“It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges. It is an obvious lesson, but one frequently ignored.” A Random Walk Down Wall Street
Dear Reader,
Every stock you’ll ever own will be down from where you purchased it at some point in time.
Unless you get extremely lucky and buy one at the exact bottom, the truth is that you’ll always experience being down at some point.
For today’s letter, I really want to focus on the smart speculations we’ve made, ones that I’m personally involved in.
Before I do, I always want to encourage everyone to focus on cash flow with 90-95% of your wealth building efforts.
This is about building up a cash flow machine and a life with multiple streams of income from direct businesses you’re involved in or passive income investments.
Some of our top income plays right now are the following…
1. Single family rental properties purchased with GRM of under 9.
2. RichUncles.com (Private REIT) with a 7% yield.
3. PeerStreet.com (1st trust deeds) with a 7 to 10% yield.
4. FundRise.com (private REIT) with a 10.5% yield.
5. Whole life dividends from cash value (call Jennie Steed at Paradigm Life).
6. LendingClub.com (private lending) with about a 5% yield.
7. Deep-value forever stocks that are discounted today with great dividends. These are companies like Anheuser-Busch Inbev (4.3%), General Mills (4.25%), and Kimberly-Clark (3.9%).
We’ve also enjoyed a lot of success with micro-cap stocks, new start-ups that are being built by the champions of their industries.
They’re people like Amir Adnani (Uranium Energy and GoldMining), Keith Neumeyer (First Mining Gold and First Majestic Silver), Frank Holmes (HIVE Blockchain), and Anthony Lacavera (Globalive).
These are the people that I believe give a very real chance at making 10, 20, or even 50 to 100 times your money if you attach yourself to them and ignore all the noise of the markets, the ups and downs, the volatility, bull and bear markets, and just hold on for the ride.
The companies they run are NOT day trades – these are the types of investments where you accumulate them over time, stay up to date on their activity, and allow management to build a sizable company that can either be bought out or rewarded by the market with much higher valuations as cash flow comes in.
This takes years, though, and to complicate matters, you have inconvenient bear markets and thinly-traded exchanges that can wreak havoc when even a small seller of $25,000 needs out quickly.
***From 2000 to 2002, Amazon saw a decline of 98.7%!
***Yahoo fell 96.4%, Cisco Systems dropped 86.5%, and Priceline.com collapsed 98.3%.
When we swing for the fences with Amir, Keith, Frank, and Anthony, it’s not going to happen without volatility.
It’s the end game that we are investing for, and so are they, in my opinion.
The people I mentioned have very large positions in their companies, and I’m not talking about stock options like a Fortune 500 (corporate-employee CEO) company, I’m talking about real skin in the game, like a founder who is practically married to the company.
Right now, because of the way the gold market is and the collapse of Bitcoin, each of the names I just mentioned above are trading at extreme discounts.
You can buy them, sell, or hold. In the end, it’s not going to matter for the companies because the people running them are relentless. They won’t stop, and they are very methodical in how they build companies.
If you want to take a small percentage of your portfolio, I strongly suggest you look at the companies run by these individuals (links below). But remember, the payout potential isn’t next week or even later this year, so if volatility gets in your head, please save yourself the spiritual roller coaster and go buy a certificate of deposit and forget about ever speculating again.
But if you are interested in the type of gains that most investors only dream about, I urge you to take the time to partner with the right people who know how to do it because they’ve already done it multiple times.
Fortune favors the bold!
Best Regards,
Daniel Ameduri
FutureMoneyTrends.com
