Everything They Teach You At Goldman Sachs

Core “do this / avoid this” lessons (not market analysis)

1. Assume early losses are inevitable—use “other people’s money” (OPX)

   • Recommendation: run an “OPX check” before major moves:
     • Whose capital can I use instead of mine?
     • Whose resources can I use instead of mine?
     • Whose network can I use instead of mine?
     • If all three answers are “my own,” don’t proceed.
   • Rationale: Your first half a million dollars of investing experience is for losing—so learn using institutional/allocated/risk-budget-style capital rather than personal savings.
   • Risk-management framing: institutions operate with a risk budget, so mistakes can be absorbed without catastrophic personal consequences.

2. Annual “cut the bottom 20%” performance audit

   • Framework: perform an annual audit of:
     • Clients
     • Habits / routines
     • Social/professional circle
   • Action: remove the bottom 20% each year—people/things that drain energy or barely move results.
   • Emphasis: high performers cut to grow (career analogue to portfolio pruning; no specific financial products mentioned).

3. Be honest when behind—avoid narrative-building/lies

   • Warning: the most expensive mistake described wasn’t a bad trade—it was lying after underperformance, which compounds into larger failure.
   • Advice: acknowledge gaps early and course-correct instead of building a “house of cards.”

4. Reputation as a compounding asset

   • Caution: “I don’t care what people think” is framed as an expensive lie.
   • Crisis context referenced: during the financial crisis, Goldman is suggested to have been harmed by public narrative/relationships even if not the “primary villain,” with losses described as “billions” tied to reputation/relationships.
   • Recommendation: actively manage the story people tell about you—deal flow and market access depend on it.

5. “Duration beats output” (career/frequency matters for access and compounding)

   • Recommendation: when you’re behind, use duration—consistent effort over time—rather than trying to brute-force output.
   • Example: being early/late to work increases visibility and opportunity flow.

6. Don’t “brown nose” mediocre performers

   • Recommendation: don’t flatter people who don’t deserve your attention; align with leaders/winners.
   • Finance tie-in (implied): access to champions affects opportunities.

7. Freedom comes after performance

   • Output metric: “output when you’re a winner is the only metric.”
   • Implication: prioritize measurable results first, then use leverage for flexibility.

8. Partnership model = wealth vehicle; optimize for upside tied to performance

   • Claim: partnerships have made partners extraordinarily rich for ~150 years (Goldman cited).
   • Contrasting strategy: startup equity risk vs. partnership incentives.
   • Example mentioned: BlackRock (an anecdote about an individual making $500 million in a year—used to illustrate compounding economics).
   • Principle: structure incentives so upside is tied to performance, not just “equity in someone else’s company.”

9. Invest in off-market deals immediately (deal flow > salary)

   • Core idea: “real money… was never in the salary… always in the deals on the side.”
   • Strategy: start small and compound (examples given):
     • Duplexes / real estate deals: early scale-up from “a couple thousand bucks.”
     • Outdoor advertising startup: “a couple hundred K” (profit/return described as large “back then”).
     • Fortune cookie advertising company: also “a couple hundred K.”
   • Caution: avoid only “YOLO” style crypto speculation (explicitly mentioned as a behavior; no ticker).
   • Practical deal-building themes: find off-market businesses, fund deals without draining all savings, and structure deals so sellers choose you over private equity.

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Step-by-step / methodology frameworks explicitly shared

OPX check (pre-major decision)

Ask:

• Whose capital can I use instead of mine?
• Whose resources can I use instead of mine?
• Whose network can I use instead of mine?

If the answers imply only your own → you’re probably not leveraging properly.

Annual “bottom 20%” pruning

• Do a yearly review and remove the bottom 20% across:
  • Clients
  • Habits
  • Circle/relationships

Course-correct vs. lie rule

When behind:

• Admit reality
• Course-correct
• Don’t build narratives that delay or obscure the fix

Deal investing playbook (high-level)

• Start with what you have (possibly small sums)
• Focus on off-market deals
• Structure to be competitive versus private equity
• Build “muscle” by repeatedly doing deals

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Key numbers / timelines explicitly mentioned

• First $500k / “first half a million” framed as a learning period where losses are expected.
• Startup failure rate: 90% (used to argue against “entrepreneur tomorrow” logic).
• Bottom 20% cut: performed every year.
• OPX / “risk budget” concept: no numeric budget provided.
• Partnership longevity: ~150 years (Goldman cited).
• Event timing: “Main Street Millionaire LIVE” described as a three-day event in June.
• Example deal scale:
  • early outside deals: “a couple thousand bucks”
  • later examples: “a couple hundred K” (returns described, no exact company financials)

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Assets, sectors, instruments mentioned

Assets / instruments

• Real estate: duplexes
• Private equity: referenced as a competing buyer
• Crypto: referenced as “YOLO-ing it into crypto” (no ticker)

Sectors / deal types

• Outdoor advertising startup
• Advertising / marketing: fortune cookie advertising company
• Off-market business deals (general)

Companies / institutions (not tickers)

• Goldman Sachs
• J.P. Morgan
• BlackRock
• Countrywide

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Explicit recommendations & cautions

• Use leveraged capital / OPX rather than risking your own first-time learning capital.
• Expect early losses; don’t personalize unavoidable mistakes—avoid panic decisions.
• Prune your bottom 20% annually (clients/habits/circle) to improve results.
• Do not lie about underperformance; honest course-correction > narrative spinning.
• Reputation management matters for deal flow and relationships.
• Avoid simplistic “entrepreneur tomorrow” logic; note startup failure rate (90%).
• Invest in off-market deals and build compounding experience; avoid speculative “YOLO” crypto behavior.
• Compete on structure: aim to be chosen over private equity via deal structuring.

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Disclosures / disclaimers

• None stated in the provided subtitles (no “not financial advice” language shown).

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Presenters / sources mentioned (end)

• Donna (addressed in the subtitles)
• The narrator/speaker (author of the lessons; name not given)
• Named individuals used as examples:
  • Jim (managing director; former military)
  • Jack (colleague; used in the underperformance/lying example)
  • Gailey (colleague; interior design + media/internet presence)
• Institutions/companies referenced as sources/examples:
  • Goldman Sachs
  • J.P. Morgan
  • BlackRock
  • Countrywide
• No explicit external publication/source is cited beyond these references.