42: How to Invest in Something About Which You Know Nothing
Imagine investing in Budweiser or Coors at the end of Prohibition.
For that matter–imagine getting in on anything related to alcohol on the ground floor in 1933.
A lot of people made a lot of money–Joseph P. Kennedy for example. Kennedy massively amplified his wealth from commodities trading by acquiring distribution rights for Scotch Whisky after prohibition. The result–generational wealth for the Kennedy family.
The end of another prohibition is upon us now. Cannabis is legal in several states including California. I know there is resistance from the Trump administration on this and that Jeff Sessions is not turning a blind eye like the Obama administration.
But there is no stopping this thing now. As the French say, the eventual full legalization recreational marijuana use in the United States is a fait accompli. There is no turning back.
Now listen, I am making no moral judgment on pot. I’m not a pot guy myself and I don’t like the smell. Furthermore, potheads and people walking around with cannabis patches on their backpacks annoy me.
But… I do recognize a a movement that will become part of our new reality–sort of like distributed ledger technology (cryptocurrency).
There will be huge profits made and some serious pothead billionaires.
So when you see a movement like this, what do you do? How do you get involved? Well, in the case of distributed ledger technology, I knew some people who I know like and trust that made my crypto hobby very profitable.
But I don’t know very many people in the cannabis industry and like even fewer. The ones I know and like, I don’t really trust.
That’s the challenge with any kind of investment frankly. Listen, even in multifamily real estate–the mother of all no-brainer assets, you either need to know what you are doing or invest with someone who does.
So where do you start? Well, if you are reading this, you are already trying to educate yourself so you got that part down. The next step is continuing to build your tribe–the people who you know like and trust. That’s when the real magic starts.
For example, a friend of mine who is very smart with cryptocurrencies tipped me off to a recent initial coin offering in the crypto market. I invested 50K which skyrocketed in 3 months–at one point is was worth about $4 million. It came back to earth but it still resulted in a 10X profit for me.
You don’t have to be really smart. You just need to be around the people who are and ride their coat-tails. Final education plus the right tribe= Wealth.
That’s been my formula and it has worked well so far. Hopefully it will work for you as well.
P.S. If you are an accredited investor and you want to join my tribe, click this link and set up a phone call with me now: