Dan, would you also say now,
even in the VC world,
because with technology,
in the advancement,
now entrepreneurs,
they could raise capital,
but now they can delay that process.
They could actually bootstrap
to a certain level of success.
Correct.
Right? And they could grow to a certain point
or maybe they never need capital up to a certain point.
And the VCs now, of course,
they have more and more money.
They're flushed with cash.
So you have this,
almost this gap.
Is this what's creating this interesting kind of phenomenon
where there's just so much capital being available.
That's part of it.
But, and when you look back at the VC private equity,
and especially hedgefund rates of return
the last 10 years,
for the first time,
for example, hedgefunds,
underperformed the market indices.
They underperformed.
Because the...
When you set up a fund,
which I had,
a third go bust, bankrupt,
a third break even
and a third make money.
Out of the entire portfolio. Correct.
Out of the 100 percent.
So you're hoping the third that makes money,
you'll find a Facebook, a Google, an Uber, et cetera.
But of a 100 deals that you look at,
you might invest in two.
And just a fraction of those two
are gonna be those big high performers.
But, there is no shortage of money
because the people with the wealth,
the four or five percent
that control 85 percent of the money on the planet,
don't like the rates of return
that they're getting in the banks,
which are next to nothing.
Yes. Okay?
And so they're going to venture capitals
who allegedly, historically,
have given more rates of return.
So that cash,
as an aside,
for every dollar that you deposit in the bank,
they can lend it out between 20 and 40 times.
I'm gonna say it again.
Between 20 and 40 times
depending on the leverage of their balance sheet.
Okay?
So the velocity of money,
which you don't need to understand,
but the velocity of money is 20 to 40 times greater
than Joe goin' home and putting the money in a can
and burying it in the backyard.
So on top of the cash that we've got,
since the recovery in 2008 and nine,
now we've got banks that are flush with cash,
we've got venture capitalists,
as you've pointed out,
that are flush with cash.
But when the circle turns,
and when the other side of the worm shows up,
you're gonna, you know...
Because we're not,
we're in the longest bull market
in the history of the planet
by about 4 or 5 months now.
When the other side of the bull market comes
and we go into a bear market,
which I don't believe we're in yet.
Yet's the operative word.
You're gonna see,
'cause leverage works both ways.
Leverage works great goin' up,
but it's devastating when it's comin' down.
And the uh,
we'll see that,
but I don't see that for any time
in the near future.
Even if Trump doesn't,
who's changed the financial fabric of the planet,
even if Trump doesn't get re-elected,
he's already changed it.
I see the lending practices in South Africa.
I see the lending practices in mainland Europe.
I seen them in the UK.
I seen them in most of the countries in Asia.
It's changed now and forever more.
And what the kids don't understand
because of political correctness,
is the squeaky wheel gets the grease.
Okay?
It's like in sales,
how many sales calls does it take to make a sale?
Okay?
How many cold calls does it take
to break through the barrier of a watch,
a gate watcher, secretary, assistant, et cetera?
You know?
And when I was doin' it,
it's as many calls as it takes.
Our studies show that it's 17 "no's" to get a "yes",
in one form or another.
Either you can't get through,
they don't answer your email,
they don't answer your LinkedIn message, whatever.
But the persistent guys
and the sales guys that we've talked about,
two or three guys that are pretty good.
They teach resilience and that
thick skin is a gift from God.
Thick skin meaning you can take rejection.
Sally says that I have rhino skin.
Cool rhino skin.
You can't hurt my feelings.
You can call me anything.
Just give me the fuckin' money.
I don't mean give, give.
But I mean, fund my deal.
Yes.
And you've developed a methodology to teach the kids
how to thicken their skin.
Yes.
Thicken their skin.
Yes.
Because most kids,
nobody wants a rejection.
Yeah, nobody likes it.
No, no,
but the kids like it even less
because they saw a parent or a grandparent
go out there and try to be entrepreneurial
and fall on his face.
And that's what resonated with 'em.
It didn't...
The fact, they may have a cousin who went out
and made a lot of money.
And they've got all kinds of excuses
why that cousin went out and made a lot of money.
But the thick skin is a gift from God.
Now you won't even tell somebody,
"Well, I don't like your tie.
Your shoes aren't shined, you know,
who dressed you?"
(chuckling)
Jesus, I mean...
(chuckling)
I've seen people cry, you know,
And it's phenomenal to me,
that how easy, how easily --
They're very overly sensitive.
Yeah.
Overly sensitive. Yeah.
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