The Capitalist Investor - Episode 109

Getting rich quickly is all about taking risks. But the key is to not take on too much risk; get rich smart. Be strategic with the way you put your foot on the gas, place yourself in a position to hit the breaks. How risky are those NFTs? What exactly is the right amount to own in crypto, Bitcoin or even NFTs? Why is it cheaper in some places to buy a house than to get married? 2022 is the year for novice investors to do some homework because the story is changing and portfolios don’t look the same they did years before. In Episode #109 of “The Capitalist Investor,” Mark, Derek and Luke strategize different tools that everyone can utilize in the market, discuss common mistakes in the game and poke a bit of fun with certain politicians’ diluted agendas. This week’s episode is brimming with useful advice and humble experiences for the everyday capitalist.

Outline of this Episode:

  • [3:15] Get rich quick or get rich smart? Hint: both
  • [10:05] A new storyline brought to light in 2022
  • [16:30] Weddings these days –– more expensive than houses
  • [20:05] DeSantis’ ‘Escape to Florida’ humor

The key to getting rich: strategic risks

There are so many investment possibilities today that allow the everyday person to get rich. But one can either get rich slowly or get rich quickly. The former is safe but daunting, yet the latter is riskier. But we admire a bit of risk.

NFTs are as risky as it comes, but people are seeing major benefits to these little JPEGs. Some of these non-fungible tokens are selling at millions of dollars and catching a lot of popularity. But just like every “get rich quick” plan, NFTs are highly abstract and can lose you just as much principle as you make.

Another tool any investor can use is trading options. Options are of course a lot more difficult to figure out than regular stocks when it comes to the different factors like volatility and time frame.

Whether or not you own or partake in any of these avenues to get rich quickly: NFTs, options, ETFs, or Crypto, it’s ok as long as you have a core to your strategy and partake in the right amount. All of these “getting rich quick” plans are speculative, risky, and maybe portrayed a little daft by the traditional, old-fashioned investor –– but there are ways to use these tools with others that can make your risks safer.

The key is to be smart while you’re trying to get rich quickly. You can utilize these speculative assets in a larger portfolio –– one where when things get low and sell off you still can use that margin to buy low and not lose all your principle. Don’t borrow money you don’t have and simply don’t take risks you can’t afford. Getting rich too quickly means you’re taking on too much risk. Don’t just get rich quickly, get rich smart.

Whatever got you here, may not get you there –– times have changed

All the stocks that worked in 2020 and 2021, are no longer working or will continue to work. Those two years were unregular times, packed with a storyline about the typical consumer being flushed with cash, staying home and still buying goods without as many services.

Times are different now. We’re in a period of rising interest rates, an inflation crisis and a place where that consumer is no longer flushed with cash. The storyline is going to change, and valuation matters again –– investors are going to want to see cash flow and the period we were in before wasn’t quite doing it.

If you’re a new investor, now is the time for a learning experience. The market can come back on you and as long as you don’t lose all of your money, it can be a humbling trial. As investors, we’ve all made mistakes. We’ve all bought stocks where the price went backwards on us and maybe the stocks broke down. But it doesn’t mean you stop –– you just learn and adjust. It’s all about being smart and managing your risks.

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Keep Listening to The Capitalist Investor:
Episode 15:
Spending Strategies in a Bear Market, Ep #15
Episode 31:
Handicapping the 2020 Election, Ep #31
Episode 47:
11 Investments in Your Home That Pay Off, Ep #47
Episode 63:
Jeff Bezos and Amazon: Past, Present, and Future Ep #63
Episode 79:
7 Ways Biden Plans to Tax American Families (Part II), Ep #79
Episode 95:
5 Beaten Down Stocks to Buy on the Dip, Ep #95
Episode 111:
Special Episode – Talking Energy with Daniel Turner, Ep. #111
Episode 127:
Retail Earnings Tank & What The Heck is Greenflation? Ep. #127