Latest / Money Grows on Trees / #230 - Reacting To TikTok Finance Bros

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#230 - Reacting To TikTok Finance Bros · Money Grows on Trees

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  He's now given investing advice. There's a recession and more
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  likely a depression. I don't think there's gonna be a depression but
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  certainly a recession in five years time as AI actually
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  gets to take over. AI will enhance and amplify currently
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  great businesses. It's not like AI is gonna be this savior. You're
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  You're gonna live on less than you make. And then you're gonna save some money.
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  You know how rich people get rich? They save money. It's
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  There's a new system. Imagine having a financial strategy where stars have
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  to align. 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
• 0:46
  investing or unsure where to start, this is for you. I'll
• 0:49
  give you the mindset and strategies to take control, grow
• 0:53
  your wealth and achieve financial freedom. It's time to make your
• 0:56
  money work for you. All right. The old saying goes, if you're
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  not having fun, you're not doing it right. So now I'd like to have fun doing some reactions from
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  a few folks online to see what they say.
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  I'll react to them. You'll get a genuine reaction from me. Good, bad, or indifferent,
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  but I hope you have fun watching it and I can impart some lessons to you. So let's
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  Whether you like it or not, Trump has accidentally just given
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  everyone the opportunity of a lifetime to invest in stocks. It's
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  the best opportunity in the last like half decade. I'm
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  not a financial advisor, but I shall be putting a
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  All right, so he's indexing and that's
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  a great strategy. He's also buying the dip, great strategy. He
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  doesn't know if it's the bottom. He said he's gonna be putting a lot of money in there. Not
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  But tech stocks, AI stocks, Google, et
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  That's already in the index. So if he's already buying the index, he's already actually
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  This is genuinely the best opportunity you will have to
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  Not necessarily. He doesn't know what's going to happen in the market the next week, 24 hours.
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  He has no idea what's going to be the best opportunity. It just means that 10% off
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  Yeah, I would consider it too. Young guy. Yeah, good on
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  All right, here we go. It's easier to
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  raise $10 million than it is to raise $1 million. It's
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  easier to become a millionaire than it is to make $100,000 per year.
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  I know what he's trying to say here. It's just
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  as easy to think big than think small, but your mindset's not there
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  yet. When you get there, then it's easier. When you look backwards, it's
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  always easier, so you say that. I think it's
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  easier to make 100 grand than a million and I also think it's easier to
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  raise a million than 10 million. From
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  I've seen this called the paradox of ambition and there are a few reasons
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  for it. First, there's less competition at the top. 99% of
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  Yeah, but you also don't have the vernacular, the confidence or
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  the network to talk to those specific people until you've kind of
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  earned your way there. So you have to kind of like build
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  your way to that moment. And so of course, when you're there, it seems
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  easy because you've earned your way to it. But until you've done the
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  There's a life-changing opportunity coming in the cryptocurrency market and I am the last person
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  to ever say that. I have worked with wealthy individuals all over the
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  United States and not one time has ever anyone come up to me and said, hey, I
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  made all this money by investing in crypto. I know it can happen but it's very rare.
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  Yes. The only people that actually did it were the ones that
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  purchased way before it was a thing and now everyone's trying to replicate it because they're
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  has told me they've made a ton of money, it's been because they built a business
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  But this one opportunity- Yes, that's how most people got super rich. If you go
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  to the top Forbes 400, the top 100, 400 people
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  richest in the world, they got there through businesses who then became stocks in
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  This one opportunity, I think this could be like investing in Apple super early,
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  or this could be like- No, it could, no. Like investing in
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  Now, I'm gonna show you the list of the coins in a second. I'm gonna put all of them up here. There
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  There's a new... So this guy on TikTok goes, this is
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  like investing in real estate 100 years ago or Apple at the beginning. Man,
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  by the time man in his car knows something, all
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  There's a new financial system coming and if it gets announced and
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  He's feeding the FOMO too late. What year was this? We
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  The coins are going to be what's considered ISO 20022. What?
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  ISO 20022? Search. You
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  Just a second. But if you are in these, I don't think
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  you need to have $100,000 in there to make life-changing money.
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  The interesting thing about these crypto guys is like, I don't think you have much fiat
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  currency in there to make life-changing fiat gains. They're
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  all about the fiat currency. They all care about fiat money.
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  Because you're looking at the possibility of a four or 500x return if
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  everything gets announced the way that it's supposed to. Some things are already
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  in play. Some things are already happened. Check the boxes. And
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  yes, XRP is one of them. And typically, I've been a person that
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  said that's not going to do very well. But the stars have aligned a little bit. And
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  Damon John. Damon
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  John, he's a guy that became successful with his
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  apparel company, right? He's on Shark Tank. He's now giving investing
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  He's saying to buy Tesla Tesla's selling for like 150 times earnings It's so overpriced and the earnings are
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  falling. It just had a 40% cut to its earnings It's getting hammered in China through
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  from BYD BYD's earnings jumped 50% or 100% I think it was the other day
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  Tesla's a car company at the moment, and people talking about Optimus robots and
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  moving in there, but they're also getting huge competition even in robotics from
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  Ah man, I wouldn't touch Tesla with a 10-foot pole.
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  His whole investment strategy is off a price. You
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  can't determine the value of a business off a price it's selling for.
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  You have to look at the underlying earnings and the ability for it to continue to earn that into the
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  future to see if it's worthwhile doing. I just don't know where Tesla's gonna be in
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  20 years to have any certainty around whether I'd buy that business.
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  So I don't think that's... If
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  something's expensive, super expensive, and it's 50% off,
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  doesn't mean it's cheap. It's still super expensive, even 50% off. So
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  I wouldn't listen to that. I'd listen to Warren
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  It does. It does. History doesn't repeat, but it rhymes. It's very
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  It could be a good buying opportunity. It's only a small 10% correction. It's not massive. Stocks
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  are still overpriced. Majority of stocks are overpriced. AI
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  takeover. We really think that with all of these technology and AI
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  stocks tanking right now because of the bubble that was created pre-Trump coming
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  into office, it'll be worth less or more in
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  five years time as AI actually gets to take over.
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  Yeah, I think AI will enhance and amplify currently great businesses.
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  It's not like AI is going to be this savior. You have to have a
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  great business first, and AI will amplify their ability to optimize and
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  create better experiences for their customers and create wider, durable, competitive
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  advantages, which makes them more valuable. So 100% agree, five years, they
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  should be worth more than they are today. Just quickly, if you're ready to take control of
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  your finances but feel stuck on where to start, I have a
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  solution. My book, Money Buys Happiness, simplifies investing
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  and wealth building with practical steps to help you achieve financial peace.
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  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. Big Dave. Big
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  Your most powerful wealth-building tool is your income. And
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  when you spend your whole freaking life giving your money to
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  banks who fill up the skyline and have furniture nicer
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  than yours, that makes you stupid. When you don't have any payments,
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  you know what you've got? Money. Live on
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  less than you make. In the house of
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  the wise are stores of choice, food and oil, but a foolish man
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  devours all that he has. If you spend everything you make, you're a fool.
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  And then you're gonna save some money. You know how rich people get rich? They
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  save money. I don't know if I agree with Dave Ramsey's investment assumptions.
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  I love Dave. 100% agree with all that. This is so simple.
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  The best investment of all is literally S&P
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  500 index fund balanced by a couple of other things, but primarily that,
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  and reinvesting your dividends, making frequent contributions, small
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  as they might be or as big as they might be along the way. And if you do that, you're
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  going to blow away like 97% plus of all
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  That's true. It's like 90%. You are going to beat the
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  professionals if you just buy a broad-based index fund like the S&P
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  500. Warren Buffett and Charlie Munger have mentioned this multiple times at their annual sharehold
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  conference. It's widely known. It doesn't mean it's
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  going to work forever, but it is very sensible. I
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  would suggest, though, that the best investment you can make is in a business that amplifies
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  your income. And the best passive investment you can make is arguably
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  consistent basis. Warren Buffett's got a great say because I rather give my money to a bunch
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  of blind monkeys throwing darts at the S&P. They'll do
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  better than the money managers than usually. They can't compete with the blind monkeys. The
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  problem is there's not a lot of blind monkeys around throwing darts. So essentially the
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  Yes, it was. In 1970, Jack Bogle invented, he founded Vanguard
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  and they invented the first index fund. It's
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  just going to take time. And people just don't have the patience for it.
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  But I would say the best investment you can make is in your skill set. Then start
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  a small business. And then with the proceeds and profits, something like
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  the S&P 500 makes a lot of sense. It's very, very
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  scalable. And you can scale your money without scaling your problems. The Wolf of Wall
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  Street, flipping heck. He's a federal flipping
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  No income tax for anyone making less than $150,000 a year. This was re-announced
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  by Trump today. Even the Commerce Secretary came out and agreed that
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  we could actually do this. It sounds like they're getting very serious about it. There was three big
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  things they announced in this press meeting today. One was about tariffs and
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  they were gonna be able to negotiate with China and they would get that deal done. The markets loved it.
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  Another thing was- I don't know whether they're gonna make enough income from tariffs
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  to eliminate the Internal Revenue Service or the
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  taxes for people under 150K. I think
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  the objective was to make lots of money, and I
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  think they are making some money from tariffs, but I just don't think it's
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  going to be enough. We have to see what happens with the tariffs, where they fall, and
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  whether they're sustainable, and whether that can offset a lot of the income tax, revenue,
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  or the IRS service in the United States. It
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  doesn't look like it's going to happen. It's a good goal, I like it, but
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  They said they were working with Powell, they would not fire Powell, and that
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  relief to Main Street, because Wall Street's done so
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  well in the United States for so long, they want to see Main Street do well, which
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  is what made the 50s and 60s such a great era. Everyone
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  was doing well, and that's a great goal. I mean, I'm all for that.
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  Hopefully it works out. Cody Sanchez. I love Cody Sanchez.
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  Really, really rich people do not think about saving. They think
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  Yeah, it's true. Saving is the first step
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  because without having the actual cash saving there, you
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  can't deploy it into being productive. So what
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  she's talking about is savings for savings sake.
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  are saving, think, how can I not spend anything? People who are earning and
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  growing think, how can I make every dollar that I spend bring friends when it
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  Yeah, you have to actually spend the money to deploy it
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  No. Yeah. You can't just hoard it and put it under your mattress. That's 100% correct. I
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  Unless you are living under some kind of rock, then you should know that America
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  So here is a- The depression in the 30s only happened because they didn't
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  alleviate, they didn't open credit for credit to flow.
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  So there was bank runs, and they're not going to create bank runs. They could have
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  done that in the GFC, but they loosened the credit
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  supply up and they prevented bank runs. So I don't think there's going to be
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  a depression, but certainly a recession For
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  a recession, almost certain to happen because the tariffs
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  are going to create a lot of unemployment in certain sectors and inflation is
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  going to go up in the short term. And I dare say that a
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  recession is where there's two consecutive quarters of negative GDP growth.
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  And it's fairly likely that that may happen because of the tariffs,
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  because of the fall in real estate prices, because interest rates are higher. The
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  economy does have to cool off a bit. And it means that there may be two
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  Non-monetary things that you can do to prepare for this crisis.
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  You want to set aside a small amount of cash specifically.
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  She said non-monetary things? That's monetary. But
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  I agree, she's teaching you how to prepare for the recession. But you know
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  what's really interesting about this? People are like, oh, a big recession's coming. It's
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  not like that. It's like you just can't even feel it.
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  It's kind of like a quiet. overcoming
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  like you know when you have a cold and you kind of feel like you're getting sick and then
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  like two days then you're just sick it's kind of it's slow and it's not as
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  drastic as what people think we're probably more so in a quiet recession
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  now so you're probably already experiencing it if you're finding it harder to
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  live day by day you're probably already in a recession so
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  it's what it feels like it sucks but it's not like suddenly it happens and
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  then like a hole opens up in the earth and you fall in it and you die it's not like
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  that So that was it with our reactions. Hope
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  you enjoyed those. They were fun. Some great stuff there, some not so
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  great stuff there. It's nice to react there. You know, I mean, there's some sensible stuff
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  going on and it's great. If you can listen to the sensible stuff, awesome. Power
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  to you. If you can avoid the stuff that's not effective, that's how
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  you get ahead, all right? So hope that's been fun and I'll see
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  you in the next episode. Thanks for listening to Money Grows on Trees. If you
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  enjoyed the episode, leave a five-star review on Apple Podcasts and
• 16:37
  Spotify and subscribe to us on YouTube so you never miss
• 16:40
  an episode. And if you're serious about building wealth, make sure to check out
• 16:44
  the links in the show notes and follow me on all social media platforms, at