≡ Menu
Make More Marbles

Investing for beginners

Time stamped show notes:

Stacy has two businesses. She helps people grow vegetables and herbs and she provides adventures for entrepreneurs. Her first event is Friday. She's grateful that the details are coming together beautifully. 

01:46 Challenge: I'm thinking about long term wealth. I want to invest in something, real estate, shipping container, etc. Any advice?

02:22 Question: When you say shipping container, what do you mean?

02:24 Or storage unit. I've heard that people can buy storage facilities. Or shipping containers. 

02:40 Question: So you're looking for a long-term investment with cash flow that you could either grow or maintain and then maybe sell for profit? What's your capital entry point?

03:00 I'm thinking ahead. Is it possible at around $10K? 

03:05 Totall. Buy a gumball machine. Or arcade machine. Or an ATM that dispenses bitcoins. It depends on your risk-tolerance, how much capital you have. Do you want to diversify, or just do one thing? How do you envision this going? Let's talk it out. 

03:47 Typically I like diversity, but in this case I might want to nail one thing, and make it easy. I'm all about making my life easier lately. I want it to have a good management already. 

04:09 Question: So buying into a model? Who do you know who's been successful at this? 

04:17 That's why I'm asking. 

04:22 Do you know Pat Flynn? He's a great resource. He's thought about it from every angle and has a ton of students. He has a podcast and following. That being said, there are so many things you could do. Laundromats, car washes, real estate. It's a question of scale. Shy away from food. It's highly competitive, margins are thin. Figure out what you don't want to do, that will help narrow it down.

05:14 Suggestion: I have an investor who buys properties out of state, in good school districts, buy-ins are lower than in California, maybe $18-20K, paid off within 8-10 years, then you cashflow. But then you own real estate. 

05:52 Question: Have you owned real estate before?

05:51 Yes.

06:03 Suggestion: Do you know anybody who's doing something that excites you? 

06:06 No, nobody.

06:08 Question: Have you read Money Master The Game? Start with Unshakable. My only thought with try one thing and nail it is then you put all your eggs in one basket. Leverage the Redalio Principle, 8-10 unrelated things. You want low-risk when you're just starting out. 

07:22 Suggestion: My own investing strategy has changed a lot. From nothing, to stocks, to trading options, to running a hedge fund, now I'm super risk-averse and I only buy with the intent to hold things forever. Ultimately I realized I don't have the patience to figure out too many things. It's not just the money; it's the time, energy, and attention. There are no real handoff asset investments. There's always some maintenance and upkeep. 

08:34 That might be the way to go. 

08:43 Suggestion: Build your next business ready to sell. 

08:52 Suggestion: Listen to your intuition telling you to diversify. 

09:21 Suggestion: The people who tend to do really well at this are typically really quiet. Otherwise there's no edge. A lot of people pretend to be good at it and teach everybody else, but they're not really that good. But they're making money because they're selling the dream. The quiet operators really make the money. I don't have that kind of discipline.

Three Key Points:

  1. As a first-time investor, think about diversification
  2. The best investors are quiet about their secrets; be wary of someone selling ideas
  3. There’s no such thing as a totally hands-off investment; everything will require at least some form of maintenance. 

Top