Billionaires who make their money from investing have always fascinated me. When I was younger, I read autobiographies of millionaires. As I got older and had been in the investment world for two decades, I became more familiar with how billionaires were investing. To achieve such a huge result as to become a billionaire requires not only a lot of effort, but also an exorbitant compounding rate because building wealth is all about the rate at which you compound money.
I started paying more attention to what billionaires said and what actions they took several years ago after the financial crisis, because I noticed there were many billionaires who were not harmed by the economic crisis…so what did they know and when did they know it?
The interesting answer came back that that they were able to see the “big picture” and catch the big moves up or down in the economy. By anticipating the sub-prime crisis, John Paulson was able to make $7 billion in 2007-08 by being positioned for it.
When I see billionaires buying the same investments and saying similar things, I take notice. When one of the best investors of all time, George Soros, says “gold is the ultimate bubble” (meaning it will increase in total value more than other bubbles such as internet stocks and real estate), I pay attention. When Canadian billionaire, Eric Sprott, says he has never seen an investment opportunity in his lifetime like gold and silver, I pay attention!
In spite of short-term fluctuations, the long-term picture of gold and silver has not changed. More money is being created by the Federal Reserve (a private banking cabal that controls our money supply) increasing our government debt. Over time, more supply of dollars will decrease the dollar’s value. Gold and silver, because they are in limited supply and are also forms of money, will go up in value when the dollar declines (in 3 to 5 years) and are going to provide the most significant returns of our lifetime. Eric Sprott is suggesting 3,000% is the potential for gold and silver mining stocks. Now THAT is serious compounding. Take the billionaires’ word for it.
If you’d like to know more details about how to take advantage of these opportunities, I’ll be sharing that at my 3 day event, October 10 – 12 in San Diego. Please see below for more information.