As someone who’s been investing in stocks for over 25 years, I sometimes feel like the odd man out at real estate meetups. Many investors think stocks and real estate are worlds apart, but they’re more alike than you’d think.
Last weekend I was out in Denver at a Better Life Tribe Real Estate Summit. I picked up some key insights. I've been a member of Brandon Turner's Tribe since it started and it's made a huge difference in my wealth, health and relationships. If you want to talk about it, email me, my affiliate link is above doesn't cost you anything extra, helps reward me if you use it.
RSVP and Mark your calendar: I’m hosting a lunchtime webinar on May 22nd at 12 pm Eastern. After 25 years in the game, I think I’ve got a pretty good handle on this, and I can help you!
Many real estate investors forget stocks are assets too. Just look at my Google, Amazon, Costco, NVDA, and Walmart shares that I've owned for more the 20 years—they’re like my own little rental properties because I understand how to sell options against the shares.
Sure, the stock market might not offer the same tax perks as real estate, but if you get educated stocks can generate passive cash flow in stocks and you can have a great portfolio of real estate too.
Here are my key takeaways along with pictures I took during the event:
Not taking action is the most common mistake
People are scared to make a mistake, analysis paralysis takes over, and fear causes you look for a perfect deal/trade. Once you do a little research it's more important that you take the next step than it is what step you take. You are going to make mistakes, trades/deals won't always work. Have a plan, have a support system and just decide to take action.
You need processes and systems to be successful
Create a plan that makes sense to you, build a process to execute your plan. The process should be as simple as possible. Have a simple trading plan, have a good system for your real estate are key to success and scaling. Complicated processes lead to confusion and poor execution.
Tactics need to change over time
Remember nothing works all the time, the key to success in real estate and stocks is understanding that tactic's need to change and principals remain constant. You need multiple tools in the toolbelt because when you only have a hammer, everything looks like a nail.
Block out the Noise
Our brains are wired from days where we had to be on alert from the predator trying to eat us in the middle of the night. Fear and negative news is what gets people's attention and the talking heads know this. Investors need to block out the noise. Stay true to your plan, it's ok to be a contrarian. It's not ok to get too confident, or give into our emotions.
Know your why! (and it's not money)
Why do you want to be successful? Realize that money and materialist goals are NOT the real goal for investing. Money is a tool. Have a written why of why you want to make money in Real Estate and Stocks! Because when you aren't making money, you have to keep going!
Intrinsic and Extrinsic apply to Real Estate and Stocks!
Understanding intrinsic and extrinsic values are important. We often focus on things we can't control, you can't control external factors like the market so focus mainly on factors you can influence. Understand how the market prices this in.
Predicting the short term is so hard
Make educated guesses, but have a plan that accounts for longer term success. I sell puts because if I'm wrong in the short term shares never expire. I wrote about why I'm not a day trader. This was reinforced during Brian Murray's presentation.
Find Opportunities when others are scared
When other's do not want to buy, that's when you can make creative deals in real estate, that is when you get bargain prices in the stock market. I made more than years worth of salary selling options on META (facebook) when most people didn't see the bigger picture. I did it again with JPM (JP Morgan). Warren Buffet said it best. "Be fearful when others are greedy, and greedy when others are fearful."
It's not easy, and that's actually good
If it were easy and simple everyone would do it... Getting rich quick is equivalent to winning the lottery in both stocks and real estate. Real wealth benefits from compounding. Not just compounding your capital, but compounding your knowledge too. Avoid the coaches who tell you they have the holy grail method for making money. Whatever they charge for the strategy, that is their shortcut to building wealth.
Diversification is very important
David Greene called it portfolio architecture, but I call it diversification. If you want to be as successful as possible in all market conditions (meaning having ability to withstand ups and downs) you need multiple asset classes.
The stock market has dips, the real estate market has dips, and humans have dips
Brandon Turner reminded us that we're all going to have dips. He referenced Seth Godin's book 'The Dip'. Results are not linear to our efforts and the most successful are the ones who push through the dip.
There were far more takeaways, but you are probably tired of reading, and I'm tired of typing :)
Join me for the webinar, Join GKT Newsletter, or if you are really serious I'll see you in discord much sooner.
Happy Trading Good Kids!
I provide all of this to you for free. If you enjoy this, perhaps you'd consider buying me a coffee. If you have feedback please let me know. I'm here for you!
None of this is trading advice, it's for your education in hopes you can make money in the market as I have done. I’m basically just some dude on the internet who’s been trading 2 decades, and I use the stock market as my primary source of income. None of this is financial advice it’s purely educational!
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