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Codie Sanchez06 July 2023

Unlock Financial Freedom: Secrets From A $50 Million Portfolio - Codie Sanchez

7Frameworks
15Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 3

Hot Take31:30

Is struggle the key to happiness, or is balance?

Sanchez claims the key to happiness, wealth and success is struggle, that iron sharpens iron and periods of struggle make relaxation poignant. Ali pushes back, citing deathbed regrets about working too hard and Alexi's line about a millionaire who'd trade everything to be 20 again, arguing balance is happiness. They converge on a better definition: struggle isn't only work, it's voluntary challenge in mind, body and meaningful activity, and the deeper problem today is that people lack purpose entirely.

  • Sanchez: struggle is the key to happiness, wealth and success
  • Ali: deathbed regrets and lost youth suggest balance is happiness
  • Both agree growth comes from struggle, but not only at work
  • Approaching work in the spirit of play with a sprinkle of challenge is the sweet spot
  • The bigger crisis is that many people have no purpose at all

if you want to know what the key to happiness is it's struggle

Codie Sanchez · 32:00

I would venture that balance is happiness and there are periods of struggle certainly because growth comes from struggle

Ali Abdaal · 35:00
#struggle#happiness#balance#purpose
Hot Take1:07:30

If no one thinks you're crazy, you're too late

Riffing on one of her own 21 finance truths, Sanchez says if sharing what you're doing doesn't make someone roll their eyes, you're aiming too low. Her mentor Bill Perkins challenged her that spending so long around small businesses had let 'small' infect her thinking, and that with her reach she should aim to be bigger than Blackstone. She observes that time with billionaires widens your aperture because they've bent the world to their will and know far more is possible.

  • If nobody thinks your plan is crazy, you're too late
  • Bill Perkins warned that 'small' had infected her thinking
  • With enough reach, aim bigger than Blackstone
  • Billionaires have a wider aperture for what's possible
  • Related truth: the market isn't saturated, your business just sucks

if you're sharing what you're doing and somebody doesn't roll their eyes or think you're crazy you're doing it wrong

Codie Sanchez · 1:09:00

do you think that you have been around small for so long that small has infected your thinking

Codie Sanchez · 1:08:30
#ambition#mindset#scale#mentorship
Hot Take1:25:30

Own great assets, don't speculate on the greater fool

Sanchez draws a hard line between investors and speculators, warning that a generation has been taught speculation via crypto, NFTs and hot stocks. Speculation relies on the last-man fallacy, betting a dumber buyer takes the bag, whereas real investing means owning assets so good you'd hold them 30 years like Warren Buffett. She adds that genuine trading edges live in firewalled 'black boxes' that pros never share, so anyone teaching trading secrets online is, in her view, full of it.

  • Speculators bet on a greater fool; investors own great assets for decades
  • The last-man fallacy means you might be the one holding the bag
  • Fast-money runs in NFTs, Bitcoin and stocks confused people about investing
  • Real trading edges are firewalled black boxes pros never reveal
  • Anyone teaching trading secrets online is likely full of it

you should know that you should run away from that because you're the last man

Codie Sanchez · 1:25:30

anybody that teaches trading online is totally full of it in my opinion because if they had great secrets they would never share them

Codie Sanchez · 1:26:30
#investing#speculation#crypto#ownership

Explainer· 2

Explainer09:30

Learn on someone else's dime before you go it alone

Rather than rushing to be an entrepreneur or YouTube star, Sanchez advises starting inside a company that trains you, since a salary means you can't bankrupt yourself while learning. Big corporations invest heavily in training (Vanguard averaged around $100k per new hire) and give you a buffer to level up, while startups offer no training and grow so fast that non-self-growers get outrun. Neither path is uniquely right, but learning on other people's money is a powerful safeguard.

  • A salary is a safeguard: you can't bankrupt yourself while learning
  • Vanguard invested roughly $100k of training per new hire
  • Corporations suit people who need more time before leveling up
  • Startups have no training and demand you 3x yourself yearly or get outgrown
  • Ignore 'hustle porn'; most people have under two weeks of cash on hand

I think you should go learn on somebody else's dime because Vanguard puts in it on average a hundred thousand dollars worth of training into…

Codie Sanchez · 10:00

if you go to a startup and you think I'm just going to like learn a little bit as I go uh-uh this is like…

Codie Sanchez · 13:00
#career#corporate#startups#training
Explainer1:10:30

Why access and relationships beat money as leverage

Sanchez argues that past a base level of cash, money becomes a commodity and access becomes the real currency. She recounts an Andreessen Horowitz partner saying he couldn't be paid to take her money, and that Sequoia now takes only non-profit dollars because what matters is access and ideas. As attention becomes the scarce asset, being in the right rooms with creators can convert into millions in effective ad spend, and declining institutional trust makes one-on-one human relationships worth more than ever.

  • Past a base level of cash, money is a commodity and access is the prize
  • Sequoia reportedly takes only non-profit money; access matters more than capital
  • Spend to grow your skill set and get into valuable rooms
  • Attention, not capital, is becoming the real commodity
  • Declining trust in institutions makes individual relationships more valuable

money is such a commodity you couldn't pay me to take yours

Codie Sanchez · 1:10:30

increasingly money is going to become more commoditized and attention will be the commodity

Codie Sanchez · 1:12:00
#access#relationships#leverage#attention

Story· 4

Story04:30

From covering human trafficking to chasing money and power

Codie Sanchez began her career as a journalist covering human trafficking on the US-Mexico border, confronted daily by violence and despair. Writing about an abandoned elderly woman named Carmelita, who believed the press coverage would reunite her with family, made Sanchez realise journalism could tell stories but rarely change them. A late-night talk with a professor convinced her that money, not politics, pulls the strings, so she pivoted to finance to understand power and protect herself.

  • Started in journalism covering trafficking and 'real death and despair' in college
  • Carmelita's false hope that press would fix her life was the breaking point
  • A professor's stress-test showed money, not nationality, separates lives
  • Concluded the people with money rule the world and back politicians
  • Chose finance to understand power, help others get it, and protect herself

I wanted to understand money I didn't come from it... but I thought maybe if I understand money then I could understand this thing called…

Codie Sanchez · 04:00

if you have money you're a lot harder to kill you're a lot harder to push around because you have options

Codie Sanchez · 07:30
#career-pivot#journalism#purpose#money
Story15:30

The Vanguard lesson: perception is reality in big companies

A year into Vanguard, Sanchez pitched an idea to break into Latin America and was told she'd get the job, only to have her boss reveal that peers thought she'd 'leave dead bodies behind her to get ahead.' She was actually just treading water, focused and quiet like a duck gliding while paddling frantically underneath. The job was handed to someone else, teaching her that in a big corporation perception is reality and politics is gamified, and that she never again wanted others' perceptions to hold her back.

  • Her focused, heads-down style was read as cold and selfish
  • She was 'treading water', not scheming, but perception won
  • Her boss gave her idea and the role to a peer
  • In big corporations perception is reality and politics is gamified
  • The experience pushed her toward the meritocracy of Goldman Sachs

your peers think you would leave dead bodies behind you to get ahead

Codie Sanchez · 16:00

if you're in a big Corporation perception is reality it is politics gamified

Codie Sanchez · 17:00
#corporate-politics#perception#career#vanguard
Story26:00

The one-line Goldman advice that got her promoted fastest

As a new Goldman analyst with no elite pedigree, Sanchez asked an intense, former-military boss for two or three things she could do to differentiate herself in her first 30 days. His answer was one thing: be here earlier, stay later. She did exactly that for a year, arriving before everyone and leaving after everyone, and was promoted and paid faster than anyone. Goldman's culture made the deal explicit: tolerate intense pain up front and earn a lifetime of not having to.

  • Goldman analysts have 'no' erased from their vocabulary
  • The differentiator was simply arriving first and leaving last
  • One year of that led to the fastest promotion and pay rises
  • Goldman repels the wrong people as deliberately as it attracts the right ones
  • Front-loading pain buys a lifetime of tolerating little

he's like be here earlier stay later that's it

Codie Sanchez · 26:30

tolerating pain for a period up front led to a lifetime of now I don't have to tolerate much pain at all

Codie Sanchez · 27:00
#goldman-sachs#work-ethic#career#discipline
Story1:13:30

How you do anything is how you do everything

Watching low-level employees at a friend's company wipe down the sink and counter after washing their hands, Sanchez learned their creed: how you do anything is how you do everything. She ties it to Bob Iger picking up trash on Disney park visits, a signal in a world of noise that says 'we clean up around here.' The nuance, taught to her by Bill Perkins, is that you needn't do everything yourself, but the things you do, and the culture you build, must be done well.

  • Employees cleaning the sink revealed a culture of doing small things well
  • Small details compound into the big outcomes
  • Bob Iger picking up park trash signals values louder than his time is worth
  • You don't have to do everything, but what you do should be done well
  • She fired someone whose sloppy customer email betrayed the culture

how you do anything is how you do everything right and just kind of like looks at me like don't you know that

Codie Sanchez · 1:14:30

if you are focusing on All the Small Things you'll never do the big things

Codie Sanchez · 1:16:30
#culture#standards#details#leadership

Takeaway· 6

Takeaway02:00

Why nobody interesting has a linear career

Sanchez argues that anyone with an interesting career has a divergent set of experiences rather than a straight line. Doing unusual things early skill-stacks you into a position where no one else can compete, because the specific combination of skills you hold is unique. She cites the Abercrombie & Kent founder who ran safaris and sold shoes, and her own blend of finance, Spanish and Latino identity.

  • Humans never really have linear paths
  • Divergent experiences stack into an uncopyable position
  • Skill stacking makes you the best at your particular combination
  • Sanchez's finance-plus-Spanish-plus-Latino mix became her edge
  • Ali's medicine-plus-YouTube-plus-Pakistani background is another example

anyone who has had an interesting career in my opinion has had a complete Divergent set of experiences

Codie Sanchez · 02:00

all of these unique things that end up skill stacking you to some position where nobody else can be better at it than you

Codie Sanchez · 02:30
#career#skill-stacking#differentiation
Takeaway19:30

Codie Sanchez's advice for women at work: Victor over victim

Sanchez urges women to choose being the Victor over the victim and to treat being different as a memorable advantage rather than a grievance. She rejects the idea of suppressing femininity, recalling how she wore boxy suits and cut her hair to seem more like a man early on, which was a mistake. A mentor taught her that male colleagues tend to want to father, friend or pursue you, and that reading which category someone falls into lets you engage authentically and to your advantage.

  • Choose being the Victor over being the victim, always
  • Being different in finance made her more memorable
  • Don't suppress femininity to imitate men
  • Male colleagues tend to father, friend or pursue you; read which
  • With older business owners, the 'father' dynamic and empathy win deals

choose being the Victor over being the victim always

Codie Sanchez · 19:30

I thought that I had to like become a man to get into the workforce and it could have been more opposite

Codie Sanchez · 21:30
#women-in-work#workplace#advantage#advice
Takeaway53:00

Don't uproot your life for a relationship into a life you don't want

Sanchez regrets leaving Goldman and international ambitions to follow a partner to Dallas, into a white-picket-fence life she never wanted, which bred resentment. Her lesson is not to avoid moving for love but to be careful about uprooting yourself into a life you don't want. With her current husband she screens for shared vision, not just compatibility, because two people who want fundamentally different futures will keep pulling at the seams no matter how in love they are.

  • Moving for a partner into a life you want can be incredible
  • Moving into a life you don't want breeds resentment
  • Compatibility isn't enough; shared big-picture vision matters most
  • Different desired futures pull a relationship apart regardless of love
  • She and her husband run in agreed multi-year cycles and avoid the word 'sacrifice'

be really careful about uprooting yourself for another into a life you don't want to live

Codie Sanchez · 53:30

do we want the same big things because if you... want kids and to live in London and your person... wants no children then it…

Codie Sanchez · 54:00
#relationships#vision#life-design#regret
Takeaway1:05:00

Great leaders sell a dream so big it replaces someone else's

Sanchez says learning to lead and build culture is what makes you limitless, and she only came to value leadership books after running a business. The essence of leadership is selling a dream so big it replaces someone else's current reality, echoing the line about teaching people to yearn for the vast and endless sea rather than to build a boat. Her mentor Jim at First Trust sold her a dream so large it pulled her into a role that, at the time, was nothing.

  • Learning to lead and build culture makes you limitless; failing to caps you
  • Leadership means selling a dream big enough to replace someone's current reality
  • Teach people to yearn for the sea, not to build the boat
  • A leader needs a 'hive of bees' spreading the mission, not solo effort
  • Jim at First Trust recruited her by selling a dream far bigger than the actual job

can you sell a dream so big you replace somebody else's that's what it means for somebody to come work for you

Codie Sanchez · 1:06:00

teach them instead to yearn for the vast and Endless Sea

Codie Sanchez · 1:05:30
#leadership#culture#vision#recruiting
Takeaway1:24:30

Take the biggest risks while you're young and have nothing to lose

Advising her teenage cousins and her younger self, Sanchez says take the biggest risk humanly possible while young, because responsibility, mortgages, kids and a big paycheck all make risk scarier later and failure barely matters when you're young. She would not put $1,000 into the stock market at 16; she'd invest it in yourself or in a big swing, like trying to turn it into a $100k business purchase. Treat that money as 'MBA money' for learning skills, not as seed capital for the S&P 500.

  • Take maximum risk while young; responsibilities make risk scarier later
  • Failure barely matters when you're young
  • Don't put a teenager's $1,000 into the S&P 500
  • Invest it in yourself or a big swing like a small business purchase
  • Treat early money as 'MBA money' for learning, not index investing

take the big risk now while you have no responsibility the more responsibility you get the scarier the risk becomes

Codie Sanchez · 1:24:30

I would take the thousand bucks and I would consider it your little MBA money

Codie Sanchez · 1:27:00
#risk#youth#investing#self-investment
Takeaway1:27:30

Charge for it: why skin in the game makes people follow through

Sanchez insists you should always charge for a product because people don't value what they get for free, and research and her own data show paid customers are far likelier to finish and act. Ali shares his own experiment: making YouTuber Academy applicants pay $5,000, refundable on completing the homework, so people actually show up. She and her husband even use money bets for fitness goals, and she argues you should pay premiums to friends and never ask them for discounts.

  • People don't value what they get for free; paying drives follow-through
  • Charging more made her customers more likely to finish and act
  • Ali's $5k refundable-on-completion course fee forced accountability
  • Money bets and paid coaches (trainer, nutritionist) buy speed via skin in the game
  • Pay premiums to friends' businesses; never ask them for discounts

your likelihood to accomplish something if you put skin in the game is infinitely higher

Codie Sanchez · 1:28:00

now what I do is yeah I say pay the five thousand dollars and if you complete the homework I will refund you the five…

Ali Abdaal · 1:30:30
#skin-in-the-game#pricing#accountability#value