In this workshop-style presentation, Mark Moss introduces the concept of "lazy" or "dormant" capital—money tied up in home equity, retirement accounts, brokerage holdings, cash, or business equity that is either doing nothing or only a single job (e.g., passive appreciation). He guides viewers through a quick audit to estimate the total amount of such capital they hold. Moss then explains why keeping capital idle is costly, using the economic notion of the velocity of money to illustrate how a dollar can generate multiple rounds of wealth creation when deployed across several jobs. He presents simple scenario math: if a million dollars remains at an 8% growth rate for 20 years versus activating 50% of it to earn a 20% compound annual growth rate (through leveraging and arbitrage), the difference can be tens of millions of dollars. The core levers the wealthy use—credit, equity, leverage, and arbitrage—are described, and Moss shows how combining them transforms "lazy" capital into "velocity" capital. He provides a concrete example called the "strike convexity trade," where a homeowner borrows against home equity at ~8% to purchase a cash‑flowing, dividend‑paying preferred stock linked to Bitcoin. The trade yields positive carry (interest arbitrage), tax‑deductible debt (tax arbitrage), inflation‑adjusted cost (inflation arbitrage), and upside potential from Bitcoin’s price appreciation (convexity). Finally, Moss outlines a personal treasury audit framework consisting of three engines: a base engine (collateral map, liquidity stack, risk policy), a supercharger (debt and tax depreciation roadmap), and a velocity engine (activating portions of dormant capital to perform multiple jobs). The overall message is that by auditing and strategically deploying dormant capital, high‑net‑worth individuals can dramatically accelerate wealth creation without increasing work hours.
Chapters
All right. Put a, put a thumbs up, put a thumbs up in the box. If you have money sitting in either home equity, a 401k, IRA, uh, some sort of a stock brokerage account, a savings account, Bitcoin, cash, business equity, any of those things. Yeah. Almost everybody. Almost everybody. Now, that's what I call lazy or dormant capital. Why is it lazy? It's lazy because it's capital that's doing only one job, maybe zero jobs for some of you. Now, like most people, we're going to get to this in a second. We're going to figure out what your number is. But maybe, like I said, you may be sitting on $100,000, maybe some of you millions, and you don't even know it exists. So I want to walk you through that and show you what happens if we were just to activate even just a little bit. Okay. So here's the audit. There's 5 sources of dormant capital that we'll walk through right now just for time. So I want you to fill this out or write these numbers down as we go through it real quick. Don't overthink it. Just put rough numbers. Just put rough guesses like this is— you're not, you're not filing your taxes right now. This is just for our workshop here. Okay. So number 1, think about your home. How much is your home worth? $200,000? $500,000? $800,000? Okay. So how much is my home worth? How much do I owe against the house? I owe— it's worth, I don't know, $800,000. I owe $400,000. So I have home equity, $400,000. Write that down. Let's say I have retirement accounts. I have a 401, an IRA, something like that. SEP IRA. All that money, right? It's capital. So I have $600,000 in a 401. It's locked up. Yeah. I mean, it's earning money. It's doing a job. It's not, it's not zero. It's not cash. It's earning whatever, 8%, but you can't deploy it. Okay. Write that amount down. Then we have like investment accounts. So if you have a brokerage account with stocks, ETFs, maybe some Bitcoin in there, things that you're just holding, you're not selling it, you're not deploying it, but it's sitting there growing, doing its thing. So maybe you have $400,000 in your Bitcoin, stocks, ETFs, things like that. Again, you're not selling it. It's doing one job. It's appreciating. Write that number down. Now, maybe we have cash in savings. Hopefully, some of you have savings accounts, CDs, money market accounts. Maybe you're earning 1%, 2%, 3%, maybe 4% on it while inflation is running 10%. So you're losing money. Whatever that amount is roughly, just write that number down. And then some of you, not all of you probably applies to this, but if you have a business, how much is that business worth? Not revenue, but like equity value. Like if you sold it today, maybe it's like a small business, maybe it's hard to sell, but like, what do you think the equity is worth in that business? Write that number down. Do you have a $500,000 business, a $300,000 business, a $3 million business? Write that number down. Now we want to do this real quick. Again, this is not comprehensive. You're not filing your taxes here. Just write that number down and then add it all up. Now add that up real quick and then just go ahead and just drop the, uh, if you want, drop the amount in, in here, drop the amount of what we call lazy capital in the chat. We'll get to the lazy capital in a second here, but just drop that number in. Is it $200,000, $500,000, $1 million? Here we go. $50,000. I see. Okay. $465,000. Okay. $1 million. There we go. $560,000, $800,000, $750,000. Okay. $250,000. $555,000. $3.2 million. Okay. $4.3 million. $800,000. $1.2 million. Okay. $2 million, $3 million, $4 million. $20. John, you're in the wrong room, man. $20 bucks. Can't do much with that. Uh, $900,000. Okay. So good. Just making sure you guys are doing that. Let's keep going through this. Okay. So I want to show you what lazy capital is costing you. What does that mean? Now, first of all, to understand what I'm talking about lazy capital is, here's the problem, right? So for a lot of us, we're probably maxed out on how much revenue we can make. We're working already 40 hours a week or 50 hours a week or more. We have a side hustle, a side job, whatever, maxed out, can't work more, don't want to work more, but your money Your money, those amounts that you just dropped there, is doing zero jobs or one job. You're exhausted, but your money is lazy. You're thinking of getting a second job or a side hustle, but your money just does one job. So I use this equation, it's called the velocity of money. So in economics, the way the government reports the health of the economy is velocity of money. It measures how much economic activity there is. GDP, let's call it that. But divided by how much money there is. So, for example, if I, if I take a $20 bill and go buy lunch, then the guy, the guy at the lunch spot gave the $20 to his food supplier. The food supplier gave the $20 to the gas station. The gas station gave the $20 to the person stocking the shelves, and that person gave it to their employee. Okay, now that same $20, one $20 bill moved 5 times through the economy. So it created $100 of economic growth, but there's only $20. Now, the velocity of money measures how fast that dollar moves through or how much wealth gets created from one $20 bill. So we can do the same thing. We can think about how much wealth have we created, just like the government measures the economy. How much wealth have we created for how many dollars have we put in? So just like that $20 hypothetically moved through 5 different hands very quickly. How many investments can we get $1 to move through at any given time? That's velocity of money. That's how we get our money doing 2 jobs or 3 jobs or 5 jobs instead of you having to do that. That's what I'm talking about by velocity. Now, we saw a bunch of numbers there from $20 up to $3, $4, $5 million, and it's doing one job and it's, it's growing. I mean, you got it in the stocks, it's in your house. So that money's in the house. The house is growing. The money's in your 401. The stocks are growing. It's doing a job. Not bad. But what if that same million, instead of doing one job, did 5 jobs at the same time? It could grow 5 times as fast. It could be collateral. We could borrow against it for tax-free liquidity. I could deploy it to that borrowed capital into cash-flowing tax-advantaged assets. I could reclaim taxes via depreciation. I could deploy those tax savings into more assets. My original capital never gets sold. It compounds uninterrupted, creating generational wealth. If I got one, the same dollar, same $1 million doing 5 jobs, maybe instead of growing to $15 million, it grows to $84 million. We're talking like a $60 million gap over 20 years. And a lot of you are shocked by these numbers, but maybe a lot of you haven't really thought through what compounding means. We're going to get to that. But the thing is, is that you don't have to activate all your capital. But let me show you what would happen if we activated, just say, 50% of it. So let's say scenario number 1, and you can work with me. So you have your, you have your numbers there, just do the math. Take 50% of the number that you wrote down. So if you wrote a million down, put $500,000 You put $500,000, put $250,000. You got that. Just put whatever 50% is. Scenario 1, you activate 0%. So, your money, it just continues to do one job for 20 years. It's growing at 8%. Or scenario 2, we take 50% of that money. So, the half of whatever number we had. And instead we get it to, um, do a second job. We run it through the Velocity Engine. It's doing 5 jobs over 20 years. It could do another $40 million just by activating 50% that's doing nothing. Like, and so what I mean by this is like dormant capital. So I have my home, my home is going up by 5% a year. And I have equity in the home and whether the equity sits in the home. So let's say it's a million-dollar home. I have $300,000 of equity. The home's going up at 5% a year. Whether the equity stays in the home or not, the home's still going up at 5% a year. That's what we're talking about. But let me show you what happens if we don't move it. So here's what it costs us if we do nothing. Find yourself in this table based on this dormant capital that you just found. If you have $1 million in equity right now, you could do nothing. That could probably grow to $2.5 million in 20 years. Or I could take half of it, activate 50% of it at a 20% compound annual growth rate, and I could grow to $20.7 million in 20 years. That's an $18 million difference just by activating 50% of my capital. I didn't work an extra hour. I didn't make an extra dollar, but it's an $18 million difference. If I have $2 million in equity, I mean, do the math, right? It's, uh, if I had $20— if I had $2 million in equity, then it's, uh, $5.3 million in 20 years. Or if I activated 50% of it and I let it compound at 20% for 20 years, that's, that's a $36 million difference. Now, this isn't theoretical. This is math. This is just math. The law of compounding. A lot of you don't really understand what that means, which is why we don't sell our assets. We don't pay taxes. Every single day you don't activate your dormant capital, again, I broke it down, you're losing $1,100 every single day. But let me show you what it looks like when you do activate it. So, there's 4 core tools that the wealthy use to accelerate wealth. We use credit and that's what funds our acquisitions. We use equity and that grows through our appreciation. We use then leverage which unlocks that growth as collateral and then we use use arbitrage which captures the spread, the spread profit. So the profit gives me more credit capacity. And then I just, I repeat that. When I put all 4 together and I know how they interact, it's what separates velocity capital from lazy capital. The reason why you have to work so hard is because your money doesn't. But we want to end that. So we want each tool and each tool alone is useful. But when we combine them, they're transformational. Let me give an example of one way that we can activate some dormant capital. So, this one, maybe today is not your favorite one as of today, but I like it. I call it the strike convexity trade. So, let's just say hypothetically, you have a home, a lot of you said you did, and in that home, you have some equity. So, you decide to use a— I decide to get some of the money out of my equity. How do I do that? Well, I could refinance the home, I could do a home equity line of credit. There's a bunch of ways we can do that. Maybe you don't have a home. Okay, so then get a business line of credit or use a credit card, like fill in the blank, you know how to get credit. But I could borrow against my home at, let's say, 8%. So I take $250,000 at 8%. And then I take that $250,000, I deploy it into this strike convexity trade. Now, what I'm going to do is I'm going to buy this strike position. It's a stock, it's a preferred stock. And the first question you're probably asking is, but wait a minute, now I have this debt that I have to pay at 8%. Sure. But the asset that I bought is a cash-flowing asset. So what happens is the asset is now bringing me cash. If I borrowed $250,000 at say 8%, it's going to cost me $20,000 a year. But when I buy Strike, it's giving me income every year of say $23,000. So once I pay the debt, I'm still with a positive 3%, but that's, that's the arbitrage. But that's before we even put the taxes in. Now we can talk about the payment on the, on the, on the loan is tax deductible and the income I'm receiving is not actually income. So that's not taxed either. So it's like maybe like a 5 or 6% arbitrage. So now just for sitting in this position, I'm making 5 or 6% per year just for opening up the trade. Now there's the convexity is the potential upside. So, if Bitcoin continues going up over, let's say, 5 years or 10 years from now, which I expect it to do, we'll talk later about where is it going to be in a month or two. I'm sure you want to know where I think it's going to be in 6 months or a quarter. But in 5 years or 10 years, do you think it's going to be higher than it is today? Okay. So then what I can do is I can play the long call option. I'm making a 5% or 6% positive spread, earning positive cash flow from waiting. And then if Bitcoin gets to $500,000 in 5 or 6 years or 7 years or $1 million in 6, 7 years, whatever, it could turn, then it can convert into common stock that could be worth $600,000, $800,000. So, I borrow $250,000. I have dividend-paying stock that's paying for the debt plus giving me a positive carry, $9,000 a year in positive carry for waiting. Over 5 years, it's made me about $50,000. And at that time, assuming Bitcoin continues to grow over the next 5 years, I can convert it over and maybe make $400,000 or $500,000. And it cost me $0 out of my pocket. $0. I use that from debt. Now, in order to do this, this is like interest arbitrage. So I'm earning 9%. I'm paying 8%. That's net positive. I'm making money while I wait. I'm using tax arbitrage. So it's 8% interest that's tax deductible. So it's like a 5% after-tax rate. I'm using inflation arbitrage. The beauty of this is that the debt is 8%, but inflation shrinks the cost every year. I get to pay back with cheaper dollars. I'm using the asset convexity. So Bitcoin has been growing at 50% a year, not every single month. I can't wait to see the comments or the questions in the Q&A when we get to here later, but not every month. But when you look at it over 2 years, it's 47% over the last 2 years. Well, as of about a week ago. No liquidation risk because I'm borrowing against my home. So there's no margin call there. There's no forced liquidation. So this is one example of how we can engineer wealth, right? This is how treasurers think. And this is just one move. Now, on a personal treasury audit, we build 3 engines. The base engine, the 300 horsepower, that's your collateral map, the liquidity stack, the risk policy. We do the supercharger, right? This is the debt and tax depreciation roadmap. And then we put on the velocity engine so we can figure out how we can activate 10, 20, 30, 50% of lazy dormant capital and make it do 2, 3, 4, 5 jobs.
