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1 Winning Strategy: Don’t Trade. Invest!

Here’s the 3-1-Q.

3 insights, 1 word for you to ponder and 1 question for you to jump-start your week.

3 Insights…

No. 1: “How College Broke the American Dream”

Will Bunch’s latest book … After the Ivory Tower Falls: How College Broke the American Dream and Blew Up Our Politics ― and How to Fix It … covers college education and how it’s impacting both older and younger generations. I sat down with him to tackle one big question: What is college even for? Listen here.

No. 2: “Why rich people are shopping at Walmart”

Walmart recently reported earnings — and blew away Wall Street’s expectations. It attracted a lot more high-income shoppers this past quarter. And it’s all thanks to a phenomenon called “trading down.” Read the story here…

No. 3: “Warren Buffett: How to invest your first $10,000”

Buffett got his start by investing small. And at a Berkshire Hathaway annual shareholder meeting, he shared how he would invest $10,000. His insights can help anyone get started investing in the stock market. Watch the full video here.

1 Word…

I started as a floor trader when I first went to Wall Street close to 40 years ago.

And let me tell you, trading based on every wiggle and jiggle of the market is a tough game.

Thank heavens I no longer trade!

I’m blessed to have met mentors who guided me into long-term investing. They showed me that stocks are just pieces of a business.

And if you can figure out the value of the business, you know what price to pay for the stock. Then, all you have to do is buy the stock when it trades below the worth of the business.

That’s how you make the big money as the company grows and the stock price marches higher.

It made complete sense to me because it was rational and based on logic.

And a few of my mentors were on the Forbes 400 list of the richest people in the world. So, what better proof that this strategy is a winning one?

Being an investor — rather than a trader — and owning a part of a business puts time on our side and can make you rich.

That’s why my word this week is “time.”

“Time is the friend of the wonderful business, the enemy of the mediocre.”

 — Warren Buffett

1 Question…

I’m addicted to my two cups of coffee each morning.

And if you’re a coffee drinker like me, you know that getting your morning fix of caffeine is the first order of the day.

In fact, it’s such an addictive habit that it’s basically inflation-proof.

The Wall Street Journal recently reported that consumer spending fell 3% last month.

But cafes and coffee shops outperformed! Spending there is up 2%, despite higher prices hitting our wallets.

That’s a strong tailwind for the coffee shop market if you ask me.

So, how many cups of coffee do you drink every morning?

Let me know your thoughts by commenting below!

Make your week a meaningful and profitable one.

Wishing you all the best,

Charles Mizrahi

Founder, Real Talk