The secret of the super-rich is they possess a superpower that the middle class doesn’t: they have super immunity. They are immune to almost every weakness and threat the middle class is vulnerable to, preventing them from escaping economic mediocrity.
Recession, inflation, unemployment, market volatility – none of that affects the super-rich. And contrary to popular misconceptions, the super-rich weren’t born with this super immunity. They acquired it through their efforts, which is good news for everyone. Anybody can acquire the superpowers of the super-rich by following a few simple steps.
Step 1 – Ignore The Herd.
Don’t follow the herd. The crowds don’t make rational investment decisions based on economic principles. Instead, they invest based on emotions. A whole field of psychology is dedicated to how investors make irrational investment decisions because of behavioral biases and emotional tendencies.
The problem with following the herd is that the herd often makes us do things we normally wouldn’t do on our own. But, because we don’t want to stand out because we have a fear of missing out, we go along with the crowd – even if it’s to our detriment.
“One dog may bark at you, but it’s more likely that a pack will attack you.” -Dr. Wendy James, “The Psychology of Mob Mentality and Violence.”
“We so desire to blend in, acclimate to society, and be a part of the herd that we will do almost anything to avoid standing out in a crowd. Failure to separate yourself from the herd is why most people never achieve success. The herd stops them in their tracks.” -Thomas C. Corley from his book “Change Your Habits, Change Your Life.”
Following the herd and chasing shiny objects is not the path to riches. It’s the path to financial instability and ruin. Those who chased dot-coms in the early 00s, mortgage-backed securities before the Financial Crisis of 2008, and most recently, meme stocks and cryptocurrency can all attest to the financial devastation that can result from following the crowds. The super-rich do not follow the herd for this very reason.
Step 2 – Leave Emotions At The Door.
The super-rich leaves all emotions out of their investment decisions. They ignore all the hype and frenzy by cable talking heads, the internet, and social media. They know that investing with emotions can cloud focus and cover up red flags. Instead of basing their investment decisions on emotions, they base their decisions on sound economic fundamentals. They look at the data, crunch the numbers, and judge the character of those involved in their investments. Focusing on fundamentals shields them from being influenced by the societal biases and influences average investors are susceptible to.
Step 3 – Don’t Be Afraid To Take Chances.
The super-rich know that what the middle class is doing isn’t working. Most are unprepared for retirement, but Wall Street indoctrination is so deep-rooted that many fear trying something else. This alternative might help them achieve the financial freedom they seek, but that is impossible with their current investment strategy.
The super-rich once took a chance – a leap of faith – to go against tradition and all the indoctrination ingrained in them by the education system, corporate America, and family and institutions about how they should invest for retirement. They took all that and threw it out the window. They knew they wouldn’t get rich playing everyone else’s timing game. Buying a stock and hoping someone down the line would pay more for it is not the path to wealth. It’s the path to financial purgatory, where achieving financial independence is a pipe dream. The super-rich stepped out of their comfort zones in search of alternatives to traditional investments to achieve wealth and financial independence.
“Physical, psychological, and emotional comfort is the primary goal of the middle-class mindset. World-class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating.” –Steven Siebold.
Step 4 – Seek Out Cash-Flowing Alternatives.
The super-rich allocates heavily to private alternative assets, such as private equity and real assets, for specific benefits ideal for creating, growing, and preserving wealth.
These benefits include:
- Passive Income.
- Appreciation.
- Intrinsic Value from a Tangible Asset.
- Insulation from Market Volatility and Recession.
- Hedge Against Inflation.
- Tax Benefits.
Passive income is the key to wealth. By reinvesting it and creating additional income streams, you can compound wealth quickly and buy back your time to retire on your terms.
The secret of the super-rich is that they have super immunity from the economic stressors that affect the middle class.
By allocating to cash-flowing private investments that are uncorrelated to the public markets, the super-rich is insulated from recession, have a hedge against inflation, and are immune to the repercussions of job loss and reductions in income. None of this was given to them, however. It was earned through the courage to step out of their comfort zone to seek alternative assets that bucked tradition and the herd.
The good news is that anybody can gain the same powers as the super-rich. You have to be willing to take the steps required to obtain them.
Kyle Jones is a co-founder and Key Principal of TruePoint Capital, LLC. Kyle is responsible for the company’s strategic planning, investment decisions, asset management, and overseeing all aspects of the company’s financial activities, operations, and investor relations.
Kyle obtained a Bachelor of Science degree from Texas State University – San Marcos, where he also played Division 1 Baseball.
