4 Unfair Tricks The Super Rich Abuse

Summary

This video script reveals the underhanded tactics the super rich use to protect and increase their wealth, offering an insider's view on strategies employed by ultra achievers. It discusses creating no-lose situations, leveraging legal and financial representation, and the importance of staying within one's circle of competence. The speaker shares personal experiences and examples of well-known figures like Richard Branson, Jeff Bezos, and Elon Musk to illustrate how the wealthy manipulate systems to their advantage, challenging viewers' perceptions of fairness and success.

Takeaways

• 😠 The super rich often use despicable, unjust, and indecent tricks to protect and increase their wealth and gain a competitive advantage.
• 💡 The speaker shares personal experiences and insights into the strategies used by ultra-achievers, including those they personally employ.
• 🎯 The first strategy discussed is creating 'no lose' situations, such as hedging in trading or structured deals that minimize personal risk.
• 🌐 Examples of no lose situations include Richard Branson's agreement with Boeing for Virgin Atlantic and Jeff Bezos leveraging tax breaks for Amazon distribution centers.
• 🤵 Surrounding oneself with the right representation, including lawyers, accountants, and PR consultants, is crucial for bending or navigating legal and financial systems.
• 📚 The power of legal representation is exemplified by Elon Musk's strategy to renegotiate Twitter's real estate leases and the use of litigation as a tool by the wealthy.
• 💼 Accountants play a vital role in minimizing tax liabilities through complex corporate structures and offshore registrations, effectively reducing tax bills to zero.
• 🎭 The importance of good PR is highlighted by the ability to rehabilitate public figures with tarnished images, such as Mark Wahlberg and Mike Tyson.
• 💳 The wealthy have access to various financial strategies, including using credit cards to subsidize first-class flights and other perks for themselves and their teams.
• 💼 The super rich often have access to cheaper money than the average person, utilizing debt instruments and strategies that minimize tax liabilities, like Apple's approach to financing.
• 🔄 The importance of staying within one's 'circle of competence' is emphasized, as diversifying into unfamiliar industries can lead to failure, as seen with Google Glasses and Apple's electric car project.
• 🚀 To achieve success, one should focus on mastering a single skill or business, then replicate that success in adjacent areas, as demonstrated by Warren Buffett's investment strategy.

Q & A

What is the main theme of the video script?

The main theme of the video script is to reveal the tactics and strategies used by the ultra-rich to protect their wealth, gain more of it, and gain a competitive advantage over others.

What is the first strategy mentioned in the video script for creating a no-lose situation?

The first strategy is creating no-lose, rigged situations where deals or enterprises are set up to ensure a win, such as hedging in trading to minimize risk of upward and downward movements.

Can you provide an example of a no-lose situation from the script involving Richard Branson?

Yes, Richard Branson structured an agreement with Boeing for Virgin Atlantic where he could return each leased aircraft if the venture didn't succeed, essentially transferring the risk to Boeing.

What is the role of lawyers according to the video script?

Lawyers play a crucial role in bending the rules in favor of the ultra-rich, helping them navigate the legal system to their advantage, and sometimes using litigation as a weapon against others.

How did Elon Musk utilize legal representation to his advantage as mentioned in the script?

Elon Musk employed a legal strategy to withhold rent from landlords until they agreed to a rent reduction, leveraging his financial power to avoid litigation.

What is the significance of accountants in the financial strategies of the ultra-rich?

Accountants are vital for the ultra-rich as they can use complex corporate and offshore structures, tax planning, and wealth management to significantly reduce tax liabilities.

Why are public relations consultants important for the ultra-rich as per the video script?

Public relations consultants are important for the ultra-rich because they can manage and rehabilitate their public image, making negative information about them disappear.

What is the concept of 'staying in your own lane' as discussed in the video script?

The concept of 'staying in your own lane' refers to focusing on one's domain and skill set, and not venturing into industries or businesses outside of one's expertise, to avoid failure or subpar performance.

How does Warren Buffett's investment strategy relate to the concept of 'staying in your own lane'?

Warren Buffett's investment strategy is an example of 'staying in your own lane' as he invests within his circle of competence, primarily in consumer goods and insurance industries, where he can apply and refine the same strategies repeatedly.

What is the importance of picking the right business model for the right career stage as mentioned in the script?

Picking the right business model for the right career stage is crucial as it ensures that the individual's capital and skill set are appropriately matched with the business requirements, leading to better chances of success.

Why do the ultra-rich have access to cheaper money than the average person?

The ultra-rich have access to cheaper money due to various strategies such as borrowing money at lower interest rates, using debt instruments like bonds, and leveraging their wealth and power for financial benefits.

Outlines

00:00

💰 Unveiling the Wealth-Protection Strategies of the Ultra-Rich

The speaker begins by warning viewers that the video will expose the underhanded tactics used by the super rich to protect and increase their wealth, which may be unsettling. These tactics include creating no-lose situations, leveraging legal loopholes, and using their influence to gain advantages. The speaker shares personal experiences and insights, stating that these are not just stories about the likes of Bill Gates or Warren Buffet, but rather common practices among ultra-achievers, including the speaker's own circle. The first strategy discussed is creating rigged situations, exemplified by Richard Branson's deal with Boeing for Virgin Atlantic, which allowed him to return leased aircraft if the venture failed, and Jeff Bezos leveraging state incentives for Amazon distribution centers. The speaker emphasizes the importance of understanding these strategies for those who wish to emulate such success.

05:01

📚 The Power of Legal and Financial Representation for the Wealthy

This paragraph delves into the importance of having the right representation, including lawyers, accountants, and PR consultants, for the ultra-wealthy. The speaker illustrates how powerful legal strategies can be used to negotiate favorable terms, as seen in Elon Musk's rent withholding tactic with Twitter landlords. It also touches on the use of litigation as a weapon by the rich to silence critics through 'slap suits'. Accountants are highlighted for their ability to minimize tax liabilities through complex financial maneuvers, while PR consultants are praised for their capacity to erase negative publicity. The speaker uses Donald Trump as a case study to demonstrate the effectiveness of strong legal and financial teams in protecting wealth and reputation.

10:03

🛒 The Financial Maneuverings of the Super Rich and Competitive Edge Building

The final paragraph discusses the financial strategies employed by the super rich, such as using credit wisely to subsidize luxury lifestyles at others' expense, and leveraging debt instruments like David Bowie's bond to secure funds. It emphasizes the importance of staying within one's circle of competence, as demonstrated by Warren Buffett's focused investment strategy. The speaker shares personal business experiences, including a venture into eyewear after an initial failure in clothing, to underscore the value of sticking to one's strengths. The paragraph concludes with advice to find a niche, excel in it, and then expand using the same skill set, cautioning against overextension beyond one's area of expertise.

Keywords

💡Despicable

Despicable refers to something that is morally reprehensible or contemptible. In the context of the video, it is used to describe the tactics used by the super-rich that the speaker finds ethically questionable. The term sets a tone of disapproval for the practices that are revealed in the video.

💡Unjust

Unjust means not fair or equitable. The video discusses how the super-rich employ tactics that are unjust to the average person, such as leveraging their wealth and power to create advantageous situations that are not available to others, exemplified by the mention of tax breaks and incentives for building businesses.

💡Indecent

Indecent implies a lack of propriety or morality. The term is used to emphasize the speaker's view that the methods used by the ultra-wealthy to protect and increase their wealth are not only unfair but also morally wrong, as they often involve exploiting loopholes or bending rules.

💡Competitive Advantage

Competitive advantage refers to an attribute that enables an entity to outperform its competitors. The video suggests that the super-rich have a competitive advantage over others due to the unique strategies they employ, such as creating no-lose situations and leveraging legal and financial expertise.

💡No-Lose Situations

A no-lose situation is one where an individual or entity cannot lose, only win. The video describes how the ultra-rich often structure deals to ensure they are in a position to only benefit, regardless of the outcome, as illustrated by Richard Branson's agreement with Boeing for Virgin Atlantic.

💡Hedging

Hedging is a financial strategy to reduce risk by taking an investment position that offsets potential losses. The script mentions hedging in the context of trading, where the super-rich use options contracts and swaps to minimize risk, which is a form of creating no-lose situations.

💡Accountants

Accountants are professionals who manage financial records and ensure compliance with tax laws. The video highlights the importance of accountants for the super-rich in minimizing tax liabilities through complex financial strategies, such as offshore structures and accelerated depreciation.

💡Public Relations Consultants

Public relations consultants are professionals who manage an individual's or company's public image. The script points out that good PR can rehabilitate public figures with negative histories, making them beloved by the public again, as seen with the examples of Mark Wahlberg and Mike Tyson.

💡Credit Card Subsidies

Credit card subsidies refer to the practice where some consumers indirectly pay for the benefits enjoyed by others. The video explains that when people use credit cards that offer rewards or cash back, they are essentially subsidizing the purchases of others, as stores have to pay higher transaction rates for these cards.

💡Circle of Competence

The circle of competence is a concept where one focuses on areas where they have knowledge and expertise. The video uses Warren Buffett as an example, who invests in industries he understands, allowing him to identify and implement effective strategies repeatedly.

💡Productize

To productize means to turn a service or concept into a product that can be sold. The video encourages viewers to find what they do well, turn it into a product, and then market it effectively. This is part of the advice given on how to build a successful business based on one's strengths.

💡Shiny Object Syndrome

Shiny object syndrome is a term used to describe the tendency to be distracted by new and exciting ventures without fully committing to one's current projects. The speaker admits to experiencing this syndrome when he ventured into the clothing industry, which did not yield immediate results as he had expected.

Highlights

The video reveals the tactics used by the super rich to protect and increase their wealth, which may be unsettling for some viewers.

The presenter shares personal experiences and insights into the strategies of the ultra-wealthy, which he and his associates utilize.

Creating 'no lose' situations through deals and enterprises that are rigged in favor of the wealthy.

The use of hedging in trading to minimize risk, exemplified by Richard Branson's agreement with Boeing for Virgin Atlantic.

Jeff Bezos leveraging tax breaks and incentives from state legislators for Amazon distribution centers.

The asymmetry in agreements that favor big businesses over consumers, often due to ignorance or lack of awareness.

The importance of having a great lawyer to navigate and exploit legal loopholes for the benefit of the wealthy.

Elon Musk's legal strategy to renegotiate Twitter's real estate leases by withholding rent until landlords agreed to terms.

The use of litigation as a tool by the rich to intimidate and silence critics through 'slap suits'.

Accountants' role in minimizing tax liabilities through offshore structures and tax planning for the ultra-wealthy.

The power of public relations in rehabilitating the image of celebrities who have committed crimes.

Donald Trump's mastery of legal representation to avoid significant prosecution despite a lifetime of controversies.

How the use of credit cards indirectly subsidizes the wealthy through higher transaction rates for stores.

The super-rich's access to cheaper money and debt instruments, such as David Bowie's issuance of a bond for future royalties.

The importance of staying within one's 'circle of competence' to maintain a competitive edge in business.

The pitfalls of diversifying into industries outside of one's expertise, as illustrated by Google Glass and Apple's electric car project.

The presenter's advice on finding and excelling in one's niche before expanding into new ventures.

The necessity of choosing the right business model that aligns with one's career stage for success.

Transcripts

I'm just giving you a fair warning

you're probably not going to like this

video because in the next few minutes

you're going to find out the Despicable

unjust and outright indecent tricks that

the super rich use every day to protect

their money get more of it and get a

competitive advantage over everyone else

and I'll be honest this video might be

triggering for a lot of people because

when you understand how the real world

works and that the rules that apply to

you are not the rules that apply to the

ultra Rich it's going to change your

worldview now before you think that this

just about Gates and the buffets it's

not these are tricks that I use myself

it's the tricks that my friends use the

people that I hang out with my business

partners my business associates it's the

universal language and it's the

universal Playbook of those that are

Ultra Achievers because listen at the

end day we don't make the rules we just

play Within them now you're probably

asking why am I telling you this because

quite frankly I had no one to teach me

this growing up I never met my real

father my stepdad cut off me and my mom

when I was 11 years old and quite

frankly he was never really around I

don't think he really cared that much so

from a young age I had to learn what all

of this stuff meant and it's funny

growing up before IID ever actually made

anything out of my life I always used to

think to myself there's no Playbook on

how to be rich there's no like guide or

do this do that in today's video I want

to give you some Concepts that have been

the most useful to me in my journey and

then when I look around at some of my

business partners and some of my

entrepreneurial friends that they

implore the same tactics so here are the

four strategies that you need to

understand the first trick I see time

and time again is creating no lose

rigged situations and what I mean by

that is you set up a deal or an

Enterprise where your only option is to

win now in the world of trading this

means hedging which involves option

contracts as well as swaps to minimize

the risk of both upward and downward

movement in the direction against your

bet but that's just standard practice

the more unjust situations I see every

day are far more creative and lucrative

and for me one of my favorite examples

reading about growing up was a story

that lies with Richard Branson now I'm

not going to say that rich and Branson

is God's gift to business but when he

first started Virgin Atlantic he pulled

off one of the greatest deals and I

remember reading about this when I was

younger where he actually structured an

agreement with Boeing where he could

return each one of the aircraft that he

leased if his new Venture didn't succeed

and you know there's a very prolific

saying that if you want to become a

millionaire be a billionaire and then

buy in an airline so getting into the

airline business definitely doesn't have

the strongest track record when it comes

to building someone's wealth and being a

profitable Venture but he managed to

create a no lose rigged situation this

meant that he was able to purchase the

aircraft essentially risk-free dumping

all of that risk onto Boeing and you see

this kind of asymmetry being leveraged

by big businesses all the time another

great example to look at is Jeff Bezos

when he was looking to build a new

Amazon distribution center he had state

legislators lining up to offer a massive

range of tax breaks and incentives just

for him to break ground into their state

it's a perverse State of Affairs but

somehow governments are content with

taking money from normal people and

giving it to the super wealthy and by

the way if you think that you're safe

from this I urge you to read the

hundreds of terms and conditions that

you've signed up to in the past 12

months alone each one of these contains

a wide variety of waivers essentially

freeing the company you're doing

business with from liabilities or class

action law La suits so they leverage

their power and Monopoly and frankly

most people's ignorance and stupidity to

completely rewrite the rule book in

their own favor now I will admit at this

point that this sort of asymmetry is

easier with wealth power and leverage

since 2000 taxpayers in the USA have

contributed 4.3 billion to the

construction of NFL stadiums because

when they're built they bring jobs

investment and boost the local economy

or that's what they say but the point is

it's unlikely that a normal person is

going to be able to do the same thing so

I'm not saying that you ask for tax

breaks from the government and hopefully

it starts you thinking how you can get

more from situations strategically and

start devising situations and

circumstances where you have the most

advantageous seat possible and to be

honest 99% of the time the other party

doesn't even realize this is the case

now of course in order to do all of this

it helps to have a great lawyer and that

brings us onto our second point you want

to surround yourself with the right

representation if you've ever watched an

episode of Suits which which I loved

growing up and wondered why they get

paid so much wait until you realize that

for the ultra wealthy these guys

literally bend the rules of physics and

let me explain what I mean by this

there's law and then there's law in

practice you see 99% of drivers break

the speed limit every day so technically

they're breaking the law but most people

are only unlucky enough to get caught

speeding a few times in their life you

see that's law in practice and this

divide is where the very best lawyers

make their clients fortunes you could

use an example like when Elon Musk

bought Twitter you see the company was

stuck with Hefty leases on Prime real

estate in San Francisco now with an

absolute Powerhouse of a lawyer he

employed a strategy where he essentially

withheld rent from his landlords until

they agreed to his demand of a reduction

in rent because the landlord simply

could not afford to litigate the case in

court whereas musk could it was

basically a war of attrition this was a

calculated risk voided by a

comprehensive legal strategy now others

utilize litigation as a sword not a

shield now by this I mean that the rich

can afford to go to court you can't that

means if you ever say anything negative

or defamatory about someone you're going

to be bombarded with enough litigation

to bankrupt you before you even get to

court now these are known as slap suits

you can look them up and as illegal as

they are they're still deployed

constantly with terrifying frequency

next there's accountants and it's funny

people always ask me what I would do if

I hadn't followed this journey in life

and honestly I would have been a tax

adviser complicated corporate structures

offshore structures tax planning wealth

management and accountants are the

highest Roi investment that a business

can make because they can take a

business with a huge tax liability

register it offshore engage in

accelerated depreciation and loss

harvesting bringing their bill down to

zero all while rewarding the CEO with

stock options instead of a traditional

salary and then finally there's public

relations Consultants Mark Walberg Mike

Tyson Robert Downey Jor every single one

of these celebrities has committed some

terrible crime but you've either not

heard about it or you've just forgotten

about it and that is the power of good

PR a good publicist can make any

negative information about you disappear

and rehabilitate even the most horrible

public figures into beloved celebrities

and if you want to see the ultimate

embodiment of legal representation in

practice just look at Donald Trump

listen love him hate him I don't care he

is a mastermind at employing Council you

know in his 60-year long career he's

burned through lawyer after lawyer

accountant after accountant press

advisor after press advisor and despite

a lifetime of misdeeds it's taken him

until the age of 79 to face any

significant prosecution and prior to his

presidential campaign he'd managed to

Breeze through Decades of dodgy deals

multiple bankruptcies divorces and other

scandals with his wealth intact and

still a very good reputation and even

now despite a literal Insurrection he's

facing no more than than what fraud

charges the people around him though

they're screwed his own lawyer was

declared bankrupt after being ordered to

pay

$148 million in defamation charges

listen Trump's a very smart man Trump's

going nowhere now I hate to be the one

to break it to you I really do but today

you subsidize some other Rich guys first

class flight not by buying a ticket in

economy class or buying something on

Amazon but by using a credit card and

failing to pay late you've essentially

subsidized the purchase of someone else

using an AMX or other credit card stores

have to pay a higher transaction rate

for these cards but they don't charge

these customers anymore meanwhile the

people using these cards are recuring

rewards points or cash back and listen I

use this myself I have multiple black

cards and different currencies and

anytime that I'm flying commercial all

of my team that's flying with me always

gets free upgrades so my team flies All

Around the World in business class 95%

of the time and for me it cost me

absolutely nothing and the same approach

to money is reflected across the super

wealthy the cliche as you know of course

is to make your money work for you and

not the other way around but the reality

is is that the super rich have a

thousand different strategies to get

access to their money than you do and

let me ask you this why does Apple which

has billions in the bank they have such

a massive cash Reserve why do they

routinely borrow money it's not because

they needed to but because it was

literally cheaper to loan the money and

pay the interest then repatriate the

money from other countries and pay tax

on when they employed the strategy it

took their tax liability from 35% to

0.84% abroad and this approach to

financing means that the super rich get

free money and essentially cheaper money

than you and these guys also have access

to another form of money not credit but

debt you see in 1997 the artist David

Bowie needed money to buy the rights to

his music from his partner so he issued

a Bowie bond which was a debt instrument

which allowed investors to buy into his

future royalties for the next 10 years

now there was a US insurance company

that took advantage of this and bought

the bonds for $55 million next the super

rich are constantly building their

Competitive Edge one of the hardest

lessons that I've had to learn in my own

journey is the importance of staying in

My Own Lane now I'll be honest most

things I've turned my attention to in

business have been massive successes

that's not a boast by the way I just did

things in the right order I had the

right businesses at the right career

timing I wasn't trying to run before I

could walk my first business in agency

was extreme simple and it was a cash

flow business now after some of my

initial success I tried to Parlay this

into an entirely different industry and

I'll always be very honest with you when

it comes to my failures or challenges

and the one I'll be upfront about is

gadgy which was initially a clothing

line and has now turned into an eyewear

business for the last 4 years you know I

went into that business with massive

naivity as well as shiny object syndrome

thinking that it would take as little

time as my agency would and show similar

results but to put it bluntly it didn't

and then eventually 4 years years ago I

moved away from clothing moved it into

eyewear the business has been massively

successful a multi7 figure year business

in profit by the way and I recently just

sold a massive share to my business

partner who actually exited his eyewear

business 7 years ago for hundreds of

millions of dollars the point is just

cuz you're successful in one industry

doesn't mean you're going to be

successful in the other so the

businesses I've had since then they all

fall under my domain and skill set

Warren Buffett is famous for investing

in businesses that fall within what he

calls his circle of competence he works

in the consumer goods and insurance

Industries because he understands them

and he can identify the same issues and

implement the same strategies over and

over again refining them each time and

if they ever do work in other spheres

they Leverage The talents and knowledge

from the one that they are most

comfortable in failing to do this will

always lead to hysterical results and by

the way I'm not just going to tell you

the story to distract you from my own

Venture into eyewear but does anyone

actually remember Google glasses they

were brought out to massive Fanfare only

to be shelved 6 months later even just

look at Apple they fell prey to shutting

down the electric car project that they

had invested hundreds of millions of

dollars into so if you're ever wondering

how you can implement this in your own

life you need to listen to what I've

been preaching for years find the one

thing you do well do it better than

anyone else productize it and then sell

the hell out of it and once you have

done this apply the exact same skill set

to your next Endeavor and just remember

you always want to find the right

opportunity for your career stage you

don't want to get into a business that

involves 10 out of 10 Capital as in

money you need to put in and 10 out of

10 skill set if you're just the

beginning of your journey and honestly

if I really had to pinpoint one of the

things that have made me the most

successful today it's that exactly right

there always picking the right business

model for the right stage of my career

so on that note I hope you guys enjoyed

today's video and as always I'm watching

from afar and I'm rooting for you but