Invest, Don’t Speculate: Why Appreciation Cannot Be Trusted

“Our favorite holding period is forever.” Most investors say they agree. Almost none invest like it.

Buffett wasn’t mistaken when setting forth this guiding principle—and it has made him billions in profits as a result.

For Buffett, Munger, and a long line of sage investors, buying at a low price and hoping for a high price is not investing—it’s speculation. But, in today’s economy, it seems that 99% of “investors” are only concerned about the short-term payoff of their principal, not the long-term compounding that made investors like Buffett and Munger some of the wealthiest in the world.

Now ask yourself: Are you investing, or are you speculating, merely hoping that your assets increase in value?

This is the fourth step in our Sunrise C.A.P.I.T.A.L. strategy—invest, don’t speculate. And there’s one factor that turns a speculative guess into an actual investment. I’ll prove it by showing you a real-world example of how we put speculation aside to generate durable, strong cash flow for our investors. You can do the same if you invest, not speculate. 

Wisdom of wealth from today’s episode:

  • The single most dangerous lie that “fix and flip” operators try to peddle 
  • You can’t eat IRR: why durably wonderful cash flow is the lifeblood that outlasts all other returns 
  • The one factor that turns your risky gamble into an airtight investment 
  • A real-world example of how “buying time” made our investment a cash-flowing machine 
  • The one thing that crushes good investments—and the only way to mitigate it 
  • Appreciation cannot be trusted—if your wealth relies on it, you won’t be safe

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The Sage Investor – #2 – The Buffett-Inspired Approach to Building Enduring Wealth (C.A.P.I.T.A.L. Strategy) 

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