How YOU Can Think Like A Contrarian & Acquire Businesses To Create A Life of Freedom with Codie Sanchez
No matter who you are, by exercising a little contrarian thinking, you can find, analyze, buy, and build profitable businesses, becoming the master of your own destiny. Codie Sanchez is a master of applying out-of-the-box thinking to investing and today she joins us on the show to share some of this knowledge as well as help us learn about the different projects she has going on. Codie is the Managing Partner and Director of Entourage Effect Capital, a private equity firm focused on investing in the legalized cannabis industry. She also runs Contrarian Thinking, the weekly newsletter that discusses how to push back on investing trends, and to top it off, Codie designs business acquisition courses to be found at Unconventional Acquisitions. Codie begins by discussing some best practices for people looking to start their own fund. From there, she gets into the mission statement at Contrarian Thinking as well as its premium offering, Contrarian Cash Flow, and how these fit into her marketing flywheel as a fund manager in 2021. Wrapping up, we talk about the buy and build model taught at Unconventional Acquisitions and hear some tips from Codie on how to find and incentivize good operators for a business you recently bought. Tune in today!
TIME-STAMPED SHOW NOTES:
- [00:21] Before we jump into today’s interview, please rate, review, and subscribe to the Leveling Up Podcast!
- [00:50] A window into Codie’s career; the story behind Entourage Effect and Contrarian Thinking.
- [02:24] Metrics for the state of affairs at Entourage Effect and what they have invested in.
- [03:10] Advice from Codie for starting a fund and working with investors.
- [04:44] Managing ‘risk of dilution’ by making sure to do ‘capital reserve for follow ons’.
- [06:16] A recommendation from Codie to work with good attorneys when starting a fund.
- [07:29] How to make money with a fund; the ‘2/20’ model and other models.
- [08:34] Tips for raising money for a micro fund.
- [10:10] Dangers of making a raise public; private placement laws and SEC laws.
- [11:11] The benefits of starting Contrarian Thinking for attracting the right companies.
- [13:34] Building in public and what it means to be a contrarian thinker.
- [17:06] The different services offered by Contrarian Thinking and Contrarian Cashflow.
- [19:05] What Codie’s course, Unconventional Acquisitions, teaches and its role in her flywheel.
- [20:51] Where people should go to find the deals Unconventional Acquisitions argues for.
- [23:35] How to go about finding good operators to use in the buy and build model.
- [26:20] Codie’s method of structuring incentives to keep operators motivated.
- [27:40] Why Codie prefers a model of buying businesses to hold rather than flip.
- [28:42] The approach Codie uses regarding how involved she is in the businesses she buys.
- [30:24] Different offerings to be found at unconventionalacquisitions.com.
- [32:24] How to get in touch with Codie online and read what she writes.
Resources From The Interview:
- Codie Sanchez on LinkedIn
- Codie Sanchez on Instagram
- Codie Sanchez on Twitter
- Entourage Effect Capital
- Contrarian Thinking
- Contrarian Cashflow
- Unconventional Acquisitions
- Anthony Pompliano on Twitter
- Lisa Song Sutton
- Andrew Wilkinson on LinkedIn
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