We’ve only just about scratched the surface in our attempts to demystify the process of transitioning from the public to the private sector. Knowing that you are taking part in the greatest Ponzi scheme in the history of humankind is the first step, but it’s not enough.
We’ve only just about scratched the surface in our attempts to demystify the process of transitioning from the public to the private sector. Knowing that you are taking part in the greatest Ponzi scheme in the history of humankind is the first step, but it’s not enough. So today, we’re going a step further to unveil the path to real, tangible wealth.
Now that you got up from the table, cashed in your chips, and have taken control of your net worth, the logical next step is protection. Figuring out the best way of keeping your hard-earned money safe. And that’s something you can only achieve by stepping into the private sector.
You’ve taken your nest egg back into custody, and in this episode, we’re going to show you exactly what you need to do to protect it.
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- We're in unprecedented times, with the corner of virus, with 38% plunge in the stock market, but in the exact same timeframe, not one single Solomon Investor has lost money. And this episode, you're going to find out how. Hey, I am Blake Templeton, CEO of Boron Capital. And this is a Solomon Investor podcast. My cohost Zach Morrow, VP of Investor Relations, and we're here to demystify, all the different things you have to do to move from the public sector, to the private sector. To gain control, protection and wealth.
- Yes, this is the pathway, right? To real wealth. Okay? And, what we realize in the previous episode was, you have no control, in the public markets. You have to activate your net worth and come over into the private markets. But the real question is, okay, great. I took the steps, I cashed in. I've left the casino. I've turned my chips in, what do I do next? Because I need to know what to do, if I'm going to put this to work, right?
- Right. And the movement from the public to the private market is a big, next step is, actual protection, actual protection. And you've got to come into the investment in the private market to gain that protection. Let's, talk through protection for a minute. We know as of today, you know, we don't know what it is when you're watching this, but as of today, the stock market's lost 38% of its previous value just a little over two weeks ago. Now, we have a lot of people who, you know, played this game in their head with a mindset that, yeah, but you win some, you lose some, but you stay in for the long call. And this last episode, we just talked about how, no, there is no long call. There's always, if you're in the public side, it's always a get in and get out. You don't leave your chips inside for entertainment purposes only. You actually remove them. Why? 'Cause the whole point, the entire reason that you're building retirement, we'll call it the 50, 50, 50 method. Like 50 hours a week, for 50 weeks, for 50 years. The whole point, that you are doing that, was so you'd have something in the future.
- [Zach] Right.
- And so we've talked about your net worth, can't be abstract. We've talked about, like that actually has to be tangible. So you have to get to activate it and take control. And this episode, is about actually having protection. And so, it's like, I think about, you know, you being in the military, you know. I think about you working for, your two different presidential details with the two different presidents. I think about, when someone comes out of the military, and comes into civilian world. It's like a fish out of water. And this is how a lot of our investors feel when they're in the stock market, they get tons of volatility, and they come into tangible real estate, it's in a three-dimensional investment, actually has protection that like, it's like, I don't know what to do. Like is this is actually protected? Help us break this down. Why is it actually protected?
- Yeah. I think the first concept to understand, is, always start back at the beginning. So, when we're looking at a Solomon Investor, right? We're looking at the key principles from King Solomon himself. What did he do? How did he protect? How did he grow? And so you've left where you're at. And yeah, right. Whenever I left the military, it's a whole new world. You have to learn the new way, right? You've been taught and you've been ingrained this certain way. And now you've got to learn this new way. And so, in the investment world, what you started 14 years ago, and now I've come on board with you to press this forward and get this message out to the public. Is those lessons from King Solomon. And what we've learned from King Solomon is that, one of his primary drivers was tangible assets. Tangible assets. So this is something that is real, right? It's a piece of real estate, it's land, for him, it was gold, there was horses, there was land, there was the kingdom, right? And for the 21st century investor, that's real estate. Right? And we know what we have to do in real estate. There's ways to do it right, and ways to do it wrong. But the only way you can have control, number one is to be out of the public market. And number two, the only way you can have protection, is to have real estate because it provides this one thing, and that's tangible value, inherent value,
- Right?
- Collateral.
- Yeah, collateral. I love the word collateral. It's foreign again in the public sector, it's foreign. You went in thinking we're buying businesses. You know, if it wasn't you just throwing some money into your 401, into your IRA, every year. And you actually were like, man, I'm goin' study the businesses.
- [Zach] Right.
- You thought, you're studying the history of the business, you thought, you're studying like the revenue, the actual margins, you're thinking like this is a good investment, some, buy-in. But you didn't realize, you're not actually buying into the business. You're buying into a price, it's a faith based, that's not collateralized by the business. I mean big difference. So when you go into a real estate investment, it's actual collateral, it's actually something tangible. And, we have a three-dimensional process. King Solomon had a three-dimensional process. You know so, we're not talking about something that's a one-dimensional process. The stock market's one-dimensional. Maybe single families, one-dimensional. We're talking about three-dimensional investment. And that's what creates real collateralization. It's tangible, but it has a hedge of protection. It stands the test of time. It's not ran on an emotional roller coaster, and it always holds a value.
- Right. There's going to be an intrinsic value. Meaning, that it will always hold a value. Right? And so when you're going into an investment, right? You've left the public market like Zach Blake, ready to become a Solomon Investor and, I'm going to go private. The first thing you have to look at is protection. You want to mitigate risk in every degree. Right?
- Right. And because of that, you think about the volatility in our market right now. I mean, this is, it's not an epidemic, it's a pandemic. We've never had a pandemic in the last 100 years. I mean, it's truly unprecedented. Look, this podcast is not about berating, you know, beating the dead horse and all the things you're hearing on the news. The reality is, you're going to have to get your head above that. You're going to have to call a timeout, cut the emotions from all the drama, and realize what's real and what's not. And there's an earthly reality and a spiritual reality. And you're going to have to realize that, you're going to have to make decisions in the earthly reality, based on spiritual principles that stand the test of time. Now we go back to King Solomon. I appreciate you doing that because, it reminds us the whole point of the podcast. It's the ancient principles that stand the test of time, it's the ancient principles, thousands of years, nothing changed. This is God's way. And one of those key principles is collateralization. A Solomon Investor would never, go into an investment that wasn't collateralized. That's like, that would be like you lending money to a stranger and not actually taking anything in return, like to make sure he pays you back, and just saying, "Hey, it's going to work out." " I have faith, he looks good." "I have some kind of emotional, you know, cognizant, you know, relation to him."
- Yeah. Like I get to hold like, so we want to actually hold onto something, right? So that on the downside, because as an investor, we realized that, there's risk involved in everything.
- Yeah.
- Right? But, the truth is, as a real investor, we're not looking to avoid risk, we're looking to manage it, to be fully aware of what the risks are, and then taking appropriate action to mitigate them, in every way. And that's what we do as a Solomon Investor. Step one, control. Step two, protect. How do we protect? That number one protection is collateral. Having something, really we want it in greater value than what we loan out. Right? If I'm going to give somebody $100, I want to hold onto something that's worth more.
- Right?
- 120, 150, 200, whatever it is. I always want there to be more value in my protection.
- Absolutely.
- Than the actual dollars I put in.
- That's a great point. You know, in 14 years, 300 plus transactions, we don't buy it at fair market value. I mean, that's crazy. That'd be ludicrous. In our world, we're always buying at a discount, so we acquire at a discount, and we build at a discount. I mean, that would be the only thing that makes sense. So, there's a three-dimensional investment to become a Solomon Investor. Dimension one, is you've got to actually have, the actual tangible real estate. We're not talking about the improvements yet. The tangible real estate that stands the test of time. You know, we've talked about again, that net worth is abstract until it comes into the private sector. So, if you haven't actually processed, I've got to move it to the private sector, then, you got to go back to episode one. You got to go back to the very beginning. This is a three-dimensional investment. No one talks about it. I can't find anybody on any news platform, in the economist, I can't find anyone in the alternative investments, and absolutely positively not in the stock market.
- Right. And so, going back to that principle, like you said, is having that tangible, real estate buying at the right price. Now, what I would tell everyone is make sure you don't buy on price, you always buy on value.
- Great point.
- Right? So, the reason we have problems, the reason we've had problems in the stock market, where there's been, you know, real estate crashes, things of that, is because everything was on inflated prices, not inflated values. So you always have to reverse engineer, what is the intrinsic value, that I can bet on, then I can count on, regardless of the ups and downs in the market. So buying on value is key, when you're actually trying to discern a collateral.
- You know, when we talked to investors, who were in the market, who have been in the dark side, and haven't come to the light yet.
- Right.
- We talk to investors and they're like, you know, "But that's what I do." " I go, I try to short stocks, or I always try to buy at a discount." But you're missing the whole point. Those precious principles, don't work in the public market.
- Right? So, you just got to understand, when you're private, if you invest into a business or a piece of real estate, or something like this, like when you invest there, you have direct collateral to that business. It's profits, it's actual balance sheet, it's assets. Those are all collateralized. Like you're collateralized against everything that business has. And the same with the real estate, like you want to actually have collateral, of the actual real estate. If I go and invest in real estate, through a stock, or REIT, my portfolio is following the trends and the emotions of the market. It's not that if my stuff goes down and doesn't produce, I can't go get those properties back, and make sure that I don't lose.
- Nope.
- Right. So, if you're not in a position, where you can go and take that back, and have real true collateral, then you don't have anything. Right? And most people think, well, my protection in the market is diversification. So, I can diversify to protect, right? I don't need, I can do it without collateral. So what would you say to that?
- It's so crazy, 'cause it's a hallucination of diversification. It's a centralized system. It's all one fat person. And the stocks, are like intestines or stomach pieces, or liver, or it's all in the same bucket. It's one single bucket. And so that's why, Bob, Joe and Harry all lost, 38% on average. But one might say like, okay, hold up. "Why was Uber, Heinz, you know, Lyft, JC Penny's and Boeing in diversified areas. Why don't they all take a massive hit?" Because it's all in one centralized system. If it wasn't all centralized, if it was decentralized, you would see a massive group protected, and then you'd see massive group not doing well. But the question is, why would Zach, would they not be doing well? That's the question. The reason they wouldn't be doing well, is because it's based only solely on the performance of that company.
- Right.
- Unfortunately it's not how stock market works. It's not diversified. It's all tied to the emotional value, on the central entire system.
- Right, it's a spec. It's not a speculation. It's not always a speculation of where the businesses are going. It's a speculation of where investors are going. So if only returns from the market, come from other investors purchasing, when the markets are selling, it's because the big guys have decided, things aren't looking so good, therefore we're going to start selling, and it's a speculation of where investors are going to go. Not necessarily where the businesses are at. It's not directly correlated. It's not a plus b equals c. Like the stock market is never binary. You know what I mean? So, the diversification in the market, unfortunately, you're still caught in a place where you cannot have collateral and you cannot have control. And those are the number one reasons why, you would just never be there.
- And so we're talking about the long call. When you buy into a rule of, you know, stay in for the long call. That's like saying, don't have insurance on your car, or something, ever, like...
- You're foregoing, collateral forever.
- You're foregoing collateral forever. Like I might put insurance on my car, or I might not have insurance on my car for a day. Still risky. But I might be okay. Forever? Not having a tangible insurance policy forever? Well, that's what like having collateral for real estate is. Like, you would never not have your money tied to something. A Solomon Investor would like, that would be terrible, that would be ludicrous.
- Right?
- And so, in the picture, if you could think like your net worth, or your nest egg, for example, is like your baby. You would never not protect it. And so the reality is you've got to change the rules. So the rule I want you to understand is, is that if it's not collateralized, it's not protected. And then the 50, 50, 50 wide just did, means it actually is worthless. And I just worked 50 hours a week for 50 weeks, for 50 years, just to leave it all up in the air, in case someone wants to, you know, to, to just literally destroy it. But that's not what you're created for. You're bore with a purpose, like this, the whole reason why you're alive, the whole reason you have a function of a breath, the whole reason you have impact and legacy to be for your future, is so you could take that tangible income, that's still abstract. If it's in the market, turn that and activate it, collateralize it and go make money on your money, so that you can make yourself better, so you can have a better life, so you can impact others and truly have a legacy.
- Right. For impact and legacy, you have to gain control. You have to protect your investments. You have to activate your net worth. And, the diversification thing, like let's just debunk that right now, because diversification is fine, if and when, you're diversifying things that follow the right rules and system. It's not hedging your bets. See, we're still the diversification is like, put some here, put some there, put some a little bit, you know, like we're going to try and balance this out. Well, rather than trying to balance it out, let's just have multiple investments that all have great principals.
- Right.
- where I'm always collateralized in every investment, where I always have something tangible with an inherent value, in every investment where I always have direct control in my investments, no matter what. Let's diversify like that.
- Well it makes so much more sense, 'cause if you're diversifying into tangible items in real estate, then you've got collateralization on every single one of them.
- [Zach] Right.
- And, you know, the difference here, is it's two different definitions of diversification. One is a definition in the public market, in a stock market saying, that if you diversify here, therefore then it's collateralized or it's protected.
- We're mitigating risks.
- We're mitigating risks. So it's protected somehow. But the realization is, you got to remove protection away from a public diversification. There's no protection, there's no collateralization. So the diversification, all that simply means, is you put more money, or you've separated money, put money in different locations, in paper, emotions, and it's really all that means. You've just taken your retirement, and you've put it in pieces. And so, the real thing that you got to get is, that no Solomon Investor, actually would do that. And so, we actually are calling you to rise up. This is a season, and it's unprecedented times, we don't buy into the same systems anymore. We don't buy into the same rules. I mean, your financial advisor hasn't actually served you in this season. Why? 'Cause he couldn't control what just happened. He would actually say, "I can't control it, nor can you, so let's just stay in it." No, today is a day that you actually can reckon with that. Today's the day that you can fight against that. Today's the day that you can actually go put your money into a safe haven. Now, collateralization, collateralization is only a piece of the principle. There's so many more principles that tie to building sustainable wealth. We go back to Solomon, King Solomon, the Bible, the ancient principles, the trillionaire, the only trillionaire of our historic world time. Not a person, assuming not a company, but a single person. We'll go back to the sustainable principles. And, there's more principles that are unleashed, and each principle builds on the other principles.
- Right.
- It's literally exponential wealth, as you add on a principle. I was talking to someone in the office the other day and, they were trying to, take little bitty pieces of principles, and apply it, just like you would almost like a religious debate or something, you know, pulling a little something and... You're missing the point. And I go back and look at their portfolio. I mean, when does your portfolio start? Okay, let's look at it. Let's remove how much money you put into it, how did it do? And obviously it rode a wave, and if we actually look at inflation, we look at their losses, we look at what actually happened. It's pitiful. It's absolutely pitiful.
- Yeah.
- And most people can't even actually tell you how much they've made. I mean, if you actually ask them, how much do you actually have? What was your return on investment? What do you got? Most people can't actually do that. And I'm sure you're not one of those people, but the reality is, if it's still in the market, you've got to realize, there's greater wealth for you to gain.
- Yeah. And, you know, I'm sure you would ask. Right? Well, what about all those who have been extremely successful, in the stock market, in the public market? What about the massive funds? The Warren Buffett's, the Ray Dalio's, they've been extremely successful in the markets, right? So, why is it that they can do it, but I can't?
- It's a great question.
- Right? And so, we have to look at, and we have to ask the question. Are they playing the same game that we're playing? Are they actually doing the same thing? Well, and the realization is that no, they're absolutely not. You can't play the same game. What most people don't understand, is they believe they're participating, in the market. But unfortunately the truth is, you're actually competing. You are competing in the market against all the other players, and those players, these massive funds, right? There's a small number of massive funds that control majority of the market. So when they have buys and sells, when they make movements, when they make purchases, they're actually playing a different game.
- So you're saying 20 Different entities, large entities, control maybe 80% give or take, of the entire markets. So I'ma play devil's advocate with you.
- Okay. Let's do it.
- I'm Bob, I'm a 64. I've done the 50, 50, 50. And I know I've built my nest egg, and I truly have been believing that I'm doing the thing. This is how you build wealth. I mean, you stay in it. I've been in many different cycles, I've seen the things happen. But this whole entire time, I've actually thought, this is how Warren did it.
- Okay. Got it. So this is how Warren did it. Right, so what did Warren do, that could I just buy the stocks that he bought, and then therefore...
- Yeah I'm investing in stocks. I see where he's putting money. I'm putting money where he's putting money. Why is my income not going up, like his income goes up?
- Let's go back to control. It's the first thing to understand. So, control is what the individual, investor lacks. Now, the biggest guys in the market, they can't necessarily control the market, but they have way more power to influence, right? So like Warren, what he's doing when he makes a purchase in stock is he's going for control. So he has the power, the financial power, that if you don't have billions upon billions of dollars, you can't just go buy up a company. When he buys up a company, he has the power to go sit on that board, gain control on what that business is doing, start changing the way operations happen, he can change whether it's paying dividends, and he can do all of these, he gains control. So the individual investor will just never have the ability, to purchase so much that they can start getting real control of the business. He's actually playing the private game, in the public market. Because he's so large, he can gain some of the benefits of the private market. He can live the private market life, that we're talking to you about, but doing it in the public sector.
- It's a very interesting concept because, the majority of people would say, you know, I thought I was doing the exact same thing as him. So what you've just said is, is that, he's because he's actually taking over a large majority of the stock shares, he has more movement, his footprints are bigger, he can actually scoot it. Which is not necessarily exactly like, but similar to in our real estate world, where we're actually boots on the ground, we actually have tangible control over it. We're actually moving the needle. We actually control the marketing, we actually control the customer service, we control the price, we control the value, we actually have full control of the actual three-dimensional asset. So when someone comes into a private investment with us, they're actually doing something just like him, no matter how much money they have, they're actually being able to literally slide the glove on, and ride in that control, and what he's doing, or what these other 20 entities are doing, is very similar, but unfortunately, Bob, the 64 year old, who puts his money in the market, he's unfortunately behind the eight-ball, he's on the outside, these guys are on the inside.
- [Zach] Right.
- He's in the public side, these guys are on the private side.
- Right. Unfortunately. So Bob, in this case, right? Bob is always going to chase the market.
- Yeah.
- He'll always be chasing, he never catch it. Again, he's competing with the Warren Buffett's, with the major players. He's not participating. You're always going to be a step behind, and they're moving things. And it's not just a one to one ratio because, what you have to understand is, when you have controlling powers over multiple different entities, the value of something to me, may not be the value of something to you, right? So if I'm actually owning X company, and then I go and buy some control in this company, maybe the margins are, you know, a 5, 10%, something like this over here. But I own this synergistic complimentary system that whenever I plug this now and I plug it into my system, I have exponential return, whereas you only had those tiny pieces, right? So I've complimentary and synergistic business things. Right, so let me share a funny story real quick. So, most people maybe haven't heard of what a corporate raider is. Okay? So one famous corporate raider is Carl Icahn, and he's famous for, do what's called, corporate raider. He's going in and when shares are low, he goes and buys up massive thing. So, most people, if you haven't heard Carl Icahn, you've probably seen the movie 'Pretty Woman', right? So Richard Gere in 'Pretty Woman' is the definition of a corporate raider. If you remember, he goes, and he was buying up so much stock in this other company, that he was literally going to go in, walked in and told the owner of the company, "Guess what? It's my company now, you do what I say. And we're not even going to continue to do, what you're doing, we're just going to break it all apart, and sell the whole thing." He bought control, through the public market, because he had so much power to come in and take over. If you don't have the funds to play that game.
- Real talk.
- You're always going to be on the outside, you're always going to be chasing the market, and you're not doing what they're doing. The only way to do it, is to step into the private market, and actually become an insider, not an outsider.
- Right, yeah. That's the major takeaway, is the only way they gain that collateralization, that protection, is a move to the inside track, the actual private sector. And then you can actually invest like Warren Buffett, you can invest like these big Behemoth companies, because you're actually taking ownership of what we'd call the second dimension, which is the actual business. And, you know what we do in Boron Capital, what makes a Solomon Investor, what stands the test of time, is this three-dimensional investments, the land, is putting a business inside it. And then a third dimension is actually God directed. But that second dimension is the business. The business is so important, and you're actually coming in, the Solomon Investors coming in. Even with smaller money than Warren Buffett, you're coming in, and you're actually taking a position here where you actually have influence, because we're the ones, putting the glove on, and you're riding the co-tel here. Unfortunately, you can't do that on the public sector.
- And so, this episode is all about, how you get rid of being an outsider.
- That's right man.
- How to become an insider, how to gain all the benefits you actually were always sold, in the private sector. Right? And so we'll cover the other dimensions in the upcoming episodes of how to put it all together in pieces. But the first thing, is you got to become an insider. And every insider, every Solomon Investor, would only ever start an investment where they were fully collateralized, by a tangible asset that they were moving into.
- There's so many key principles that actually will go blow your mind. We've got so much to share with you, and every single episode, we'll unveil them one at a time, and dig deep into it, so you can find the richness in it, to create sustainable wealth.