01:26:04 · Alex Hormozi
[01:26:04] S3: Yeah. I think humans are inherently dissatisfied. Okay. And I think whatever you have, you want what you don't have. And so if you're married, you're like, oh, what what life would be different if I'm single. If you're a parent, you're like, oh, can you remember when we didn't have kids? And when if you don't have kids, you're like, wish I had kids. Yeah. If you're an employee, you're like, man, I wish I had an entrepreneur. And somebody's an entrepreneur, like, man, it would be so nice to just show up and clock out at five Like, we just always we want to make we want the benefits of a trade off without the negatives of the trade off. Sure. Yeah. And so when guys are in the cash flow business, because I'll I'll because I that's who I talk to the majority of the time. Yeah. It's like, what they're thinking about all the time is just like, it's hard to sell this business. Yeah. I'm not really building my net worth. The multiples that I'm gonna get on this aren't gonna necessarily be that high. I'm dealing with people all day. I deal with low skilled labor, and I've got, you know, churn issues or finding techs that aren't gonna show up drunk on the job. Like, there's like, my one of my favorite quotes of all time I've been trying not to cuss on this one, but Go ahead. My CFO was Deep South Texas when we were when we were in Texas when were building gym launch. Suzanne Schifflett, shout out to Suzanne. She was the reason we were able to sell Gem Launch. She's she had been she had been a CFO for four companies from 1 to a 100,000,000 plus, had done a $5,000,000,000 exit, and I think she'd she'd been either buy side or sell side over 20 times. Wow. She was just like she was a like, just so weathered in a good way. Right? And she said, you know what, Alex? She's like, it's all shit. She's like, it's all shit. Every business is shit. It's all shit. And I and it was but it was like, she said it with so much sincerity because I was like at the time, I was like, man, be cool if we
01:27:35 · John Coogan, Alex Hormozi, Jordi Hays
[01:27:35] S0: got this kind of multiple blah blah blah blah. [01:27:36] S3: And she was like, it just doesn't it's it it all sucks. Yeah. And it's just different type of suck, but it all sucks. [01:27:42] S0: Yep. Be satisfied. [01:27:43] S1: We're out of time, but give us a pitch for scale or fail. [01:27:48] S3: If you like seeing entrepreneurs try their absolute hardest and have a completely new paradigm shift in ninety days to scale their business the most, then watch the show. I meet with them for an hour, give them a whole blueprint of what I would do if I bought the business a 100% today, and then they execute and they compete. [01:28:06] S0: I love it. [01:28:06] S1: Amazing. So reminds me of PMF or Die. [01:28:08] S0: Yeah. [01:28:09] S1: We we we experimented with the show last year. So it was like niche audience. Yeah. Yeah. It was like it was like we we we put this team in an apartment in New York. They were not allowed to leave for ninety days until or or until they build a million dollar ARR business. It it it it it descended into chaos. [01:28:28] S0: It was Lord of [01:28:29] S1: the Flood. [01:28:29] S0: Lord the Flood. Flood. Sure. [01:28:31] S1: It's totally crazy. And we were like, we don't have time to do this and this. [01:28:35] S0: It had it had, like, hundreds of people watching at all times. It was actually gripping. [01:28:39] S1: And it was just a livestream of them in the apartment Yeah. Just, like, cooking. [01:28:42] S0: Yeah. It was But one of them got really good at talking to chat. It was a whole thing. And it was sort of opened us up to
01:28:42 · John Coogan, Jordi Hays, Alex Hormozi, John McElhone, Josh Zoffer
[01:28:42] S0: Yeah. It was But one of them got really good at talking to chat. It was a whole thing. And it was sort of opened us up to [01:28:47] S1: live Well, that was a good example because, one of them clearly was, like, a gifted content creator, and the other one was, like, why am I camera? This [01:28:53] S0: is terrible. This is terrible. [01:28:55] S3: Did he become a content creator? [01:28:56] S1: We gotta check-in with him. [01:28:57] S0: Yeah. Gotta check-in with him. He he took vacation. A little [01:29:00] S1: bit after their groups. Needed to, like, disconnect. It was [01:29:03] S0: But yeah. Well, the [01:29:04] S3: last thing [01:29:05] S1: is don't do the show live. [01:29:06] S3: Then people will will actually [01:29:08] S1: go get Edit is is a great episode. [01:29:10] S5: Dude, [01:29:11] S0: hey. Is Jeremy. Thanks for having me. Thank you so much for coming on. Pleasure. Thank you, guys. We'll talk to you soon. Yes. Doctor. Congratulations on everything. [01:29:18] S1: Oh, I appreciate it. Congrats to you guys. Appreciate it. [01:29:21] S0: Well, our next guest is about to join us. I mean, we'll our headphones back on. We have Josh from CIV on his Financial Times argument that data centers are the industrial test of the era. Here he is. [01:29:38] S7: What's guys? [01:29:38] S1: Josh Zaplin. [01:29:39] S0: How are you doing? Welcome, Josh. How are you? Yeah. We're doing great. We were just hanging out talking to Alex Ramosy. How are how is your day going? [01:29:47] S7: It's good. I'm up in San Francisco. I'm actually in the Mercado.
01:29:47 · Josh Zoffer, Jordi Hays, John Coogan
[01:29:47] S7: It's good. I'm up in San Francisco. I'm actually in the Mercado. [01:29:51] S1: Hear that. Right? [01:29:51] S0: Oh, no way. Huge numbers out [01:29:53] S7: of the [01:29:54] S1: cold weather. [01:29:54] S7: I live in LA. So usually, I would I'd love to do this in person. But [01:29:58] S0: Next time. [01:29:59] S7: Up in the beta day. [01:30:00] S0: Next time. Stopping through the cold weather. So take us through the thesis of the latest, piece you put together. I have a bunch of questions, but I'd love for you to sort of, reiterate the thesis statement for the audience first. [01:30:12] S7: Yeah. I mean, the thesis is really kinda three things. [01:30:15] S0: Mhmm. [01:30:16] S7: Point one is we are living through this era where, we are on the losing end of a bunch of supply chain dependencies in areas like rare earths, permanent magnets, critical minerals, and just, you know, manufacturing and industrial capacity more broadly. [01:30:31] S0: Yeah. [01:30:32] S7: And that is a result of choices in part that that we made in the nineteen eighties and nineteen nineties, as well as policies that China undertook to try to pull all of that capacity into China. That now I think everybody [01:30:44] S0: When you say choices we made, is we, the US government, WTO Ascension of China, that choice, or are we talking about choices made by the free market companies just as I'm choosing to buy from China because it's cheaper, and I don't care about my supply chain?
01:30:44 · John Coogan, Josh Zoffer
[01:30:44] S0: When you say choices we made, is we, the US government, WTO Ascension of China, that choice, or are we talking about choices made by the free market companies just as I'm choosing to buy from China because it's cheaper, and I don't care about my supply chain? [01:31:00] S7: I think it's a little bit of both. I would say, you know, starting in the nineteen eighties, we had a big wave of offshoring where we intend companies, large American companies intentionally moved production into places like China because they wanted to move it off balance sheet, take advantage of lower labor costs, lose your environmental regulations abroad. [01:31:19] S0: Mhmm. [01:31:20] S7: And then as well, I think, you know, we didn't do ourselves any favor with, you know, the trade policies Mhmm. That we have pursued over the last, call it, thirty years before we realized what had happened. Mhmm. And so point one is, you know, when you have sort of import you know, systemically important industries and you push them overseas, you know, you never know what's gonna happen. You could find yourselves on the losing end of of really important supply chains and technologies. [01:31:43] S0: Yeah.
01:31:43 · Josh Zoffer
[01:31:43] S7: Point two is, I think, you know, there's a real risk that if we, you know, stop or pause the construction of data centers or make it really hard to do that in The United States, we could find ourselves in a very similar position. Right? That data centers are not just, you know, piles of chips, but there are also important other technologies, power electronics like transformers and switch gear, the kind of stuff that our portfolio company, Giga Energy, makes, as well as, you know, more more basic industrial inputs like steel. And that stuff has to be made somewhere. And today, because of the shortages for a lot of those goods, as well as the fact that, you know, data centers are at the very cutting edge and they're they're financed by some of the deepest pocketed developers on the planet, there's a willingness both to pay for faster, and more advanced technology. And so companies that, you know, like Giga are both able to do some of this stuff in America in a way that wasn't possible or wouldn't be possible without this kind of generational demand pull. And there's also demand for new technologies, things like, you know, optical links or solid state transformers that now there's sort of a transfer The US to get ahead and, again, because there's a source of demand to pay for it all. And then point three is, again, because these are sort of some of the deepest pocketed corporations out there financing all of this, that to the extent there are trade offs in the form of things like higher energy costs that in some cases do arise when data centers are built, that can be solved by having hyperscalers pay for some of that. And so I think there's a better outcome here, one that better advantages or supports America's long term economic competitiveness than just saying, we don't wanna do this here. Let it be done offshore.