This is our 200th episode! We are so excited to reach this milestone! Tune in to the next episode for a little celebration!
This week Dan and Anthony spoke at a real estate meet-up. After the event, Anthony spoke with a young professional getting into the industry and he wanted to know what exactly they meant when they say… “Play Long Term Games With Long Term People”.
This Naval quote can be broken down into 2 parts, the game, and the people. Billionaires, people who are immensely successful in their industries, are constantly playing the long game. They are able to look at the industry and see its future. And then to play that game, they have to play with teammates. And these teammates need to be in it for the long haul.
We unpack all of this and more on this week’s episode of Multifamily Investing Made Simple, In Under 10 Minutes.
“I think generally we have a hard time as humans conceptualizing those time horizons at which not just money, but also skills and relationships compound.” – Anthony Vicino
“It’s always surprising how big of an impact small, consistent things can have given enough time and enough occurrences” – Dan Krueger
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Long Term Games
[00:00:00] Dan: hello
[00:00:13] Anthony: and welcome to multifamily. Investing made simple to podcasts. It’s all about taking the complexity out of real estate investing so that you can take action today. I am your host, Anthony Pacino of Invictus capital joined by Dan, the man in the closet. Ben, how’s your closet? What am I doing here?
You’re in your closet, hiding from your daughter, your tiny dog.
[00:00:38] Dan: He’s a very scary little Yorkie, all three pounds quarantining. I’ve got a tickle in the throat, so negative COVID tests, but
[00:00:47] Anthony: it’s perfect. I get the podcast studio to myself.
[00:00:53] Dan: And what are you doing with this newfound power? I’m pantless utilize
[00:00:56] Anthony: it. Yes. I’m abusing the power and I’m sitting in your chair. [00:01:00] So for the viewers and the listeners at home, I recommend you go to YouTube, to multifamily investing made simple, and you can watch all the videos. You will not see me pantless because we have.
Um, but just know, just know I am sitting in Dan’s chair pantless because he’s not here to defend himself. We did not talk
[00:01:16] Dan: about this. No, no
[00:01:17] Anthony: meeting. And yet here we are. Okay. So let me start the timer. Cause we’ve got less than 10 minutes here, uh, to get through today’s topic and you don’t even know what it is yet, but I have no idea.
So last night, last night, we, we gave a presentation or we talked at a local meetup here and afterwards, one of the things that I, that we talk about all the time, and you guys hear this all the time is that we were all about playing long-term games with long-term people. That’s a . Um, and when you consume content from like Alex Hernan mosey, he likes to talk about one of the things that billionaires do, like ultra ultra wealthy people that like just your regular run of the mill millionaire doesn’t do is that they think on longer time horizons, like [00:02:00] just that’s like, that’s like the main difference is like the time horizon on which they think.
And after, after the meetup, a guy came up to me and was chatting with me, he’s a young kid, like probably in his early twenties. We’re talking about. And I was like, just lengthen your time horizon, like play a long-term game. And he goes, what exactly does that? What do you mean by that? And so I thought, Hey, let’s just unpack that real quick.
Dan, what do you think? What, what do you think it
[00:02:24] Dan: means? I think, um, someone like Elon Musk is a good example. Um, since he used the example that her Mozy made about, you know, successful thinking about successful people, thinking on longer timelines, Elon Musk is fixated on what’s gonna be. Uh, life for the human race better in future generations.
That’s what he’s thinking about. So he’s not even thinking about the next 10, 15, 20 years. He’s thinking about future generations. Like the problems that our grandkids and their grandkids, grandkids are going to have. That’s what he is trying to solve and pretty sure, you know, without counting those kinds of black market wealthy [00:03:00] people, he’s he’s up there.
Uh, I think he might be officially the richest. Just knocking bayzos up, uh, reasonably so, and he’s thinking of an extremely long time where it’s like, so I think that’s what I think about is it’s not thinking about, uh, what can I do to make some money today or this week, or this year it’s where do I want to end up in 20 years and then reverse engineering from there.
And we do that all the time. I think we take it for granted that that’s the way our brains. Most people aren’t thinking about tomorrow, first, next week, second and next year is way the hell
[00:03:29] Anthony: down the list. Yeah. I think Ilan is such a good example here in like, he’s obviously thinking on generational timeframes, which that’s not even necessarily what I mean, like, cause I that’s hard to fathom and I don’t think most people do.
Like that’s just so longterm. Yeah. He’s a weirdo. Um, I think about is the, the quote that you, we often overestimate what we can accomplish in one year and underestimate what we can do it. And as I was talking with this kid, I was like, listen, if I told you with a [00:04:00] hundred percent certainty, that I can make you a millionaire in the next year, would you sign up for that?
Like if you just gave me a year of your time, I could make you a millionaire. And he’s like, yes. I said, what if I said, I could do that in three years? And he’s like, yes. As I was five years, he was like, it starts to pause. He goes, yes. And then I said 10 years and he be like, hard blocked. He’s like, um, and I was like, there’s my answer?
And I’m like, that’s what I mean, Like, you’re like 22 right now. And I’m telling you if I could make you a millionaire by the time you’re 32, you’re hemming and hawing. Like you’re not playing on a long timeframe because you could deal because you think like that it should happen faster. Whereas I know that it might take a decade to get you to that first million, but the second million is only gonna take five years because you’re gonna learn.
And then the third million’s only going to take you to. And that’s the power of compounding interest, right? Like it takes so long to finally get going, but once it does, it’s like jet fuel.
[00:04:55] Dan: Yeah. Yeah. And a lot of that ties into stuff that Nepal’s said about, [00:05:00] um, I forgot what the exact quote was, but we talked about it in our, um, Ebola, Rob account Almanac, a book review, or a rundown or whatever.
We’re calling that thing, um, that, you know, he’s, he made some comments along the lines of, um, wealth has stacked up, uh, slowly over time. It’s very rarely gonna come and see. You know, big windfall out of nowhere. And a lot of times wealth is going to be coming from ownership and equity shares and things.
And that’s the kind of stuff that you just accumulate over time. And over a long period of time will create wealth. But the quick solution is almost always going to be something that’s a currently. Because if you can do really well really quickly, it’s reasonable to assume that it can go the other direction just as quickly as
[00:05:44] Anthony: well.
Yeah. And I think a lot of, a lot of times when we’re going through a situation right now, and as I was talking to this kid, I was like the problem with like, Uh, he’s an agent. And I was like the problem with a lot of agents thinking like a realtor is they think so transactionally and they look at what’s my [00:06:00] 3% of that transaction so that I can take that money put in the bank.
And it’s all about that number. And what they don’t quantify is what is the lifetime value of that, that amount, if they could translate that into equity in some meaningful way. Right. And so maybe that 3% could have actually been temporary. By the time it’s all shake, shakes out. If you had translated over three to five years of buying an asset and holding it.
And we just, I think generally we have a hard time as humans conceptualizing those, those time horizons at which not just money, but also skills and relationships compound. Like that’s things just take so much longer than we think, but then they also take so much less time in the grand scheme of things that we do.
[00:06:46] Dan: Yeah. Yeah. It’s just, it’s always surprising. How, how big of an impact small, consistent little things can have given enough time and enough occurrences, like the most minuscule, a little things that in the moment seem like they sh they won’t [00:07:00] matter that much. If you consistently execute them over a long period of time, it’s amazing how much they can add up to.
Like, I remember what I was doing in fishing, coaching back in the day and have these clients who. Very frequently and say, I just don’t have the time to, uh, increase my activity level. I’m like, well, what if you just got up three times a day and walked for, uh, five minutes and you know, But at the end of the day, you get 15 minutes in.
By the end of the week, you’ve got like an hour of quote unquote cardio accrued, and you never really did anything. You just took the long way to the bathroom a couple of times, and it didn’t really impact your life. But at the end of the day, you got a full cardio session and you didn’t have to change the damn thing.
It’s like that small, consistent stuff. Just it’s amazing how much it accrues. Um, but if you do the. It always makes sense. And I think that’s why a lot of people get kind of lost. If they’re looking for some big, drastic thing that has an immediate impact. And usually it’s those little simple things, a hundred percent of be
[00:07:53] Anthony: consistent have patients, uh, we it’s so easy to, to overlook, like what is a [00:08:00] meaningful unit of input, whether it’s your health or eating or money, or like skill acquisition or relationship time, like we over, we tend to overestimate and think like, oh, I need to.
A big Herculean effort. I got, if I’m not spending a half an hour on this thing, it’s not worth, it’s not an hour. If I can’t dedicate four hours, like what’s the point. And we, we, uh, we overshoot, like what’s a meaningful unit of input. And for most things like 10 to 15 minutes can be a meaningful unit of input.
And in the same way, Uh, a year of your life, if five years of your life, that can be a meaningful unit of input that can serve you indefinitely. So that’s what I meant by play long-term games and, you know, trying to stretch the time horizon,
[00:08:41] Dan: just talking with another 15 minutes a day, that’s that’s almost two hours every week of something.
Whether it’s reading, studying, spending time with your significant
[00:08:51] Anthony: other, and that’s what a hundred hours a year then. Right? So now suddenly it’s like two and a half full workweek static. That’s almost a month. [00:09:00] Okay. I’m rounding up here, but it’s almost a month of dedicated activity towards that thing.
[00:09:06] Dan: Yeah. Yeah. That’s crazy. That little stuff, consistency. That’s why I’m such a freak about consistent. Bring it up all the time on the podcast and our stuff is just, it’s powerful. It seems boring. But, um, I don’t know if you have religious routines like me so much so that your significant other makes sense.
And how consistently you enter the bedroom every night? Uh, data like that makes me feel like it’s justified.
[00:09:31] Anthony: Like I’m doing it. I mean,
[00:09:34] Dan: Hey, the dog’s on the same page. He’s got a very regimented routine
[00:09:37] Anthony: too. So gets it. Our cats. I came out of my bed this morning at 5:00 AM to go to the bathroom. My cats are both at the door.
Like we’re ready for food. We’re ready for food at five, 10, like a God. Yup. All right guys. So that’s what we mean by play long-term games. Hopefully this has helped expand your minds horizon of time. Um, this game [00:10:00] that we’re playing, he got so much more time on this planet than you think, unless you get hit by a bus.
So just stay clear of buses. The only thing, the only thing that can take you down to your listener as a bus or a bullet and obsess that you’re fine. So that’s it for us. How about you guys? Uh, turn us off, but before you do go leave a review. It wouldn’t be a full episode on the side. Ask for that. And now that I have I’m, I’m done, we’ll see you in the next step.
[00:10:25] Dan: That’s the only reason we came.
[00:10:26] Anthony: That’s it. I just wanted that review. We love you all. We’ll see. In the next episode, .