{"id":16533,"date":"2020-09-12T07:30:48","date_gmt":"2020-09-12T11:30:48","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16533"},"modified":"2020-09-12T07:30:48","modified_gmt":"2020-09-12T11:30:48","slug":"lessons-from-my-near-death-experience","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/lessons-from-my-near-death-experience\/","title":{"rendered":"Lessons From My Near-Death Experience"},"content":{"rendered":"

Mike’s note: <\/strong>On Wednesday, our colleague and Palm Beach Daily<\/em> editor Teeka Tiwari hosted his special presentation where he revealed how you can make pre-IPO deals<\/a> in the private market… which, until recently, was only available for the wealthy and well-connected.<\/p>\n

Read on below to see how you can gain access to what Forbes<\/em> is calling “the most profitable sector,” and how a dark moment in Teeka’s life led him to one of his most profitable investment opportunities.<\/p>\n

To watch his presentation, you can click right here<\/a>… but don’t wait – it won’t be online for much longer.<\/p>\n

\n

I want to reflect on an episode that changed the way I think about building wealth…<\/p>\n

As you may already know, in the early 1990s, I made my first big haul buying beaten-down junk bonds. And in the mid-1990s, I started making money hand-over-fist in technology stocks. I was making a fortune.<\/p>\n

But by late 1998, I’d lost everything. I got wiped out in the markets. And it wasn’t just my money that was gone.<\/p>\n

I had lost the will to live, too. Doing the math in my head, I felt I had to take my own life and let my family collect on the insurance policy.<\/p>\n

Standing on the edge of the Metro-North platform in Grand Central Station, I made the single-best decision of my life – to not end it.<\/em><\/p>\n

I don’t know if it was courage or cowardice that backed me off the edge of that platform. Whatever it was, I sure am grateful for it.<\/p>\n

Friends, when you lose 10 years of wealth and become broke… it mentally beats you down. I couldn’t even work in my industry anymore. In fact, I started working in a restaurant I used to frequent on Wall Street. I had just completely lost my way.<\/p>\n

But I learned some valuable lessons going through that dark period.<\/p>\n

What caused me to go bankrupt wasn’t my ideas. In fact, they were usually very good and ended up working out.<\/p>\n

Instead, it was the enormous amount of leverage I was using and a complete disregard for position-sizing.<\/p>\n

You see, when I was wrong – even temporarily wrong – I had so much leverage, it just wiped me out.<\/p>\n

Long story short – after a couple of years – I figured out where I had gone wrong and returned to Wall Street. Armed with a newfound respect for position-sizing and risk management, I remade the fortune I lost… and went on to become far wealthier than before.<\/p>\n

But there’s another lesson I learned from that experience. I’ll share it with you today…<\/p>\n

How to Build a Self-Reinforcing Money Machine<\/strong><\/h2>\n

The first lesson I took from my bankruptcy was to eliminate my use of leverage. The second lesson was to focus the bulk of my portfolio positions in safe, income-producing assets.<\/p>\n

In the past, my whole portfolio was made up of high-risk assets. I realized that was just not a sustainable approach to growing money. But I didn’t want to shun high-risk assets entirely.<\/p>\n

This led me to the biggest breakthrough of my career: Asymmetric investing.<\/p>\n

Let me explain…<\/p>\n

Asymmetric investing is a strategy in which you invest tiny grubstakes in ideas with explosive potential.<\/p>\n

So let’s say you have a traditional portfolio mix of bonds, stocks, real estate, gold, etc. You take a small percentage of your overall portfolio and put it in these explosive upside ideas.<\/p>\n

And I’m not talking about ideas that double, triple, or even quadruple your money. I’m talking about ideas with the potential to return 10,000%, 50,000%, and sometimes 100,000%.<\/p>\n

These are binary bets. In other words, they’re going to pay off at 1,000 to 1… 50,000 to 1… or even 100,000 to 1… or go to zero.<\/p>\n

As a younger man, I’d see situations like these, and I’d use leverage to take massive positions in them. So even if most of my ideas were right – and they were – if just one of these ideas went wrong, it blew up my entire portfolio.<\/p>\n

So instead, I carved off 2-5% of my portfolio and earmarked that money for asymmetric bets. I then started using uniform position sizes across a portfolio of asymmetric candidates. For instance, instead of putting $10,000 into one asymmetric bet, I’d put $1,000 into 10 of them.<\/p>\n

Of course, some will do nothing. And some will go to zero. But what I discovered is a few went up so much in value, they ended up eclipsing the entire value of all my other safe assets.<\/p>\n

In some instances, I was doubling my net worth, while only risking 2%-5% of my net worth. That’s the essence of an asymmetric bet.<\/p>\n

I didn’t stop there, either. I took the strategy a step further.<\/p>\n

I realized I could use my safe assets to generate income. And then take that income and buy more asymmetric-risk assets, without putting my future net worth at risk.<\/p>\n

This concept just blew my mind… It allowed me to safely take larger positions in asymmetric bets without putting my core wealth at risk.<\/p>\n

I had, in effect, created a self-funding, moneymaking machine that has exploded my net worth to levels I have never seen before.<\/p>\n

And I’ve done all of this while taking a fraction<\/em> of the risk I used to routinely take.<\/p>\n

Now, you never want to put money in an asymmetric bet if it puts your current lifestyle at risk… or doesn’t replenish itself on a regular basis.<\/p>\n

But by creating a safe income stream from your core assets… you can divert more passive income into your asymmetric-risk investments without hurting yourself.<\/p>\n

This has been my wealth-building secret.<\/p>\n

The Next Big Asymmetric Investment<\/strong><\/h2>\n

The biggest wealth-building, asymmetric investment of my life has been in cryptocurrencies. And the reason why I’m talking about asymmetric investing today is I’ve found another investment class that offers a similar return potential as cryptos.<\/p>\n

It happens to be in a little-known corner of the stock market.<\/p>\n

It’s called the pre-IPO market.<\/p>\n

An IPO – or initial public offering – is when a private company lists on a public exchange. And buying in the IPO market can yield double- and triple-digit gains.<\/p>\n

But the truly asymmetric gains come when you buy companies before<\/em> they go public. In this pre-IPO market, you buy private shares… and what you’re banking on is the company will go public in the future at a much higher valuation.<\/p>\n

Right now, there have been dozens and dozens of IPO deals completed in 2020, and the average gain for the IPO investor – that’s for the investor that bought it at the “retail” IPO price – is around 36%.<\/p>\n

But take a look at this: The average gain for the pre-IPO investor is 22,946%. Those are crypto-like asymmetric gains.<\/p>\n

I can smell opportunity a mile away. That’s why, to me, it looks like a whole, brand-new wave of fortunes will be made in these pre-IPO shares – just like we saw in crypto in the 2017 crypto boom.<\/p>\n

I’ve analyzed this space, and everything suggests this trend is just getting started. So I’ve been working feverishly to identify pre-IPO opportunities I can bring to you.<\/p>\n

This Wednesday, I hosted an event where I talked about the pre-IPO market… and revealed details about a pre-IPO deal in one of the hottest sectors<\/a> in the U.S. capital markets – biotechnology.<\/p>\n

It’s an idea I think could lead to explosive crypto-like gains<\/strong>.<\/p>\n

And the beauty is that, just like what I’ve done with crypto, you don’t have to risk a lot in order to make a lot. So it’s another avenue to massively grow a small amount of capital that could end up eclipsing your entire net worth.<\/p>\n

If you haven’t already, you can rewatch my presentation and make up your own mind<\/a>. You owe it to yourself to find out how this opportunity works and how it can transform your financial life forever.<\/p>\n

Let the Game Come to You!<\/p>\n

<\/p>\n

Teeka Tiwari
Editor, Palm Beach Daily<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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