How Kid Rock Makes +$30M/Year Using Redneck Business Strategies

Kid Rock, our honorary Billy of the Week (00:00:00)

• Kid Rock owns and operates the "Kid Rock Chillin' the Most Cruise," where he performs for passengers, and the "Kid Rock Rodeo," which has become successful in the growing rodeo industry.
• Kid Rock is a shrewd businessman who strategically invests in ventures like the rodeo league instead of just buying a team.
• Kid Rock owns a successful bar in Nashville called the Kid Rock Honky Tonk, which generates $30 million in annual revenue.
• Kid Rock follows a strict morning routine that includes waking up early, doing a cold plunge, sauna, and workout, and writing in a gratitude journal.
• Kid Rock's home in Tennessee is a replica of the White House.
• Kid Rock's son, Bobby Jr., attended Belmont University from 2008 to 2012.

Shaan's new rules for content (Partial list) (00:08:13)

• "Older is better" - implies that older content may be more valuable or relevant than newer content.
• "Look to the left" - suggests exploring alternative or less mainstream sources of information.
• "More with less" - implies seeking condensed or efficient ways to consume information.
• "Pay for Learning" - indicates a willingness to invest in high-quality educational content.
• "Early Arbitrage exploit" - suggests capitalizing on opportunities by being an early adopter of new information or trends.

Rule 1: Older is better (00:09:05)

• Kid Rock suggests substituting addictive social media with reading annual letters or reviews of people.
• Annual shareholder letters provide valuable insights and stories.
• Nick Sleep's annual letters are particularly noteworthy as he achieved great investment success by identifying and holding onto Amazon, Costco, and Berkshire Hathaway stocks.
• Other individuals like S Balky and Nathan Barry also share their annual reviews, offering a quick and interesting read.
• Kid Rock recommends exploiting early arbitrage opportunities by identifying undervalued assets and capitalizing on their potential growth.
• He cites the example of buying land in Detroit when it was cheap and selling it for a profit when its value increased.
• This strategy requires research and patience, but it can yield significant returns.

Rule 5: Early. Arbitrage. Exploit (00:13:07)

• AirChat is a new invite-only social media platform that uses voice-first technology, allowing users to post audio messages that are automatically transcribed and sped up for faster consumption.
• AirChat is currently in its early stages and has a limited user base, but it has the potential to become a popular new format due to its unique features and the interesting group of people in the business and tech world who are using it, making it a valuable place to network and build connections.
• Early adopters of new platforms like AirChat and Clubhouse can benefit from increased visibility and opportunities due to the limited competition during the initial stages.
• Kid Rock, who makes over $30 million per year, focuses on building relationships with his fans and treating them well, which creates a sense of loyalty and encourages them to continue supporting him.
• Kid Rock is constantly coming up with new ideas and is not afraid to try new things, such as his recent investment in the social media platform Clubhouse.
• HubSpot has created a free business ideas database with over 50 ideas curated from the archive.

Rule 4: Pay for learning (00:17:58)

• Kid Rock suggests paying for learning instead of trying to learn something on your own.
• He hired an AI tutor for $500 an hour to stay updated on the latest advancements in AI.
• The tutor provides him with the four most interesting AI developments each week.
• Kid Rock can then ask specific questions about AI-related topics or challenges in his business.
• This approach saves him time and allows him to focus on other areas of his business.

Sam's cheat code for better alpha (00:19:45)

• Platforms like GLG, T, and Intro connect experts with clients for high-priced consultations, sometimes costing up to $5,000 per hour.
• Insider trading can occur when experts share confidential information obtained through these platforms.
• Paying for expert advice can be beneficial for significant investment decisions or specific business strategies.
• GLG and similar platforms offer valuable insights and save time by learning from experienced individuals in the same industry.
• These platforms are best suited for precise and specific questions, but may not be necessary for general e-commerce strategies.
• Kid Rock's success in generating over $30 million annually stems from his role as an operator in the redneck business space, providing him with real information for investment decisions, unlike competitors who rely on theories.

How Kirk Kerkorian Became the Greatest Deal Maker in Capitalist History (00:23:57)

• Kirk Kerkorian, an Armenian immigrant who dropped out of school in the 8th grade, became a successful businessman known for his shrewd negotiations and low-key personality.
• After learning to fly planes during World War II, he started a business flying people from California to Las Vegas and eventually accumulated wealth through gambling and expanding his airline business.
• Kerkorian used the proceeds from selling his airline business to purchase land and build the Pink Flamingo Hotel, one of the first major gambling hotels in Las Vegas.
• He continued to grow his empire by acquiring other companies, including MGM, and attempted to purchase Chrysler after buying 10% of GM.
• Despite having no formal education, Kerkorian amassed a net worth of approximately $5 billion by the time of his death at age 94.

Three rules of wealth. Compounding rate, length of runway, and… (00:29:48)

• Kid Rock emphasizes the importance of compounding, runway length, and starting amount in wealth accumulation.
• Compounding is crucial for building wealth, and a longer runway, like Warren Buffett's 80-year investment career, enhances wealth accumulation potential.
• Despite a modest starting amount, Buffett's consistent compounding over time led to significant wealth.
• Kid Rock admires Buffett's studious approach and detailed analysis of past performance in investing.
• Collaborating with successful individuals who share similar strategies reinforces the effectiveness of one's own methods.
• Kid Rock's success stems from identifying and collaborating with individuals who share similar traits, demeanors, philosophies, and work habits.
• Instead of changing his nature or work style, Kid Rock focuses on doubling down on his strengths and finding others who have succeeded using similar strengths.
• He believes learning from and collaborating with those who have achieved success is more effective than adopting unfamiliar strategies or play styles.

Must Listen: Business Untitled (00:34:11)

• Mike Novagratz, the founder of Fortress, a massive hedge fund, has a new podcast called Business Untitled on YouTube.
• The podcast features billionaires and successful individuals discussing various topics.
• The podcast has a unique style, with hosts who have a blue-collar background and a down-to-earth approach.
• Despite having only a few thousand subscribers, the podcast has had notable guests such as Snoop Dogg and the founder of Equinox.
• The hosts share stories about starting Fortress Capital and other ventures, providing valuable insights into their success.

LeBron James is now a podcaster? (00:36:28)

• The number of podcasts has grown significantly, including those by celebrities like LeBron James and UFC fighters.
• Despite the ease of starting a podcast, maintaining it requires consistent effort and dedication.
• The main challenge for podcasts is the limited "shelf space" in listeners' minds, as most people only regularly listen to a small number of podcasts.
• Podcasts have a lot of market penetration, especially among the general population, but the demand for them is relatively small compared to other forms of media like social media platforms.
• LeBron James' podcast with J.J. Redick is successful, showcasing LeBron's basketball IQ and building his legacy as one of the greatest basketball players of all time.
• Kid Rock's business strategies have allowed him to earn over $30 million per year, despite his lack of image consciousness and focus on selling his products.
• The podcast between J.J. Redick and LeBron James is a collaboration between J.J.'s media company and LeBron's Uninterrupted Media Company.