Scott Galloway: Why I'm selling my American stocks

My First Million

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Video Summary

The video features Scott Galloway discussing a wide range of topics, from his experiences at Davos and his views on wealth, purpose, and influence, to more practical advice on spending, investing, and personal relationships. He contrasts the current global brand of America as "chaos, coercion, and compliance" with its past "capitalism, consumption, and Bill Clinton." Galloway emphasizes the importance of purpose beyond personal wealth, sharing how his mother's illness and the birth of his children shifted his focus. He also delves into the significant impact of GLP-1 drugs, calling them a more transformative technology than AI, and advocates for their widespread free distribution. The conversation touches upon economic security, the business of addressing male loneliness, the counterintuitive profitability of unsexy investments, and the importance of developing a personal code. Finally, Galloway offers provocative advice on dating and relationships, emphasizing the need for men to always pay and for individuals to establish their own guiding principles. A particularly striking point is his assertion that "old people have basically raping our economy for the last 30 or 40 years," arguing for policies that benefit younger generations.

One of the most surprising insights is Galloway's assertion that GLP-1 drugs, such as those for weight loss and diabetes management, represent a more significant technological advancement than AI, proposing their free distribution to drastically reduce healthcare costs.

Short Highlights

At Davos, Scott Galloway observed Gavin Newsom's "star power" and Lindsey Graham's lack of it, reflecting on America's shift from a brand of "capitalism and consumption" to "chaos, coercion, and compliance."
Galloway's personal pivot occurred after his mother's illness and the birth of his sons, shifting his purpose from personal wealth to "raising good men."
He considers GLP-1 drugs a more transformative technology than AI, proposing their free distribution to significantly lower healthcare costs.
His investment philosophy favors "unsexy" industries, citing retail shopping centers as a more profitable investment than AI, and advises on achieving economic security by multiplying annual expenses by 25.
Galloway argues that older generations have "raped our economy," leading to younger generations being less wealthy and less inclined to have children, advocating for policies like tax holidays for those under 30 and mandatory national service.

Key Details

The Davos Experience and Shifting American Identity [0:00]

Galloway recounts his return to Davos after 27 years, feeling out of place but finding a highlight in an interaction with Gavin Newsom, whom he describes as possessing significant "star power."
He contrasts this with observing Lindsey Graham desperately seeking attention, finding a degree of "joy" in the latter's situation.
Galloway notes a drastic shift in the discourse from his last visit, where the focus was on e-commerce, to the current obsession with AI, and observes that America's brand has devolved from "capitalism, consumption, and Bill Clinton" to "chaos, coercion, and compliance."
He expresses a sense of being "unsettled about how unsettled the world is right now" and defends billionaires, stating he knows a dozen who are "really good people," contrasting them with the public perception often shaped by figures like Jeffrey Epstein.

"On the other side of the spectrum, I saw this old man with a pot belly walking around desperate to find someone to talk to and no one was interested and it was Lindsey Graham and that gave me a lot of joy."

Purpose Beyond Wealth and Personal Transformation [05:52]

When asked what he is still hungry for despite wealth and fame, Galloway states his desire is to "launch good men" and feel he has given back more than he has taken from society.
His initial purposes in life were to be rich, awesome, take care of his mom, and be attractive to women.
The major "pivot" in his life came when his mother became seriously ill, teaching him that money is a means of protecting people, not just for personal enjoyment.
The death of his mother and the birth of his sons, coupled with losing everything in 2008, were profoundly motivating experiences that reshaped his priorities.

"My purpose is I want to raise good men. I want to know that when I'm towards the end that I've raised really confident, loving men."

The Power and Perils of Spending and Investment Strategies [10:53]

Galloway advocates for fractional ownership of private planes as a high-value expenditure that "lowers the bar for fun," enabling more time with family and spontaneous trips.
He considers art and wine among the "stupid" expenditures of billionaires, suggesting they are often attempts to buy culture rather than genuine enjoyment.
Travel with children is highly recommended, especially between the ages of 4 and 14, emphasizing experiences over material possessions.
He reiterates his belief that America's market is overvalued compared to emerging markets, advocating for diversification due to having lost wealth twice in the past.
His investment philosophy prioritizes "unsexy" industries, arguing that their lack of appeal leads to greater returns on capital, contrasting this with the allure of ventures like AI.

"The less sexy an industry, the greater the return on your human and financial capital."

GLP-1 Drugs: A Transformative Technology [17:40]

Galloway predicts that GLP-1 drugs will have a larger impact than AI, citing their potential to significantly reduce healthcare costs if distributed widely and freely.
He proposes that as president, he would order a billion doses of GLP-1s and distribute them to every rural household in America, effectively halving healthcare costs.
He views GLP-1s as the "most transformative technology of the last 20 or 30 years," comparable to GPS in its impact.
The drugs are noted for their potential to curb addictions, reduce nail-biting, and even stop gambling and porn addiction, demonstrating a broad range of benefits beyond weight management.

"I would put out the mother of all RFPs to Nova Nordisk, Eli Lilly, and say I need a billion doses of GLP1s and then I would distribute it for free to every rural household in America."

Generational Economics and Empowering the Youth [22:10]

Galloway argues that fiscal policies over the last 50 years have disproportionately transferred wealth from younger generations to older ones, stating that the average 70-year-old is 72% wealthier than 40 years ago, while the average 25-year-old is 42% less wealthy.
He criticizes the over-investment in seniors, citing the $40 billion child tax credit being stripped from the infrastructure bill while cost-of-living adjustments for social security pass through.
He proposes radical solutions: eliminating capital gains tax, ending mortgage interest deductions, and implementing a tax holiday for individuals under 30, inspired by Portugal's model.
He advocates for mandatory national service to foster connections among young Americans and combat their disillusionment with the country.

"Old people have basically raping our economy for the last 30 or 40 years. It needs to stop."

Addressing Male Loneliness and Reforming Relationships [24:45]

Galloway identifies "third places" (bars, leagues, entertainment venues) as a business opportunity to combat the "male loneliness epidemic."
He criticizes NIMBY laws and rent control, advocating for "build baby build" to address housing affordability for young people.
He suggests that companies profiting from tapping into young men's "worst instincts" and immature prefrontal cortex will be most successful, a trend he finds unfortunate.
In relationships, he advises against trying to be someone you're not, emphasizing the importance of being your authentic self and finding someone who likes you for who you are. He also stresses the significance of follow-up questions and expressing desire.

"The most profitable companies are going to be the ones tapping into an immature prefrontal cortex of an American male."

The Art of Communication and Effective Content Creation [35:19]

Galloway attributes his insightful observations to "IP theft" (intellectual property theft), meaning he identifies and repeats insightful ideas from others, trying to internalize them.
He emphasizes the importance of not having an opinion on everything and learning to "shut the f*** up" when appropriate, a lesson learned from the Dunning-Kruger effect.
His communication skills are a blend of genetics (his father was a gifted storyteller and salesman) and consistent practice, including speaking to students, appearing on podcasts, and writing extensively.
His content creation process involves a team for research and editorial meetings, but his personal "flow state" for creative work occurs late at night, often fueled by quiet reflection and a drink or edible.

"I don't think I'm that insightful. I think I'm good at identifying thoughtful ideas and I try I try to reference where I got the idea from."

The Economics of Consumption and Personal Finance [49:59]

Galloway defines economic security by multiplying one's desired annual spending by 25, assuming a 4% post-tax return, which allows for the elimination of "should" activities.
He acknowledges that personal "burn rate" and desired lifestyle significantly impact this number, noting his own monthly spending and the need for $125 million for his security.
He critiques the misconception that high earners in expensive cities like Manhattan cannot live paycheck to paycheck, attributing it to excessive spending and a lack of honest conversations about financial realities and sacrifices.
He encourages young people to be realistic about the sacrifices required for desired lifestyles and to consider alternative paths to happiness, not exclusively tied to high-cost urban living.

"The real power of economic security is like eliminate the should bucket. There's things you want to do. There's things you have to do. Get rid of the should."

Provocative Advice and Establishing a Personal Code [55:29]

Galloway offers controversial advice to his sons: always pay for everything when with women, stating that "no woman is ever going to kiss you if who splits the check with you." He frames this as demonstrating valor and the ability to provide.
He asserts that men should never split checks, suggesting it's a sign of weakness and an inconvenience to service staff.
He highlights the importance of having a personal "code" or operating philosophy, lamenting that many people lack one, and advocates for establishing one based on lived experiences and values.
His movement "Resist and Unsubscribe" encourages consumers to reduce spending on big tech companies, viewing their subscription payments as a powerful, albeit underutilized, form of political action to influence markets and administration.