Passionate people don’t focus on passive income.

People love the idea of passive income. Or earning money while doing nothing. I blame Dire Straits. But if you focus your attention on making money while doing nothing there is a high likelihood that you will earn nothing too.

The focus should be on passionate income. The money you make from aggressive moves, serious work, and taking risks. The money you make from following your passion. And harvesting that passion fruit. (Which sounds abstractly naughty.)

Don’t get me wrong. I’ve read Rich Dad. Poor Dad. Everyone should. And I understand the value of accumulating assets, investing and letting your money work for you.

But I don’t believe that should free you from work. It should free you from the work you don’t want to do. And let you work hard at your favorite challenges and opportunities. That’s the sweet spot. Aim there.

Now is the time to be bold.

This has been an interesting 2 weeks for our planet. Like the movie Parasite, the coronavirus has come out of nowhere, and messed up plans from Wuhan to Hollywood. As a result, the financial markets have gone totally Tom Petty. From Learning to Fly Into The Great Wide Open, to Free Falling.

In the midst of one of the strongest sustained period of economic growth in American history, suddenly we are dealing with travel restrictions, cancelled national and international events, medical supply shortages and panic at the disco.

The Stock Market

Today, the stock markets are in the toilet. And I couldn’t be more pleased.

Because if you are looking for an amazing financial opportunity, this is it. In bad times, when people are panicking, the table is set for you to dig in and take advantage. If you need a refresher course on this lesson, rent the movie The Big Short or Trading Places tonight.

Be Bold Like Barbecue Sauce

If you have a little money to work with, it is time to be bold. You have to find your chance, and take it, like Steve Winwood. Which means picking up an asset that others have dropped like a bad habit in January. It means doing your homework. Taking action. And having faith, like Tim McGraw. Because nothing is guaranteed. And you could go bust. But there is a very good chance that you will go boom boom pow.

The Mortgage Crisis

During the subprime mortgage crisis from 2007 to 2010, American banks were in major trouble. There were fears that some banks would not survive. And some didn’t. But there was an opportunity with those that did. To take advantage of the opportunity you had to buy into those stocks during the darkest days of uncertainty.

During that time I went dumpster diving, and bought stock in 4 different banks that were in the trash. I bought those stocks for as low as $2 per share. And I learned a valuable lesson from that experience. I swore that if I was ever in such a position again, I would buy far more next time. Because those banks stocks have proven to be the smartest financial investment I ever made. Aside from my decision to start my own advertising and idea agency, The Weaponry.

Key Takeaway

I am not telling you to buy stocks. Or to start your own business. I am simply reminding you that fortune favors the bold. And this is a prime time for the bold. So be bold. Make bold choices. And see what happens next.

How to invest in people the way Warren Buffet invests in stocks.

I like investing. I started investing in stocks not long after I landed my first job out of college. Back then I didn’t really know what I was doing. I made mistakes. But I wasn’t afraid. I kept reading, and listening and studying investment strategy. Today I have a solid, repeatable approach. That’s because I stole my strategy from Warren Buffet. Who stole his strategy from Benjamin Graham.

I bought Graham’s book, The Intelligent Investor, because I heard it was the bible on stock investing. I boiled the 600 page book down to this headline:

‘Buy when a stock is undervalued. Sell when it is overvalued.’

This strategy has served me well. I’m always looking to get in on a good company’s bad news. When banks were collapsing because of the mortgage crisis, I bought Huntington, Fifth Third and PNC stock. When there was oil gushing in the Gulf of Mexico I bought BP. When Equifax was hacked, I was into Equifax stock. When there were diseases decimating the US chicken population I shouted, ‘Pass me a drumstick and some shares of Pilgrims Pride and Sanderson Farms!’

Investing in People

I invest in people the same way.  When people are hot, have the world by the bizzles and everyone wants to be close to them, I don’t need to be there too. I like to invest in people who have lost their jobs, hit icebergs, or are leaking oil. Those are the ones that really need to be infused with confidence and friendship. It is easy to divest when people hit all-time lows. But that’s when I like to double down.

People always rebound.

Your personal stock always rises again to reflect your true value. Which means that when you pick someone up who feels like they are sitting on the discard pile, the return on your invested time and attention truly appreciates. While you may have known things would get better for that person, they didn’t. Because when you feel like you are swirling around the toilet, it is hard to see past the very near term.

Take Away

Look for ways to invest in those that need it most. The good people, organizations, and teams that have fallen out of favor. Because the belief, support and confidence you invest  in them comes back to you in amazing ways. Oh, and if you have any undervalued stocks to pass my way, please post them in the comments section.

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