The Prof G Pod with Scott Galloway
00:15:36 · Scott Galloway
The place I've violated is I own a lot of real estate, but I own it in different regions. I don't have a lot of leverage on it. You can survive a lack of or less diversification without a lot of leverage. If you don't have leverage, it's the way you get caught, the way dumb people go broke, excuse me, the way smart people go broke is through leverage. And that is real estate goes up and down and you may have had real estate in Florida, which ended up being an amazing investment. But in 2008, if you borrowed 80% against your condo and you weren't renting it out, you had to give it back to the bank because it declined. It got caught in value by half or 60%. Now it came ripping back and it's probably up three or five X since then. But with leverage, you couldn't hold on. And without leverage, you can hold on. Anyways, I do have a lot of real estate, but I do it in different regions. I do think diversification is really important. If you're kind of over the age of 40, have some assets, you do really want to think hard about diversifying. And it's not only just the S and P. You think, I'm diversified. I'm an SPY. Actually 40% of the S and P isn't just 10 stocks. So that's not diversification. So I suggest diversifying by asset type, real estate, bonds, stocks. And also where people miss is geography. Now the last kind of seventeen, eighteen years have been an American disco party. And that is nothing has performed like The US because of tech and AI. I still think you need to own some stocks in Asia or own some low cost index funds in Asia and in Europe. That's how you stay rich. And that is diversification is your Kevlar. You can get shot in the chest. And I've been shot in the chest a couple times with companies I started that went out of business, and it has been fatal for me financially. Whereas now when the markets go down... The markets were down, I think, in 2022 pretty substantially or 2023. It hurts, but I get shot in the chest, but I'm wearing Kevlar and I kinda am on the ground and then I can get up again. That's your Kevlar's diversification. So again, but the learning here is diversification not only across asset classes, but also across geographies. You probably give up some upside. It's great to be lucky. You'll hear about people who went, you know, all in Nvidia, good for them.
00:17:55 · Scott Galloway
But what you don't hear about is just a nightmare when you spend too much of your, you spend everything on tech because that's the future and tech was the future. But that doesn't mean it goes through Amazon and Cisco lost 90 plus percent of their value from 1999 to 2001. Can you imagine the mental strain? Oh, Amazon's going to the moon. I'm putting in all $100,000 in my 04/2001 k in Amazon and you wake up and it's worth $7,000 So, low cost index funds diversified across asset classes and across geographies. Appreciate the question.
00:18:28 · Scott Galloway
[00:18:28] S0: We'll be right back after a quick break. Support for the show comes from BetterHelp. You've heard me say before how useful talk therapy can be when working through a hard problem and that BetterHelp has been a great option for a lot of people. But at the end of the day, the best way to know if BetterHelp is a good fit for you is to check it out yourself. More than 6,000,000 people have used BetterHelp globally. The consistent feedback from real users makes it easy to see why many people continue to choose the platform. BetterHelp reports on average live therapy sessions rating 4.9 out of five based on over 1,700,000 client session reviews. BetterHelp therapists have at least three years and a thousand hours of hands on experience. They also hold all required education, training, and certifications across a range of mental health specialties. And they make it easy to get started. You just have to answer a few questions, then get matched with a therapist based on your needs. And you can switch therapists at any time if it's not the right fit. See the reviews, see what stands out, and see if BetterHelp is right for you. Visit betterhelp.com/propg. That's Better, h e l p, dot com slash Prop G.
00:19:37 · S3
[00:19:37] S3: Are you tired of hearing about business, tech, and finance from the Bros? We are the Tiger Sisters, a top business podcast with the Vox Media Podcast Network. Tiger Sisters releases every Monday, and we decode money, power, and love. And who doesn't love all those things? We are the Internet's Wall Street and Silicon Valley big sisters. Tune in every Monday for late night sister talk meets boardroom strategy. Check out Tiger Sisters on YouTube, Spotify, or wherever you get your podcasts. Welcome to the Tiger fam.
00:20:08 · Scott Galloway, Scott Galloway
[00:20:08] S0: Support for the show comes from Vanta. As AI adoption grows, so do your company's security risks and requirements. New frameworks, audits, and vendors keep rolling on, but your team isn't getting any bigger. Most compliance tools promise automation, but you're really stuck doing all the work by hand, chasing screenshots, validating controls, and playing catch up when audit season comes around again. Vanta works differently. Their agentic trust platform is built to scale with you, not slow you down. With over 1,400 automated tests across more than 400 integrations, Vanta collects evidence and monitors your controls year round. You can cut your audit prep by 82%. Plus, you can access the Vanta agent everywhere you work, whether your team is in Vanta every day or living in tools like Claude or Cursor. They work around the clock from full program context, so nothing slips through the cracks. The numbers back it up. Vanta delivers a 526% ROI over three years and pays for itself in just three months. Over 16,000 fast growing companies like Ramp, Ryder, and Harvey save time and resources while scaling fast with Vanta. Learn more at vanta.com/propg and get a thousand dollars off. That's vanta.com/propg for a thousand off. [00:21:19] S1: Welcome back. Question number three.
00:21:19 · Scott Galloway, Ruth, Scott Galloway
[00:21:19] S1: Welcome back. Question number three. [00:21:22] S4: Hi, Scott. This is Ruth from Auckland, New Zealand. I've got a question about who wins the enterprise layer and really a question about whether we should be discussing SaaSpocalypse again. With OpenAI's release of Dots which can interact with I think 4,000 applications, it's clearly going after the enterprise market. With these LLMs getting towards enterprise, what's this going to mean for the incumbents? Thinking about the S and P 500, who are the incumbent technology companies that are most at risk as the LLMs look to control or dominate an enterprise? Thanks. [00:21:58] S1: Well that's sort of the question in tech. So what Ruth is referring to, last week OpenAI launched DOTS, AI agents that run around the clock and can work on their own across more than 4,000 apps. OpenAI is piloting them inside companies for procurement, invoice processing, customer support and contracts. What is the SaaS apocalypse? And just a brief refresher, the term SaaS apocalypse, SaaS meaning software as a service, refers to a major stock sell off earlier this year that erased nearly 1,000,000,000,000 in software value by early February and perhaps as much as 2,000,000,000,000 in the weeks after. For context, Thomson Reuters fell 15%, LegalZoom nearly 20%, Salesforce, Adobe, and ServiceNow each fell 7%. [00:22:41] S0: I don't know