Investment Portfolio Update – November 2022

What will happen in phase 2 of our investment thesis after the crash comes through and wipes everything out?

We will loan against our assets (or sell a portion) to raise our cash position.

Then we will take that cash and invest in apartments and sell storage facilities through; syndications, private placements, limited partnerships, and also buy dividend stocks, and lend out cash to other real estate investors.

Each of these investments will pay us cashflow each month.

If we lend against the bitcoin, gold, and silver we will pay off our interest expenses with part of our cashflow.

We will live on the difference.

Make your cash work for you.

Money should be working for you so you don’t have to be working for money.

Rule #1 of Rich Dad Poor Dad by Robert Kiyosaki; “the rich don’t work for money.”

The rich work to acquire and/or build assets that pay them and provide jobs to others.

For now, this is the plan in a credit or debt-based monetary system we find ourselves in.

If for some reason this changes and we are in a deflationary monetary system based on hard assets attached to our money then this plan will most likely change.

Still hovering around $20,000 channel. Just dropped about 10% this past week in fiat terms meaning you can get more bitcoin for your fiat currency because of crypto and scam coins going bust.

Bitcoin > crypto. Crypto is garbage. There is ONLY bitcoin.

An amazing buying time as altcoins and other scams continue crashing all around bitcoin.

Dollar cost averaging 2-3x as much as I usually do and saving most of my cash in bitcoin.

I feel safer everyday being in a finite money no one can corrupt or inflate away.

I continue to buy bigger amounts if prices dip a lot, like this week.

The REAL power lies in the fact that when you own and custody bitcoin in your own cold storage hardware wallet, you have become your own sovereign bank. No one can freeze you out of the system or steal or dilute your wealth.

If you leave your bitcoin on exchanges you will get REKT.

“Not your keys, not your coins.”

Bitcoin fixes so many of the monetary problems the central banks have brought on us, like inflation.

About ~20% in bitcoin.

**I expect bitcoin to become majority of my portfolio again in the next few years as it increases in value.**

Still looking to refinance one more rental prop to pull out cash and get more dry powder ready for what may become a very crazy next year or two.

I have heard that before…so I won’t hold my breath.

However, the market is getting destroyed by the rates rising though so it may be a great time in about 6-12 months to pick up some great deals…

Looking to utilize a family member or friend who is looking to make more than a couple pennies on the cash they have sitting in their bank.

I would rather hold cash short term next 12 months and have long term debts at low-ish rates paid off by our residents.

We have about ~35% in rental real estate.

**Remember that the dollar is debt. There’s nothing backing it so the further you can get into good debt and buy appreciating assets you will win long-term as government continues devaluing the dollar. (ie. Refinancing real estate and pulling cash out tax-free to invest in other assets will be the people who win long-term. Savers get crushed by inflation and minuscule interest savings rates.)**

I haven’t bought much in this area but I know hard assets will be sought after and will take over this next decade or two.

Primary assets are always a safe bet. Not the paper derivatives but buying the actual thing like an oil well or physical gold/silver.

Commodities, I believe, will be in bull market over the next decade or two as derivatives crash and primary assets come front and center.

Again, I would rather diversify in the analog world spread around different vaults and geographic locations that we can access in emergency.

We have ~14% in gold/silver

Stopped buying our eXp Realty company stock.

Really battening down the hatches.

Fed is committed to crushing things.

Would rather put it in assets I control.

When they pivot though, look out for those risk assets like tech stocks (nasdaq), they will go to the moon IMO.

Again, there will be a time for stocks in “phase 2” once the defensive positions and hedges (insurance) pay out, like I explained at the beginning of this month’s letter.

We have ~2% in stocks

Looking to invest in private companies like multifamily and self storage or mining operations for bitcoin if proposals make sense. Good cash flowing positions where I know the management, etc..

As you can see we are trying to raise a lot more cash for the next 12 months or so because I do feel like they are going to be some great buying opportunities.

Cash is going to be up toward 20-30% of portfolio soon but Bitcoin keeps that down because we keep swapping fiat for bitcoin.

Cash on hand is also good in case our long term view of inflation is wrong. If we experience massive deflation, and the dollar increasing in strength, then we will be able to use the dry powder (cash) to buy many more assets.

Expect to have more cash in the next month here as we refinance that rental and still going to speak with Ron Sneller about looking at transitioning our term insurance to whole life at some point.

~29% is in cash.

Overall I think we need to continue watching for what the federal reserve does and what is going on around the world. The dollar keeps crushing developing economies first and all of the other foreign economies that are more developed next.

The United States is the last one to be affected but eventually the song will stop and we will have no chair to land on.

This is not the time to get fancy and be trying to shoot the moon and “make a killing.”

Be defensive and learn as much as you can because great wealth will be transferred in the coming years here from those who did not understand the global landscape to the ones who studied and were diligent.

“Wealth is never destroyed is merely transferred,” as Mike Maloney always says.

This is why I have been a big proponent over the past few months of sitting on more dry powder (cash.)

This education process is what we have been going through for 12 years here and will continue to share what we find and what we are doing…

Trying to stay very liquid and don’t want a ton of cash on the balance sheet for more than about 12-18 more months because you are paying an option premium of REAL inflation which is around to 15-20% each year.

Keep in mind when making an investment it has to be beating 20-24% each year as Warren Buffett says.

Why I love saving IN bitcoin instead of US dollars, because it grows CAGR (compound annual growth rate) at 100-150%/year.

I ONLY want to trade my finite time for finite assets. Not trade my finite time for infinite pieces of paper/digits on a computer.

MAKE AN EQUAL TRADE FOR YOURSELF.

Stay strong,

My newsletter is based off of 20+ years of historical, political, and monetary study plus my experiences in investing.

I spent the first 10 years studying politics and history.

The last 10 years I have studied monetary, fiscal history and policy, along with investing through what I call our “family office.”

I always mention to anyone that will listen: you must know the financial and money games for ANY of the political side to make any sense.

***Special tip: watch the credit market (bonds) especially the 10 year treasury, to see where the markets are going to go. That tells us where the stock and rest of markets will go.