<div class="bbWrapper"><blockquote data-attributes="" data-quote="Kak" data-source="post: 234131"
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That is a good way to think about it unless your assets devalue with just like all of the properties you want to buy.
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All due respect. Won't happen.<br />
<br />
Why? A belief. Based on what? Let me explain. As a Canadian, in my opinion...<br />
<br />
...the U.S. has developed, bar none, the absolute best capitalistic system that the world has ever seen (to date). I'm not saying that it's perfect. But it's really really really good. Capitalism is strongest in the U.S. like no other country on the planet. No matter who you are, entrepreneur or investor, you have the opportunity to make a little money, or a lot of money, whatever your born-gifts allow.<br />
<br />
I'm not an entrepreneur, I was for a little while, but it wasn't for me. For some, it's an obsession. For me, it was torture. I'm an investor. For some, that's torture. For me, it's an obsession. How do I make money as an investor? <br />
<br />
Simple.<br />
<br />
I understand entrepreneurs to a limited extent. I know that the U.S. system rewards entrepreneurs that satisfy some of the biggest needs in society. The U.S. capitalistic system also (brilliantly) allows non-entrepreneurs like myself, to piggy-back on the success of entrepreneurs via the capital markets. For me, the stock market isn't a casino, it's a place where strong entrepreneurs and businesses are rewarded and poor ones are punished.<br />
<br />
So what do I do?<br />
<br />
There is a small subset of entrepreneurs that are extremely intelligent and run really strong businesses. There's a smaller subset of entrepreneurs that bring their business to the capital markets. There's a smaller subset of entrepreneurs that retain ownership of their businesses without selling it all away. That's who I piggy-back on.<br />
<br />
I piggy-back on successful entrepreneurs, with a proven track record of increasing revenue and profit, that have taken to the capital (stock) markets, and still hold millions of shares of stock.<br />
<br />
But I don't blindly buy in. That's crazy. Why?<br />
<br />
It's crazy because the vast majority of individuals can't value a business. This can be seen in popular shows like Shark Tank where (even) entrepreneurs overvalue their businesses and in the public (stock) markets where prices are way out of line with any financial metric.<br />
<br />
I wait. <br />
<br />
What do I wait for? Let me tell you. Even though the U.S. capitalistic system is (almost) perfect, it does experience, from time to time, catastrophic crashes. Causes are debatable. But whatever the reason, they happen. What happens during a crash?<br />
<br />
Opportunity.<br />
<br />
During a collapse. There is MASSIVE opportunity presented to investors. People like me get the MASSIVE opportunity to piggy-back on the backs of the cream of the crop of entrepreneurs by buying stock in their businesses. <br />
<br />
Imagine that. <br />
<br />
I can be partners with people like Jim Jannard, who started the sunglasses company Oakley in his garage. Just because the stock market threw up. <br />
<br />
Imagine that.<br />
<br />
There are/have been many founder/CEO/entrepreneurs in the stock market. Dozens of them. Jim Jannard. Daniel Hirschfeld, Tom Kartsotis, Michael King, Warren Buffett, Maurice Marciano, Melvin Gordon, Gertrude Boyle, the list goes on and on. They address massive value and they get rewarded massively. And I get to be their partners for pennies on the dollar. <br />
<br />
Imagine that.<br />
<br />
Now, why would I say that a total collapse won't happen? Let me tell you.<br />
<br />
Because if a total collapse happened that "devalues my assets" it would absolutely decimate some of the wealthiest, most brilliant entrepreneurs in the U.S. capitalistic system. And if that happened. Well. Let's just say that we will all probably have a lot more to worry about than money.<br />
<br />
Won't happen. <br />
<br />
The same is true for real estate. I buy so dirt low that nobody can even build a property at the prices that I pay - unless you were able to teleport workers from China, build the property in Phoenix, and then teleport them back. And even then, I'm not sure you could do it because of the cost of the land. It would be damn close.<br />
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A total collapse won't do anything to me. It will allow me to buy even more. And if the U.S. capitalistic system survives. Which I have NO DOUBT it will do. I will come out the other side even wealthier. It's happened in the past. It will happen again in the future. <br />
<br />
I'd bet on it. <br />
<br />
In fact, by investing during those times, I'm always betting on it.</div>
