#28 | Buddy Ozanne: The Three Kinds of Capital You Can Inherit

Level at 3,000 feet in solid cloud on the way back to Dallas, one engine quit. Buddy Ozanne declared an emergency. Then the second engine quit.More on Buddy Ozanne and this episode: thedealtablepodcast.com/episodes/buddy-ozanneHe tells the whole story here, including what the tower said and the worn wire and droplet of water that caused it. He was a private pilot with 1,700 hours, an instrument rating and a multi-engine rating, until he lost his medical.The rest of the conversation is about inheritance in a broader sense. Ozanne took over his father's insurance agency in 1976, learned estate planning when the top marginal tax rate was 70 percent, and later moved the firm out of transactional sales into the fee-only registered investment advisor model well before that was normal.His framework is three kinds of capital a family passes down, human, financial and intellectual, and he argues the third is the hardest to transfer and the most valuable. Around it: why clients stay for communication rather than performance, why you do not need home runs to win, what the Tech Wreck taught him about fundamental research, and hiring people smarter than yourself.Buddy Ozanne is the founder and president of Probity Advisors, a Dallas fee-only registered investment advisor. He took over his father's insurance agency in 1976 and converted the firm to a fiduciary model, and he specializes in estate planning and multigenerational wealth.KEY MOMENTS00:00 Wealth is not just assets01:23 Taking over the family business in 197603:53 Estate planning at a 70% tax rate08:10 Switching to a fee-only model20:44 Hiring people smarter than yourself27:40 Human, financial, intellectual capital30:05 Transferring the intellectual kind34:55 Why clients really stay49:50 A cold front and a flight plan54:58 The second engine quits at 3,000 feetNewsletter: thedealtablepodcast.com/connectLane Carrick on selling a business, The Optima Advantage: amzn.to/48nLElWFollow The Deal Table: YouTube, LinkedIn, Instagram, Facebook, TikTok, XThe Deal Table is hosted by Ryan Harper and Lane Carrick, filmed in Dallas, and produced by Harper Belmont Media.Sponsored by Capital Southwest.