Hey wealth builders! Today's episode is all about cash flow versus net worth. It's a question many people have asked themselves, and in today's episode, we unravel this and discuss why cash flow is important for one thinking of diversifying into different portfolios, and forex automation and also dive into the game of investing as well as how to use assets as a cash cow to put more money into your business. So, if you want to know more about these please join us for this episode!
Let’s dive in!
Topics Discussed and Key Points:
Timestamps
[01:19] Introduction to the topic of today
[01:45] Why cash flow is more important than the valuation of a company
[04:24] FCX and when it went bankrupt
[06:40] Why do we get so much caught in the big numbers and not net worth?
[07:13] Diversification of different portfolios
[10:04] Depreciation in real estate
[10:34] Why investing is great
[14:09] Investing plan by 2023
Notable Quotes
[00:01:45] “The cash flow is way more important than the valuation of a company or, you know, how big the company is and why that's important. Is that all that really matters is cash flow.” [00:01:59]
[00:02:00] “I've met so many people, clients, you know, partners, associates, you know, friends, everybody, not everybody, but a lot of people that have an eight-figure business, maybe even a nine-figure business. But their profit margins, you know, are half a per cent, 1%, especially in construction.” [00:02:20]
[00:06:21] “You have a billion, you know, door worth of doors, you know, but that doesn't make him a billionaire. Like who? Who cares if you control a billion, right? That's how much money you're worth. If you sold all of that, how much would you be worth? Maybe 100 or 100 mils. Maybe 200 mils. So, we get so caught up in the big numbers and net worth. But how much is your cash flow and how much do you get?” [00:06:49]
[00:09:00] “In the grand scheme of things, diversification is key. You know you don't want every egg into real estate. You know you don't want every egg into crypto.” [00:09:15]
[00:10:45] “You also need to know what type of game you're wanting to play. You know, are you just looking for equity? Are you just looking for cash flow? Are you trying to double what percentage, you know, are you looking to take out some profits from one to another? So, understanding the game of investing as a whole is, you know, the key and the foundation.” [00:11:04]
[00:14:28] “A great strategy right there is, you know, getting that dollar. To use one, two, three or four times over. But cash flow is important. Cash flow is important.” [00:14:40]
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