The Solomon Investor

029. How to Identify Investments That Withstand the Test of Time

Episode Summary

Gold, Bitcoin, Stocks, Real Estate… There are so many different ways to invest your money. So, how can you determine if an investment will be able to stand the test of time? There are 3 key points in every investment that will help you identify whether or not the investment will allow you to grow exponential wealth and hold it sustainably. Boron Capital CEO and Founder, Blake Templeton, takes a deeper look at each of the asset classes and the 3 key points pertaining to each asset to better help listeners understand how to determine which opportunity is ideal for lasting wealth.

Episode Notes

Gold, Bitcoin, Stocks, Real Estate… There are so many different ways to invest your money. 

So, how can you determine if an investment will be able to stand the test of time? 

There are 3 key points in every investment that will help you identify whether or not the investment will allow you to grow exponential wealth and hold it sustainably.  

Boron Capital CEO and Founder, Blake Templeton, takes a deeper look at each of the asset classes and the 3 key points pertaining to each asset to better help listeners understand how to determine which opportunity is ideal for lasting wealth.  

--Become a Solomon Investor Today: http://solomoninvestor.com

 

-- Speak to our team to learn more: https://legacy.boroncap.com/free-call

 

-- Make sure to subscribe so you never miss an episode!

Key Takeaways:

What is an asset? (1:08)

3 key points on gold (2:01)

3 key points on Bitcoin (9:11)

What drives Bitcoin’s price? (10:48)

3 key points on the stock market and mutual funds (13:05)

3 key points on commercial real estate (16:05)

What is a 3D investment? (18:21)

Links to must-watch videos mentioned in this episode:

Warren Buffett moved into Gold. Should you? 

The Biggest Ponzi Scheme in History

--Become a Solomon Investor Today: http://solomoninvestor.com

 

-- Speak to our team to learn more: https://legacy.boroncap.com/free-call

 

-- Make sure to subscribe so you never miss an episode!

 

Connect with us on Social Media: 

📱Facebook: https://www.facebook.com/BoronCapital 

📸Instagram: https://www.instagram.com/boroncapital 

💬Twitter: https://twitter.com/boroncapital

 

-- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this episode is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Episode Transcription

Gold. Bitcoin. Stock market. Mutual funds. Real Estate. How do you identify the investments that will stand the test of time?

Today we'll talk about all the major asset classes and help you gain clarity and understanding on how to protect your investments in this current economy, and how to actually build wealth that will stand the test of time. Hi, my name is Blake Templeton, CEO of boron capital and your host on The Solomon Investor Podcast. It is here that we are teaching on investing business and financial literacy for Christians and beyond. If you've been looking for the blueprint to break out of the rat race, to have the purpose you've actually been created for to live the lifestyle you've dreamed of you've come to the right place. Subscribe to this channel. We're rolling out weekly episodes and I'm on a mission to help you grow in your personal development, your business and your wealth. Also click on the bell icon so that you're notified every single time a new video comes out. Please let me know in the comments below what questions you have or concerns you have about our current economy, where your gaps are so that I can create videos just for you that will help you take your life to the next level. Before we talk about each major asset class. Let's define what an asset is according to invest topia, and asset is a resource with economic value that an individual corporation or country owns or controls with the expectation that it will provide a future benefit. Okay, now, expectation of future benefit. It's very objective. So let's go through with wisdom, look at each major asset class and see what would be best for growing exponential wealth and holding it sustainably. The three key points to pay attention to here are one owns or controls number two, expectation number three future benefit. Let's now do a deep dive on each asset class utilizing our three key points on the definition of an asset. Gold is a commodity that unlike oil and gas, once mined, stays in circulation for years to come. This precious metal in the beginning of time served as money and allowed people and governments to use it in exchange of value. Gold had been valued by the ancient kings and is to this day, one of the identifiers of wealth of countries, but is gold an asset that will produce real sustainable wealth for generations to come? Let's take a look. If we go back 100 years ago, in 1920, the price of gold was $257 per ounce. So if you would have bought gold then or even in 1970, would have dropped even lower, at $241 per ounce, you actually have a very safe Foundation, that would be in the lowest that gold had ever been in over 100 years. But today, we're near the all time high sitting at $1,889 per ounce. To say that another way, the foundational control of the spot price hasn't gone above what it was in January of 1980. When it was at $2,269 per ounce. See, we will not see a trajectory of appreciation going up every single year. When we go back 40 years, and we still haven't hit the high from 40 years ago. That doesn't give us a expectation of future benefit. Okay, let's go back to three key points. Number one, can you owner control gold? The answer is yes. You can literally take control of it, you own it, and you have tangible authority over it. Question number two, can you have an expectation of what it's going to do? Are you actually able to have a expectation of what the value is going to do? So many times in history would have said yes, absolutely. And then it did the quite the opposite. The problem now is we're printing money, monetary policy three, the more money you print that really manipulates all the constants that we previously had gold had a very strong correlation with multiple different constants. And unfortunately, all those are broken understanding to that. Our third point, can you have a future benefit the expectation of a future benefit? We're looking toward the future. We want to know Am I going to make money with gold and right now, understanding that when we look at our hundred year rule, the rule of thumb back 40 years ago, it hit the all time high and we haven't hit that all time high. 

In the last 40 years, that means it hasn't appreciated enough to actually resume the previous high of 40 years ago. To say that another way, if you would have bought gold 40 years ago, you still wouldn't have broke even not to mention how many years you didn't make any profit at all. If you would have bought in April 2001, when gold was at $383 per ounce, then I'd say congratulations, I would then say, yeah, you control it, and you own it. And you can expect a future benefit. Why? Because if we look at our 100 year rule, we see where gold has gone. And we now know where it's at, it was over 2200. And now we're at 383. So sure, the trajectory looks really, really good for the future. However, today, gold no longer has real tangible utilizable value. The demand is solely emotionally correlated, like the stock market. And it doesn't have organic growth, that will stand the test of time when selling gold coins or gold jewelry and you're wanting to go cash in, you're going to go to a broker, and they're going to give you something lower than spot price lower than market price for your gold. Why? Because they're a broker, they want to make a little money right now, in the middle. However, if you're wanting to go invest into gold, you're gonna pay above spot price, you're gonna pay a premium. Why? Because it's a broker, the broker actually is taking the gold giving it to you, and they want to make a little money in the middle. So the only way you can actually make money at all on gold, is to actually hold the long term and pray. Robert Kiyosaki says, I do not own gold and silver to make money. They are insurance, a hedge against the stupidity of the elite. And myself, you know, that reminds me I remember when I was 20 years old, I was in college, I was hustling, trying to make an extra dollar. And my now wife is my girlfriend, the time my now wife, and I are trying to go get into the gold business. And so we're literally going to garage sales. And we're like buying gold. And we bought this gold kit where you could like at the garage sale, we're taking the gold, like necklace or whatever. And we're like doing a gold test to see if it's real people like what are you doing, I'm like, I'm making sure your gold is real. We like go and we think we are going to make a killing. Now, I will say we were literally able to go to garage sales, and buy gold, like a big pile of jewelry that they didn't really know the value of it, you know, they gave us like, you know, 100 bucks. And then we would go do our little gold samples and weigh the gold. And I mean, literally, sometimes it made 80 or 100 bucks in that day, you know, buying low selling high, actually becoming the broker. But the realization was, we then had to take that gold to the broker. And you know how that story went? What Robert saying here is that it doesn't cash flow, it doesn't have natural appreciation. It's not a great hedge for taxes. And so he's saying, hey, it's not an investment. Gold is something for him personally, he's looking for it to actually be an insurance policy on the dollar. Okay, that really shows you how bad the dollar is just saying that gold is now going to be an insurance policy. But I digress. You and I we want to look at isn't an asset that will stand the test of time. So for gold, that's a big No. So as Solomon Investor we invest to actually build wealth that will stand the test of time not to buy assets that are non producing assets. I spoke in detail about the asset class of gold back in Episode Number 21. We'll put that in the show notes. And it's a good Listen, I want you to go back and listen to it for that financial literacy after this video. The big picture is we want our assets creating passive income or cash flow today, gold does not create passive income. And then the crazy world we live in the current economy, how it's all set up. That's got to be a major priority. It's the passive income that allows the rich to not have to work anymore. So for that reason, I do not recommend investing in gold. Hey, if you like what you're hearing, hit the like button right now smash that like button, and then subscribe to this channel. My team and I are building out weekly videos, where I'm providing financial literacy and wisdom that stands the test of time. I'm on a mission to help you break out of the rat race to help you live for a purpose bigger than yourself and to live the lifestyle you've dreamed of. 

So right now hit that bell icon so you'll be notified every single time a new video comes out. There's definitely too much hype around cryptocurrencies and blockchain tokens. It mini caught the people's money and I believe it does have a very interesting concept that you should pay attention to one know how cryptocurrency works. Number two know how big of a part is going to play in our future world.

Now let's measure our three key points of an asset against Bitcoin. Bitcoin is the most stabilized cryptocurrency on the market. So therefore I won't be talking about other cryptocurrencies in this video, and we'll focus on Bitcoin alone. Number one, do you own or control Bitcoin? The answer is yes. Now, it's not the exact same though as a physical item like gold. Because cryptocurrency clearly is not physical, it's electronic. So do you control it? And do you own it? Yeah, you control and you own him, but you don't control it like you would normally control it. But does it count as one of the key points of an asset? Absolutely. You own and control the Bitcoin? Number two, can you have an expectation, okay.

Now, this one's hard.

That's why it's a very objective, the three filters are so good to see. Is it something that's going to be sustainable to the test of time? The answer is it's a volatile currency. I mean, there's many things that would look toward it being a constant, but then it's very volatile, and it doesn't follow those trends. So isn't an asset that you can set your money in, set it and forget it and create an expectation of what's going to happen? The answer's no. Okay, let's go to number three. Number three, can you expect future benefit? This begs the question, what drives bitcoins price? The price of bitcoin is controlled by three critical demand side factors. Number one, cryptocurrency demand. 

Number two, risk taking appetite. And number three technical factors. Today, I want to focus on the risk taking appetite, because our true question is, can we expect a future benefit as a Solomon Investor, or God directed, which means we're looking for wisdom, wisdom that allows us to invest into asset classes that provide an inflation hedge and a safe haven. So do investors see Bitcoin as an inflation hedge or a safe haven asset class? The data says no, Bitcoin returns are only 9% correlated with gold, which is positive but relatively insignificant amount. So why in general, do investors not see Bitcoin as an inflation hedge or a safe haven? It's because Bitcoin is strongly correlated with the s&p 500 at 22% correlation, junk bonds at 19% correlation and VIX SMP volatility with a negative 16% correlation, which means bitcoins prices decrease in volatile markets. The upside is that Bitcoin has shown some very fast growth, but the downsides are, it doesn't produce revenue. It doesn't produce passive income or cash flow. And unfortunately, it's very volatile. So many specialists predict that it will continue to grow fast. It's purely speculation. And the price of bitcoin heavily depends on the emotions of its investors and traders, towards global news, which is very similar to how the public market the stock market behaves. So when we're asking our three questions, yes, number one, it is controllable, you can control it electronically. Number two, can you have an expectation? You really can't have an expectation on Bitcoin? Number three, can you actually have expectation of future benefit? The answer, unfortunately, is no. So therefore, I would not recommend Bitcoin. Hey, if you're learning something new, drop me a note in the comments. Have your Aha, what is it that you've learned? what's what's been an aha for you? I'd love to hear from you directly. And I will respond to you personally. Next in the list of our asset class is stock market and mutual funds. Now, if you've been following this channel for any length of time, you guys know how I feel about the stock market. Zach Morrow, my VP of investor relations, and I did a video on why the stock market is the biggest Ponzi scheme ever. It's a must listen, I will link it to the description below and make sure you add it to your watch later list. So how is the stock market doing and we put it through our three key questions on the definition of asset Let's take a look. Do you control or own a piece of a publicly traded company? The answer is no. You do not own or control a piece of a publicly traded company. Now. It's not how always used to be you used to actually own the tangible thing. Like if it was shares of Coca Cola, you actually owned a piece of Coca Cola you own part of the company, you were an owner of Coca Cola. Not anymore. Everything is shifted. It's been like this for quite some time. The majority still don't understand it. But you're in a shell company you own shares of a shell company, the real company The publicly traded company, the one that produces revenue is over here, the price of this share is not correlated to the price of the shares of the actual company. This price is regulated by the supplying the man of those buying this share. This does not produce revenue. This does, therefore, the value of the stock is not correlated, the value of the publicly traded company. And the status part is there's a few people who control millions of people's money in the stock market. So can you have an expectation? 

The real answer is no, there is no expectation it's volatile. If you look over 100 year rule of thumb, the majority have not had a wealth as stood the test of time, there's always been the epidemic, a recession, a depression or a pandemic, people's money has always abdun flowed, it's never created wealth, and held as a hedge of protection wealth. Unfortunately, I do not recommend the stock market to be an investment for you to invest into Do you expect future benefit? The reality is, is if you're not in control, you're speculating at best. Most of the best companies do not pay dividends like alphabet, which is Google, Facebook, Amazon, Biogen Tesla, and even Berkshire Hathaway. Therefore, if your stock doesn't produce a dividend, and you're in a shell company that doesn't produce revenue, it's clearly emotionally driven. And unfortunately, that's not a wise investment. Again, if you're interested in learning more about the stock market, in my very first episode of Solomon Investor, I'll go in depth on this topic, I will link that in the description below for your next video to watch. All right, for our next asset class. Last but not least, is commercial real estate, and more importantly, a three dimensional investment inside commercial real estate. Let's see if it passes the test of our three key points of an asset. So do you control or own that three dimensional investment? The answer is yes. It's an entirely new ecosystem, it becomes a collateralized investment that produces passive income you control when you buy and when you sell, you control who rents and the price of the rent and the revenue. And while real estate as a whole is cyclical. three dimensional investments are dictated by macro economics, which allows us to identify the trends and invest at the right time and the right types of properties for exponential wealth creation. Is there an expectation? The answer's yes, it's tangible. And because you can control the traffic and the prices of the rents and expenses, you actually can have a formula of expectation for return, can you expect future benefit? The answer is yes, we use what's called vertical integrated synergy is where every single investment has multiple streams of income coming from multiple different places, which creates a large revenue, massive cash flow. Most of our investments are between 35 and 45%, profit margins, which is absolutely unheard of. In the world of business. When you have those kind of profit margins, you have sustainability. And in commercial real estate, in general, the properties are sold on high multiples. So a high multiple of the actual revenue generated, the properties are sold out, which creates a massive value when you exit the property for equity generation. Now for real estate, it's operational, like there's sweat and labor that goes into it. It's not the simplest to do. It takes time. It takes practice and takes experience. That's why you need someone to actually do it for you. As a Solomon Investor, we step into a king position, hire a general to do it for us. I personally been doing it as a general since 2006. We've done 300 plus transactions, and not one single investor has lost money. Now what exactly is a 3d investment, it's an investment that's God directed. This is where God's wisdom is directly correlated with wealth. It's an investment that we control, we control the traffic, the price, the revenue, the expenses, it creates exponential wealth for the future, it stands the test of time. It's created for worst case scenarios. So the in good times, we flourish in bad times, we also flourish. A few different examples of what could be a three dimensional investment is a wedding venue, self storage, mobile, home parks, and even online businesses. We found that to be really lucrative in this time. Hey, guys, thank you for staying for the entire episode. It means you found this valuable and I appreciate you actually wanting to elevate your financial education. I'm sure you have friends and family and colleagues who would actually benefit from this channel. So share this channel with them forward this information on to them And then subscribe yourself. And if you haven't subscribed, subscribe to the channel, hit the bell icon so you're notified every single time a new video comes out. I've got new videos hot off the press ready to come out. And I want you to know when they come out. And if you're serious about your financial future, like if you're truly serious about looking to investing, wanting to put your money to work, pull out your cell phone and text, Solomon, to 31 996. Again, text Solomon to 31 996. And I want you to become an insider, a Solomon Investor Insider. This is where I share secret videos that I don't put on YouTube, I gave you a new insights of the cutting edge things that are happening right now in the economy. And then I also let you into our current offerings, our investment offerings, the three dimensional investments again, tech, Solman, 231 996. Remember, I'm praying for you. I'm praying specifically for you that God will give you a double portion of favor. They'll give you insight and direction and wisdom for your investments. And I'm actually recording these videos for you. So stay in touch and again, this is The Solomon Investor Podcast, signing out to your success.

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