Michael Saylor BEST Bitcoin Podcast: Why you NEED To Own At Least 0.1 Bitcoin In 2025

I think the risk reward proposition for

Bitcoin in the year 2024 is um is better

than any other time in the history of

the asset why can't it subsume all store

value property which gets you to 2 three

400 trillion this is why we want to

study history if you studying history

you're going to find that the currency

collapsed thousands of times in fact on

average it collapses everywhere I think

the Bitcoin Gold Rush error started

January 2024 and I think it runs until

around November 2034 this is the gold

rush because this is the period where

there's still a lot of fud there's still

a lot of uncertainty people still aren't

sure they don't understand digital

energy they don't understand digital

Capital they don't understand digital

property so the critics are are

misinformed and the mainstream investors

they have all the money there's $900

trillion of wealth out there there's

only 1 trillion in Bitcoin so 9

99.9% of the money of the wealth is not

invested this will be one of the most

important videos you ever watch Michael

sailor is perhaps the most well-known

figure in the Bitcoin space he's the

founder and executive chairman of micro

strategy he is a man that completely

speede headed the wave of institutional

adoption of Bitcoin as of recently micro

strategy holds 190,000 Bitcoin worth $10

billion however I want to give you guys

some context to this interview 2 and a

half years ago I was living literally

paycheck to paycheck in a pretty bad

apartment in a suburb just outside of

Sydney I had just begun making YouTube

videos and I decided to message Michael

sailor out of the blue what did I have

to lose to my complete surprise sailor

accepted the message agreed to come on

the channel for an interview and after

the interview he stayed on and chatted

with me for about an hour since that

first interview I followed sailor's

advice and wisdom and it has completely

changed my life I'm now financially

secure I get to permanently travel the

world with my best friend and it's all

because I listened to and followed the

advice of Sailor from that first

interview now I want the same for you

Michael sailor is a true Trailblazer and

he's undoubtedly going to go down in

history as one of the best investors to

ever do it pay attention to what he has

to say Implement his advice and it will

undoubtedly change your life also guys

if you want to level up as a crypto

investor in 2024 make sure to subscribe

to the new channel and drop a like it's

completely free and it helps out

immensely but without further Ado let's

jump in with Michael sailor so let's

jump straight into it and before we get

to the standard questions I did want to

ask you something I thought was super

interesting at the beginning of this

year it went a little viral a excerpt

from The Washington Post back in 1996 I

wanted to read you one quote and ask you

firsthand if it was in fact true so the

quote is for fun sailor says he reads

2in thick TOS on the history of Western

Civilization after he gets home from

work at midnight Michael when I read

this I thought it was incredible and I

wanted to ask you is this true and is it

still true you know I I always loved

history so yeah it's sort of true uh at

the time that that was written I think

uh I used to read excerpts from the

story of civilization to new employees

when on their first day and so I read

about that and uh and that stuck with

people uh now I would say what I what I

do very often is I listen to the audio

versions of books and audio histories

and and one thing I've been doing is

rereading SL listening the story of

civilization so that's the history of

Western Civilization by Will and Ariel

Durant and it's it's you know a dozen

volumes a thousand pages each volume it

takes about 50 hours to get through each

one and you know it's our our Oriental

Heritage and the life of Greece and

Caesar and Christ The History of Rome

and in the middle ages the age of Faith

you know right now I'm listening to the

age of vol you know and I think it's

really really constructive uh to do this

for a couple reasons F I mean first of

all now you can when I'm on a treadmill

or walking down the street or in a car

I'm listening so I I I feel like I

accomplish more of my time than if I

listen to the same uh song on repeat 98

times even though I enjoy the song but

it's like 98 times the same song um but

the second thing is when you when you

study the history of the world whether

it's the story of Western Civilization

or Murray rothbard wrote some really

detailed books on um on uh the economic

um economic circumstances in the United

States before Revolutionary War called

conceived in Liberty or he wrote a you

know an Austrian Economist view on the

history of economic thought and so the

history of economic thought for

thousands of years and when you listen

to those

things at the age of maturity you

understand better and differently than

when you first of all I didn't read it

you know in my teens or 20s and now I I

do read certain things but the second

thing is is if you've lived long enough

then when you read the stories again you

understand what happened and and it

makes a lot more sense so and it's very

relevant to bitcoin because what you see

is um is you see the the uh tension

between Chaos and Order and between

Authority uh those those wishing to

impose Authority and then those wishing

uh to promulgate

freedom and also um it helps you uh to

overcome a lot of a lot of tropes a lot

of cliches you know for example uh

people have been creating money or

currencies for thousands and thousands

of years and in just just about every

single one of these stories it always

starts with a new ruler a virtuous

Society a new currency they keep it

strong they expand everybody trades in

the currency then uh they expand some

further then they have to fight a war

then they print more money to fight the

war then they debase the currency pretty

soon uh the currency isn't worth

anything people don't want to trade with

them because they debased the currency

they inflated it away and then at some

point the soldiers realize that the

money they're being paid in is worthless

or or the soldiers don't get paid and

when the soldiers don't get paid they

all Mutiny or they desert and then

invariably what happens then is someone

outside of those borders wins the battle

and of course that Civilization uh

blames their decline on The Barbarians

like it wasn't our fault it was bad guys

who speak a different language or have a

different religion they actually

attacked us

provoked and uh and the story is always

bad people cause the collapse of our

civilization but but the real story

generally is the civilization got fat

thumb and happy and then they got

arrogant and then they started

counterfeiting money and then they

forgot that you can't pay your own

Soldiers with counterfeit money and

somewhere between the people starving to

death or or all the soldiers deserting

they found that they weren't able to

continue with the wars they were

fighting and then they lose the war and

then the next Society uh Rises and then

they do it all over again and it happens

it's not a dozen times it's not a

hundred times if you read this it's

thousands and thousands of times you see

the rise and the decline and the fall

and and the reemergence and there are

always these common principles and the

principles have to do with uh Power and

energy right the societies that uh that

don't know how to you know if you don't

understand Firepower like the the

Japanese they didn't really want to

embrace guns so they just passed the law

no guns and then the westerners showed

up with guns the same thing happened in

China for a while where they just didn't

they wanted to close their borders and

so they were against modern techniques

and then the westers show up with the

Firepower and then and then the borders

get

open and then uh and then the the

political uh Power structure collapses

and then another

you know at some point someone comes up

with a better Cannon and the people in

denial lose the next battle and then

somebody comes up with a better ship and

then the people in denial have less sea

power and so they get choked to death

and then someone comes up with a you

know a tank and then there's airplanes

and and it goes on like that it's always

about harnessing

power harnessing and channeling energy

and you've got the physical energy and

that's how people win the wars and then

you have the economic energy and all the

really good societies they managed to

create trading networks on a solid a

strong currency that people trust and

then eventually the grandson of the

person that's set it up gets a bit

cheaper and then the great grandkids get

a bit cheaper they start fighting

amongst each them each other then they

debase the

currency then their armies you know

their armies desert them and their

trading partners don't want to trade

with them and all of the commercial

energy bypasses them and then they blame

it on the

barbarians and it starts a new so that's

all in will Durant if you read it and

what you realize there's nothing new

Under the Sun everything's been played

out and and history is almost the story

of a bunch of uh

arrogant alpha males that are a bit

ignorant that think that this time it's

different and they were point on Earth

to fix things and they go you know

Alexander the Great goes gallivanting

off you know in his late teenage years

and of course we call him the great but

the joke is after he basically you know

conquered 200 countries and lost all of

his army he died by age 33 and

everything collapses within months after

he's dead so it's like you can do this

stuff for a year two years 10 years and

then everything collapses under its own

weight and

and it goes on and on and on like that

so I I really like listening uh to that

or reading those histories I think you

can learn a lot from them and the most

useful thing you can learn is this is

not the first T first time this has been

done in fact it it's it's common

throughout human history every single

civilization it failed because either it

couldn't Channel power it was less

powerful technically from an engineering

point of

right or because it couldn't Channel

Capital like economic power and its and

its monetary systems were were uh

completely defective or they were

inferior right the society that trades

glass beads gets stomped on by the

society that trades metal coins and the

ones that trade gold coins stomp on the

ones that trade copper coins and and

then even then you believe that gold is

money the Spaniards go off conquer the

new world they bring back all the gold

it doesn't solve the problem because

they inflate the gold Supply by a factor

of five so they created hyperinflation

their own economy collapsed and the

Spanish Empire collapsed because they

didn't understand uh the implications of

of inflating the money supply and uh

they figured that out the hard way 1700

years after the Romans figured it out

and they figured it out 500 years after

the Greeks figured it out and it

happened in Egypt and it happened in

Assyria and it happened in China and

it's it's it's happened as many times as

we can write it down and it's probably

happened a 100,000 times that we didn't

write down and so yeah I I encourage

people to read history especially good

uh good political history good economic

history and

uh

1500 uh in 1500 they were using

paintings as a store of value in Italy

right that's that's an interesting thing

that comes out you know uh you you'll

find all of these principles just keep

popping up how do you find scarce

desirable assets to store your value in

a in a portable fashion and if you read

it then you'll say wow Bitcoin would

have solved that problem so yeah I think

it's I think it's great and I encourage

people to read Durant and to read

rothbard and to read you know pretty

much any history written by a you know a

reputable source and do it now that

you're an adult because you understand

things now that you didn't understand

when you were in school and it will

resonate differently with you amazing

amazing what's that I mean there's that

saying that if you don't study history

we're doomed to repeat it and as you've

said it's the same story just playing

out over and over and over again and it

looks like Bitcoin is a solution to that

broken monetary system that is just a

recurring theme throughout the history

of Civilization now I do want to jump

into a more standard question um I

wanted to get to the big Catalyst that

we've had at the beginning of this year

and it was of course the launch of the

Bitcoin ETFs and although it was a bit

of a rocky start the first few days that

they were trading it now looks like that

a monster has been awoken and this huge

amount of money is just pouring into

Bitcoin from these ETFs every single day

uh Black Rock right now alone currently

holds 115,000 Bitcoin worth $6 billion I

wanted to ask your thoughts on how the

Bitcoin ETFs have gone over their first

month of trading were you surprised with

how popular they were I mean they've

shattered pretty much every ETF record

there was or did it go exactly how you

thought did the demand surprise you at

all I'm not surprised they're successful

I expected them to be very successful I

think there's 10 years of pent up demand

uh they're the most eagerly anticipated

development in Wall Street this is like

Bitcoin coming public it's like the IPO

of Bitcoin except it's like 10 companies

simultaneous taking Bitcoin public

because bitcoin's a commodity it's not a

security so the idea that uh that black

rock and Fidelity and grayscale and

bitwise and Arc they're all taking

Bitcoin public at the same time is a big

deal um the fact that I'm not surprised

they're successful as ETFs because

bitcoin's the Apex ETF the other ETFs

are based on oil like let's say

commodity ones oil gold plat platinum

silver

Palladium Market baskets of Commodities

natural gas all of these things are

defective as investment assets because

Comm because physical Commodities aren't

scarce physical Commodities can be

manufactured in any amount with

additional capital and knowhow so

ultimately um the best of them is the

gold ETF but if uh if a bunch of money

flows into a commodity ETF that just

actually f to's Capital into commodity

producers they just dump that commodity

on the market the price gets held down

so commodity ETFs were never that great

an idea um on the other hand comparing

these these Bitcoin ETFs to the S&P

index the biggest ETF and maybe the

biggest development on Wall Street was

the launch of the spider spy in

1993 about 30 years ago and the idea

that you could create an ETF that that

represented a Market Basket of 500

stocks that was big and especially that

was big because that came along at a

point where people had lost faith in in

the currency as money as a savings

technology and so they were trying to

figure out what is money and actually an

entire generation of people picked the

S&P index as money right H how are you

going to store your your excess cash for

a decade or

longer not a checking account not a

savings account not a

uh but the S&P so the S&P became money

and that ETF became the monetary index

and that's why today amongst you know

that that's the most successful ETF if

you look at spy and all the S&P index

type ETFs they have most of the capital

in them but um the problem with those

ETFs is that is that stocks also are not

conservative so if I increase the price

of uh the stock by a factor of 10 you're

getting more Equity or

if another way to say it is if I take

hundreds of billions of dollars of cash

and I buy the ETF like SNP

ETF the ETF has to buy all 500 stocks

Pro rata which means they're going to

have to go buy Tesla and Apple and

Google and meta at any price they're

price in insensitive even if they're

overpaying so when they buy it at any

price what they're doing is they're

creating more Equity because they're

encouraging those companies to issue

more stock and then of course this is

common sense if the price of your stock

doubles the employees and the company

with stock options they sell the stock

right they sell the stock option when

they sell the stock option you put more

stock on the market so the price uh the

price creates Supply there's a price

Supply uh elasticity there and that's

the same as you have with commodities

it's the same as you have with REITs

Real Estate Investment Trust and it's

the same thing with bond funds when you

have Capital flows into all those other

asset classes you create supply of that

asset they're not

scarce bitcoin's unique because no

amount of capital flowing into a Bitcoin

ETF is going to create any more Bitcoin

you know what we've got is 900 Bitcoin a

day and around April 16th to April 18th

of this year we're going to go to 450

Bitcoin a day this will be the having

but it will be the single most

consequential having in the history of

Bitcoin because you're talking about

it's the equivalent of someone coming in

the market saying I'm going to buy eight

A5 billion dollars of Bitcoin a year for

the next four years guaranteed that's

the demand impact right8 and a half

billion 23 million million doll a day at

the current price now that that's a huge

amount but more importantly that's a

huge demand Supply shift in the year

when the demand via the

ETFs has jumped by a factor of four to

10 times a daily Supply so what you have

is institutional Capital entering and

then you have the supply getting cut in

half and um you know what happened these

ETFs well uh here's what happened the

approval of the ETFs was was a uh pretty

concrete endorsement of Bitcoin is an

asset class by The

Regulators and anybody that's thinking

about banning Bitcoin or not approving

Bitcoin ETFs they're now out of

consensus so it really flipped the

global consensus from well maybe it's

too good to be true maybe it'll be

banned maybe it won't be be banned uh

the approval of those ETFs meant that it

doesn't matter who wins the 24 elections

it's taken the future of Bitcoin out of

the hands of the president it's taken it

out of the hands of the next head of the

SEC it's taken it out of the hands of of

most Regulators in the world it's we

pretty much open Pandora's box across

the Rubicon it's very concrete at this

point and it was

uncertain right before and so that's a

that's a very big uh piece of regulatory

Clarity what happened next is it it's

created a positive Dynamic where now I

think you're seeing pressure to approve

ETFs in other places in Asia you'll

probably see Hong Kong spot ETFs you'll

probably see them uh come uh get

approved in any country where people are

on the fence it also created a fee War

it used to be that you paid 2 and a

half% you know to hold your money in

Gray scale and all of the sudden now

you're paying one and a half% of gray

scale but you're paying 25 basis points

of rock or you're paying 20 basis points

and even 19 basis points not only that

bring down fees for institutional

holders of Bitcoin in the US it also put

pressure on international fees so you

actually saw a Rippling effect and

people with uh European or Canadian or

or other uh spot ETFs in the rest of the

world that had 100 basis point fees or

150 basis point fees they're having to

bring down their fees because otherwise

the capital will flow out of their

instrument into the lower cost

instruments so yeah let me let me

convert the math here if you have an

infinite duration asset and you're going

to put uh if you're going to put money

in it then the difference between um 2%

fees and uh 25 basis point fee is losing

37% of your

money you understand like like it's like

I take a third of your money okay so if

you're a Bitcoin investor you know

having low fees means you invest a

million and you get to keep the million

having high fees mean you invest a

million and you lose 300,000 of it over

the course of 20 years so those low fees

are well where's that where is that

going to manifest itself it's going to

drive the price of the asset up right

first of all because the people that own

the asset aren't losing one or two% of

their money every year but second

because there're a lot of people that

they will either invest a million

dollars in it or nothing right so if I

like it I'll just invest a million if I

don't like it I'll invest nothing so you

start to see money flowing from gold

into Bitcoin from from Real Estate into

Bitcoin from the S&P index into Bitcoin

and so that's a big deal so so the the

launch of the ETFs it's been very

successful this is the ideal type of

asset to put into an ed ETF wrapper it's

definitely the mo it's the global asset

it's the biggest brand everybody knows

what it is it's actually the best

thermodynamically Sound Investment it's

got the best historic performance and of

course it doesn't have the entire array

of risk factors that a company has or

that a bond it doesn't have credit risk

it doesn't have corporate execution risk

you know and it and it doesn't have uh

currency devaluation risk and it doesn't

have the physical risks uh of real

estate it's not going to ever get hit by

a bolt of lightning there's not going to

be a tornado it doesn't have maintenance

dek it doesn't have property tax risk

doesn't have the political risk right

ask the question you got a billion

dollars and you got to buy some real

estate in

Africa where in a where do you want to

invest a billion dollars in a building

what country what city where or you can

buy Bitcoin and of course so you can see

this is a higher quality

thing uh what was bitcoin's number one

liability coming into 2024 it wasn't uh

the risk it wasn't the thermodynamic

risk factors it wasn't the technical

capabilities the number one risk factor

of Bitcoin coming into 2024 was a

government would ban

it but see what just happened in January

the opposite right so so most of the fud

around Bitcoin is oh yeah it's too good

to be true and because it's too good to

be true the government's going to hate

that you you bought it and they're going

to take it away from

you and uh with the approval of these

ETFs it was the it was the Govern

government of the most powerful country

in the world United States wh which is

actually the leader of financial

regulation I mean whatever the US does

uh will influence Singapore Australia

New Zealand all of the EU even Hong Kong

even China for that matter and all of

South America and all the African

Regulators so everyone's looking to what

happens in the United States this was a

very powerful signal

so that was a that was a bullish

development there was a little bit of um

weakness following you know and and I

think that's fairly well understood uh

as a couple of factors first of all a

lot of capital

rebalancing there was Capital sitting in

the Futures uh BTO and other Bitcoin

Futures because institutional investors

don't have crypto accounts they can't

trade uh with most the crypto exchanges

so they had to buy the Futures and the

the cost of rolling a Bitcoin position

in the the Futures is like

10% you know like I mean imagine you

have a million dollars and someone

charges you $100,000 a year just to have

to trade on right I mean so you you

could see anybody with that position

they roll out of the Futures and they're

rolling into the spot so there's a lot

of that there were some people

rebalancing they had positions in

Bitcoin companies and the miners and

micro strategy Etc and they're rolling

out of those trades or rebalancing or or

arbitraging

there's a lot of people trapped in

grayscale and they couldn't get out and

then this unlock allowed some of them to

redeem at par and so there are some

people that that had they had five years

of pent up demand to redeem and so we

work through

that and then you have the arbitraging

between the the high fee grayscale and

the lower fee other other uh ETFs and

then finally you have a lot of Bitcoin

tied up in bankruptcy Estates and FTX in

Genesis maybe you know it it you know

blockfi Celsius

Voyager three arrows Genesis FTX Alam

well all of those are states are

controlled by lawyers and the lawyers

aren't long time they're not hedge fund

managers they're not even 10-year

investors right the lawyers have legal

and process constraints and maybe what

they want to do is just wind down the

trust payout the trustees to clear or or

the creditors to C Victory and move on

right so I think there's a lot of

selling pressure that came out of that

because a lot of them were holding

gbtc and they wanted to redeem the gptc

at par right and get liquid and so I

think there's that these are the

transients but at the end of the day

they're just transient factors right if

you're buying Bitcoin with a with a a

shorttime horizon for responsible

investor is four years so if you're

buying Bitcoin with a four-year time

Horizon this should shouldn't matter to

you at all and of course the right time

Horizon is 40 years it's like your your

useful investment life maybe and I mean

the inspired one is 400 years right if

you think out 400 years you'll do

brilliant things right if you think out

40 years you'll probably make the right

decision if you think out you know like

uh 10 to 20 years you won't have anxiety

four years is the minimum but you know

people that are trading with four weeks

and four months right they're just gonna

make awful decisions they're the ones

that probably Panic sold it when it

traded to 39,000 or they Panic sold it

when it traded to 16,000 or 20,000 12 to

16 months ago and they probably bought

it for the wrong reason but

ultimately what we've seen is Bitcoin

came public it's clear that you're going

to be able to own this as property for

the long term it's clear that this is

going to catalyze a bunch of very

positive behavior between by other

Regulators in the world it's going to

accelerate institutional adoption it's

going to embolden the political

supporters of

Bitcoin it's going to create a marketing

war between various Wall Street firms we

see that going on right now and uh and

it's it's going to strengthen and

Empower all of the OG Bitcoin holders

because even right now people talk about

you know what is black bought six

billion of Bitcoin and all these new

ETFs they bought what if they bought

like 1% of the supply well that means

99% of the supply and 99% of the

beneficiaries so far are the nonf

holders right I mean there's 100x as

much but if bitcoin's up $10,000 a coin

since this happened well that benefit

acred

99% right that's a $200

billion Improvement in the market cap of

Bitcoin and of the 200 billion 99% of

the 200 billion acrw to people who don't

even own the ETF right so it's it's

accelerating you know institutional

adoption and it's just accelerating

Bitcoin adoption and empowering

everybody else in the ecosystem to do

all the things that they want to do hey

guys I hope you're enjoying the

interview so far I just wanted to let

you know if you want to stay most up to

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sure you stay on top of all the news in

the space but for now back to the

interview now one thing I did want to

ask you I want to take you back to

2011 because many people in the space

especially newer people they know you

because of Bitcoin but something I think

that more people should know especially

people that are newer investors they

should know that this isn't your first

rodeo back in 2011 you made a huge bet

on Amazon Apple Facebook and Google and

you wrote the mobile wave on why mobile

technology will completely transformed

the world you had huge conviction and

you made a massive bet and it turned out

to be extremely successful now the same

thing play now you have huge conviction

on bitcoin and you've made an enormous

bet on it I wanted to ask you the

comparison between that first bet on the

mobile wave on Amazon Apple Facebook and

Google and how it compares to your

Bitcoin bet do you have more conviction

in Bitcoin do you think it's more

transformative a technology than the

mobile wave and back in 2011 if you

compare it to Bitcoin today was mobile

tech as misunderstood by investors than

Bitcoin is

now yeah I think it's a good analogy I I

think if you roll the clock back to that

period we were looking at the digital

transformation uh of a bunch of things

in society I mean Apple was the digital

transformation of devices and

Communications and Facebook was a

digital transformation of

relationships uh the idea you could

literally monetize someone's

relationship with their friends right uh

and and with Apple you know your tape

recorder you know dematerialized into

the phone and your camera dematerialized

in your phone and then all your photos

dematerialize in the photo album and

then your CD collection dematerialized

you know all these all your files

dematerialized so uh I always thought of

uh technology like acid it's just eating

away and dematerializing things um and

um Google just dematerialized every

library in the world and you know and uh

YouTube you know

dematerialized most video but also

you're looking at the dematerialization

of education and

entertainment right education

entertainment you know information very

profound things so what are the

consequences of that well the idea that

you could create one generic device the

iPhone that a billion people would

want and that you could update and

improve over the weekend with the

software push that was a big idea right

that was that's a massive uh

crystallization in the economy whereby

what if I told you I could replace 27

billion different

devices manufactured by a thousand

different companies that come in 10,000

different form factors that are all

analog that are fixed that can't be

updated and what if I said we're going

to replace all of those companies and

all those devices and all that

functionality with the single device

running one operating system the iOS

controlled by one company well that

would make that company the most

valuable company in the world and that

valuable company in the world because

that company could create the most value

because on the weekend they could give

everybody 40 million

songs right everybody has you know I'm

giving everybody uh a 100,000 album

library and they can listen to any song

any time for the cost of

electricity and I don't have to

manufacture uh 10 billion records or 10

billion CDs and I don't have to have a

100,000 music stores right like it used

to be there were stores and they put CDs

in them and trucks rolled right we met

we had factories to make them and we had

trucks to deliver them and we had

100,000 people to sort them and stock

them and we had stores and we paid for

electricity and people went to the store

Tower Records and they picked it up well

the crystal crystallization in physics

it's it's where you're collapsing to a

lower energy State you know you're going

from water vapor steam to to water to

ice and at each step energy gets given

off right and it's a basic thermodynam

Dynamic idea energy heat but you know in

an economy energy is money right energy

is profit so when we collapse when when

we stopped manufacturing film and

cameras and Recorders you know and and

and phonograph records and CBDs and DVDs

and and and whatever you manufacture

when we stopped that we reclaimed a huge

amount of energy and that converted to

money and that accred to the people uh

that most of it accured to the people

that use the Apple

product that's why they became the most

famous brand right I mean every body

knows it's kind of cool to have 500,000

photos on your iPhone right it's like

and they're all there uh so it accured

to them but a small portion of it

accured to Apple and that went to their

shareholders and that made them the most

valuable company in the world so in 2010

2011 I looked at it and I said

well eventually everybody's going to

want this eventually everybody's going

to have a computer in their pocket and

it's pretty clear it's like a it's kind

of a winner take all thing Apple

Apple ended up generating all the profit

in the mobile phone industry and

everybody else lost money to compete

with them so it wasn't like they had 20%

market share and got 20% The Profit it

was like they had the best product they

had 150% of the

profit 150% of the profit 20 25% of the

market everybody else lost money to

compete in the space and you know where

did they go remember what happened to

Blackberry what happened to no key uh

Etc eventually they all just went away

Motorola yeah if you recall

so why was I enthusiastic well what I

say uh is the way you make money is when

you see a digital

Trend

um Mo everybody needs

it nobody can stop it but nearly every

body disagrees with

you right it's like if the majority of

people disagree with you they don't

understand it but nobody can stop it but

everybody needs

it that describes

Amazon right you if you go back and read

investment research on Amazon everybody

hated it you know what they say said oh

this is an awful retail company they

don't make any money well they kept not

making any money while they sucked the

entire market up and now there's Amazon

Walmart and everybody else is

bankrupt right 20,000 retail companies

fail you know one or two Amazon you know

Walmart Target kind of are there and

then Amazon runs by everybody it's

because everybody you know who doesn't

want to have everything they want

delivered to their door in one hour for

free who doesn't want that just like

with Google I want to go and I ask a

question I want to answer instantly

quick and I want every book and every

piece of information that human race has

in my fingertips instantly well who

doesn't want that everybody wants that

how about YouTube okay well like it's

everything you want to know for free

instantly everywhere in the

world okay so everybody's eventually

going to need it billions you know there

YouTube videos they got like billion

nine billion views you know on on the

video right so everybody wants it nobody

can stop it but then again everybody

thought it's was a stupid idea right

they they didn't really get it and the

same was true with apple it's like

people just didn't get it like well a

device that basically does everything

you want it to do in your pocket that's

you know a million times more powerful

than the computer in the space

shuttle and uh everybody said well it's

too expensive remember they say it's too

you know

um you could buy Nokia phones for like

$30 and the iPhone came out and it was

$500

and that people made fun of it it's F

it's 10 times as expensive what happened

next well Apple raised the price of

$750 and uh the other phones were 20

bucks and then Apple now sells iPhones

for

$1,500 so Apple keeps raising the price

of the iPhone and all these other cheap

phones went to zero because at the end

of the day the point was it's what

people want right it's just it's just

better they don't want people used to

think oh they just want the cheap thing

just like they'd make fun of Amazon for

this or that but no they don't so those

companies they represent the digital

transformation of retail of

information of relationships they made

fun of Facebook but you know it's like

when four billion people or three

billion people are on a network it's

just so incredibly powerful that you

can't stop the thing these companies are

now more powerful than a lot of

countries a lot of national government

but the key Point i' make is the time to

buy them was when everybody laughed at

you you know back in 2010 to

2012 most people would have laughed at

you you know with regard to Apple you

know they would laugh they would say

well you know it's too expensive and no

Kia's got the market or Motorola or this

or something or they'll never you know

the the the telephone companies will

control the business or they would say

well the stock is too high high so you

should sell the stock because here's the

here's the classic one it was 5% of my

portfolio the stock doubled now it's 10%

of my portfolio but my investor mandate

is I never want to have any stock more

than 5% of my portfolio so every time

Apple doubles you know the Giga brains

sell sell half their position and so

then it doubles again so they sell half

again so then it doubles again so they

sell half again so then it doubles again

so they sell half again so after 10

years they've got little bit of Apple

stock and they bought all of the

computer companies that went

bankrupt and they did it in a risk

adverse fashion and you know again the

key point is

diversification is selling the winner to

buy the

loser and it's it's this common Wall

Street meme or cliche and they probably

teach you in business school and a bunch

of guys in suits they will tell you that

but but all those dudes in suits that

practice

diversification they didn't get rich

because they Diversified they got rich

because they instilled fear uncertainty

and anxiety and a bunch of other people

who then gave them their money and

agreed to pay 2% management fee and give

them 20% of The Upside so if you think

about Classic Hollywood classic Wall

Street masters of the UN

they will manage your money you know

you're a retiree you're a doctor a

dentist you give them your money you

give them your life savings they charge

you 2% a year and then they take 20% of

The Upside and then they tell you that

it's too dangerous for you to own Apple

it's too dangerous to own Bitcoin it's

too dangerous to own Google you can't do

that that's irresponsible so here's what

happens next you give them a million

dollars at two and 20 and if you

actually understand statistics or

financial modeling and then you just

take that million dollars and invest it

in the S&P index and the S&P were to go

up 10% a year they get 4% a year and you

get the other

six which means that you just gave them

40% of your

money you had a million dollars and you

just gave them

$400,000 and you got the other $600,000

back and so if you ask yourself the

question who are the people telling you

diversify it's the people selling you

the Diversified funds or they they hold

themselves out as these brilliant

diversifiers and what they're really

doing is taking all your money right and

uh and on the other hand name a

billionaire that got rich by

diversifying Jeff Bezos didn't get rich

by diversifying Mark zugerberg didn't

get rich by diversifi you know uh Steve

Balmer didn't get rich by diversifi in

you know like Steve jobes didn't get

rich by diversifying pretty much you

know Elon Musk didn't get rich by

diversify right you could go on and on

you know and like let's take even Warren

Buffett you know the most profitable

trade Warren Buffett ever

made Apple he bought Apple

stock and he made more money on they

bought Apple stock 20 years late and or

whatever and they made more money on

Apple than they made on every other

stock investment in the history the

company and they made it in like 5 years

and it was concentrated positioned like

by the dominant mobile company right and

um so I I think that people are misled

and they don't really they don't think

about it much right if every by the way

if you're it's no good to diversify if

everything's correlated for example you

could buy every possible company in

Nigeria but if they're all correlated to

the Nigerian Niara and the current

collapses what good with

diversification so you you you really

have to think about this it's it's like

I I wouldn't say that there aren't

successful people that happen to be

Diversified I would just say that often

times this is a mantra that's that's

brainlessly recited to give people an

excuse to not

think and it's you know it's like well I

got to diversify so I own 37 different

things so that means you don't really

understand any of the 37 things you

own and and I I would Advocate you

should spend a thousand

hours obsessing over each thing you own

and if you're the kind of person that

can spend 5,000 hours and spend a th000

hours on each of five things then you

know good for you maybe you'll end up

owning Apple Amazon Facebook Google

right and then maybe you'll say all four

worked and and that's not so

bad but um you know I just

I'm skeptical of a lot of the other you

know ideas that

circulate and they're just kind of

mindlessly repeated over and over and

over again so coming back to the

question you asked right what happened a

decade ago was a digital transformation

of all those things it was the it was

the digital transformation of

information and uh it created trillions

and trillions of dollars of wealth and

you could have actually made a lot of

money if you jumped on that wave what

you have to do is pick the

winner right there's there's a thousand

digital retail companies there's one

Amazon you don't want the Amazon of

Singapore you don't want the Amazon of

Nigeria you want the Amazon right see

you see I you have to pick that there's

one apple there's one Amazon there's one

Google there's one Facebook if you

picked it there's one Microsoft if you

pick it you win you pick the number

three you probably lose and so that was

a big wave but by 2020 that wasn't that

was still

Unstoppable like the Magnificent 7 has

been an okay investment like if you

bought all those stocks in 2020 you

probably doubled the performance of the

S&P index the S&P index is up like 40

45% if you picked the best five

companies in the index well you double

that performance if you picked the rest

the rest had no return okay so there's

493 or 490 companies that don't return

anything they're all losers there's five

to 10 companies that are the winners and