How To Invest Like The Rich!

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How to invest like the rich that is exactly what i’m gonna share with you guys today i’m gonna take you through exactly how a rich person invests and for today’s example a rich person is someone i’m classifying that has ten million dollars more in assets than liabilities so they have a lot of money behind them guys i’m gonna share with you exactly how they invest and

At the end i’m gonna share something that’s probably gonna shock a lot of you guys out there so that should be very interesting so the first way the rich invest they really think about real estate okay that’s their first main way of investing they’re thinking about real estate and what do i do with real estate now what the rich do they don’t like flip properties

Very often they’re actually not even very interested in renting out properties what the rich do a lot of times is they buy and hold okay they buy a property and they hold that property and they hope it appreciates over time now the markets they love to do this in is la especially los angeles they also love to do this in new york there’s a few other markets you know

London they love to do this in toronto a few other markets around the world that they love to do this but la and new york are definitely the main ones especially for americans that they love to just buy a property and hold it and as their wealth increases they’ll buy another property and hold it and then when the time comes i feel like they want to sell that off

They can sell that off if you looked at how much prices have gone up in los angeles and new york over the last few decades it’s a dramatic increase guys so a lot of these people you know they’ll pay two million dollars for a house when they’re 40 years old they’ll buy it you know they’ll pay two million dollars for that house when they’re 60 they can go ahead and

Sell it for four or five million it’s a dramatic increase guys because those markets just keep increasing for whatever reason a lot of people love to live in those places and demand just keeps going up and whatnot so that’s the main way they love to invest in real estate they just buy a property and they hold it they don’t even care to rent it out that’s why a

Lot of these you know rich people you’ll see their house if it sits vacant there’s six months out of the year they’re not even there no one’s using it they’re not and you could say well they could be making money and yeah they could well i then just don’t care about they just want to buy and hold they don’t want to deal with the whole rentals and all that kind of

Stuff okay the second way they love to invest is stocks okay but they do stocks a little bit different than the average person okay so with stocks what they’re really thinking about is they really want to invest in dividend-paying companies okay they’re really looking at dividend-paying companies they’re not really looking to kill it in the stock market the same

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Thing they’re not looking to kill it in real estate they’re just want to make their more money into more money over time and they don’t want to take a super lot of risk okay so they’ll invest in bigger companies that pay dividends okay of two three four percent yield so you say well if the stock market on average goes up around 8% a year then they can hopefully

Get their 8% a year on that stock as long as they picked a decent stock right and they get their dividends on that also they’re usually very diversified they’re not in just like five or ten stocks a lot of times these guys are in twenty to thirty if not more socks in that and generally they all paid dividends okay so that is another way they love to invest the

Third way they love to invest is is not even really an investing in my opinion but they love to take out long-term cds okay they love to take out long-term cds so this is a banking move you can make and when you have a lot of money already and you take it a long-term cd you can get actually a much much much higher rate than someone can that is actually just kind

Of going on the bank and maybe has $10,000 to put in a cd if you look usually the banks will give a higher percent the more money you have okay so these people without a long-term see that’s like a five year cd right you might be able to get four or five six percent on their money which is dramatically more than someone that goes in there with a thousand dollars

Or ten thousand dollars looking to open a cd so that’s another way they love to do it a certificate as a deposit like i said it’s not really like investing because my money is usually guaranteed by the bank it’s not like you can lose that money or something like that generally so those are the three main ways they want to do they want to do real estate they want

To do stocks they want to do long-term cds and even the way they spend their money a lot of times is different for instance i can always tell someone that’s kind of new to money and just kind of getting money for the first time and someone that’s been rich for a while because people that have been rich for a while they usually buy ferraris as far as a lot of their

Exotic cars you’ll see a lot of people buy ferraris why do the people buy ferraris versus like maserati or something like that well because ferraris whole their value much more ferrari actually does a lot of things as far as cutting the production so there’s always way more demand for ferraris than what they have as far as what their mouths they’re producing

And whatnot so you could always tell someone that’s been rich for a while versus someone that’s new to money because the the ones i’ve been rich for a while they know to play ferrari some of the other ones they buy maseratis some lamborghinis and some of the more high production type cars okay guys so that’s a way now okay now i’m going to share something that’s

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Probably gonna shock some of you guys out there and you’re gonna say what the heck and what i’m gonna say is this whole idea is really stupid for most people okay this whole idea of the way they invest is a really dumb way for most people why is this because most people aren’t rich so you have different goals in mind when you are rich versus when you are not rich

Okay there’s different goals when you are rich okay you got ten million plus in the bank you’ve got a lot of money you’re number one thing you’re kind of looking for is to preserve preserve well okay your number one goal is to preserve that wealth okay it’s not to make more wealth when you’re not rich okay when you’re not rich your number one goal is to make wealth

Okay so your goals are dramatically different so the way that you preserve wealth from the way you make wealth they’re very very different guys they’re very very different first off if you’re thinking about if you’re not rich okay and you got i don’t know a hundred thousand dollars in the bank or fifty thousand dollars you can’t even buy a property in los angeles

In new york so their whole option to buy and hold real estate properties and some of the hot markets that’s not gonna work for you also get into dividend companies you can get way better gains and a lot of the other companies out there that don’t pay dividends because they’re higher growth and things like that so when you’re trying to make your wealth guys a lot

Of these ways that the rich take advantage of and do it it just doesn’t make sense for if you’re trying to make well so a lot of people think oh i should i got $20,000 i should invest like rich people no you shouldn’t you should invest like someone that’s trying to create well the wave a lot of these people made their well they didn’t make their wealth because

They were investing in real estate long term they didn’t make their wealth because they were getting into dividend stocks they made their wealth a lot of times because they worked the corporate ranks up and they got rich from that or they invested in the right company you know one company and they got rich think about all the people that invest in facebook early

On and twitter and a lot of these big companies you know or happen to work there and they got a bunch of stock and then they you know could cash out with 20 million 50 million dollars think about those type of people entrepreneurs that created businesses that they went ahead and sold or they still run to this day but that’s how people get rich or maybe they just

Inherited their wealth their parents are rich probably from starting a business or investing in the right business or something so you get rich very differently than preserving wealth okay you got to just kind of change your mindset around that though the way you preserve wealth in the way you make wealth is very very different guys and so and at the same time if

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You’re super rich a lot of times its kind of dumb to invest like someone that’s not rich okay for instance if you got you know 100 million dollars in the bank it doesn’t make sense to be in 2 or 3 or 4 stocks that’s kind of a super risky right because what if you lose a massive amount of money and then you go down to ten million or 20 million is that really the

Smartest thing to do no you already have so much money you’ve already built so much for you and your family that at that point it’s not worth the risk a lot of times unless maybe you can take out loans which maybe you can take out the loan where it doesn’t come back to you it’s non-recourse to you it just comes against the business and if the business that you’re

Starting fails then the money just kind of like evaporates and just you know you get a hit on that but you don’t get hit as far as it coming against your personal assets you could do things like that which is a lot of what the massive you know wealthy people do is they’ll actually take out loans they’ll take out debt to start some kind of business or do something

Where they’ll start this business right and if the debt actually is non-recourse to them so although they might have a hundred million dollars in the bank if that business fails if that business goes bankrupt then those loans are defaulted it cannot come back against that person they cannot take their hundred million dollars in assets and things like that guys so

It’s a very different how the rich used debt versus how an average person uses debt guys so that is how you invest if you are already rich but at the same time like i said guys it doesn’t make much sense to invest like that when you’re not rich because it’s kinda your never gonna get there unless you’re like 7080 years old and you want to be rich and who the heck

Wants to be rich finally at that age look you want to be able to enjoy your whole entire life you want to be able to enjoy your 30s and 40s and 50s and 60s and all those ages in between guys so i hope you enjoyed this day i hope this video enlighten you i hope you got a ton of value out of this make sure if you’re still watching this video you click that first link

In the description that’s my stock market investing mastery course that goes into every single thing that i look for in a stock it even has my private email address that you can contact me if you have any questions regarding the course thank you for watching guys and have a great day

Transcribed from video
How To Invest Like The Rich! By Financial Education

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