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Succession Planning for Business Owners · Earn Your Leisure

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  Speaker 3: What advice would you give to entrepreneurs, Because that's difficult
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  Speaker 3: to plan your exit while you're still in it, right,
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  Speaker 3: Like nobody wants to plan their retirement while they're still
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  Speaker 3: an active player. So what advice could you would you
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  Speaker 3: give to entrepreneurs, whether it's leaving it to your children
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  Speaker 3: or leaving it to somebody that you're not related to, like,
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  Speaker 3: or to run it all right while still maintaining equity,
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  Speaker 3: like how like psychologically, how can you get yourself out
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  Speaker 3: of the business to look at it from not just
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  Speaker 3: an emotional standpoint. But from a practical standpoint, you.
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  Speaker 4: Know, I think that you know, Coach Carill was a
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  Speaker 4: Hall of fame coach at Princeton, you know, and he
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  Speaker 4: taught us very very clearly the most important thing is
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  Speaker 4: to always think about your teammates first.
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  Speaker 2: So my responsibility is not about my life.
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  Speaker 4: It's about making sure that the one hundred and thirty
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  Speaker 4: people here in an aerial you know, they have they're
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  Speaker 4: gonna have a place to work thirty years from now,
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  Speaker 4: forty years from now down the road. And the shareholders,
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  Speaker 4: friends and family who gave me money when I started.
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  Speaker 4: We have a responsibility to those shareholders to get a
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  Speaker 4: great return on their investments. And of course all the
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  Speaker 4: people who are invested in aarial neutral funds or the
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  Speaker 4: endowments that have hired us from you know, colleges or
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  Speaker 4: universities or hospital for corporate pension plans.
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  Speaker 2: So my job is.
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  Speaker 4: To think about all that broad group of teammates. They're
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  Speaker 4: all part of you know, I feel like I'm part
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  Speaker 4: of their team. They're part of our team, and we've
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  Speaker 4: got to make sure that we try our best to
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  Speaker 4: create a winning strategy that's going to help us all
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  Speaker 4: be successful together.
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  Speaker 2: Over the long run.
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  Speaker 4: So having a strong, independent board of people who are
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  Speaker 4: strong wills.
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  Speaker 2: We're going to tell you.
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  Speaker 4: What you need to hear, not what you want to hear,
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  Speaker 4: is also very very helpful. You know, people are not
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  Speaker 4: afraid to speak up. But again, at the bottom line
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  Speaker 4: is you know, looking to find the right person who
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  Speaker 4: can take your place and ensure that the business will
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  Speaker 4: grow and thrive in the future. It's not about me
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  Speaker 4: in the short term. It's really thinking long long term.
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  Speaker 4: And the other thing that we did to make that happen.
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  Speaker 4: We also make sure that everyone else had equity in
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  Speaker 4: the company. And so early in Mellie's career, we would
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  Speaker 4: grant her stock because I could see her potential. I
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  Speaker 4: wanted her to feel like an owner, and she started
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  Speaker 4: to buy stock herself, and a couple of years ago
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  Speaker 4: she bought some of my stocks. She wanted to be
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  Speaker 4: the number one shareholder in the company, and I thought
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  Speaker 4: that was important for the future of Aerial and having
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  Speaker 4: that attitude that you're willing to share your equity, I
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  Speaker 4: think is important to growing a firm that can last
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  Speaker 4: from one generation to another. And you want the best
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  Speaker 4: leader you could finally you could find and so I
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  Speaker 4: was lucky to have.
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  Speaker 2: Someone who's as dynamic as Melody is.
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  Speaker 4: The Only thing I would also say is sometimes family
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  Speaker 4: members can be great, but sometimes they're not great. You know,
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  Speaker 4: I have one daughter the desire and I had. She's
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  Speaker 4: wonderful Victoria Roger. She just turned thirty four. I took
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  Speaker 4: her to the Berkshire Halfway Annual meeting once and she
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  Speaker 4: said after the annual meeting, she said, you know, Dad,
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  Speaker 4: I have no interest in what you do. So she
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  Speaker 4: became an art history major of Art World along with
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  Speaker 4: Ray MacGuire. She's leading a group of African American trustees
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  Speaker 4: that are on the board's park Museums, making sure they're
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  Speaker 4: looking out for our community within the art world, which
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  Speaker 4: she loves.
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  Speaker 2: Someone Uch. That's a great story.
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  Speaker 5: So the number one question that we get asked, and
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  Speaker 5: I'm sure you've been asked plenty of times throughout your
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  Speaker 5: historic and iconic career, is what do you recommend in
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  Speaker 5: terms of diversifying your portfolio?
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  Speaker 6: Right?
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  Speaker 2: Is it stocks?
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  Speaker 5: Is it bonds? Is it mutual funds and indexes? Is
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  Speaker 5: now crypto a part of it? What is the recommendation?
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  Speaker 4: Well, I think if you have the time and interest
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  Speaker 4: and you you love investing, I think you should go
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  Speaker 4: for it. You read and study, and I think the
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  Speaker 4: most important thing is always if you invest on your own,
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  Speaker 4: invest in common.
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  Speaker 2: Stocks that you.
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  Speaker 4: That are in what we would call your circle of competence,
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  Speaker 4: the areas you understand really well.
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  Speaker 2: If you're someone that's in medicine.
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  Speaker 4: Make your nurse, you're a resident, or you're a doctor,
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  Speaker 4: you might want to invest more in healthcare companies. Some
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  Speaker 4: of us love sports and basketball, so I, you know,
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  Speaker 4: talk about the companies that I love.
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  Speaker 2: Somebody else.
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  Speaker 4: You find what you really love to read about and
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  Speaker 4: study about it and think about where you think you'll
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  Speaker 4: have a vision or an idea about the future of
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  Speaker 4: that company that others aren't going to be able to see.
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  Speaker 4: But your expertise is that allow you to make better
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  Speaker 4: long term decisions in areas that you know really, really well,
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  Speaker 4: and you'll be willing to buy more when those companies
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  Speaker 4: are out of favor and there's lots of fear because
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  Speaker 4: you know it so well, you know it cold, you'll
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  Speaker 4: buy those stocks at bargain prices. The second thing I
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  Speaker 4: would just say is, you know, if you don't want
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  Speaker 4: to do the work yourself, then you can invest in
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  Speaker 4: any mutual fund company like ours or Fidelity or Vanguard
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  Speaker 4: or Hero Price diversify around many mutual funds where you'll
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  Speaker 4: have professional investors doing that research for you, picking the
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  Speaker 4: stocks for you. You know, our aerial fund, our flagship fund,
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  Speaker 4: has thirty five roughly thirty five stocks in it, so
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  Speaker 4: you get a diversified portfolio, and we have a whole
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  Speaker 4: team of people.
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  Speaker 2: You're doing the homework, meeting with the management.
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  Speaker 4: Kicking the tires, getting on the road and seeing that
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  Speaker 4: what corporate headquarters look like like. You know, everyone doesn't
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  Speaker 4: want to do that, so we do that for folks
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  Speaker 4: who invest. You're just one thousand dollars to invest in
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  Speaker 4: Aerial mutual fund and get started, and you know you
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  Speaker 4: can put money in monthly and save that way.
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  Speaker 2: So you know, that's the thing we think is the
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  Speaker 2: best way.
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  Speaker 4: I tell people all the time when I talk to like,
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  Speaker 4: you know, NBA players or up and coming leaders. You know,
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  Speaker 4: everyone wants to start their own restaurant or their own,
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  Speaker 4: you know, their own nightclub. I said, you know, I
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  Speaker 4: was on the board of McDonald's for over twenty years.
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  Speaker 4: I bought stock at McDonald's when I was thirteen and
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  Speaker 4: when I left the board, the stock was three hundred
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  Speaker 4: roughly three hundred. You know, you can make a lot
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  Speaker 4: of money owning a restaurant company. You don't have to
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  Speaker 4: start your own restaurant company. I use I own stock
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  Speaker 4: in the company called The Sphere, which is the new
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  Speaker 4: arena in Las Vegas. They owned Hakkasan and Tao. Well, again,
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  Speaker 4: you don't have to start your own nightclub. You can
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  Speaker 4: be a part owner of two of the most dynamic
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  Speaker 4: nightclubs worldwide.
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  Speaker 2: Right, So I think that's the bottom line. I tried something.
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  Speaker 4: Just don't have to do everything yourself. You can make
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  Speaker 4: a lot of money in the equities market, and this
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  Speaker 4: is that's all I have. All of my money in stocks.
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  Speaker 1: Is MSG part of that Sphere ownership as well.
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  Speaker 4: MSG spun off the Sphere. Sphere is a separate, independent company.
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  Speaker 2: It's uh. They sold Hakissan, they sold TOWB. They still
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  Speaker 2: own the Regional Sports Network. Okay, to be clear, there are.
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  Speaker 4: Three publicly traded companies that Jim Dolan controls. Mathis Square
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  Speaker 4: Garden Sports that has owned the Knicks and the Rangers,
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  Speaker 4: Madies Square Garden Entertainment that owns The Garden and actually
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  Speaker 4: has a long term release of Radio City Music Hall
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  Speaker 4: for the Rockets and the Christmas Spectacular.
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  Speaker 2: And the third public company is this new extraordinary.
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  Speaker 4: Sphere, you know, through the latest the greatest arena in
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  Speaker 4: with the sort of virtual reality on steroids for concerts
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  Speaker 4: and movies and everything you'd expect. And then they have
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  Speaker 4: the regional Sports Network as a part of that too.
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  Speaker 4: So there's three ways to play it. We own all
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  Speaker 4: three to be transparent and spend a lot of time
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  Speaker 4: working and understanding those three stories.
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  Speaker 6: My final question for you, let's say if someone wants
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  Speaker 6: to work for your firm, what are like four or
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  Speaker 6: five characteristics you're looking for in a new hire that
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  Speaker 6: would make them like an A plus higher within a nuts
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  Speaker 6: heet or two.
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  Speaker 4: I think the most important thing that you're looking for
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  Speaker 4: is someone who's a great, great teammate.
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  Speaker 2: You know.
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  Speaker 4: I was talking to Steve Mills about this, used to
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  Speaker 4: be the president of the Knicks, and you know we
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  Speaker 4: played for you know, coach Girl together. See, we want
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  Speaker 4: people who are gonna just always think about how they
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  Speaker 4: can help the team win and not think about themselves first.
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  Speaker 2: You know, I got I always tell young people. I
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  Speaker 2: talk to students all the time.
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  Speaker 4: I'm talking to kids today from the Aerial Community Academy
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  Speaker 4: at lunch. You know, the kids are coming down to
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  Speaker 4: learn about how we pick stocks and do research, and
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  Speaker 4: I'll talk about the fact that as they build it
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  Speaker 4: financial services careers, they want to always show up.
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  Speaker 2: As the best teammate possible.
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  Speaker 4: You know, I'll tell them the example of the fact
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  Speaker 4: that you know, I got to co chair of President
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  Speaker 4: Obama's inauguration, and he wouldn't have given me that privilege
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  Speaker 4: if he didn't think that over the years I had
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  Speaker 4: worked to help him get elected president first, and I
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  Speaker 4: wasn't thinking about any any things that he was going
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  Speaker 4: to do for me. It's all about what I could
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  Speaker 4: do to help him be successful. So I say, by far,
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  Speaker 4: the most important thing is to be a good teammate.
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  Speaker 4: If you're a good teammate, you're also going to be
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  Speaker 4: the good listener. You know, someone who doesn't always have
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  Speaker 4: all the answers, which willing to listen and learn from
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  Speaker 4: others and respect other people's opinions. You're someone who's gonna,
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  Speaker 4: as my father would alway say, you're always going to
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  Speaker 4: live up to commitments that you make to others, or
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  Speaker 4: whatever you promise you're gonna do. You're going to deliver,
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  Speaker 4: deliver on time or deliver early. I think that's really, really,
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  Speaker 4: really important. And then if you can help your teammates
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  Speaker 4: succeeded something, help them appoint them, you know sometimes you know,
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  Speaker 4: you might have a friend that they need to meet you.
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  Speaker 2: You might have a doctor they need to see it.
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  Speaker 4: You might have a board you want them on, you know,
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  Speaker 4: just always looking for ways to help your teammates. Early
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  Speaker 4: on in Mellie's career, you know, I helped introduce her
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  Speaker 4: to her first board, and now she's the chairman of
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  Speaker 4: the board of Starbucks, you know, but she appreciates that
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  Speaker 4: early introduction that got her on going on her board journey.
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  Speaker 4: So looking out for your teammates, all those things come together,
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  Speaker 4: we think to make for a successful, firm and successful career.
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