Kara Swisher · 36:48
They screwed you before. Don't let them screw you the second time and own field again because they're the only capable of doing these large language models. It's very expensive what they're doing right now, so we'll see. We'll see what happens. I don't know. By the way, just so you know, Scott, I just looked this up. Carl Heinz Brandenburg is the German electrical engineer and mathematician who developed the the audio data compression that became m p three, just so you know. German.
Scott Galloway · 37:19
Good to know. Good to know.
Kara Swisher · 37:20
Good to know. Yeah. So you know. Anyhow, but everyone else is taking advantage of his wonderful invention. Same thing with the people at Los Alamos. So much has come out of
Scott Galloway · 37:29
there. Have you ever tracked down the inventor of anything to thank them?
Kara Swisher · 37:32
No. Who did you thank?
Scott Galloway · 37:34
I tracked down the inventor of Accutane.
Kara Swisher · 37:38
Oh, I
Scott Galloway · 37:38
had terrible acne when Really? I had terrible acne growing up, and it was a huge source of insecurity for Oh, me in my
Kara Swisher · 37:45
That's not good.
Scott Galloway · 37:46
Yeah. Well, it's probably the reason I developed a sense of humor. And in my senior year of high school, freshman year of college, my dermatologist said there's something called Accutane. And I was on it for eight weeks, and I haven't had a blemish since. Changed my life. Changed And my I tried to find this guy named Gary Peck, and it developed by Hoffman LaRoche. And I just wrote one of those emails that they read, and I don't know if they read this, for example, whoever invented depends. Like, literally, the company's adult diapers basically get tens of thousands of letters saying this has changed my life. And it's easy to laugh at it, but at least... Anyways, I wrote a similar letter in in college saying to... Think it was Sophia Monroe saying, this drug changed my life.
Kara Swisher · 38:34
Wow. Interesting. You know there's... It was discontinued in 2009 because of side effects.
Scott Galloway · 38:39
Well, for pregnant women, I think, especially.
Kara Swisher · 38:41
Yeah. That's right. Yeah. But... And now there's lots of generic versions of the same drug.
Scott Galloway · 38:44
Yeah. Changed my life.
Kara Swisher · 38:47
But that's good for you. How cute. That's so cute you tried to get the Accutane. I would, like, track down the... I thought I was I was expecting Stacums, the Stacums head or something like The inventors. That's what I was expecting. I did not expect Accutane.
Scott Galloway · 38:59
That and the inventor, the two headed. I mean, that was
Speaker · 39:02
And we're out. Okay. I knew that was coming.
Kara Swisher · 39:05
Okay. I'm moving on. Now that's... Are you done with the dirty talk?
Scott Galloway · 39:08
From the Vox Media Podcast Network.
Speaker · 39:09
Are you done with the dirty talk? Because we're going to a young listener.
Speaker · 39:12
Are you done?
Scott Galloway · 39:12
This is so long. Didn't we have to have a question from eleven when I'm especially profan?
Kara Swisher · 39:17
You're gonna be fine. Come on. Alright. Now listen to me. Be nice. Okay? Get it ready. Get it together. Get it together.
Scott Galloway · 39:23
Alright. Okay. You've got you've got I can't believe I'm gonna be a mailman. You've got mail.
Kara Swisher · 39:29
The question comes from a youngest listener ever to write into the show. We promise we'll try to keep this section PG rated. I am fine, but, Scott, I want you on your best behavior. I'll read his email. Hi. My name is Henry. I'm 10 years old. I have a question about investing. Where should I start investing the money I've saved up? I would like some money to stay invested for a while, but I also like some money quickly. My dad says that you are good people to ask about this. Scott, I'm gonna give this to you, and I want you to give this young man some advice because you believe in investing from an early age.
Scott Galloway · 39:58
So, first off, this young man should take time to recognize that he is way ahead of where other young men are. To be thinking about your future is an investment in yourself. It's an investment in your parents. It's an investment in America. So I think it's wonderful he's thinking this way. And this is how we should think about it. When you invest, you want to think, well, what is my comparative strength? Can I invest in small companies? Do I have domain expertise around something? Most people don't. So what most people are better off doing is investing in index funds because the natural trajectory of the market is up. And what this young man has on his side is time, and that is he can survive short term or medium term dips. So as long as he invests in a diversified ETF or index fund, I like SPY or QQQ, he should look at every $10 that he manages to save. And that's not easy. There's a lot of fun stuff to spend $10 on, whether it's movies or gummy bears or or having some fun. But if he can take $10 right now at his age, when he is our age, when he is our age, if he sends... If he just saves $10 a month and then a $100 a month when he gets a little bit older, he will be a millionaire. So every time he takes $10, $50, or a $100, he needs to he needs to say to himself, this is the sacrifice that I am making such that I can take care of myself, live a wonderful life, and take care of my parents. And the other thing he should do the other thing he should do in addition to investing in low cost funds at Vanguard, s p y q q q, if there's a couple stocks or companies he really likes, he may wanna buy a little bit of those shares on a low cost platform like a Charles Schwab so he can learn about the company and learn about business and learn about the markets. And then finally, what he should absolutely do is go to dad and say, dad, for every $25 I invest in the market, I want you to match it. This is an investment in our future. I'm gonna take care of you and mom. I want you to match it. And every time he looks at that money, every time he looks at a $10 bill, he should say, what can I do with this $10? Or do I want it to be a thousand? Because it will be a thousand if he invests it now, but that's the way to look at it. That's the way to look at it.
Kara Swisher · 42:14
Very nice. What about a short term thing? He said, I want some... To make some money quickly. That would be stocks, picking stocks.
Scott Galloway · 42:20
Well, here's the thing. That just doesn't exist. And that is if you need money in the short term, keep it in T bills or an interest bearing account. You can now get about five and a quarter percent. But he should be leaning on his parents for all his expenses and saving. Here's the thing, the people... The the the coolest the coolest men in the world are the ones who protect themselves and protect others. And one of the ways you protect others is through financial strength. And one of the ways you achieve financial strength is by foregoing short term pleasure, not buying that Slurpee, not buying that coffee, not buying that Lego, you know, going to the movies in the afternoon when you can get discounts. Try to gamify it, but set yourself an objective. See if you can save $20 and $40 and $50, and ask dad and mom to match it. And then never touch it. Try and be really disciplined and never touch it. And then when you're mired
Kara Swisher · 43:19
So not Bitcoin. Not Bitcoin. Okay.
Scott Galloway · 43:21
Don't do cryptocurrencies. I would be comfortable saying don't do that. And then here's the thing. When he's a young man and he's thinking about forming a household or has a partner or a spouse and wants to have kids and wants to do really wonderful things for his kids and wants to take care of his mother, he can look back and think, all of it was worth it. All of it was worth it. And he's so far ahead of where everybody is.
Kara Swisher · 43:42
I agree. My son, Louie, just sat me down and said, We gotta talk about how to manage money and everything else. He's 21, and he wants to think about buying a house. He's got a little bit of money he inherited, and we talked about that. You're very 10 years old. He did not come up to me at 10 years old and asked this. He's asking when he's 21, which is good early too, actually.
Scott Galloway · 44:00
So, of course, I'm gonna turn this to me. When I was 13, my mom's boyfriend gave me $200 and said, Go buy stock at one of those fancy brokerages. And I went into the first brokerage, Merrill Lynch, and I sat there, got very insecure, walked across the street. And this guy named Sy Serra from Dean Winter Reynolds came up and said, hi, I'm Sy. And he spent an hour with me talking about the markets. And we bought 16 shares of Columbia Pictures at about $13 a pop. And every day, I'm not joking for two years, I would take 20¢, go to the phone booth in the middle of the field at Emerson Junior High School and call Sy, and he would update me on how Columbia Pictures was doing. The stock is down because Casey's shadow was a bomb. The stock is up because Close Encounters of the Third Kind is a hit, and it taught me so much about the markets. The reason I get to do crazy cool things with my kids and have a lot of fun is from money I've made from the markets. So developing a passion and an understanding of the markets at a young age is gonna pay dividends the rest of his life.
Kara Swisher · 44:58
Yep. Sounds right. It sounds right. Excellent question. Thank you, Henry, and thank you for behaving, Scott. That's a very helpful thing. So you're like Sai from Dean, Witter Reynolds. Anyway, if you've got a question of your own and you'd like answered, send it our way. Go to nymag.com/pivot to submit a question for the show or call 85551 We get a ton of them. We're gonna be doing more listener mail stuff because we got so many emails. Alright, Scott. One more quick break. We'll be back for predictions.
[Ad break]
Speaker · 45:35
And what if we added that this magical substance can dramatically lower your cholesterol, improve your mood, and keep your weight stable?
[Ad break]
Speaker · 45:49
But what is fiber? How could one nutrient do all those amazing things? And how can you get enough? Is a powder you stir into some water gonna do it for you?
[Ad break]
— Predictions segment begins —
Kara Swisher · 46:14
Okay, Scott. You made a prediction last week. It's getting some attention. Let's throw to the clip.
Scott Galloway · 46:19
I think president Trump is not gonna run for president under yeah. The Under the auspices of a plea deal.
Kara Swisher · 46:26
Alright. Any revisions you wanna make?
Scott Galloway · 46:28
No. I wanna expand on it. I'm more convinced of this.
Kara Swisher · 46:31
Okay. I got a lot of attention. Someone said I was stunned. I wasn't stunned. I was like, what? Where did that come from? Anyway, go ahead.
Scott Galloway · 46:36
Let's just do the math. Mhmm. It's gonna become increasingly clear. Everybody talks... It's just so ridiculous when MSNBC or CNN put these polls on the screen. It doesn't matter what the nation thinks. It matters what five states think. It's essentially Arizona, Wisconsin, Michigan, Pennsylvania, I think Georgia decide the election. We already know... The other 45 states, we know how they're voting. Mhmm. It's five states. And if you look at those five states, if you look at the issues in the map, Biden beats Trump easily, Easily. Unless that changes unless that changes, if Biden is inaugurated in January 2025, the likelihood that Trump goes to prison goes from one in ten to, like, one in three. And here's his life. All his currency is the threat of him winning right now. So he has currency right now to go strike a deal that includes no jail time. And then what is his life in January 2025? He's a billionaire. He has sycophants that think he's amazing. He can do whatever he wants. He can just have an amazing life.
Kara Swisher · 47:43
Well, he has to settle all of them. They're all different cases.
Scott Galloway · 47:46
I think they would be very creative about it. I think I think he has a lot of currency right now, but what happens to his currency? Do you think Jim Jordan and Marjorie Taylor Green stand by him when he becomes the guy that literally took the Republican Party down, not once, not twice, but arguably three times?
Kara Swisher · 48:00
They seem to love it. They think they think winning is... Means you aren't pure enough, just so you know.
Scott Galloway · 48:05
I don't know. If he loses again, I just think they all abandon him. I think they drop him like second period civics, and I use civics on purpose.
Kara Swisher · 48:13
I don't know. They're sticking with him through two losses, two significant losses.
Scott Galloway · 48:17
No way. If if he continues to decimate the Republican Party and he's a loser, none of these people like him or his principles. Yeah. I think even his court base begins to abandon him, and then the momentum towards putting this criminal in prison becomes a torrent, a runaway flood. And at some point, a legal counsel is gonna say to him, you realize it looks... The map just looks like you're gonna lose. And the day you lose, you no longer have the currency negotiated deal because all the people standing in the way saying the DOJ has been weaponized, stop talking about it and let the DOJ do its work.
Kara Swisher · 48:53
Alright. Alright. So it's out there, Scott. I like it. It's out there. We'll see.
Scott Galloway · 48:56
He's depraved, and he's irrational. He's not stupid. Well not
Kara Swisher · 49:00
stupid. Because he he continues to seem to double down, but it might be all for show. You're right. It could be. I don't know. He... The question is, is he a true believer in himself and his luck, or does he think his luck has run out? He does believe in his luck, and he has a lot of it. He's had a lot of it over the years. He's gotten... He slipped out. He's a slippery character, and he slipped out of a lot of things. And so he probably is in a pattern matching situation where I think he's gonna slip out of these two.
Scott Galloway · 49:23
The world's closing in on him, and he knows it. He's about to have a third indictment.
Kara Swisher · 49:27
Yeah. Yeah.
Scott Galloway · 49:28
Mean, all they
Kara Swisher · 49:28
need is one. Georgia.
Scott Galloway · 49:29
All they need is one.
Kara Swisher · 49:30
Georgia, there's... That'll be five. Yeah. That'll be a lot. Anyway, who knows what else is coming? He's losing to Eugene Carroll again. He... All all the things went against him last week. All the legal stuff went against him. Anyway, we'll see what happens. Okay, Scott. That's the show. We'll be back on Tuesday with more pivot. Enjoy yourself. Let me know how you like all these movies you're seeing, and we'll discuss it in our next show.
— Predictions segment ends —
Scott Galloway · 49:53
Today's show was produced by Lara Naaman and Taylor Griffin. Ernie Intertaught engineered this episode. Thanks also to Gibrales, Mille Savario, and Gatti McBain. Make sure you subscribe to show wherever you listen to podcasts. Thanks for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for another breakdown of all things tech and business. Who is an who is a 10 year old Henry? Who is an impressive 10 year old Henry? Who's gonna be an even more impressive 20, 30, 40, and 50 year old man? Henry. Why? Because he's gonna be able to take care of himself and others because he is thinking ahead. He is showing discipline. He is showing concern for his family. He is showing an understanding of the markets, and he is showing at a very young age a wonderful sense of masculinity trying to protect himself and others. Go, Henry.
[Ad break]
Speaker · 51:21
Everyone's got a hard question about AI. Your job, your kids, where it's going? Anthropic was built to surface those questions and share what it finds along the way, because there's hope in hard questions. Ask yours at claud dot ai slash spotify and keep thinking. That's claud dot ai slash spotify.
