Jordan Belfort: Wall Street Is Evil. But Here's Why We Need It.

the closer you've been following your. Equity Investments recently the jumpier. you likely are a lot of Americans have. concluded that the Wall Street game may. be rigged the whole thing is kind of a. scam but there's still a huge amount of. money tied up in it not just an. individual investing of course but in. Pension funds the whole world is tied up. in the American Stock Market so how. exactly do you succeed in it as an. individual we thought the man to ask. would be the man who's seen both both.

sides of this business legitimate and. less than Jordan Belfor The Wolf of Wall. Street with a new book The Wolf of. investing and he joins us now to explain. how you can make a fortune on Wall. Street can you make a fortune on Wall. Street you can but it takes time you. know I think it's I think listen the. mistake that people make is that the. average person is that when you don't. have that much money to start let's just. choose a number let's say just $10,000. right it's a random number right you say. to yourself if I'm going to really get.

anywhere as an investor I need to make a. big hit like to turn that into like a. million bucks I've got to find the next. Apple computer the next crazy crypto. token right whatever it some wild Le. successful investment right which leads. you to engage in you know wild. speculation short-term trading trying to. time the market and the truth is is the. opposite you don't need to start with a. lot of money to end up with a lot of. money by doing the exact opposite which. is holding for the long term and and all. the highest quality stocks and in.

relying on long-term compounding and. reinvesting dividends and making small. contributions along the way but. forgetting like you said the noise and. people are worried about their equities. this is the problem because as soon as. you start buying into that like you know. what I think the market might be going. down or maybe it's going to go up next. year you have to time that by buying and. selling you create taxable events and. also human beings by our nature we kind. of crappy stock Pickers and when you try. to pick individual stocks you tend to. lose most of the time what here's what.

I'm going to do I'm going to give you my. investment strategy and I'm going to be. as honest as I can be and you assess it. based on your expertise and tell me if. I'm right or wrong okay so I'll get down. of my recck room big screen TV with my. dab pen and my laptop and I'll turn on. Jim Kramer on CNBC and when he tells me. to buy I buy and if he sells says sell I. sell yeah you're getting financially. whip so I I think I is that working for. me no it's not going to work so I I I. kind of buried Kramer in the book I. guess I'm not going on CNBC anytime soon. for any intervie why don't you bury Jim. Kramer and this is a guy with an.

uninterrupted string of correct calls. by JP Morgan of this generation Sam. bankman Freed's FTX listen the best. thing the best thing was was interrupted. string of terrible calls by oh listen. he's had a lot of good calls because. he's on both sides of the market he. tells you to buy one thing on Monday and. sell it on Wednesday and back and vice. versa this guy literally is telling you. you they actually did a study on this. when they put up his recommendations of. what he said on on Monday and then a. Friday the exact opposite like one day. Day saying the Market's going up next.

day it's going down buy this go from. this sector to that sector that's a. historically mathematically. scientifically proven to be the worst. possible way to invest your money. they've gone back a hundred years the. scientific the academic studies and the. analysts can't pick the right stocks the. hedge fund managers and the mutual fund. managers can't beat the S&P 500 which is. the overall broader market and there's a. reason for that because all the. information is out there so unless you. have inside information which is illegal.

right and certainly the average person. is not going to have that or some other. way to beat the mark whether it's you. know high frequency trade with computers. that are lightning fast so some of the. big firms they'll time the market like a. millionth of a second better than an. average investor they get an edge but. for everyone else you can't beat the. market you just it doesn't work. especially when you deduct all the fees. the commissions and also the taxes from. short-term trading so let's say let's. say a hedge fund returns 15% one year. say that's pretty good right but after.

they take their 2% manager feed 20%. performance bonus right suddenly it's. not even beating the S&P 500 and that's. a good year most of the time they don't. even beat it without their fees so why. would anyone hand money to a hedge fund. so Warren Buffett asked this exact. question back in 2007 made a made a big. announcement bet a million bucks that I. don't care whatever hedge fund you are. you can't beat the S&P 500 over 10 years. and at first no one took the BET. eventually someone did with a what's. called a fund funds it was 100 different.

funds right and after year seven they. threw in the towel they couldn't even. come close to the S&P and that was. without all their fees and just you know. the fees they take so it's 20% typically. is a performance bonus right if the fund. makes money off the upside on the upside. but if the fund loses money the. following year they don't get any of the. losses so it's heads they win tails you. lose right the mutual fund industry is. equally bad so they're engaging in you. know basically asset Gathering because. what they do is they try to gather as.

many assets as possible money right. because they get their management fees. but the Returns on the average mutual. fund are dismal they don't keep up with. the S&P 500 which is America's 500. biggest baddest most profitable. companies so and that those 500. companies change so not this the SB this. year is not the same as it was last year. so what happens when you buy that index. as the centerpiece of your Investments. right you just hold it you're always. having the 500 top high performing.

companies in your portfolio is very tax. efficient now it's boring but it. compounds at about 11% a year and guess. what if you invest. $10,000 right and just compounds it 11%. a year and you put a little extra money. in whenever you can each month or each. quarter right over 30 years 40 years it. turns into millions of dollars but I I'm. I'm still caught up on the hedge fund. idea so Steve Cohen Ray Delio right all. these guys are billionaires right so.

world's biggest art collection so how. did they get so rich if it doesn't work. well for a time it was like the you know. everyone thought oh my God they're so. great the hedge funds so for many in the. 90s and 2000s like this the word was. really like this Mystique that you had. these really high performing hedphones. and there were a few there were there. were a few people that actually can beat. the market Ray Doo is one who's done it. consistently he's not taking your money. the average when they're really that. good they don't take an average. Investor's money they train their own. money and a few very very large.

institutions so those funds are not open. to the average investor but then all the. other hedge funds which kind of suck. right they're bathing in the Afterglow. of the aura of the hedge fund manager we. see like on billions right so this a. mystical hedge fund well guess what most. of these guys suck all right they. they're not beating the S they're just. not it's m it's historically proven they. don't beat the S&B and they take these. massive fees when they do win one year. and they always get that 2% managing so. Watch What Happens let's say you're. managing a billion dollars.

so before you even start it's 20 million. a year you're getting just before fun. even starts plus 20% of all the profits. and when you take those and how about. this I'll go one step further and also. when you have a hedge fund you have to. show activity Because unless you're you. can't just buy the S&P and hold it. someone will say well why would I give. you my money you're not doing anything. so they almost have to show activity to. justify their existence which makes them. engage in short-term trading and PE. human beings are just terrible Market. timers they and this is just over proven.

over a 100 plus years of studies that. you cannot trade in and out of the stock. market buying selling selling buying. sector this sector one day so it's just. a trap the way I look at it is this so. Wall Street creates massive value they. do wall Street's necessary you can hate. Wall Street despise them for what they. think they do wrong but Wall Street is. necessary they create massive value for. the economy they take companies public. right they finance the growth of America. it's needed they maintain the debt. markets the credit markets that's the.

useful side of Wall Street where they. create massive value then there's the. not so useful the Dark Side of Wall. Street where they create bubble after. bubble after bubble where they have. instruments of financial Mass. destructure they create for just. gambling purposes where they churn you. they have excess commissions and fees. and Rob the public blind so the question. right in the book was you know how does. the average person get the maximum. exposure to the good side of Wall Street. which is the great companies they take. public and finance that become huge. multinational so how do you maximize.

that but avoid the corruption all the. churning and the burning and the you. know Financial Bubbles and so for try to. and and play into what I call the Wall. Street theme machine complex which is. this advertising monolith where. basically they convince you like people. like Kramer to play the suckers game. where they actively if you go on CNBC. they're all day long trying to convince. people to play the short-term trading. game which is indeed a suckers game so. you go into a casino right we spoke. about about kri pack for gambling right.

so they own casinos the Packer Family. right so in a casino you you go in there. knowing that the odds are against you by. what 5% depending on what game you play. so the odds are against you and the. house will win over time right that's a. legit Casino the odds are against you. but what if you go into a corrupt Casino. where they have loaded Dice and a. dealing from the bottom of the deck. that's Wall Street so now not only are. the odds against you because you know T. to pick winning stocks but there's. people who have information that's more. timely than you they're trading ahead of. you they are charging excess fees and.

also all these Publications and new chat. and news with it's CNBC Bloomberg isn't. his bad right because they C most to. professionals but still trying to. convince people that you know you can. somehow figure out when you should buy. oil and then sell your meta and then. somehow go into a Steel stock and then. go into overse it's insane it doesn't. work and people get financially whips. saww and I saw it myself my own family. member very successful guy I start my. book off telling his story about your. brother-in-law yeah my brother-in-law. he's a very smart guy and he's I watched.

his portfolio get decimated through. short-term trading and using margin all. the things that they was he doing it. himself he was trying to do it himself. and you know following tips he heard on. TV or online and and it just and it's so. simple and what happened to him well. he's thankfully he successful he lost a. lot of money and then he learned his. lesson and I showed him what to do the. right way and he now he's building a a. proper portfolio for the long term so I. think the distinction is this you can. get rich in the stock market but not. overnight it's just it's it doesn't work.

you can't do that and if you try to get. rich by engaging in short-term trading. or picking like one stock you're. probably going to end up in the. financial por housee so the solution I. put in this book which is ironic of. where I came from right because I. committed fraud 30 years ago right so as. you said I've seen both sides right so. the solution in the book is is really. very simple to build a worldclass. portfolio and secure your future because. I don't think you can rely on Social. Security these days it'll be enough to. pay for your diapers when you're in a. nursing home by the time you get it. right so this is about you know.

empowering yourself financially and it's. about doing less versus more not hiring. experts less trading yourself less trade. it's about investing as opposed to. speculating now there's nothing wrong. with speculating it's fun right and if. you want to take 5% of your capital and. speculate and buy and sell that's great. there's nothing wrong with that I I. encourage people to do that because it's. good you can have fun with that maybe. you'll make some money but that's not. how you secure your retirement if you.

want to secure a great retirement you. start off young as possible right and. it's never too late by the way and it. doesn't matter how much money you have. to you can start with a little bit of. money you don't need a lot but the key. is making little small regular. contributions and not worrying do an. index fund is that what you're saying. well the main one is an index fund you. want to have an index fund S&P lowc cost. S&P 500 Index Fund and you want to have. it in certain types of accounts that are. tax deferred whenever possible and so. forth right then you also want to. balance that out with some you need to. have some Bonds in there a small amount.

depending on your age right and on top. of that some cash for an emergency and. then if you want to speculate you can. have let's say 5% for speculation but. the key is this don't hire an expert. like for example we've been conditioned. this is the Trap right so you're a. homeowner right so if your your pipes in. your house burst you're probably to do a. lot better off calling a plumber to fix. your pipes then trying to fix them. yourself right right right fair enough. right if you're having electric short I. suggest you call an electrician versus.

trying to go put on rubber gloves and. not get electrocuted you'll get a much. better result with the expert in that. too if you're sick you say your appendix. is about to burst right don't do your. own surgery have your wife cut you open. go to a doctor that's an expert at doing. surgery let him do the surgery fair fair. enough right that's true for almost all. things in life except Wall Street it's. the one exception to the otherwise. pretty much steadfast rule about seeking. out experts to help you get the best. result on Wall Street they don't get you.

a better result than doing it yourself. they get you a worse result because of. all the fees the commissions the. performance bonuses and also they can't. out guess the market the market is too. hard to beat now you have again there's. a few people that can do it they're not. taking your money how I want to focus on. them for a second because undoubtedly. they're the touts they're the they're. the people convinced the rest of us that. this works right because they're so rich. how do they get how did those people get. rich. so if you look a guy like you know for.

example like aay Dalia who's been he got. in very early into the game right and. he's an incredibly brilliant guy he's a. great stock picker and whatever his. proprietary method is or a warm Buffett. right you know these there's a few. people out there and this is what one of. the great studies was from an economist. named Paul Samuelson right in the 70s. and this is really what started the. shift into index funds he did a study. that went back a hundred years all the. way to the earliest days of record. keeping right study every mutual fund. out there since the 1920s all the stock.

recommendations since 1890s right and he. came to the conclusion he goes okay. maybe there were a few people who can. outperform the S&P but they remain. remarkably well hidden he couldn't find. any couldn't find this is like a top. want a Nobel Prize the guy for this. right so that was really the beginning. that was like the shot across the bound. now Wall Street did everything they. could to suppress this so the first guy. to try this was was Jack Bogle from. Vanguard you know Vanguard right so. Vanguard is a place that great great. place where you could buy the best index.

funds with virtually no expenses I. strongly recommend Vanguard right and. there's a few others as well but Jack. Bogle was the first right but when he. started Vanguard Wall Street went out on. the ultimate smear campaign for like a. decade suppressing everything about. Index Fund saying it's the stupidest. thing who wants to be average dyus which. is a huge Mutual fun company said no. fees no way like actually in public in. the Wall Street chart a full page like. if you don't like that was marketed to. to the people who were The Gatekeepers. to investors so if they're not cuz Vango.

doesn't pay fees right so if they won't. pay you fees don't put your clients in. their funds instead put them in our high. commission funds we'll pay you a lot of. money so for many many years Vanguard. languished and was suppressed right it. finally got traction after the crash at. ' 87 for the first time all of a sudden. you know the Mirage evaporated when. everyone lost a lot of money and for the. first time Vanguard started to get a. fair Shake in the market and then slowly. but surely they started to grow and grow. and then as the internet came about and.

the high-speed connections and platforms. for Direct Communications with customers. it suddenly became a mass Exodus out of. this like you know sort of high expense. mutual funds right which I think that. Bogle saved the public probably a few. hundred billion by now in fees mutual. funds were ripping people's eyeballs out. forever now they still do crappy their. performance is crappy compared to the. S&P 500 but for years and years they're. just ripping the Public's eyeball that. was the most lucrative industry out. there and Wall Street just spent you.

know countless hundreds of Millions on. advertising campaigns and whatnot right. to make people think this is the way to. go so your mer Lynch is bullish on. commercials bullish on America right all. the you know t- R price I want to point. the finger at any one of them right but. now they all offer this Ultra lowcost. index options which historically is. outperformed people trying to pick. individual stocks forever it just it. outperforms people cuz people are really. crappy at picking stocks and also you. know there's another part to it as well.

right just trying to time the market it. it plays into all our worst impulses so. like you said right now people are. scared right and rightfully so the world. seems to be on fire and you know I watch. your podcast all the time and it scares. me sometimes it's a scary world right so. you would think that okay the US econom. is Laden with debt right which is true. right it's got fundamental problems. China's going to take over the world. right well when I was you know in in. just getting started was Japan taking. over the world which turned to be a. fallacy and they had their own problems.

so I don't know whether China is going. to take over the be the biggest economy. it's going to surpass the United States. I don't know if the stock market's going. to go up down sideways or around circles. for the next five years I how do you. don't know anyone tells you they know. that is lying to you so to sit there and. try to watch the news and trade against. like what's happening in the economy and. what's happening in the world is a. Fool's errand you're not going to. succeed like that unless you're one of. these rare individuals who full-time as. this unique gift so how but then again.

though look at all these massive. companies that have been created in the. last 20 years like you know Google meta. right this is huge company not Nvidia. with artificial intelligence so how do. you get exposure to all that without. having to pick the winners from the. losers the answer is very simple you buy. them all in one investment which is the. snp500 and then you sit back and let. time do the heavy lifting for you so you. don't know if to watch Jim Kramer at all.

if you watch Jim Kramer for for. entertainment if you like that kind of. bloviating humor good for you right me I. personally don't like it the worst even. worse than that is if you watch Jim. Craven and you happen to opt in like if. you have to answer one of the emails or. the on the website they'll start. barraging you with emails I did this as. an experiment I was like you know a guy. that injects up with with the virus to. see how sick you get right I actually. opted into crr's you know little thing. online and I started receiving a barrage. of like a 100 emails about join his. special Club will alert you to what. stocks are going up and down in real.

time I mean it's like this is insanity. but this is a major Network right that's. you know giving investors crappy advice. now on the flip side here's the weird. part they also have good stuff on that. Network like there's legitimate news and. that's the problem so they mix in. legitimate news great reporting. interviews with great CEOs and you learn. about the economy what's going on in the. world but they interspersed that with. like this Market giving advice and it's. not it's not nonsense you you you people. can't beat the market and I saw it play.

out my brother-in-law many of my friends. back in when the bubble burst in 2008. and even worse by the way in 2000 with. the.com bust right so every time the. market busts out all the gets. Exposed Of course and all all of a. sudden people thought they were expert. day Traders or expert Market timers they. were like basking in the globe just an. up market like I say in the book a. rising tide lifts All Ships right and a. falling tide well it lowers All Ships. right so you see the truth come out warm. upet says you know until the tie goes. out you don't know who's not has no.

clothes on who's swimming naked right so. but you said at the outset that there. are people who do succeed in the market. um because they have inside information. right it feels like there's a lot of. that there is yeah how does that work so. I think there's there's different levels. of it right there's like the full-on. criminal stuff like you saw in the movie. Wall Street with Gordon gecko right. where like people are actually paying. people in moles and stuff like that to. get you know information that's not. public paying off directors having.

inside links to the company or law firms. that are doing deals right that happens. for sure and people do get in trouble. from time to time and go to jail right. but Martha Stewart right exactly right. but she was like kind of you know a fall. person she sure was like I mean people. did a lot worse than motha Stewart right. I mean yeah why they put her away you. know it's hard to say because she's you. know famous and she's a big Target and. you know it kind of sucks when you're. famous in a big Target and they want to. come get you right especially if some of. your views aren't that popular they want. to come after you right so but that's. sort of the cliche type of insider.

trading where they're just literally. buying and getting moles and that's. highly legal then there's the softer. side of it which is where these big. hedge funds have these like analytical. firms that are getting like research. that's inside research so like for. example they're like I had a friend who. was a a very big short seller right and. he actually had like people waiting. outside of a of a warehouse counting the. number of trucks that were leaving the. warehouse to try to like you get it to. see how are they really shipping the. amount of goods they doing this deep. type of research which sometimes crosses. over into inside information so what.

what is the line I mean you're allowed. to be informed you're allowed to be. informed but theoretically you should. not be in possession of information that. is non-public everyone's supposed to. have access to the same information at. the same time to make a fair market. right and generally speaking it's true. for everybody all the average investors. but there are certainly people on Wall. Street I mean you'd be naive to think. that you know an analyst that has. special relationships that's doing the. investment banking deal so someone. raises you know $500 million for a.

company you tell me the CEO and the. owner of that firm are not like having. little conversations little inklings. here and there so I'm sure that's. happening that's much more difficult to. prove so it's a lot of it is buried. under like you know guidance in. financial reports so they'll issue an. anal report right and you know the anal. report will give sort of plausible. deniability for why they think a stock. is going up or down right but even then. I mean I I I think that's difficult to. prove which is why you don't hear a lot. of those cases no the SEC doesn't seem. to bring any well the SC I have a whole.

history of the in the book the SEC is is. a ridiculous organization so was. conceived listen the first Chen was was. was was Jack Kennedy you know or Joe Joe. Kennedy you know all Jo original wolf of. walls right so like you know the boot. leer yeah from the beginning it was set. up with a two-tiered system where the. big firms basically were protected right. and you know when they got in trouble. they did things so egregious that it was. undeniably egregious they pay a small. fine and move on right which is why like. Goldman Sachs for example right now. Goldman Sachs is serves a vital function.

to the US economy and they're also. behind every great crime or the biggest. crimes that are out there including my. movie that was The Wolf of Wall Street. was financed by these Malaysians right. the one MDB fund that Scandal that was. just coincidentally and who is the. banker that that paved the way for that. Goldman Sachs out of out of there I. think it was in Malaysia or Singapore. office that banker there that provided. the funding and you know got double or. triple the normal fees for doing it and. that money got siphoned off that's. classic Wall Street so on one hand they. create massive value on the other hand.

they rape and pillage the village and. it's the average investor and the. average person that bears the brunt of. that with the bailouts and subpar. returns so well just to follow up on the. Wall Street investment firm I mean. information firms research. yeah I mean everyone uses those correct. right hedge funds are are very much. using them so they got in trouble though. in the past in some cases they pay. employees or former employees of compan. to talk about what's happening inside. the company right that's very common yes.

that's so that's same lobbyist and it's. like so how is that not insid trading. I've always wondered well again it's. it's not in if someone gives you an. overall you know sense of what's going. on that's like nothing that's not out in. the public domain but it's sort of like. an Insider's perspective versus. information on like are sales going down. is there a problem with manufacturing. that's not public right so that's when. it crosses over the line and it's a gray. area right but it's very common in hedge. funds to use these research firms that.

go out there and get nonpublic. information and there's a very fine line. like a drug trial like there's a drug. trial going on like you know how do you. know how the drug trial is performing. well if you're imagine calling up all. the people interviewing people that are. in the drug trial and trying to figure. out yourself or people are intimately. involved with administering the placebo. studies or double blind studies they're. all over that stuff it appears that. members of. Congress consistently beat the S&P 500. in their personal invest Nancy Pelosi. and a lot of others py especially she's.

the famous one yeah yeah so how does. that is Nancy py do you think a stock. picking genius no she she has to be. operating on information that's. nonpublic or is not wouldn't that make. her a criminal yeah but you know look at. Joe Biden right now I mean look what's. going on right now like this listen you. think he's a good stock picker Joe B no. I think he's great at lering money. though I mean honestly what from what. I've seen right now I don't get it like. just imagine if it was Trump who was. president yeah what every single day in. the front page of the New York Times The.

Washington Post and every other. publication would be like $40,000 check. for $20,000 check from his his brother. like it'd be game over cries for. impeachment yeah it' be like the world. falling down he's in China's pocket but. it's like we're living in an alternative. Universe right now where people in power. especially on the on on the Left Right. can operate almost with impunity and. Pelosi is a perfect example she's not. the only one but it's inconceivable that. someone could have that higher return. the mark when everyone else can't do it. so what's the edge The Edge is she knows.

key legislation and also you know maybe. someone's whispering in her ear okay. because you know they want to be on her. good side right so it's it's hard to. prove that so but it's just Prime of fa. though so if you if what you're saying. is true and that is that the most. sophisticated people in the world can't. beat the S&P average than any member of. Congress and I think they are on average. dumber than than the population. especially the career politic for sure. yeah there's no possibility they could.

do that without that inside information. no it's not possible but again so how do. you go proving that right they have to. issue subpoenas and listen I think that. the in in this case the solution is they. shouldn't be allowed to trade these. people yes they should not be allowed to. trade it's insane that they're allowed. to and you know as you said it's Prim of. facial right you know if it looks like. smells like well guess what. yeah it's and that's you know or. it's in this case right so. listen she's done incredibly well in uh. area where like the most professional.

investors struggle to even match the. index so somehow she's doing three times. as well I don't know why is no one ever. taken that seriously I mean this is like. like a feature of internet memes but I. don't know I mean don't we have an SEC. to look into that I mean what SEC is not. going to look into that sort of stuff. because they don't they don't want to. make an enemy because they're funded who. funds them you know funded by Congress. the budget's tied to Congress right. there's a committee that's it's the um. Financial Services committee right so. that that funds the SEC but how does it. make you feel I mean you got in a lot of.

trouble for fraud but I deserved it so. like I right but so do they yeah I know. but like I I never one thing listen I. admit that after 2008 I got a little bit. bitter I was like you know what these. people have bankrupted the world economy. and no one went to jail basically some. one shnook in Germany went to jail right. so I was a little I said you know what. that's not really fair but you know I. don't think it's you know an empowering. way to live to say just because you know. I went to jail other people should go. too I think Jail's terrible place right. and um you know I did my time and um and.

I made the best that I wrote my first. book in jail right which has turned to. be a great thing but you know I learned. from that but I don't then wish it on. other people how did you I mean a lot of. people go to jail few write books how. did you how did you do that it's a great. story so believe it or not when I go to. jail right how old are you uh let's I. was uh 41 years old 42 yeah it's. terrible time to go to jail right and. lost everything right um and I go like. two kids at the time there which was. breaking the news to them was the most.

heartbreaking thing ever I mean like. literally it was like a too much crying. and you go I still get emotional about. it right I bet and had to tell them like. you know Daddy made mistakes and now. he's in the hysterical they were 11 and. N at the time right so um I go to jail. and it's not the worst jail in the world. not worried about slipping in the shower. so it's like a minimum security but jail. sucks right who's my bunk mate Tommy. Chong from chichin Chang what was he. doing there so he's there for selling. not marijuana but bongs bongs it was the.

most ridiculous thing ever so he's doing. a year in a day a year and a day for. selling bongs I'm like like he's. doing a year in a day for bongs I should. probably get 3,000 years for comp. compared to how long did how long are. you serving I 22 months yeah right so. he's there for a year and a day and you. know the first few days you know there's. not much to you just tell each other. stories and I'm telling him stories. about my life the insan did you know who. he was of course yeah they put us. together we shared we shared a cell yeah. cuz I we were both high-profile so they. just put put us together right so they. can watch us both at once right so in.

jail as in normal life all the famous. people know each other basically right. so and he's a great he's a great guy and. he was he was writing a book at the time. and I'm telling him stories and he's. just rolling just laughing hysterically. every night right and the third night. he's like you know I thought you were. making this up but my wife Googled. you and it's like all true in fact your. sistant know knows you from a father. from back in the day he was a friend of. by right he's like this is you actually. SED the boat you crashed these cars you. did all this insane you made all this. money and all these drugs goes you have.

to write a book and I'm like really you. think my life's exciting like cuz what. it's your life matter how crazy your. life is it's yours you don't think right. you think it's just normal I'm like he's. like I'm Tommy Chong I think your life. is just insane because write a book so I. I started trying to write and I was a. terrible writer terrible I couldn't. write anything I never written before. like that you know so after like a month. I'm like oh this is just not working I. go to the prison library and I stumble. upon a book called bonfire of the. vanities like Tom Wolf of course I pick. up this book and I'm like oh my God I.

want to write like this so I I plowed. through the book and then I I started. with the yellow highlighter and I used. this book like a textbook and I taught. myself to write by modeling Tom Wolf so. it's like I had a model now and I spent. about three months just every I mean. every metaphor how he used grammar how. he described locations how he used. conflict and I really started to see my. writing dramatically improve so I wrote. about 100 pages when I was in jail and. then I ripped them up I didn't think. they were good enough I got out of jail.

with no pages but I had a skill now. right so when I got out I was like you. know I don't know what to do with my. life and I was like maybe I'll just. start trying to write again right so I. wrote about 12 pages and I'm like wow I. think those are really good like I. thought they were pretty good and I hate. my own writing always right it's like. when you write you're it's very like you. always hate what you write right so I'm. like I think this is pretty good I sent. to a few friends and they're like. laughing like oh my God it's the funny. I'm like really so I sent it to a book. agent I knew very casually just a casual. friend right so I call him I said I want. to you know write a book he goes oh.

great let's get you a ghost right said. well I want to write myself he goes can. you write I'm like I'll send you the. pages I sent him 12 Pages next day he. calls me back he goes did you pay Tom. Wolf to write those pages it was like. that close to Tom Wolf's voice my first. draft right I'm like no no I wrote it. myself he's like it's really good he. goes like write 10 more pages so I said. all right so it took about took me a. week to write 10 more pages I wrote. another 10 pages I send him the pages 15. minutes lady call she goes stop. everything you're doing you have no idea. what's about to happen to your life this.

book is going to be a masterhead m I'm. going to get a movie made about this. we're going to get Leo dicapri to play. you right I mean right from the start. right I was like I thought he was. delusional right but I didn't have much. going on back then right so I was like. screw it so I you holed up and literally. I had a little tiny apartment and I. spent one year just like doing 18 hours. a day writing the book The Wolf for Wall. Street right about on page 60 he took it. down to Random House who bought the book. I got a nice advant so like at least. live right and then when the book was. finished about a year later it went.

through seven edits cuz I overwrote it. got it from a th Pages down to 500 pages. and then when it was still a manuscript. it became a bidding war between Brad Pit. and Leo DiCaprio yeah it wasn't even a. book yet I know was crazy right and then. you know Leo brought in scores and I. always love Leo so I sold to Leo and. Scorsese after a nice bidding war and so. began you know the story of The Wolf of. Wall Street what happened with the movie. and then there was a delay by the way. for 5 years because that was 2007 and. then the writer strike it and it got.

delayed which ended up being a great. thing and this is really empowering for. all all the listeners I'll tell you why. because when I when they wrote the the. script when the script was done by a guy. Nam Terry Winter who adopted the book he. did an incredible job the first draft of. the script was amazing right but it. ended with me in jail like because I. went to jail and got out right and that. was the ending of the movie of The. Script right there was this delay then. for four years after the writer strike. and during those four years I got very. wealthy again going out there and. speaking and training entrepreneurs and. teaching sales right so finally four.

years later when Leo called me go we're. ready to go he came back to my new house. I was living in a mansion on the war. he's like what the hell happened to you. like in four years I was in a tiny. apartment now into a very nice house. again I'm like oh I'm do this stuff. around the world I showed him my clips. from live on stage he's like wait till. Marty sees this he's going to go crazy. they rewrote the third Act of the movie. and made it a comeback story so yes so I. kind of rewrote my life story when were. you happier at the peak of of your. success pre-conviction or on the.

comeback comeback I was never happy. before why number one I was massive drug. addiction yeah like I'm literally. massive drug addiction what were you. using Quaaludes and cocaine Quaaludes qu. is this the 70s 70 you know I I where. you get qu I'll tell you how so we when. I got really wealthy you know they made. them illegal in the United States right. a long time but but in Switzerland and. Italy and Spain so we were going count. to Country and like buying out thees of. all the L from overseas and bringing.

them back into the United States just. not to sell them just to take them just. to eat them w we weren't dealing them. just consuming massive quantities of. these Quaaludes right and I got so. wildly I was taking about 10 12 a day. get very D yeah yeah and like one of. them would knock out a 200 lb Navy Seal. for eight hours I would take four and. walk around like what so what was the. appeal of that you know um Euphoria. incredibly euphoric they get this like. first you get this tingle phase and then. you get like the slurs and the happy.

drool you get to the drool phase and. anyway it's incredibly euphoric and then. I said well what's the drool phase like. the drool phase is when you're like. drooling as you're talking but you're. like well drooling is not a big deal. baby's drool I Dro you know and when. you're slurrying you're like baby slur I. slur it's always a justification but. then the problem is is the fourth phase. is unconsciousness baby Dr that's a. great that's the best justification but. phe four though is is unconsciousness. which is a problem so what do you do. then well a responsible Drug Act will. then take cocaine to make sure you don't.

go into course right so I start to. balance it out the yin and the Yang come. on cocaine which is great worked great. the problem is cocaine makes you anxious. so I needed Xanax to get rid of the. anxiety right so I take Xanax to call. the anxiety but then I still need. something to kick me over the edge with. sleeping so I took some ambient to sleep. and then some moring for the pain I had. and before I knew it I was taking 22. drugs at the same time it was like a. human Petry dish right and I was just. incredibly high all the time and running. I know I'm very lucky I know I don't you. know I always wonder why I didn't have.

any permanent damage yeah right I think. most was not a big drinker I think. alcohol is like that wild card alcohol. and quaal would kill you yeah it's it's. a wild card it's like gasoline on the. fire so um I was very fortunate I got. sober in 97 how went to rehab I went to. rehab I got sober what's withdrawal like. from qus not bad it wasn't that bad you. know it for me it wasn't so much. withdrawal was the problem it was more. like just I needed like an adult time. out I needed I was so dumb with it like.

I think you know people can get sober in. rehab people can get sober in the rooms. of Alcoholics Anonymous right you can. get sober anywhere but you have to be. ready to get sober yeah you if you're. not ready right you could be in the. world's greatest rehab and you'll just. relapse you'll run you'll climb over the. wall as soon as you got you'll use again. I was done I I I I like my life was so. out of control I had my kids were. starting to get older now four and five. years old so I was like I got to end. this so I know I was very happy to stop. using drugs right so that was in. '97 I had a problem in.

2009 where I had like had some terrible. run of like five surgers in this. shoulder and five s surgers in this. shoulder I had really bad bad back the. whole thing so I was taking vicadin from. the doctor from the doctor right and. then I got off of that and went on. something called Suboxone oh of course. which is a disaster in its own right but. I I could function on then I finded IBO. game you know IBO game yeah and I got. completely that how did that work well. you know I I was on this low dose of. Suboxone for like 10 years and and like.

didn't affect me but it's was like it's. just not who wants why did they do that. because the pharmaceutical companies. make a fortune with it so they get. everyone addicted to opioids can you. explain yeah what that Soo so so. Suboxone so what happens is with the. opioid crisis right everyone's taking. Oxycontin and Percodan and per peret and. vik all these right and they're giving. out like their candy all over the place. right so this this massive opio crisis. right when they realized that especially. ox cont and fental was so addictive and. people were like dying they said we have.

to have a solution so they put people on. something called Suboxone Suboxone is. what they call a partial opioid Agonist. meaning it binds to similar receptors. but it doesn't really get you high and. it you can't really it's very hard to. overdose on it it's just like the modern. methodone exactly it's exactly what it. is right so it's much more long acting. and you could be on it and no one knows. you're on it but your mouth maybe a. little bit drier and so forth you're a. little bit tireder at night but. generally speaking if you're really. careful then you know you can live on. that and it's not the worst thing in the.

world it's far better than does it. affect your cognitive ability not at a. very low dose but the problem is most. people don't stay at a low dose they go. up and they go up because they get a. little bit of a high from it so they. abuse Suboxone and it's like a life. sentence and and it's like you're not. good for your liver it's you're taking. an opioid right yeah so I was on that. for a long time in a very low dose and. fin I said you know what I'm just I want. to be I don't want anything in my system. so I went and did IBO gain in Mexico in. Cancun which so everyone you know heard. iban iban is is a naturally C it's a. plant right at Africa hallucinogen it's.

a very powerful hallucinogen but for. some reason it binds to the same opioid. receptors as as as morphine right and um. you know vicodine right and it resets. them so it's this weird thing it resets. you it brings you back to pre- addiction. so when you're done with this 12-hour. nasty scary the trip is scary talk. happens it's not fun I'm like I'm where. did you do it Hotel I did it in in a. clinic in in Cancun called Beyond which. is a I mean I recommend this place to. anybody it's amazing and they really did.

an amazing job very safe very all doctor. supervisor almost hooked up to you know. heart machine because it can be t on. your heart right and um and they really. like support you emotionally right and. when I did this wait but what happens. you take it I did I got trip the. scariest ugliest like terrible trip like. I was so I was petrified before I. started by the way because you hear all. these horror stories about IBO game. right where like you're seeing your you. know dead people talking to you and your. fathers talking to you from back you. know my father's right so you see all. these visions and stuff and you hear a. lot of noises and like bugs it's.

terrible um and was it as bad as you. thought it was pretty bad it was I was. so I was petrified I'll admit it I was. pet the whole time the first six hours. is brutal the second six hours is just. like get me out of this room I want like. you're like diaper boy want to do a. primal scream right but but what I did. feel no no is scary as all right. I'm telling you it is not fun at all. right but I did feel it like burning out. my re I could feel it my brain working.

like I knew it like I knew as was. happening like I'm done with it like I'm. not going to need this stuff anymore. right so anyway so after it was over and. like I recovered like you know 12 hours. I got out I never did another you know. um any morphine or any narcotics ever. again that was it was done amazing yeah. it resets your receptor did it affect. you in any other ways um you know some. people I think have more more of a. spiritual journey um because it's great. for PTSD as well like for veterans right. so right now they're trying to fund. studies for veterans was very helpful.

with PTSD right I I didn't think it made. that many changes in me I was in a. pretty good place when I went in there I. just literally had a physical like a. physical addiction that if I didn't take. this stupid drug I'd get uncomfortable. and I didn't want to have that like I'm. traveling all the time right so for me. you know I didn't feel like I made any. profound changes other than that you. know for the first 45 days I had to. learn to be like completely sober again. so was even though I had no physical uh. withdrawals I had some postacute like. mental I just didn't feel great but then.

after like 45 days and suddenly the all. the clouds lifted and I you know felt. terrific again so it was an amazing gift. that I gave myself and I would I would. strongly recommend this to anybody who's. suffering from you know opioid addiction. right now it's certainly a better. solution than Suboxone and um and you. know for me it was it was life-changing. so it's great and so you've never been. tempted to go back to anything never. again no never no but I mean I wasn't. even was I wasn't using Suboxone to get. high it was it was just a maintenance.

thing because I got addicted to these. damn painkillers when I after my. surgeries right so I was using it at at. a dose it wasn't like I was trying to. get high so I guess if someone like. reluctantly put on Suboxone because they. were like a Drug Act and it was you know. they just they had to because their life. was so out of control um I guess they'. have to probably work through some. therapy as well afterwards but you know. I think that it's really helpful for. that too in other words some people that. go through IBO game when they they. emerge they're like they get this new. perspective on their life why would I. ever want to use opioids again it's like.

disgusting and and terrible so um but it. is incredibly powerful like is no no. joke it is no joke but like I've tried. ketamine you know like it's a great. thing for that use ketamine now to expan. your brain I've tried other hallucina. I've tried mushrooms right you know iall. gain is in a class of itself it's like. not like no one ever Abus IO gang you. you don't like you're not doing IBO. let's have a fun trip on IBO gang it's. like no it's like you know it's like. let's go to the crazy house and and like. you know hold on for de life for 12. hours and and then all your addictions.

are gone and and it really it works it. actually works that is wild yeah do you. keep in touch with anyone you were on. Wall Street with I do yeah I still keep. in touch with some people uh from time. to time I speak to the know Danny the. Jonah Hill character other people that. my mostly people that were my good. friends before I still speak to you know. but a lot of the people were like you. know we employed about 4,000 people at. Stratton over the years probably more. like 5 or 6,000 people and a lot of them. you know they come and go I run into. them from time to time but you know my.

new life is is very different so for the. last you know since 200 N right I've. been out there coaching and you know. mentoring entrepreneurs and on how to. build businesses and how to do sales and. increase their you know marketing. capabilities right and I never talked. about Wall Street never like I never. wrote a book and that was really my core. competency right and what really made me. do was honestly was my brother-in-law. when I when I kind of saw him like just. getting whips s I'm like you know what. like there's two sides to to I think to.

retiring and being wealthy or at least. comfortable one is you want to make. money when you're in your working years. right so that's we all have to do that. and you want to make as much money as. you can hopefully doing something you. like that's part of the equation right. the next part is what do you do with the. money that you can save from from all. the hard work how do you put that money. to work in a in a very safe responsible. way that's going to outpace inflation. significantly that's going to compound. and allow you when you're ready to. retire. have an amazing life I I I believe that. people deserve that so I I look at this.

book as it's a gift if you read this. book really it's such it's a it's like a. blueprint and it's really simple it's. like not that complicated but you know I. I knew that if I wrote the book in a dry. way people would not read it so I wrote. in a very funny more story so it' be. really engaging but as you go through. that you get this but I consider to be a. turnkey formula for a portfolio like can. I just ask a dumb question so the S&P. 500 is 500 stocks right but they're not.

all in the same tier right at all I mean. they're thriving emerging companies. turning out a lot of profit and then. there are a lot of older industrial. companies that aren't so why wouldn't. you just take the make your own S&P 15. or 10 or 50 why would you which ones. though and how do you know which ones. are going to win and which ones are. going to lose so here's the thing right. human beings and even analysts I mean. any even experts just they're terrible. at picking the winning stocks it's too.

hard so you you're just imagine. everybody is trying to do the same thing. what's the next winner what's the big. winner right so all the money is chasing. after this this pool of shares right so. the question is you know any given. moment you know the way you know. economics would say is that the market. is fairly priced In This Moment based on. all the available information that's out. there this is what every single. individual stock is worth right now over. time. right when you buy the S&P now remember. the S&P 500 is the 500 biggest most.

profitable companies in the US they're. in 10 different sectors but the S&P the. index committee every quarter will meet. and say okay based on the US economy is. the waiting of each sector correct do we. have enough in information stocks do we. have enough in Industrials how. Healthcare right so if you go back like. 30 years Industrials is one of the. biggest sectors out there but then we. exported on manufacturing based to China. right and suddenly the financials become. really big and also especially computers. and information and Healthcare so the.

biggest ones are now Healthcare and and. computers Information Technology those. are your biggest sectors so what happens. is the S&P will reweight itself every. quarter to match the US economy and any. of the companies that are either. underperforming right or becoming less. relevant to their sector will be. replaced by companies that are doing. better and are more relevant so you have. at any given moment the 500 best. companies all done for you for free by. the S&P index committee who's selling. that information making money in a.

different way they don't make the money. you can't invest in the S&P index. because it's an index you need a fund. right that so so there's a very big. difference because when the S&P first. came out you could only watch it there. was no way to invest in it it was like a. benchmark how am I doing compared to the. S&P you couldn't buy it you'd have to go. out and buy each of the 500 stocks which. is cost prohibitive and not you know you. could just time prohibitive as well. right so when the first S&P 500 Index. Fund came along it allowed people for. the first time ever to buy all 500. companies in one trade right which is.

incredibly tax efficient and time. efficient now what else happens once a. company goes into the S&P all the. institutions have to buy it so there's. almost a self-fulfilling prophecy part. of it as well right so if you have. information like inside information. you're one of those rare people that can. somehow like one of 10 million people or. 100 that could somehow figure out which. stocks are going up are going to beat. the S&P God bless you right but my. chance the chance of to everyone. listening is that's not you right you're. not going to be able to beat the S&P you.

don't think that's me you know you're. even with my Jim Kramer strategy you. don't think it's me there's so much so. much talent as as a speaker God would. not give one man so much talent and so. much inside right right right so anyway. so so I I really it's been proven like. I'm not just saying this it's like it's. been proven by every study when you read. the book I go through every study in a. very funny way and then when you like. the last chapter is called meet the. instead of Meet the I. call meet the so who are the. well the are the Jim. Kramers of the world these are all the.

who are out there and he's just. one of all the online the Charlton on. Tik Tok people these five stocks are. about to moon what the I mean come. on like this stuff is littered all over. the Internet trying to bait people into. making stupid investment decisions that. are self-defeating it's the seminar guy. who tells you to buy the magical trading. system that's going to beat the market. you could turn $50 into $5,000 in 3. months in your bathroom from home with. my algorithm well it's so great how. you're not using it yourself why you. freaking Hawking this it's so ridiculous. but this is what and people fall for it.

right they do they all the time and they. end up getting destroyed and you know. when it really hits them when they're 55. 60 years old and they don't have the. money they should have if you follow the. advice in this book which is an arguably. the best advice Warren buffer would give. you this advice seriously it's an. arguably great advice and that is to. play the long-term investing game. relying on compounding meaning you start. off with a small amount as much as you. can right and then add to it a little. bit each month whenever you can as much. as you can and then also reinvest your.

dividends so when you get quarterly. dividends because the S&P pays a divid. reinvest those as well and just forget. it don't worry about what's going on in. the world like you say the us econom is. going to go to okay maybe it will. maybe it won't who knows but here's the. deal no matter how shitty the US economy. gets you're still going to have really. big companies out there that are raping. and piling making a fortune out there. like even the S&P 500 half the business. is overseas they're multinationals right. so you're getting overseas exposure as. well and you know listen I'm also as.

much as America's broken I still a. believer in the American system of. capitalism I've traveled the whole world. I've never seen a country where they had. this like the drive and the Ingenuity. that we have the US is a special place I. don't care what's wrong with it it's a a. special place and also compared to what. it's the best bad option out there right. so I I really believe and then also. there's a couple other Investments you. want to make to balance out risk right. you want to have a a what's called a. bond fund in there but again none of. this is about trying to pick which bonds.

are going to pay more than others you. you can't do that you're trading against. Bond professionals that are like going. to rip your eyeballs out every try. trying to beat the market so you want to. be engaging in these in these like index. it's called passive investing yes not. active passive investing right it's. exactly the opposite I told people do so. if I could sum up your advice it would. be ignore the experts and be passive not. active 100% nor the experts especially. Jim Kramer but by the way I call I I I. I'm not I'm not I call him a carnival. baring ass clown okay but I mean that's.

that's totally fair fair but it's F fair. and everyone you like when I was do my. legal vetting they got that problem. there at least once a day I watched Jim. Kramer on Sam bankman freed so just to. make myself feel good that's well that's. another story to the whole crypto world. right with Sam bman freed so he got mean. listen I I knew that was going to happen. I think I was asked but maybe about year. but what's going to happen with Sam back. and said this guy's to go to jail for I. don't listen I hope I don't think he. deserves life in jail no I agreee but. you know he's probably to get 20 years. very few people deserve life in prison. you know so but he's uh he's getting for.

a world people who started the Iraq War. doe but other than that uh I agree. Jordan bord thank you so much my. pleasure great to see you thanks thank. you take. care.