Flipping is not investing

Welcome to the age of bitcoin! I never thought I would see the day where the “be fearful when others are greedy” mantra by Warren Buffet would be so plainly visible, but alas, here we are.  This post is about flipping, its not about bitcoin, although many people are doing the flip via bitcoin.

Flipping is not investing. That is why I don’t do it.  I am not interested in the quick money because quick money goes quick.  Generational money is built generationally.  Flip money is blown within one generation because it is not sustainable, duplicatable or dependable.  Are there opportunities to flip? Yes.  Should you spend time chasing those opportunities? Maybe.  But, don’t call yourself an investor because investors don’t flip.

I wrote a blog a while back about patience while investing.  A lot of people who come to me either on the side or via the group are looking for a quick flip.  They want to turn 3 into 6, just so they can blow it all on whatever the heck $6,000 buys. Probably stuff to floss on the gram. Unfortunately, I don’t got the answers.  I just tell them to buy bitcoin! LOL.

Looking for a flip is a sign that you are just being lazy 

If you are looking to make money via a flip, or in bitcoin that is a sign that you aren’t a true investor.  You bought into the hype.  A true investor would have spotted bitcoin before it hit 10k.  A true investor wouldn’t be asking other people for flip opportunities because they would have already done the due diligence and the homework.

During the real estate boom the lazy money got slaughtered.  This was the people who bought in for the hype but didn’t know enough to catch the signs that indicated when to get out.  Today. people are following people into bitcoin, often times investing in things they know little to nothing about, and it wont end well.

There is no such thing as a free lunch and bitcoin as well as other hustles like lottery tickets and sports gambling are really just traps for the poor.  Don’t even ask me what is a good flip. There are no good flips.  What good is something you can’t repeat? If you are going to invest your time, energy and resources it has to be something that is sustainable not just a quick fad.  You will never get that time back so investing that time and energy into something that will be worth nothing tomorrow is not a good investment of that time.

If you flip successfully all you can then do is look for another flip. You can’t go back to the same opportunity because that opportunity is gone. That isn’t ownership or investing, that is a JOB! Flipping is not ownership, flipping is just another job.

Flippers don’t get wealthy. 

The more I learn about wealth the more I learn that preserving it is just as difficult as making it.  If you have millions you could literally buy whatever you want. If you buy whatever you want then you won’t have millions anymore.  This takes a level of discipline to look over 1000 opportunities to find one.  To look over all the cars and drive one.  To look at all the homes and buy one.

Never take advice from a flipper.  Flippers do not have the financial or intellectual cushion to give you actual advice.  They are either blowing through their cash or nervous about preserving it.  Never listen to flippers or the uninformed.  That mentality is of quick riches not of long term gains. Just as much as they could hit a home run they could also strike out. Flippers might get rich, but flippers DON’T get wealthy. You can make money by accident but you don’t get wealthy by accident.

If you are going to flip, flip to hold

The ONLY way I condone flipping is if you are flipping to hold.  Make your money via forced appreciation or natural appreciation and then hold.  Investors don’t TIME the market.  The only way bitcoin makes sense is that you are going to at some point exit the security.  This is what makes it a pure flip.  Investing in real estate or undervalued stocks allows you to ride it out indefinitely.  My favorite hold time is forever not “until I make enough money for some jays”.

Investors don’t flip but investors do buy value.  Buying value can allow for quick money but the exist strategy is still to hold indefinitely not to cash out.  Its just unhealthy.  I have never met a rich trader but I have met a ton of wealthy buy and hold investors in EVERY market.  Don’t be lazy, don’t take short cuts, and don’t try to cheat the process.  Be a disciplined investor, don’t chase manias and trust the process. Wealth will come. Follow the crowd never ends well.

Be great, INVEST well,

Todd Millionaire

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