GMR 176: Understanding What Types of Assets You Can Invest In
There are almost endless options when it comes to investing. Where should you start? What do you need to know to be a successful investor? In this episode, we talk with Alex Mason, the creator of the Stock Stories podcast, and the stockstoryteller.com website, to learn about the types of asset classes available and understand the benefits and risks that come with each asset type.
Alex is an individual investor and podcaster who loves to help people understand investing better, especially when it comes to long-term investing in the stock market.
Stock Stories Podcast
Mental Models
Nearly 200 episodes, with a deep dive into over 100 over the S&P 500 companies
3 Ways To Use Money
Spend it
Give it away
Invest/Save it
3 Types of Assets
1. PRIVATE BUSINESSES - MAJOR BENEFITS AND DRAWBACKS
Franchises
Entrepreneurs
High potential returns
Less public data and scrutiny
Risking a lot of capital
2-3X earnings (small private company)
6-8X earnings (established healthy company)
20X earning (Large publicly-traded company)
2. REAL ASSETS
Real Estate
Precious Metals (Gold, Silver, etc.)
Commodities (soybeans, oil, etc.)
Collectibles (artwork, classic cars, etc.)
MAJOR BENEFITS AND DRAWBACKS
Tangible - utility (mental model)
Potential for theft
Lack of scalability
Stay within the circle of confidence (mental model)
3. PAPER ASSETS
Stocks
Bonds
Currency (U.S. dollar, Mexican peso, Bitcoin, Ethereum, etc.)
Intellectual Property (Software, Patent Rights, Music Royalties, etc.)
MAJOR BENEFITS AND DRAWBACKs
Scalability
Ease of access
You don’t run the business, you’re entrusting your money to an established business and someone else is the manager of the company
Resources
Website: stockstoryteller.com
Instagram: @stockstoryteller
Twitter: @stckstryteller
Email: alex@stockstoriestellerpodcast.com