My Reaction to Jeff Rose | Phil Town

Hey guys, I'm Phil Town from Real One Investment and today we're doing another

reaction

video and this time it's about rich hacker Jeff Rose, so every once in a while I'll do a

reaction

video from a fellow financier or investor. youtuber and today we are going to take a look at Jeff Rose Jeff is a financial advisor and his channel focuses on generating passive income and other financial education topics. In fact, he made his own reaction to a video of mine a few years ago, so I thought it was time to return the favor, so today we're going to watch a short video he recently released where he talks about one of the best ways to educate yourself when It's about any type of investment, but in this case it's talking about cryptocurrencies, so let's get in here, how much of your portfolio do you have in bitcoins?

And the answers were all over the place, there were people who said they had 50, there were people who said they had less than 2 percent and everywhere in between, and I asked. this on a few of my different social media channels and I remember one response in particular saying that they were waiting, they were waiting to see how this whole cryptocurrency thing would play out, which I mean, I understand to a certain extent, but how much? How long are you going to wait? And this is not a commercial or a complement for cryptocurrencies. What this is for is the willingness to take some risk, the willingness to try something new because you don't know what it's like. it's going to happen and you can't really make money you can't build wealth if you're not willing to take some risk and this is something that I've experienced basically my entire life and this is not just about investing but also with my business so it's an interesting concept, right, that Jeff is saying that you can't build wealth if you're not willing to take some risk and you know there's a lot of things that can happen in the words some risk and just the fact.

Jeff leading us to consider taking some risk in a cryptocurrency makes me think that he is a little more on the speculative side than I am now, there is nothing wrong with that, especially if you recognize that you are going to take risks, yes You're going to Las Vegas and you're going to jump into a new game that some people are winning and you're acknowledging that you really don't know what the rules of the game are, you really have no idea. As for where all of this could go, you just know that other people have gotten into the game before and made a lot of money, so on that basis you think you're going to take a risk that's really different from the kind of risk I want to take as an investor. , even as a trader, it is very different.

I don't like taking risks where I have no advantage. This is a classic concept for people who play well and that is that they don't play when they don't have any. advantage what an advantage is is at some point in the game when the odds are in your favor for one reason or another, maybe in simple poker it's simply because you've read this guy like you're James Bond and now you know it. They are telegraphing that they are bluffing, so that gives you an advantage, it does not guarantee that you are going to win well, also you always have the cards, you always have to roll the dice, but now you have an advantage or let's say you are betting on racehorses, you study racehorses deeply and you understand that certain jockeys and certain horses are better at certain tracks and that, and you find horses where the odds are not bet properly because the amateurs are By setting the odds, you have an advantage, so they are run risks when you have an edge and then there's just the coin tossing game, where you really have no idea about the edge in this particular case, so I always want an edge, even when I'm trading. and when I'm investing, I mean, I don't call this, I don't think you should take risks with investments, I mean, obviously, you're in the real world, so there's always some risk, but effectively, a good investment is the one where I know the value of a thing is ten dollars and I'm buying it out of fear of the market for five dollars and that's basically my entire career, so I know I can invest with extremely low risk, lower than the one you're at assuming when you just buy the whole market with a mutual fund, but I think what Jeff is talking about here is on another level, so let's continue and the point I want to talk about with this video is the willingness to try some things. whether it's cryptocurrency or investing in options, maybe it's just buying Tesla stock because the reality is that if you're sitting on the sidelines waiting for the right opportunity, you're likely to wait too long and miss out, and here's the beauty of this right now because this is a situation where we are in a world with technology where you can try new things without breaking the bank.

I don't really agree with that, obviously, and I think I can prove that that's not true, in fact. Our investment strategy is precisely to do what Jeff says you can't do and that is sit on the sidelines and just wait, in fact if you think about other things where people are successful at something that is difficult, I'm thinking, for example, in fishing. maybe you have to be patient you have to have enormous patience you have to understand what the fish is what they eat today you know where they are how cold the water is you have to understand all this and you have to be very, very patient when you are hunting For example, you have to be very, very patient, the right animal doesn't just come trotting down the street every day, and by the way, I can prove that that's the case with the stock market.

Lack of patience is what makes all these brilliant minds out there, you know, the Harvard Business School graduates who work at Goldman Sachs not outperform the market, it's precisely because their job requires that they can't be patients, they pay them a pension. funds to go in and make something happen every day and if you can't wait and be patient then you are missing out on the only fundamental advantage you have as an amateur investor over all these professionals who are forced to invest. every day, as part of your job, you're an amateur, you don't have to invest anything, you can just sit there and, as Warren Buffett puts it, I love it, he says, like when you're a fund manager, you have everything.

Those people in the stands yelling at you to swing, butt, I'm not paying you to sit there with the bat on your shoulder, whereas when you're a fan there's no one in the stands to say anything and you can sit there with a bat on your shoulder. the shoulder. shoulder all day until you get that fat tone that lets you knock one out of the park so boy, I'll tell you what Jeff and I, Jeff and I have a pretty major disagreement on this one, the fact that you can't open. an investment account with weibull or robinhood with your smartphone and buy a fractional share of tesla stock or facebook stock or any stock or start trading options in a matter of minutes, all with your smartphone, obviously, that also exists some danger, but if We're just testing and investing a small amount of money in Bitcoin in some kind of tech stock just so you can get familiar and better understand how it works, because the one thing that won't happen and I guarantee it won't happen.

Learn by sitting on the sidelines, you won't learn, by following the bitcoin hashtag on Twitter, yes, you will learn a little, but the reality is that you have to put in the effort and the easiest way to do that is to open an investment account. with any of these places it could be block five, which I have talked about in previous videos. Well, when Jeff talks about having a better understanding of what's happening out there, I wonder what he means by a better understanding that he can rise. that you know you could make a roulette wheel come up red five times in a row is that the better you understand what he's talking about, that a cryptocurrency is going to go up or that, or he's talking about buying bitcoins, somehow you learned something about that you allowed you to value it in some rational way and I don't know if you do it right, I mean, I think of other things that have no intrinsic value because bitcoin has no intrinsic value, that intrinsic value means that it has a value based on what it produces in terms of dollars Intrinsic value means that when you buy an apartment, let's say you buy a

town

house and you rent it out, the

town

house has an intrinsic value based on what your net rental income would be because someone is going to pay you for that, surely there is a value there, so if you're earning, let's say you're renting a house and you're earning 50,000 a year, I mean, someone would come and offer you ten thousand. dollars for that, would you accept it?

I mean, as long as the house is in good condition and you don't have any problems with the tenants, why in the world would you accept ten thousand dollars? Nobody would do that. You'd have to be stupid to do that, so there's real intrinsic value in that rental house. I don't know what it is exactly. It could be 300,000, it could be 500,000, something like that would be the bare minimum you'd be willing to do. sell that constant regular income of 50,000, the problem is with bitcoin and cryptocurrencies, they don't have any of that, they're more like a picasso, okay, so this you know,

jeff

could be saying, hey, what you want to do is what you want.

Come in and buy a small portion of a Picasso so you can learn about Picassos. Well, what are you going to learn? I mean, what are you going to learn? You will learn that they have increased over time. Yes. They have kept up with inflation quite well. I guess if you study it enough you'll discover that putting your money in a Picasso is much less effective than putting your money in the stock market and just diversifying. I think Picasso is made like sixteen hundred to one in the last two hundred years, okay art in general, good quality art versus a million to one with the stock market, so I mean, but you don't have to buy something to realize I don't know, man, the only place I'm connecting with Jeff on this is that when you start investing, sometimes it's really scary, even after you've done all the work, it's really scary, but Jeff he's suggesting there's no work to do, just go in and buy it when we buy practice stocks, we think in terms of doing the work and then going in there and just taking that leap, taking that leap, as

jeff

says, very small amount of money and that's more like putting your toe in the water on something where you can study it you can come up with its intrinsic value you can get bargains you can have a high degree of certainty which is definitely not the case with this, okay?

Let's see if we can agree on something here: put a small amount of money in bitcoins into some kind of tech stock just so you can get familiar and better understand how it works, because the one thing that won't happen and I guarantee you won't learn if you you are left out, you will not learn by following the bitcoin hashtag on Twitter, yes, you will learn a little, but the reality is that you have to make an effort and do it in the simplest way. is to open an investment account at any of these places, it could be block five, which I talked about in previous videos, it could be coinbase, I mentioned robinhood weeble m1 Finance, there are all these different teams that you can start investing in that don't It doesn't take a lot of money and that's how you learn and every time you start doing this, when you start trying some things, you dabble and you don't invest a lot of money into what you end up having are these unintended consequences that are good.

Because what I've learned in my investing and entrepreneurship journey is that until you start down the path, there are so many different things that you don't know exist until you start. Imagine going on any trip if you've been on a road trip. Before, maybe you've been on a hike and you don't know what's out there until you start, maybe you're on a hike and you didn't know there was a beautiful waterfall that was a few miles into the woods, but you didn't know it was there until that you started that journey, so I'm going to end it right there, but I think this is a good video and I think I can agree with the last part of what Jeff It's about going on the journey is a very important thing, whether it's that you know that you want to take the journey by buying Bitcoin or Dogecoin or if you know a portion of Tesla or something else that you know nothing about.

About um, I think the point you're making is valid is that it will take you somewhere unexpected and you will have unintended consequences. I like that term here and I think it's very true and for that reason I think generally about your life. taking the road less traveled looking for those unintended consequences looking for those unexpected experiences is a fabulous way to have a unique view of the world and a great education and if what you get from it is an education that says oh yeah, I bought uh bitcoin I bought a little bit of bitcoin in uh you know what turned out to be about fifty thousand dollars per coin and now it's twenty thousand dollars per coin and I learned how volatile this can be and how scary it would be to have money.

I would depend on it to feed my family on something like this and also by the time you own some bitcoin you might start to find out oh that governments are starting to force places like coinbase to hand over their investor lists and the irs is going after atpeople and you could be on a government short list if you are involved in any of these kind of revolutionary currencies that are trying to exclude government currencies, so there are a lot of things you can learn and some of which could be a painful lesson , but in any case they will take you on the path towards an education to be an investor.

I think ultimately that's where we all want to end up, we want to be investors and what we understand by that term is that we're buying things that we know we're going to make money from and, heck, we'll be patient as long as we have to. I got there, so I really appreciate Jeff. I think everyone is getting a lot of benefit from what he's saying here and if it sounds like fun to jump in and do what he says, then do it and remember what he's doing. saying it's high risk, you don't know what you're doing, you can do it and I don't know if anyone else does either with these ideas, but it could lead you down the path of becoming a better investor one day, so guys, now I'd love to hear from you, what do you think of Jeff's ideas?

Do you agree that the best way to learn is to have some involvement in the game? Leave a comment below with his response and I'll be sure to follow up. Thanks for watching now, go play if you enjoyed this video and think it was valuable in teaching you more about how to start your first investment, hit the like button and share this video with your friends if you want more investing content, subscribe to my channel and Don't forget to click the button on the screen to receive a free gift. Thanks for watching them.