YouSaid · the spoken record

Joe Moglia

lines on the record: 61
first: 2021-06-25
most recent: 2021-06-25
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I'm really good at because of the experience that I've been able to late. That's kind of how I started out. And they were the same principles I believed in 30 years ago. I wish I were more experienced because with that experience comes knowledge and with that knowledge comes wisdom. So you can make better decisions for yourself and for your people, for your family. So it'd be the same. So that would be what I wish I had 30 years ago.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think 30 years ago from a football perspective, I think it would have been great to have the scheme knowledge that exists today, the ability really kind of go after, spread out the field, take advantage, not just the triple option that Oklahoma and Nebraska used to run, but true option attack, run pass, and do different things in effect from an offensive perspective. I think that would have been great, I think, for me to have back then. And with regard to the business world, I think really The principles that I build on today, what are your core competencies, you got to make sure you're taking care of your people. What really matters to your clients, your shareholders, and your associates, because it's your employees that give value to each of those constituents. For me, while the world's changed, I just groan with the world. I just adapted it. I do a good job of adapting, adjusting, and I've adapted with the world. But the principles I believe in so much today.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Whether it's coaching or athletics or business or whatever the field might be, what did Skill Sess require for success in that field? Do you have those skill sets? If you don't, do not go down that path. If you do, you still have to ask yourself one other thing, and that is, is this something you'd really love? The answer is there is yes, and chances are you've done a good job of picking the right career path. So it's kind of irrelevant whether or not it's finance or trading or investing or football. It's kind of like what works for you, not because this is something you're thought about, not because this is what your dad did or somebody you admire does. It's kind of what really works for you. And I think we would have a happier society if more people spent more.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think one of my principles of leadership is I call spiritual soundness. It doesn't have to be religious, but it can be. But I think most people don't really know who they are. And I think you become a composite of who I am relative to my mother, my father, my girlfriend, my wife, my job, what kind of executive am I, what kind of coach am I, what kind of friend am I, et cetera, et cetera. And if you sit down and you write that down and just keep writing and writing and writing about yourself and you step away from it, come back to it later, you're probably going to change 25% of things you wrote down. But the one guidelines you can never show it to anybody. The second you show it to somebody, you subconsciously actually look for their approval. So in order to be happy, I think you need to know who you are because you're going to have to make decisions under stress. And the better you know who you are, the greater the probability you'll make the right decisions. Now, one of those, and one of the most important by far is your career path. So if you know who you are, what kind of skill sets do you really have? What are the skill sets required?”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Probably my best, most favorite book is The Gold Coast, probably written about 30 years ago by Nelson DeMill. As the Gold Coast, meaning Long Island. And it's about the guy I think he was Stevie Bellarosa, who was a mafia guy that I think came in to buy one of these estates on Long Island for, I'm making up the numbers enough, like $16 million, and he brings it back in cash to that. And I thought it was a fun book. And I actually read it twice because I enjoyed it that much. Then the other, the book that I just finished, I just saw another one. It was Walking with Ghosts by Gabriel Byrne. It's his memoirs, and he's really a very, very, very, I've always respected him as an actor, but he's really a very, very clever writer. And I've gotten a lot of joy out of that. And then what I'm reading right now is Barack, you know, the one by Obama. Sure. And this is a long one, and I'm only about 130 pages into it, but some of it is really enjoyable. Some of it gets a little bit too much detail. I skip over a little bit. But that's what I'm reading now. That's what I just finished. And the other one's my favorite book.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“He was always in a bad mood. It was never his fault. The glass was always half empty. And I think he could have done a better job like delegating and had the other guys do work. And in terms of being a leader, and I mentioned before, my ability to delegate and how I run things and how I lead, a lot of that that I learned was from my father in terms of what not to do. So I think the two greatest influencers on my life were literally my mama, my dad.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Basketball apartment. And from my mom, she had such an incredible attitude, always with a smile on her face, unconditionally loved us, you know, always had her, the glass was always half full, you know, enjoyed laughing, but truly, truly loved us. And I think very much, I get my sense of humor and a lot of my personality, I think, from my mom. On my dad's side, dad was committed to make sure he took care of his family. He worked very hard in that food store, six days a week. And I learned how important a real work ethic was. And again, make sure you take care of your family. The difference regarding my dad, yeah, maybe three people working for him, and dad never had a hobby, and most times he's burnt out, and later on in life he wanted to become an alcoholic. But I could tell just the way he treated his guys, treated me, there was always, I felt kind of a better way to do something.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think you could talk about there are, as a coach, for example, I read everything there was to read about Vincent Lombardy and John Wooden. It was both very successful, but both were very, very opposite in the business world. Warren Buffett, you got Lei Coca, you got, you know, there were so many people there. But the people that really shaped my career, especially as a leader and as a person, but in football and business were my parents. And my dad was an Italian immigrant. He came here when he was 11, never finished eighth grade, sold bananas and apples in the bronches his entire life. My mom, he met my mom after World War II. In Ireland, she came over here to marry him. She never finished 10th grade. I was the oldest of the five. The seven of us grew up at the time at Bikement Street section in New York City was very much a gang area. I was part of that. And seven of us lived in the two bedrooms.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“A handful of those that I think they're really, really, really well done that I enjoy. And because they're episodes, you know, I'm not stuck to two and a half hours having to watch. That's number one. The other thing, though, in terms of podcast, the one that actually I do really enjoy is compound. And that's the one that Josh Brown runs. And I think I follow that. I think they've done a good job. And I think if I'm not mistaken, they're going to add compound and friends thing, which I don't think has started yet. But I've gotten a lot of value out of an enjoyment out of all those.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think a lot of people think just because I'm a football coach, I'm a crazy football fan, but I'm not. And I used to look at 35 hours of tape when I go home. I don't want to watch football. So I would enjoy, I would enjoy a movie. I would enjoy some of the episodes that they had on Netflix. I mean, whether it's billions, Ray Donovan, House of Cards.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“So that ability for me to just have access to him by itself was, I think, really, really terrific. And as you pointed out, he's the one guy, too, that had, but not as a coach. He was a player. There's a difference there. But certainly understands the world of football, whether it's collegiate or pro. And then certainly understands the world of business because he was incredibly successful there as well. So he was a very, very bright guy, as you would expect. So he was a wonderful resource for me to be able to reach out to.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“To add one point there that I think is worth adding as well, Barry, that he also played at the Naval Academy, where he was the Heisenberg Trophy. Then he went on to serve our country as he graduated the Naval Academy. So he missed about four seasons or so as a pro football player and still had the career he had. So when I decided that I want to go back to football, I recognized that I wanted to be able to reach out to as many people as were practical that I thought maybe could give me some insight. And one of those people was Roger. Now, one of my friends from Omaha, or my Admiral Bob Bell, he went to the Naval Academy around the same time that Roger did. And, you know, they were friends. So he made that introduction. And I went down to Dallas to meet with him. And we became friends. Was it uncommon for us to have dinner or breakfast if I were in town? And he never hesitated to talk to me if I reached out for something.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Down in 2018. My titles today are I Am Executive Advisor to the President. And he and I probably try to have dinner every couple weeks and talk about what we've got going on. And again, he's new, so he's making a lot of changes. All his decisions, but we'll talk about a lot of that. And then the other side, I'm chair of athletics, but the only responsibility I have in athletics is football. So football does report directly to me. And so they're my two roles. But I think President Benson especially would not hesitate to use me in different roles. For example, maybe visit the board, talk about different things, et cetera. So I'm happy for them to leverage whatever my experiences may be.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think one of the things that I certainly had a close, it was Dave Decenzo, our previous president, who just stepped down recently, that he was the guy that, frankly, put his credibility online by hiring me. So we always had a good relationship, and he and I would meet relatively frequently and talk about different things he had going on. I was always happy to give him my opinion. I was somewhat instrumental in the current president that we had that just officially began in January. Michael Benson. And the guy has an incredible academic resume, frankly, the best of anybody we have on campus. He's a true scholar. He speaks multiple languages. He plays multiple instruments, but he's also an athlete himself, his children are athlete, and he very much understands and believes and appreciates the significance that athletics can take in a university life. So my titles today have a step.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Think even with my salary, I was a pretty good barbed of college athletics, but I think at a dollar. That's a deal. With a dollar, I think especially with my background and I take incredible pride in being a football coach. I'm not just a football coach, whatever I can do to kind of participate in that or help. I want to be able to do. So we were in the middle of a global pandemic, of course. A lot of people had sacrificed. And I thought it was only fair that I gave up my salary.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I worry about how that gets controlled. I worry about whether or not teams, and there's so much money involved, as I pointed out a minute ago, so much money involved, there's even more of a propensity potentially to take advantage of that. And by that, I mean crossing the line and cheating. So I see an uptick in that, which is a negative. But moving this direction, I think, is the way of the world. And I'd rather do with it and have a control on it than follow it along.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Athletes now, I think the majority of the states, I think, have already voted that student athletes can get paid for the use of their image. And I don't necessarily disagree with any of that. So I think that's the way of the world. I think that's the way the dollars are going. Enough dollars go around, so I can appreciate that's happening. So if it's going to happen, take a leadership role in it. The issue. The concern that I have is that this becomes easier to cheat. So if you go back and”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Is a pretty significant thing. But the TV contracts are so significant today that the amount of money a power five school makes from their league, from their conference, just in football alone is astronomical, far greater than, let's say, what the entire athletic budget would be at Coastal Carolina. So with that amount of money and look at coaches at the Power 5 level getting paid four, five, six, seven, eight, nine million dollars and schools being able to get rid of a coach and not have a problem with a $10 million payout and then hire another guy for $67 million a year. There's a lot of money there. And I would suggest that a lot of that money is actually being wasted. So for the student athlete, raise their hand and say, hey, I'm a title to some here. And I think the NCAA could have been taken a far greater eliteship role in this, but they didn't. So at the end of the day, I think this is part of evolution that we're moving in this direction.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, being a business guy, you know, Barry, I certainly think you got to follow the money and you got to pay close attention to that. So I think if you really understand money flow and how it works, a lot of times it's not that you're a soothsayer or a fortunate teller, but you can kind of tell what's going to ultimately happen. And with regards to this, to preface it for a moment, when I went to college, I was married. I had a daughter. I had favorite down my education. And we have about 125 guys or so on the team. Well, only 85 have scholarships. That means we've got 40 guys on the team that do not get aid. And they treated exactly like the other guys. And they got to work just as hard as the other guys. And they're not getting money. So you would think then to be able to provide a student athlete with room board books tuition.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“You're 100% right. You see that exactly right. And I think part of that is a tremendous emphasis, of course, in terms of strength training and workouts and things like that that, frankly, take place over the span of the entire year. So if you look at football, but this is true in other sports, our guys list at least twice a week. And the offseason that becomes three or four times a week, perhaps five times a week, depending on what we have going on. So in effect, you're working out year-round. That's number one. And the number two pieces, you know, after 25 years, look at mortality rates. You know, 75 years ago, mortality rate may have been 50. Today's 85. So there's also the element of evolution that is taking place. You know, the typical bit fast, a little bit stronger, a little bit larger, a little bit, maybe a little bit smarter, all of those things, I think, have taken place over time.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“That hasn't changed at all. It hasn't changed at all. So I think about what it was like when I was growing up. It was like when my children were growing up. I think what my plays were like the first time and when players were like this time. And the concern about peer pressure, the concern about the issues associated with drugs or sex or alcohol, the pressure potentially that might come from a parent or with respect to coach or with respect to your teacher or with your girlfriend or boyfriend or whomever it might be, that hasn't changed. So I think number one, you got to recognize that. And while the world's changed around it, the basic human being, what makes us tick, What makes this tick inside? I think that was true 50 years ago. I think that's the way it is today. I think that's going to be true 50 years from now.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think doing both for the truth and fundamentals is one of the things that I think would give us a competitive advantage. Now, let's look at the player. So you've got, you know, your 18-year-old kid who's constantly connected because of technology. So there's more information coming at him or her than has ever been the case in the past. And I think because of that, there tends to be a little bit more pressure perhaps to produce or how you interact with your peers or whatever it might be. So while the world has changed and everything is faster and everybody's connected and everybody's got playing and looking looking at their phones all the time, the basic thing that makes up a human being, a young boy, a young girl as you go through the beginning of adulthood.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“So, first of all, the simple thing they took the hash marks and they brought them to the middle a little bit. So you had, in effect, a wider field. Number one, number two, the game has certainly sped up very few people even huddle up today. Now, we did that too, but that was a two-minute drill. And we need to handle that both offensively and defensively. But the only time people really did that was when they were in a two-minute drill. Now pretty much everybody does that. I think when you look at sets that existed there by that, I mean formations, typical offense is very much spread out across the field. That wasn't always the case back then. So the game's faster. There's more combination, I think, for passing and running, probably more passing, and the speed of the game. Now, I think today there's also more of an emphasis placed on schemes. Whereas when I coach first time, he's probably more of an emphasis placed on”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“You had to be willing to make tough decisions if that wasn't the case. I think you also then needed to be able to definitely delegate to those people. And again, I said before, you needed to have a sophisticated enough strategy to handle contingencies down the road, but simplify it so you can execute. Every one of those things, Barry, were things that helped me become a better football coach. So my number one priority.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think with regard to the business world, we were always so aggressive. This is true also the divisions I was responsible for Merrill Lynch, so aggressive and trying to do as much as we can. To me, it wasn't so much the bottom line. It was maximizing your potential. So if you can earn a dollar, the street expects you to earn a dollar and you commit $1.10, everybody's patting you on the back. But I would want my executive team to know, was the dollar 10 the most we could do or should we have done $1.20? And so maximize your potential whether it's football or business was always a priority in mind. I certainly felt that strongly in the business world. The second piece of it, that in order to do that, in order to have thousands of people and multiple things going on, you had to absolutely make sure you had the right people around you. Period. You had to make sure you had the right people around you that bought into what you believe in and people that you count on to trust.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“And I think without question, I had gotten in Miami. I think had I not gone to Wall Street, I think it would have been a major college coach at the biggest schools in the country. And I think I would have been very successful doing that. And maybe there was a piece of me that wanted to take a shot at that.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Not risk papers, they're not risk reward people, but think about it, think about it. And I really did, and I really did. And I spent the next six, seven months, truly, truly examining my conscience. This is something that I wanted to do and looking at the pros and the cons. And it hit me that number one, at this point in my life, while there were a lot of other things I could do, would I not get greater satisfaction by going back to football and really having an impact on helping 18 to 23 year old boy really kind of growing up and becoming a man. And I didn't think I could do anything else that would give me greater satisfaction at. Number two, and I think this was subconscious, I didn't acknowledge it out loud, but I do think it was subconscious in hindsight that I left football to go to Wall Street when my career path was on a great path, when my career was a great path.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Done so well. Frankly, I had never been in more demand in my career. And there could have been some very, very significant opportunities, but I didn't step down to take other opportunities. And then I got a call from a group of alumni at Yale telling me that the football job may be opening or would I be interested. And I remember literally, I was in a hotel in Vermont. And I remember looking at my telephone and putting it back to my ear and said, guys, I said, you know, I have a coach for over 20 years. They said, we know that. But we spent a lot of time looking at the skill sets that required of a head coach. We think you not only have those skill sets, but you have better advantage other people don't have. And I said, there's only one problem. What's that? Well, 135 years of college football, nothing like this has ever happened. And somebody like you is not going to be hired unless they're signed off from the president. And a typical president in academia may be very, very smart.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“When I stepped down in 2008 as CEO, and that's one of the firm asked me to be chairman, we had had a 500% return for our shareholders. And we outperformed every financial firm in the globe then. And in 2008, when the world was blowing up, and that includes the financial crisis, but when the world was blowing up, we got it right. We didn't do any of the things that everybody else did. And I said, part of that is, as I mentioned, I grew up in the fixed income world. And I pushed the envelope. I'm always pushing it. I'm very, very aggressive. But never to the point where you cross a line. And never to the point where you cross the line too aggressively, i.e. with leverage where you potentially put your institution at risk. So we got it right. So I sat down in 2008, and I had been working pretty in my father's fruit store since I was 10 years old. And I was ready to kind of take a break. But because we had.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“And the cyber attack is the one that probably scares me the most. So from the United States perspective in terms of just national defense, we have to make this a number one priority in every business in our country and probably around the world that has serious technology, part of what they do. And I think that should probably be everybody. You've got to be able to protect that and do everything you can to stay ahead of the game. And if you don't do that, you're going to fall behind. You can't afford it to fall behind.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Whatever the most is, a firm can do, they probably have to increase that. So it's got to be the number one priority. I know when I was asked a lot of times, and using the term that you just used, no, what would really keep me up at night? I knew we were doing a really good job with executing our business plan. And I knew we were doing a great job with our numbers and with our people, et cetera, et cetera. But at the end of the day, we're doing everything we can to make sure our technology is failproof. But we know that nothing's perfect. And what happens if we get blindsided? What happens if we get a hacker? We've got people who do nothing to try to hack into our system so we can prevent hackers from hacking into our system. So this is not going away. And to me, Barry, the single greatest risk in the world today is terrorism. And terrorism can come at you a number of different ways, not just by flying into a building, but they can have a biological attack. You can have a chemical attack. You have obviously a nuclear attack. But you can also have a side.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Ball run here in Expo these last five years. The last two, three years, you know, we've had some really good day trading going on. But at some point, the market's going to turn. And I think it behooves the robinhoods of the world. Ameritrade does this. Schwab does this. Now it's SWAB. Schwab does this. Other firms that have been around a while do this. But you've got to educate your client. So for example, let's say you have a GameStop trade on, you know, you bought it a 10 and it goes to 20, 30, 40, 50. Well, should you have taken something off the table? No, we're going to wait to 200. Oh, it gets 200. I take something off the table. I think you need to help people understand how to manage.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think number one, I think it's great that we've got younger people coming into the marketplace, even if they come initially as day traders. I think because those people are so quired and so connected and have played games themselves, but are certainly incredibly efficient with regard to what they have regard to technology, I think the idea of gamifying that was, I think, probably a pretty good marketing tool. And with the leadership that the retail investor has, the day trader has seen from the Reddits and the Ask Kevins of the world, et cetera, they've been able to put on some pretty significant trades. The concern that I have is that, so I give the retail investment, I give Lobhood credit for that, but the concern I have is that think back to the 90s, when the dot-com bubble burst, there were significant day traders in the 90s. They went out of business. At some point in time, we've had a pretty significant...”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“To your client base, but they're the different ways you make money. I would like to add one more point. That's off trading. So keep in mind that you want to be able to diversify from trading as much as you reasonably can. So therefore, the growing of the assets, the use of the IRA, the RIH, the use of type portfolios and different asset allocation tools and risk management tools help you do that, help you be able to diversify maybe getting involved more with fixed income is another way to be able to diversify. So you want to be able to diversify your revenue stream away from trading. But with regard to the trading, you still make money, you pay my portfolio flow, as well as what you do with the assets. When you have very low interest rates, as we do today and have for a while, that's more difficult to do.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. So the way you make money, you can make money by your commissions. Now they go away. Then you have your payment affordable, but then you have your asset base. And the ability of any brokerage firm or bank to take those assets and reinvest those is another way to generate incremental revenue for that particular firm or bank. Now, I think when you look at that situation specifically, you also start to recognize then as interest rates with higher interest rates, you can take advantage of the yield curve there where you might be paying 1% to the client going a few years back now, but you might be able to make three or four or five percent in the case of a bank maybe doing a mortgage, in the case of us investing and fixed income type securities. But you've got to manage that as your balance sheet. And you still, of course, have the liability to.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“On the payment order flow piece that we were able to control, we gave price improvement on a ratio three and a half to one. So the client benefited three and a half to one times what we would have benefited from it.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“From the time I showed up at Ameritrade, you know, the number one priority is make sure we were taking care of our clients. So it was always a commitment to make sure that they got the best execution. Now, when you were making money back then, I'm sorry, when you were charging fees back then, you got both. You got the commission as well as the spread and payment order flow. But the client was still getting best execution, but they were paying $8 or $5, $7, whatever that was. Now, keep in mind, too, Barry, back then, you know, technology was not as good as it is 20 years later when commissions went to zero. But it was good, but not the way it is today. I mean, obviously technology improves significantly from one year to the next, certainly from every two or three years to the next two or three years. So you had that going on. But with regard to that, the individual investor still would get price improvement. So when I stepped down by the time we closed our deal on”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“The client really does get excellent execution, and he or she is Getting it for free. But at the back end of this tremendous expense involved as well as complexity and that it's taking care of by payment for”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think you've got to look at that from two perspectives. First, do it from the perspective of the trader. So everything's pretty simple. You go to your website, boom, boom, boom, you put in a trade, it gets executed almost always instantaneously. And you have to get the best execution at that moment in time of the marketplace. And all the time, you actually get price improvement. That's what you see up front. And that costs you zero. Now look at the back end. Behind that, you've got gazillion dollars worth of infrastructure, technology, regulatory, many, many, many different things that need to take place. So when you do the trade, it goes through the broker right to the market maker. The market maker, in effect, has a spread. They have to give the client the best execution of that time. You decide as the broker how much price improvement you want to give them, and then you keep the rest in terms of payment for the flow. So the way you pay for this is through the payment portal. So on the front end,”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Different types of investors that actually are out there, not just the trader or the active trader, but also the long term investor. And you're gathering assets while we go. So when we did, you know, when we announced the Schwab deal, I think we were at about 1.5%.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“I think from the very beginning that was the principle. And I think that also the reason, part of the reason why I thought it was so important to lead to the consolidation of the industry was because you wanted scale. But I think the best answer through zero commissions is a real quality asset base. So the focus on being able to gather assets also became very, very important to us. So the consolidation helped us with synergies, helped us with scale, help only helped our profit margins. It allowed us to grow market share when we purchased data. Ameritrade bought KD Waterhouse from TD Group. And that's when it became TD Ameritrade. And so you're spreading your risk out over the”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“We got to zero. I think we got there faster than anybody anticipated when Schwab decided that they cut commissions to zero. There was always that, we always thought that that was that possibility. In my head, if I had to guess, I would have guessed probably that would have happened around 2025.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, I think in Chuck Schwab's book, he actually, I think, predicted back in the early 90s or at some point in time that it might be free. But I think from a business perspective, I talked earlier about you have to have a thoughtful strategy that handles contingencies down the road. Problems, issues that pop up. Well, there was no question. You just look at the history that the fees commissions were being squeezed and squeezed and squeezed, and they were just going to continue to go down. So we always believe that there was a shot, that one day there made these zero commissions, and we better be prepared for that, but we didn't want to waste all of our time on that because we really had businesses. We got to run. But probably I'd say pretty much every board meeting, there was some discussion, almost every board meeting, there's some discussion about what's going to happen if we commissioned up going to zero. And then eventually,”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“So there are basically three ways that I think a brokerage firm to make money with regards to, at least with regards to its trading. The first is the commissions you're charging. And the second one would be the way you manage your assets, which are the client assets on the balance sheet. What do you do with those assets? Do you invest them? How do you handle that? That became a big issue in 2008, of course. That second one, that third way would be payment for order flow. So there'd be the three ways in effect that you can make money. Back then, back then, though, the dominant revenue stream was for trading and our commissions.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“Part. And as I said, we really want a financial service front. We were really a technology firm and a financial service wrapper. And as long as you got your priorities straight, that certainly helped us out significantly over time.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“But when I got to a merit trade, while we were really struggling from a financial perspective, the one thing that I thought Merit did very well in the 90s was when they went public, they took a lot of that money, they poured it into marketing, and they poured into technology. So I was aware of that before I took the job. So for me, I didn't know much about online brokerage. I didn't know much about technology, but there's nothing new in that, but I knew how to run a business. And I had people around me that all knew all those things. So I think with regard to technology, I think you got to be aware that you've got to be religious with your fervor in terms of making sure that you're staying on top of how can we break down, what the contingency plan, what's going to happen. There's a lot going on. How are we going to be able to do that? And, you know, we needed the right people in leadership roles, and we needed to make sure that we knew it was a real commitment on management.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“When we were worth a billion 150, and again, we screw that deal up. We are gone. We were out of business, but we had a home run with NDB, and we had a home run with Date. And we delivered above and beyond what anybody thought we would.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“And with the DayTech deal, we were losing money. They were making money. They were by far our biggest competitor. They were taking market share from us. And frankly, when they wanted to do something strategic and they put together the memo of details associated with trying to do something like that, we didn't even get that. And they weren't interested in doing something with us. So I figured out who the leaders were. They were owned by private equity, the three dominant ones were TA and Bain and Civil A. And I actually flew to Boston and I met in a private room with Steve Payuca, the guy at Bain. And we kind of worked things out a little bit on the back of a napkin. The next day I met with their board. And then shortly thereafter, I met with our guys. And then eventually we figured it out. But again, once again, we didn't have any cash, so we had to do it for stock. So this was a 50-50 deal. So we paid a billion 150 for them.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“That was about 2002, so I'd been there almost a year, and we had gotten our act straight. And the first deal we did actually was National Discount Broker. And they were owned by Deutsche Bank. And we paid $154 million for them, but we had no cash. So we had to do it in stock. When we were worth about $700 million. And if we had not gotten that deal done right, we would have gone out of business.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source
“You talk about 11 people functioning at once with zero error. Well, in the business world, there are a lot of firms, I think, that don't maximize their potential because it sounds like a grand deal strategy, but it's not simplified enough to really truly be able to execute. So if you take all those things together, and whether I was talking about football or whether I was talking about the business world, they would really be the same principles, these actual principles. The only thing that's different, Barry, is the product, the product of football is very different from the product of finance. But the principles behind running a good business, a successful business, being a good leader in each are really the same.”
2021-06-25 · Masters in Business · Joe Moglia on Going From Football to Wall Street · IDENTIFIED FROM THE TRANSCRIPT · source