What if we told you there was a way to build extreme levels of wealth incredibly fast?
What if we told you that almost all self-made millionaires and billionaires have used
this exact strategy to build their fortunes and there’s nothing stopping you from doing
the same.. And no, this isn’t about the law of attraction or about marrying someone rich,
we know you’re smarter than that! Let’s dive into it!
Welcome to Alux.com, the place where future billionaires come to get inspired!
Asymmetric risks or asymmetric opportunities are when the rewards are higher than the
costs of participating with a decent likelihood of success!
If you invested $5000 in amazon stock when it fell to only $5 a share in 2001
and held it until today, you would have $3.2 Million dollars.
If you invested $1000 in Bitcoin only 5 years ago, you would have well over $100,000 today.
These are examples of asymmetric risk in the investment space,
but this kind of risk-reward ratio can be found in all aspects of your life.
By the end of this video, you’ll have a clear list of such opportunities we have identified for you.
Basically, the goal is to find situations where you can lose a
little, but win big if it works out in your favor.
If you’ve watched our last week’s video, you now know that most people will never be rich.
One of the big reasons is that Average humans don’t understand the concept of Asymmetry.
They’re accustomed to small wins and dramatic rare losses.
A good example of this is someone who works a job getting a small
salary consistently until the market turns and now they find themselves unemployed.
The only way to thrive in this kind of socio-economic climate is to embrace risk.
You can’t remove the volatility, so instead of it killing you, use it to win big!
This is one of the reasons why we invest in technology start-ups.
Statistically. 6 out of 10 projects we invest in will fail,
3 will do ok and 1 will do well enough to pay for all 10 and then some.
Another example of asymmetric risk is when you start a company or join a company where you
have shares. At most, you can lose your time and whatever you consider to be the opportunity risk,
but if the company does well, the end result could be life-changing.
We’ve used this concept of asymmetry in everything we do.
For example: this video right here is an asymmetric bet. We’ve spent some time and
resources to create a piece of content that lives forever. As long as people find it valuable and
keep consuming it, we will be getting a return. Any type of content is an asymmetric bet.
Write a book, start a podcast, record a video,
tweet out ideas, post on social media. All of these have the potential to reach
millions of people and the collateral benefits outside of digital likes are enormous.
This works phenomenally well if you leverage it against digital products.
Instead of a book, make it an eBook and your costs of production are just
the time you put into writing it. A digital course has the same kind of scale benefits.
You make it once and then you can sell it as many times as people are willing to buy it.
Asymmetric opportunities are everywhere around you and in all aspects of your life.
This is why people take the risk to move to big cities. Relocating to a big city allows
access to people and opportunities you don’t have in your small town.
It’s the same thing with traveling the world.
The biggest asymmetric risk of it all is doing all of this when you are young!
Even if nothing works out you still have enough time left to make it back.
Going on as many first dates as possible allows you to meet different kinds of people and figure out
what kind of partner are you actually looking for. The downside is it simply doesn’t work out
and you move on to the next date. But the upside is finding the love of your life and the person
you will spend most of your remaining days with. Going on dates or to parties has a low cost of entry,
but you never know who you’re going to meet and what kind of impact they could have on you.
We do the same with reading books. A book costs $15 and a few hours of our time.
Not every book we read is going to life-changing, but every once in a while a really good one will
come along that generates exponential growth for us by connecting some key pieces of information.
It’s the same reason why we buy courses or go to business events. For us, the cost is justified
because on a long enough time horizon, this investment will pay off a hundredfold. This is why
thousands of people go to courses.alux.com and purchase our educational experiences.
If you look for them, asymmetric opportunities are wildly available.
You’re here because you care about finances,
so here’s why we believe crypto is the biggest asymmetric opportunity we have found so far.
As of writing this script, the price for 1 bitcoin is around $42,000.
We believe the price for 1 bitcoin will be worth a minimum of $250,000 in the next 5 years.
From an investment perspective, if we make the investment and buy 1 bitcoin, the most we can
lose is $42,000. But the reward if this works out is at least 5 times our investment today.
It’s the same reason why we’re betting so heavily on Ethereum
betting that it will flip bitcoin in terms of market cap and have made
numerous early stage investments in DAOs and other crypto projects.
Raoul Pal said it best in a recent interview when he said:
I think, if you work on the hypothesis that the space is going up 100x, in 10 years..
It almost doesn't matter what price you pay now.
Traditional finance is struggling due to the current climate. Investing in stocks or real estate
barely keeps up with inflation. Automation and disruptive technologies are around the corner
eating more and more of the slow and steady returns traditional investors were accustomed to.
All of this pushes smart investors towards asymmetric opportunities:
The math that supports this strategy is simple:
an investment can only go down 100%, but its potential upside is infinite.
As long as you have the ability to generate income on your own,
it’s just a matter of time until one of your investments hits it big.
If you can survive it, who cares if you lose
6 or 7 times as long as the 8th one takes care of you for life?
Who cares if 7 books are bad or 7 dates don’t work out if the 8th one really is a home run?
You have to take the emotional fright out of your ability to try things.
This isn’t your parent’s world anymore, where you picked 1 job,
worked at it for 40 years and then retired. You have to adapt to the
world we’re living in or you will be swallowed by the flood that’s coming.
And that’s what we’ll discuss next Sunday: How to survive and thrive in this new world that’s
being created. It’s gonna be a really good one, so make sure you are subscribed to the channel!
We want you to take the time this week to look around you.
What asymmetric opportunities have you found in your life?
Let us know in the comments as your input might help someone else from our community!
As for those of you still watching, of course, there’s a bonus waiting:
In order to be able to take full advantage of asymmetric opportunities,
you need an income machine!
You need to know that money’s coming in no matter what. Be it through your own ability
to convert your knowledge, skills and time into currency. Ideally, at this stage in your life
you don’t have that many dependencies and you don’t need much to keep living the way you are.
Make it a priority to invest in asymmetric opportunities consistently.
Be it by dollar-cost averaging into crypto projects, writing 1 blog post or page per
day or hitting that publish button on your podcast or youtube channel.
Plant your seeds and water them regularly. It won’t be long until one of these
opportunities will bear enough fruit so you can focus on it exclusively. The catch is,
you don’t know when it will happen. So the best strategy is to keep putting in the work.
You can de-risk an investment through education!
And as long as that income machine is bringing those checks consistently,
you have a predictable path moving forward.
So… Figure out how to make more money than you need to survive and invest the rest consistently!
It will do wonders for your life and it will prove our theory that watching
this Alux.com video was probably the best asymmetric bet you’ve ever made in your life!
Before we end the video, we’re curious to know which style do you prefer for
the Sunday motivational video. This NEW one where we focus on a single narrative or the
OLD one where we did a list of 15 things? Please write in the comments NEW or OLD
depending on which one you like better. It helps us make the content that you like!