When You Understand THIS Building Wealth Becomes Embarrassingly Simple
Alex and Leila Hormozi talk with Sharran Srivatsaa, their wealth adviser, about the money frameworks that changed how they invest, size bets and cut taxes, arguing that simple one-time decisions beat chasing entrepreneur-sized returns.
The gist
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Srivatsaa's active-passive barbell: take big risks in your business and give spare cash to skilled managers, since passive for you is active for someone.
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Treat deals like a funnel: Srivatsaa says review a thousand deals to pick one, claiming private deals beat public markets by 50 to 100%.
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Srivatsaa's investment x-ray scores capital preservation, tax efficiency, yield and growth out of 25 each; he rates Apple stock about 50 out of 100.
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Srivatsaa calls the tax code an incentive machine, pointing to opportunity zones and the 14-day Augusta rule as legal ways to keep more.
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After extra tax bills of $12 million and $17 million, the Hormozis say accrual accounting and separating tax strategy from tax prep cut taxable income.
"The three important frameworks that I think every single entrepreneur should know are grounded around this first big idea, which is understanding this active passive continuum... having the barbell where one side of your risk is based on your active business and the other side..."
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"The three important frameworks that I think every single entrepreneur should know are grounded around this first big idea, which is understanding this active passive continuum....."
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