What I Am Investing In Right Now

Okay, so, hey everybody, I'm Ryan Daniel Moran and I run a podcast called Freedom Fast Lane which is on capitalism.com and it's about building businesses and investing the profits. So today what I wanted to share with you was a couple things that I'm investing in and what I focus on when the market is at a high. So as we record this video, the economy looks pretty strong, jobs numbers look really good. The stock market is at all time highs. So where is there opportunity? Where should people be looking for value? And there's a couple things that I have to say about this. By the way. I'm no investment expert or advisor. I specialize in working with entrepreneurs. And entrepreneurs tend to be more risk tolerant. We tend to get bored with traditional ways of investing. So we're looking for more exciting things. And so that's where, that's my background and that's what I kind of specialize in. So I'm taking this perspective from the perspective of somebody who owns businesses. And you know, I don't want to just get 3 to 4% on my money in a CD or in municipal bonds or something. So here's what I look for. Number one, there's always mismatches in value. Always. So right now there's a lot of money flowing into growth stocks. The Netflixes of the world, the apples of the world, and if you were to go back five years, that would be a really good strategy. But today I'm a little, I am a little spooked to buy into those really big growth companies because they've had such high runs and now the market's at all time highs. I'm a little bit spooked to buy those types of companies. So where is there a mismatch of value? I look for dividend paying stock and ones that have been really beat up in this market because for most investors it didn't make sense to buy dividend paying stock because you could make more money in the growth stocks. So as I record this right now, if you look at AT&T as an example, AT&T is using a lot of their capital to buy up other companies and they're very cash flow rich. They have like $25 billion in free cash flow a year. But most importantly to an investor, to people like you and me, they pay a six and a half to seven percent dividend, which is nuts, right? If you could, if you could park your cash in a bank and get 7% or 6.5% on your money, that would be absurd. Now this isn't as safe as putting it in the bank, but it's backed by a company and a company that has, you know, a 50 or 100 year track record. So I personally like dividend paying stock and I have a whole strategy around dividend paying stock that I talk about on the podcast. But I like cash flow companies, I like buying more cash flow. So dividend paying stock are what I look for. So that's number one. Number two, the thing that I look for the most, the thing that I look for, where I get really what I consider my best deals, are what's called private placements. Private placements are private investments. That's not you investing in real estate, but you being the capital behind someone else who's investing in real estate. The problem with this is you have to know somebody. You got to know somebody who's raising money for something. But if you can get in on these, they sometimes can be really, really great deals. So for example, I recently invested into a private placement that was to buy a manufacturing company and I saw about a 50% return on my money in two years. That's pretty good. Similarly, I just participated in a private placement deal that is buying up mobile home parks and I'm getting 9% preferred rate of return plus a piece of the cash flow, plus a piece of the equity, plus when the business refinances in a couple years, I'll get my principal back, I'll get my investment back and still ride the cash flow and the equity. And those are my favorite deals right now, the deals where you get your principal back. So in a couple years you get all the money that you put in, but you're still getting cash flow and upside. That's what I really like right now. And that really only comes from private placements. But you got to know somebody. So one of the things that we try to do inside of our mastermind, which is for entrepreneurs and people who are either getting ready to sell a company or people who have already made it are looking for investment opportunities, is we look to partner up people with some of the private placements that are in my network or the capitalism network. So I really like private placements as the second place. And the third thing that I personally am doing right now is I'm putting as much as possible into my life insurance policies. And there's a couple different life insurance structures for this. And I'm not an expert in this. I partner with the guy who is, I think, one of the best in the world on this. And basically a life insurance policy, when done well, what it allows you to do is participate in market upside, but never participate in the downside. So you're riding, if the market continues to boom, you're continuing to get all this upside, but you have a floor which is 0%. So if the market craters, you don't lose your principal, you just stay flat. So while everybody else is freaking out about the next recession, you're riding pretty. And the beauty of that is that you can still have access to that money that's in the policy. So you can go buy more apartment buildings, or you can put it in the stock market, or you can invest in that next business. So if you combine these different strategies, it can get really effective. So one of the baselines that I have in my portfolio is that insurance policy. And then I use that to go buy other assets in the event of a downturn. So it's like my second bank account. So these are three of the things I look for. I look for cash flow inside of the market and that specifically comes from dividends. I'm looking for private placements where you have to know somebody. But if you've got connections somewhere in a mastermind or within like a networking group that you're a part of, that's available. And then number three is I personally am using certain life insurance policies to get tax free upside without any downside and using that money to get to use that capital to buy other assets. Boy, that was a meaty video. I hope you stuck with me. If you did, I hope it was valuable for you. And if you are an entrepreneur who is either building a business that you are hoping to sell one day or you're getting ready to sell, or you've already done well and you've got money sitting on the sidelines, I think you'll find value in meeting some of the people that we do private placements with or connecting with some of the opportunities that we try to highlight on capitalism.com so hope you found this valuable. Thanks for watching and sticking with me and I'll talk to you soon. Take it easy.

Sam.