532: Pejman Ghadimi – A New Paradigm for Buying Nice Stuff

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A few years back, I bought some very expensive sports coats. I wore them at first and enjoyed them. But over time, they kind of lost their luster. 

As I have found often to be the case in my life, I don’t tend to care that much about fancy stuff—fancy jackets, fancy shoes. My true self regresses to a fairly simple jeans and flannel circa 1992 style—not expensive. 

Realizing that these fancy clothes were just rotting in my closet, I recently sold them on a well-known second-hand site with only designer stuff. And I was shocked when I realized I was only getting 10 cents on the dollar for what I paid! 

But then again, I guess I shouldn’t have been. Buying new fancy clothes has an extremely low likelihood of being a good investment. It reminded me of my good friend in town here who’s made millions of dollars in his life. He only buys nice stuff. But he almost never buys new things.

The furniture in his house is incredible. Hundreds of thousands of dollars of mid-century modern gems. And he buys vintage cars rather than new supercars off the lot. He also has a 7-figure collection of rare watches. It’s all really nice stuff. 

The difference between what he is doing and what I did with those clothes is that he was investing while I was spending. While he’s bought millions of dollars of cars and watches, he’s always made money with them because he has focused on their future value. 

Maybe I’m a bit dense, but I never thought about stuff this way before meeting him. And I still have to remind myself of this paradigm. It’s a different way to look at luxury and one that is certainly smarter when it comes to your pocketbook. 

My guest on today’s Wealth Formula Podcast teaches people how to live this kind of lifestyle with cars and watches. I’ve interviewed him before, and I’m doing so again because so many of you have engaged in this way of buying nice stuff that I get regular requests to have him back on the show. 

Transcript

Disclaimer: This transcript was generated by AI and may not be 100% accurate. If you notice any errors or corrections, please email us at [email protected].

 So it’s a recipe for a very good business that allows an asset that’s increasing in value, scarce in supply, and that’s continuously increasing in demand because more and more people are getting richer historically, every single year for the last couple years.

Welcome everybody. This is Buck Joffrey with the Wealth Formula Podcast. Coming to you from Montecito, California. Uh, before we begin, just a reminder, there’s a website associated with this podcast, it’s wealth formula.com. One of the things to really, um. Consider doing their, uh, as soon as possible in this fourth quarter is to join the accredited Investor club, the AKA Investor Club.

You can do [email protected]. Uh, there is a lot of, uh, there’s a lot of things going on in there right now in terms of private deal flow, particularly focused. On tax mitigation, um, and alternatives and real estate and stuff like that. Um, so make sure you check it out, uh, especially if you’re looking at, you know, potentially doing something that you invest in and saves you some tax dollars as well.

Go to wealth formula.com now. Um, today we’re gonna talk, uh, about a topic that I’ve talked about before a few years back. Lemme just give you this example. I bought some very expensive sports goats and I wore them, uh, at first I wore them a lot. But over time they kind of lost their luster. I found often to be the case in my life if I don’t tend to care that much about fancy stuff, even though I kind of feel like I want to fancy jackets, fancy shoes, uh, I tend to regress to my, uh, 1992, uh, circa 1992 style, which is like, you know, jeans and maybe a flannel or t-shirt or whatever, but.

Point is it’s not expensive. So realizing that these fancy clothes were just rotting in my closet, I recently thought, well, gosh, maybe I could make some money off these and sell ’em. So I sold them on a well-known secondhand site with, uh, that only has designer stuff on it. And, and I ended up only getting about 10 cents on the dollar for what I paid.

Now these things were in like perfect condition and all that, and that was super designer stuff, whatever. But. I was shocked, right? But maybe I shouldn’t have been and probably I shouldn’t have been because buying new fancy clothes has an extremely low likelihood of being a good investment. It reminded me though, of my good friend that I’ve talked about before here in town who’s made millions of dollars in his life, right?

He has a lot of money. But the thing is that, you know, throughout, uh, this journey, he’s only really ever bought nice stuff. I mean, and the other thing is he almost never buys new things. So, um, for example, furniture in his house, incredible. He’s a design guy. He. He’s got hundreds of thousands of probably even millions of dollars worth of mid-century modern gems in his home.

Um, and he buys vintage cars, uh, rather than a new supercar, supercars to, you know, get that sort of thrill of having the, the fancy cars. And, and he also has a seven figure collection of rare watches. You know, he is got a bunch of these, I didn’t even know anything about these watches. Um, but he knows everything about him and.

Uh, and he’s got a lot of it, lot, he’s got a lot of, a lot of money invested in that stuff. Uh, now what’s the difference between what he’s doing and what I did with those clothes? Well, he was actually investing while I was spending, you know, he’s, he’s bought millions of dollars of cars and watches, but he’s always made money with them because he’s focused on their future value as well.

So anyway, maybe I’m a little bit dense, but. I never thought about stuff this way before meeting him. And uh, and I still have to remind myself of the paradigm that that sort of paradigm, uh, it’s just a different way to look at luxury and one that is certainly smarter when it comes to, you know, your pocketbook.

Anyway, um, that brings me to today’s guest on Wealth Formula podcast and he basically teaches people how to. Live the lifestyle, you know, in particular with cars and watches. Uh, but again, do kind of what my friend’s doing, which is you’re not actually going to lose money on this. You’re going to make money or at least break even, or whatever, and you’re going to be able to have a bunch of really nice stuff.

Um, I’ve had ’em on the show before. Um, and, uh, I’ve gotten requests since then to have ’em on again, uh, with people who’ve actually taken his program. So I think you’ll find it interesting and we’ll have that interview right after these messages.

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Welcome back to the show everyone. Today I am joined by PJ Ghadimi. He’s an entrepreneur and investor who’s built a career around challenging the way we think about wealth. Really, he’s a creator of what he calls the Wealth Transfer Methodology using, uh, luxury assets like exotic cars and watch watches, not just for lifestyle, but his investments.

Uh, he’s helped thousands of people, uh, think differently about alternative assets and, and the way. Uh, that, you know, you can potentially invest in this thing. And I was just telling, uh, PJ F line here that he is constantly being recommended by people in our audience. So wanted to get him back on the show.

Pj, thanks for coming back on, man.

Yeah, it’s been a while. Good to, uh, be talking again.

Yeah. Um, okay, well let’s, let’s kind of do big picture here. I mean, you talk about wealth transfer instead of wealth creation. Break that down. What does that mean? Like what’s your kind of big philosophy that you’re, you’re after here?

So, so we’ve been trained as human beings to think of luxuries. As depreciating liabilities. So as expenditures, right? Our whole lives we’ve been told you don’t spend money on these things. They’re useless and they’re, they’re, you know, they’re gonna depreciate and be worth zero or they’re gonna be high maintenance cost type things.

And why would you do that? You could invest in real estate instead and blah, blah, blah. So, you know, there’s been this culture for the last 20 years that has prevented people from basically having greater experiences. With these things like cars or, or watches or even real estate. In many cases we’re told to buy what we need in, in homes, not extravagant, you know, insane homes, et cetera.

But yet, you know, over the last, uh, I’ve been teaching this for about 20 years, but it was very in its infancy stages back then. But, you know, over the last 10 years, we’ve seen a significant shift in how consumers spend. What they spend on, in, in all of these industries, cars, watches, real estate have favored financially.

The extravagance, you know, like the, the world’s best bags, like urmas, handbags, uh, bring back 200% ROI versus coach bags bring back 10 cents on the dollar. So, so you have significantly, you, you have significant supporting data to what I’m talking about over the last decade. I think it’s only gonna get worse going forward for the next 20, 30 years.

So I think there’s just a, a new way of thinking about these expenditures or so they call them and instead looking at ’em as transfers of assets. And here’s what I mean by that. We are trained to think when we buy 200 K car that we are buying. A $200,000 item and therefore, you know, we’re really scrambling around do I really need a 200,000 item?

But reality is because there has been so much demand and such little supply and such a significant speed and increase of millionaires or across the globe that, or, or just individual taking more money than there were previously, more ways of making money, that there has been a shift in the fact that that 200 k.

Expenditure in the past now could be a transfer of wealth where it won’t depreciate over the next 12 to 24 months. So you could actually buy it, park your money in it, enjoy it, and then get your money back out. ’cause there’s enough liquidity in that industry giving you the ability to just enjoy a car without actually losing money.

Now, contrary to buying that A BMW or that Kia or something that you’ve been told is economically affordable. Yet depreciating the zero. And even though that’s a 30 K card, depreciating the zero, that’s still a 30 k loss. But if 200 KA year, or even if you borrow it, you’re easily able to drive that car and get your 200 K back.

So it creates a very different dynamic in, in, uh, situation, you know, from one side to the other.

Yeah, I think it’s actually really interesting. Um, I learned a little bit about this kind of thing. Just his lifestyle, I would call it. It’s a different way of seeing, you know, things that you buy from a really high net worth, ultra high net worth friend of mine who he buys, you know, he’s, he’s a, builds homes and, and designs the homes rather.

And, um, you know, he’s, he’s never gonna buy something that isn’t gonna go up in value. So his furniture is completely stocked. In this house with like really rare pieces, like incredible pieces that are worth something.

Exactly.

And again, right. And, and his thought is, well, listen, people think I’m spending a lot, but in reality here, I’m spending less than the people who are going buying brand new stuff from, from, from the, the store that is guaranteed to be worth less.

So it, it is a fascinating thing. I’ve seen it in real life, um, uh, PJ in, in terms of cars. ’cause I know that was a, that’s a major thing that you talk about. Like, that’s an area where, um, I’ve seen my friend do that again, which with, but mostly with, uh, vintage cars. Right. Um, like, you know, Ferrari, Dino for a while, and he drove it around and then he sold it for like $200,000 more a few years later.

When you look at cars, for example, can you talk about some of the specific factors that help you decide whether something is, you know, is going to appreciate versus depreciate? Because obviously new cars, uh, for the most part, often even if you’re, you know, if you’re buying a. Um, a Ferrari or something like that for the first few years at least it’s gonna see a dip.

So what’s what sort of in general,

yes and no, but let’s address your friend with a Ferrari Dino, which is,

yeah.

Something that is a misconception is that the only cars that do. Provide good asset class management or cars that are older, obviously collectible, but have you tried driving an old piece of shit like that?

Like you don’t, you don’t wanna be in it. It’s like a

go-kart.

Go-kart. Yeah. I mean, you don’t wanna be in it, but it’s uncomfortable. The AC doesn’t work half the time and sometimes you can’t even find parts if things go bad. So you know, the average person cannot execute on a strategy of buying an old classic Ferrari that’s in the shop every three days and ultimately doesn’t know what to do, and it’s constantly pissing away money.

Modern supercars, and this isn’t every car, what you said has some accuracy to it. That yes, there are a lot of cars in their first year or two that show some sign of depreciation that that depreciation, once it settles, holds the car there for the duration or the rest of its lifetime. So to give you an example, a Lamborghini Huracan, when it first came out in like 2015 was a 230 to 250 K car.

And, and brand new. Now he depreciated to around the 200 to 210 K range, and ever since 2017 has been at the same price. So if you would’ve bought a Lamborghini Huan in 20 17, 18, 19 20, during the pandemic era or anything else after. You’d still, that doesn’t even matter how much up cars went, came down, that car would still be two 10.

So the point is that if you bought it at like 200, then you would’ve made 10 K. If you bought it at two 10, you would’ve lost nothing. But let’s imagine you would’ve even lost 10 grand over four years driving a Lamborghini. Does anybody really care to lose? $200 a month for driving aquar, you know, quarter million dollar car.

Right? So, so yes, cars depreciate, but there is a reality that’s coming that’s very effective right now that people are not talking about. And it’s that the same way that your friends Dino went up in value. Current exotic cars are starting to rise with a lot of value, even when they’re not special for two key reasons.

The first one is the industry as a whole has a lot of confusion about electric cars, and a lot of manufacturers have introduced electric cars that people don’t want. So there is a significant demand increase for used exotics over new exotics because new product isn’t exciting for almost all manufacturers, Lamborghini, um, McLaren, you know, Ferrari, it doesn’t mean that some product is not exciting, but the majority of the product is not to.

The price index of how much inflation, tariffs, and things have impacted cost basis of these cars has created a significant demand for used cars, again, because of where the price landed versus new cars. To give you an example, in 2015, the Huan brand new was a quarter million dollar car, and this was a, a, a very expensive car at the time for people today, like the replacement to that car called the Tamara.

Which is ultimately the same car just with a hybrid component, like the new version of that car. The base price with some options is around 400. So the entry Lamborghini went from originally in 2004 when it first came out in the hundreds, now to 400 for the very same car, you know, so you’re talking about 20 years later, the same entry product now costs someone like two and a half times as much as it did.

Versus back in 2004 when that product was even, uh, introduced. And historically, cars are never less expensive than their predecessors. So they’re always more expensive, which means that this is one of their reasons, depreciation cycles and exotic cars stabilize a lot more than Hondas or, or Acura or things like that because they don’t zero out.

And there’s always demand at different levels. That make it make sense. And so people are interested, like even today, let’s say someone in your audience is gaining some money, having some success, and they wanna buy a car, they may be out-priced out of a 400 K class A car. But they can still play at 200.

Now, if enough of them come in, well there’s only limited units of these 200 K cards, the price goes not ’cause everybody wants a 200 K car instead of 400 K card. You know? So these cycles in finance have stabilized these crisis so much and have now caused the reversal where prices are increasing on very common goods that you would call a Lamborghini or Han.

A very common car. Yet with more miles and more usage, yet its price index has not changed. Which tells you that you, if you now are buying a car with 20,000 miles versus four years ago with 8,000 miles, you’re paying the same price today as you were back then.

Is, is it typically cars that, that you can do this with?

Is it typically going to be cars that are like 200 grand or It could, could somebody do this with at a $50,000 number?

Yeah.

Yeah. What’s an example of that? Yeah,

well, lemme give you a very simple example. Take a look at BMWs, for example. Thousands of units made of regular BMWs, whatever that there are.

Three series, two series, whatever. Look at these specialty BMWs, for example, like the X five M, the X six M, uh, or any of the like M eight for example, rather than the eight series, the race performance series. These cars start in very high MS msrp, like insane, like 150, 200 grand, but they quickly, within two and a half years, depreciate 50 cents on the dollar.

Once they hit that, the depreciation cycle slows down to less than like three to 5% a year, which means that you have the ability after year three to drive these cars for two to three years at minimal losses similar to that of a Honda, uh, or Volkswagen, Passat or, or Honda Accord in its essence, because what you get.

Is while you will lose the same maybe as a, as the depreciation yearly, because obviously you’re dealing with 150 K car versus a, a Honda Accord being a 40 K car. The difference here is that you’re driving 150 K car and it’s costing you like 500 bucks a month. You know, which is significantly better than leasing a new Honda Accord and not really getting any enjoyment out of the experience.

Right, right, right. So you can do it, you could scale it down. You may not make money or, or you may not have a,

you won’t make money with a luxury good, but you will make money with an exotic good. So that’s usually the way things work.

Well, let’s, let’s talk a little bit about watches. ’cause um, that’s another thing that I know you’ve been doing.

Tell us a little bit about the watch market first and, and you know, why, you know, how it makes sense in the similar way that you talked about with cars.

So, so exotic cars that I, that I train people on. The Exotic Car Hacks model, I call it the Exotic Car Hacks formula, is based on wealth preservation strategy.

So it’s really not meant to be a moneymaker for people. As you get bigger and you have collections of cars, certainly just like your friends, you know, I make two to 3 million a year. On my private collection, just switching a few cars there and there and something, but it’s not the norm, so I don’t, I never sell it as such, like it’s a money making kind of program.

Yeah, it’s a, it’s a wealth preservation strategy and certainly by saving money you’re able to make more money and not waste it on cars, but enjoy the right cars and still get the experience out of it without the loss on the watch side, which I teach a watch Trading Academy. It’s a wealth creation strategy.

So those are two completely separate things. I, I tell people, if you’re playing in the world of watches, you’re there to play to make money. And we have many students who after two years, are making over a million dollars in a recurring 12 months in net profit, which is, it’s, it’s, you know, you would say in most programs, that’s the exception.

There’s a guy doing it and no one else is doing it. Uh, we graduate a new person every single week for the last three years into some insane stat, like 500 K in net profit a year or 1 million, which is insanity if you think about it. Like to, to think that this is the success rate of the program today.

And so people ask me why watches, what makes them so special? So watches are the only status signaling symbol for men. Because we don’t wear jewelry that much. Generic, you know, and cars certainly you can’t take ’em in a meeting with you, so, so you can’t really take a card or a board meeting and be like, well, you know, I drive a Bugatti.

So usually the way it works is men are driven by status and that’s what kind of started phrase of expensive watches and wearing something that tells the time, you know, like it’s like art on your wrist. In 2020, which I’ve been teaching watches since 2000, like seven. But in 2020 something really crazy happened and I kind of predicted this, which I was probably one of the only voices in, in 2019 when they were starting to talk about this idea of a pandemic coming from overseas where I started telling people, if the pandemic comes to the US, you need to stack up on assets like our and watches.

And people told me. Was cuckoo. You know, they were like, the world’s going to shit. Why would people buy watches and cars? Everybody’s gonna be stocking for weapons. I was like, that’s not how this works anymore. But here’s what happened. In 2020, watches went to mainstream and they went mainstream for really one key reason.

A lot of business owners, people think it’s the stimulus checks, it’s not. A lot of business owners invest their personal money in their businesses for inventory, uh, for buildings, for whatever it is. So a lot of business owners are technically wealthy, but they’re cash poor, so they can’t buy luxuries because they’re reinvesting their money.

So what happened during this pandemic was that a lot of loans went out to business owners and took away the qualifiers. They needed to usually get these loans, so they were able to free their personal money, which would’ve usually been spent on luxuries. Literally we’re able to use government money to fund their businesses.

So when you do that and you have an influx of four or 500 grand, all of a sudden, like in your business, you go, wait a minute. Now I, it’s not that I need to cheat this, I just need to take my money out and go have fun with my personal money now. And you’re stuck and you can’t travel. So where do you go spend money?

Cars and watches. So a lot of people ended up buying a lot of cars. The supply chain because cars weren’t coming in the country and the huge demand suddenly make car dealers and wash dealers make a ton of money. But something happened that day that I told people wouldn’t be reversed, and it was that once you taste money, it’s very unlikely that you go back and go, I’m satisfied with a Kia, or wearing my seco on my wrist.

Now knowing that I had a hundred K Rolex, I go, this is a contagious addiction. To status that is gonna keep going. ’cause you got a lot of people that don’t know what they’re doing, buying a lot of expensive things, and they’re gonna like what it feels like and they’re gonna want to keep it up. So what happened was exactly that in 2020, watches went mainstream and the ability and the demand exceeded supply so much, the prices shut up.

Prior to that. I’ve always told people one of the reasons that washes are so expensive and work so well is because the margins of upwards of 70%, 70 cents on the dollar. Per unit, sometimes it could be as easily or arbitrating, like I bought a watch and I sold it for a margin of 20, 30 cents instantly.

Sometimes you’re getting rare watches that have 50 70 cents, uh, on the dollar, which is very heavy. And, and the liquidity of watches and the speed, unlike real estate or car flipping or anything else, is that no paperwork trail. So it’s not like there’s a title to a watch similar that where the government’s gonna get involved and it becomes a very easy state of business with a very high demand product.

That’s continuously gaining more demand and, and resources and units are becoming more scarce. So it’s a recipe for a very good business that allows an asset that’s increasing in value, scarce in supply, and that’s continuously increasing in demand because more and more people are getting richer historically, every single year for the last four years.

So more people are participating, less units are on the market, and therefore more opportunities exist. This is why. Whenever people come into my community and say, Hey, isn’t this getting saturated? If you’re teaching like 25,000 people so far, are they gonna be like able to like buy watches? And I’m like, no.

They actually more money. ’cause there’s more watches and circulation. They’re trading significantly more volume. So it’s gonna keep going up and it has been going up nonstop. The speed of transaction and the liquidity of transaction is three days. So imagine if you could flip a property in 30 days with no paper trail, with no downside, and with a 20% margin, how many real estate wholesalers would jump ship?

Well, that is one of the key reasons we attract more real estate wholesalers to watch flipping than anything else. ’cause they understand liquidity, they understand speed, and they hate how that doesn’t work with real estate. But the better part of it is the reason people invest in real estate is because historically.

They believe that it can never be worth less. Even if it has periods where it loses value, it’s always gonna be worth more historically. But if we look at the dynamics of why, it’s because of supply and demand. There’s always a shortage of homes and there’s always going to be a shortage of homes in the key areas.

Like there are places people wanna live. They don’t wanna live in Idaho, they wanna live in Miami and la, and these places are always gonna be the hottest places. So there’s always gonna be a price increase. That’s exactly how to watch market works. So always scarcity, always more demand. Surprise is only gonna go up and it’s, your downside is always protected, assuming you know how to buy a watch.

So, uh, the, the watch cycle is, is a, it, it, it can be a little volatile, right? I mean, ’cause I remember last time crypto went way up. Uh. Like all the, you know, crypto bros buying watches and the, and prices kind of went up pretty high too and mm-hmm. Maybe that’s, but um, but then there was a crash.

Even we talking about rearing the pandemic when prices soared to like percent.

Yeah, yeah.

So, but let’s, let’s take a moment here. ’cause there’s a lot of confusion in a mass market about that, that had nothing to do with the pandemic and that has to do with something cyclically that has happened in the watch business. It’s called dealer manipulation. Dealers across the world saw there was a scarcity of supply and saw there was a significant increase in demand, and so they didn’t like help this by, you know, making sure they made the margin and moved on.

What they did is they removed all their inventory offline to make it seem like it was an even bigger shortage. Then started bringing back inventory, one at a time, causing prices to explode like two to 300%. This was never, especially in our community where we teach our students, we taught ’em to take advantage of this, but we warned them that these were dangerous manipulation techniques, so they needed to move through inventory very quickly to ensure they weren’t holding out the bag.

You know, like being the last guy to hold the watch and being like, it’s so high. But that is not a normal cycle. For watches, that is a manipulated cycle. No different than someone owning every property in your neighborhood that comes up like a private equity firm saying, I’m gonna buy everything and then raise prices and I’m the only one holding inventory you, you have no choice.

Right? So, so that’s basically what happened back then. But it’s not as volatile as you think historically. Historically it’s always gone up 10 to 15% year over year

in your, the way you teach success. Students like. Kind of what you were alluding to where, you know, you, you basically flip within, you know, days to weeks or

Of course, yeah.

Yeah. It’s, it’s not like a hold us for a year, you know, like the car thing.

Yes, that too. So we have both, even with the cars or the watches we we’re, the watches are wealth creation. So speed matters. You can certainly create income out of it. But it doesn’t mean people can’t play in the world of watches through the lens of actually holding an asset and allowing it to go up.

This watch used to be 190 grand, now it’s 230 grand. Three years later, someone who would’ve bought this two years ago would’ve made $40,000, which is decent. It’s like a little bit over 10%, you know, uh, like 10, 15%. It’s not bad. There’s no transaction fee, there’s no middleman. So it’s like a net 15. It’s good, but this is just a portion.

Of the strategy because you have to actually learn how to buy and sell it too. So otherwise, if you use the middleman like a dealer, you’re not gonna get the most of the money. Like even when you trade in a car, if you’re lazy and don’t wanna sell your own car, don’t believe you can because you think someone told you no one buys cars from people, which is untrue.

Then you typically go, I’m just gonna trade in my car, and you take lower value and you see the dealer made a hundred grand on your car on the backend, and you’re like, what the hell? Like. Why’d you make? He’s like, well, because I did what you weren’t willing to do. I know how to sell things and you don’t.

So we teach our students how, how to use both strategies to successfully grow a portfolio and let the strategy fuel itself, uh, as well as make investments in the long term if that’s what they want be at.

Interesting. Yeah. I’m just kind of curious a little bit on, you kind of mentioned, you know, not using a middleman.

So in, in some of these situations, are you just. Um, you know, how do you like in transactions with, I mean, obviously I, I have a pretty good sense that you could just put a car out there, you know, on a site and, you know, for sale by owner, but. What do you do in the watch space? Are you having people like build their own websites or like, generally speaking No, no, no.

Not

at all.

Yeah.

There, there are hundreds of platforms where you can buy and sell watches. There’s a platform named grail z.com. There is a platform like ebay.com. You can actually do that krono 20 four.com. These are all platforms where people sell watches, private or, or dealer based. The the, the key to this is also not just say I buy any watch, I buy any car, I sell any car.

People are not car dealers. They’re not watch dealers, meaning we’re we’re not trying to create people to compete with their local jewelry store and, and house 15, you know, Rolex or Mariners, and try to sell ’em and make $500 a pop. We teach people to strategically pick watches that enable them to have high margin, low volume, so when they’re trading from home.

When they’re buying a car, we, we don’t expect them to act like a dealer. They don’t have a dealer’s license, so we’re not telling them, get a dealer’s license, save some money on insurance. We’re teaching car people how to be collectors or owners and ultimately turn around and break even or make a profit on a car.

And we’re teaching watch people how to behave like a dealer with lower and less inventory. In many cases, buying the right watches that make them the right margin. If you’re a dealer, you’re buying any watch, as long as the price is right. If you’re a trader, you have limited capital. People that start with us often start with less than a thousand dollars access to a post office and access to a computer.

Like how simple is that? Right? Like you would say, well, probably everyone in your audience can play. The argument is not everyone in the audience will win because people will chase their own version of this, or they’ll go look for the Rolex to always wanted, they’ll make an excuse to buy it. Reality is our program is specifically designed to help people scale up in this world with backed by my 20 years of doing this and continuing to do this.

So I’m constantly looking at what’s happening and putting new content out for my members for free once they’ve actually joined the academy to help them navigate any changes in the industry, any changes to stay ahead of what jewelers are doing. But there’s always a reality that the people trading at home don’t have as much capital as jewelers and dealers.

They have to be more strategic about their approach and not just mass buying everything. Think about when Zillow was buying every home in every neighborhood. That didn’t work out so well for them, right? Like they, they’re just like, why did I buy all these homes? And they’re overpriced. But what about a strategic wholesaler, strategic retailer?

They were smart about which homes they were buying, why they were buying them. This is the same exact thing in the wash business.

So, um, PGA and your program, I think I would think that a, a big part of it is. You know, teaching people about what, what to buy and what not to buy because I mean, you know, not a lot of people know much about watches and they might be hearing this and going, that sounds like something interesting.

But all I know is I’ve heard that a Rolex or a a. Something like that is a nice watch. I wouldn’t know where to start. Mm-hmm. I mean, is is this?

Yeah. And most of our students didn’t know that either. When they started, they also understood what a Rolex was. They weren’t like dumb where they knew what that was, but they didn’t know the different models, et cetera.

I mean, we have lists of watches you buy at the beginning to make you comfortable and get you to process, but these things become an addiction once you participate. You know, a lot of times I always say when people have opinions of things they don’t participate in. Those are useless opinions because they’re not part of it, right?

Like, it’s like anything. If I have suddenly a big, uh, opinion about the, the yacht lifestyle or the cost of maintenance on yachts, and I’m not personally, you know, I’ve not owned 20 different yachts in my life, then I may not have an opinion about something that I don’t understand as well as a yacht owner who’s had multiple yachts over, you know, the last 10 years and has contacts and understands the real cost of things versus the.

Commercialized cost of things. Well, it’s the same thing in every industry. Like you have to get your feet wet somewhere. You have to get started. Once you participate in the trade, it’s much, much easier once you’re participating to start seeing which brands you like, which ones feel good to you, which ones you wanna learn more about.

But the But the math doesn’t change. So the beauty of this is once you understand the bath. You can duplicate it regardless of how much knowledge you have about the watch. And since the watches sell themselves, they’re not really reliant on someone’s sales experience or capacity to showcase their watch.

Buyers are buying their wants, they’re not buying their needs. And often buyers actually know more about their watch than I even know about it, because to me it’s just a dollar in a dollar up. But to that buyer, it’s like it’s their addiction, you know? They’re like, I know everything about this. This is the material he was made.

This is the urology. This was a year it was built. And I’m like. I don’t even care. You know, like it is like cars. When there’s guys that are coming to me and saying, oh, how many horsepower in this? I don’t know. Like, I don’t care. It’s like, this isn’t what it means.

It just looks cool and I know the numbers.

It’s cool. It’s really fast and I know exactly the dollar in and the dollar out and that’s all that matters.

Yeah. In terms of setting something up, I would think that like, because of the tax, uh, elements of trading, something like this, uh, that you’re probably kind of showing people how to. Set up LLCs and, and making yourself, making it a business.

If you’re, then you’re basically just paying regular right

after you do a couple of watches a month to get your feet wet and you know that this is for you. We have a full comprehensive program. It breaks everything from, you know, how to set up your LLC, how to file your taxes properly, how to make sure you maximize your deductions for this kind of business.

Things you need to set up ads. So we cover all of that. I mean, we’ve been, we are the only place that’s been teaching this for 20 years. And where do you. I wanna say over probably 70% of people on the internet that sell watches today have some way or another touch their academy, either as a student or as a participant, as a teacher, or some sort.

Interesting. Actually, is there anything other than cars and watches that we haven’t talked about that you

Course we, we teach handbags as well. We teach luxury travel. Anything around the expenditures that people. Stink of having out there, you know, like they, they’re spending their hard-earned money on something.

We teach ’em how to take that hard-earned money and convert it into an actual investment in themselves rather than losing their money, you know, and, and doing that. They can do that with travel. Many people know this idea of collecting points. Obviously there’s nothing Yeah,

yeah.

New about this, but there are very interesting behind the scenes strategies to spending these points that allow you to get 10 times more.

For your money, you know, like for the points you’re spending and, and without having to spend it. So you can certainly go way further with the same points. So these are just strategies where, again, wealth preservation, you have 2 million points. You could go on one trip by going to your Amex portal and buying something, or you can do it correctly and go on five trips.

Yeah. Yeah. Uh, for people who are really interested, one of the questions they may have is, okay, you had a guy making a million bucks a year doing this. Um, is he doing this full time? Or is this no part-time? No,

he was a, I, one of our top, uh, students used to be actually a real estate wholesaler. As I told you earlier.

They, they like love this transition for them, but because they have to put out so much money, lending, leverage and everything, only to wait two years to get paid basically on projects and stuff. Or they, they’re transaction and like 30, 40, 60 days if it’s wholesale. And unfortunately, like there’s a lot of that that goes to capital gains tax or it becomes income, et cetera.

But with watches it doesn’t work that way. So the, the beauty of that is even if you’re doing it at first part-time, maybe let’s say by year two you’re making a hundred KA year, this is part-time. Like at the beginning, it might take you like three to five hours a week to study up and try to get up with the program.

But over time it’s like a couple of text messages a day and you’re making like 5, 10, 15 grand. Sometimes. Some of my students tell me they made so much money doing a couple of trades that it feels criminal to them because they’re like, I don’t understand, like how. I’m able to make five to 10 grand with just two text messages, and somehow that’s like the way it is and I’m like, that’s how the addiction starts for people, you know, once they’re addicted to the, to, to this game, it becomes a very fun game because they have a lot of freedom.

They can do it from anywhere they want. You know, I, I’ve traded watches from the middle of an airplane on a flight, you know, where my clients text me and I’m like, Hey, lemme get you this. And then I have an assistant that can literally ship it the next day. So it’s a very easy and calming. Type of business.

That’s not intense in the way. Like people want you to work 80, 90 hours a week to hustle your way through it. It’s more about understanding it. Once you have the math and it starts ing in your head, everything kind of works its way out, you know?

Yeah, yeah. Absolutely. Super cool, man. Um, uh, where, where do people go to, to learn about the stuff?

Oh, it’s super easy. Learn from pga.com.

Fantastic. Thanks so much for being on the show again.

No, my pleasure, and I’m always available to answer questions anytime you guys want. Okay.

Great.

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Welcome back to the show everyone. Hope you enjoyed it. Again, just a different way to look at personal finance. Look at the, you know, luxury and stuff like that. It’s not that, you know, all luxury, uh, is a waste of money. Sometimes buying fancy stuff, nice stuff can actually be a good investment.

Try to think about that next time you’re going to buy something, because frankly, if you’re buying furniture from Ike, it’s guaranteed to go to zero. Um. Not everybody can afford the super expensive stuff, but some of you can I know and start thinking about what might hold its value and maybe don’t think about buying new.

That’s it for me. This week on Wealth Formula Podcast. This is Buck Joffrey signing off. If you wanna learn more, you can now get free access to our in-depth personal finance course featuring industry leaders like Tom Wheelwright and Ken McElroy. Visit well formula roadmap.com.