What to invest in after COVID-19

Grant Cardone has been preparing for an economic correction for sometime now and has been very verbal about it. If you’ve been following him for any amount of time, especially as long as I have, you already know this to be true. In Grant’s latest Strategy of the Week, we look at what to invest in after COVID-19 / the Coronavirus has past.

One of the key messages for me from this strategy, which is incredibly uplifting, is that this will pass. This is a tremendous opportunity for you to look at history and see how events like these shape the future and most importantly pass. This is not a forever thing. As a species we are incredibly resilient and we were designed to adapt and overcome.

Remember, the #1 thing to invest at any time, not just in after COVID-19, is you. You need to be skilled up and educated to come out of this on top. We’re all going to get through it. The question is, who will you be on the other side?

Grant’s been saying for years to avoid investing in businesses and industries that are based on discretionary spending and instead invest only in instruments that are…

a) necessary

b) real assets

c) produce cash flow

The impact of the Corona Virus on the US economy will be massive and every part of society will be affected.

Grant says in the strategy, “There will be NO protection from this epic worldwide event but there are things that you can do and industries that will come back first.”

We want to put our full focus and what we CAN do. And as Grant has been teaching, we need to put more attention on the future, on where we’re going then on where we are and where we were.

The windshield is bigger than the rearview mirror for a reason!”

Grant’s been studying money for 35 years. Here are his three most important rules that have never failed him:

1) Don’t lose money – Capital Protection.

2) Invest for Cash Flow.

3) Invest for the long term.

Let’s deep dive the three with the intention to USE these rules to build the future moving forward.

#1 DON’T LOSE MONEY

Straight from Warren Buffett’s first rule and Grant has been adopting it in his real estate investing for years. This is why GC puts ALL his money into apartments and has avoided stocks. Interesting to note, Buffett doesn’t do stocks either. He invests into companies with cash flow he can trust combined with strong leadership.

From GC:

Because I am not a Wall Street insider and don’t know what’s going on inside of a company, I don’t invest in stocks. When I invest in real estate I am able to protect my capital, (don’t lose money) because the underlying asset is real property that has its value supported by rental income (cash flow).

Additionally, here’s a little insider detail where I learned something new that makes a TON of sense. Grant says he NEVER speculates or compromises when picking a location of real estate to invest in. Nor does he delegate this to anyone else in the company. For Grant the location today is vital, but the location ten years from now is 10X more important. Grant looks for markets where there is positive job migration, hospitals, good schools and jobs.

#2 INVEST FOR THE CASH FLOW

Years ago “cash was king” because you could earn 6-8% by leaving it in the banks. Today you get paid nothing to leave your money at the banks.

I only invest in those things that can provide positive cash flow today and into the future. When we invest in properties we look at 88% occupancy and still have a positive cash flow.

#3 INVEST FOR THE LONG TERM

For Grant, long term is ten years from now.

Who doesn’t want to get rich quick? And you can get rich quick. However there’s a huge difference between rich and wealthy. The reality of the situation is that nobody gets WEALTHY quick. It takes time for investments to appreciate and grow.

Also, interestingly enough and while scary at times, this is some incredibly sound advice. Grant’s OK with not being liquid. He wants to get rid of all his cash asap. As soon as Grant stores up enough cash, he immediately starts looking to push it ALL into real estate assets that he knows he will hold onto for the long term.

This makes me broke again and forces me to continue to hustle.

He goes over this deeper in The Millionaire Booklet which is a must read.

Food for thought: Apartments that cash flow at 6% represent a 60% return on capital in ten years assuming rents don’t go up. (Rents have gone up since 1945, the end of WWII, BTW)

FINAL THOUGHTS: What to invest in after COVID-19

1) Protect your capital. Don’t lose money.

2) Invest for Cash Flow.

3) Invest for the long term.

If you’re looking to learn more about how you can invest with Grant at Cardone Capital, I’d be happy to make a personal introduction on your behalf.

And if you need help with income right now, we’re giving away 30 days of Cardone University for free. This is the number one sales and business training platform on the planet and this is VITAL data, skills and training that you need now more than ever.

For more on Cardone Capital and Cardone U, shoot me an email david@grantcardone.com or call my office at 310-777-0352.

What to invest in after COVID-19