Okay, so let's talk about the once in A- lifetime opportunity we got in the market right now: I Think a lot of smart investors are going to make a lot of money in 2024. You see, investing in 2024 is going to be a lot different than what worked in the past. It's going to be absolutely a whole different ball game. If we look going forward, there're going to be a number of factors that have helped: Drive the wonderful returns we've had that are just not going to be there now.

My own portfolio is comprised out of three elements three elements only Tesla Paler and the S&P 500. Now in 2022, Tesla and Paler Dro 60% Each portfolio went down. The FED has been raising rates in hopes of slowing the economy, and with so many businesses still hiring, that means the economy isn't really slowing that quickly. That Riy Wall Street facing the growing possibility of a recession, Wall Street spent another day in turmoil and you're probably feeling it in those 401k stocks are for the stock market and bond market.

It was the worst year since the great financial crisis in 2008. That wasn't a good year, but I didn't fall through the floor because I had a big chunk invested in the S&P 500 that kept me safe. Fast forward to this year: I'm up 150% on Paler, 100% on Tesla and my portfolio is only up 86% because the S&P is holding me back. But I'm okay with that.

That insurance policy Works in my favor when times are tough and a little bit works against me when times are great, you don't want to get too high on the highs and too low on the lows, you always want to stay balanced. That's the key to what constitutes in my opinion, a good long-term investor. I Survived 2022 and now I lived to fight another day and had a great 2023. If 2022 would have broken me and I would have gotten out the market 45% down, licking my wounds I would not have enjoyed the 2023 spike.

It really doesn't make any difference in what I do today in terms of buying stocks or buying businesses. What those numbers tell me they're interesting, but they're not. They're not guides to me. if if we buy a business, we're going to hold it for so.

we're going to have good years, bad years in between years, maybe a disastrous year some year. And and uh, we. We care a lot about the price. We do not care about the next 12 months economic predictions just don't enter into our decisions Charlie Muger my partner and I In you know, 54 years now, we've never made a decision based on an economic prediction.

We make business predictions about what individual businesses will do over time, and we compare that to what we have to pay for. But we have never said yes to something because we thought the economy was going to do well in the next year or two years. and we've never said no to anything because we're right in the middle of a panic. Even if the price was right, bad years will happen.

and they will happen when you least expect it. Nobody can time the market. Nobody has a crystal ball. Despite what you hear in mainstream media, nobody knows when bad times will come.

And you know the famous saying: the market goes up in the stairs and drops in the elevator. and that's super important here. Now if you just stay the course and you keep investing in good companies and you longterm your mindset, you'll be fine because bad years will get swollen up by the good years. With retrospect, 2020, 2021, 2023 all basically offset how bad 2022 was.

But that's not going to work if you just in it for the short term. If you're a tourist in the market, you're going to get slammed. Now my 2024 investing plan to attack this once in the lifetime. opportunity is comprised out of two elements, and these two elements are quite simple.

Simple enough to summarize in about 3 minutes. Now, Part one is is investing in great companies. That is my way of trying to beat the S&P 500 with the companies I pick specifically for me I Think that Tesla and paler have a good shot of beating the S&P 500 more often than not, Maybe true, maybe untrue. We'll find out Number two: keep myself grounded by putting 40% in the S&P 500.

You literally cannot lose if you put your money in the S&P 500. For 20 years. no money manager has beaten the S&P 500. 20 years trade you put at the S&P 500.

You bet on the US economy which is hands down the best economy in the world and you make your 8 to 10% a year and you get super happy about it. Number three: Buy Smart And that's probably one of the most important elements about this plan. Buy Smart means that you don't want to buy a convertible in the middle of the summer. You want to buy it in the winter in a hail storm in January when everybody body is freezing their ass off and nobody's able to push out these things.

On the contrary, if you want to buy a snowmobile, you want to buy it in the summer, you don't to buy it when everybody's hunting for a snowmobile, you want to buy smart buy things when they're least wanted. How? Well I just told you you cannot time the market. so how can you do that? How can you buy cheap? How can you book a ski vacation in the middle of the summer when you don't know where the market is headed? Now the system I use is quite simple and I shared multiple times with my community with my patrons With everybody. it's not a secret.

I dollar cost average which means I buy the stocks that I like the S&P 500 the Teslas the peners and I buy it every single month no matter what. Price up price down I Keep buying. but if the price drops below what I consider my threshold. let's say 10% below the 52e high I Buy more.

On the other hand, if the price just spiked and we just hit new time highs I'm going to buy but but I'm going to buy a little bit less. You want to keep buying more when the price is cheaper than usual and buying a little bit less when the price is higher than usual. By doing that, all you are doing is creating an average that is way closer to the bottom than to the Top. This is the cheat code that beats trying to time the market every single time.

In fact, this is kind of the long-term holding strategy, but on crack. Now Part two is something that you have to understand. We have to prepare for the end end of the Easy Money environment. That thing is gone forever.

You see cheap money means big profits. It means big returns, exuberant stock markets. That's been the policy preo for years. that thing is gone.

There's never going to be another 0% interest environment. Again, the era of the cheap money is over. which means that investors cannot play anymore on easy mode. This is now a very very very complicated game.

And what do I mean by that? Well look. Cost of Capital is going to remain higher than what we have accustomed to and that's fine. But here's the thing. models of valuation like a DCF are based on the weighted average cost of capital.

If interest rates remain elevated at least for the next 5 to 10 years, which is the case then the valuation models that look at growth companies with much more money down the road in three four, five years. These models will value growth companies at much cheap, cheaper valuations than we've seen pre Pandemic and 2021. This means this is the end of investing in growth, right? H Wrong. Quite the opposite.

The 2000s gave us birth us the Magnificent Seven That happen because when times get tough, the ones who survive they become Juggernauts and they take over. Remember the movie Forest Gump Well in that movie Tom Hanks was playing a guy who had a fishing boat and then times got really tough and a lot of the boats that was in the same area they got sunk and they got destroyed. But because his boat survived the storm he became a massive shrimping. Corporation He became a billionaire or whatever.

right? when times get tough and a lot of these growth companies who are fakers will go away, the cream will rise to the top. Which means it's a massive opportunity to start investing in growth. 2024 is going to be a great year for smart, long-term investors who invest in good companies who are great Capital Locators Now you can do it and you can do it in two ways. Number one, which I think is the best way for 90% of people is buy the S&P 500 wait for 10 years, open your app again and look how much money you've made by doing literally nothing Warren Buffett Said this, Not me.

This is the best investment strategy for 90% of people. You will never be wrong by betting on the US economy. Now of course there's another way of mixing that up. which is what I'm doing and having 40% of my money in that strategy but putting 60% of my money in individual stocks.

But to do that, you got to learn how to model how to analyze how to become good stock. Pickers Good analyzers of businesses. Now you can do it by doing two things: Number one: acquiring the right skill set of how to build your own DCF How to evaluate companies how to look at financials. We teach these things on our patreon.

by the way, Patreon.com Nash You can check out our Academy and also you need the right tools to do that, which is something that we do on stock. MVP Stock Dmv.com We have a tool that's designed to give every single retail investor like you the opportunity to look at a company and within 30 seconds to know everything you need to know about it and it's fully customizable. You can build your own set of parameters like cash flow like price to earnings like price to sales. like how much the company grew over the past five years? What's the Insiders have been doing? What are politicians are doing with this company? By the way, How much institution investors are in there? What are the analysts are saying? Everything in one place that gives you the answers within seconds.

And don't forget staying the course. Being smart and patient is the key of having a successful 2024. Thank you and I'll see you in the next video.