By Ryan Bologna
Elon Musk has been a polarizing figure for some time now. Whether you are looking at his business ventures or public comments, there is a myriad of reasons why people aren’t fans of him. However, the reality is that he is very successful and we can learn valuable lessons from him if we look in the right places. One example is investing, and there is one specific piece of advice that has aged well. Let’s dive into it.
With Musk’s taking over Twitter and making a grand entrance this week, there is no surprise that this piece of advice came from a tweet.
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
As most people know, inflation has been high since that tweet was sent. Musk suggested investing in a home or physical things during that time, how has that advice aged?
Since homes are the first thing he mentioned, let’s take a look at the real estate market. Headlines would lead many people to believe that investing in the housing market would be a mistake, but that isn’t necessarily true. The median sale price is right around the same as it was around the time Musk sent that tweet.
It’s important to take into account that not all markets in the U.S. are declining the same. So if you do your research and know what specific areas to target, you will be better off. Using a platform like Arrived Homes is potentially a good way for you to invest in the rental housing market without paying super high prices for shares. There are other platforms where you can invest in similar ways, but the shares likely cost more. If you look hard enough, there might be a good opportunity to create some passive income.
So what about the “physical things” that Musk alludes to?
This area is much more subjective. Musk literally says to invest in products you think are of high quality. A good place to find a lot of options is Public, a one-stop shop for investing. Users are able to trade things like stocks, crypto and collectibles on the platform.
Collectibles are a potential place to start. Whether it’s classic cars, sports memorabilia, or really just any artwork that is high quality and rare, there are plenty of opportunities available. Maybe you’ll strike gold, like many did when investing in trading cards.
Musk might not be liked by everyone, but this piece of advice has turned out well. We aren’t giving professional advice here, but if you are looking to invest we hope this helped you form a game plan.
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