The Principle Podcast The Principle Podcast

Today’s conversation is about building and buying businesses with the expert on Holding Companies—Michael Girdley.
Michael is an investor based in San Antonio, TX, with 11 ventures in his portfolio. He’s garnered a massive audience on Twitter, where he shares 25 years of business knowledge, much of which we unpacked in this conversation.
Expect to learn Michael’s step-by-step process for finding amazing talent, his framework for finding kick-ass investments, the two trends that Michael thinks we should be paying attention to, and much more.
If you’re interested in diving deeper into Holdcos, be sure to check out The Complete Holding Company Course.
Enjoy!
Timestamps:
(0:32): Who is Michael Girdley?
(2:24): Holdco 101.
(7:56): Fireworks business.
(12:39): Service-based businesses.
(18:08): Tackling the Principal-Agent Problem.
(23:04): Finding amazing talent.
(29:15): Finding kick-ass investment opportunities.
(34:00): Supercharge your business ideas by TRAVELING.
(36:49): A nuanced take on remote work.
(40:44): SMB acquisitions in a recession.
(44:25): Hard skills for young people.
(47:12): Trends to pay attention to (not AI & crypto).
(53:12): Holdco course.


This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit theprinciplepodcast.substack.com

What comes to mind when I say the words ‘financial independence’? Maybe…
* Building a big company
* Recruiting a team
* Pitching investors in stressful meetings
What if I told you financial independence was achievable by building cool websites that make money? And, as a team of one.
My guest today is Scott DeLong. Scott has an inspiring story of escaping the rat race and finding freedom on his own terms: fully remotely, no raising capital and no mindless busy work.
Scott has a passion for writing timeless content that resonates with its audience. He’s developed an understanding of human psychology not by reading books, but by tinkering with marketing campaigns that have generated billions of page views and tens of millions in revenue.
This episode is a bit different. Instead of recording a conversation, I sent Scott a few questions that I wanted his perspective on. Here are his thoughts about creating timeless content.
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Q: Why build in stealth for so long? What eventually led to you opening up about your journey?
A: Since 2005 when I started making money online, I’ve just always been very private about what I’m doing. I never felt the need to talk about it, and it was always difficult to explain it. People just assumed I was a web designer for years, including my own family.
When journalists dug me up after the explosion of Viral Nova, I briefly tried to embrace it… but it wasn’t enjoyable. The site was slightly controversial and the attention was really stressful for an introvert who just likes to build.
Recently, with the birth of my daughter, I’ve thought more about my legacy and what I want to contribute to the world. And the number one thing I can contribute is this skillset – so that’s why I’ve opened up now.
Q: How do you fight feeling like you have to create content, but have NO inspiration?
A: You really need a driving force to combat that. I was very obsessive through my 20s about reaching financial independence by the time I turned 30. The drive was so strong that, even on days I was burnt out, it just didn’t matter.
The end goal was stronger than the lack of inspiration, so I’d just push through and ultimately find inspiration.
It’s different now at age 40. It’s much harder to find inspiration when I don’t need to find it. That’s why I’m focusing on my number one passion: the process of building a business, not so much building a business. But of course this is a business in itself!
Q: Is your motivation helping people? If not, what is it (other than financial independence, which you’re reached)?
A: Yes, helping people is a huge motivator. I genuinely love receiving emails from people who have learned something. I guess you can call that ego-driven but, whatever it is, it works.
I’m not sure if you’re aware of Financial Samurai, but I basically want to be the website builder version of him. His personal experiences and knowledge really shine through in his writing, and you can tell it’s effortless because he really loves it.
Same here, so it’s win-win for me and my readers.
Q: What’s the best and worst advice you’ve ever been given? What are your general thoughts on advice?
A: My dad is a small town businessman, and I realized later in life how many small things he said added up. He’s a believer in paying attention to the details and the psychological effects on your customer when you go the extra mile. He instilled a work ethic in me without even really trying.
As far as the worst advice, I’m not sure. I tend to think what a lot of teachers and guidance counselors said during high school, but it’s not really their fault. It’s all they knew to suggest and they’ve never broken out of the norm, so I can’t expect them to advise anyone else to do so.
Generally though, advice is thrown around far too much. Too many people without all the details give their opinion, and it

When I hear the words, Renaissance Man, I think back to learning about Leonardo Da Vinci in history class. A man whose countless curiosities led him down the path of countless disciplines.
Lately, I’ve devoured every piece of content – podcasts, articles and tweets – from Balaji. I can’t help but describe him in the same light as Da Vinci. A modern day Renaissance Man. 
In case you happen to live under a rock, here’s a quick snapshot of his resume:
Angel investor. Serial tech founder. Former CTO of Coinbase. General Partner at a16z. Futurist. Author of The Network State. 
But that’s not why I admire Balaji’s work. If you spend 5 minutes listening to the guy speak, you’ll realize that he’s a well-researched, articulate, independent thinker. And, he’s funny (at least I think so).
I’ve curated 6 of Balaji’s most thought-provoking reads. If you’re fascinated by leveraging technology to sculpt a better future, this post is for you.
Software Is Reorganizing the World (November 22, 2013)

Excerpt: ”the SoundCloud engineer on a laptop in Berlin builds a deeper relationship with the VC in New York than the nearby Bavarian bank.”
Takeaway: For our ancestors, America was the ultimate destination. The promised land of opportunity. Today, those seeking opportunity might not have to shift geographies at all…
Technology is continuing to make location less relevant. Millions of people are finding their people online (shoutout WOP Cohort 9), smartphones are making everything available at our fingertips, and travel is increasingly efficient (just don’t fly TAP Air).
We’re firmly in the remote work era. Balaji takes it a step further and introduces the idea of creating a new nation of emigrants. This piece marks the early days of The Network State.
2020: The Year the Internet Age Truly Began (May 23, 2020)

Excerpt: “It used to be that the physical world was primary, and the internet was the mirror. Now that has flipped.”
Takeaway: This piece is a dialogue between Balaji and an Israeli Politician discussing two blind spots that COVID revealed.
* We assumed the Internet changed everything, but never noticed how education, healthcare and government were largely unaffected by it. Then, COVID happened.
* Teachers had to adapt to online learning, parents adopted homeschooling
* Digital health services skyrocketed, medicines delivered to homes
* Outdated government processes became online-first. Fighting a ticket on Zoom, for example, is now the norm.
* “Nothing against sports, fashion, or video games, but we've been overallocated on leisure and underallocated on the things that matter, like health.” I argued a similar point in Sober Socializing – how more information is leading us to making more conscious decisions about our health. 
The Purpose of Technology (July 19, 2020)

Excerpt: “The point of doing a startup after all is to build something you can't buy.”
Takeaway: YouTube democratized media. Refrigerators made our food last longer. WhatsApp increased communication. Technology is how we describe things that help us do more.
Lifespans are finite. Someday, the music stops. That’s why we’re always looking for ways to do things faster – to not waste time.
But what if we could extend lifespans? Or eliminate death altogether? Would saving time still be as valuable?
Balaji argues that “if the proximate purpose of technology is to reduce scarcity, the ultimate purpose of technology is to eliminate mortality.”
Most of us aren’t aware of the life-changing technologies that exist today, like the procedures proven to reverse aging (yes, really). 
Why? Because technologists are so obsessed with building that they forget don’t care about telling the world.
We need to start evangelizing technological progress. By getting people on the hype train, we motivate everything we do with a singular purpose – eliminating mortality.
Balaji hit us with a one-two punch here: 
* Instead of looking f

Going to the gym sucks. The traffic on your drive there. Waiting for an open squat rack. Cleaning up after the guy who leaves pit stains all over the bench.
What if there was a better way to get strong and look great?
What if all you needed was a bell, a rope, and a mat?
You’re in luck. Follow me.
Fitness is a broad term. It can mean a lot of things. Training for an Iron Man looks vastly different than training for a Men’s Physique competition.
Start with a simple question: what does fitness mean to you? For me, it’s funny how much the answer to that question has evolved.
Flashback to my high school and early college days, when all I cared about was getting as “yolked” as possible. Just thinking about the Arnold wallpaper on my iPhone 4S makes me cringe.
As I got older, I started understanding the importance of taking care of your heart and moving pain-free. Nobody should be the bodybuilder who’s out of breath walking up the stairs. 
I now look at fitness as something that should be enjoyable & enhance other aspects of my life. Workouts should be fun, efficient, and energizing. You shouldn’t have to commute 30 minutes, then sit around waiting for equipment.
Mainstream gym protocols emphasize isolating parts of our bodies into muscle groups. The problem is, our bodies aren’t machines (yet) in which the parts can be isolated. How often in your real life are you doing a movement that looks like a tricep pushdown?
This isolating of muscles from the entire body is what sets us up for fragility and easy injury. Strength is important, especially as we age. There had to be a better way to build strength and move better…
Enter the bell
That’s when I found kettlebells. They can be as heavy as you need (some brands offer up to 200 lbs) and can be stored in your apartment. 
There are plenty of resources online to understand the benefits of kettlebell training. Tim Ferris’ episode with Pavel Tsatsouline is a great place to start. 
Like what you’re reading? Feel free to spread the word!

The reason I started training with kettlebells is because I wanted to move better. Think of it as developing Holistic Strength. 
Doing leg extensions with 100 lbs is cool. But you know what’s cooler and has broader applications to the real world? Rotating your torso, pressing a 50 lb kettlebell over your head, and touching the ground. 
That movement works nearly every muscle group in the body at once. How’s that for efficiency?
Kettlebells work your muscles through real planes of movement. Not only will they strengthen your muscles and tendons, but they’ll also test your cardiovascular health. A true double threat.
Simply testing my cardiovascular health wasn’t enough. I needed a way to build my endurance…
Enter the rope
I don’t have anything against running on the treadmill, I just think it’s f*cking boring. Okay, yeah treadmills suck…
When the pandemic hit and gyms shut down, I needed a way to train my endurance. I ran outside for a while, but that gets dicey with snow on the ground. So, I bought a jump rope since I could use it indoors. Spoiler alert: I haven’t looked back since. 
There’s no better feeling than the euphoria from a morning jump rope session, with the crisp fall breeze cooling you down. Music blasting in your ears as you crank out your last set of high knees, criss-crosses, and pushups. 
Not only are jump rope workouts a fun way to build endurance, but they also develop your agility, coordination, and strengthen your feet. All things high on the list for functional fitness.
If you’re in the fitness game for the long haul, you need to keep your heart healthy. Grabbing yourself a jump rope is an amazing way to do it.
Strength and power from kettlebells: ☑️.
Cardio blasting from jumping rope: ☑️.
Now, what about recovery from all that work?
Enter the mat
As we train with heavy weights, mobility and flexibility aren’t just important, they’re essential. 
On average, Tom Brad

The sun rudely bursts through the sliver of space my blackout curtains decided to miss. I reach over to grab the S’well bottle on my nightstand, but find that it’s only half full. After gulping it down, my mouth still feels as dry as the desert.
“I barely had three drinks last night… how am I hungover?”
I drag myself out of bed, knowing full well how ineffective my brain is gonna be today. “I’m never drinking again,” I lie to myself. 
A week passes by, and the glorious cycle repeats itself again. 
I’ve never had a binge drinking problem. But lately, for me, things have changed. I’ve stopped entertaining even the casual drink, and have opted for no drinks at all. Most of the time, the tradeoff doesn’t seem worth it.
Dr. Andrew Huberman was recently a guest on the Modern Wisdom podcast. After they recorded, the host, Chris Williamson, tweeted something that resonated with me:
Holy shit is that true. 
I find it funny that every time I’ve turned down a drink, people have assumed it’s because I have a drinking problem. We know how harmful alcohol is to the body:
* Higher stress levels
* Shitty sleep
* Side effects to the gut
Yet I’m the one with the problem for not having a beer? The whole thing seems so backwards. 
I’m noticing an *anti-alcohol* movement starting to emerge. At least in the people and places I pay attention to. Hearing “nah, I’m not drinking tonight” seems way more common than it once used to. 
Even more surprising to see this happen with my coworkers. It’s always been taboo (dare I say, career-limiting) to not have a couple drinks at happy hour.
Don't get me wrong, I’m thrilled to see that people are waking up to the effects of alcohol. But, I’m also curious why it seems to be happening all at once.
Before you jump down my throat asking for the data, here are a few disclaimers: 
Could me citing this study about how Gen Z consumes 20% less alcohol than Millennials be a strawman? Yep.
Could it be because I’m a late-20s millennial living near woke NYC? Also yes. 
Could it just be me projecting my own changing world view onto the world? Sure.
I don’t have enough significant data to back up my argument yet. Most of it is anecdotal. We need more time to see how this plays out. 
But I do have a theory if you’ll play along…
Living in the digital age has given us access to information at our fingertips 24/7. Clips of Paleo Paul preaching about the dangers of bread, sugar, and alcohol are imprinted in our heads. 
Then, the pandemic comes around and shuts off all social triggers to drink for over a year. These two factors combined created the perfect recipe for breaking up with booze.
All that time alone might just be why sober socializing is becoming so popular.
Sober Socializing. Like that one?

Could more information actually have been a good thing?
Over the past decade, search volumes for “mindfulness” and “fruit bowls” have trended upwards. (Simple heuristic – how many restaurants near you offer green smoothies?)
It’s not a long-shot to say that the average American is more aware of her health today than 40 years ago. I’d like to think this has something to do with information availability.
The Whoop is a wearable device that tracks your sleep, heart rate, and recovery. The technology is only getting better. In the future, we'll know more about our body metrics than ever before. 
I bet you'd be less likely to drink after seeing a whopping 4% recovery on your Whoop.
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I’m not denying the social benefits to alcohol. I still believe alcohol can bring strangers together, and make a night out twice as fun.
Will I still indulge on occasion? Absolutely. 
Will I ever crack open a “cold one” to watch Sunday Night Football? Absolutely not. 
Information about the negative effects of drinking changed my world. It made me wonder what other blind spots could be hi

“The unexamined life is not worth living.” —Socrates.

Today’s conversation exposes the importance of developing self-awareness with Khe Hy, the founder of RadReads.
RadReads is an online community that teaches people how to live productive, examined, and joyful lives. It’s been featured in the likes of TIME Magazine, Bloomberg, and WSJ.
Throughout the episode, Khe drops wisdom about the questions we should all be asking ourselves. I call these “questions that will change your life.”
Expect to learn why introspection is the key to fulfillment, how independent thinking & self-awareness go hand-in-hand, how to conquer productivity guilt once and for all, and much more.
For more on maximizing your productivity, check out Khe’s principles for doing $10k Work.
Enjoy!
Timestamps:
(0:23): Who is Khe Hy? What is RadReads?
(2:46): Uncomfortable introspection.
(12:07): The questions that will change your life.
(20:00): How being outcome-oriented can lead to blind spots.
(26:43): Thinking for yourself.
(33:23): Conquering productivity guilt.
(38:25): Routines & fragility.


This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit theprinciplepodcast.substack.com