The Mindset of the Rich
Dear Reader,

Whether you say you can or can’t, I believe you. Because that is how important your own belief level is when it comes to your own success in life.

If you’re not a millionaire in this economy, the odds are you are struggling. Let’s face it: life’s expensive. I can’t even go to Costco without spending $500, and my family isn’t even buying junk – we’re buying organic foods, wine, and fresh fish. Being healthy costs money these days, because if you’re not paying for good health, the alternative is foods wrapped in chemicals, acidic water, and radiated meats.

In the year 2004, I had crossed the million-dollar mark for my first time. Still in my 20s, I celebrated this. And within 3 years, my wife and I were down to our last $25,000. After having made hundreds of thousands of dollars, we made large bets that all crashed and burned.

In 2008, my experience in real estate and the devastating fall of my net worth pushed me back into the workforce for 2 years. I hated it. Separated from my wife and newborn son, I rose up to get rich – not because of greed, but for quality of life.

Most people are afraid of losing their job; I became scared to death of ever having one again. I wish I could say I created a master plan or designed my future and then implemented it, but the truth is I just went all-in with my passion (investing) and connected the dots looking backward.

The creation of this letter is a result of my own experience in being afraid of becoming poor due to an economic collapse in America’s middle class. For years, I thought gold was my preservation, but looking back, I realize gold isn’t the best preparation for hard times.

Your best preparation is following your own passions, monetizing your skills, creating multiple streams of income, and having a high belief level that you will achieve all the things you desire.

In 2012, my wife and I saved 90% of our income. 2013 was a year that I will never forget, spending over 120 days traveling with my wife and children, visiting several islands, and even taking a few extended road trips. My mission with this letter is to help you be able to do the same. Live the life you want, and do it the way you want to by becoming financially independent.

More than a stock picking letter, is a personal finance letter for the new economy.

For us, Dave Ramsey’s advice is great on debt, but suicidal on investing. Peter Schiff’s advice is great on the economy, but extremely risky by investing with foreign currency. Americans needed an alternative, a personal finance source that understood the dire situation the economy is in, but provided investment alternatives to match a real generational paradigm shift.

The end result is what you are reading now, receiving interviews with top investors and business builders, and a relentless focus on surrounding ourselves with income ideas and high-quality people.

One of the lessons of becoming rich is learning how to be rich.

Here are 3 Principles of the Wealthy That are the Essential Components for Having the Mindset of Being Rich

The wealthy have a huge advantage – they are already rich.

When a bear market hits, they have time to let things play out, buying up cheap assets and sitting on investments for 10 years or more… A middle-class investor feels like he’s always playing with his back against the wall, not wanting to lose a penny, but needing to make a million!

Wealthy minds are also surrounded by other individuals with a high net worth, sharing ideas, deals, and secrets.

When you speak with a multimillionaire, they almost always have a story about a big failure or a period in their life when they were financially in a dark valley. They talk about being forced to overcome feelings of insecurity, doubt, and rejection in order to become the person they are today.

If you’re not already rich or you’re like us, just having too much fun creating wealth and helping others do so in the process, then please read these 3 core traits that we have identified in highly successful people.

Even if you aren’t rich today, by mimicking and adopting these disciplines, you will eventually find yourself very wealthy.

1. Patience
Having the patience to see things play out is critical to becoming a successful investor or business builder. We have all been conditioned to expect an immediate payoff, but the fact is the world’s most successful business people and investors spent years waiting for big decisions to pay off. People who are building a business need to think about where their business will be in 5 to 10 years – not next month. Short-term thinking assumes failure down the road; long-term thinking assumes success and longevity. Most of these small micro-caps we buy have a short-term trading potential, but to be part of the deal, you need to buy them at the right price and plan on holding them for years.

Patience, according to Rick Rule, of Sprott Asset Management, is the advantage he has over other investors. He is willing to wait, whereas most are not. So while others are jumping ship during a crunch, he is positioning himself for an even larger profit down the road.

Thinking in decades as an investor and thinking in years as an entrepreneur is one of the key things we have noticed in our own success and the success of others. If you really believe in the success of your investment or business, then there is no reason why you shouldn’t feel confident enough to see your decision play out.

2. Unconventional Education
The sooner you apply this to your life, the higher the quality of life you will live. Ignoring conventional wisdom and the comfort of joining the masses is a must to becoming a successful individual.

Start by listening to the right people. Surround yourself with podcasts, books, newsletters, and individuals who think at a higher level than the typically conditioned information pushed by the media, Wall Street, and government.

Good education from people who are wealthy is probably the easiest place to start.

Wealthy individuals have knowledge and an understanding that is worth your time. Most people, unfortunately, take financial advice from their parents, teachers, and financial planners. These are all good people, but unless your parents are financially free, are they really the best people to tell you how to become financially successful? Most parents just go into the default mode of “go to school, get a good job, and save for retirement for 40 years.” Teachers: we all love those dedicated to helping children learn the basics of life, but they are in no position to offer financial advice. Lastly, financial planners (this one is obvious): they not only have a financial interest in you buying investments through them, but sadly, it takes longer to become a massage therapist or cut hair than it does to become a qualified financial planner.

We are only aware of a handful of financial planners who short the markets, focus on the economy, and prepare their clients for a currency risk. According to our good friend Nicholas Green, who is a fiduciary we trust, most financial planners take sales training classes and know little to nothing about the actual investments they are putting you in.

3. Overcoming Human Emotion
This is a big one: you literally have to force your brain to overcome your natural human emotions. This affects us all. Acknowledge it, and then consciously override the emotion that makes you want to sell when everyone else is selling or buy when everyone else is buying.

Try and focus your mind on buying undervalued assets, even if that just means buying on days an asset you want is down.

It’s scary to think about, but a lot of times our own thoughts are a contrarian indicator.

Have a great Sunday,

Daniel Ameduri