Time to Sow!
A long time ago my great grandfather bought some land in Kansas for leisure.
After he passed he split the land to give to his two daughters.
My grandmother's sister sold her land to a developer, but my grandmother never sold.
Over the years my grandmother earned passive income from sharecropping the land.
As a kid I enjoyed exploring the property and watching large tractors harvest the field.
However, I was never hooked on becoming a farmer.
Though as I got older I knew owning and growing assets, like farmland, is key in building generational wealth.
That’s why on twitter I’m the Financial Farmer with the twitter handle @Fin_Farm, who’s growing #BREADS.
I consider my principle to be my land and the harvest is the yield to be reaped in multiple different asset classes.
Breaking #BREADS
My model farm/portfolio consists of #BREADS.
#BREADS stands for:
Bitcoin
Real estate
Ethereum
Alternative Cryptocurrencies
Dollars
Stocks or #GBC70
The overall portfolio I’m bullish on and believe each asset is important in building wealth.
I’ll go more in depth and cover each asset class in future articles, but let me quickly break down each one.
First #Bitcoin is the most widely known cryptocurrency with a fixed number of coins at 21 million.
Digital scarcity has never been achieved until Satoshi Nakamoto created the coin back in 2009.
Since its genesis, it has seen a number of boom and bust cycles, but has come back every time to make higher highs and higher lows.
#Bitcoin is a superior asset!
Second is real estate.
Within #BREADS real estate is the only asset you can live in.
After the 2008 financial crisis new housing starts haven’t reached the levels prior to the crisis.
Over 90 million Millennials range from early 40s to early 20s will likely be looking to buy a home and start families.
This short supply and strong demand will be a tailwind to housing prices.
Third is Ethereum - the second most popular crypto out there.
Ethereum is expanding the crypto world by introducing decentralized finance or defi for short, which is built on top of the Ethereum blockchain.
Defi allows users to trade, swap, borrow or lend their crypto.
There are over 580 protocols on the Ethereum network - more than any other blockchain.
For the fourth part of this model portfolio I will cover Alternative Cryptocurrencies.
They are also known as Alt Coins.
These are lesser known cryptocurrencies.
My good friend and colleague Ian Dyer has been covering all aspects of the crypto market.
He was even the one to get me to invest in #bitcoin, #ethereum and other cryptos.
This bear market has taught me to roll up my sleeves to investigate more projects, like Chainlink, Maple Finance, Aave, and Cosmos, but there are a ton more!
Second to last, I think it is always wise to hold a bit of dollars in a portfolio.
It is the reserve currency of the world, but one of its main purposes is to slowly buy into any of these other buckets when stocks and crypto are cheap.
To round out #BREADS are stocks.
More specifically the #GBC70 portfolio, which my other good friend and colleague Paul Mampilly created.
He hopes to turn the index into an exchange traded fund (ETF), so you can get easy access to a basket of stocks that we as a team think will be revolutionizing the world through innovation and technology.
I look forward to providing you more content on #BREADS as well as other opportunities that could help you on your journey with learning how to build and generate wealth.
Before signing off I want to say we are in the very early stages of our company, so we don’t have the proper tools to track each asset class.
For one, real estate prices fluctuate at different frequencies as to stocks or crypto.
I plan on gauging real estate using the SPDR S&P Homebuilder ETF ($XB).
Also #GBC70 hasn’t been converted into an ETF yet, but on Paul’s substack I provide daily commentary on the portfolio’s performance, which you can checkout here.
If you like my content, please consider subscribing to my substack.
Stay invested my friends!
Pat, the Financial Farmer.
DISCLAIMER: This is not financial advise. I am not a financial adviser. All investments can loose money. Its important to do your own research before investing in any asset class. Investing is risky. Past performance is not indicative to future results.