The Prof G Pod with Scott Galloway - Office Hours: The Next Big Thing After Smartphones, Scott’s Favorite Things To Do in LA, and Advice to a 79-Year-Old Parent

Episode Date: June 21, 2023

Scott gives his thoughts on why mixed reality headsets are not going to be the next big thing for tech consumers. He then takes a question from a listener who is moving to LA and offers his recommendations on how to enjoy the city. He wraps up with financial advice to an older parent and shares what he would tell his sons at 79 years old.  Music: https://www.davidcuttermusic.com / @dcuttermusic Learn more about your ad choices. Visit podcastchoices.com/adchoices

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cards, savings accounts, mortgage rates, and more. NerdWallet, finance smarter. NerdWallet Compare Incorporated. NMLS 1617539. Welcome to the PropG Pod's Office Hours. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question, please email a voice recording to officehoursatpropgmedia.com. Again, that's officehoursatpropgmedia.com. First question. Hi, Scott.

This is Alex from Berlin. I'm reading all those reviews on VR, including yours on the Apple Vision Pro. And my feeling says that we are missing one important point in all of these reviews. All of these reviews are looking at the shortcomings of those goggles and how clumsy it is and how much friction is associated. But there is an interesting question that's beyond all of the current state of VR and goggles, and that is, what is the next big thing after the smartphone? And that's a trillion-dollar question. It probably won't be solved in the next one to three years, but I would love to get your thoughts on this. Are these VR goggles a preview of what's about to come? So I would love to get

your thought on that. Thanks for the question, Alex from Berlin. In 2007, Apple introduced the iPhone and really gave birth to kind of, you'd argue, the smartphone era. There's about is projected to reach 98 million people this year, while 23 million people will be exploring advanced AR technology. They estimate that by 2027, both AR and VR will exceed 100 million users globally, still a long shot from the billions of global smartphone users. According to Goldman, Goldman Sachs, that is, I call them Goldman because we're very close. And his estimates from Goldman are that the AR VR market will reach 80 billion by 2025. Meanwhile, Citigroup has estimated the sector will grow by more than $2 trillion by 2035. Look, I just don't buy into AR and VR. I shouldn't say that. I don't buy into VR. I buy into AR. I think augmented reality, being able to hold up your smartphone, you're in Soho, you're walking

by, you see a cool apartment building, you think, I'd really like to know what's available there. You hold up your phone, you put it into real estate mode. It shows you what apartments are for rent, how much it is, the layout, the floor plan. You click speak to a realtor. Someone comes on and says, yeah, that building is great. I can send someone to show you an apartment, whatever it might be. You flip on something. I don't even know what's AR, but it says, this is who's here, who's interested in having, you know, meeting up for a beer. I think there's all sorts of things you could do with augmented reality. I thought the next big thing was going to be voice. And actually voice assistants declined in usage for the first time last year, which really shocked

me. But I still think voice is going to have a lot of resonance and progress. I also think AI is going to be big. I'm an AI optimist. It's obvious you read my post on the mixed reality headset from Apple. I don't think it works for a few reasons. One, first and foremost, I think it's a Neanderthal that's this heavy browed Neanderthal that's headed for extinction because as a species, we don't want shit on our head that doesn't make us more attractive or more utile. If, in fact, the technology got to the point where it could be embedded, even for two or three grand, into a pair of Persals or Ray-Bans, I'm down with that. I think

it would be huge. According to Mark Zuckerberg, that is about 10 years away. The thing that struck me here is if Apple had released a car, I believe Tim Cook would have driven out in the car and gotten out of it. I think his buddy Bob Iger that was there would have been in the passenger seat. Did you notice that neither Mr. Cook or Mr. Iger got near this headset and didn't put it on? Did you also notice that the people who are allowed to beta test it could only use it for up to 30 minutes? Why? Because at about 30 minutes, it starts weighing on your head and you start feeling nauseous. So I just, I kind of think this thing is over before it begins. Now, having said that, a lot of really thoughtful pushback from people. One, my old business

partner, Ian Chaplin, who was always kind of the pragmatic technologist and the secret sauce in our success early on, he said, Scott, why wouldn't you want to travel with a 4K monitor wherever you go? That kind of makes sense. Put it on whether you're watching movies or doing a Zoom. You have this amazing 4K monitor that immerses you in whatever the situation is and the entertainment is. Okay, I get it. A lot of B2B applications, the next thing of spatial computing. Even my podcast co-host Kara Swisher has said, we've got to move from just staring at a screen or at our phone. I get it. I get it. And to be fair, Apple has the brand, the staying power, and the capital to probably iterate and get to something reasonable. I don't think this makes any sense. I think it was started or greenlit during an era when Tim Cook wanted a call option against the metaverse taking off such that he didn't get caught flat-footed by his nemesis, Mark Zuckerberg. One of the things I love about Tim Cook, other than he has added more shareholder value than any individual in history, is that I

just know deep down he hates the Zuck. And I like that. I like that a lot. He seems like a nice man. Seems like a nice man, doesn't he? Anyways, I would just like to admit that headsets and crypto just don't work and are never going to be more than niche markets. Crypto is never, it's about a trillion dollars right now. It's worth a third of what Apple is worth, the whole market. And I don't think headsets work. I could be wrong. I could be wrong. What is the next thing? I think the next thing is generative AI. I see my son, my 12-year-old, is on these design AIs coming up with new pictures. I'm using it all over the place. How many times do you use the blockchain today? Jesus Christ. Generative AI, you're saying what I think is the next thing? I thought it was going to be voice.

I thought 3D printing was stupid. We have an amazing 3D printer called China. The Internet of Things never made any sense to me. I don't need my blender to speak to the Internet. Wearables, in there and they now produce more watches than the entire Swiss watch industry. So if anyone could figure out how to turn chicken shit into chicken salad, it's Apple. But let's be clear, I think a mixed reality headset is in fact chicken shit. Thanks for the question. Next question. Hi, Professor G. This is Tristan in London. I hope you've enjoyed your first year in London. Apologies for the weather. I'm going in the opposite direction. I am about to get on a plane to LA. I'm in my mid-30s.

I have a job that I love. I work in a architecture, construction, and engineering multinational, consulting on innovation, learning, and development projects. i get to work with great people building amazing things the company has a great ethic and shared culture which is why i'm making this transfer i have 101 questions i could ask you a move like this affects everything from family friend finances relationships so what i want to ask is what do i do in that first week in that first month in that first year in the u.s i don't doubt you are a scholar of transatlantic culture and differences um what do i do to make this move a success thank you so i don't see these questions before people ask,

but this is one of those questions where I wish I had some time because I think I could come up with a really thoughtful answer, but I need a little bit more time. But anyways, here goes. I think the first thing you want to do before you get there

is reach out to as many people as possible who might know people there and say, I'm really up for meeting people and say yes to everything and go to a bunch of stuff and try and meet a bunch of people. I didn't get a sense for whether you have a partner or a spouse or kids or not. The second thing I would do is just logistically, I would try and create a cocoon.

One of the things I don't like about LA, I've lived in five cities, LA, San Francisco, Miami, New York, and London. The only city I would not live in, again, is San Francisco. And I don't buy into all the shit posting about what a terrible city it is right now. I think it's the most beautiful city in America aesthetically. I just didn't like the weather, specifically the monotony of the weather. It's always jeans and sweater. It's like, oh, it's 60 degrees. And I found it was politically extreme. I don't like political extremes on the right or on the left. Anyways, having said that, I love LA. I love LA. You get up there

and in February and it's 65 and clearing, you're like, Jesus Christ, I love LA. I love LA. You get up there and in February and it's 65 and clear and you're like, Jesus Christ, I love LA. What to do, my brother? First off, first off, the only thing that's not great about LA or one of the only things that's not great about LA, in addition to the massive increase in uptick in homeless people, which is obviously disturbing, is that you're in your car too much. So I would just logistically, in terms of your work and where you decide to live, try and create a little bit of a cocoon so that you're not in your car all goddamn day. And it's easy to find yourself in your car all day if you don't really plan. So give up on some space, give up on some amenities if you can live near your work such that you're not commuting all the time.

Oh, my God. Hollywood Bowl, Zuma Beach, the counter for breakfast at the Beverly Hills Hotel. Head out to Coachella in Palm Springs or just go to Palm Springs. Go down to Laguna Niguel. I mean, L.A., go to El Coyote and have margaritas and kind of mediocre Mexican food, but just absorb the vibe. Walk around Hancock Park. Oh my God, LA, Los de los Angeles. I love everything about LA. There's nothing, it's like what not to do, my friend. Go to the rooftop of the Waldorf for a fancy lunch.

Take a girl you're interested in impressing or a guy you're interested in impressing to Nobu in Malibu. And I think you wanna give yourself a year before you make any snap judgments because I live in London now. I've made a snap judgment based on the hell that is London's winter and think, you know, I don't like it that much. But the reality is it's a great city. And now that the sun is out, I'm like, oh, I love it here. The dog loves it here. The dog can run. The dog can run. And I've been going to a bunch of Premier League games, which, you know,

kind of sands over all the rough edges. But LA, oh my gosh, the Latin culture, the Mexican food, the entertainment, the fabulousness that the entertainment industry provides it. There's just so many incredible, fun things to do. In-N-Out Burger, for God's sakes, it's worth it moving to LA just for In-N-Out Burger. I like to go to the one, the first and last thing I always do when I go to LA. I fly into LAX and then I go to that great In-N-Out Burger on Sepulveda. That is my kind of port of entry. That is my ease of entry. That is how I ease into Los Angeles. I absolutely love the hotels there. Drive up the one or the 101 or whatever it's called, the Pacific Coast Highway. Stop in San Francisco and then San Luis Obispo. And then Carmel, the ultimate collision

of sea, sky, and land brought to you by God that is California. I just absolutely love Los Angeles. So drink it up, my brother. Say yes to everything. Right now, start finding people who live there and saying, hey, I'm moving to LA. I generally find people are pretty friendly in California or everywhere and say yes to drinks, say yes to breakfast meetings and just go out and find your people. But oh my gosh, what to do in LA? What not to do in LA? It's a wonderful, wonderful city, a collision of sunshine, of creativity, of Mexican and Latin culture, of interesting architecture, of Hollywood, of old Hollywood. I used to live in a silent film movie star's house, Pola Negra, I think her name was in, where was I? I was in Los Feliz.

Amazing. Los Feliz is amazing. What to do, what not to do, what not to do. And the first thing is realize how fortunate you are to be your age and have the opportunity to move to a great place such as Los Angeles. I am jealous. You're going to have a wonderful time. Well done, amigo. Welcome to Los Angeles, the city of angels, the city of angels. We have one quick break, but for our final question, stay with us. their investment approach? What learnings have shifted their career trajectories? And how do they find their next great idea? Invest 30 minutes in an episode today. Subscribe wherever you get your podcasts. Published by Capital Client Group, Inc. Support for this show comes from Constant Contact. You know what's not easy? Marketing. And when you're starting your small business, while you're so focused on the day-to-day, the personnel, and the finances,

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I'm a 79-year-old American living in Singapore with two teenage daughters. Yep, 79, and started having kids when I was 60. And they're the love of my life. I've been successful in starting and operating for many years a boutique international executive search company in incredibly business-friendly Singapore. I also have the option of operating my business in lower-cost Thailand, where I have a house and a second office. My elder daughter has just been accepted for fall admission at the University of Southern California School of Dramatic Arts with a good scholarship. My younger daughter will start college in three years.

Less any scholarships, I'm facing a million-dollar tab, plus or minus, for two U.S. college educations. I'm realistic enough to know I may not be around to see my daughters launch and grow their professional careers, but there's a quote I read somewhere which says, children are our gift to a future we'll never see. I like that sentiment. I have two questions for you. I'm not rich, but I'm okay. What financial or investment options exist to help ensure the money I do have is protected enough to see my daughter through college while leaving something for me and my much younger wife to exist on if we need to move to a lower cost Asian country? And question two, if you were my age with limited time left, what words of wisdom and advice would you pass on to your sons

that they would carry in their hearts for the rest of their lives? Thanks in advance. I'm sort of stilled by that question or those questions. First off, congratulations. It sounds like you have kids who love you. You're living in Singapore, which must be an incredibly interesting experience. It sounds like you were raised in America and you had the courage and the adventure to go to Singapore. So let me start with investments. You're at a stage where you're going to want to limit your risk because you don't have a lot of time to make it back

again. Your risk profile is different than someone who's my age, much less someone who is 25. So the basic algorithm for economic security, and I just wrote a book on this, is one, focus, find what you're good at, and find something you're good at that people will pay you for. It sounds like you found that. The second is live below your means. Live like a stoic. Recognize that things won't bring you happiness, experiences do, and your balance in your life will be a function of some sacrifices early in your life and living below your means. And it sounds like you're still making money. And this is where Thailand comes in. I think Bangkok is arguably, there's always sort of an arbitrage, a life arbitrage by moving. And the two biggest arbitrages I see, and what I

mean by that is moving to a place that has kind of the benefits of an urban or an urban sensibility and professional opportunity, but the costs of a more rural or lower cost environment, such that there's an arbitrage there, a lifestyle arbitrage. The lifestyle arbitrage in the U.S. used to be moving from California, New York to Texas or Florida, respectively. That margin has been starched out as more people move to Austin. Housing prices skyrocketed as they have in Florida. I moved to Florida in 2010. I bet the value of our home has doubled or tripled, so it's no longer an arbitrage for people moving. There's an arbitrage in two cities that I see that it's an incredible arbitrage right now. The first is Mexico City, incredible art scene, incredible food scene, still reasonably priced, and Bangkok. I just think it's an amazing city that's very cosmopolitan, interesting. If you have professional opportunities, I think Bangkok would be an

interesting place. Now, at the age of 79, you want to think about things like healthcare, but Bangkok has, I think, actually pretty good healthcare if you have the money. But if you could maintain a Singapore salary living in Bangkok, you'd be able to save more money. And then, so it's focus, time, stoicism, or living below your means. And then it's time of which you don't have 40 years. If you start saving $100 at the age of 21 a month, you're going to have a million dollars by the time you're 65. And you have about $100,000 if you start saving at 35. So, you know, just to be blunt, time is not on our side. I'll say that. I'm 58.

The key for you in one word is simple, diversification. And that is going into a series of investments. And there's now bots that can do this. And Charles Schwab can help you with this. That will help you make sure that you are sufficiently diversified. This is where you do not want to be. You do not want to fall in love with any one asset class, geography, sector, or much less in any individual stock

because the wonderful thing about the markets is nobody knows. You may think that Tesla is unstoppable and they may be and they may perform really well and the stock could get cut in half. You just don't know. So simply put, you want to be incredibly diversified and also pay low fees.

So things like Vanguard, ETF, index funds, you know, there's just no, there's not going to be an easy lunch here. I don't think you want to take outsized risks to try and hit it out of the park. And it doesn't sound as if you need to. What would I tell my sons at 79? You know, I wish I had been more, a couple of things. I wish I had been more expressive of my emotions. I was so insecure when I was young. I wasn't affectionate or kind as kind as I could have been to other people.

I wish I'd been more expressive of my emotions, told people when I admired them, told them when I wanted to be friends with them. So one, just err on the side of being kindness and also be aggressive. Express interest and friendship. Send emails out to people who you want an interview with. Approach, start talking to a woman you're attracted in the line in front of you at Starbucks. There's nothing wrong with expressing romantic interest as long as you make that person feel safe. So I'm trying to tell my kids to be more aggressive, that to be aggressive is fine. One of the wonderful

things about masculinity is we are more risk aggressive, so I would say lean into that. And that doesn't mean harassing anybody, that doesn't mean being obnoxious, but it means taking a lot of initiative. And then more than anything, and this is what my mom, I think there are two reasons for my success. The first is the generosity and vision of California taxpayers and the Regents of the University of California that gave me a near-free education from two world-class institutions, specifically UCLA and Berkeley. But the other thing was that I think I grew up with a sense of love, even though it was just me and my mom, and that love translated to confidence. My mom, just every day, in big and small ways, convinced me that I was wonderful. is just how much you love them and how wonderful you think they are. Because I just think that that's something you carry with you the rest of your life as a young man, that your father just

thought the world of you and just loved you immensely. Thank you so much, Steve. Best of luck to you. I'm really curious where you end up. Congratulations on your daughter being at USC. She must be very impressive. As much as I hate to admit it, USC is an amazing school now. And the fact that you're 79 and still working means you're healthy. You just sound like you're kind of killing it and living and continue to live a life of richness and reward. Thanks so much for the question.

That's all for this episode. If you'd like to submit a question, please email a voice recording to officehoursatpropgmedia.com. Again, that's officehoursatpropgmedia.com. This episode was produced by Caroline Shagrin. Jennifer Sanchez is our associate producer and Drew Burrows is our technical director.

Thank you for listening to the Prop G Pod from the Vox Media Podcast Network. We will catch you on Saturday for No Mercy, No Malice, as read by George Hahn, and on Monday with our weekly market show. I just don't get it. Just wish someone could do the research on it. Can we figure this out? Hey, y'all. I'm John Flynn Hill, and I'm hosting a new podcast at Vox called Explain It To Me. Here's how it works. You call our hotline with questions you can't quite answer on your own. We'll investigate and call you back to tell you what we found.

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