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If we breakdown the “SimplenCheap way” It comes down to buying assets that turns out cash that you can ether reinvest into the asset or use to buy another asset that turns out more cash.

It also comes down to limiting the ‘ cash leaks( liabilities). If your making 25 million per year but you spend 24.99 percent  each year are you really more well of then someone who is making 100k but is living off of 20k? Trim the fat by keeping costs low.

Everything we do falls into one of those two actions ( in regards to making money.)

Buying Assets:

When looking at purchasing assets pay close attention to how much you have pay to generate a satisfactory return on investment. if you spend 10 to make I that is a return of 10% if you spend any more than 10 dollars you are officially you are officially cutting into your profits knowing how much to pay is the key to making sound business choices.

Assets are more than just stocks they are copyrights, books, services you sell, skills you teach, and many more things. They key is to have as many assets as possible spread out over different types of asset classes. Warren Buffet, called this the double barrel approach to business. The cash generated from having many fully owned businesses, allows you to buy stakes in businesses ( from the stock market) that turns out more cash, that in turn allows you to buy more private businesses its an never ending cycle – The kind that we want.

Portfolio Management:

We picture our portfolios as individual business.  we measure out business success on return on invested capital ( efficient business practices) and how much we are paying for  those earnings ( earning yield). If we can keep those numbers high we will do well in the long term.

What you can learn from this site: 

We try to walk you though not just the checklist but also the details. The how, when, and why.

We will go over investing opportunities , developing businesses,  how to marketing said businesses, and anything in between.

Here are is a list of the articles you MUST read: 

What is Value Investing?

Why We Invest the way we do

Margin of Safety: Your Safety Net

The Useless Tree and Value Investing 

You Don’t have to be a Genius to Make Money in the Stock Market 

Closing,

Because the law of averages dictates that we all can’t be rich, I can only will most of you the best of luck on all your future endeviours.  For those of you however that are smart enough to choose to stick around here, you will have a better shot then most at getting Scrooge Mcduck rich.

Till next time,

Bang.

– Jon