If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months. 28 yrs old: Started Prestige Labs. $20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses. 34 yrs old: I became co-owner of https://Skool.com, which is a platform for people to build communities online, making a living doing what they love, with people like them. 36 yrs old: I did a $106M book launch selling 3.6M copies of my $100M Money Models book, in 72 hours, breaking the Guinness world record for the fastest selling non-fiction book of all time.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
The speaker argues that the optimal time to pursue wealth is as young as possible. By leveraging the mathematical power of compounding, higher energy levels, and fewer life constraints, young individuals can achieve disproportionate returns on their investments, skills, and reputation, creating a foundation for lifelong success.
I'm making this for people who want to get rich.
And if that is not you, that is totally fine.
There's no judgment.
You can skip this.
But this is for people who are trying to call it
money max for the short period.
So if you want to max, you have to min,
and you have to be willing to do that for a period of time.
And so I'm going to give you an argument
that I think is very compelling for why you should do it sooner.
And so if you want to get rich,
then you should try and get rich as young as possible.
And I will break down very logical reasons for why.
So number one, first and foremost,
one of the most underrated reasons
is the math behind getting wealthy.
All right.
So money compounds at three to four times
the rate in the beginning as it does later.
Meaning your increase in compounding
on the excess cash you have
in the earlier parts of your career
will outpace the increase in earning power.
And so for example, if you have $1 extra when you're 25,
it might be $90 by the time you're 70, right?
Whereas if that same dollar at 35
would only be a third as much,
and that same dollar at 45 would be a ninth as much, right?
And so the idea is the dollars that you make,
even though they may be smaller by proportion,
when you allow compounding to compound,
actually results in more money later.
Now, my argument there is not that
you must take 100% of your dollars
and put it into the S&P 500.
That's never been my argument.
But that the dollars you do choose to put
into investments of any kind
at an earlier part in your career
do get disproportionate returns.
So that's thing one.
The second thing is that your skills
will also compound disproportionately
that you acquired at a younger age, right?
Like there's a certain amount of repetitions
that are required in order for you to become good.
Bill Gates was able to get those repetitions early
because he started coding early.
And then as a result, he was able to build software first.
And he basically was able to keep
this kind of sustained advantage.
Like I talked to a guy yesterday,
not yesterday, two days ago,
Mehdi, who had $700,000 by the time he was 19, right?
That saved up.
That was very interesting.
Now, imagine that that was a 65 year old guy.
We wouldn't be as impressed, right?
And so time has very real impact
on the scope or scale of your accomplishments
as it relates to your reputation.
Meaning when I was younger and a millionaire early,
it meant a lot more.
And so you actually get more reputational
gravitas, right?
And so you can leverage a smaller win
when you are younger for your reputation
because you are younger, right?
And I'll give you a secret that I only found out later
is that you basically have until you're 30
to be considered young.
The moment I turned 30, I was just a white dude.
Before that, I was a young white dude.
Then I was just white dude.
And then no one cared after that, right?
So in other words, youth is a multiplier
on every win that you have,
whether that be press, network, mentors, capital access.
I just made an investment this last week.
I wrote a $500,000 check to a kid who was 18 years old.
And he had just done $30 million a year
in an e-commerce business
and wanted to develop a tool to help e-commerce stores.
So I was like, I knew he had the avatar.
I knew he'd able to do it.
But the fact that he was 18 and had accomplished that
made me think, okay, this guy's really sharp.
Now he got into my stuff at age 15.
So it took him three years to get there, right?
But in other words, that multiplier decays around 30, right?
But so you have this period of time
where going all in yields higher returns
even for the same outcome.
Now, number three, you leverage early success
into bigger, later success.
So his $30 million business,
obviously everything's different
in terms of what your scale of success is, right?
But you can ladder on top of it.
They're stepping stones.
So for example, me, when I went through the beginning,
it was like I was able to get in shape really early
and I was able to leverage that
into personal training and online training clients,
which I was able to leverage into a gym.
And then from gym, I got into multiple gyms.
And then from multiple gyms, I was able to start GymLaunch.
And so the thing is, is that every part of my career
has been going back and basically taking a stepping stone
on what I learned from the enterprise I did before.
And then obviously the sale of GymLaunch
got basically gave us our cash
for Acquisition.com to start the family office.
And so everything builds on itself.
And so if you're gonna have these steps,
it's like the steps are set.
It's just how soon do you wanna get to this step?
It's just how late you wanna start, right?
So next one is that I'll just rapid fire
some reasons why I think it's better
to get rich while you're young,
which is that you also have more energy, right?
So think about it like this.
You have to play the cards you're dealt.
Getting those repetitions in takes energy.
And I only know this now that I'm almost 40,
which is wild to say,
that I have less energy than I see some 18-year-olds, right?
And so that is a clear advantage that they have.
And so if you have that, then you wanna use it, right?
In addition to that, you have fewer requirements,
meaning there are fewer things that you must do.
You probably don't have kids yet.
You probably aren't wifed up yet or husbanded up yet.
You probably don't have the same level
of geographic dependence.
And so you are more flexible.
You can go to places where learning can occur faster.
You can have fewer strings attached.
You can live for less,
which means you can be more aggressive
with the excess cash that you make
to reinvest in skills or informal investments
because you understand the value
of multiplying and compounding, right?
And again, this geographical flexibility,
I think is wildly underrated.
One of the things that you get the advantage of
when you're younger is that like,
if you wanna be in politics, go to DC.
If you wanna be in finance, go to New York.
If you wanna be an influencer in media, go to LA, right?
Those are great places to learn.
Now, once you become Joe Rogan,
you can move to Austin and do whatever the hell you want,
right?
But the thing is that when you wanna get those reps,
you wanna go where the reps are, right?
You wanna go where the fish are if you're trying to fish.
And what you're fishing for right now
is skills and network, right?
You're trying to get places
and you wanna do it before you have strings tying you down
and roots that you have set.
And that is, again, it's a competitive advantage.
It's not to say that when you're older, you can't do it.
It's just harder, right?
And so if you believe that it's hard for you now
to forego your existing path,
which may have been given to you by your siblings
or society or whatever,
I promise you it will only get harder.
And if you can't do it now,
the likely that you're able to do it later goes down, right?
And for me, I wanna stack bets
where the probabilities are highest for my success.
And whenever you enter a new system, by the way,
this is game theory, the most adaptable player wins.
So it's not, it's like survival of the fittest, right?
And fittest is most adaptable.
And when you are younger, you have the most adaptability.
You have the most neural plasticity
as in you can learn faster.
You have the most energy so you can do repetitions.
You have the least geographical constraints.
You can move to where the action is.
When you do earn, you make more dollars
on each dollar you make.
All the skills you acquire compound with time
because you only get better at it.
The accomplishments that you get from being young
mean more because you are young
than they do when they're old.
And so the final point that I'll say is this,
is that you want to model success, not the exceptions.
Of course, we wanna tell the story of Colonel Sanders
who started, you know, Colonel Sanders when he's 63.
And there's a bunch of, you know,
other kind of call it exception stories
of people who are older and then started companies.
And then obviously were really successful.
But like, wouldn't it be better to be the rule
than the exception?
Like the richest people often got rich
when they were young because they decided to.
And I will say this,
because I love this quote from James Clear,
but the thing that separates winners and losers
is not their goals.
People's goals are the same.
The difference between the people who win and lose
is the actions they take as a result.
And the risk that they're willing to tolerate
and the pain that they're willing to endure
for extended periods of time with an uncertain payoff.
And so if you think that you need certainty
in order to move forward,
I promise you that this world will never give it to you.
And so it's really that there will always be uncertain.
And at some point you grow the cojones,
the gonads, by the way, that's bisexual or unisex.
Everybody's got gonads.
You will grow the gonads or they will drop
or whatever it is.
I told you I was gonna do some HR stuff.
You will grow the nads you need to take the bets.
And so I think what really happens
is that at some point you realize
that you're not gonna die if you fail.
You will just learn and you will get better,
which is the point of the process.
And you will never finish and you will never actually win
because by the time you win,
you will have already planted a much bigger goal
that you want because the goal that you had
came in shooting distance.
The easiest analogy I can say for this is this.
When I wanted to bench 315, for example,
I was a dream of mine when I was in high school
because I remember that just one big plate
was wow, the strong kids could do a full plate.
And then two plates was super strong.
Three plates was crazy.
By the time I benched 315, I knew I was gonna hit 315
because I had done 275 for five
and I did 295 for a tripler instead of five.
And so 315 seemed obvious.
And so the thing is that by the time you accomplish goals,
goals themselves seem less meaningful
because you already did the work
to make that goal reasonable,
which is why you achieved it,
which is why you have to do so much work
that is unreasonable that you do not become successful.
And the best way to do that is to start when you're younger
for all the reasons I just gave.
All right, that's why you should succeed while you're young.
That's why you should ignore the people
who are telling you, who don't have what you want,
telling you how to get something that they've never gotten.
If you like this video and you're a business owner
who wants to break through your current revenue ceiling,
I distilled every lesson from scaling 10 businesses
past 10 million and three businesses past 100 million
into a completely free scaling roadmap
that I've used to go from zero to one,
zero to 10 and zero to 100 plus.
And so you can click here and you can check it out.
Again, absolutely free.
And since you're a business owner,
appreciate you and enjoy.