how to invest your way to millions..

What's up? Today we're going to go through the simplest way to become a millionaire. Now I think the best way to become a millionaire is to build a business and invest the profits. I focus on helping entrepreneurs build businesses. I'm best known for helping people make their first million as an entrepreneur. But the second part, investing the profits, is something that anybody can do. And it all starts by looking at what you use every day and spotting trends before other people see them. All right kids, let's say you've got 10,000 doll to invest right now. Where are you investing it? Chocolate? No, chocolate will rot your teeth. But if you put it into Hershey's stock, they pay a healthy dividend.

How do they make their profit?

By rotting other people's teeth.

Dad, is that ethical?

That is not the purpose of this exercise. I'm very disappointed in you for asking that question. So we just popped over to Target, which is on my watch list right now. I'm not sure how I feel about Target as an investment right now. They peaked at 260 a share. They're now under $100. I've owned Target for a long time and now I'm thinking about buying more. Why would I do that when the stock is coming way down? Cause they're still super profitable and I still shop there regularly. And now I'm thinking, okay, at what point is this stock too cheap to ignore? Right now they trade at 10 times their earnings. You could barely buy a business off the street for 10 times earnings. So now I'm starting to think has the market gone too sour on Target or is there a real story here that I need to pay attention to? If I can figure that out, I'll have the eye on making an early investment that other people don't see. I geek out on stories like this quest started by Tom Bilyeu like In his Kitchen gets acquired by a company called Simply Good Foods. Simply Good Foods also owns Adkins. They also own this one here. Only what you need. They own those three brands. And then if you look at a company like this, this just emerged out of nowhere. This is owned by a company called Bellring Brands and they're doing friggin great. Look them up. Look up the chart of Bellring Brands. If you had put a few thousand dollars into that baby, but you would have had to see the trend early, you would have had to been a customer and like it and notice your own shopping behavior to be able to predict that a brand like that would have this rocket ship growth in just A couple of years. This is an interesting one to watch. Freshpet. Have you seen this? This is publicly traded and they're still a pretty small company, but they're growing and they're everywhere and they're running ads. This is one that I'm just watching because they just became profitable and I'm just watching. What is this company going to do? Are they going to become huge? We'll see. I buy them. Do you buy them? They're publicly traded. Might be worth watching. When I look for investments, I'm not just looking for something that's going to go up in value. I'm looking at a story. I'm looking at who runs this company. What's the growth plan for this company? Here's a great example. Mark Sisson started Primal Kitchen when he was in his early 60s. A few years later, he sold it for $200 million. Again, the best way to become a millionaire, start a business and then sell it for a whole whack ton of money. But guess who bought this? Kraft. Kraft Heinz is publicly traded. So if you want to own a piece of Primal Kitchen, you can do that right now by buying a little bit of Kraft Heinz stock. You've probably seen these on the shelves everywhere, these Celsius. This is a fascinating story. This is a publicly traded company that got creamed. I think they went bankrupt. And then they brought in some new leadership that turned the company around. So if you love this product and you want to be a part of its growth and you see that a new founder or a new CEO has come in and turned the company around and you start seeing them all over the place and you like the product, you can be a part of that growth. And now this company is profitable. They're buying other companies. That's the kind of stuff that I look for. And then I get really excited about investing in Hu Kitchen, started by my buddy Jordan. And Jordan built this up to a really big company, but then they were bought by Mondelez. Mandalays is a snack company. So if you see trends of food that you buy, well, there's big companies that want to be a part of that growth. If you own that company, then you're having a small piece of the success of the brands that you already buy and enjoy every day. That's the story I look for, is these big companies who are buying up the brands that you and I love and we can own a small piece of them. JoJo's. They came to one of our events@capitalism.com when they were a tiny little company now. They're all over the country. They're doing a fantastic job. Zevia. I wanted to invest in this company because I drink them all the time. But then they changed the formula and it was terrible. Now, as a consumer, I know that this company is not going to do well when the product goes to hell. And so I didn't buy the company. And they're really suffering. This could have been a really bad investment. But since I used the product, I had an eye that nobody else saw. As a result, I avoided a big loss. I'm going to show you one of the best investments that I made in the last 10 years. And this was such an obvious move to me, but you had to be looking for it. So we're pulling up on it right here. Costco. Everybody I know who shops at Costco loves going to Costco. I love going to Costco. And when Covid happened and the whole world shut down, that was a buying opportunity. Now, if you were a Costco member, you knew that everybody who shops at Costco was just gonna go there more during COVID So that was one retailer that was not gonna go away. So when the market took a poop, it was so obvious that a few companies were going to stay around. A lot of them were, I don't knows. But a company like Costco was gonna last for a long time. My favorite story is Kellogg's, because Kellogg's has been around for like 100 years. But two years ago, they split into two companies. And the snack foods company with like the Pringles and the Cheez its, they got acquired by Mars. They don't exist anymore. But the cereal line is a startup again. They're a tiny little company and they're traded under KLG. Kids, eat your fruit loops.

But it's got Red 40. Yeah, that's linked to learning disabilities.

Kids. Red 40 is also cheaper than the natural ingredients. That's one of the ways that Kellogg's pays us such a profitable dividend.

Isn't our house more important than our portfolio?

Sweetie, we're also shareholders in UnitedHealthcare. It's okay. Eat up. Could I get a grande almond milk latte? So a couple things just happened there. Number one, we're at Starbucks, which most people have gone to before. Starbucks is a really interesting company to follow right now because. Because they've lost a lot of brand equity and their stock has come way down. But then they hired a new CEO, and that new CEO, Ryan Nichols, used to run Chipotle. And Chipotle went way up under his leadership. And he has a plan to turn Starbucks around. So is Starbucks gonna be able to turn things around? If so, now might be a time for you to look at a company like that and say, if I love this company, do I believe in this new CEO's vision? They pay a dividend, they're super profitable, and now they're following a very interesting new vision. This is how I see the world. I'm not just buying products, I'm buying into stories. I'm supporting someone's vision. I'm being a part of someone's impact on the world. Did you notice something else that happened in there? I paid with my phone and believe it or not, most of the world still does not do that. So I look at companies that are on the cutting edge of how people are transacting. One of my biggest investments right now is in PayPal, because PayPal has a function where if you have a PayPal account and you use it to pay with your phone, they'll give you up to like 6% cash back. That's enough for people like me to go, I'll use PayPal for everything. And I know that that's their plan to get people in my age group to switch over from using Apple Pay or my Visa card to use PayPal to get more cash back. And I think, huh, what kind of a trend is that going to create in the world? Is that something that I believe in? And in my case, it is. And PayPal is one of my largest investments as a result.

Dad, can I watch another movie on Netflix?

No, sweetie, you've watched more than enough TV today.

But dad, for shareholders.

All right, good point. Just make sure you watch the ads. Do you remember when you first got a Netflix account? Well, in the last 10 years, since 2015, that stock was trading at $80. Now it's trading at $1,200. My daughter loves movies. My son loves wrestling. As a family, we invest in the things that they love.

Is wrestling real?

Yes, son. The profits are very real. Last year, WWE merged with UFC to form a new company called tko. They're publicly traded and yeah, we're shareholders. All right, kids, what did we learn today?

Red40 is good for you.

Correct.

Wrestling makes money.

Correct again. You two are gonna make some great capitalists. Alright, let's run to the car. It's time for our ninth Covid booster.

Dad. Covid's over, sweetie.

We're Pfizer shareholders. They pay an 8% dividend. Now get to the car. So what did we learn today? Whether it's the tech that you use, the stuff you buy for your pets, the supplements you take, or the subscriptions that you subscribe to, every dollar that you spend is a clue. And if you put as much focus into owning the things that you spend money on, you'll usually come out ahead over the long term. I think the fastest way to become a millionaire is to build a business and invest the profits. Today we talked about the invest the profit side. But if you want help building your business, we specialize in helping entrepreneurs build million dollar businesses. So if that's you, subscribe to the channel and I'd love to support you on your journey. I'm Ryan Daniel Moran with capitalism.com, thank you for being here. See you on the next episode. Take care.