How to make BIG money!
Today’s newsletter is not about products, but strategies - to make big money.
Now before you think that you’re gonna be like Bappi Lahiri wearing 2 kgs of gold, let me give you a disclaimer: These are strategies that have the potential of making money. They don’t come with any kind of 100% (or money back) guarantee.
Also, they’re pretty long-term strategies (8-10 years), so the wealth creation won’t happen tomorrow.
Let’s look at what you can do in life to build astronomical amounts of wealth. The core principles you need to use for building wealth are:
1. Go for high-risk, high-return products
But this comes with a caveat: Don’t bite more than you can chew.
Look for products that have a 30-50X upside, and see what the downside could be. More the downside, lesser should be your investment.
If you had, for example, invested Rs. 50,000 in Bitcoin in 2015, you’d be having more than 30X returns today. But the downside risk would have been that you could lose your entire capital.
A good analogy here is small-cap stocks, startups or unlisted companies. Investing in them before they become mainstream is risky, but the good companies from these have the potential of giving you that 10 or 30 or 50X return, which a stock like HDFC Bank will probably never give. Not in the near future at least. And unlike Bitcoin, your investment in such companies will probably never go to zero (unless the company declares bankruptcy, which is rare).
(We’re coming up with investment options in unlisted companies, so if you’re keen to explore it, the link for the early signup is at the end of the article)
2. Invest in avenues before everyone else does
Let’s look at Bitcoin again: If you had invested in Bitcoin before 2017, you would have made a 50%+ CAGR even after the recent price crash.
Bitcoin started becoming mainstream after 2018, so more and more people started buying it, and demand rose. This meant prices also rose. And if you purchased after the prices increased, your returns will obviously be lower.
The same is true for any investment option. As long as you feel that it’s a promising new product and you’ve done your research well, investing in it before the mainstream population, can make a huge difference to your returns!
As a side note, this is also true for careers. Had you started creating content on Instagram before 2018, you’d probably have half a million followers by now. But try starting now, when the space is saturated, and you’ll see how difficult it is to even reach 50K.
Working at an early-stage startup is another thing that can make you rich via ESOPs. But again, it’s for early-stage startups which haven’t yet caught the eyes of other investors. Try joining a Series B startup, and those ESOPs won’t be more than a few lakhs.
The idea is, whether it’s an investment, a career or a life choice. Getting in early is the key.
Having said that, the risk of investing early is higher.
For financial products, there’s not much historical data available, regulations are not in place and the product may even die before getting accepted by the mainstream.
For careers, you may not know whether your career choice or your startup is going to get big a few years down the line
The key is to invest a small part into whatever it is.
For example, restrict your investment amount to less than 5-10% of your portfolio. If it’s about career, tell yourself that you’ll give it not more than 3 years, and if it doesn’t work out till then, move on. So that’s a small downside, but a huge possibility of upside!
3. Start a business
This is easier said than done, but if you have stomach to take this leap of faith, I don’t think there’s anything that gives a higher upside to wealth creation. With a business, the sky is the limit. And the downside is losing out on 2-4 years worth of salary in case it doesn’t work out. If you’re able to live with unpredictability and a low income for a few years, you should definitely give this a shot.
Having said that, doing business is not for everyone. It’s unpredictable, demotivating (a lot of times) and stressful AF. And it’s not the only way to get rich, so don’t worry if you don’t want to do it!
You can always opt for investing in products that give you the 30-50X returns. But..
How do you discover the 50X-ers?
Easy buddy! We’re here na! 😁
With Jackfruit, you can now invest in lesser-known, unlisted stocks of companies before they get listed and move to the mainstream - an early investment opportunity that can help you make the 20X that we’re talking about!
We’re scheduled to launch on 1st December, and are taking early sign-ups from folks who’d like to invest in such companies.
And because this newsletter is purely educational, we won’t share any product details here. But if you’re keen to explore these options, you can sign up on the waitlist HERE and we’ll get in touch with you! And don’t worry, you’ll have sufficient data to make the decision if you want to go ahead. The whole idea behind Jackfruit is to simplify finance, and we’ll make sure we live up to it! 😁
Please write back and let me know if today’s article helped you move a step closer to wealth creation! I love receiving replies from our community, and reply to all of them (almost immediately)!
See you next week!