Mar '24 (edited) • Frameworks ⑂
My Investment Framework (Proof Attached)
"95% of wealth is owned by 5% of people on this planet." Robert T. Kiyosaki writes in the book Rich Dad, Poor Dad.
"And 99% of these people are in these two categories:"
- Investors
- Business Owners.
Let me show you my framework for growing wealth from investments.
Read till the end if?
- If you want to leverage high-income skill i.e. investment
- You want to create more streams of income.
Two years ago, during the crypto crash, I lost around $200,000, which was all my life savings, so I decided to take a break.
"Maybe it's time to rediscover myself," I said. And I did. I spent months working on my personal and emotional aspects while taking a break from my business and investments.
But the crash also taught me a thing or two about investing. Here is everything you need to know to leverage Investments to grow your wealth.
First of all, you might be wondering why I am sharing it.
I genuinely want this community to become wealthier and more abundant. I want all of us to grow, look at 2024, and smile with gratitude.
I invest in high-risk assets like cryptocurrencies, but You Don't Have To. You can also invest in stocks, Gold, Silver, and real estate. The bottom line is: "Invest in things You Understand."
Jeff Bezos once said, "The richness is in seeing where the world is going and being early to reach there."
I see technologies like Artificial Intelligence and Blockchain as the foundation of our future. These technologies will shape the next few decades. But there are more opportunities for everyone.
Agriculture will be an even more relevant industry as the population will rise and wars will occur in different parts of the world. Energy will be a much bigger sector, for example.
We are going through an existential crisis. Covid was just a glimpse of it. More major events are happening around the world. The result of these macro-dynamics will impact everyone's life. You can not turn a blind eye towards it and pretend as if nothing really happened.
So, how does my framework work:
Step 1: Trend analysis
I use Google Trends (trends.google.com) and Twitter.com to discover new trends and opportunities. Currently, I have narrowed it down to AI and Cryptocurrencies. I believe "Community Building" is a marketing trend.
Trend (according to Google): A general direction in which something is developing or changing.
Human evolution happens through trends. By observing trends, you build wealth. The trend is where there is High demand and low supply. Think of it as Osmomis... It seems like everyone is moving towards it.
Step 2: Micro trend analysis:
Once you niche down into one or two trends, become an apprentice of the sector and look for nano and micro trends inside the industry. My experience in blockchain has taught me a thing or two. You can use research papers, podcasts, and educational videos deep into micro-trends.
Step 3: Picking up opportunities:
Once you understand a thing or two, it's time to build your Portfolio. The Portfolio is your Bootstrap wealth allocated to grow your income.
You can either buy an "Asset" early or hold it in anticipation of higher returns in the future.
OR
You can build something on it.
In the case of cryptocurrencies, You can buy a crypto asset like Bitcoin and BNB token and wait for it to become more valuable to sell it at a higher price.
OR
You can stake your cryptocurrency on "Decentralized Finance" platforms and earn an annual yield.
(Or Both)
Let me give you another example if you don't understand the above.
You can buy land and wait a few years to sell it at a higher price, OR you can build an Airbnb on it.
Both are good. Higher Rewards come with Higher Risk.
Remember, you CAN NOT blame anyone if you lose. No one can EXACTLY tell you what to do.
I personally prefer to follow something called Technical analysis and Narrative analysis.
Mathematicians have discovered patterns to analyze how you can predict the future to some extent based on earlier macro behaviors. To some degree, it helps, but again! YOU MUST TAKE YOUR FULL RESPONSIBILITY.
It also means You should only invest what you are willing to lose.
Start by thinking about the worst-case scenario in your mind.
Step 4: Follow the Principles
Now, here are three principles:
- Always start with an exit strategy. Keep selling if an asset value gets higher. Don't hold anything forever.
- Maintain some money in fiat currencies (if in crypto, USDT is a stable coin in which you can hold your crypto. 1 USDT is equal to 1 US Dollar)
- Never buy when it's too high. Live in abundance. There will be more opportunities. Don't jump into the opportunities when everyone is talking about it. Most influencers promote stuff when it's too late. The fact is, if you are buying, someone is selling. If you are selling, someone is buying. So, buy low and sell high.
- Dettach: Everything that comes will go. It might not feel like it, but if you win, you will also lose. Don't get attached to the outcome. Don't get attached to money. In the end, it's part of the world. Stay conscious.
People will make more than you, less than you. Don't look at them.
Stay calm and become a researcher of wealth—a fine student of investment.
One Last piece of Advice: Learn from Someone. Find a Mentor and Follow. Do it Together. Make it Fun. Do it Together! Use this community as a playing ground. Please let me know if you want me to invite someone to learn more about it or if you want to learn more about something related to it.
This is helping me so far!
If you have any questions, ask in the comments.
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My Investment Framework (Proof Attached)
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