.”

“No,” he said. “It was the first.”

“The first what?”

“The first social network with verified identity.”

Every other one prior to it: MySpace, Friendster, GeoCities, Tribes.com, etc allowed anonymity.

Facebook went to the place least crowded and became a $500 trillion company while the others went out of business.

Warren Buffett worked at 40 Wall Street for Benjamin Graham. He could’ve stayed there. That’s where all the Wall Street investors were. That’s where all the information was.

No.

He moved to Omaha. There were no investors there.

(A very young Warren Buffett learning public speaking in Omaha because he had the foresight to know he needed that micro-skill to raise money)

By himself, he studied every company report. He read all day long.

He’d find small companies in the middle of nowhere that he thought were undervalued.

He would drive to those towns and put up signs: if any employee has shares they want to sell, you can find me at this motel.

And then he’d buy up all the shares he could. He didn’t buy them on a Wall Street exchange, competing with everyone else. He went to people’s homes.

He was the only person who did this. Everyone else stayed on one little block in one city.

He became the most successful investor in history.

Everyone wants to stay in their comfort zone for a very good reason: It’s comfortable!

Of course it’s good and fun and easy to stay in the comfort zone. I HATE being uncomfortable.

But since EVERYONE is in the comfort zone, the comfort zone is where it’s most crowded. Everyone does the same thing, shares the same ideas, believes the same rumors, loves the same people, pursues the same dreams.

Right outside the comfort zone is a friendly neighbor: Opportunity.

Opportunity is just sitting there, waiting for someone to find it. But nobody wants to be uncomfortable.

Practice being a little bit uncomfortable each day. Practice getting outside the comfort zone.

Take a cold shower, tell jokes in a subway. Pitch an idea to your hero. Say sorry to your mother.

TALENT SEX

Scott Adams, the creator of the most syndicated cartoon strip in history (Dilbert), told me:

“I was not the best drawer, but I was pretty good. I was not the funniest guy but I was pretty funny. I was not the best at business, but I was pretty good. But when I combined them all, I was the best.”

And that’s how he created Dilbert.

POINT OF VIEW

When I look at social media, it seems like there are only two point of view: pro-Trump and anti-Trump.

One side screaming at the other. Nobody listening to anyone. Oh, and if you need to scream louder, find out what the latest viewpoint of your “team” is and shout it out loud.

Everyone in their air-conditioned suburban homes yelling how they’ve “lost faith in humanity” because of the other side.

Whatever I do, I try to have a unique point of view. Else I’m just replaying someone else’s thoughts.

Point of view on publishing: don’t beg an agent or publisher to publish your book. Self publish a book! And here’s why X, Y, and Z.

Then I self-published my most successful books, helped Amazon advertise their self-publishing, and even created a course on self-publishing.

I do a podcast. I don’t just interview people to get facts. I have a point of view: I want to know how people survived their darkest moments. How they climbed out of the hole.

Selfishly, I wanted to learn this so I could get better.

I didn’t ask Kareem Abdul-Jabbar how to get better at basketball. I could care less. I asked him why I couldn’t find any photographs of him smiling.

I didn’t ask Sara Blakely how to sew underwear (which made her a billionaire). I asked her how she avoided doubting herself when she had never been in the fashion business.

I didn’t ask Jewel how to be a better singer. I asked her why she turned down a million dollar deal when she was homeless and sleeping in a car. I wanted to know how I could have such authenticity.

(Arguing with Jewel)

I had a point of view that created my “question compass”.

In stand-up comedy, point of view is critical. Else you just tell fart jokes. I have insecurities about relationships. I’m afraid to lose all of my money. I think most of society is hypocritical. I think people are 100% irrational 100% of the time.

Jerry Seinfeld looks for the absurd in everything. Then he makes a joke.

Point of view is funny when it’s unique.

BACK TO BASICS

Whenever I bomb on a 15 minute set in a professional lineup in a crowded room, the next day I do an open mic with beginners.

Whenever I make a bad investment, I get back to my basic formula (invest with people smarter than me).

Whenever I have a bad relationship, I try to meet people who I can just be friends with. Restore my faith that there are good people in the world.

——

There are good people in the world.

Connect with them.

That’s how you improve.

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