Wise Intelligent, co-founder of the StockBossUp App, sat down to discuss what Lifestyle Investing is. It was a Friday, and Wise had to reschedule our planned interview because he was meeting with juvenile court officials, working with court officials to figure out how to get more help for juveniles in the corrections system. The lives of many youth are negatively impacted by circumstances outside of their control. Many become the proverbial product of historically repressed communities and environments. Still others have become disillusioned by the perceived inconsistencies of adults and authorities in their lives. Either way, Wise was trying to figure out solutions to get these youths more resources.
So finally at the end of a long Friday, Wise is able to jump on our call. For lifestyle investing, no other person could give the topic justice. He has the knowledge about business, culture, and systems to know how lifestyle investing can work, and cares enough to push communities to take this knowledge and apply it. Lifestyle investing isn’t about jumping on fads, it’s about creating wealth at an unprecedented scale.
Lifestyle Investing with Wise Intelligent (video link below)
Lifestyle investing is about investing in yourself, investing in brands you love, and holding on to that investment if you’re buying that brand. It’s a long-term investment strategy that is taking your consumer intuition about products and services and converting that knowledge into an investment.
Lifestyle investing is important even beyond the stock market. Wise’s lifestyle is his brand. He’s been building a brand around the lifestyle he lives. His lifestyle brand is about a series of wise decisions. Sometimes the wise decision is not based on dots of knowledge. Instead of knowledge coming from these different silos, knowledge comes from connecting the dots. The wisdom comes from connecting those dots and then streamlining your ideas into application.
“Knowledge is Potential Power. Applied Knowledge is Power”
Applying that knowledge is the real step. The name “Wise Intelligent” speaks to that. It's applied knowledge. We say knowledge is power, but Wise disagrees. Knowledge is potential power. Applied knowledge is power.
Everything Wise does, community work, entrepreneurship, merchandising, is about Wise’s lifestyle. In the culture some people say you need to “fake it until you make it”. Wise pushes back on that.
“Get it how you live it”.
Lifestyle Investing starts with yourself first and foremost. After that you invest in everything you do daily: the companies and brands you love, patron and use. For a new investor, that’s the first place to start. Brands associated with your lifestyle.
For example, you like Starbucks (SBUX) and you go and pay $8 on two shots of expresso, a double shot. You have to ask yourself, “why do I like it to this level” and “how much do I really like it”? If you like it that much, take a deep dive into the company, learn about the company’s lifestyle and culture. See what coincides with your beliefs and lifestyle. Then maybe you’ll want to invest in it. It’s the first step in a long and successful journey in investing.
The investing space does seem complicated. But the knowing is in the doing. People should start investing now and learn. From the research we’ve done, its basically free to invest if your income is less than $44k. You don’t have pay commission fees and with fractional shares you can build a diversified portfolio with as little as $10. If your income is less than $44k, you may pay zero taxes on your capital gains.
The brands we like, typically have “stickability”. They are going to be around. For example, everyone and their pets go to Walmart (WMT). So they are going to be around. Need something for your household, you’re probably going to Lowes (LOW). Brands that are associated with your lifestyle are even recession proof.
So the importance of lifestyle investing goes without saying.
Why not own a company you’re already investing in… you’re just not getting a return on the investment? You’re getting a very minimal return on investment. You’re getting a one-time use of whatever product you buy.
"I like the idea of buying the $8 Starbucks expresso and not just getting the caffeine buzz, but also getting back a return on investment. I want Starbucks to pay for some of my shots of expresso."
Another example, you buy stock in your cell phone service provider, you own enough of it they’ll start paying your cell phone bill in dividend payments. Something like AT&T (T) or Verizon Wireless (VZ). Lifestyle investing should be the initial step for someone that is not grandfathered into investing. If you’re not grandfathered into investing, get an investment edge by investing in the brands you’re already using.
The reality is, and this is why StockBossUp is community based, all the wall street guys and financial professionals, everything you see on TV, all of that isn’t trying to help you it's trying to entertain you. What they hate is when you know something works, and you’re holding long, and you’re making more money. They want you to play it like a slot machine.
Looking for a day, week after week, month after month, you don’t get to see the big picture, you got to zoom out, and you’ll see that over time the race favors the tortoise. Plus, if you’re looking at it daily stock charts, you’re going to get a heart attack. It’s no mistake that stock market graphs look like an ekg chart, electrocardio graph. You’re about to flatline if the market goes down. These things are nuanced like that for a reason. There’s probably a correlation between the market falling and nationwide heart attacks.
Let’s take hip hop music as a lifestyle and its influence on people in hip hop culture. Then we look at the brands associated with hip hop culture or that rap artists that may have rhymed about or rapped about or promoted in their songs or videos.
Busta Rhymes did a video about Courvoisier. Until that song, no one in the culture new about Courvoisier. After that song, Courvoisier became one of the most popular drinks in the culture, and that company’s bottom line skyrocketed because of the free promotion. And they didn’t want to do a deal with the Rap Artists after that. It’s free promotion for them. When you’re watching your favorite rap videos and you see the brands they’re promoting, sometimes aware or unaware, they are influencing you to try something. Like Nas is promoting Hennessy on commercials, he’s promoting them on billboards. Nas recently interviewed on drink champs, and what is he drinking: V.S.O.P. That’s the brand he represents so you’re going to pour me some of the drink I’m being paid off of. We watch that, we love drink champs, we love Henessey. Henessy, is LVMH Moët Hennessy - Louis Vuitton (LVMH), they are all one company.
So, by buying that stock, owning that stock, you’re not only going to see a return on Nas’ promotion.
Nas is helping you promote it; Nas is on your promotion team! Nas is working for you now. You have one of the greatest Rap artists in the history of rap and arguably one of the most prominent entrepreneurs in the hip-hop space, he’s investing in coinbase (COIN) and royal.io. Now he’s working for you. So that’s lifestyle investing. I’m going to invest in LVMH, because I see where its going. You’re not just winning off the Hennessy Nas is pouring, you’re also seeing a return on the outfit Nas is wearing because it’s also Luis Vuitton.
That’s a part of lifestyle investing because that’s the brand the culture has promoted. Bad and Boujee.
V.F. Corporation is a giant in the apparel industry. The company’s annual sales amount to nearly $12 billion, but the company has humble beginnings. It started all the way back in 1899 and has seen many twists and turns in the 123 years since.
In the world of investing, the goal is always to compound wealth as efficiently as possible. We think the best way to do that is to buy high-quality dividend stocks, reinvest the dividends, and stay the course over a number of years. However, investors can also infuse their own personal preferences or beliefs into their investing strategy, and still make great returns.
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