So there's actually more than one way to make generational wealth and life-changing money from investing. Michael Berry Elon Musk and Warren Buffett Three people who made it big investing and they've all used different strategies all together. Michael Berry Gambled on One Singular event, the 2008 market Crash, the subprime crash and they hit it massively big. Warren Buffett Went Sloan steady for the past 40 50 years and made a lot of money bidding and good businesses for the Long Haul and Elon Musk bought Tesla When it was an early stage startup, he was buying up companies and startups investing in them because he thought they might hit it big in the next 15-20 years.

For those of you who don't have 200 million lying around you can't replicate with Elon Musk has done because at the end of the day, 95 of early stage companies failed. and if you don't have a couple hundred million lying around, you can't afford to gamble a hundred thousand here 200 000 there. It's just too much money for their regular purse. So investing in early stage companies is a privilege for the ultra wealthy.

And unless you're already ultra wealthy, that's not for you. And what about gambling? I mean Michael Berry did it and he made a lot of money. But I'm gonna argue here that even if you see a guy hit it big on the roulette table in the casino, it doesn't mean that you can hit it too. Probably 99 of people who play that with a table lost money and quietly walked away.

You've seen the one guy who made it, but you're not seeing the 99 who actually lose their pants. That's the problem with gambling if you lose a thousand bucks in the casino in Vegas It's not a big deal. but if you're losing your entire portfolio because you gambled it away, it's gonna change your life for the worse. It's gonna hurt your relationships and it's definitely gonna hurt your life.

So don't gamble in the stock market. It's not the right place to do it. Go to Vegas Spend a thousand bucks, learn your lesson. Come home.

Gambling in the stock market might work once or twice, or three times, but for 99 of people, it's going to be an absolute failure. So the only thing we can replicate here is the Warren Buffett approach. The Warren Buffett approach, which is go slowly, go surely. invest in good businesses is the only approach is replicable to retail investors, individual investors, normal people like us.

Now look at the end of the day. 99 of long-term investing can be summarized into these three principles: This is the same thing that Warren Buffett did for the past 50 years. Number one: Save more money. Number two: create more cash flow.

Number three: Invest smart and be patient. If you actually follow these three rules, you're gonna make money. as a long-term investor. it's that simple.

But something being simple doesn't mean that it's easy. Simplicity and ease are absolutely different things. If I Want to lose weight all I got to do is eat less garbage, sleep more drink, part water, work out more. Very, very simple.

But is it easy to do well? As most people will tell you, no, it's not easy to do. These are complicated things for every human being because of our psyche, because of our emotions, because the way we're hardwired. To Be Our Own Worst Enemy Now at the end of the day, we have to start with the basics. here.

let's go through these three things: Save more, create more, Be patient and smart. So let's start with saving more. So we live currently in the society in which companies have gotten really good at getting your cash out of your pocket and into their pockets. this abundance mentality.

endless amount of choices, everybody wants you to spend money, a thousand subscriptions, a thousand different options, take out more leg room on flights, better cars with more options, etc. etc. Now there's a huge difference between actually investing money and consuming. Now when I buy a car and I buy an expensive car excluding of course you know Collectibles if I'm buying expensive car I know for a fact that this car is going to be worth 30 less a year after.

So I'm just spending money to enjoy myself at the cost of losing 30 of the asset I Just bought. So let's be clear with this. You know: investing makes you richer, makes you wealthier, increases your ability to spin, spending makes you poorer, decreases your ability to spend. Now, if you want to spend your money, that's fine.

But if you want to invest, don't tell me this new car you just bought as investment. Don't tell me this new clothes or these gadgets are investments. None of these things are investments. More legroom on the flight isn't not an investment unless of course you're a businessman and you need that extra leg room because you're in a 15-hour flight and you have a presentation to make.

Fine I'll accept that. but for the most part, all of you are overspending because Society have conditioned you that this is okay. and because of that, you have less disposable income to invest. And that's the sad part.

So you can do that by basically adopting a few. Simple Rules Now I'm financially free. You can do whatever I want, but I don't play that game I Drive a seven, eight-year-old car. My wife drives around the 15 year old car.

My next car is going to be a Tesla by the way, but it's not gonna happen until my previous car dies on the road. That's the only time. I'm gonna replace my car because this car is a depreciating acid I'm not going to spend Hard Cash on something that's appreciating unless absolutely half if I have to. I'm gonna buy the best one just now.

Let's talk about the second item. now that we talked about spending versus investing and less spending as a way to save more money, let's move on to item number two. Item number two is all about creating more cash flow. If you want to invest, you have to have something to invest if you don't have available Capital to invest.

None of this advice is going to help you now. Obviously one way to generate more cash flow is to get better at things. You can go the usual route: go to college, get a good job, and get raises, and get promoted. That's fine.

That's one way of doing it and there's no shame in it. There's this new movement where people telling you lies about. Oh, the nine to Five is a scam. No, the nine to Five is not a scam.

Nine to Five. Good job. It pays well is definitely most definitely not a scam. It's a great way to create more cash flow and the longer you are at your job, the better you are at your job.

The more promotions you get, you can actually generate quite significant amount of cash flow. So all these gurus that are selling you oh, you need to quit your job and become, you know it. Drop shipper. That's all nonsense.

Now Number two, you can go the different route and open the business. If you have a skill, a skill that actually is worth money, you can open a business and body of mine. It was a school teacher. A math school teacher wasn't making enough money barely just to survive have a couple of kids.

Life was tough. He decides to open an online business in which he actually teaches people online math. This business in which he took a skill that he has that other people want and they found a way to scale it better than to teach at the school. He's now teaching online.

Making a lot of money, but there's other ways to create a business, find something you're good at that people need, and monetize it through a business. And of course, you can do the hybrid. If you have a job that you're okay with, you don't want to quit, and you have some extra time, you can create a side hustle. And through that side hustle, you can make some extra money.

and instead of spending extra money on things you don't need and consume, invest. Simple as that. Now let's talk about the third part. and I think the third part is probably the more important one of them all.

Once you know, know that you have to save more money by spending lists. Once you understand that you have to generate more cash flow to invest more, now you have to understand the third part: Smart and patient investing. So first of all, let's start with patience. Before we go to the smart part.

Itions in investing is very important at the end of the day. the longer you keep holding stocks and index and good businesses, the more chances you have of making more money than the rest of the people who are degenerately gambling in the stock market every year. that goes by. the patient index investor, the patient good business investor that stays the course, makes more and more returns than the degenerate gamblers who basically go in and out every single day, swing trade and all that stuff.

Now the reason I'm saying this because it's factually proven Fidelity Actually had a study in which they've chosen a bunch of portfolios and they've analyzed them and they found something very interesting out of the entire subset of the Fidelity portfolios. the ones that did the better of them all were the ones with dead people or people who have not logged in for ages so people basically forgot their password or forgot they even have an account or did. The only people who've made it big are the ones who left the account loan and didn't meddle it. Now the only reason that people meddling it is because a they think they can hit it big because they know better and they have better understanding in the market than anyone.

And the other person is the dopamine addict. The dopamine addict knows that he's gonna screw it up, but he just wants the action. He wants to feel the thrill of buying and selling and when you have The Thrill Seekers versus the know-it-alls this is what you get Annihilation don't do that now time. patience I actually did risks.

The thing that creates the most amount of risk in the short term. Now short term if I hold cash I'm in the best position ever I'm not gonna lose it, but stocks are very, very risky. The stock can go down 30 40 in a single week, right? But as time goes by, if the stock I picked is good, if it's a good business, the fundamentals of this business are gonna eventually correlate with the stock price. The longer I wait, the more chances I have for the stock price to catch up with the quality fundamentals of the company I'm investing in and then my money is no longer better than the stocks I'm investing in because for the five six years it took, my money took a hit from inflation while my stocks have appreciated because they kept catching up to the quality of the actual business.

Now, time in the short term is your worst enemy and your best friend in the long term having a little bit of money to invest. But Investing For long is way better than having a lot of money and investing. For short, What does this mean? What it means that the power of compound interest is absolutely insane. Let me show you some numbers: I'm 20 years old and I'm putting all my money into invest that I have right now which is five thousand dollars into the S P 500 and I contribute 200 every single month through that account and I do it until I'm 65 years old and I'm gonna get on average 10 from the index by the time I'm 65 years old.

I'm gonna have 2.1 million dollars in my account. great But let's say I start late I wait I waste time and I start when I'm 40. But when I'm 40 I have so much more money. So instead of putting in five thousand dollars, I'm gonna put in a hundred thousand dollars 20x more because I'm rich now I'm putting in a hundred thousand dollars same contribution with 200 per month.

ten percent. I'm gonna end up with 1.3 million. So me wasting time just cost me eight hundred thousand dollars even though I put in 20x more money when I started out. So time and a little bit of money is way better than no time and a lot of money.

So starting the compound interest early by investing as early as you can is the right way to do it. Remember, time in the market is way more important than timing the market, so there's never bad time to start investing in S P 500 in index funds and good companies. Never a bad time. Now let's talk about investing smart because at this point we covered the investigation part.

But now let's talk about the investing smart part. Now, the first thing about investing Smart is you have to understand that you know when you see in the movies when the cop gets shot and they were bulletproof fist you always have the scene of the cop is like oh my God they take off the vest and you know they're all fine. There's nothing going on that's not the reality, the reality of a bulletproof first. and if you get shot in it is, you're going to be badly injured.

But guess what, there's a good chance you're gonna survive and you're going to live now. The bulletproof vest is not going to protect you from pain. It's not going to protect you from injuries, but it will save your life most likely. Same thing with the S P 500 and diversification.

If you diversify. if you put your money in the S P 500, it's going to save your ass when you get shot. When the market takes a shot at you, you are gonna survive. It's gonna be painful, but you're gonna survive to fight another day.

Now that is why I Personally have 40 of my entire portfolio sitting in the S P 500. Because I know it's going to protect me from me for making stupid decisions and I know it's going to protect me from the macro if the entire Market goes to the toilet like it did in 2000 or 2008. I Know one thing for certain: my S P 500 is not gonna die like certain individual stocks who will be annihilated. Yes, it will take a hit, but it's gonna survive to fight another day and I'm gonna be in it.

Now The second thing about being smart Investments is don't invest in companies that are not going to be here in 10 years if a company is trending right now if it's hot right now, but you know it's not going to be dominant in 2033 to not invest. That is why I invest in Palantir. That is why I invest in Tesla I know at least I hope and have a strong Jesus that these companies going to be around in 2033 and how do I know that? Well that brings me to my final point. The smart part starts with due diligence, due diligence of a company, research of a company and the way to do it is by sticking to these rules I'm going to teach you right now and it's all going to be free.

So listen up number one: In order to do good due diligence on companies in order to build a thesis, This is what you got to do First of all, research every single day, Every single day. Make sure that your thesis about a company or a business is intact and nothing can change. Spend the time every single day making sure your thesis is not feces. Number two, doubt everything I was in a meeting once when I was working for Deloitte as a senior manager and we were at a company and they had a guy in The Boardroom whose only job and I kid you not was to be the doubting Thomas His only job and that was actually said so was to doubt and challenge everything that's being said just so There's no confirmation bias about nothing and that's brilliant.

Be the doubting Thomas of yourself Doubt everything. Do Not conform even if it really feels good to get some confirmation bias. Get a little bit, but make sure you doubt everything. And of course you have to learn.

DCFS Learning how to do weighted average cost of capital, learning how to model, learning how to do DCFS is going to give you better results than looking at crowd psychology charts and different indicators of Macds and Rsis. Learn how to evaluate intrinsic value of companies instead of this crap. Now of course, you have to think in decades. That's another important thing.

Think in decades because again, if this company you're investing in is not going to be dominant in 2033, if it's not going to be around in 2043, it's probably not the right investment for you. Every single. Company Warren Buffett Bot fits this criteria. He always thinks in decades.

And of course, you cannot let a good failure go to waste to create intellectual property out of your loss whenever you scrub, whenever you fail. That's a chance for you to get better by debriefing it, learning what went wrong so you don't do it ever again. It's an opportunity. It's not a bad thing now.

of course. The one thing I'm recommending to all of my students in my Patreon group in my YouTube channel in my community on my Discord Do Not Check Your stocks Every Single day. You're creating a horrible habit that's eventually going to cause you to do some stupid. And of course, you have to understand the companies you're investing in.

Now it doesn't mean that you know you have to be a rocket scientist to invest in SpaceX It doesn't mean you have to be a data scientist to invest in Palantir. It means you have to understand the business, what they're doing, the business model, how the company works, not just betting on Trends because I see a lot of people saying well I'm buying C free AI Because AI is really hot right now. No. Learn the business.

And of course you have to accept the fact that boring is good except the boring S P 500 Hug it, embrace it and love it every single day. It's your best friend. And of course, dollar cost averaging is super important. Stocks go up.

Stocks go down. Stocks are erratic. They never go straight up or straight down. If you want to build a position in the stock and you want to have it low average, a low cost of basis, you can't climb it.

It's impossible to time it. The only thing you can do is buy it all the time as it goes up and down. So you create an average. and if you want to go one step further, you can buy more when it's down unless when it's up.

So your average goes a little bit closer to the bottom, which is something we teach on our patent group patent.com forward slash Tom Nash We teach this system on our Academy There's a few spots left in our Academy It's an absolutely brilliant space for people who want to learn, modeling, financial analysis, due diligence, who want to become better long-term investors. Check us out! There's a 30-day money-back guarantee for anybody who joins with a weekly Zoom meeting. We have lectures. We have a lot of stuff.

We have a Discord with 5200 members I invite you to join us and learn with us. The link is going to be below and in the pinned comment now I did put out a whole video with six elements of how to spot a great company you want to invest in. Very very simplest. I'm gonna put it on the screen right now.

Go watch it and I'll see you there in just a second. Foreign.