Secret to beating inflation

[BigBalls]

Easy, you MUST invest. Saving isn’t the answer. And you must invest wisely, 10% returns won’t cut it anymore. A 10% return just puts you into survival mode. My distressed asset business is throwing off a cash on cash return of 21.9% over the last 12  months, acceptable but a drop from the previous years. My real estate loan portfolio is 17.5% cash on cash returns but as rates move up it will improve. Stock portfolio is over 35% returns but the risk is much higher than my loan portfolios.

This is your opportunity to thrive. Do it.

 

 

[RWC]

Wow! Those are some excellent returns. Using the rule of 72 your real estate portfolio alone is doubling in value  every 3.28 years with a return of 21.9%.

If the 35% return on your stock portfolio is YTD that is incredible considering the total market index is up about 8.58% counting dividends. You’re beating the market handily, not easy to do. Nice going.

You make a good point about beating inflation people can’t just be sitting in CD’s and MM funds or you’ll watch your purchasing power get eaten away.

[BigBalls]

The distressed asset portfolio return of 21.9% is actually on a liquidating  portfolio. I buy the delinquent mortgage notes, work with the borrowers to either pay me off (under threat of foreclosure) or agree to a loan modification. If they pay me off I celebrate, if they do a loan modification I season the note for 6-12 months and then sell it to a mutual fund I work with.  I take a haircut when I sell it because no one will pay 100% of the UPB (Unpaid Principal Balance) on a reperforming note, but I still get about 80 cents on the dollar. My real estate loan portfolio is one I hold for interest but I charge 11.95% plus 15 points upfront so those tend to pay off early too because only a fool would keep an 11.95% loan for very long. Usually the loans pay off in 12-18 months, which I prefer because i can keep loaning the same amount and collecting new points every year. My property portfolio, which holds actual properties is my bread and butter. Stock market goes up and down but you know what never goes down? Rents.

My stock return is a 1 year return not YTD

WMT 35.73%

NVDA 79.82%

AAPL 40.39%

TSLA 36.36%

PLTR 13.36% (freaking dog)

a couple of other small dollar investment stocks dragging my average down but none are losers.. all in all its been hard to miss on stocks  the last 6+ years. Throw a dart at ticker symbols and you’re bound to get 30% returns.

CD or MM accounts are a losing proposition when you calculate the opportunity cost and inflation numbers. I’m an amateur stock investor but CD and MM is for ultra amateurs and fraidy cats.

[Daystalker]

But do you have gold under your twin-sized mattress?

[Author]

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