3 Stories of Crazy Geniuses: Fenn’s Treasure, Michael Saylor’s Infinite Money Glitch + more

Bitcoin millionaire hides $2M in treasures across US (0s)

• John Collins Black, a Bitcoin multi-millionaire, has hidden five treasure chests across America, each containing valuable items such as rare Pokémon cards, artifacts from old shipwrecks, and a Colombian green emerald, with a total worth of $2-3 million (39s).
• The treasure chests were accumulated over five years, and Collins Black has released a book called "There's a Treasure Inside" on Amazon, which contains clues and maps to find the treasure, priced at $35 (1m28s).
• Collins Black's story is interesting, as he was a musician in LA, then created websites for helping people find jobs, and eventually became a Bitcoin multi-millionaire, who was fascinated by adventure (2m5s).
• The idea for the treasure hunt was inspired by the Fenn Treasure, a cache of gold and jewels hidden by art dealer Forest Fenn in the Rocky Mountains, which had five confirmed deaths during the search, and was eventually found by Jack Stuef in 2020 (2m25s).
• Collins Black was searching for the Fenn Treasure in 2020, and during the COVID-19 lockdown, he decided to create his own treasure hunt, accumulating assets and releasing the book with clues to find the treasure (3m29s).
• Chip Forsight is a friend who has been involved in funding expeditions to find shipwrecks, some of which are valuable due to their historical significance or the presence of gold and other precious items (3m56s).
• The idea of a treasure hunt can be intoxicating and romantic, and some people become obsessed with it, although it's not for everyone (4m43s).
• Releasing a book with clues for a treasure hunt may have been a missed opportunity, as using social media platforms like TikTok could have created a more viral and engaging experience (4m52s).
• A treasure hunt could be conducted on social media, with clues released regularly, allowing people to follow along and search for the treasure in the real world (5m31s).
• Steve Bartlett, a podcast host and former growth marketer, used a strategy of "cash drops" to grow his Twitter and Instagram accounts, where he would hide envelopes with $200 and post videos of the process, generating hype and creating engaging content (6m3s).
• The "cash drops" strategy was effective in generating buzz and creating a sense of excitement, with people tweeting about their searches and finds, and it was done with a relatively small amount of money (6m41s).
• A similar strategy was used by an account called "Mystery Cash Drop," which would hide cash and create content around the drops, making it feel like a big deal and generating a large following (6m57s).
• A mysterious benefactor, known as "Hidden Cash," was hiding money in public places in San Francisco and the UK, and posting clues on social media for people to find it, with the benefactor claiming to have made millions of dollars and wanting to give back to charity and do fun, creative things (7m53s).
• The benefactor would leave money in places such as under chairs in public parks, in stairways, or in public bathrooms, and post a picture of the cash and a zoomed-in image of the location, but not the exact location (8m10s).
• The benefactor's goal was to give away some of their money to charity and do fun, creative things, and they would leave the cash once or twice a week (8m28s).
• The idea of hiding cash in public places and posting clues on social media is considered a fun and creative way to give back to the community, and it could be a hobby or a way to play "real-life Willy Wonka" (8m50s).
• However, there is a risk that the excitement and attention generated by the initial hits of finding the cash could fade away, and the person hiding the cash might feel the need to escalate the challenge to keep getting attention (10m9s).
• A comparison is made between Willy Wonka's eccentric behavior and modern-day YouTubers who try to gain fame by doing unusual and generous acts, such as giving money to homeless people and filming themselves doing so (10m22s).
• The idea that what's old is new is discussed, referencing the similarities between the "hidden cashes guy" and MrBeast, who has gained fame and success through similar acts of generosity (10m56s).
• A story is introduced about a person who is obsessed with adventure, and the speaker claims that the listener will be more interested in this person after hearing a few shocking facts (11m16s).
• The person in the story is named, but the name is cut off in the provided text snippet, starting with "a guy named" (11m23s).

Building the Ralph Lauren fantasy (11m27s)

• Ralph Lifshitz, a Jewish kid from New York City, grew up in the 1930s with a passion for acting and storytelling, but he was not good at acting, so he decided to shape movies through clothing instead (11m33s).
• Lifshitz believed that dressing up as a character could make one feel like that person, and if done long enough, it could become a reality, which inspired him to get into clothing (12m30s).
• He changed his name to Ralph Lauren due to being made fun of for his original name, and he started selling clothes for Brooks Brothers before eventually starting his own business at the age of 28 (13m16s).
• Lauren's first product was ties, which he pitched to Bloomingdales, but they refused to sell them with his name on the back, leading to a turning point where he insisted on keeping his name on the product (13m41s).
• After being rejected by Bloomingdales, Lauren continued to hustle and eventually got his ties into Macy's, earning half a million dollars in revenue in the first year, equivalent to three and a half million dollars today (14m9s).
• A few years later, Lauren came up with the idea for the Polo brand, specifically the college shirt that became popular everywhere (14m23s).
• The inspiration for the Polo shirt is not explicitly stated in the provided text, but it is mentioned that the backstory of the shirt is about to be discussed (14m31s).
• Ralph Lauren grew up as a poor Jewish kid in New York but was fascinated by the idea of class and old money, which led him to appreciate the sport of Polo for its combination of utility and sophistication (14m35s).
• Lauren was inspired by the fashion associated with Polo, including the Oxford button-down cloth shirt and certain style boots and pants, and decided to name his brand "Polo" (15m7s).
• Over the course of a few years, Lauren built his brand and it took off, eventually making him worth around $10 billion, with him still owning 80% of the company (15m24s).
• Lauren has an idea that one is the director of their own life, and life is like a movie, which influences his approach to fashion and confidence (15m39s).
• He believes that dressing in a certain way can influence one's confidence and sophistication, and that the brain follows the body's lead (16m15s).
• Lauren's advertisements were notable for using the same models and creating elaborate sets, often renting homes in the Hamptons, to create a sense of a real-life scenario, which was a unique approach at the time (16m40s).
• This approach to advertising made the ads seem more in-depth and realistic, and it has been influential in thinking about how to set the stage for a desired image or atmosphere, rather than just reacting to customer feedback (17m31s).
• A product's vision and description should be thought out ahead of time, considering how customers will feel and think about it, as the internet has a low barrier to entry and allows for easy adaptation and change (17m56s).
• Vintage Ralph Lauren ads are an example of a successful marketing strategy, using lifestyle shoots that appear authentic and feature real-life settings, rather than studio or framed shots (18m21s).
• This approach may not be justifiable on a spreadsheet, but it can be effective in the long run, as seen in the example of a brand that spent $1 million on an influencer campaign with Instagram moms, despite a potentially low return on ad spend (19m12s).
• The return on ad spend for this campaign was estimated to be around 50%, compared to a 140% return on Facebook ads, highlighting the potential mispricing of influencer marketing (19m35s).
• The effectiveness of influencer marketing can be difficult to measure, but it can have a significant impact, as seen in the example of the speaker's wife, who was able to recall details about the influencers she followed (20m0s).
• Things that are not easy to measure but are actually effective are often mispriced, meaning that not as many people are willing to invest in them, as they prefer the safety and comfort of proven and measurable strategies (20m41s).
• Courage is required to make big bets, and it's easier to take risks when logic and spreadsheets support the decision, but sometimes it's necessary to make nonsensical, non-trackable bets to achieve success (21m12s).
• There's a difference between making logical, data-driven decisions and doing something because it's the right thing to do, even if it can't be measured or justified by math (22m1s).
• Peter Thiel has identified "brand" as a crucial element that can't be fully understood or measured, but is essential for success (22m30s).
• The concept of "brand" is about doing something that feels right, even if it can't be justified by logic or data (22m40s).
• The owner of the podcast MoneyWise acknowledges that they don't do enough non-trackable, nonsensical bets, but recognizes their importance and wants to do more (22m50s).
• Ralph Lauren's success is an example of a visionary who didn't always prioritize profit, and sometimes took risks that didn't make sense at the time (23m21s).
• The theme of the episode is exploring whether rich and successful individuals are crazy or genius, using examples such as the Bitcoin guy who created a treasure hunt, Ralph Lauren, and Michael Saylor (23m35s).

Michael Saylor's infinite money glitch (23m58s)

• Michael Saylor, the CEO of MicroStrategy, a software company, has been using the company's cash reserves to buy Bitcoin, starting with a $175 million purchase on September 14th, 2020, when the price was $10,000 per coin, and later adding another $250 million, with the company now holding $37 billion worth of Bitcoin (25m11s).
• MicroStrategy's software business generates around $75 million in profit per year and has been declining by 10% annually, with revenue of a couple hundred million dollars and under $100 million in net income, making it a relatively small part of the company's overall value (24m30s).
• Saylor has been issuing convertible bonds to raise funds to buy more Bitcoin, and the company's stock price has increased significantly, from $10 in March 2020 to $410 today, a 2600% increase over the last 5 years, outperforming even Nvidia's stock (26m54s).
• MicroStrategy's market value is now around $80 billion, with the company's Bitcoin holdings being the primary driver of its value, rather than its software business (27m21s).
• Saylor personally owns hundreds of millions, if not over a billion dollars, worth of Bitcoin, in addition to the company's holdings (25m59s).
• The company's Bitcoin position has generated $15 billion in value over the past four years, with Saylor's strategy of converting idle cash into Bitcoin and using bond proceeds to buy more Bitcoin being a key factor in this growth (26m5s).
• Michael Saylor's company has employees who run the software business, but the stated strategy is to acquire Bitcoin in the most effective ways possible and hold it forever (27m47s).
• Saylor has been buying Bitcoin throughout all the dips, including when the price went down to $16,000, and has continued to buy even when the price is at an all-time high (28m20s).
• He has raised money by issuing bonds, which has allowed him to buy more Bitcoin, including a recent purchase of $5.4 billion at all-time high prices (28m43s).
• The strategy of using bonds to raise money and buy Bitcoin is outside of the author's zone of competence, and they are hesitant to comment on it due to a lack of knowledge about corporate bond strategies and the bond market (29m4s).
• The author notes that new players in the crypto space often come in with new strategies and build massive profiles and success on the upswing, but can also experience significant failures, citing examples such as Sam Bankman-Fried and FTX (29m25s).
• The author recalls a conversation with Michael Saylor where he asked about the downsides of buying Bitcoin with company money, and Saylor responded that there were no downsides, which the author found to be a red flag (30m9s).
• The author interprets Saylor's response as potentially dishonest and notes that it is a common trait among charlatans, but also acknowledges that it may not be damning and offers a generous interpretation of Saylor's statement (30m51s).
• Michael Saylor, the CEO of MicroStrategy, had a successful software business that was profitable but received zero credit in the stock market, leading to a stagnant stock price despite the company's growth over 15 years (31m9s).
• The market's lack of confidence in Saylor's ability to invest the company's cash effectively led him to explore alternative investment options, including real estate and gold, before ultimately deciding on Bitcoin (32m9s).
• Saylor was initially skeptical of Bitcoin but began to learn about it through interviews and research, and was drawn to its potential as a hedge against inflation and a way to grow the company's stock value (32m58s).
• Saylor's decision to invest in Bitcoin was influenced by his realization that the stated goal of 2-3% inflation was misleading and did not account for other factors, and that he needed to find a way to beat the 10-15% annual growth rate of the S&P 500 (33m11s).
• Saylor's strategy was to borrow fiat currency at a 0% interest rate and use it to buy Bitcoin, which he saw as a hard currency with more potential for growth (33m46s).
• At the time, Saylor was not borrowing billions of dollars to buy Bitcoin, but rather was looking for a way to grow the company's stock value through investment (34m8s).
• MicroStrategy issues debt through convertible bonds, which are bought by bond market investors who cannot directly invest in Bitcoin due to their fund's structure and mandate, allowing them to access Bitcoin indirectly (34m11s).
• The bond buyers can convert their bonds into MicroStrategy stock at a certain price, which is higher than the current price, essentially giving them a long-term call option on the company (35m16s).
• Michael Saylor, the CEO of MicroStrategy, uses the funds raised from bond sales to buy Bitcoin, and by doing so, he signals to the market that he is a forever buyer of Bitcoin, which instills confidence in the Bitcoin market (35m52s).
• As the Bitcoin price goes up, MicroStrategy's stock price also increases, allowing Saylor to sell more equity at a premium and buy even more Bitcoin, creating a cycle of buying and selling (36m25s).
• Saylor is not personally liable for the convertible bonds, and if the company collapses, his net worth, which is heavily based on his holdings of MicroStrategy, would decrease (36m52s).
• As of today, Saylor owns 99.9% of MicroStrategy and is worth around $8 billion, having grown from a net worth of $140 million in 2020 (37m9s).
• Michael Saylor has turned MicroStrategy into a "mem stock" by acquiring almost 400,000 Bitcoin, making it a product desired by option traders, bond traders, Bitcoin maximalists, and shorted by Bitcoin skeptics, with the company outperforming every company in the S&P 500 and seeing $1.136 billion in trading volume in one week (37m53s).
• Saylor has taken an extreme step by being a Bitcoin evangelist for the last four years, similar to Elon Musk's style of being "all-in" reputationally and financially (38m49s).
• Saylor's personality is described as having a high IQ and low emotional normal human emotions, making decisions based on math and logic, even if they seem ridiculous to others (39m3s).
• Every crypto cycle, someone gets overly aggressive, is seen as a genius, but eventually overextends or commits malpractice and comes crashing down when the cycle ends, with past examples including FTX, dquan, and Three Arrows Capital (39m34s).
• Saylor made a genius call in the past by predicting Apple's stock price would reach $2,000 a share, which seemed insane at the time but ultimately came true, and he had a similar enthusiasm for Apple as he does for Bitcoin (40m27s).
• Saylor's past prediction about Apple's success was based on his understanding of the company's potential, similar to his current views on Bitcoin, which he believes will be worth millions of dollars per coin (40m40s).