Christian Osgood breaks down how equity builds wealth: you need cash flow to survive downturns, liquidity to buy more equity, and equity that generates cash flow. These three pillars work together. Rotate between them and you stay rich.
Chapters
Equity will get you rich. Unlike my first mentor, you need to hold that equity indefinitely. So to hold it, you need enough cash flow and you need enough liquidity to weather any storm. And if you keep the three of those in balance, you are now officially rich. Congratulations. Beautiful thing is they can all be traded for each other. If I have high cash flow, I can service a loan. With a loan, I get a lump sum of liquidity and I lower my cash flow a little bit. But now I have more money on hand. I can trade that new money to buy equity or buy up my equity in my existing portfolio so I can increase my equity. Equity can be seller financed to increase cash flow or can be sold to increase liquidity. And you see how these all get traded. Each one can be traded for the other at a cost. So as you collect them, you can balance your portfolio.