Latest / Money Grows on Trees / #286 - The TRUTH About My $1,000,000 Alibaba Investment

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#286 - The TRUTH About My $1,000,000 Alibaba Investment · Money Grows on Trees

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I put a million dollars into Alibaba. This is the top of investing.
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The wealthiest people in the world. Bernard Arnault, Elon Musk, Warren Buffett, Jeff
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Bezos, Mark Zuckerberg. They own the biggest share of their companies. When
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you understand this, you realize that everyone else who's playing a different game in
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their investing and money intellect, they haven't graduated to this yet. When
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you're buying whole companies or pieces of whole companies, this
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is the top. And that's why I can position seven biggers into that one
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business. I'm Lloyd James Ross, seven-figure investor and entrepreneur, and
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I've helped thousands of business owners and professionals turn financial stress
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into success. If you're stuck in old money habits, overwhelmed by
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investing, or unsure where to start, this is for you. I'll
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give you the mindset and strategies to take control, grow
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your wealth, and achieve financial freedom. It's time to make
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your money work for you. I put a million dollars into
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Alibaba. Here's why. Now here's the
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thing, this particular episode, this is not financial advice. Please do
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not take this information and run out and buy a stock. Please do not
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buy it. It's not to do that. I'm just using this as an education tool
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or an education experience to educate you about business
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analytics. What makes a good business? Where do I deploy my money? Because if
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you've been listening to my podcast for a while lately, I've been smashing the
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property stuff. And you're probably wondering, wait, if Lloyd doesn't do gold, he doesn't
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do crypto, he doesn't do profit, where does he deploy money to build wealth?
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And I got to give you the answers to that. So it's in stocks, I've
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got a portfolio, and this is my circle of competence in identifying
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great businesses and buying them for prices less than they're worth. And I've
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modelled a lot of the things that I have learned through of course, Warren Buffett,
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Charlie Munger, and key value investors like Seth Klarman and Peter Lynch
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and Joel Greenblatt and all these wonderful investors who the actual system
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of value investing that Warren Buffett really learned from Ben Graham, I've really
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been a student of that for the last 20 years. And so that's the
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system I follow for wealth building because the wealthiest people in
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the world or do this. And so the investing
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process ought to be buying businesses for
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less than what you think they're worth. So this is not financial advice. It's
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not go do this and buy this. I'm using this as an example. But I need to have
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a compelling hook. Why would Lloyd deploy a million dollars into something?
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And there's obviously high conviction at that. So you have to have high conviction around
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what makes this business a high quality business. So I
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wanna take you through this and share with you some of the reasons why
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this makes so much sense to me. Okay, and you will see some
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examples of why how my brain works in terms of deploying capital
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to grow wealth. And of course, it's part of a portfolio. It's
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not the only position because diversification is still important, even
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if you're holding, you don't want to hold everything into one
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opportunity, right? Even though Alibaba has got multiple verticals, and
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multiple income streams in his business model, it's still nice to have some diversification.
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So I have a very concentrated portfolio. I don't hold tons of stocks. I've
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learned that from Charlie Munger. If you want to beat the market, then it's best to
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hold smaller, more high conviction positions if you can find them.
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I'm not going to go into the absolute details of the exact process I
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go through to do that. If you want to learn how to do that, that's different.
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But I'm going to showcase an example here. So let's take a look at
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it. Let's dive deep together. This is going to be fun. Now, if you don't
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know what Alibaba is, Alibaba is a leading AI
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tech and mainly commerce, online commerce company in
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China. It's different to Amazon. People say it's the Amazon of China. It's actually very different.
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Well, there's some similarities, of course, because they're both in commerce. They
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both have AI. They're both leading companies. But there are some differences we'll
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get to. But of course, it was coined and created by Jack Ma,
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very famous entrepreneur. And the chairman is Joe Tsai, and
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it's run by Eddie Wu, who's the current CEO. And of course, Alibaba
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has been dominant with its real key commerce businesses in
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Timor, Taobao. Taobao is really the beginnings of
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what built Alibaba. It owns Alipay, which is, by the way, the
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largest payments company in the world. It
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processes more payments than Visa. It processes more
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payments than MasterCard. It is the number one biggest
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payment processing company in the world by transaction volume.
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But the take rates are different. So it's not the most profitable, it doesn't the
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most revenue, but it's the biggest. That's important when you start to understand what
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makes Alibaba such an important business to the world. So it's got
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mainly e-commerce in Tmall and Taobao, the two big drivers of commerce. Then
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it's got its payments business in Alipay, which is part of Ant Financial, which
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it owns 30% of. And then, of course, it's got Chaonau. It's got its
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logistics company, how it sends products all around the world. It's got AliExpress, which
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is its international arm. You may have bought something from AliExpress, right? And
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it's got its cloud business, which is now starting to grow. In fact, last quarter, it
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grew at 25% annual growth rate, right? So it's starting to have the,
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it's got the leading cloud business in China. It commands a
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market, share in cloud of
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around 40% and it's also got, it actually commands a
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pretty high commerce, like in its Tmall and Taobao commerce
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division, it commands like around 40% of the
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entire China market. In fact, if
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you've bought a product off Amazon, highly likely it
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came from Alibaba. If you've bought a product almost anywhere,
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there's a very high chance it either came from Alibaba or one of
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the main competitors to Alibaba, Pinduoduo, which actually
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also owns Timu. So the concept to grasp here is
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that Alibaba is an ecosystem of wonderful businesses
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that are all tied together to keep you in the ecosystem. But only recently, through
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Ellamy and other fast retail platforms, they're now the
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leading fast retail platform in all of China for
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fast delivery in food. So if you think about it, if you go to China and you want
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to order a coffee, it's insane. You can YouTube this.
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They will send a drone with your coffee to wherever you are. It
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is gnarly. You have no idea how much more
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advanced it is than the United States. You have no idea how much more advanced it is than
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Australia. China is now the most advanced country in the world, period. Period.
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If you don't believe me, go YouTube some of the cool stuff that they are doing. So
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what I'm saying is that if you order a coffee or food or
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cake or ice cream, you can order ice cream anywhere in China, in
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the big cities in China, and a drone drops it at a drone step. Now,
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if you're doing that, Alibaba is the leader
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in the entirety of China at fast retail. See, check out how
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the ecosystem works. They drop you your coffee, bang, you're
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in the Alibaba ecosystem as a customer. Two, you've probably paid
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through Alipay. In fact, I went to Dan Murphy's in Australia the
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other day and had Alipay on there. So it commands not
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just Chinese commerce but it commands Southeast Asian
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commerce which is arguably the most populated area of
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the world and it's leading there. So chances are
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if you buy products around the world, come from Alibaba or through the vendors in
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China that have created the
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product through Alibaba's portals. But if you're buying a product there,
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they got you on fast retail, they've got you on buying and
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selling things like, you know, Taobao is like the biggest eBay in the world. They're gonna
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get you somewhere. Then they'll get you through Alipay. Then they'll get
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you through the logistics because they're actually delivering the product through their China logistics
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company. Then they're gonna keep you in there because they're gonna apply
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their AI models on you. And if you're a business enterprise, chances
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are, there's a 40% chance you're on their cloud enterprise. You're
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using their cloud storage and data centers and so forth. So it's
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like this flip a monopoly of China. So just to give you
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a picture, Alibaba is a complete ecosystem
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business, which is why Charlie Munger, before he
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died, I believe the numbers $170 million he
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put into it. And he loved the company, and he really
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bought companies. So back in 2021, he was
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buying Alibaba, then sadly, he passed away a year later. He often said
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it was a mistake. But everyone who's been following Charlie knows that it was just
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a mistake on price at the time, because after that, The
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price collapsed a fairly long way because Jack Ma said the wrong thing to
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the CCP and so forth, and it went through a real transition. But of course,
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every company goes through challenges. But if you've got a really good quality
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company, it will be able to navigate almost all challenges, really,
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unless there's a really serious black swan event. But that was a pretty serious event, and
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it absolutely navigated it. But now, it's
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also growing. So I started investing in 2021. If
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you look at my returns from when I started investing in Alibaba, I've
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made a 15% annual compounded return. So I've
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beat the market with one position. And
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so, and again, just to give you some context, because people ask me like,
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what's your returns? Are you any good at what you're doing? And by all accounts, no,
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we're near the best and I don't report to be there's people out there so much better. It's
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a big game. It's a fun game. But for example, our portfolio, which
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is a multiple million dollar portfolio, we're up to date, year to
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date, 35% year to date since January. And
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the S&P 500 is up 14% year to date. So I'm
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beating the market by a 20% margin, which is massive. It's about doing that consistently over
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time that dictates how good you are at this game. And
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do I think I can beat the index? Yes, that's why I pick individual stocks. But
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I'm not just picking them thinking they're going to go up. I'm buying pieces of
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businesses that I understand and want to own. And I've learned that through studying
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Warren Buffett. So Alibaba is this powerful business. And
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amongst it, before I get into the details of the microeconomics of the business,
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which is what I look at to determine how effective and healthy and
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high quality of businesses that I want to own. And we're going to go through some of those cool ratios
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to look at. Before I do that, I want to just help you understand China.
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Because I have friends of mine who are heavily invested in property, they do
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have some shares, and they ask me questions like when they know that I've
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got effectively millions of dollars invested in parts
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of China, they just freak out. They're just like, are
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you kidding me? The CCP can take, the Chinese Communist Party can
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take everything from, they're just so misguided. guided
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by China. They're just uneducated. And just to put
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into context, the first time I went to China was on a China legal trip
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when I was doing my law degree. And I went into the University of China in Shanghai, Beijing,
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other parts in 2006. So I've actually been going to China since
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2006. Okay, what's it now? Almost 20 years. So
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it's not like I don't know what it was like. And also I've done real estate deals in
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China. I've flown all around China to conventions. I know I've done business
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with Chinamen in China. And I've been going there. I've been there a handful
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of times in that timeframe. I'm not a stranger to it.
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I haven't been for a long time. And if you get onto YouTube and type in Chinese
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cities, you will be absolutely floored. Just
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the technologically advanced scale of
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these cities. Like I'm talking like, if you go to a city, it's just
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got randomly 50 million. Just nothing. That's nothing. Nothing. And
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it's super advanced. There's self-driving buses,
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cars, rail. It's clean. It's just the
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most advanced cities in the world. It's incredible. Go look. And
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there's like 50 million. They've got the biggest cities
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in the world at scale. Like there's multiple 50, 100 million
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dollar cities. Like it's huge. It's like Tokyo there. Then
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again, maybe it's not as Tokyo, but big. Like Shanghai
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and Beijing are big. They're some of the biggest cities in the world. but they're everywhere.
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So just let's look at the scale. There's over a billion people. I
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guess the numbers are like 1.2, 1.4 billion people in China. I'm
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not sure the exact details in China. Okay, now let's put, I
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wanna give you some macro numbers here just to help you understand the
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market and scale that Alibaba sits in. Okay,
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the addressable market. We wanna look at, we're looking at businesses. What's the total
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addressable market? The TAM it's called, of how they
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can do business. What's interesting about China is you
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don't get a lot of competition in some of the companies because
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they don't allow a lot of companies. Well, they do allow, like Google
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went there and got killed. Tesla's there and
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it's getting killed by BYD. So you can, Starbucks is
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in China and it's getting killed. So when Donald Trump says, oh, you don't
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let our businesses into China, they do, it's just they get killed there.
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So there's not as much rampant competition for some companies
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like Alibaba, which is a good thing. You wanna look for monopolies. In fact, when
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Alibaba went through its challenges in 2021, it was for anti-monopolistic behavior. So
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you wanna own monopolies if you can. Like if you look at
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Apple, Moody's, Coca-Cola, some
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of the companies that Warren Buffett owns, they're actually monopolies just about.
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So actually, you gotta look for monopolies. Just quickly, if you're ready to take control of
12:13
your finances, but feel stuck on where to start, I have a
12:16
solution. My book, Money Buys Happiness, simplifies investing
12:20
and wealth building with practical steps to help you achieve financial peace.
12:25
Get your copy via the link in the show notes and let's get your money working for
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you. Now back to the episode. Anyway, let's go through the macro setting.
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Let's look at China as a country, because it's easy to think in
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your mind, if you look back, oh, China's just
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full of like, I don't know, huts and
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people who live in dirt mound houses. They're
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farmers. They live in rice paddy. That's ridiculous.
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In the 80s, yes. But guess what? We don't live in the 80s. And what
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they've achieved in the last 45 years is nothing short of insanely, never
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had been done before in human history, what they've achieved, okay? They've gone from rice
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fields in 1980 to now being the leading country in
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the world technologically. Do you know how insane that is? In 45, it's insane. But
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it's been so insane that your mind still thinks it's rice patties. So
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when I say China, you think of like Mao's communist China,
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where people are dying from starvation. No! It's
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not that. anymore it's not don't believe me go youtube
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it okay have a look look yourself don't just be taken by
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the mainstream media's propaganda okay so
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let me put it like this china is
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the world's leading manufacturer and has been for the last 15 years
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okay right now they even control all of
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the rare earths and that's why trump did that tweet recently this week and
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caused a lot of problems in the crypto market okay a lot of people killed himself Because
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there's one tweet, because China owns the rare earths of
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the world. So without China delivering rare earths to America, they
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cannot develop defense systems. They cannot
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develop planes. They can't develop any defense. So in actual
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fact, if China really wanted to, they could cut off supply of those things to the United States. That's
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a strategic advantage. But looking at what else they have is,
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number one, leading manufacturer by 15 years. If anything is made,
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chances are like probably 80%, 90% of it is made in China. They
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own the global supply chain of the world. The second thing is they
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have 48,000 kilometers worth of brand new rail, soon to be 60,000. Like
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they're the world leading infrastructure builder. In fact, they just built
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the world's largest bridge. They did it in some crazy timeframe too.
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Like it was some gnarly, I don't know,
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I think it was like two years old. Like the biggest bridge in the world. It's amazing.
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They're the leading infrastructure developer. They also have 960 million
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people are urbanized. So it's
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moved everyone from the country to the cities. And the next few years, it's going to
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move another 5%. Another 5%? Or certainly it
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was minimum 3. That's 300 million! And the next few years,
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it's going to be 300 more million moving to cities. And you think about
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the middle class. They are becoming the largest middle class
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the world has ever seen. It's making the United States middle class look
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like a speck. No joke. It'll be three to four times
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the size of the American middle class as a consumer. Do
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you know how insane that is? So a company like Alibaba, of
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a $350 billion market cap, which it is, $350 billion market
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cap, Amazon's like almost $3 trillion. It's like over
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$2 trillion in market cap. So if you think about it, if Alibaba's marketplace,
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just in China, is going to be four times the size of
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the United States middle class, as they start to spend money there, I
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mean, it wouldn't be remiss to see Alibaba become one day in
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the future a $10 trillion company. So the market
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is a large addressable market. And Alibaba has
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sewn up the monopoly. And if you buy something in China, you're literally
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paying a toll to Alibaba in any respect. And
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that's the type of business that you want to own, okay? So huge, it's
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the leader in patents in the world. Number one, at new patents means
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it's creating all this cool stuff. Number two, it's got all the best talent. Don't
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believe me? Look at who the best mathematicians are in the United States. Chinese,
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look at best mathematicians, Chinese. China has
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all the best talent. They're smart. All they
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do is go to school, get private tutoring, work, work, work, work.
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How do you compete with that, right? Best talent. It's also got,
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what else? The stock market itself is about 11 times
16:28
earnings compared to very richly valued market in America. So
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if you look at the Buffett Indicator in the United States, it's
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a valuation principle that Warren Buffett uses called the Buffett Indicator. It's
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where you take the price of all the public companies in America, and
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they use the Russell 5000 Index to take the top 5000 publicly listed
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companies in North America, and they divide it by the annual GDP.
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That gives you a price to earnings ratio of the economy America
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roughly as an estimate back of fab packet estimate that's at 200% Market
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under valuation is like under 100% more like 70. It's
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a 200 the United States stock market is Overvalued
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the Chinese stock market 11 times earnings. It's actually undervalued So
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just looking at the trajectory of where it can go over the next few years is huge. Okay, and
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it's just got Intermountable amounts of consumers and people, okay?
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Now, what's working against it? Demographics. The
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birth rate's not high enough to replace, you're gonna have a deceleration of birth rate,
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but guess what? Same as Australia, same
17:28
as Canada, it's not unusual. Japan, same thing, okay? That
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doesn't mean the end of the civilization there, it just means a little bit more challenging,
17:36
all right? But they're likely to fix it through robotics, because robotics
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are like, they're a world leader in robotics, okay? So
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let me just phrase it like this. largest addressable market, most
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technologically advanced country in the world,
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commands and owns railroads and manufacturing, it is without
17:56
doubt, probably already the world leading superpower.
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It doesn't yet have the biggest stock market, it doesn't yet have the biggest consumers, but
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it will. So you gotta look, Wayne Gretzky used to say,
18:06
you gotta skate where the puck's going to be, not where the puck is
18:10
in hockey, right? Wayne Gretzky was like one of the greatest, they called him the
18:14
greatest. Oh, they called him The Great One. That's what his nickname
18:17
is, The Great One. He's like royalty in Canada. So
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you look at Wayne Gretzky, he would say, skate where the puck's going to
18:24
be, not where it is. So if you look at investing, where are the most incredible
18:28
companies and opportunities going to come from in the future? Certainly
18:32
in the United States, yes. That will not change. Because the United States is also
18:35
a current running superpower that's hard to beat. But China
18:39
is going to be where the best companies are. That's why Charlie Munger said, in investing,
18:43
fish where the fish are. So if you go fishing and you're fishing with
18:46
no fish on, you're not going to catch one. But if you go to China, pan for pan,
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and he said this, he just realized that you get more
18:52
bang for your buck in the quality of the companies in China for the prices they're
18:56
selling at than anywhere else. That's all. So that hopefully
19:00
gives you a bit of a picture of the macro. Now getting to the micro. What
19:03
makes Alibaba interesting is it's
19:06
got multiple business centers. So it's got commerce, which
19:10
is growing at about 10% from the last quarterly report in Taobao and Tmall. It's
19:14
got cloud. Now, if you look at Amazon's growth in cloud and Google's
19:17
growth in cloud, massive. That's where the future growth engine of the company lies.
19:21
It's growing at 30% per annum just now. However, so
19:24
there's cloud, commerce, payments, as I said earlier, and logistics and
19:28
international arms. It's got multiple income streams. in
19:31
big ways, and they're market leaders in all of those. All
19:35
of those. It's now leading in fast retail. It's
19:38
dominating, like it's dominant, and it's not
19:41
holding back. However, it's also got the world's leading
19:46
AI model in Quen. Yes, world's
19:50
leading AMR, but it's also full stack in its own right. It
19:54
doesn't control chips yet, but recently it did a deal with NVIDIA to start collaborating and
19:57
developing its own chips. So once that happens, it's gonna have a full stack hardware
20:01
systems and applications, which means it's got a full stack AI
20:05
system. The only other company that has that is Google, but Google is not
20:08
competing with Alibaba in China. So basically what's
20:12
going to happen is all enterprises in China, not all, but a large majority of enterprises in
20:15
China are going to be using Alicloud, which means they're going to be using Alibaba
20:19
AI. And Alibaba AI is on track to begin and
20:22
win the AGI race. And Eddie Wu mentioned at a conference recently, they're
20:26
the world leader in AI, period. Eric Schmidt, who's like the former
20:29
CEO of Google even said, AI is not going to beat us in
20:32
the United States, AI in China, China's already beating us. So
20:36
I'm not even going to debate it. So if you think about the application of
20:40
the AI on their commerce business, on their ads, because Alibaba
20:44
makes a ton of money from ads and merchant fees. So
20:47
they actually don't make, they don't store products. They charge merchants fees
20:50
to be on their platform. So think of them as the largest online retailer
20:55
where people come and pay fees to be on there to sell their stuff. And
20:58
it can advertise to customers for
21:01
the merchants and the merchants pay them for the advertising too. So it's actually a
21:05
very capital light model. And you think of all the other things it
21:08
does, it means it's got a monopoly in almost every area. Does that
21:11
make sense? So if you look at it, market cap of 330 billion is making
21:14
about 20 billion in net income. So it's still undervalued. It's selling for like 15 to
21:19
17 times forward earnings. It's not expensive. The same company in
21:22
North America will be selling for 30 to 35 times earnings. So it's actually
21:26
selling for half the price of its equivalent in America for
21:29
no reason that people are afraid of the CCP. But if you think about it,
21:33
if you go there, the citizens live better than the United States. It's
21:37
like, oh, the government can do things. The government can do anything they want in America, too. Look
21:40
what they're doing. They don't even care. It's the same. It's
21:43
just irrational fear, right? Do you think China is
21:47
just going to shut down its most profitable and effective company? It's
21:50
the most important thing to the economy. In fact, what the CCP realizes, they're
21:54
like, uh-oh, we have to take our foot off Jack Ma's neck, because if we kill Alibaba,
21:57
we're going to kill our country, because all the commerce flows through the company. It's
22:01
not going to just shut it. This is ridiculous. It's not going to delist it either. Because if
22:04
they do that, all the companies from America are going to move from
22:07
the American Stock Exchange to the Hong Kong Stock Exchange. And you can buy Alibaba
22:11
on the Hong Kong Exchange. It's already there. So this whole delisting fear is
22:14
made up. But it's creating a lot of uncertainty. That's why it's cheaper. So
22:18
you can buy this company in China for like half the price of what it should
22:21
be. Then we go above it. It's moving its return on equity up
22:24
to 20%. So it's good at reinvesting its earnings into future growth. When
22:30
Ant financial lists, it owns 30% of that company. It's
22:34
got $80 billion of cash. Probably more like $60 billion of
22:38
cash now, right? And it's only got $35 billion in debt, which means it's got net
22:41
cash on its balance sheet, which means it can't dock. It's
22:45
got the ability to just last and endure. It's not
22:48
carrying a lot of debt. It's buying back its shares. It's got wonderful leadership.
22:52
Joe Tsai, who's the chairman, bought $150 million of
22:55
stock himself. Jack Ma put another $50 million, and Jack Ma's back,
22:59
silently leading the company as well, now because
23:02
of AI. It's got a wonderful leadership team. They're
23:06
doing great deals. They're just embedding and entrenching themselves in
23:09
the economy more and more. They're winning. And they've staved off competition from
23:12
Pinduoduo. In fact, they're killing Meitan in
23:16
the fast retail market. They're actually just dominating right
23:19
now. And I just think it's the beginning. So I would anticipate that
23:24
over the next few years, it could reach a market cap certainly of
23:27
$2 to $4 trillion. I mean, it just looks like it's going to. But
23:31
long term, what you want to do is you want to buy businesses that
23:34
you never have to sell. And so there's only a few reasons to sell a stock
23:37
is if it's egregiously overvalued, something's changed in its business model, or
23:41
you found a better opportunity. And I just don't see any better opportunities right now
23:44
than A, in China, for price, value. And I
23:47
don't see any better companies doing what Alibaba is doing in all
23:50
of its things. AI leadership, cloud leadership, commerce
23:54
leadership, payments leadership, blah, blah, blah.
23:57
It's just leader, leader, leader. It's just, I mean, how do you compete with that? And
24:01
that's what you're looking for, right? If you look at the microeconomics, the
24:04
company's undervalued, producing free cash flow at
24:07
a great rate, investing in the right things, good leadership, buying back shares
24:11
when they're undervalued, which it has been doing, and it's also reinvesting its
24:14
earnings at a right rate. It's also, it's shareholder
24:18
friendly. I mean, it's just, it all checks out and it's got net cash. Which
24:21
is why it's David Tepper's number one position. He runs a multiple billion dollar
24:25
portfolios. In fact, he's the leading hedge fund Manager
24:28
this year amongst all the pros. Yes, even beating Warren Buffett at
24:33
33% and your return his number one position is Alibaba So
24:38
look, I hope that makes sense from a micro standpoint But if you
24:41
add that to the macro setting that it's in with it, so if I look
24:45
at it China's gonna win China's winning Alibaba
24:50
is, within China, already winning. It's going to win. So we have win upon
24:54
win, and it's selling for a very compelling price,
24:57
where the microeconomics of the business make a lot of sense. So
25:01
if I look at it from that perspective, that's why there's so much conviction. That's
25:04
why I can position seven figures into that one business. Because
25:08
I want to own the business, not the stock, the business. If
25:11
you pick good businesses like that, they've got a long growth runway, monopolistic positions,
25:16
good leadership, in a big, large, addressable market. The
25:19
time when you should sell should almost be never. And Phil Fisher said that. He said, if
25:23
you do your homework correctly and you buy the right business correctly, you should
25:26
really never have to sell unless you've made a mistake. So I anticipate, because
25:30
people say, well, when are you going to hold? I said, realistically, like, unless
25:33
it gets egregiously overvalued, in which case you'll probably only sell half, I don't
25:37
see why I'd have to sell that for the next 30 years. And this is why people say, Lloyd, why
25:40
don't you buy Bitcoin or this or that? Because if you position
25:44
your capital into a company like Alibaba, You can 100x
25:47
your money very safely, very effectively for a long period of time without any
25:50
effort. Plus, it pays a dividend. We got
25:53
paid a dividend in June. It paid for our entire trip in Thailand for
25:57
a month. So I'm also getting free cash flow from myself to buy things. And
26:00
it's going up. So when you understand this, you realize
26:04
that everyone else who's playing a different game is just not as, in
26:07
their investing and money intellect, they haven't graduated to this yet. This
26:11
is the top. This is the top. When you're buying whole
26:14
companies or pieces of whole companies, this is the top. This
26:18
is the top of investing. And how do I know that? Because if
26:21
you go and look at the wealthiest people in the world, Bernard Arnault, Elon
26:24
Musk, Warren Buffett, Jeff Bezos, Mark Zuckerberg, and
26:28
I could go on. They own the biggest share of their companies. You can
26:31
buy Facebook like Mark. You can buy Amazon like Jeff. They are all
26:34
the wealthiest people in the world. I'm not even going to debate this. Do you understand? This
26:38
is the game. This is the game. Everything
26:42
else is just amateur. Oh, what's gold doing?
26:45
Who gives a, who care? They don't care. They're
26:49
playing big boy games in the big boy sandpit. And
26:52
girls, there's Cathy Woods up there, she's doing things like that. Not that I'm a big fan
26:56
of hers, but they're playing big people games,
27:00
to be politically correct. And most people are like, are you doing the
27:03
crypto market and the gold market? No one cares. It's
27:06
just a, it's a lame game. It is. It
27:10
takes no intellect. It's a trading game. It's for degenerates.
27:16
We're trying to identify great companies that are good for the
27:19
world, that are positioned monopolistic, that you can buy a
27:22
piece of and compound your money safely and effectively for a
27:26
long period of time better than any other method. How do I know that? The evidence is there. The
27:30
evidence is there. And I only model
27:33
behaviors off the best people. So I've modeled what Warren Buffett's done. He's been one of
27:37
the wealthiest guys in the world for the longest period of time. So why would you model anything
27:40
else than what they do? You see what I'm saying? So this is why
27:43
I like to beat up all the other ways, because this just
27:47
seems the most pure way of building wealth and growing wealth.
27:51
So I hope that makes sense. And I hope the hook worked. You're like,
27:54
what? He bought a million dollars and went, yes. But you have to understand the
27:58
science behind it. It's not that. It's methodically
28:03
understood to be, I want to own a piece of this business for a long period of time. And
28:06
this is how you build wealth. You can get passive income doing that, you
28:09
can build wealth doing that, and you can do it in a way that's actually safer than
28:12
what you think. Because here's how I look at it. For me
28:16
to lose that, the entirety of Alibaba would have to fall away
28:19
and die. If that happens, bye bye Amazon. How do
28:22
I know? Because almost all the products you buy on Amazon have come from China.
28:28
Now you're getting a bit of a picture of what it looks like in my head. So does that make sense? Even
28:32
if it doesn't, please come and fight me in the comments about what
28:35
I'm talking about or some encouragements fine too. And certainly if you have a question
28:38
about what I spoke about in this episode, pop it in the comments below, okay? I
28:42
hope you've enjoyed part of the process of unpacking this cool
28:46
topic of what it is. And again, please, please, please do
28:49
not go out and rush out and buy this. This is for education purposes only to help
28:52
you understand how I personally like to combine wealth and how I
28:56
look at things, how I approach things, and how there's a science behind the
28:59
process. All right, so I hope it makes sense. Again, if you want to slam
29:02
in the comments, I'll see you there. I'll come and reply to all of them myself, and I'll come
29:05
and I'll check out what you're going to leave there. If you've enjoyed this, share it with a friend. Hit
29:09
the subscribe button if you want to see more. And if this is something you want to see more of,
29:12
please also leave it in the comments and say, yes, I'd love you to do another one and another one
29:15
and another one because I can do this forever. It's something where I want to
29:18
do more of this as a series so I can always pivot
29:22
between properties way over there and
29:26
what can we go on by. I hope that makes sense and I'll see you in the next
29:29
episode. Thanks for listening to Money Grows on Trees. If you enjoyed the
29:32
episode, leave a five-star review on Apple Podcasts and Spotify and
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subscribe to us on YouTube so you never miss an episode. And
29:39
if you're serious about building wealth, make sure to check out the links in the show
29:42
notes and follow me on all social media platforms, at