Hey {{first_name}} ,
Today I want to share an inside look at how I’m deploying the capital from my business sale to gain true financial freedom.
Everyone has a different opinion on investing and the best ways to put your money. I’ve done most schemes imaginable: property, private equity, private credit, stocks, derivatives and on anad on. I’ve developed a healthy respect for risk after chasing the money more than I should. Running a business is stressful enough, your investment portfolio should be a no-stress affair.
I split my portfolio into thirds. Income, growth, and cash.
Income
I’ve invested in income producing real estate all over the world, but I don’t recommend it. Here’s why:
It’s not truly passive income. When the boiler breaks you’ll still have to fix it even through a manager. The buck has to stop somewhere!
It’s increasingly dependent on government goodwill, which we don’t have control over.
For me it doesn’t give skill and social growth: chasing rent payments and insurance isn’t boosting your network, isn’t developing your skillset, and I honestly feel when I’m dealing with rentals I’m not in an expansion mindset, it’s treading water.
For Income I buy:
High Dividend Energy Stocks (natural resources are in a major uptrend now)
Currency linked bonds - at the moment the Pound actually has the highest interest rates in the major western countries right now so UK savings account pay better money than american money market funds.
I stake my crypto holdings in multiple exchanges to generate income from liquidity pools
I’m making about $50k net from my income and that covers all my living costs. I’m happy with that and it allows be to plow all my deal, trading and business profits into reinvesting. It truly accelerates your compounding.
For Capital Growth I Buy
Inflation hedges:
I have a bit of gold, but mostly silver, bitcoin and etherium, I bought a lot at the beginning of last year but I’m adding more now. Silver and etherium is more volatile than gold and bitcoin but I’ve been trading these assets for 10 years so I’m comfortable with the risk.
I’m reducing dollar exposure. The money printing of the US government is out of control so I’ve been steadily reducing dollar exposure over the last three years.
Merger Arbitrage. After learning about how to do M&A deals, you can profit off this from public markets. Buy shares of companies with good fundamentals that are likely to be bought out soon by a competitor. I combine this with my income strategy to buy REITS that are likely to be bought out soon, Like Secure Income REIT PLC which i bought at the bottom in 2020 and was paid 8% yield al the way up until it was bought by Blackstone.
Cash Baby
It’s cliche but honestly cash truly is king. The flexibility you have from being liquid is second to none.
It lets you pounce on special opportunities. I buy dips in stock and crypto markets all the time and it truly is a great strategy if you have the patience and experience.
But the biggest reason is having cash allows you to learn. As your gain more and more experience you’ll have totally different investment ideas to when you started studying financial freedom. Staying liquid means you don’t rush into deals
There’s my portfolio, hope this helps!
Unlocking Wealth Weekly
Feel free to comment on my strategies and how you differ with your investments