Successful investing doesn’t have to be fancy or complicated. It has to be effective. Smart investors don’t lose money. And smart investors don’t work alone. It’s not about having the most savvy financial advisors. High-leverage investing comes from working with other investors. People who have skin in the game and experience, not people who read books about it.
There is an enormous amount of information out there. It’s impossible to stay at pace with it all. Working within a team or small selected network or successful investment clubs it’s time efficient, safer and a lot more profitable.
The most successful investors I know or read about, thrive on simplicity, formulas, patterns and common sense. There are facts and checklists an investor must know. However, most of all it boils down to timing, accurate information and good old sound rules.
Whether you invest in stocks, gold, real estate or cryptocurrency the fundamentals of what makes an investment highly profitable are the same. The most successful investing rule of all is to identify, rock bottom, low-priced investments with a definitive set of qualities that statistically will make that investment skyrocket. Or if you missed the initial up-growth of a stock of cryptocurrency, make sure there is still plenty of room to grow by the time to get in.
Amazon for example, was slam dunk. It had that obvious set of qualities that were destined to make the company explode. Amazon.com held its IPO on the Nasdaq on May 15, 1997, at a price of $18 per share. Notably, $10,000 invested on that day and price would be worth more than $12 million as of May 2020. Many people retired just on that one single investments.
Bitcoin was worth $1 in 2011. $10,000 invested then, would be worth $300,000,000 in June 2021. I passed on Bitcoin in 2011. Despite of being such a sucker for technology, innovation and research digger, always open to anything new, I didn’t see it. I don’t get involved until 2016.
On the other hand, the same year, an unconfident, shy 29-year-old named Charlie Shrem who grew up in a Syrian Jewish community in Brooklyn, New York started a bitcoin business with $1,000. Within days, things went crazy. Then experience the ultimate crash. But he stuck with it, and he eventually became the first bitcoin millionaire by 2013. He is now a legend worth an estimated $40 million.
That is a perfect example of vision and timing.
Here is a formula I learned by working with highly successful investors as well as reading about the strategies of legendary investors.
A good investment should meet these SIX criteria:
- It would probably be a leader in cutting-edge technology that changes the way we live, just like Apple, Amazon, Google, Facebook, Netflix, Zoom, Pfizer and Bitcoin did.
- It would have breakthrough benefits used by billions of customers around the world.
- Its technology would be fully protected by patents, trademarks and brand names.
- It would have hundreds of billions of dollars in future sales and profits.
- It would pay an enormous dividend.
- It would be on the verge of dozens of upcoming blockbuster announcements that could drive the price into the stratosphere.
It has to be undiscovered. Not one in 50,000 regular investors should know about it. The perfect stock or cryptocurrency would also trade for just a few cents or dollars.
There are great opportunities in stocks these days, especially in tech, bio-med, solar, electric vehicles, marijuana, etc, but I stick 90% with cryptocurrency. I never saw a stock growing 9,500% like AAVE in one year or 6,700% like Chainlink.
Now Vchain trading at only $0.0683 has great potential. It was launched by the owner of Loui Vuitton in Asia. Perfect example of a coin not even worth a dime yet, but could be worth $10 to $50 in two years.
Cryptocurrency simply has a much bigger leverage when you hit the right coins. Every coin has his own technology and story. Many today are backed by real value, especially asset-backed tokens and DeFI cryptocurrencies.
Furthermore, with cryptocurrency you can set up or join a monthly accumulation and compounding system that makes ROI grow “perpetually and exponentially.” This is not not possible by just purchasing and sitting on stocks or gold or Bitcoin. With such system, your first year ROI may be 60% (rarely seen in stocks) but then it becomes 136%, 280% and keeps on going above 500% and more as accumulation persists in the years.
It’s a totally different investment method than just buying and holding assets. Regardless of fluctuation the accumulation is never lower than the month before. It safer, more profitable and liquid. And you don’t have to worry about assets value diving and wondering if you made a mistake. Example, Apple, Microsoft, Amazon, Alphabet and Facebook have lost a combined $1.3 in value since the market peaked on Feb. 19 2020.
Today, there are already five entities worth a full $1 trillion or more on the market:
- Amazon passed $1 trillion on September 4, 2018.
- Microsoft exceeded the $1 trillion mark on June 7, 2019.
- Saudi Aramco passed $1 trillion on December 11, 2019.
- Alphabet, achieved a $1 trillion value on January 16, 2020.
- Bitcoin exceeded $1 trillion on April 16th, 2021
Guess which one reached the $1trillion in less time than any other? And which I believe will be the biggest of them all?
Riccardo Ferrari
RiccardoFerrari.com
