There’s an old adage that states: “It takes money to make money.” Ain’t that the truth?
We’re all told to sink a big portion of our measly paychecks into the stock market or bonds or some other such nonsense and pick our portfolio based on a combination of how far out from retirement we are and risk aversion.
What a crock of shit.
Playing the stock market is simply gambling. No investor on the planet can beat the stock market. None. All of the ultra rich who we are told got rich on the stock market either knew something about a company before it happened (so-called “insider trading”) or got it somewhere else (think George Soros and Bill Gates).
Well how can you make money then? Research and hard work.
First, let’s examine the money problem. Let’s say you find a budding company which you believe has an amazing product and want to invest in it. If you put in $1,000 and it goes up 1,000% you just made yourself $10,000. Certainly a nice profit, but not exactly anything to retire on or quit your day job. On the other hand, an investment of $10,000 turns into $100,000 at that same rate of return. Not a bad return!
This brings us to a more pertinent point: It takes opportunity to make money.
We’re at a point in history where emerging markets are disrupting existing modes of business and massive profits are obtainable for the average person. We’re talking ridiculous profit margins where you can turn that $1,000 investment into a cool million.
The problem, my friends, is opportunity.
Number one, you have to know which company in which to invest (and you have to invest at the right time). Number two, you have to be allowed to invest.
Wait, say that again?
Yeah, it is illegal for US citizens to invest in many of these opportunities because the government doesn’t think you’re smart enough to determine what is a legit investment opportunity and what is a scam. Over the years they have erected massive barriers to investment opportunities in the name of “protecting consumers.” It’s always that claim, by the way.
So if you want to pull yourself out of the debt cycle (which was also created by government rules) by investing in a great opportunity, you have to become a criminal in the process.
Land of the free?