Capture Wealth: Trade Up and Advance Beyond Your Current Situation
There is no one in the world more known for purchasing value than Warren Buffett himself. The living legend investor even said, “Price is what you pay. Value is what you get.”
You might ponder the concept of what capturing value is and what it even means. What we usually think of as capturing value is directly related to cold hard money buying and selling something in one swift transaction, such as flipping a house or purchasing inventory for $10 and selling it for $20.
But consider Kyle MacDonald, a man who bartered his way from a single red paperclip to eventually acquiring a house in a series of fourteen online trades over the course of a year. How is it possible and what is actually happening for someone to start with something that is worth 5 cents and go to a 2-story farmhouse in Saskatchewan? Kyle has blown millions of people away with his story on how he did this, and when it’s all said and done, it was knowing the value of what he was getting vs. what he was giving up and making sure that what he was getting was more enriching than what he was letting go of.
It’s a powerful principle, and simple at that, but not enough people take action in their lives to implement these sorts of things. People are conditioned to believe that everything in life is a zero-sum game: you make money and you spend money. Or when you trade something, you need to give more than you receive, and therefore lose over time.
What Kyle MacDonald proved is that it’s possible to trade upwards and advance your lifestyle by understanding what you have and making smart captures of equity with your trades.
That’s what Warren Buffett did when he decided to purchase Coca-Cola in the 1980s.This infamous purchase of Coke now has a yearly dividend payment that exceeds his initial investment because of compound interest, dividend increases, and using those dividends to continue purchasing more shares as they’re paid out.
An Infusion of Cash to Enter This Sector
Many of the world’s assets are vessels sloshing around and spilling over with water because of the everything bubble that continues to prevail globally.
In 2017, we saw billions of dollars enter cryptocurrency, a vessel that was completely empty and attracted the interest of the world’s largest companies, eventually coming onto the radar of the mainstream. People who traded dollars for $1,000 Bitcoin understood that it is worth significantly more and converted their funds to something that went much higher. And by the way, I believe this is a sector that is still incredibly early, and the chips are still settling in it, which has 4-5 decades of real growth to ultimately play out.
I recently recorded a call with thought leader and Bitcoin enthusiast Trace Mayer and discussed this very thing. We also discussed the geopolitical scene and how our leaders are playing 3-dimensional chess, attempting to tweak hundreds of variables that would lead to economic growth or despair depending on how things play out.
This is a must-listen-to interview:
We will be releasing a long-term forever stock pick this week…
The goal is to capture value this week. I’m talking about a dividend-paying blue chip company where we will trade dollars in exchange for something WE KNOW has more intrinsic value than we are paying for it and are happy to do so with a long-term focus.
Here at Crush The Street, my goal is to symbolically trade paperclips for houses over the course of years and decades. And not just one, but many.
The only thing that holds us back in life is our set of beliefs. If you don’t believe something can be done, you won’t take action. And I will remind my readers as I regularly do that action trumps IQ all day long.
Chief Editor, CrushTheStreet.com