Why The Rich Obsess Over Cash Flow, Not Net Worth

You've been chasing the wrong number your whole life. >> The poorest people on earth always are going after this stuff versus cash flow. >> What you learn as an investor over multiple decades is the [music] only thing that matters is free cash flow. That's it. >> If you change your lifestyle, you don't look like you're buying

>> [music] >> really expensive clothes. >> No, I'm not buying really expensive clothes. >> Are you buying things? Are you buying [music] things that you would would >> No, no. I have a little like one-bedroom apartment with a mattress on the floor. That's [music] the That's where I live. >> The Federal Reserve found that 37% of

American adults couldn't cover a surprise $400 expense with cash. >> The extra money should go into something that gives you money. You want your money to have babies. >> This is the time >> [music] >> to not waste money as a company or as a human being. >> So, this is bigger than money. It's

about whether you actually own your time or whether you spend your best years [music] of your life working for a number that can't pay a single bill. >> Don't spend money on stuff [music] until you have cash flow that can buy stuff. >> Money's got to circulate. Money is your servant. You got [music] to keep it

moving. It's your servant. And you can put this to work. >> Let me tell you about a man who understood this better than almost anyone. His name was Sam Zell. He was a son of immigrants who fled Poland right before World War II and he grew up in Chicago obsessed with one question. Not

how much is something worth on paper, [music] but how much cash does it actually put in my pocket. So, while everyone else chased shiny buildings and [music] big price tags, Sam Zell went hunting for what he called dead properties. Real estate that other people had given up on after a crash. >> [music]