This morning I took the time to tally up all the money we pulled in for December. Surprisingly, we always do well in December. A large part of this club is the returns but more importantly is shifting the mentality of an entire community from spenders to investors. Evidence that this is working has been that for back to back years, December has been one of our larger months for contributions. We will be investing $4,050 in new money this month, on top of the $3,700 we already have liquid.
This morning I made this known to the club members but I also wanted them to know that now that we have crossed a significant hurdle in assets under management, we should be aiming to do some real damage in 2018, even if it means taking some losses to get some huge returns.
See, nobody remembers your losses. Nobody remembers how many series MJ lost, they only remember the six rings. The same is true with investing. Gary V invested in 10 start ups but he only brags about the ones that went public and won (twitter, facebook).
In 2018 I want us to take the VC approach in certain regards where we aim at ten knowing that only two will work out but those two winners will offset all the losses and create massive wealth for the club. Those are 2018 goals. We know that. What were the year one goals though? Well…
Year one goals
In year one, my goal was membership accumulation, asset accumulation and building a strong base of funds that preserve capital. I wasn’t aiming to hit a home run I wanted us to make money. So when I received a message from a spectator talking about a 7% total return I was upset, but I knew it’s easier to hate and talk about what you would do than it is to actually pull together 200 black people and raise the money we have raised.
The year one goal wasn’t huge ROIs and that is why I brushed those emails aside from the people who wanted to join us on the condition that we beat wall street returns and put up crazy number. From my experience in wealth management I have seen that we don’t lose because we don’t get the best ROI, we lose because we don’t have assets available to put to work. Asset are what we need not a quick flip for a quick spend.
Not a quick flip
Wealth is a marathon not a quick sprint for a high ROI so you can take a vacation. We are building a legacy, not hustling for a quick flip. That has never been the strategy. That is why I am hugely against bitcoin and other altcoin hustles. Wealth, lasting wealth, the wealth that can’t be destroyed, the wealth that gets passed on to your heirs, heirs, doesn’t come from a bitcoin flip. It comes from a long term, systematic strategy built brick by brick.
Will you miss opportunities? Probably. But as long as you keep plodding along you can’t help but lose. See when you plan to build wealth in line with the investment club, which is the same strategy I learned from my tenure at Edward Jones, wealth is inevitable. When you plant the seed, give it time, you get the harvest. This, as opposed to the quick flip hustles, is not what we are here for. Over there you are playing the odds game. Over here we are playing the for sure game. Would you rather get rich quick or get rich for sure?
Get rich, for sure
We are getting rich, for sure. I don’t know about those other guys, I wish them well, but if you are here with us, we are going to get there. I know that we are going to be more aggressive in 2018, but 2017 was no the time to make those moves. Now that we have reserves, we have solid returns in the 20+ range we can afford to take proper risk. It will come but in year one that wasn’t the goal. You all will thank me later for this conservative approach.
2018 is about taking everything to the next level. 2018 is about morphing Todd Capital into a private equity holding company, bringing on even more members, and taking on more aggressive projects not just in the stock market. Our goal is 500 members and one million in assets. Those are both low numbers if we execute how I plan to execute.
Is 7% a big number? Nope. But the multiple holdings we have in the 20ish range prove that what we are doing is working. UA will come back but I would rather build something that is forever instead of what is just for now. If you want to build lasting wealth, this is the club for you. Email email@example.com to join today.
Be great, invest well,