[Music]
is cash still King today now let me
explain to what kind of cash I’m talking
about I’m not talking about you having a
lot of cash in your pocket like I got a
lot of Benjamin’s in my pocket because
if I go out it’s still not about credit
cards it’s still about cash and you know
if you have cash you can negotiate if
you got correct I’m not talking this
argument this is completed for an
argument I’m talking about cash liquid
net worth we got a million dollars of
investable cash and someone tells you
should put 90% of in the market go buy
stocks go buy real estate go buy this go
buy that and go for the whole thing
because you’re about to make your big
dollars right and maybe leave 6 to 12
months of expenses in your account
is that the way to go and somebody else
may say I think you need to keep a half
of it well they quit why that makes no
sense you’re not being aggressive enough
you need to go for the whole thing who
is right we’re gonna talk about that in
this episode and some of the stuff you
may agree with some of the stuff you may
say I don’t know if I agree with this
comment below so I can hear both
thoughts as well you’ve got questions
thoughts comments comment below and if
you haven’t yet subscribe to the channel
click on the subscribe button right here
and join a notification squad okay so
let’s get into it look for the longest
time if you talk to my dad my friends
everybody would say Pat is very
aggressive with his finances I’ll give
you a couple stories here one if I went
to Vegas and I had a couple hundred
dollars right this is one in 21 years
old when I go to Vegas twenty-six times
a year if I go to Vegas there would be
nights where I would lose fifty five
hundred dollars and one night I lost and
by the way I couldn’t afford to lose
fifty bucks but I lost fifty five
hundred dollars that night because I
would just go double double double
double though it’s gonna come back this
double I’m gonna double I’m gonna double
I lost 35 bet 70 I lost 70 bet one forty
bid 140 bet two eighty to eighty-five 65
sixty thousand twenty thousand twenty
two thousand bum I just lost thirty-five
hundred bucks and it was gone right I
was that aggressive guy I’d buy penny
stocks
because I would sit and I bought a Nike
stock once and I bought it at 27 and one
to 41 and I said oh my gosh I just made
this much money and then another guy
turned me on into a penny stock and he
said dude forget about this Nike stock
look at this penny stock if you buy that
success if this thing goes to $2 you
just your money just went 33 X you put
$10,000 that’s $330,000 this one kid in
our high school took $10,000 from his
dad turned into $160,000 based on penny
stocks everybody was talking about I’m
gonna be the next penny stock guy so
we’re all going for the marbles now once
I lost everything and I hit rock bottom
and I realized this whole aggressive
thing Pat what do you think no one can
get in your way you may need to readjust
your thinking so I became a cash guy
everything to me became about having
cash so now watch a story here what
happens in 2010 I’m looking for an
office space and it’s office space I’m
looking for I wanted a nice office space
I knew this city I liked San Fernando
Valley in California I wanted to be
closer to Woodland Hills right after 101
freeway I liked that shopping center
with what was the movie theater across
the street was it AMC I don’t know for
his AMC PF Changs so just a great spot
and so Marriott was right there I said I
want a building right here so my realtor
finds the location is the spot you’re
gonna love this thing I said I want to
deal I’m not paying full price he says
this is a deal let’s go look at it we go
inside to look at this place first of
all you could tell whoever that leased
this place out spend hundreds of
thousands of dollars of fixing a place
out the front lobby you come in marble
floor the desk that was set up was
insane the glass the way was set up
cameras everywhere the crown the the
finishes at the top and then you walk in
the conference from glass you press a
button you know you would have these
curtains that would close for privacy
you would have a drop-down with the
projector that would come out wiring the
tables were already wired TV set up over
here and as you make a right there’s a
presentation wall with glass inside
where you can put your trophies and
recognitions you got from Congress and
Senate and all these other people and
then you walk in and then you’re going
to the end office the CIO’s office it
was a sick office I look at so you gotta
be kidding me and I made an offer and
they accepted the offer I couldn’t
believe the fact they accepted the offer
what happens here I stay at this place
then I said who runs this place then one
guy comes upstairs one day and he’s
running a magazine he tells me who it is
and I started messing in who this person
is and eventually have to call on people
around says well this guy had two
billion dollars plus and
Marshall Holdings okay and he was going
for all the marbles
every cash yet he would buy commercial
properties commercial properties he had
a lot of locations in Dallas Phoenix I
think in California and a few in Chicago
he said I’m gonna be the Trump of SoCal
and I’ll be a billionaire this is it he
went all in everything here every cash
was all into real estate
he was never expected in a way to happen
when it happened phone he lost 90% of
his holdings whatever he had all the way
down buildings you should be 90 percent
rented it was 50% rented it was a pretty
bad situation here was a slice at and I
elected this thing I said Wow
pretty interesting what’s going on here
here’s a person that’s making a run at
being a billionaire and they flop is
that his fault did he do anything
different did he make a mistake what
would he have done differently and I
started processing this he was living in
a house 30,000 square foot house with a
casino inside his house when I say casue
now I’m not talking about two tables a
full-on casino like this is a rich man
as we’re talking about right so I came
back and our lives your life my life is
for you to learn from me for you to
learn from your parents meet alone for
my parents for us to constantly be
watching everybody and see what things
we can learn to pick up to do right and
to do wrong and Charlie Munger many
times was saying version look you would
always talk about the mistakes he made
with his kids and mistakes other people
made more than the things that people
did right so I sat and I said that
stayed with my mind saying Pat cash is
very critical but you gotta know when
you’re making a run for all the marbles
your strategy you got to trust some of
the principles you have in place so with
that being said I got a few items here I
want to show you so you can be thinking
about when it comes down to its castle
King today right behind me I have all
the dates of history of recessions we’ve
had in America okay now a lot of times
people say Pat what’s the recession
what’s the depression you know sometime
we don’t even know what a recession or
depression it’s actually very simple
recession is when a nation has a wide
economic decline that lasts six months
or more so if it’s a nine months it’s a
recession if it’s seven months it’s a
recession when the markets kind of going
like this six months it’s a recession we
don’t have a recovery if it goes for
several years three to five years it
becomes a depression that’s what we’ve
only had one depression in the history
of America
since 1929 the last one that we had now
knowing that how many recessions have we
had in America since 1854 we have had 33
different recessions since 1854 that’s
33 different recessions what does that
mean to you 33 and 164 years which means
one every five years we have a recession
every five years we have a recession let
me show this to you 1945 we had a
recession it lasted eight months 1949 we
had a recession it lasted eleven months
a member for years 53 we had a recession
lasted ten months for years 57 we had a
recession a lasted eight months look at
the gap again for years 1970 we had a
recession lasted 11 months that is a
decade right that’s a gap right there
that’s positive that’s good 1973 we had
a recession 16 months it’s a long time
real-estate took a big hit during that
time 1982 82 we had two recessions
during that period one lasted six months
it was the first one second one lasted
16 months in a two-year gap 1990 we had
an eight-month recession 2001 we had
another recession lasted 8 months look
at the gap 10 years again so we have two
of them that are 10 years here 2008 2009
mortgage crisis you remember that one
18 months if it would have got another 6
1224 months that would have been a
depression but it was a recession what
do we have next
we have not had a recession folks for
nearly nine years for nine years we have
not had a recession what does that tell
you
probably could happen today but in the
next 6 to 24 months we’re going to
Express experienced a recession it may
be 3 years but it’s coming now this is
the challenge that we’re facing here
there are people who think bitcoin is
forever gonna go up and I’m gonna make
my billions and this is how I’m gonna be
on the cover of Forbes magazine being a
richest person in the world right there
are people that think you know the real
estate market is gonna be perfectly
right now let me put everything happen
to the real estate market now if you go
long term and you average it out real
estates gonna give you somewhere between
4 to 6 percent if you go a long long
term if you go long term an average out
of with the stock
market you’ll see between eight to
twelve percent depending on how to
market does right but regardless of what
I’m telling you if in the back of your
mind this concept of Pat I don’t want to
think negative I think positive and I’m
optimistic I used to think everything
was about positivity until I realize I
am very positive and optimistic about
things that have control over but things
you don’t have any control over you
can’t fully be thinking positive and
optimistic I understand having faith
I understand praying I understand having
a higher wall behind you but you’ve got
to be thinking about the what-if right
because this leads me to the next point
here when you think about risk-taking
everybody falls somewhere in this
category of risk-taking right you got
somebody that is so conservative they
will never do anything with their money
ever invest you can’t even convince them
to put in the bank because they don’t
even trust the bank because they believe
our beginning is around the corner you
know any people like that typically it’s
our grandparents and they’re so afraid
because of a lot of bad things that
happen then you have people that are
conservative I believe in bonds I
believe in having some conservative
balanced funds I believe in this I
believe in that everything is just
somewhat conservative and you know
people that are assertive they do
research they study let me look into
this Bitcoin thing what is blockchain
what is cryptocurrency what is this
insurance policy what is this stock what
is this doing house real estate this guy
told me about I’m messing to Austin
she’ll let me look into Austin let me
look into Nashville let me look into
this community
Victorville they’re talking about
California that maybe it’s becoming
bigger because it’s getting closer to
Vegas should I consider putting my money
in door maybe Palmdale well let me look
at this stuff but they’re a server
assertive I’m learning I’m trying to
learn they didn’t have the guys that are
aggressive you know I’m gonna go for
this and I’m gonna go for this and I’m
gonna go for this and I’m gonna go for
this
these guys they can have a big hint
absolutely it could have a big kid but
they can have a big loss as well and I
last but not least this is just
absolutely dumb category this is this is
the people that this is the people that
actually believe they can fly you know
this is this is like what was that one
song Mario by a/r Kelly remember are
Kelly or until he had a song and it went
something like this by the way this is
this is how he would sing if he was
singing to these types of people when
they invest this is what it would sound
like he would say
he believes he can fly he believes he
can touch the sky he thinks about it
every night and day he spreads his wings
and crashes away because that’s what
happens to these guys that think
everything is possible
listen I believe everything is possible
I’m very comfortable trusting a plane to
fly me to another place I was in India I
don’t mind a plane fly me over the you
know ocean to go to India do I trust
myself to go jump off the top of a tower
say listen I am such a positive
optimistic guy that I want to do this
thing so fast that I’m gonna fly even or
Kelly’s not right when he’s saying that
song so how do we balance these things
here right by the way remember this I
must say this quote very slowly and
hopefully it resonates one time here we
go what sells doesn’t always work and
what works doesn’t always sell let me
say one more time what sells doesn’t
always work what works doesn’t always
sell what do I mean by this
well what sells imagine if I get up and
I sell you concept that’s what we’re
gonna do at that I sell it so good but
doesn’t necessarily work and there’s
another thing that works but it’s so
tough to sell okay it’s so tough to sell
because people say now that’s boring I
don’t like that part no Doubt’s are born
try to know and set aside your emotions
and be able to process everything
logically and say this makes sense or
dude this guy’s just trying to sell them
and he sounds way too excited it’s got a
nice salesman smile and it looks very
good I’m just not buying your
because what sells doesn’t always work
you’ve got to know how to decipher
between the two typically the way you
learn how to do this is after a lot of
people take advantage of you then you
start having that eye and say let me
watch everything out there so now having
said this let’s go over here remember
how I talked about all this recession
that took place in 2009 when a market
crashed here’s what took place
Ford stock went roughly to add our
matter of fact it was under $1 imagine
if you could buy that stock on that if
you had some cash setting aside what if
you could buy think about if you could
buy 10,000 shares out a buck that’s
10,000 bucks
nine years later you would have 111 to
$110,000 $110,000 okay
Citigroup 199 bucks $74 to be visiting
went down to 13 I’ve worn a Disney shirt
went down to 13 today 103 dollars give
or take B of a went down to 250 32
dollars today that’s 12 X 13 X Amazon
with 34 today’s 1500 now that’s an
anomaly that’s a different story
Nike was 12 today 66 I’m showing you
these things because this is not a 6%
return the 6% return means it takes 12
years for your money to double we’re not
talking about that kind of stuff but
this happens if you anticipate a
recessions about to come up so having
said that let me show you some companies
that the companies here that have the
most cash take a look at this
Walmart’s got eight billion in cash
today Procter & Gamble 15 billion Pepsi
17 Amazon 30 coca-cola 27 G 44 alphabet
which is Google 95 Microsoft 133 Apple
261 billion dollars of cash is what
they’re sitting on by the way this is
from a Business Insider article which
was December of 2017 Apple today give or
take they’re at 285 billion dollars
today and I’m not even talking about the
old offshore dollars that they find out
how much some of these companies are
sitting on I’m talking money in America
that they have to report because they’re
public companies publicly traded
companies right and by the way something
for you to be thinking about Walmart
look at this number this is such an
interesting data it’s a complete
different topic but watch this year
Walmart has eight billion dollars in
cash they did four hundred eighty five
billion dollars in top-line revenue last
year that’s more than Apple and Amazon
combined on their top-line revenue but
they only have eight billion in cash
Amazon has four times more cash than
Walmart why because Walmart’s retail
Walmart’s retail this is why Walmart is
so worried about Amazon Walmart needs
2.3 million employees to function Amazon
only needs three Hanna 41,000 and Apple
only needs 123 thousand and they got two
hundred eighty five billion dollars in
cash the question becomes this for all
these people that say shouldn’t have a
lot of cash
do you think the people in the boardroom
of Apple that say man let’s have a lot
of cash you think they’re dumb
you think Amazon Jeff Bezos is dumb you
think Tim Cook is dumb you think people
who run Microsoft are dumb you think
Bill Gates you think you know Google
guys said gay and all these guys you
think they’re not that smart
you better believe they’re very smart
now why are they stashing so much cash
away today probably because they’re
anticipating every session to come up
and when this recession comes up they’re
hoping a recession comes up because when
the recession comes up some of the
companies that making bad mistakes they
can pick them up on 40 cents on a dollar
20 cents on a dollar and that’s how they
keep getting bigger and bigger and
bigger because they have cash so what
does this mean to you look let’s go back
over here Mario come back with me over
here on this on this risk factor here I
want you to know Mari I’m gonna go back
and come back I don’t I don’t want I
don’t want you to think I am telling you
to be here by the way if you do want to
be extremely wealthy one day if you do
want to be possibly a Decca millionaire
100 maybe even the B word you do need to
be kind of here you do you have to take
some risk that maybe you have a very big
risk but at the same time I’m not a fan
of people who recommend saying only keep
5% and out of your million dollars 50 of
it keep cash everything else put in
invested I’m not a fan of that here’s
why I’m not a fan of Mari come back with
me over here here’s one not a fan of if
based on what I’ve showed you this is
not a myth
I’m not selling you this this is facts
this is 33 recessions and since 1854
it’s a fact one every five years is a
fact 2008-2009 oh one ninety how long do
you like these are facts these are not
myth these are not ideas these are not
well could have piped these are purely
facts if you look at this you be the
judge of it based on where you’re at on
that risk side when do you think the
recession is going to take place you’re
gonna say 2025 because in your mind you
want it to go for another seven years
where the market keeps going up or are
you thinking back there saying hmm I
think something’s about to happen
and lets you say something’s about to
happen great don’t get scared about it
you see rich people are not scared about
it the people that I’m talking about
they’re not scared about it they’re
excited about it they’re ecstatic about
it they’re sitting on saying oh my gosh
this thing’s been going and delaying for
eight nine years the longer it delays
the worse it could be now this is not me
projecting and saying I can’t wait for
another one to happen believe me I’ve
been going 11 top line revenues quarter
as a company and we’re doing very very
good I’m gonna be also be affected by
this but the message I’m giving to you
is realize cash is still King this is
not in the past it is still king keep
your cash don’t get too aggressive don’t
get too crazy don’t go to the dump site
don’t listen to our Kelly song thinking
you can fly you can’t fly nobody can fly
but sit there and strategize yourself to
say oh my gosh in the next year two
years three years five years something
could happen and when it does oh my
goodness I’m going to capitalize look
somebody said well Pat listen it’s kind
of deceptive I hope everybody watches
this video but they won’t you know why
because cat videos do better because
somebody’s sliding and hitting their
back and other people laughing at them
it just does better because big butts do
better because six-pack just does better
on videos because pranks do better jokes
do better than a video this is boring
this is money and then people wonder why
so few people are wealthy this isn’t
something new I’m telling you this is
not something I’m telling you Berkshire
Hathaway knows this they buy things on
sale they know this stuff very very
wealthy successful investors fully
embrace this concept the question is are
you going to embrace the concept but
he’s still going to be way too
optimistic about the fact that
everything’s gonna work out because if
this is right in the last seven years
the longest time we’ve gone without a
recession has been ten years and it’s
only happened one time
and we’re at nine years right now that’s
a recession so we got one more year
until recession comes are you ready for
I don’t know if you are go based on this
so being sort of sort of a little bit go
do your own due diligence
I got links below by the way everything
I said to you today I got a PDF for you
so go below click on a link it’s in the
description go to the website print out
the PDF the PDF is gonna have other
links on that as well read educate
yourself and then make your decision
based on that to find out how you’re
gonna capitalize what the cash you have
to go out there and when the opportunity
comes along you can take advantage of it
again questions thoughts comments
comment below I want to hear from you
and by the way for you value trainers
out there do you like this style more or
do you like the other video when we put
all the other stuff up and I don’t write
on the board I want to hear from the
true value trainers which one do you
like more again thank you so much everybody take care bye bye
is cash still King today now let me
explain to what kind of cash I’m talking
about I’m not talking about you having a
lot of cash in your pocket like I got a
lot of Benjamin’s in my pocket because
if I go out it’s still not about credit
cards it’s still about cash and you know
if you have cash you can negotiate if
you got correct I’m not talking this
argument this is completed for an
argument I’m talking about cash liquid
net worth we got a million dollars of
investable cash and someone tells you
should put 90% of in the market go buy
stocks go buy real estate go buy this go
buy that and go for the whole thing
because you’re about to make your big
dollars right and maybe leave 6 to 12
months of expenses in your account
is that the way to go and somebody else
may say I think you need to keep a half
of it well they quit why that makes no
sense you’re not being aggressive enough
you need to go for the whole thing who
is right we’re gonna talk about that in
this episode and some of the stuff you
may agree with some of the stuff you may
say I don’t know if I agree with this
comment below so I can hear both
thoughts as well you’ve got questions
thoughts comments comment below and if
you haven’t yet subscribe to the channel
click on the subscribe button right here
and join a notification squad okay so
let’s get into it look for the longest
time if you talk to my dad my friends
everybody would say Pat is very
aggressive with his finances I’ll give
you a couple stories here one if I went
to Vegas and I had a couple hundred
dollars right this is one in 21 years
old when I go to Vegas twenty-six times
a year if I go to Vegas there would be
nights where I would lose fifty five
hundred dollars and one night I lost and
by the way I couldn’t afford to lose
fifty bucks but I lost fifty five
hundred dollars that night because I
would just go double double double
double though it’s gonna come back this
double I’m gonna double I’m gonna double
I lost 35 bet 70 I lost 70 bet one forty
bid 140 bet two eighty to eighty-five 65
sixty thousand twenty thousand twenty
two thousand bum I just lost thirty-five
hundred bucks and it was gone right I
was that aggressive guy I’d buy penny
stocks
because I would sit and I bought a Nike
stock once and I bought it at 27 and one
to 41 and I said oh my gosh I just made
this much money and then another guy
turned me on into a penny stock and he
said dude forget about this Nike stock
look at this penny stock if you buy that
success if this thing goes to $2 you
just your money just went 33 X you put
$10,000 that’s $330,000 this one kid in
our high school took $10,000 from his
dad turned into $160,000 based on penny
stocks everybody was talking about I’m
gonna be the next penny stock guy so
we’re all going for the marbles now once
I lost everything and I hit rock bottom
and I realized this whole aggressive
thing Pat what do you think no one can
get in your way you may need to readjust
your thinking so I became a cash guy
everything to me became about having
cash so now watch a story here what
happens in 2010 I’m looking for an
office space and it’s office space I’m
looking for I wanted a nice office space
I knew this city I liked San Fernando
Valley in California I wanted to be
closer to Woodland Hills right after 101
freeway I liked that shopping center
with what was the movie theater across
the street was it AMC I don’t know for
his AMC PF Changs so just a great spot
and so Marriott was right there I said I
want a building right here so my realtor
finds the location is the spot you’re
gonna love this thing I said I want to
deal I’m not paying full price he says
this is a deal let’s go look at it we go
inside to look at this place first of
all you could tell whoever that leased
this place out spend hundreds of
thousands of dollars of fixing a place
out the front lobby you come in marble
floor the desk that was set up was
insane the glass the way was set up
cameras everywhere the crown the the
finishes at the top and then you walk in
the conference from glass you press a
button you know you would have these
curtains that would close for privacy
you would have a drop-down with the
projector that would come out wiring the
tables were already wired TV set up over
here and as you make a right there’s a
presentation wall with glass inside
where you can put your trophies and
recognitions you got from Congress and
Senate and all these other people and
then you walk in and then you’re going
to the end office the CIO’s office it
was a sick office I look at so you gotta
be kidding me and I made an offer and
they accepted the offer I couldn’t
believe the fact they accepted the offer
what happens here I stay at this place
then I said who runs this place then one
guy comes upstairs one day and he’s
running a magazine he tells me who it is
and I started messing in who this person
is and eventually have to call on people
around says well this guy had two
billion dollars plus and
Marshall Holdings okay and he was going
for all the marbles
every cash yet he would buy commercial
properties commercial properties he had
a lot of locations in Dallas Phoenix I
think in California and a few in Chicago
he said I’m gonna be the Trump of SoCal
and I’ll be a billionaire this is it he
went all in everything here every cash
was all into real estate
he was never expected in a way to happen
when it happened phone he lost 90% of
his holdings whatever he had all the way
down buildings you should be 90 percent
rented it was 50% rented it was a pretty
bad situation here was a slice at and I
elected this thing I said Wow
pretty interesting what’s going on here
here’s a person that’s making a run at
being a billionaire and they flop is
that his fault did he do anything
different did he make a mistake what
would he have done differently and I
started processing this he was living in
a house 30,000 square foot house with a
casino inside his house when I say casue
now I’m not talking about two tables a
full-on casino like this is a rich man
as we’re talking about right so I came
back and our lives your life my life is
for you to learn from me for you to
learn from your parents meet alone for
my parents for us to constantly be
watching everybody and see what things
we can learn to pick up to do right and
to do wrong and Charlie Munger many
times was saying version look you would
always talk about the mistakes he made
with his kids and mistakes other people
made more than the things that people
did right so I sat and I said that
stayed with my mind saying Pat cash is
very critical but you gotta know when
you’re making a run for all the marbles
your strategy you got to trust some of
the principles you have in place so with
that being said I got a few items here I
want to show you so you can be thinking
about when it comes down to its castle
King today right behind me I have all
the dates of history of recessions we’ve
had in America okay now a lot of times
people say Pat what’s the recession
what’s the depression you know sometime
we don’t even know what a recession or
depression it’s actually very simple
recession is when a nation has a wide
economic decline that lasts six months
or more so if it’s a nine months it’s a
recession if it’s seven months it’s a
recession when the markets kind of going
like this six months it’s a recession we
don’t have a recovery if it goes for
several years three to five years it
becomes a depression that’s what we’ve
only had one depression in the history
of America
since 1929 the last one that we had now
knowing that how many recessions have we
had in America since 1854 we have had 33
different recessions since 1854 that’s
33 different recessions what does that
mean to you 33 and 164 years which means
one every five years we have a recession
every five years we have a recession let
me show this to you 1945 we had a
recession it lasted eight months 1949 we
had a recession it lasted eleven months
a member for years 53 we had a recession
lasted ten months for years 57 we had a
recession a lasted eight months look at
the gap again for years 1970 we had a
recession lasted 11 months that is a
decade right that’s a gap right there
that’s positive that’s good 1973 we had
a recession 16 months it’s a long time
real-estate took a big hit during that
time 1982 82 we had two recessions
during that period one lasted six months
it was the first one second one lasted
16 months in a two-year gap 1990 we had
an eight-month recession 2001 we had
another recession lasted 8 months look
at the gap 10 years again so we have two
of them that are 10 years here 2008 2009
mortgage crisis you remember that one
18 months if it would have got another 6
1224 months that would have been a
depression but it was a recession what
do we have next
we have not had a recession folks for
nearly nine years for nine years we have
not had a recession what does that tell
you
probably could happen today but in the
next 6 to 24 months we’re going to
Express experienced a recession it may
be 3 years but it’s coming now this is
the challenge that we’re facing here
there are people who think bitcoin is
forever gonna go up and I’m gonna make
my billions and this is how I’m gonna be
on the cover of Forbes magazine being a
richest person in the world right there
are people that think you know the real
estate market is gonna be perfectly
right now let me put everything happen
to the real estate market now if you go
long term and you average it out real
estates gonna give you somewhere between
4 to 6 percent if you go a long long
term if you go long term an average out
of with the stock
market you’ll see between eight to
twelve percent depending on how to
market does right but regardless of what
I’m telling you if in the back of your
mind this concept of Pat I don’t want to
think negative I think positive and I’m
optimistic I used to think everything
was about positivity until I realize I
am very positive and optimistic about
things that have control over but things
you don’t have any control over you
can’t fully be thinking positive and
optimistic I understand having faith
I understand praying I understand having
a higher wall behind you but you’ve got
to be thinking about the what-if right
because this leads me to the next point
here when you think about risk-taking
everybody falls somewhere in this
category of risk-taking right you got
somebody that is so conservative they
will never do anything with their money
ever invest you can’t even convince them
to put in the bank because they don’t
even trust the bank because they believe
our beginning is around the corner you
know any people like that typically it’s
our grandparents and they’re so afraid
because of a lot of bad things that
happen then you have people that are
conservative I believe in bonds I
believe in having some conservative
balanced funds I believe in this I
believe in that everything is just
somewhat conservative and you know
people that are assertive they do
research they study let me look into
this Bitcoin thing what is blockchain
what is cryptocurrency what is this
insurance policy what is this stock what
is this doing house real estate this guy
told me about I’m messing to Austin
she’ll let me look into Austin let me
look into Nashville let me look into
this community
Victorville they’re talking about
California that maybe it’s becoming
bigger because it’s getting closer to
Vegas should I consider putting my money
in door maybe Palmdale well let me look
at this stuff but they’re a server
assertive I’m learning I’m trying to
learn they didn’t have the guys that are
aggressive you know I’m gonna go for
this and I’m gonna go for this and I’m
gonna go for this and I’m gonna go for
this
these guys they can have a big hint
absolutely it could have a big kid but
they can have a big loss as well and I
last but not least this is just
absolutely dumb category this is this is
the people that this is the people that
actually believe they can fly you know
this is this is like what was that one
song Mario by a/r Kelly remember are
Kelly or until he had a song and it went
something like this by the way this is
this is how he would sing if he was
singing to these types of people when
they invest this is what it would sound
like he would say
he believes he can fly he believes he
can touch the sky he thinks about it
every night and day he spreads his wings
and crashes away because that’s what
happens to these guys that think
everything is possible
listen I believe everything is possible
I’m very comfortable trusting a plane to
fly me to another place I was in India I
don’t mind a plane fly me over the you
know ocean to go to India do I trust
myself to go jump off the top of a tower
say listen I am such a positive
optimistic guy that I want to do this
thing so fast that I’m gonna fly even or
Kelly’s not right when he’s saying that
song so how do we balance these things
here right by the way remember this I
must say this quote very slowly and
hopefully it resonates one time here we
go what sells doesn’t always work and
what works doesn’t always sell let me
say one more time what sells doesn’t
always work what works doesn’t always
sell what do I mean by this
well what sells imagine if I get up and
I sell you concept that’s what we’re
gonna do at that I sell it so good but
doesn’t necessarily work and there’s
another thing that works but it’s so
tough to sell okay it’s so tough to sell
because people say now that’s boring I
don’t like that part no Doubt’s are born
try to know and set aside your emotions
and be able to process everything
logically and say this makes sense or
dude this guy’s just trying to sell them
and he sounds way too excited it’s got a
nice salesman smile and it looks very
good I’m just not buying your
because what sells doesn’t always work
you’ve got to know how to decipher
between the two typically the way you
learn how to do this is after a lot of
people take advantage of you then you
start having that eye and say let me
watch everything out there so now having
said this let’s go over here remember
how I talked about all this recession
that took place in 2009 when a market
crashed here’s what took place
Ford stock went roughly to add our
matter of fact it was under $1 imagine
if you could buy that stock on that if
you had some cash setting aside what if
you could buy think about if you could
buy 10,000 shares out a buck that’s
10,000 bucks
nine years later you would have 111 to
$110,000 $110,000 okay
Citigroup 199 bucks $74 to be visiting
went down to 13 I’ve worn a Disney shirt
went down to 13 today 103 dollars give
or take B of a went down to 250 32
dollars today that’s 12 X 13 X Amazon
with 34 today’s 1500 now that’s an
anomaly that’s a different story
Nike was 12 today 66 I’m showing you
these things because this is not a 6%
return the 6% return means it takes 12
years for your money to double we’re not
talking about that kind of stuff but
this happens if you anticipate a
recessions about to come up so having
said that let me show you some companies
that the companies here that have the
most cash take a look at this
Walmart’s got eight billion in cash
today Procter & Gamble 15 billion Pepsi
17 Amazon 30 coca-cola 27 G 44 alphabet
which is Google 95 Microsoft 133 Apple
261 billion dollars of cash is what
they’re sitting on by the way this is
from a Business Insider article which
was December of 2017 Apple today give or
take they’re at 285 billion dollars
today and I’m not even talking about the
old offshore dollars that they find out
how much some of these companies are
sitting on I’m talking money in America
that they have to report because they’re
public companies publicly traded
companies right and by the way something
for you to be thinking about Walmart
look at this number this is such an
interesting data it’s a complete
different topic but watch this year
Walmart has eight billion dollars in
cash they did four hundred eighty five
billion dollars in top-line revenue last
year that’s more than Apple and Amazon
combined on their top-line revenue but
they only have eight billion in cash
Amazon has four times more cash than
Walmart why because Walmart’s retail
Walmart’s retail this is why Walmart is
so worried about Amazon Walmart needs
2.3 million employees to function Amazon
only needs three Hanna 41,000 and Apple
only needs 123 thousand and they got two
hundred eighty five billion dollars in
cash the question becomes this for all
these people that say shouldn’t have a
lot of cash
do you think the people in the boardroom
of Apple that say man let’s have a lot
of cash you think they’re dumb
you think Amazon Jeff Bezos is dumb you
think Tim Cook is dumb you think people
who run Microsoft are dumb you think
Bill Gates you think you know Google
guys said gay and all these guys you
think they’re not that smart
you better believe they’re very smart
now why are they stashing so much cash
away today probably because they’re
anticipating every session to come up
and when this recession comes up they’re
hoping a recession comes up because when
the recession comes up some of the
companies that making bad mistakes they
can pick them up on 40 cents on a dollar
20 cents on a dollar and that’s how they
keep getting bigger and bigger and
bigger because they have cash so what
does this mean to you look let’s go back
over here Mario come back with me over
here on this on this risk factor here I
want you to know Mari I’m gonna go back
and come back I don’t I don’t want I
don’t want you to think I am telling you
to be here by the way if you do want to
be extremely wealthy one day if you do
want to be possibly a Decca millionaire
100 maybe even the B word you do need to
be kind of here you do you have to take
some risk that maybe you have a very big
risk but at the same time I’m not a fan
of people who recommend saying only keep
5% and out of your million dollars 50 of
it keep cash everything else put in
invested I’m not a fan of that here’s
why I’m not a fan of Mari come back with
me over here here’s one not a fan of if
based on what I’ve showed you this is
not a myth
I’m not selling you this this is facts
this is 33 recessions and since 1854
it’s a fact one every five years is a
fact 2008-2009 oh one ninety how long do
you like these are facts these are not
myth these are not ideas these are not
well could have piped these are purely
facts if you look at this you be the
judge of it based on where you’re at on
that risk side when do you think the
recession is going to take place you’re
gonna say 2025 because in your mind you
want it to go for another seven years
where the market keeps going up or are
you thinking back there saying hmm I
think something’s about to happen
and lets you say something’s about to
happen great don’t get scared about it
you see rich people are not scared about
it the people that I’m talking about
they’re not scared about it they’re
excited about it they’re ecstatic about
it they’re sitting on saying oh my gosh
this thing’s been going and delaying for
eight nine years the longer it delays
the worse it could be now this is not me
projecting and saying I can’t wait for
another one to happen believe me I’ve
been going 11 top line revenues quarter
as a company and we’re doing very very
good I’m gonna be also be affected by
this but the message I’m giving to you
is realize cash is still King this is
not in the past it is still king keep
your cash don’t get too aggressive don’t
get too crazy don’t go to the dump site
don’t listen to our Kelly song thinking
you can fly you can’t fly nobody can fly
but sit there and strategize yourself to
say oh my gosh in the next year two
years three years five years something
could happen and when it does oh my
goodness I’m going to capitalize look
somebody said well Pat listen it’s kind
of deceptive I hope everybody watches
this video but they won’t you know why
because cat videos do better because
somebody’s sliding and hitting their
back and other people laughing at them
it just does better because big butts do
better because six-pack just does better
on videos because pranks do better jokes
do better than a video this is boring
this is money and then people wonder why
so few people are wealthy this isn’t
something new I’m telling you this is
not something I’m telling you Berkshire
Hathaway knows this they buy things on
sale they know this stuff very very
wealthy successful investors fully
embrace this concept the question is are
you going to embrace the concept but
he’s still going to be way too
optimistic about the fact that
everything’s gonna work out because if
this is right in the last seven years
the longest time we’ve gone without a
recession has been ten years and it’s
only happened one time
and we’re at nine years right now that’s
a recession so we got one more year
until recession comes are you ready for
I don’t know if you are go based on this
so being sort of sort of a little bit go
do your own due diligence
I got links below by the way everything
I said to you today I got a PDF for you
so go below click on a link it’s in the
description go to the website print out
the PDF the PDF is gonna have other
links on that as well read educate
yourself and then make your decision
based on that to find out how you’re
gonna capitalize what the cash you have
to go out there and when the opportunity
comes along you can take advantage of it
again questions thoughts comments
comment below I want to hear from you
and by the way for you value trainers
out there do you like this style more or
do you like the other video when we put
all the other stuff up and I don’t write
on the board I want to hear from the
true value trainers which one do you
like more again thank you so much everybody take care bye bye
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