AZ Tech Roundtable 2.0

Wealth for Life – Own a Business, the Best Asset to Grow Wealth

BRT S04 EP06 (168) 2-5-2023

 

Things We Learned This Week

•          Wealthy use Different Strategies – how they approach investing, business, opportunities, tax strategy

•          You’re not going to get rich investing in stock, if you have a $50k / year salary, not saving & investing enough $

•          Wealthy own Assets, Business, Real Estate, Stocks

•          Tax Strategy needed when you Earn $250K +, more income, more taxes

•          Loans – using leverage is the key to Tax Free Income – put more $ money into investments

•           Offense / Defense – segment Assets into categories, create income from Assets

 

 

 

 

Co-Host: Denver Nowicz, President - Wealth For Life

https://wealthforlife.net/brt/

https://twitter.com/denvernowicz 

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.

 

 

 

Notes

Seg. 1

You get paid for the value you provide, the perceived value Tony Robbins quote.

If you think the wealthy use different strategies than the average person, you are correct.

You’re not going to get rich investing in stocks on a $50,000 a year salary. Not investing enough $. When you earn W-2 income, you pay income taxes. So if you make $50,000 you are in a 22% income tax bracket, and the money you take home is 39,000. 

Income tax was created in 1913 with the 16th amendment. Rates have varied over the last hundred plus years being the highest during World War II and getting reformed in 1986. 

Here is the link to the current tax brackets - https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets

 

If you earn $50,000 a year, that breaks down to $1,000 / week, and a little over $4,000 / month. If you want to earn $100,000 a year you need to make $50 / hour, and $2,000 / week, and a little over $8,000 / month. 

Do you want to earn $500,000 / year, then you need to make $250 / hour, or $1 million / year you need to make $500 / hour, $20,000 / week, and $83,000 / month.

When you look though at what rich people do, they are often not making their money based on income alone. Often income is just a small portion of it. Most people grow wealth by owning assets, real estate, or building businesses.

If you look at the Forbes list of billionaires someone like Jeff Bezos of Amazon who is worth $170 billion, does not pay himself an income of $1 billion a year. 

https://en.wikipedia.org/wiki/List_of_wealthiest_Americans_by_net_worth

   

He also does not have $170 billion sitting in a bank account. Jeff Bezos salary was usually under $2 million a year, and the majority of his wealth is based on the valuation of his Amazon stock.

Currently he owns about 10% of Amazon, with a valuation of about $100 billion. Jeff Bezos net worth just like the stock price of Amazon could fluctuate based on the valuation. 

Jeff Bezos owns multiple assets like the Amazon stock, real estate, etc. What happens is wealthy people buy assets at one valuation, and then over time are able to grow the asset and make more income off of it, while it appreciates. 

When they want to get money, typically they will use loans vs not paying themselves a high salary. If you get a loan for $1 billion with an interest rate of 3%, cost you $30 million.

Guy like Jeff Bezos that’s .01% of his wealth. If he were to pay himself 1 billion in a salary, he would then have $370 million in taxes to pay. 3% loan at $30 mil is a lot less than a 37% tax rate - makes a difference of $340 million. The collateral for that loan is his Amazon stock. This is how the wealthy are able to operate without paying a lot of income taxes. 

If someone owns a real estate property valued at millions. They can do a cash-out refinance and take the money tax free. Then the real estate property pays back the loan through rental income from the tenants. Study how the wealthy and billionaires operate to learn these tips and strategies.

 

ProPublica article - https://www.propublica.org/article/billionaires-tax-avoidance-techniques-irs-files

 

Market Cap of Amazon and large companies

https://en.wikipedia.org/wiki/List_of_public_corporations_by_market_capitalization 

 

Seg. 2

People working in their 30s 40s or 50s are in the accumulation phase. They are investing in stocks and hoping everything just goes up in value. Stocks are considered appreciating assets that go up in value over time, but typically do not give off cash or income in the interim.

You want to look to accumulate harvesting assets, so you can take profits along the way. Take money off the table. Harvesting assets like real estate or businesses or an active strategy where you have to do work along the way. 

Owning stocks is a passive strategy, you do not really control the outcome. 99% of financial advice typically is to buy stocks. Stocks are easily accessible, liquid and you can buy and sell them with no problem.

The top 1%, the wealthy, typically own businesses and real estate. Stocks are a paper asset that you want to buy low and sell high. To build financial stability you need income streams, you need assets that go up, and you need to have a tax strategy.

Cash is an asset that typically is depreciating overtime. But there is power of having cash on hand so you can take advantage of buying opportunities. You have to be tactical and how you use cash. 

Instead of just keeping the cash in the bank, you could buy treasury is at a 4% return which are easy to sell if you need to get money for a buying opportunity. This is a bond strategy with liquidity.

It is more work to have active investing strategies. Important to have a team of advisers helping. There’s an irony in a fiduciary standard, as the industry is biased to stocks and this is not the only way to build wealth.

Assets Show:

https://brt-show.libsyn.com/brt-s03-ep26-125-6-17-2022-wealth-for-life-topic-assets-appreciating-vs-harvesting

 

Seg. 3

Businesses are usually the largest asset class of the wealthy. Options are starting your own business, buying a turnkey type business, like a franchise, or buying an established business thru acquisition.

Businesses might be physical like a traditional brick and mortar store or a digital businesses which are online businesses.

When you’re earning a high W-2 income you are punished by the tax code. If you want to make more money and grow your business you improve the systems and then invest in different types of assets.

Digital businesses are very good because they have low overhead, low expenses. Examples would be an educational course, consulting or a mastermind group.

Once you start earning over $500K to $1 mil+ , you need to be thinking very carefully about tax strategies. You want to figure out ways to redirect capital from the IRS to better assets that assist you.

Examples could be charities, or real estate. Active tax strategies, find good accountants and asset protection attorneys who can create a proactive strategy.

If you own a business that can make an extra $50,000 a year in income, that is the equivalent of owning a $1 million stock portfolio giving off 5% a year in dividends or owning a $1 million property giving 5% in rental income.

To have a good tax protection do you want to get away from W-2 income, create businesses with write offs with LLCs and expenses, and also mix in real estate.

 

 

Seg. 4

Offense /Defense - segment assets into offense and defensive structures. Most people go all offense, but they need defense to create present or future cash flow. Also tax protection as part of defense.

You want to own non-correlated assets, assets that move differently from each other, this helps depending on what faze of a market we are in. Use financial leverage to create more wealth. 

The example would be buy a $500,000 house, but you put 10% down or $50,000 and then borrow $450K. You put $50,000 down to control a $500,000 asset. This is financial leverage. Typically a mortgage is leverage of about 4 to 1.

An example is you make $100K a year and you can get a mortgage for $400,000. For people with incomes over $200,000, they can get exposure to better strategies. 

Loans are the key to tax free income. You want to use leverage and arbitrage to build wealth. Get tax free money from loans to for income. The arbitrage example is like a bank - you borrow at 3% but earn a return at 6%, and get a 3% arbitrage for using other peoples money, a.k.a. loans. 

Denver‘s best strategy is the 3 to 1 Tax-free Matching program. It is created under the umbrella of insurance, has low costs and fees of 1% a year.

Using leverage, it can create 6 to 10x more income vs saving on your own. Can also give you 6 to 7 figure savings in taxes. An example is if someone saves $20,000 a year in taxes, multiplied by 20 years = $400,000. This is an efficient way to use money. 

Most people chase ROI with their own money, buying things like stocks and adding a lot of risk. The wealthy operate differently. They put money in a safer and larger asset using leverage, or other peoples money. 

They chase a safe return with a larger amount of money. Then the money grows larger and faster. 3 to 1 Tax-free Matching program has no loan docs, no collateral, and no signature guarantee. 

Client puts in money over 5 years to fund and then the bank matches 3 to 1. So if a client puts in $100,000 a year or $500K over 5 years, the bank that matches $1.5 million. Now you have a total of a $2 million asset growing safely for the next 15 years.

If you always chase rate of return, you’re on a hamster wheel and it’s difficult to grow wealth. You need to have defensive assets. You want to grow and keep wealth.

Think about principal protection, not losing money. Banks like this strategy and will lend on it because insurance is safe and conservative. Banks already put a lot of money in insurance every year 

This also uses option strategies so it works in up and down markets. It locks in gains on good years, and stays flat in bed years. This is another way to not go backwards, and keep your capital. By using options the money is not directly in the market, just linked to it.

 

 

For More Wealth for Life Clips & Shows:

https://brt-show.libsyn.com/category/Wealth+For+Life+

 

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

 

Real Estate Topic: https://brt-show.libsyn.com/category/Real+Estate-Construction-Land-Farming

 

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

How do Startup Founders Raise Venture Capital? w/ Chris Smurthwaite of VC Insider

- BRT S04 EP05 (167) 1-29-2023                 

 

What We Learned This Week

• EX VC or ‘Recovering’ VC who now works with Startup Founders to help them raise $ money & build their business.

• Startup Founders need to research VCs to understand what type of fund they have, do some research on the fund, industry & and who they work with

• What VCs do not appreciate - How to Contact a VC, do not spam, make the email personalized, this is a commitment, build a relationship
• Startup Founders need to learn how to Tell Their Story, then work on the Pitch Deck with Problem / Solution Model
• What is the Exit Strategy? Exit by Acquisition, or by IPO (go public)

 

 

 

Guest: Chris Smurthwaite of VC Insider

https://www.linkedin.com/in/csmurthwaite/

https://vcinsider.net/

Chris Smurthwaite is an ex-venture capitalist. He consults with & advises Startups on navigating the complex world of Venture Capital. He spent the last decade in corporate strategy, business development and growth operations on both the investor and innovator sides of the table.

At age 30, was hired to run a corporate venture capital fund for a $1.4 billion company.

 

Among other accomplishments, the fund made:

• A Seed level investment in a health tech company in 2018 which sold for $425M in 2021
• An early stage investment in a company that was acquired for $106M — 7x valuation gain over initial investment.

Since 2013, I have:

• Advised ambitious Founders whose companies are valued from $500K to $250M
• Established multi-million dollar business development partnerships with emerging companies
• Made early stage, on-and-off balance sheet investments

 

 

Notes:

Seg 1

Chris is an ex VC (Venture Capital Investor) or reformed VC who now works with startup founders to help them raise money and build their business. Chris is a recovering VC that ran a corporate fund in Phoenix Arizona a few years back. They invested in start ups. Chris says that the startup side is more fun.

 

Startups know about VC or venture capital but typically not the specific VC fund.

There are all different VC fund types, as in the industry they work in, their area of expertise or size of startup they work with. Different industries could be tech, or health, or finance. Some startups are trying to add a tech dimension to a health field for example.

There are different stage types and funding rounds. Funding rounds could be pre-seed, then seed, then round A, round B, etc. Stage types are what level of advancement the startup is at.

Startup could be pre-revenue, it’s a smaller company with no profits yet just developing a product. VC funding in this type of company would be writing a small check. Then there are companies with a finished or proven product but not much sales yet, they are early stage. This company would get a bigger check.

Many startups will fail, 90% as what is discussed in the industry, is very common. How startup defines failure and how VC defines failure are very different. Startup could define failure as - we built a nice little profitable business but it did not get to scale. Another way of founder might define failure as they build a small business but the business collapse because they could not get VC money. Success for a founder is really building any type of business.

VC defines failure as they were not able to exit through acquisition or an IPO.

Market match or product market fit is crucial when building a startup. The model or product must be proven, must be adaptable, and something customers would pay for this particular solution. VC always wants a big market, with lots of users for the opportunity of a big success.

An angel investor has a smaller investor who would write smaller checks to typically preseed start ups. Do you want to do research and know what your market is, create a sample market and see what the market wants. Not ready aim fire, but, aim ready fire. Ask the market sample if you build product X, would that solve problem Y for you?

 

Seg 2

How to contact a VC, and what VCs don’t like. VCs don’t like being spammed, instead they want the email to be personalized. VC appreciate when founders take time to get to know them and what products they fund.

They appreciate a founder who takes time to research and show the commitment to find the right VC. It is really unacceptable if a founder does no research on the VC fund they’re contacting. This takes 10 minutes, to look at a website and LinkedIn and do some minor research.

VCs are going to invest a lot of money in a founder so it’s all about building a relationship and the commitment of the founder. Simple structure for an email could be, I saw you invested in company X, we are similar, can we chat?

Path 1 - short email to a VC with 3 to 4 paragraphs that are simply 1 to 2 sentences each. Also give a website link to the start up, and attach a short summary slide deck, that is 8 to 10 slides.

Think of the process like you’re creating a more detailed résumé to try to land a job. The goal of the email is just to get the interview for the job. Respect the VC you are contacting and understand what they want. Then the VC can decide if it’s a good fit and should proceed.

Path 2 - if the VC decides it’s not a good fit but likes the presentation then they could refer the idea or start up to a venture capital firm that might be a better fit. How do you educate the VC is important for a founder.

 

 

Seg 3

If startups need help creating a pitch deck for a venture capital, there are many examples online of how to do it, and samples from famous pitch decks like Airbnb. Standard pitch deck is the problem and solution model.

Chris thinks of a pitch stack in different terms. The pitch deck is nothing more than some thing to pique the interest for a VC to get the meeting. A visual and descriptive medium to put your best foot forward.

It has never been easier to find funding and start a start up. Chris recommends that you tell your story first and ‘why you’. This is what should be as part of the pitch deck or pre-pitch deck. Why you know your market and then the problem / solution model.

Past companies built on sand like FTX or Theranos eventually got exposed. They told a fascinating story initially but the execution was garbage. How founders tell their story, what’s their best story? The founder story or company journey with customer testimonials added in.

Think with storybrand technique, using the heroes journey of storytelling. Position the customer as the hero, brands that empower customers. This stokes emotion in the VCs. This is what Nike and Apple built billion $ dollar brands on.

 

Building a StoryBrand, book by Donald Miller

Storybrand discusses that familiar story of the ‘Hero’s Journey, and how a business can intertwine this into their marketing material, including the website. You identify with your customers thru their problems – even using common archetype symbols like a villain, guide and an internal feeling to overcome. Customers can relate to the story, and connect with your business as someone who can help them.  

The Book in One Sentence

• Building a StoryBrand is about making your customer the hero of a story.

The Seven Big Ideas

1. The customer is the hero, not your brand.
2. Companies tend to sell solutions to external problems, but customers buy solutions to internal problems.
3. Customers aren’t looking for another hero; they’re looking for a guide.
4. Customers trust a guide who has a plan.
5. Customers do not take action unless they are challenged to take action.
6. Every human being is trying to avoid a tragic ending.
7. Never assume people understand how your brand can change their lives. Tell them.

More on Storybrand technique - Full Show: HERE

 

Chris helps the founder to find the best story, and create the process showing the journey for the customer using the product. What was that ‘aha’ moment on how the founder discovered this idea. Does the founder even have a good story?

The motivation of the founder gets improved with a good story. Is the product a moon shot, that’s going to jump curves and create a new technology? What’s the startup expertise and their viewpoint to the world.

 

Seg 4

What is an exit strategy? This is when they start up is either acquired by another company, so exit through acquisition. Another exit is an IPO, where the company goes public.

Day one priority for VCA is to determine an exit strategy, but does not want the founder to be obsessed with it. Initially when VC gets together with the founder this is spring training, not the World Series.

Talk about the beginning of the process.

What are the gaps in the industry, what are the problems not being served, and how can the start ups product take care of this. Space you play in and where you attack are very important in developing a product.

An example was the dollar shave club used great marketing and a good price to show that people wanted shaving supplies through home delivery with a subscription. After that you need to speed to replicate as fast as you can.

The old Gretzky hockey quote, skate to where the park is going to be. Skate two good ideas and opportunities. What is the niche and blue ocean for this product to be able to swim in. We don’t want lots of competition.

VCs constantly do research on industries and subsections of industries to find potential blue ocean opportunities. They will even create financial models and market models, to do advance due diligence for opportunities. Then you try and find start ups who are working within these niches.

VC is after you have a process and competency so they can raise money for their fund with LPs or limited partners.

New industry is being looked at by venture capital and start ups or things like a pharmacy, health online, with companies like pill pack. Need to look and see how many players in the market already how many start ups are working on this problem? Start ups need a compelling case to get venture capital funding. Lots of companies and start ups are working in telehealth, but that does not mean there are not still good ideas out there.

 

Seg 5 - O/T

When you’re building a good product and unique technology, acquisition is always a potential exit even if you don’t have the sales. There’s an opportunity for bigger tech companies who could use the technology you are building and add it to products they already have.

For example Microsoft is making a multi billion dollar investment in open AI and Chat GPT as this could potentially increase their search engine Bing. Microsoft purchased LinkedIn in 2014 to get into the social media space, with an established product. They paid $ billions for it.

What kind of customer data does your start up capture? Data and information on customers is extremely important. Startup founders not powered by tech like health or financial services tend to overlook data management. They may not capture the customer data versus product use. Or they may not realize what type of data they even have.

Partnerships and revenue share are a part of modern tech. Companies like Airbnb and Uber or so valuable because they know so much about their customers.

What is the long-term vision of the start up? What products and customers can work together. VCs do not really know what works and what does not. So they have to fund multiple start ups and look for one of them to be a home run. Famous book Zero to One by Peter Thiel talks about how difficult it is to find these great companies.

 

 

Tech Topic: https://brt-show.libsyn.com/category/Tech

 

More - BRT Best of Tech 2021:

Cell Based Collagen from Jellatech + BRT 2.2021 - Best of Tech 2021

BRT Summer TechFest 2021 – Drones, Robotics & More Tech

BRT S02 EP52 (99) 12-26-2021 – Tech for the Holidays – BRT Best of Tech 2021

 

Thanks for Listening

Please Subscribe to the Podcast

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

 

 

 

Primetime on the Big Game, Making of Super Bowl Ads w/ Rich Singer

- BRT S04 EP04 (166) 1-22-2023                 

 

What We Learned This Week

• One Sentence – What does the Client want to tell the customers, in 1 Sentence

• One Big Idea – One Main Idea, One Emotion, One Story, One Promise, One Call to Action (CTA)

• David Ogilvy is the Father of Modern Advertising, Ad Man from Madison Ave in NYC, Mad Men is based on his ad firm
• TV is Expensive. There is a tendency for clients to want to jam in too much into an ad.
• AD Agency starts working on Super Bowl ads in August of the previous year, it is a 6 month process.

 

 

Guest: Rich Singer 

https://www.linkedin.com/in/richsinger/

 

Award-winning Creative Director/Copywriter with over a decade of experience. Brands include Nike, The NFL, ESPN, E*TRADE, Yahoo and GE. Portfolio: zackandrich.com

 

 

Notes:

Seg. 1

The show madman is about an ad agency in New York City in the 1960s. It is based on the classic ad agency of Madison Avenue called Ogilvy and Mather. It was run by David Ogilvy. Ogilvy is considered the father of modern advertising.

He talked about that ads needed One Big Idea. An idea that is unique, timeless and surprising. Ogilvie was a big believer in direct response advertising, bottom line when you sell products.

He had many advertising tenants or Commandments. You can’t bore people into reading your ad. Don’t be cute, be clear. Clearly define the position of the ad, who it is for. Ad should be conversational, clear with no jargon, to not confuse customers. Use the language of the customer. Ad copy should have simple headlines, with short words, short sentences and short paragraphs.

Michael Masterson of Agora Publishing took the one big idea and elaborated on it. He said all ad copy should be about One Idea. This makes the ad copy organized, easier to follow, and it flows better.

One Idea with one emotion, telling one story, giving the customer one promise, and finally one action for the customer to take.

 

Clip from 12/2021 Hollywood / Marketing Show

Hollywood, Storytelling & Evil Dead’s Bruce Campbell

Nostalgia in Hollywood Marketing

MB on Sales and Storytelling, Mad Men TV Show Business Lessons from Westworld TV Show (on HBO).

In the Mad Men (TV Show on AMC) episode from season 1 called ‘The Wheel’, Don Draper compares a slide viewer to a carousel, and then a time machine. The slides are taking you back to a better time when everything was good. He talks of the power of nostalgia, and the emotions we carry for the past.

The word nostalgia comes from two Greek words; nostos, meaning “to return home,” and algos, meaning “pain.” In modern times, defined as a feeling of pleasure, and also slight sadness when you think about things that happened in the past. When we yearn for the past, we want to re-capture the magic, the old emotion we once felt.

Full Show: HERE

 

Seg 2

Rich Singer has a 20 year career in advertising, working for New York firms. He started in print ads, then radio, billboards, smaller TV ads and worked his way up to doing major TV ads and Super Bowl ads.

When you first meet with a client to create an ad campaign what do you discuss? Try to determine what the client wants to say.

Boil down the client message to one sentence. The ad needs to be clear. What the client wants to say, needs to be in one sentence.

TV is expensive. There is a tendency for clients to want to jam in too much into an ad. They want to have multiple messages, when you need one message that can be laid out in one sentence.

What is the objective of the ad? Is it a brand story, building the company brand. Is it an offer story, like a special sales package being run in all the stores.

There are different levels to a sales funnel and your advertising has to match what level you believe your customers are on. Customers who are new to a brand, would need to see a different ad from a company that has a well established brand where customers already know what they’re getting.

The analogy Rich uses when talking with clients, is like a dog with a tennis ball. If you throw one tennis ball at a dog he catches that. If you throw two tennis balls at a dog he just stands there, because he doesn’t know what to do. This is what customers feel like if you try to throw too many messages at them in one ad.

After the initial meeting with the client the creative team has typically 2 weeks to create a concept. Then you will check in with the client to discuss the overview of the concept, see if it is to the client’s liking. Then typically you have 2 more weeks to work it out more. Meeting number 2, creative team would show the client a first draft of a script.

Rich is a copywriter and creative who works with his partner who is an art Director. They run a team of six people total, broken into three teams of 2, each also consisting of a copywriter and an art Director.

 

Seg 3

Super Bowl ads ship to Network about 2 weeks before the big game. The process to create the Super Bowl ads started months before. Networks will approve the ad script, with lawyers also working on that process. Networks have the right to reject an ad from an agency. The last thing you want, and it’s rare, is to send an ad for the Super Bowl to a Network and they rejected it.

Agencies start working on Super Bowl ads in August of the previous year, and it is about a 6 month process. A client is spending $7 million with the net work to buy a 30 second spot during the Super Bowl.

After the initial meeting, the creative team spends 3 to 4 weeks writing the first draft of the spot. In September Rich and his team would present the script or Scripts, could be three to the client. In the presentation will be Rich, his partner, his boss, meeting with the client team which could be 3 to 4 people. Rich and his team has created six Super Bowl ads.

Ads are initially filmed in November, or about 2 1/2 months before the Super Bowl. Sometimes, though an ad could be filmed as late as New Year’s. Many people plus lawyers review Scripts and there are multiple revisions throughout the process. The final script is put together before filming.

Lawyers and clients are looped in throughout the process and approving the script. Once you have approved Scripts you go out and you hire a Director and a production team to make the commercial. The Director would then be responsible to create a treatment and may be a storyboard for the commercial.

The ad agency has a producer who works with the production company and Director to get the process going. There’s also a line producer who is on site during a commercial shoot keeping the process moving. At an actual commercial shoot there might be a production team that could be upwards of 100 people plus actors and extras who are in the ad. The agency will send 6 to 10 people, as well as the client probably has 3 to 7 people also at the shoot.

 

Seg 4

After a commercial is filmed goes into post production. This involves editing the commercial, possible re-shoots, and post edits. This is also where computer graphics and digital effects are added to an ad as well as music and sound.

Special effects and computer graphics are very advanced where you can change backgrounds within an ad. Amount of special FXs all depends on the budget of the commercial.

Rich has been involved in commercials filmed at multiple NFL stadiums where there could be as many as 100 extras to sit in a crowd. Usually when you create a Super Bowl, the agency and client are in agreement on what they’re trying to accomplish. The most likely goal is brand buzz.

You know you have a successful Super Bowl ad when it’s a crowd pleaser, people are entertained, and they are talking about it the next day. The goal of any great Super Bowl ad is to be memorable and entertaining.

Again clients are spending a lot of money, $10 million for this process. $7 million with the NFL and Network to air the ad, and a $3 million production cost. You’re hiring actors, production teams, possibly celebrities and athletes.

There is a lot involved in a 30 second ad. Rich said the script needs to be extremely tight. A 30 second ad would have 30 frames in it and every frame Hass to be thought out & timed, and accounted for in the script.

 

 

BRT Sales / Marketing: https://brt-show.libsyn.com/category/Sales-Marketing-Networking-HR

 

BRT Hollywood: HERE

 

BRT Business: HERE

 

 

Investing Topic: https://brt-show.libsyn.com/category/investing

More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

Ponzi Schemes, 3 Card Monte, & Flim Flam Men – The Business of Con Artists

BRT S04 EP02 (165) 1-15-2023

 

What We Learned This Week

• Famous Cons - Ponzi Scheme, Brooklyn Bridge, 3 Card Monte, Spanish Prisoner, Landlord, False Good Samaritan, Fiddle Game…. 
• Psychology of the Scam & The Mark (Victim) – preying on people’s trust, greed & politeness
• Magic - Art of Miss-direction & Deception, & how 3 Card Monte works
• Con Artists in Movies - The Sting, Wolf of Wall St, Ocean's 11, Grifters, American Hustle, Hustler, Dirty Rotten Scoundrels, Boiler Room....

 

 

 

Guest: Eric Almassy 

LinkedIn: https://www.linkedin.com/in/eric-almassy-4b10097

Eric is a regional sales director, & also a part time Actor

 

 

Notes:

Seg 1 – What is a Con? What is a Confidence Man?

Examples of cons – Spanish Prisoner, ponzi scheme, landlord, False Good Samaritan, 3 card monte

Famous Cons – Ponzi Scheme, Brooklyn Bridge, Madoff, FTX Crypto

Sell Brooklyn Bridge – George C Parker

https://history.howstuffworks.com/historical-figures/conman-sold-brooklyn-bridge.htm

Parker was so good at his job that he managed to "sell" the Statue of Liberty, Madison Square Garden, Ulysses S. Grant's tomb, and the Metropolitan Museum of Art, as well as four lots in City Hall Park for $25,000. But he couldn't avoid getting caught, and he went to jail several times for larceny, forgery, and impersonating a police officer.

 

False Good Samaritan

There might not be any simpler or more ancient con than the so-called “false Good Samaritan”. It usually involves a team of two con men working in tandem, and the victim is usually a lone person walking a city street at night. The first con man approaches the person and mugs them, stealing their wallet or purse and taking off down the street. The second con man, posing as a passerby, will give chase to the mugger, tackle them, and get back the wallet. The mugger, of course, always manages to escape during the fray.

The false Good Samaritan will then return the wallet or purse to the mark, who will have been witness to the entire performance. The hope is that the grateful victim will repay the con man for his help with some kind of cash reward, which they can then split with the mugger later on. When sold correctly and performed on the right kind of person, this con is capable of earning the grifters even more money than they would have ever gotten from just keeping the stolen wallet.

Spanish Prisoner / Nigerian Prince

Ever gotten one of those junk e-mails from a person claiming to be a Nigerian Princess in need of quick cash? If so, then you’re familiar with the Spanish Prisoner, which is a classic form of “advance fee fraud” that attempts to trick unsuspecting marks by promising them a big payday down the road. The scam dates all the way back to the early 1900s, when it was often used against wealthy businessmen. This is how it would go down: after gaining his mark’s trust, a con man would intimate that he was in correspondence with the family of a fabulously wealthy person of high social class who was being imprisoned in Spain for a crime they didn’t commit.

Fearing scandal, the prisoner has not released his name or case to the public, and is relying on private means to generate the money to secure his release. With this in mind, the mark would be told that any money he contributed to help in the cause would be paid back with huge interest down the road. In some variations, it would even be implied that the person would get to marry the Spanish Prisoner’s beautiful daughter. Naturally, any money the victim gave would inevitably disappear, and when possible the con man would even try and get his victim to contribute more cash by telling them that a daring rescue attempt needed to be funded.

Ponzi Scheme / Pyramid Scheme

If  current events have proven anything, it’s that there is no more potentially profitable con game than the Ponzi scheme. The trick dates back hundreds of years, but it was popularized by Charles Ponzi, an Italian immigrant to the U.S. who swindled investors out of millions in the early 1900s before being arrested.

The modern Ponzi scheme is a form of investment fraud in which a fake or corrupt stockbroker uses the money of his new investors to pay the imaginary returns of his old ones. Initial investments with the fake broker might yield enormous returns for the people being conned, but in reality their money has not been invested in anything–the con man has simply been putting it all into a bank account. Any time someone wants to withdraw money, or if he has to pay the returns of his old investors, the con man simply uses the money he’s gotten from new investors to do it. Nothing is actually being invested, won, or lost in the market.

The con man is simply giving that impression so that people keep handing over more and more cash. Because it can only grow so far, any Ponzi scheme is destined to eventually collapse under its own weight, so the con man usually pulls a disappearing act after collecting enough money, leaving the investors with nothing but the fake returns they received to keep them involved in the swindle. Undoubtedly the most famous recent example involved Bernard Madoff, a New York financier who engineered a Ponzi scheme estimated to be in the neighborhood of $65 billion. Madoff was eventually caught and sentenced to 150 years in prison, but not before pulling of what is essentially the biggest con game of all time.

Three Card Monte

One of the classic short cons, three-card monte is a card game that uses sleight of hand and trickery to swindle victims out of small amounts of cash. It’s one of the oldest cons around, and dates back to “the shell game,” a similar scheme that was popular during the Middle Ages. The game itself is deceivingly simple. Three cards are placed faced down on a flat surface, usually two black jacks and a red queen. The dealer shows the players the red queen, and then proceeds to thoroughly shuffle the cards to make it difficult to tell where it is.

Players then bet on whether they can pick the queen out of the three cards. It sounds easy enough, but the game is more or less impossible to beat, because a good dealer can use sleight of hand to switch the cards at will, and can easily decide who wins or loses. In more sophisticated set ups, the whole game is a fake, and the other supposed “players” are in on the con. One of these conspirators will approach the mark and pretend to give them inside information on how to beat the game, enticing them to make a larger bet. Since street gambling is quite clearly illegal, any time a victim begins to suspect the game might be a cheat, the con men simply pretend to see the police coming, pack up their game, and make a break for it.

Wire Game

Made famous by the movie The Sting, the wire game was a complex fraud that required a large group of con men to work in concert in order to pull it off. The group of grifters would open up a fake “wire store,’ which is a kind of bookie where bets could be placed on horse races. A victim, usually a man of considerable wealth, would then be brought in and given some fake insider information that a particular horse was a sure thing to win the race.

If the con men sold the mark well enough, the hope was that they would place a huge bet with the fake bookie at the wire store. From here, the con can go any number of ways, but in the most popular version some sort of mistake occurs, or confusion over the outcome of the race (which, of course, never actually took place) leads to the bet being declared a loss for the hapless victim.

Embarrassing Check

The embarrassing check con is a well-known means of legally getting money from victims by playing off of their innate feelings of shame. The con men open a fake business with an overtly explicit title that supposedly sells sex toys or other pornographic material, but buyers are told that any purchases they make will be routed through a separate company with a much more innocuous name.

After taking orders and collecting payments, the company then sends out letters explaining that a shipping error or some other issue has made it impossible for them to deliver on their product. They enclose a legitimate check refund, only this time the highly graphic name of the company is clearly emblazoned on the check, the idea of course being that a certain percentage of the customers will be too ashamed or embarrassed to ever cash it.

Fiddle Game / Ring Game

Many of the best cons work because of the inherent greed of the person being tricked, and the fiddle game is one of the best examples. It requires two con men to work, and is designed to take place in a restaurant. One of the con men poses as an old man eating dinner. When he gets his bill, the man approaches the owner and explains that he forgot his wallet back at his hotel. He promises to go get it, and as collateral leaves behind an old fiddle or violin, explaining that he is a traveling musician and that it is his sole source of income.

After the old man leaves, a second con man who has been sitting nearby approaches the owner and asks to see the fiddle, saying that he is a dealer in rare instruments. After inspecting the fiddle, the man pronounces it a highly rare and valuable piece of work, worth thousands of dollars. He then pretends to be in a hurry and leaves, but not before giving the mark his card and telling him to call if the man is interested in selling. The old man will return shortly thereafter with the money for his meal. If the con men have sold the trick well enough, the victim, believing that he will be able to sell it to the fake instrument dealer for a huge profit, will attempt to buy the fiddle off of the old man for a few hundred dollars. Of course, the number on the card will prove to be a fake, and the victim will inevitably be left with a worthless violin.

Landlord

Sometimes real estate can be more valuable than gold. That’s the premise of the Landlord Scam, in which a con artist assumes control of a vacant or abandoned home, and then advertises the property for an especially attractive price point. The unsuspecting victim rents the property from the con artist, who collects a security deposit as well as the first and last months' rent, and then disappears. In some cases, the con artist may even rent the same property to multiple victims, leading to mass confusion (and a couple of fistfights) on moving day.

 

https://www.toptenz.net/top-10-con-games.php

Top 10 Con Games Explained

By EVAN ANDREWS September 16, 2009 / Updated:March 26, 2019

 

 

Famous Con Artists:

Charles Ponzi - https://en.wikipedia.org/wiki/Charles_Ponzi

Bernie Madoff - https://en.wikipedia.org/wiki/Bernie_Madoff

SBF – FTX Crypto / Alameda  - https://en.wikipedia.org/wiki/Sam_Bankman-Fried

 

 

 

Seg. 2 – Psychology of a Con

Why do people fall for cons?

What con artists prey on, psych traits of victims

More examples of cons, and how mark plays into it

 

Grifters: The 7 Psychological Principles That Con Artists Use

Distraction – Attention is like spotlight, which means when it’s pointing in one direction it pretty much ignores everything else. Except people don’t realise how little information coming in from the outside world we actually process.Naturally you don’t notice what you don’t notice, plus the mind is designed to fill in the gaps for us.

But con artists do know and almost every con uses some kind of distraction.

The classic example is ‘Three-card Monte‘ sometimes called ‘Find the Lady’, a rigged card game in which the aim is to find one card out of three after the grifter shuffles them around.

At the heart of this hustle is the orchestration of a crowd of onlookers who the mark (that’s you and me) thinks are all fellow punters, but who are actually in on the game.- aka: polite mugging

 

Social Compliance - The classic study showing how compliant we are, especially when told to do things by an authority figure, is known as the Milgram experiment. Grifters know all about this and happily exploit our automatic deference to authority figures.

People will hand over credit cards to people they think are waiters, car keys to people they think are car park attendants

Herd Principle - People are sheep: they can’t help following each other.

The classic study, known as the Asch conformity experiment was conducted by Solomon Asch in the 1950s showing that people will deny evidence from their own eyes to fit in with others.

In the Three-card Monte con, the crowd of shills around the game creates the herd for the mark to follow.

Online there are all kinds of tricks people can use to make others think there is a herd when actually there is only one person.

The practice of ‘astroturfing’ means creating multiple online identities to fake grass-roots support for a politician.In peer-to-peer networks the multiple identities created by people trying to influence them are known as Sybils. Whether online or offline, though, group psychology exerts an enormous influence over us.

 

Exploit other’s dishonesty - Fear is the mind-killer.

Con artists know that people are fearful and play on this fact. Some cons involve selling goods to marks that are used for illegal purposes.Marks are discouraged from reporting the scam because they would be implicating themselves and the grifter wins both ways.

 

Deception - People are easily tricked, even when they think they are being careful.

Grifters take advantage of the fact that most people go along with their expectations of what will happen in any given situation. If the grifter’s behaviour fits the situation then people will accept what they say.

 

Leverage need or greed - Once grifters know what people want, even if it doesn’t exist, they are in a position to manipulate them. They will play on people’s desperation; unfortunately the more desperate people are, the easier they are to con.

 

Time Pressure - Classic studies of how people make decisions under time pressure demonstrates what grifters already know: when there’s no time to think people rely on short cuts and emotional responses to a situation.

 

https://www.spring.org.uk/2022/07/grifters-con-artists-7.php

Grifters: The 7 Psychological Principles That Con Artists Use

Message from Dr Jeremy Dean

 

 

Seg. 3 – 3 Card Monte, Magic, and the Art of Deception

Hustler, people in crowd are in on the con, there to distract you

Art of the con, look and act, all in to sell it

Miss-direction, follow the card and how magic works

The mark is looking at the wrong thing

Magic – good looking assistant is miss-direction

 

That’s the Trick

There’s a scene in the movie The Prestige when the 2 young apprentice magicians go to see an older magician to learn his ‘Trick’. When the older magician is on stage he’s doing amazing feats of strength. Then they get a watch him after the show get into a carriage, he seems like a crippled feeble old man who needs help.

One magician says the other magician – ‘This is the Trick. This is the performance. This is why no one can detect his method. Total devotion to his art. Lot of self sacrifice.’

The ‘Trick’ is off stage, he’s always acting like a crippled old man. It’s simple, not easy.

We often look for something that’s not there, the big secret, when it’s actually just in front of our faces. Always more simple than we think.

We’re looking for the big trick, how to get rich in a moment. When the actual trick, is doing the work daily, weekly, monthly, for years. You hone the craft, measure your progress, and adjust over time. Respect the craft, as there is no overnight success.

https://brt-show.libsyn.com/this-is-the-trick-the-one-thing-to-exit-strategy-to-moneyball-business-lessons-from-movies-best-of-business-part-2-brt-s03-ep43-142-9-4-2022

 

 

Seg. 4 – Cons in Movies

The Sting – wire game, and gambling, hustle

The Hustler – pool movie with gambling

Wolf of Wall Street – pump and dump scheme with stocks or investments

Also in Boiler Room (based on Wolf of Wall St)

 

Oceans 11

The Cons/Hustles/Scams in "Ocean's 11" - What do the names mean?

bkkshadow (70)in #film • 2016

A Boesky, a Jim Brown, a Miss Daisy, 2 Jethro's, a Leon Spinks & an Ella Fitzgerald.

 

https://steemit.com/film/@bkkshadow/the-cons-hustles-scams-in-ocean-s-11-what-do-the-names-mean

 

The Grifters

In grifting, there are two types of scams: The Long Con & The Short Con. The names refer to the amount of time they take to correctly pull off, which is, ideally, a direct corollary to how lucrative the payout at the end is for the con-man (or woman).

Let’s talk about the lies. This movie is lousy with ‘em. Obviously the assorted grifters are lying as a profession. That’s lying to other people, and that’s a given. On top of that, they’re lying to each other. 

https://www.moviejawn.com/home/2017/5/2/the-grifters

 

More: American Hustle, Trading Places, Dirty Rotten Scoundrels, Focus,

Matchstick Men, A Fish Called Wanda, Talented Mr. Ripley, Paper Moon,

Bowfinger, Brothers Bloom, Now You See me, Nightmare Alley, I Care A Lot

 

 

https://movieweb.com/con-artist-movies/

Here Are Some of the Best Movies About Con Artists

There's something captivating about tales depicting suave and slick con artists who manage to execute calculating and thrilling schemes.

BY RACHEL JOHNSON     JUL 29, 2022

 

 

 

 

 

BRT Sales / Marketing: https://brt-show.libsyn.com/category/Sales-Marketing-Networking-HR

 

BRT Hollywood: HERE

 

BRT Business: HERE

 

 

Investing Topic: https://brt-show.libsyn.com/category/investing

More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Assets, Interest Rates & Bubbles - Market Recap for 2022 w/ Drew Niv

BRT S04 EP02 (164) 1-8-2023

What We Learned This Week

• Assets – Valuations have gone down, forces Investors to evaluate the worth of an Asset, Risk / Reward analysis, no more ‘free’ money
• Interest Rates – Don’t Fight The Fed, raising rates to lower value of assets
• Market Risk – can get Treasury Bills at 4 – 5%, risk-free, need good ROI to invest in stocks with 10 – 20% downside risk
• Oil Commodities – demand is up, supply is down, Gov’t will keep the price of oil at $70 / barrel
• Bubbles / Crypto – does not have good utility, market has collapsed, Bitcoin & Ethereum will survive, has use, plus the Black Market

 

 

 

Guest: Drew Niv, Trader Tools & former Forex Trader

LKIN: https://www.linkedin.com/in/drew-niv-123812160/

Drew Niv had a 20 year career in trading and FX (currency) markets. He founded one of the largest Forex trading companies on Wall Street, took it public (IPO), managed hundreds of staff, and oversaw $ billions in daily trading.

Currently he runs a bank software company called Trader Tools, that specializes in FX markets. - https://www.tradertools.com/

Drew Niv is a Strategic, Technology Savvy, and Detail-Oriented Board Member and Global Business Executive with a history of award-winning performance as a visionary leader. Founded company that disrupted the FX industry, resulted in retail FX becoming a major factor of the global FX market.

Developed breakthrough technology that enabled customers to transact spot FX at 70–90% less cost than the largest exchanges and ECNs. He has forged strategic partnerships with 1,000 institutional customers, including major hedge funds, all large banks, and other brand name financial institutions, both domestically and globally.

Drew possess a unique understanding of market microstructure - the inner plumbing of trade matching, how technology intersects with business, and how to grow a business from a small startup through an IPO. Well versed in managing through a crisis and positioning a mature business to meet the unique challenges of a shrinking industry. Experienced in software product development; able to design and build trading software that people want to use; and experienced in managing a diverse, international workforce remotely.

 

 

Notes:

Drew Niv - 20 year Wall Street career & former forex trader

Currently sells financial software to banks – he used to fight the Wall Street wars, now he arms them, less stress, and an easier business

Review of the Markets 2022

 

Seg 1

Market is very sensitive to interest rates. The Fed establishes interest rates. Interest Rates set the tone for the entire financial industry, from business lending, to stocks, bonds, banking, insurance, investments, mortgages, etc.

Market Fundamentals are always valid, and post 0% rates, and current high inflation, become even more valid.

Pension plans and insurance company’s returns will be affected by interest rates. They are looking at minimum rates of 4 to 5%. Interest rates have been low, near 0% for a number of years.

It is tough to get Treasury bills when only at 1%. Companies were forced to chase return and take on more risk by acquiring corporate bonds and stocks. Investor mentality was not challenged at times for the last few years.

Hard to know what a good investment is at 0% interest rates. Money was cheap, so people were investing in numerous things, borrowing $, and taking chances.

We saw the rise of the Pandemic stocks in 2020 with companies like Carvana, Peloton, and different crypto assets. These all turned out to be bubbles, and wound up flopping in 2022. The crypto market has seen 90% shrinkage. Some companies go bankrupt, while others are acquired at $.10 on the dollar.

Investment philosophy 101 - you compare all investments that have risk to a risk-free investment. Treasury Bills are considered risk-free investments where with very little risk, you can get 3 to 5%.

If you are going to buy a stock by comparison, and take on more risk, you have to be paid for taking on that risk. A stock could have 10 to 20% downside risk, vs a T Bill which has almost no downside risk, the government is a good bet. The two-year treasury bill is at 4% annually.

Professional investors always look at the risk/reward ratio. Whenever you look at an investment, you have to consider the duration, the type of asset, and what you want to benchmark it against.

Example: you invest in Apple, are they a credit risk? What is the ROI? The return on an investment should be better than treasury bills, accounting for the potential downside risk of 10% (or more).

 

Seg 2

Inflation causes the economy to weaken. Housing prices decline like other assets. In 2023, inflation should go down. This assumes the Government doesn’t spend too much money, in which case inflation stays the same.

The Fed is raising rates to bring asset values down. In the current environment, 2023, savers will be rewarded. This is similar to from the 1980s to the 1990s where you could actually earn interest on saving money.

With low interest rates from 2005 to 2020, savers were punished. 2023 will be the return of the saver. Cash will be king. Valuations are collapsing, see tech stocks, crypto, and maybe housing?

Psychology of the Investor – The investor currently still remembers the highs of the last few years. As they sell off and get out of the market (expecting a recession), their viewpoint slowly changes. Typically recessions last 2 years, and this is considered short. But it takes years for investors to regain confidence and jump back into the market.

Historically market timing is tricky. In the current environment you want to reduce exposure to assets. Go to the Federal Reserve website to look at the history of housing prices. The last decade has seen an unprecedented climb in the price of housing assets - https://www.stlouisfed.org/

 Mean Reversion is setting in, this happens with assets. What goes up, must come down. A retracement in valuations of assets. When you look at housing and regional markets some values are even higher, ie: the Sun Belt like Florida or the southwest.

Things that are illiquid assets, lower to the reset value, it’s different than last time. Illiquid is the state of a security or other asset that cannot quickly and easily be sold or exchanged for cash without a substantial loss in value.

Non-bank lenders will be hurt. Examples of this might be an insurance company, mortgage co., venture capital or private equity.

 

Seg 3

Oil demand is up, despite the government trying to stop it. Supply is decreasing, and oil prices are going up with inflation. Commodities in general are on the uptick as an asset class.

With regard to energy, there are risks of rising prices. China is on the rebound and it is the second largest consumer of oil in the world.

Currently with US Gov’t strategy, there is no cohesive policy to drill for oil. Cannot replace the oil reserves that have been used. The market has changed, demand is up. The government will try to keep the price of oil at $70, and refill the strategic reserve.

Energy companies understand all of this, and are operating a lot more efficient than in the past. They have lowered production costs, and can actually make money at $20-$30 a barrel. Bottom line they are leaner and meaner. Natural gas is very important, and the preeminent energy in Europe.

 

Seg 4

Crypto does not have good utility. There is no real regulation and the price has been based on speculation the last few years. Investors buy crypto and then look for the value to go up, to sell to the next person. The classic ‘greater fool’ theory.

Many of these exchanges have turned out to either be run poorly, having bad books, and bad management - not experienced enough, or outright frauds like FTX.

Crypto, specially Bitcoin, will still exist in the future. It is already being used in the black market and may even grow with use there. There are still too many countries with bad currency and bad banking, plus worse government.

Citizens will use crypto in the black market to get around this. Usage will be to move money, do banking, get goods, and even smuggle money. This is why when you have seen multiple crypto coins collapse, both Bitcoin and Ether have not gone to $0 because of the black market.

There is some usage as a payment method. Also in regards to Blockchain technology / Ethereum, there may be technological utility in the future.

Forex (FX or currency trading) is not typically understood by most investors. It is very transparent and has low fees.

Student loan crisis is very real. College costs are rising way too much. There is no disclosure for the ROI on the cost of tuition and the degree that major colleges give out. Not uncommon for a college to cost $200,000+ for a 4 year degree. Then the student graduates and can only get a $30,000 a year job. It’s a negative ROI on many college majors.

The top 10 professions for degrees and pay revolve around a few major themes. Math, engineering, and programming degrees are important and provide for good jobs now This will only get more important in the future. Compare this vs other degree like English lit or languages that are a poor investment and do not get good jobs. K - 12 prep schools are not preparing kids properly for college and careers.

 

O/T Seg 5

Regarding school and recommended careers. Technology, science, and math are the themes of sectors to pay attention too. Further breaking it down, bio engineering, any type of engineering programming or construction, programmers and anything with tech or computers.

Future is AI, software, and coding. VCs / venture capitalist looking for the next curve to fund and find the winners. What is the next tech revolution?

Every major company now is a tech company. All the big fortune 500 corporations and beyond are using AI and algorithms - a.k.a. data science as part of their daily function and running many operations in the business.

Not just tech companies anymore, there is a requirement in most companies to have a tech division. Understanding how to use big data, programming, AI and algorithms.

JP Morgan Chase has a tech team which is small, that runs all of the AI trading. They have more volume, more transactions, creating fees and more ROI for the bank. Example: ATM that replaces tellers, and works 24/7

There is an arms race in finance which has really become a tech race. Same goes for other industries – Sales, Oil, marketing / advertising and customer service.

Tech is permeating the future of many industries. So programmers, coders, and data engineers are all going to be in demand. They will be able to get a king’s ransom for pay. The average programmer can make a lot of money as demand continues to be high. Working in boring fields like math, is very lucrative.

Reminder, if you haven’t learned anything from the show, don’t fight The Fed. Don’t get cute with your investing. Invest for good returns and understand what type of return to expect versus risk-free assets.

2023: we will see reality set back in.

 

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

 

Real Estate Topic: https://brt-show.libsyn.com/category/Real+Estate-Construction-Land-Farming

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast.  

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

 

BRT Financial Review: Best of Investing 2022 Part 2

BRT S04 EP01 (163) 1-1-2023

 

Things We Learned This Week

• Why Does the Stock Market Go Up?– Everything You Should Have Been Taught About Investing In School, But Weren't
• Democratizing expertise around trading derivatives thru new tools & software. Reengineering the derivatives market, so we do not need to rely anymore on failed experts w/ outdated methods & tech.
• AZREIAis a Real Estate Association to learn, network, find support & contractors
• What is Your Investor Identity?Fix & Flip, Landlord, Lender
• ABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions.
• Types of Risk - Interest Rate, Inflation, Play it Safe
• Market Risk - Buffet Rule # 1 - Never Lose $, how Mkt losses affect your portfolio & timeline

 

 

Clip from 8/14/2022 – w/ Brian Feroldi               

Replay Seg. 3 - on stock markets and exchanges

FULL SHOW: HERE

 

Guest: Brian Feroldi

Book:

Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't, Paperback – April 5, 2022   by Brian Feroldi 

 

 

Motley Fool Articles: https://www.fool.com/author/14471/

http://mindset.brianferoldi.com/

YouTube - https://www.youtube.com/channel/UCs60_Z83HU76uygzHRQl0kA

Twitter: https://twitter.com/BrianFeroldi

Website: https://www.brianferoldi.com/

 

Brian Feroldi is a financial educator, YouTuber, & author. He has been intensely interested in money, personal finance, and investing ever since he graduated from college. Brian started investing in 2004. In the beginning, he had no idea what he was doing and got his teeth kicked in. His returns improved dramatically over time as his experience and knowledge about the stock market grew. Brian’s career mission statement is “to spread financial wellness.” He loves to help other people do better with their money, especially their investments. He has written more than 3,000 articles on stocks, investing, and personal finance for the Motley Fool. In 2022, Brian’s book Why Does The Stock Market Go Up? was published. The mission of the book is “to demystify the stock market.” It was written to explain how the stock market works in plain English. Brian lives in New England with his wife and three kids.

 

 

Clip from 7/17/2022 – w/ Peter Harrigan

Replay Seg. 3 – on derivatives and oprions

FULL SHOW: HERE

 

Guest: Peter Harrigan – Co-Founder Outcome Trading

https://www.linkedin.com/in/peterharrigan/

https://outcometrading.org/

 

Outcome Trading –

old world: derivatives

In today's world, risk transfer is achieved through derivatives, using highly specialized language, and opaque structures which pre-date modern information technology. Centralized financial institutions focus on high volume markets that ignore the long tail.

  new world: outcome trading™

Hedgers simply draw a curve describing the monetary compensation they require if the price of an asset were to decline (or increase). Investors graphically describe the financial outcome they desire from price appreciation (or depreciation).

 

Democratizing expertise around derivatives through new tools and software. How failure by experts impacts us all Protecting oneself or one’s business in high-volatility markets Reengineering the derivatives market, starting from a blank sheet of paper

 

Bio:

Peter Harrigan

 

Peter is the Co-Founder of the game changing trading software, Outcome Trading.

 

Peter also has founded Grey Swan Digital which developed the technology behind PlastiCurv. PlastiCurv was developed to transform financial risks into opportunities - opportunities for return, diversification and social benefit. Peter’s mission was to create an intuitive and visual platform that anyone can understand, re-engineering the $600T derivatives market and making its benefits available to anyone in the world.

 

Peter’s long and successful career as a trader started when he developed a tradable arbitrage employed at the CME and CBOT. Peter later made markets in foreign exchange at Bank of America, currency options on the floor of the CME, and equity options on the floor of the Pacific Exchange. He also co-founded Sentient Technologies, a company developing commercial applications of a highly distributed

evolutionary learning technology. After a successful exit from Sentient, Peter turned his attention to the crypto industry in 2014, attending the first ethereum meetups, & going on to participate in the Ethereum presale.

 

 

 

Clip from 8/21/2022 – w/ Mike DelPrete  of AZREIA      

Replay Seg. 1 - on types of real estate investors

FULL SHOW: HERE

 

Guest: Michael DelPrete, Executive Director, AZREIA

https://azreia.org/

The mission of AZREIA is to provide its members the education, market information, support, and networking opportunities that will further the member’s ability to successfully invest in Real Estate

 

Mike Del Prete has been a member of AZRERA for 12 years and has been running it for 1 year it’s been teaching for 5 years need to have a team like contractors lenders realtors

 

 

Clip from 12/11/2022 – w/ John Kobierowski  of ABI Multifamily    

Seg. 2 - on makeup of real estate deals

FULL SHOW: HERE

 

Guest: John Kobierowski President and CEO ABI Multifamily 

https://www.linkedin.com/in/johnkobierowski

 

https://abimultifamily.com/

ABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions. The experienced advisors at ABI Multifamily have completed billions of dollars in sales and thousands of individual multifamily transactions. ABI Multifamily incorporates a global approach with regional real estate expertise to successfully complete any multifamily transaction, regardless of size and complexity.

 

https://neighborhood.ventures/

Neighborhood Ventures is a real estate crowdfunding company that offers ALL the opportunity to be shareholders in our retail & apartment projects.

 

 

 

Clip from 11/6/2022 – w/ Denver Nowicz of Wealth for Life    

Seg. 3 & Seg. 4  – on Risk

FULL SHOW: HERE

 

Co-Host: Denver Nowicz, President - Wealth For Life

https://wealthforlife.net/brt/

https://twitter.com/denvernowicz 

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.

 

Risk

Playing it safe and taking no chances is still risky inflation risk if you are just holding cash and putting your money in the mattress, inflation eats away at the value of the cash and your purchasing power

Think of your business as an asset class whether it is a digital business or a traditional physical business, the old brick and mortar

More Info on WFL and Tax Free Matching: HERE

 

 

Clip from 9/23/2022 – w/ Denver Nowicz of Wealth for Life    

Seg. 1 – on Bonds and the 60/40 Split

FULL SHOW: HERE

https://brt-show.libsyn.com/does-the-6040-split-still-work-in-investing-bonds-portion-needs-help-brt-s03-ep47-146-9-23-2022-wealth-for-life

 

• What is the 60/40 Split in Investing? Equities 60% for Growth/ Bonds 40% for Income
• Bonds Returns have been going down for 2 decades, hurting Retirements
• Sequence of Returns Risk – When you retire matters, if the Market is down, your income can take a big hit
• Annuities - Bonds Replacement for Income, w/ Inflation increases & Income for Life

 

Clip from 10/28/2022 – w/ Denver Nowicz of Wealth for Life    

Seg. 1 – on Accumulation vs Distribution

FULL SHOW: HERE

 

• Accumulation - easier for Wall St to sell, just buy stocks in your 401K, Market goes up over time
• Distribution - income planning, market risk (Sequence of Returns Risk), and life all make this phase more complicated for advisors to talk about
• Avoid the ‘One Thing Retirement Plan’ – if this one thing goes right (market goes up), I will be fine
• NEW 60/40 Split - Bonds out, Option Strategies in, adjust your portfolio with assets that produce income, and have no market risk
• Income Planning – setup long before retirement, to have income bucket grow with principal protection and option to lock in gains

 

For More Wealth for Life Clips & Shows:

https://brt-show.libsyn.com/category/Wealth+For+Life+

 

 

 

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

 

Real Estate Topic: https://brt-show.libsyn.com/category/Real+Estate-Construction-Land-Farming

 

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

 

 

The Founders – How Tech Impacts All Areas of Business from Clean Energy to Smartwatches, E Bikes, Data & Investing - BRT Best of Tech 2022 Part 2

BRT S03 EP61 (162) 12-25-2022 

Clips from Previous BRT Tech Shows in 2022 Part 2

 

Things We Learned This Week

• PayPal Mafia– alumni created or involved many other co’s – Tesla, SpaceX, Palantir, Yelp, Yammer, LinkedIn, Facebook, YouTube & more
• Delfast E Bikes – smart bike, connects to E Bike, range of 220 miles on 1 charge, & speed of 50 mph, can drive on all different terrain 
• Clean Energy - many AZ Tech Co's working on zero emission plan
• Agile + Intelligence = Agilence, bringing great data analysis to companies
• Savvy Trader allows you to share your portfolio
• GoX Labs & ‘Pre-care’ – preventive care can save lives, prevent injuries + save $ billions
• Array Technologies is a global leader advancing the future of clean energy. With over 30 years of innovations that have powered the solar industry

 

 

 

Notes:

Clips from Previous BRT Tech Shows in the 2nd Half of 2022

 

 

Clip from 8/7/2022 - w/ Jimmy Soni on the start of PayPal and their battle w/ EBAY

From Seg. 3 - FULL SHOW: HERE

 

 

 

Guest: Jimmy Soni, Author

https://jimmysoni.com/

https://twitter.com/jimmyasoni

 

https://www.linkedin.com/in/jimmysoni/

My books are passion projects. My topics come because I look for a book to buy on the subject and can’t find one. I know it’s supposed to be fancier than that, or that there must be some grand theory of my work, but there isn’t one. That said, my readers seem to enjoy what I’ve written, so maybe it’s fine?

I am inspired by my literary heroes, including Robert Caro, Laura Hillenbrand, Candice Millard, Daniel James Brown, and Barbara Tuchman, among many others. They are all rigorous researchers—but reading their books doesn’t feel like doing homework. That’s what I’m going for, and hopefully I hit the mark a few times.

The Founders: The Story of PayPal and the Entrepreneurs Who Shaped Silicon Valley

A definitive, deeply reported look at the origin of PayPal and its founding team, including Elon Musk, Peter Thiel, Reid Hoffman, Max Levchin, and others whose stories have never before been told.

They defined the modern world. This experience defined them.

 

https://en.wikipedia.org/wiki/PayPal_Mafia

 

 

Clip from 9/18/2022 – w/ Daniel Tonkopiy, CEO, Delfast Bikes    

Replay Seg. 4 – on VC Funding and competition

FULL SHOW: HERE

 

Guest: Daniel Tonkopiy, CEO, Founder, Chairman Delfast Bikes

https://us.delfastbikes.com/

Daniel Tonkopiy is founder and chief executive officer of Delfast, Inc. Daniel is a serial entrepreneur with more than 20 years of successful business experience. His previous entrepreneurial endeavors include best.ua, a Ukrainian business reviews service; X-Rift, an augmented reality mobile game; and Million Dollar Startup, a Kyiv-based startup school.

In 2014, Daniel set out to transform the future of transportation and combat climate change with Delfast’s innovative E-bikes. He has since grown the company into a disruptive global e-bike leader that holds a Guinness World Record for greatest distance (228 miles) traveled on a single charge. In addition to Delfast, Daniel also serves as a business and entrepreneurial mentor for MiniBoss School, Startup Ukraine, and the Central Asia FLEX business program. He is an author, a former radio host, and is a dynamic and sought-after speaker inspiring entrepreneurs and sustainability enthusiasts globally at more than 50 conferences to date. Daniel holds a Bachelor’s degree in International Economic Relations from Kazakh Economic University.

 

Delfast Bikes

ECO-FRIENDLY - No air emissions and subsequently ― negative impact on environment.

SIGNIFICANT RANGE - In-house developed Battery Management System allows to travel up to 370 km on a single charge.

RELATIVELY CHEAP - We help to save your money for expensive fuel and insurance.

LESS STRESS, MORE FREE TIME - Delfast bike is the best choice to avoid annoying traffic jams.

CONVENIENCE - You can easily switch on bicycle mode and do sports when you want; and use e-bike mode when you are tired.

 

 

Clip from 10/30/2022 – w/ Steve Zylstra, President / CEO AZ Tech Council

Replay Seg. 4 – on Clean Energy and tech

FULL SHOW: HERE

 

Guest: Steve Zylstra, President / CEO AZ Tech Council

https://www.aztechcouncil.org/

https://www.aztechcouncil.org/kfnx_july2021/

 

Steve Zylstra of AZ Tech Council joins BRT to talk all things technology in the Valley. The Arizona Technology Council is one of the largest technology-driven trade associations in North America, with over 850 members and growing, the only organization specifically serving technology companies statewide. They protect innovators and truly believe that technology moves all of us forward; and are dedicated to the future of Arizona.

 

Steve Zylstra advocates for AZ tech, as well as his recurring writing about the industry. Steve, and the Council are a major source for updates on technology, business growth, and what legislation is being drafted.

 

 

 

Clip from 11/13/2022 – w/ Russ Hawkins, CEO Agilence  

Replay Seg. 3 – on how CEOs run companies & use the data

FULL SHOW: HERE

 

Guest: Russ Hawkins, CEO Agilence

https://www.agilenceinc.com/

Agilence is the leader in data analytics and reporting in the retail, restaurant, grocery, convenience, and pharmacy industries. We develop intelligent data analytics and reporting technology that enables organizations to easily connect the dots within their stores or restaurants by automatically collecting and summarizing data to identify anomalies and trends that can improve operations, measure enterprise-wide performance, and boost profits.

Agilence provides users with a complete view of their business, empowering them to make informed decisions faster and improving efficiency across the enterprise.

 

Bio:

Russ Hawkins is the President and CEO of the leading data technology company, Agilence. Russ has spent over 35-years in the technology industry, helping established organizations and small start-ups reach their full potential by driving change from the "inside."

Russ is responsible for developing the overall strategy and leading the growth of SAAS Analytics & Reporting company Agilence, which helps retailers, grocers, and restaurants improve their operational effectiveness and uncover preventable losses using the data already in their hands.

Before Agilence, he transformed two early-stage technology companies into successful businesses by leading go-to-market strategies focused on product development, re-brands, and customer profile analysis resulting in exponential growth and success.

 

 

Clip from 11/20/2022 – w/ Hamid Shojaee Savvy Trader   

Replay Seg. 2 – on sharing your trading playbook

FULL SHOW: HERE

 

Guests: Hamid Shojaee AZ Tech Beat

https://aztechbeat.com/

https://azdisruptors.com/

https://www.azcowork.com/         

Hamid talks all thing AZ tech, Startups and what the world of an Angel Investor really looks like. His 2 decades + of experience is laid out, from starting and running software companies, plus exited the industry to now an Angel Investor mentoring the next generation of Startups.

Hamid (Founder of Axosoft and Pure Chat) has always had a passion in helping Arizona's up-and-coming tech talent. Since 2010, Hamid has been involved with various AZ tech initiatives, including bringing tech founder and CEOs together, investing in startups and helping push the #YesPHX community forward.

Axosoft – software tools for software development

PureChat – live chat software for websites

https://savvytrader.com/

What is Savvy Trader? Create

Create a virtual portfolio of your stocks and crypto. Buy or sell your investments at any time to keep your portfolio up to date.

Share

Share your portfolio for free, or set a price, for your followers to get access to your portfolio and notified about your trades.

Notify

Notify your subscribers when you make a trade. Savvy Trader will send a text or email to everyone subscribed to your portfolio.

 

Savvy Trader is on a mission to make investment information more accessible.

Learning about stocks and crypto can be intimidating and overwhelming with incredibly high levels of noise and very little signal.

 

 

 

Clip from 12/4/2022 – w/ Joseph Hitt, PhD & Co-Founder of GoX Labs 

Replay Seg. 3 – on who pays the bill in workplace injuries

FULL SHOW: HERE

 

Guests: Joseph Hitt, PhD & Co-Founder of GoX Labs 

https://www.goxlabs.com/

https://www.fitt-sci.net/

 

https://www.linkedin.com/in/joseph-hitt-ph-d-70933752

https://www.fitt-sci.net/copy-of-bio-page-bruce-floersheim

 

Dr. Joe Hitt served 25+ years on Active Duty in the US Army, culminating his career as a DARPA program manager. He has a PhD in Mechanical Engineering, with a focus in robotics. He started and managed the largest government funded wearable robotics R&D program - Warrior Web. He formulated the strategy for Squad-X, a current DARPA program designed to link human, autonomous and semi autonomous ‘members’ of a small unit together in a seamless fashion for tactical operations. He is also a co-founder and current Chief Executive Officer for GoX Labs (www.goxlabs.com )

GoX Labs: Protect your team from the top three workplace injuries using Boost's AI and machine learning.

 

 

 

Clip from 12/18/2022 – w/ Erica Brinker of Array Technologies    

Replay Seg. 3 – on Solar and Clean Energy

FULL SHOW: HERE

 

What is the Future of Solar Energy w/ Erica Brinker of Array Technologies

- BRT S03 EP62 (161) 12-18-2022

 

https://arraytechinc.com/

Who We Are

Array Technologies is a global leader advancing the future of clean energy. With over 30 years of innovations that have powered the solar industry, Array is uniquely positioned to deliver renewable energy solutions for customers seeking clean energy adoption in markets around the globe. While our strength lies in building the world’s most reliable and efficient utility-scale solar trackers, our expertise, capabilities, and resources position us to extend into additional renewable energy solutions. As pioneers, innovators, and visionaries, we are committed to generating energy with integrity for a sustainable world.

 

https://arraytechinc.com/executive-team/

https://arraytechinc.com/team-member/erica-brinker/

[email protected]

 

Erica Brinker

Chief Commercial Officer

A technology and data-driven executive with over 20 years of diverse marketing, brand management, corporate communications and business development experience, Brinker joins Array from Honeywell International, where she served most recently as CMO, Vice President Marketing & Sales Excellence. Brinker also led business development for the Services, Software and Connectivity business of Honeywell Aerospace. Prior to joining Honeywell in 2011, Brinker held various leadership roles within software, technology, industrial, healthcare, aerospace, retail and hospitality companies with brands including Polo Ralph Lauren, Tiffany & Company and Kate Spade. Brinker earned a Bachelor’s degree from Pennsylvania State University and earned her MBA in International Business from the Thunderbird School of Global Management at Arizona State University.

 

 

 

 

 

Tech Topic:

https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science

 

Best of Tech:

https://brt-show.libsyn.com/size/5/?search=best+of+tech

 

 

Investing Topic:

https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

 

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

What is the Future of Solar Energy w/ Erica Brinker of Array Technologies

- BRT S03 EP62 (161) 12-18-2022

 

What We Learned This Week

• Array Technologies is a global leader advancing the future of clean energy. With over 30 years of innovations that have powered the solar industry

• Main product is a solar tracker, part on a solar panel, allows the panel to move with the angle of the sun

• They are a utility scale company, with bigger clients that are connected to the power grid using solar farms

• Array technologies puts the ‘Big E’ in ESG, as they are a manufacturer of an environmental product.
• Inflation Reduction Act gives 10 year tax credits for renewable energy, modern day gold rush for long term investment

 

 

 

 

Guest: Erica Brinker, Chief Commercial Officer, Array Technologies

https://arraytechinc.com/executive-team/

https://arraytechinc.com/team-member/erica-brinker/

[email protected]

 

Erica Brinker

Chief Commercial Officer

A technology and data-driven executive with over 20 years of diverse marketing, brand management, corporate communications and business development experience, Brinker joins Array from Honeywell International, where she served most recently as CMO, Vice President Marketing & Sales Excellence. Brinker also led business development for the Services, Software and Connectivity business of Honeywell Aerospace. Prior to joining Honeywell in 2011, Brinker held various leadership roles within software, technology, industrial, healthcare, aerospace, retail and hospitality companies with brands including Polo Ralph Lauren, Tiffany & Company and Kate Spade. Brinker earned a Bachelor’s degree from Pennsylvania State University and earned her MBA in International Business from the Thunderbird School of Global Management at Arizona State University.

 

https://arraytechinc.com/

Who We Are

Array Technologies is a global leader advancing the future of clean energy. With over 30 years of innovations that have powered the solar industry, Array is uniquely positioned to deliver renewable energy solutions for customers seeking clean energy adoption in markets around the globe. While our strength lies in building the world’s most reliable and efficient utility-scale solar trackers, our expertise, capabilities, and resources position us to extend into additional renewable energy solutions. As pioneers, innovators, and visionaries, we are committed to generating energy with integrity for a sustainable world.

 

 

Notes:

 

Seg 1

Recap Clips on Clean Energy in AZ from:

Clean Energy & the State of AZ Tech in 2022 w/ Steve Zylstra of the AZ Tech Council

 

Guest: Steve Zylstra, President / CEO AZ Tech Council

https://www.aztechcouncil.org/

https://www.aztechcouncil.org/kfnx_july2021/

 

Steve Zylstra of AZ Tech Council joins BRT to talk all things technology in the Valley. The Arizona Technology Council is one of the largest technology-driven trade associations in North America, with over 850 members and growing, the only organization specifically serving technology companies statewide. They protect innovators and truly believe that technology moves all of us forward; and are dedicated to the future of Arizona.

• Chips & Science Act is good for Semiconductors & the U.S. Supply Chain
• Clean Energy - many Tech Co's working on zero emission plan
• Semiconductor – big Tech Co’s building plants in AZ
• Nuclear Power tech is vastly improved & viable in the future

Full Show: HERE

 

Seg 2

Array Technologies main product is a solar tracker, part on a solar panel, allows the panel to move with the angle of the sun

The trend in building solar panels is to go with a larger, kind of a giant panel and like wind bi-facial to keep up with where the sun is

Typical solar panel is made with silicon wafer technology, and usually made in China.

The company is a domestic US Corp. with offices worldwide, and they use new technology, not silicon away for tech. Their clients range from the US to Europe to Australia Africa and Canada

Array Technology is module agnostic, their solar tracker can go on any solar panel

They are a utility scale company, with bigger clients that are connected to the power grid using solar farms. The power grid in Phoenix Arizona uses very little solar or renewable energy, just 4%. Array Tech works with both APS and SRP

Solar growth rate is 194% over last 5 years

Array tech moving into an area of organic growth and strategic acquisitions. They are a 30 year old company which went public in October 2020.

The overall projected goal for the US by 2040 is to have 40% from solar or renewable energy. Another goal is to have no carbon by 2035.

Growth and solar for Array Technologies is 160% organic growth year over a year. Lots of commercial construction and solar.

 

Seg 3

The Inflation Reduction Act Bill of 2022, or IRA is a 750 page bill with large parts for renewable energy on a ten-year runway.

The Inflation Reduction Act is the single most significant legislation to combat climate change in our nation's history, investing a total of $369 billion to help build a clean energy economy.Nov 29, 2022

https://www.energy.gov/lpo/inflation-reduction-act-2022

 

The long-term tax credits are very valuable for business investment. Previous government bills tax credits that were short term, 2 to 3 years.

Government is looking for mass adoption of renewable energy to make energy clean and in our control.

Currently in renewable energy, Europe is #1 and the US is #2.

It’s a long-term 10 to 20 year process to ramp down from fossil fuels while also building the needed infrastructure.

Renewable Energy makes sense in different parts of the world. For example on the East Coast of the US wind can be very usable for energy, and on the West Coast solar can be of great benefit.

Also over the long term both nuclear and hydrogen energy sources can be part of the solution.

Battery storage is one of the biggest challenges in renewable energy and solar. The analogy is like the PC processing power of 20 years ago, where it was small slow and inefficient. Battery storage will be a lot better in five and even 10 years.

RE+ https://www.re-plus.com/ is a solar tradeshow, & this past year batteries were one of the hot commodity topics.

Battery power and technology is critical for the utility and power grid to build infrastructure. The permitting rules need to improve to lessen the regulation process for building out that infrastructure.

Wind, EVs and natural gas plus solar tax credits is all part of the solution.

The government also has an advanced manufacturing tax credit to have company is Bill domestic with also supplies made in the USA.

Long-term investment in the energy plan with the government help and government as a customer

 

Seg 4

E.S.G. investing band is gaining headwind with venture capital and private equity money going towards renewable energy projects. Per Erica this is the modern day gold rush in a very good long-term investing bet.

ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.

Array Technologies puts the ‘Big E’ in ESG, as they are a manufacturer of an environmental product.

E.S.G. simply ask companies to measure and improve on their environmental footprint, while also showing transparency.

There is a new supplier code of conduct, where our business customers would prefer you to not use old energy sources to create the product. The idea of being to move towards new energy sources, not perfection but progress.

Also being studied is how to build better solar farms and reduce their impact on the land in an environmental manner. Companies do not want to disrupt the land or heard it long-term. And ongoing issue currently is finding labor to build solar farms. Companies like Omni Track use topography for best use of the land.

Farmers who build solar farms can engage in dual purpose of their land as the solar farms can shade livestock and crops. Other areas you will see solar farms built will be parking lots, commercial buildings, residential or apartment buildings. Engineers can determine best sourcing use for solar panels.

Lightsource bp is a clean energy company - https://www.lightsourcebp.com/

Solar Farms in Wisconsin - https://www.renewwisconsin.org/solarfarms/

 

 

 

 

 

Tech Topic: https://brt-show.libsyn.com/category/Tech

 

More - BRT Best of Tech 2021:

Cell Based Collagen from Jellatech + BRT 2.2021 - Best of Tech 2021

BRT Summer TechFest 2021 – Drones, Robotics & More Tech

BRT S02 EP52 (99) 12-26-2021 – Tech for the Holidays – BRT Best of Tech 2021

 

Thanks for Listening

Please Subscribe to the Podcast

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Multifamily Real Estate Investment w/ John Kobierowski of ABI

BRT S03 EP61 (160) 12-11-2022

 

Things We Learned This Week

• ABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions.
• Multifamily properties are usually apartments, but could be as small as a duplex

• Banks want stable deals, 90% occupancy for a minimum of 90 days if not longer.
• ‘Pencils Down’ – current environment is less deals, and investors just waiting
• Phoenix AZ has many good Economic Drivers for a city – entertainment, sports, resorts, events, job growth, corporations moving to Phoenix, livable & affordable city

 

 

 

Guest: John Kobierowski President and CEO ABI Multifamily 

https://www.linkedin.com/in/johnkobierowski

 

https://abimultifamily.com/

ABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions. The experienced advisors at ABI Multifamily have completed billions of dollars in sales and thousands of individual multifamily transactions. ABI Multifamily incorporates a global approach with regional real estate expertise to successfully complete any multifamily transaction, regardless of size and complexity.

 

https://neighborhood.ventures/

Neighborhood Ventures is a real estate crowdfunding company that offers ALL the opportunity to be shareholders in our retail & apartment projects.

 

 

Notes:

Seg 1

ABI Multifamily is a real estate brokerage firm and have a second company that does crowdfunding real estate investment in-house (has 7000 investors, with 1500 active)

They have regional offices in the southwest from Arizona to Nevada to Denver Colorado to San Diego CA, and looking to expand into Texas. They are opening new offices but not growing through acquisition

They had 150 sales of apartment buildings in 2022 in their real estate brokerage business.

John’s background is in real estate, as an ASU grad he went to work for a real estate broker.

He’s very happy to be in Arizona, as the state is pro business and pro growth, and that’s a huge asset for any company.

They mainly focus on multifamily properties which are typically apartment buildings though it could be any duplex or even four-plex on the smaller side. These are build to rent properties. People have to live somewhere.

Lenders - HUD

They also work could be bulk homes, senior communities, student living or mixed use property.

The last few years has seen a lot of investment in housing apartments from Private Equity and I Buyers like Zillo, or Offer Pad.

Real estate lending from banks who are looking for a stream of rental income, at least 50% - 70% need to be occupied.

The loan breakdown is 25% down payment and then a 75% loan to value. Banks want stable deals, 90% occupancy for a minimum of 90 days if not longer.

Real Estate has many business benefits including tax write offs, expense write offs, different levels of depreciation that can be written off for 29 1/2 years & bonus depreciation to get write off tax benefits sooner.

You also have the ability to sell real estate and use a 1031 exchange to buy a like valued property and defer capital gains taxes.

Real estate is also a tangible investment with the building and renters providing cash flow. It typically will have upward appreciation in value and can be used as collateral in loans.

The last 5 years, money was cheap for investment with low interest rates of 3%. In 2022 interest rates are 6%, which has caused a drop of 30 to 40% of book value of real estate.

This could turn into a liquidity event with some owners needing to sell. This is counter with growth and could last for the next 12 to 18 months.

‘Pencils Down’ – current environment is less deals, and investors just waiting

 

Seg 2

ABI Multifamily was started in September 2013 with 5 partners. 2022 was a big year where they had 150 sales of apartment properties. They use the 80/20 build rule of business – what is the top 20% in the industry.

The sale negotiation comes down to the difference of bid vs ask on the price. Current real estate investors need to determine their risk tolerance as interest rates are changing.

Apartment rental occupancy rates though are high and rent is increasing. The Phoenix Market in 2023 will have very high demand and builders are not keeping up.

Builders expect to build 12,000 units in 2023, which is the highest ever and still not enough. Mortgage rates in the last year have gone from 2.75% to 7% - costs more to get a home

Arizona real estate market has always been cyclical with cycles lasting 10 years.

Currently the Federal Reserve is looking to push the US economy into a recession to lower inflation. They are doing this by raising interest rates. Still Arizona property values and home values continue to go up.

Historically during inflation hard assets like real estate go up in value.

California is a tough state to run a real estate business as there are rent controls. Basically a landlord cannot raise rent prices.

ABI is looking to expand especially in the Sun Belt southwest region. This region of the company country has been growing for 20+ years. Currently ABI has offices in Phoenix Tucson San Diego Denver Las Vegas and Reno Nevada. They are looking to open offices in Texas.

ABI Multi is not moving into Florida as there are weather risks like hurricanes which affect property insurance.

 

Seg 3

Denver, CO seeing real estate growth with more high-rise buildings. Sun Belt is seeing real estate expansion, especially in Texas – Dallas, San Antonio and Houston.

In state migration (people moving to a state) - Arizona’s #1, Texas #2, Florida #3

Deal competition is tighter, if you were selling a building in 2021 you could get 30 offers, in 2022 you get 5 offers.

The Fed is trying to use interest rates to drive inflation down to 2%. There is a lot of uncertainty which is hard for a business.

Previewing inventory in 2024, expected to be tight. Cost of capital will go down. Looking at exit cap rates for selling properties.

The terminal capitalization rate, also known as the exit rate, is the rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value.

Mortgage rates are based more on the 10 year treasury & Frannie and Fannie Mae set the loan rate. Loans from other lenders like Insurance companies may be higher.

Market factors are some of the largest driving forces behind mortgage rates. The Federal Reserve, bond market, Secured Overnight Finance Rate, Constant Maturity Treasury and the health of the economy and inflation all affect mortgage rates.

https://www.mortgagenewsdaily.com/mortgage-rates/freddie-mac

Freddie Mac Mortgage Rates

Frequency: Weekly | Data Source: Freddie Mac

The Freddie Mac Primary Mortgage Market Survey® is weekly mortgage rate survey collected by Freddie Mac since April 1971. Lenders from around the country are surveyed each week, from Monday to Wednesday, and the results are released each Thursday at 10 a.m. EST.

 

Seg 4

Real Estate investment principles, when there’s a high cap rate you get a lender, when there’s a lower cap rate you sell.

From: https://www.rocketmortgage.com/learn/cap-rate

 

Cap rates are measures used to estimate and compare the rates of return on multiple commercial or residential real estate properties. In this article, we’re focusing on residential rental real estate – homes with one to four units – held for commercial, or investment, purposes.

 

Cap rates are calculated by dividing the property’s net operating income (NOI) by its property asset value.

 

Cap rates can provide valuable insight into a property. But the cap rate is not the only metric used to evaluate a real estate investment. Investors will also want to consider the return on investment (ROI), internal rate of return (IRR) and gross rent multiplier (GRM), as well as a variety of other factors, including the property’s individual characteristics and location.

 

Banks as well as investors are always analyzing the leverage ratio.

Construction rates are high, because of workers pay, labor cost never goes down. Overall typically business costs don’t come down.

The lumber supply chain issue and 2020 was a rarity.

Classic arbitrage trades, where you trade between markets are not as available. Mean Reversion where the market catches up and profitable deals are not there. The market equalizes with the cost of materials, and compression in land costs.

As an example there was big money in home flipping in 2010. You could go to an auction and there would be 1000 houses for sale. With so much competition and bidders the costs went up and the buyer market squeezed because of competition. Competition squeezes out profits in a market.

Any time you’re selling something and there’s only a 1 buyer market, you get crushed. We have seen this recently with a used car market. When demand is low in a market, the business has to sit and maintain the costs of their supply – carrying costs.

Real Estate Investors have to understand numerous factors when looking at a property – builders, profiles, comps vs other properties, operating cost, rental capacity & occupancy rate.

Working in hotel sector of real estate is very difficult, and different from managing a rental property.

The hospitality industry was crushed during 2020 with Covid. Now hotels and the travel industry seem to be doing well.

Phoenix Arizona is a good example of a city to invest in, as there is a lot going on. People want to move here, job growth, corporations moving to Phoenix, and it is also a very livable & affordable city with lots of events, sports, entertainment, resorts and golf.

When looking for places to expand in business or real estate you look for these types of economic drivers. Phoenix, AZ also is business friendly, and has good regulations – pro growth and pro business.

 

 

 

 

Real Estate Topic:

https://brt-show.libsyn.com/category/Real+Estate-Construction-Land-Farming

 

Investing Topic: https://brt-show.libsyn.com/category/investing

More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

 

Protecting Workers & Preventing Injuries thru SmartWatch Tech w/ Joe Hitt of GoX Labs

- BRT S03 EP60 (159) 12-4-2022

 

What We Learned This Week

• GoX Labs smart watch made in a partnership with Samsung, has sensors to check your health
• ‘Pre-care’ – preventive care can save lives, prevent injuries + save $ billions
• Who Pays the Bill? Business spending money on workmans comp, and cost of lost productivity
• Who sees the data? How the data is stored and read, employees decide who has access
• Joseph Hitt has a PhD in mechanical engineering, & a Background in the Military and DARPA

 

 

Guests: Joseph Hitt, PhD & Co-Founder of GoX Labs 

https://www.goxlabs.com/

https://www.fitt-sci.net/

 

 

https://www.linkedin.com/in/joseph-hitt-ph-d-70933752

https://www.fitt-sci.net/copy-of-bio-page-bruce-floersheim

 

Dr. Joe Hitt served 25+ years on Active Duty in the US Army, culminating his career as a DARPA program manager. He has a PhD in Mechanical Engineering, with a focus in robotics. He started and managed the largest government funded wearable robotics R&D program - Warrior Web. He formulated the strategy for Squad-X, a current DARPA program designed to link human, autonomous and semi autonomous ‘members’ of a small unit together in a seamless fashion for tactical operations. He is also a co-founder and current Chief Executive Officer for GoX Labs (www.goxlabs.com )

 

 

GoX Labs: Protect your team from the top three workplace injuries using Boost's AI and machine learning.

 

Overexertion

Repetitive movements of the lower back, shoulders, and ankles while using bad form are the number one cause of workplace injuries. Understand when and how often bad form is taking place.

 

Slips, Trips, & Falls

Fatigue can lead to major injuries. Be aware of onset by tracking swayed balance and cadence throughout the day.

 

Contact/Impact

Keep workers at a safe proximity from moving equipment or other workers. You choose the distance.

 

GoX Labs was co-founded by Joe Hitt and Bruce Floersheim, two service-disabled Army officers who went on to teach at the U.S. Military Academy and become recognized experts in the field of wearable robotics.

​

Because of injuries sustained from military service, our CEO, Joe Hitt, started the Warrior Web program at the Defense Advanced Research Project Agency (DARPA) in 2012 to reduce musculoskeletal injury and enhance wellness and performance.

 

 

 

https://evonexus.org/news/new-watch-predicts-injuries-and-measures-blood-sugar/

November 21, 2019

Imagine if you could be warned about injuries before they even happen. Well, you don’t have to imagine anymore because now there’s a watch that alerts you before you injure yourself. Not only does the watch predict injuries, but it also measures your blood sugar levels too!

When the watch links to a pod that the user wears on their collar, it sends information to a cloud provider. This cloud can predict if you are going to hurt yourself if you’re lifting something the wrong way. Information about proper lifting techniques will be provided to the user beforehand, so the watch can alert them when they’re out of sync. Overall, the watch can help prevent heat stress, diabetes, dehydration, and back injuries when linked to a pod that the user wears on their collar.

Joe Hitt, the founder of GoX Labs, said:

Ninety percent of prediabetics do not know that they are prediabetic.

As for people with labor work or exercising, this is a perfect watch for them. The watch assesses your metabolic rate, how many calories you’re burning, and whether you’re doing “good lifts” or “bad lifts.” Hitt believes his product will prevent injuries and hours lost on the job.

He explained:

This is about a half a trillion dollars a year problem for the employer, talking from diabetes to workforce injury. Those premiums are going up for companies, and they’re also going up for the worker. The watch not only notifies you of bad posture while heavy lifting, but it can also predict your overall risk of injury at your workplace. It also has a step counter, a heart-rate monitor and can provide CO2 data.

The watch is derived from DARPA research. It measured VO2 data with 95% precision compared to clinical data, and it also predicts diabetes to 79% accuracy using machine learning. The device was recently accepted into a tech incubator at EvoNexus, allowing GoX Labs to receive expertise and funding to bring their devices to a commercial level.

This watch doesn’t only tell you what time it is but could save time, money, and pain. Would you wear this watch?

 

 

 

 

Notes:

 

Seg. 1

Using the smart watch to measure physiology, motion, and the brain , and this can also be done also through things like VR or AR glasses, or Haptic suits

Old-school way to think about this would be test done through an echocardiogram that information is just in your doctors office, not in the cloud, so the regulated an accurate data can be dispersed using the smart watch

Smart watch is the equivalent of a quad core computer inside, and measures health signals specific to you then it is stored in the cloud. Other examples of this of the Fitbit the Apple Watch the Garmin watch

Military uses devices like this called IVES, they are wearable goggles, goggles connected with satellite information, as well as connected to each other this helps the military to have of the moment information in the whole team

The watch can measure your blood sugar and blood pressure

In the USA there are 89 million workers who can be injured, 5% injured bad daily

Injury rates have stabilized in the US. Industries for this type of product are construction, warehouse workers, mining, UAV, robotics

Pre-care, can prevent injuries and alert people of the potential for injury

The safety industry is behind the times, not using technology to assist, akin to the 1970s where it’s just observational with clipboards and no real Data

 

Seg. 2

Joe and Bruce met at the army at West Point both instructors, also each had 20+ years in the military, They formed Fitt Scientific (in Fort Lee, VA), dealing with government logistics, working with the government, support of tech companies, Defense and space manufacturing, IT, robotics, engineering and services

GoX Labs created in a tech incubator with the goal to prevent injury, preventative injuries, and safety $.80 per dollar is spent on injuries and it’s a $3 trillion business that can be preventable, if you save just 10%, talking $300 billion saved in a year

Watch connects with Bluetooth & sensors that clip on your shirt and access movement. Preventative care using tech, productivity increase with pre-care clients government sector

There are app versions of the go X labs watch for Samsung and Apple smart watches wearables with 5G. Partner with Samsung to make the smart watch, called the Galaxy 5Pro

Worldwide company with clients in Australia USA, Canada, parts of Europe

1970s safety tape programs now with a clipboard and an observer on site doing inspection-based work, and post analysis, not using data to prevent

Another example of the insurance industry with actuarial info

B2B workman comps needed with worker safety, GoX Labs works in the B2B sector  

B2C is performance based

 

Seg. 3

GoX Labs smart watch ahs a cost of $200, plus billions of savings for business

Who pays the bill? $250 billion a year is spent on workmen’s comp insurance

GoX Labs comes into a business, prevents injury and can cut costs, injury rates in America have leveled out as a stat, but $ costs are way up every year

GoX Labs can reduce injuries by half spend a $1, & save $5

Philosophical Issues like cultural, privacy, security need to address these issues

GoX Labs works with global Corp. and government, to know data is really secure. At the end of the day businesses would need unions and workers to sign on

The way the data is delivered, there are no names, just an ID number worker decides who gets to see and use their data

3 Data Sheets or Dashboards to view data: individual, group, organization - need to determine where the balance is on who can view

When GoX Labs first comes into a business they do an assessment, find the most serious 20% of potential injuries

 

Seg. 4

Mass Adoption, how do you get people to wear a HealthWatch? Why?

There is a need to make it personal, show value, how it can guard them or improve employee’s health

Example: steel company has 5 to 6% serious heat injuries, GoX labs worked with the steel company and they had zero (0) after implementing GoX Labs safety plan

Risk assessment, is it worth it to you?

Collect data, 60% major heat injury to staff, GoX Lab can determine with 86% accuracy

Demo with product base system is the watch, can also add motion sensors, that can check for heat stress like sweat loss, dehydration, heart rate and temperature

Design by Joe Hitt and Bruce Florsheim, Joe has a PhD in robotics, and he worked at DARPA he was 1 of 100 PM (program manager). DARPA is responsible for many great tech innovation like Siri voice command GPS global positioning system the Internet AI artificial intelligence Velcro solar satellites

DARPA has a $3 billion / year budget, currently working on things like the brain or synthetic biology and military capabilities

 

Seg. 5 – O/T

https://www.darpa.mil/ - creating breakthrough technologies and capabilities for national security

DARPA has high standards, if you don’t produce they kick you out. Joe was there for four years which is a typical length. You have to bring the best ideas, an idea that can change the world and also can be implemented - discern between fantasy versus reality

DARPA board is a revolving door with ex-DARPA agents on the board, usually 20 to 30 people. A candidate has to convince them of ideas through sales and marketing with real data

The ROI return on investment of the entire $3 billion DARPA budget seems to work, as they create ‘moon shots’, with a 20 to 30% fail rate

GoX Labs funding, or strategic backers are companies that may deal in warehousing or construction or shipping, that could be high probabilities dealing with injuries.

Other examples of where Go X Labs could be used could be literally anywhere in Arizona dealing with heat injuries

Construction which has a low margin, so preventing injuries helps the bottom line, is very difficult to implement some safety standards with the culture

The Military is a potential customer, as there is a shift in the military towards wearables (googles in the field) to protect the human dimension, and connect soldiers

Robotics has had big advancements in the tech -  

ex: Boston robotics working on new robot called LS3 the mule

 

 

 

https://interestingengineering.com/culture/us-army-goggles-troops-see-through-solid-walls

 

The US Army's New Goggles Let Troops See Through Solid Walls

In combat, situational awareness is key to survival.

The U.S. Army is developing Integrated Augmented Vision System (IAVS) goggles for close-combat forces — which involve both mounted and dismounted troops, namely, infantry.

This capability aims to send tens of thousands of new goggles into the field, which can also enable soldiers to check around corners, see in the dark, and even display digital maps and other tactical data on the goggles' lenses.

 

 

 

 

 

Tech Topic: https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

 

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

 

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.