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The Game with Alex Hormozi

Lessons Learned from Investing in 22 Companies (Pt.1) | Ep 589

The Game with Alex Hormozi

Alex Hormozi

Business, Education, How To, Entrepreneurship

4.94.8K Ratings

🗓️ 19 September 2023

⏱️ 49 minutes

🧾️ Download transcript

Summary

“We take something old and something new and there's a lot of magic between the two of those things." Today, Alex (@AlexHormozi) discusses his experience investing in 22 companies over the past three years, sharing lessons learned and mistakes made. He provides insights on his investment criteria, deal structures, and the process of providing value to portfolio companies.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(2:37) - Our criteria for investing

(10:36) - What we look for in companies

(15:21) - Process of providing value (who-what-how framework)

(28:33) - The role of leadership when investing

(32:26) - Cash flow is king and helps reinvest in growth

(39:32) - Focused founders are the key

(44:58) - Two steps back to take ten steps forward

Follow Alex Hormozi’s Socials:

LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Transcript

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0:00.0

Real quick, you guys already know that I don't run any ads on this, and I don't sell anything,

0:04.5

and so the only ask that I can ever have are you guys that you help me spread the words,

0:07.7

we can not more entrepreneurs, make more money, feed their families, make better products,

0:11.9

and have better experiences for their employees and customers.

0:14.9

And the only way we do that is if you can rate and review and share this podcast.

0:19.4

So the single thing that I have to do is you can just leave a review,

0:21.9

but take you 10 seconds or one type of the thumb, it would mean the absolute world to me,

0:25.2

and more importantly, it may change the world of someone else.

0:28.0

I think that's why in a lot of ways general entrepreneurship is about being a jack of all trades

0:31.6

master of none, which is that you have to know enough to be dangerous, you have to know enough

0:36.0

to recognize what the true constraint is at a macro level, and recognize what has to happen to

0:41.5

de-constraining it. Welcome to the game where we talk about how to sell more stuff to more people

0:48.2

in more ways and build businesses worth owning. I'm trying to build a billion dollar thing with

0:52.0

acquisition.com. I always wish pesos, musk and buffet had documented their journey,

0:56.0

so I'm doing it for the rest of us. Please share and enjoy.

1:00.8

Over the last three years, I've invested in 22 companies, either as majority owner, where I took

1:06.5

over control of the business, or a minority owner where I just assisted in the growth of the business.

1:10.5

And each of these businesses are doing over a million dollars a year in profit,

1:13.8

so not top line, but bottom line. And I want to share with you the lessons that I've learned

1:19.1

in investing and growing those companies and some of the mistakes I've made so that you can

1:22.4

make better decisions in investing and growing in your business or investing and growing in other

1:26.9

people's. And if you have any interest in becoming a portfolio company, I'm going to give you

...

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