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In The Media

Treasure Management, Investment and Playing With “House Money”

by Larry Chiang on October 31, 2011

Larry Chiang scandalously teaches at a school he used to crash classes at. He edits the Bloomberg BusinessWeek channel “What They Don’t Teach You at Business School”. After Chiang’s Harvard Law keynote, Harvard Business wrote: “What They Don’t Teach You at Stanford Business School“ (it is the same title as his NY Times bestseller). He is Entrepreneur in Residence at Stanford University and a VC. If you read his hilariously awesome “What a Supermodel Can Teach a Stanford MBA”, Enroll in Stanford Engineering 145 and “How to Get Man-Charm”, you will like his latest post about Treasure, Investment and House Money. These are all in Chapter 2 of his book.

By Larry Chiang

“I owe, I owe”
“Its off to work I go”
– Bumper sticker

Debt is a downer.

Losing money in Vegas is a a big downer too. My goal in life and when I visit Las Vegas is to start playing with house money as soon as possible.  House money is money recently acquired or won. House money is much easier to get in real life versus Las Vegas. This blog post will focus on real world house money.

-1- Managing Treasure When You Don’t Have Any

Debt can have momentum.  

If you’re a college student with school debt, you are in danger of getting debt momentum. Debt momentum is when you have school debt and you get credit card debt on top of it. It is not a good idea because the long term debt won’t kill you and your spirit, but your short-term credit card debt will wear you down.

-2- Get On the Right Side of the Interest Rate Equation

You want to lend money versus borrow it.

Remember, when you are depositing money at a bank, you are in essence letting the bank pay you interest to park your money there. There is definitely a right side and a wrong side to the interest rate equation. We want to lend money. We do not want to borrow money.

Me and my co-founders want to start a company that does car loans where the first car loan you get prepares you to never again owe money on a car. You see, I am Chinese and Chinese people only have one car payment. The all cash, cashier check at time of delivery. We might call it the “Larry Chiang Car Loan Company”. Our motto: be chinkie and never owe money on a car.

There is a right side and a wrong side to the interest rate equation. Avoiding credit card debt and car loan debt helps us manage treasure

-3- Manage Down Your Cost of Funds

The biggest expense most of us will have in our life is interest.

Interest is calculated based on how risky we appear to be.
We can manage down our cost of borrowing by appearing less risky. Risk is measured by an archaic system called Fair Isaac Credit Algorithm (FICO). Yes, the system is so dumb that FICA is spelled FICO. YOU CANT CONCOCT a story more silly.

Anyway, FICO scores can be gamed. When I say gamed, I mean hacked. In the same way that computer hackers break into computers, you can hack in and change your credit scores. What computer hackers do is illegal. What you do when you game and hack your credit algorithm is 100% legal. I know because I testified before Congress on this credit issue.

-5- Get a high FICO

24 perfect interactions.

You can either sign up or do it on your own

CEO of Duck9
Stanford University EIR (Entrepreneur in Residence)

Duck9 = Deep Underground Credit Knowledge 9
125 University Avenue/ 100
Palo Alto CA 94301
650-566-9696 (direct)
650-283-8008 (cell)

Editor of the BusinessWeek Channel “What They Don’t Teach at Business School”
CNN Video Channel:

Read my last 10 tweets at

Author, NY Times Bestseller

“What They Will NEVER Teach You at Stanford Business School” comes out 11-11-12

Duck9 is part of UCMS Inc.


If you liked this…
Larry’s mentor Mark McCormack wrote this in 1983.
His own book came out 09-09-09. It is called ‘What They Don’t Teach You At Stanford Business School

*** BONUS ***
a party invite for you…

This post was drafted in an hour and needs your edits… email me if you see a spelling or grammatical error(s)… larry@larrychiang com

Larry Chiang started his first company UCMS in college. He mimicked his mentor, Mark McCormack, founder of IMG who wrote the book, “What They Don’t Teach You at Harvard Business School”.
Chiang is a keynote speaker and bestselling author and spoke at Congress and World Bank.

Text or call him during office hours 11:11am or 11:11pm PST +/-11 minutes at 650-283-8008. Due to the volume of calls, he may place you on hold like a Scottsdale Arizona customer service rep. If you email him, be sure to include your cell number in the subject line. If you want him to email you his new articles…, ask him in an email :-)

You can read more equally funny, but credit-issue-focused-lessons on Larry’s Amazon blog .


What A Super Model Can Teach a Harvard MBA About Credit

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