For billionaire Tim Roberts, making money is somewhat pointless.
He doesn’t really need it. The man is worth $2.38 billion and sits in 73rd place on the Financial Review’s Rich List.
But who doesn’t love the problem-solving detective work of finding new opportunities and then watching them work out?
Roberts owes a lot of his wealth to unconventional means. He owns some stocks. Roberts has a large interest in lithium hopeful Mineral Resources Ltd [ASX:MIN].
But the guy made $700 million by investing in an opportunity no one was looking at…
Make no mistake, this is the only way to invest…
Look for the unique…special…peculiar
I’m not sure of your Aussie crayfish knowledge, but the buggers tend to be pretty expensive.
And they’re made that way by design.
To keep the fish farmers in business and profitable, the WA government decided to cap the annual crayfish catch. In time, the limited supply would drive up prices and the price of licences.
By chance on childhood visits, Roberts stumbled across the industry.
‘I spent many years visiting the Abrolhos as a teenager intrigued by its crystal clear waters, history, biodiversity and sea life,’ Roberts told the Australian Financial Review (AFR).
‘I developed friendships with a number of local fisherman and gained an insight into the industry and [learnt to] appreciate its long-term value, along with how well the industry was managed.’
How many other investors do you think were eagerly looking into WA crayfish licences?
I’ll bet there were maybe a few more than 10…
How many investors do you think are looking at company XYZ on the Australian Stock Exchange (ASX)?
Likely hundreds of thousands…maybe more.
I’m not about to say stock market investing is dead. Far from it. But Roberts’ $700 million profit from crayfish licences is a telling story…
You make the real money on unique, special or peculiar opportunities.
It’s why the ‘expert’ fund managers find it so damn hard to make money! They’re all trying to make money the same way, and on the same boring old blue chip stocks.
It could be an unusual and special opportunity.
It could be a part of a monumental shift in money…one that could drastically affect your life.
How, you ask?
Well, what if money is no longer faith-based paper? What if it’s a digital code, backed by a basket of assets, which gives it value?
I spoke about this yesterday.
It’s actually an idea that’s been in the works for almost 100 years. And it could be a solution to shameless money printing and exaggerated boom/bust cycles…maybe.
I guess you could say bitcoin and Ethereum are trying to live up to those expectations.
Rather than becoming the ‘new money’, they’re fast becoming the ‘new facilitators’.
By next month in fact, you can go buy your very own East Ringwood townhouse with crypto, which passes through the Ethereum blockchain.
The AFR explains:
‘Tycoon Global, a start-up company that builds its trading platform based on the blockchain model, Ethereum, has settled the purchase of a site near Eastland Shopping Centre to build a six-unit project worth $6.5 million.
‘Buyers can purchase these dwellings units using either Tycoon’s cryptocurrency Tycoon Coin Token (TCT), or cash. Each unit has four bedrooms and two garages and will be priced at $US750,000 or just over $1 million.’
Maybe it’s ‘right place, right time’ for cryptos. A digital currency backed by commodities might be just what we need to evolve the current system we have.
I don’t think trading cryptos will do you much good, however.
I saw a Bloomberg article yesterday, reprinted by the AFR, which spent 535 words trying to explain why bitcoin was picking back up.
Big fund movements…mainstream interest…basically they were clutching at straws. Trying to do the same yourself is a waste of time, in my opinion.
Forget about waiting for someone to buy your digital tokens for a higher price. Instead, think long-term…like how these ‘new facilitators’ could completely change payments and the banking system.
Consider what my colleagues, Sam Volkering and Ryan Dinse, told subscribers last week in their advisory, Sam Volkering’s Secret Crypto Network…
‘While bitcoin [BTC] excites us from an economic perspective, there’s no question which cryptocurrency excites us most in terms of technology.
‘It has the most developers working on it, the most projects being built on it and, right now at least, is front-runner to being the foundational layer of a future financial world.
‘That cryptocurrency is of course ether [ETH] and it’s blockchain platform Ethereum.
‘It’s at the heart of a growing movement called decentralised finance — or ‘defi’ for short.
‘The idea behind defi is a decentralised financial world with no governing body, fully open to all.
‘And it’s an exciting concept.
‘It’s not hard to imagine a future where banks are literally built on this network. But they may not look anything like the banks of today.
‘If the dreamers win, it’ll be a system of interconnected projects where you — the sovereign individual — are able to choose which features you want to add to your own personal digital bank.
‘You’ll be able to take the side of borrower, lender, insured, insurer, market maker, investor, staker…the possibilities are endless.’
The only constant…
There are no rule-based formulas that work all the time, or opportunities that are always profitable.
Once investors find out what’s works it tends to stop. And it only starts working again when few are left looking.
Think of it like a cray fisherman…
Do you want to fish in the crowded waters, where the chances of you catching a big haul are slim? Or do you want to go where few are, where the waters are untouched and teeming with potential?
Your peculiar friend,
Editor, Money Morning
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