Equity & Assets Is the Only Way to Wealth: More BTB Personal Finance Wisdom
I’ve long followed BowtiedBull formerly known as the Wall Street Playboys. They are a game changer for any person. If you are fortunate to read and heed their stuff, you will be far ahead in the game of life and investing. Super prescient and direct. A june newsletter was no different.
Worth reading the whole thing: https://bowtiedbull.io/p/the-american-dream-is-granted-with
But in the K-shaped economy, I think you know which side you should be working to be on. As always they argue against counting on cash and your W-2 salary to make it.
"If you constantly use cash compensation, you will fight upstream: 1) higher tax bracket, 2) limited optionality and 3) no convexity in a bank account.”
All that matters in personal finance in this present world is assets. Cash helps you survive day to day, believe me I know. But what really counts in the long run for wealth creation are assets. Assets, assets, assets.
“Instead of viewing your “net worth” by a bank statement, you need to come up with an asset statement: Stocks, Vesting RSUs, Options, Business ownership percent, real estate, Crypto and anything else that should go up in the future. The only way to fight off inflation + constant regulation is with assets.”
And as I have stressed and stated many times, location matters. As much as I love Japan, Taiwan, Canada and most of Europe, America is unparalleled when it comes to business, investing and wealth creation. Many MAGA Nationalists hate it when the USA is referred to as an economic zone. But it kind of is. It’s the best one on the planet. That is why so many ambitious and entrepreneurial minded people want to come here. The upside is uncapped.
As BTB wrote:
“You can achieve the classic American dream much faster (completely free of office commute by middle age at minimum). This is due to immense opportunity and wealth in the USA. If you can’t make it here. You can’t make it anywhere. We’re serious.
We know a lot of people who grew up in various countries and the avenues to getting rich in the USA are unmatched. Europe, Asia and little brother Canada have nothing to offer compared to the opportunities in the USA.
The only real downside is that you need to be ruthlessly self aware and laser focused on the next 10-15 years. If you choose the wrong map (going into low margin high competition restaurant businesses for example), you will be playing a much harder game.”
The trend is your friend, so understand the global macro, tech trends, consumer behavior, human psychology, build their thesis and take massive action. The guys conclude:
“Make your long term predictions and stick to them. Ours is on digital immersion, glued to screens, degeneracy, long-tech and talented people having multiple businesses/income streams in the 2030s."
Bowtiedbull has been right so many times this last decade and has a good track record. I wouldn’t bet against their takes. So position yourself accordingly as a business owner and investor. You can’t go too far wrong here.