A lot of you have been asking me what you should invest in. So I’ll collectively answer your questions in this post.
First things first, investing, especially in today’s business climate, is so much easier than many might think. And this post aims at dispelling the fears that hold us back from getting ahead.
Money is important to us. It gives us the power and freedom to eat, have a roof over our heads, fuel up our transportation, buy new clothes and other necessities, go out for a night of fun, travel to far away destinations, and so much more!
But for the many of you who don’t have excess money just lying around, and work really hard for the little money you do have, it can be incredibly frightening to just hand your money over to some “investment.”
There are a lot of bad investments and scams out there, and you need to protect yourself against that stuff.
However, there’s never been a better time in history to be an investor!
And it’s also pretty simple if you make the right moves and focus on thinking long term, opposed to tomorrow, next month, or even next year.
So let’s dive into it and hopefully by the end of this, you’ll feel more comfortable about taking CALCULATED risks.
Nothing in life is a guarantee. But, as the saying goes, you gotta play to win!
Or better yet, “You miss 100% of the shots you don’t take.”
So, I would like to discuss 3 possible investment routes you can take, which I think you should be mindful of:
1) Bitcoin & other emerging cryptocurrencies
2) Top tech stocks & start-ups that show great potential
3) Overseas real estate in developing countries
Alright, so let’s dive right into this!
1) Bitcoin & other emerging cryptocurrencies
Bitcoin is up 806% this year!
In other words, if you invested $1000 1 yr ago, today you’d have $8060.
Basically you’d have made $7060 for doing nothing but buying some Bitcoin.
Now, if you had invested your tax return of, lets say, $4000, you would have made close to $30,000 in 1 year.
Again, for doing nothing.
The reason for this rapid growth is because Bitcoin and cryptocurrencies in general are new to the scene and can be viewed as an infant that will soon grow much larger into an adult. That’s the exponential wave we’re riding.
NOTE: Most people think linearly, such as 1, 2, 3, 4, 5, 6. But today, many industries are growing exponentially! In other words, 1, 2, 4, 8, 16, 32! You see the difference?! The result linearly in 6 spaces, is 6. But exponentially, the result is 32. And it gets way crazier from there… 64, 128, 256, 512, and so on. If we did that linearly, we’d only be at 10! Not 512. So, how this relates is, many companies, cryptocurrencies, and other investments are growing exponentially! In other words, they’re growing REALLY FAST! Faster than we’ve ever seen before. And where there is growth, there is money to be made in investing!!
So back to Bitcoin…
Right now, less than 1% of the World population is using Bitcoin. But that’s changing quickly because people and companies are beginning to trust Bitcoin, which means that it’ll more than likely grow well into a double digit percentage within the next 5 to 10 years.
Maybe sooner, who knows!
Right now Bitcoin is valued at $6,606 in US dollars (that could change by the time you read this!).
But Bitcoin’s estimate of future values ranges from $100,000 to $1,000,000.
So if we take the average estimate of future value of $500,000, and you invest in Bitcoin now at $6,606, then when it matures, you’ll have made a 7500% return.
In other words, if you invest $10,000 into Bitcoin right now, you’ll have $750,000 when it matures in, let’s say, 5-10 years.
That’s not too bad for doing nothing. And it’ll cost you less than a decent used car.
It’s really as simple as that—Bitcoin is hot right now and it’s almost guaranteed to shoot up. But you have a window of opportunity. Once Bitcoin is accepted and used by most companies and people, it’s price will level off, and it’s growth will become ultra slow.
Personally, I think this is the best bet you can make right now if you don’t know much about investing. And personally, I would go all in. And then not look at the price for another 5-10 years.
Just hold it.
And I might add, you don’t want to get trapped on the emotional rollercoaster of investing.
What I mean by that is, most people make decisions emotionally. And emotions can make people think and behave irrationally. And this absolutely affects the price of stocks, currencies, real estate, and other investments.
Day to day, week to week, even year to year, the price of shit can go way up—and way down.
But that’s okay!
Because you want to be a smart investor! And, in my opinion, smart investors think long-term!
Unless of course you’re a day trader, which I absolutely do not recommend anyone become if they are new to investing.
Take Amazon for example…
Take a look at the progression here and how crazy the ups and downs (volatility) looks in the short term—1 day, 5 days, 1 month, 1 year—and then compare that to the seemingly smooth progression of the stock at 5 years, and the entirety of Amazon’s existence as a publicly traded company, 20 years.
I hope that conveys the point I’m trying to make here, which is that a short term perspective can be deceiving, which can negatively influence you to take your money out because you think the world is crumbling!
But if you focus on long term results, you won’t end up getting trapped in an emotional death spiral.
Remember, the ups and downs (volatility) of a stock can be influenced by news articles, the economy, wars, and so much shit it’s mind boggling. But in the long term, most of those variables become irrelevant.
Again, the stock market and investing in general is absolutely more complicated than I’m making it out to be at the moment. But in the context of something like Bitcoin or Top Tech Stocks, I don’t really think so. Nothing in life is guaranteed, but you gotta take some level of risk if you want to take leaps forward financially, or in life in general.
This is where investing in many industries and owning many forms of investments (public equity, private equity, real estate, etc) minimizes your risk of losing it all!
This is referred to as “diversifying.”
Diversifying minimizes your risk in case the entire real estate market collapses, like it did in 2008 due to the subprime mortgage crash.
But even catastrophes such as that one can be weathered by long term thinking. If you hold, don’t sell, and wait out the storm, it’s very possible you’ll lose nothing.
So… again, back to Bitcoin.
If you’d like to buy some Bitcoin, it’s really simple:
- Open up a Coinbase account — the most trusted and popular Bitcoin exchange in the world. You can use my affiliate link, which, if you buy at least $100 worth of Bitcoin, we’ll both earn an extra $10 in Bitcoin as an incentive for opening an account (if you use a credit card, add $5 to cover the processing fee). You can get started by clicking here: http://bit.ly/2h60h7l
- Connect a bank account or credit card.
- Buy some Bitcoin.
And it’s that simple. Now you’re an investor!!
So, moving forward…
2) Top tech stocks & start-ups that show great potential
I love Tech stocks, because although we may think we’re over the hill and have advanced in technology as much as we will, we’re still in the infant stage of where technology is headed.
Here is a list of tech industries that are about to boom in the next 5, 10, 20, and even 30 years:
- Ai — Artificial Intelligence
- Ar — Augmented Reality
- VR — Virtual Reality
- Biotech — New technology that will revolutionize health, medicine, and our relationship with our doctor.
- Robotics & automation
- Self-driving cars
- Space Travel
- New high tech cities and construction
- And many more!
What this means for an investor is that this is just the beginning and we haven’t seen shit yet!
Which means there’s still a ton of room for growth. And if there’s a ton of room for growth, that means there’s a lot of money to be made if you’re invested.
And more than likely, all of the tech companies I’m going to mention below are already diving into one or more of the new industries I mentioned above, which will allow them to continue to experience exponential growth.
For example, Apple is already working on their own self-driving car as well as innovating in AR.
And Google has purchased all the top robotics companies in the world, so imagine Google connected to robots! (Might even sound a bit scary?! lol)
So, as an example, here is the stock growth of each of the top 5 tech companies over the last year:
Tesla — 67%
Netflix — 57%
Apple — 48%
Amazon — 40%
Google — 30%
Back in the day, it was highly unlikely to see a 41 year old company go up 50% in one year and be worth close to 1 trillion dollars. But, in the case of Apple, one of the top tech companies in the world, that’s exactly what’s happening today.
I mean, that’s insane!
However, to truly appreciate what I’m sharing with you, you gotta understand how compounding interest works. If you don’t, stop what you’re doing right now and Google it!
If these companies experience a modest 30% growth year over year for the next 20 years (which really isn’t that long), then… ya know what, fuck it!—Lets just do the math!
I’m going to use a compounding interest calculator, which you can find on Google as well 🙂
If you invested $10,000 in a company’s stock, never invested another dime the rest of your life, and that stock made an average of 15% year over year for the next 20 years…
You’d have close to $200,000.
But here’s where it gets really fucking nuts…
If you waited another 10 years, you’d have…
THAT’S the power of compounding interest!
And that’s only on one $10,000 investment. Imagine if you kept investing the rest of your life by investing 10-20% of your yearly income!
I’m 30 now. If I waited until 60 for that money to mature, I think I’d be a pretty happy camper if I decided to retire. And don’t forget, our generation will most likely live to 100 or more due to advancements in Health, Medicine and BioTech. So again, think long term! (I can’t say that enough!)
Now, of course, the stock market is more complicated than I’m making it out to be. But if you diversify across companies and industries, hold your positions, and don’t get wrapped up in the emotional bullshit of the ups and downs of the stock market (or any market) due to things like recessions and public emotional roller coaster rides that influence prices, then, more than likely, you’re going to make out like a bandit!
Another thing, I’m not saying the above stocks are the absolute best investments you can make around the world (investments that will experience the most possible growth in the least amount of time).
Because they’re not.
What I’m saying is that, if you have a limited knowledge of investing and want an excellent “set it & forget it” approach, then this is one of the best paths you can take in my opinion.
I look at top tech companies as great long-term investments. Investments you can feel confident about over the long-term.
Just dump in the money your willing to invest and watch the stock (or stocks) climb over time.
HOW TO START INVESTING IN THE STOCK MARKET
Now, this is probably way too advanced for you right now, but I think you should keep this investment opportunity front and center in your mind.
That’s because I believe overseas real estate in developing countries is an incredible investment. And that’s because I’ve seen it first hand!
For example, I’ve been living on and off in Medellin, Colombia for the last few years, and over that period of time, I watched the real estate go up somewhere in the ballpark of 50%. It could actually be more now. Medellin, Colombia is a hidden gem the world is just now discovering and is attracting tourists and investors like bees to honey.
And if you’re collecting rents, which of course you should be, not only are you making money through the value of your equity (ownership of property), you’ll also have cashflow coming in from rents that will continue to increase in value over time. And money being deposited in your account for doing essentially nothing (given you have a management company watching shit for you) is amazing!!
The reason why such RE investments are very much worth giving your attention to, is because, lets face it, America is in decline. I mean, fuck!—Donald Trump is our president. It made me cringe just saying that. So yeah, the U.S. is sort of leveling off and, I believe, will lose much of it’s remaining world power stature over the next 10 years or so. So, you can make money in America buying real estate. No question! But if you want to ride the wave of exponential growth, you should certainly consider investing in real estate in developing countries.
I’ll stop there for now, because if you’re new to investing, overseas investing may not be something you need to (or can) focus on right now.
Just keep it in mind for when you’re ready!
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Of course, I have to say this, but I am not a financial advisor. I do not guarantee any returns. This is simply my opinion and you should make your own informed decisions by doing your due diligence in terms of investing.