7 Assets Rich People Use to Preserve Wealth Forever

00:14:17
https://www.youtube.com/watch?v=yQXIhVJu8LE

Summary

TLDRThe video explains the distinction between having money and being truly wealthy, highlighting the fragility of money and the importance of long-term stores of value. It identifies seven key assets that wealthy individuals use to preserve and grow their wealth: real estate, stocks, education, precious metals, government bonds, fine art and collectibles, and cryptocurrency. Each asset is discussed in terms of its benefits and role in a diversified wealth portfolio. The video emphasizes the importance of investing in oneself and offers a discount for the Alux app, which provides practical financial education.

Takeaways

  • 💰 Money is fragile; wealth is preserved through stores of value.
  • 🏡 Real estate is a tangible asset that appreciates and generates income.
  • 📈 Stocks, especially blue chip stocks, provide long-term growth.
  • 📚 Education is an invaluable asset that cannot be taken away.
  • ⚒️ Precious metals like gold and silver are timeless stores of value.
  • 📜 Government bonds offer stability and reliable income.
  • 🎨 Fine art and collectibles can appreciate significantly over time.
  • 💻 Cryptocurrency is a decentralized and limited asset class.
  • 🔑 Investing in yourself is the most important investment you can make.

Timeline

  • 00:00:00 - 00:05:00

    The video discusses the distinction between having money and being truly wealthy, emphasizing that money is fragile and can be lost quickly. It introduces the concept of 'stores of value'—assets that maintain and grow wealth over time, highlighting examples like the Rockefellers and Rothschilds. The first two stores of value mentioned are real estate and stocks, with real estate being a tangible asset that generates income and appreciates in value, while stocks represent ownership in stable companies that have proven their worth over time. The wealthy invest in blue-chip stocks and industries that are essential for long-term wealth preservation.

  • 00:05:00 - 00:14:17

    The video continues by discussing education as a crucial store of value, emphasizing that knowledge cannot be taken away and is essential for making smart financial decisions. It introduces the Alux app as a tool for practical education. The fourth store of value is precious metals, which have historically maintained their worth through various economic upheavals. The fifth store is government bonds, considered safe investments during uncertain times. The sixth store of value is fine art and collectibles, which can appreciate significantly due to their scarcity. Finally, cryptocurrency is presented as a controversial but increasingly popular store of value, with its potential for high returns and unique characteristics.

Mind Map

Video Q&A

  • What is the difference between money and wealth?

    Money is fragile and can lose value, while wealth is preserved through stores of value.

  • What are the seven stores of value?

    The seven stores of value are real estate, stocks, education, precious metals, government bonds, fine art and collectibles, and cryptocurrency.

  • Why is real estate considered a store of value?

    Real estate is tangible, generates income, and appreciates over time, making it a reliable long-term investment.

  • What are blue chip stocks?

    Blue chip stocks are shares in established companies that have a history of stable earnings and are considered safe investments.

  • How does education serve as a store of value?

    Education provides knowledge and skills that cannot be taken away, enabling individuals to make informed financial decisions.

  • Why are precious metals important for wealth preservation?

    Precious metals like gold and silver have historically maintained value and are considered a hedge against economic instability.

  • What role do government bonds play in wealth preservation?

    Government bonds are stable investments that provide fixed interest and are backed by national economies.

  • How can fine art and collectibles be valuable?

    Fine art and collectibles are unique and scarce, often appreciating in value over time.

  • What is the appeal of cryptocurrency as a store of value?

    Cryptocurrency is decentralized, limited in supply, and can be easily transferred, making it an attractive option for wealth preservation.

  • What is the Alux app?

    The Alux app offers practical knowledge and tools for personal finance and wealth management.

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  • 00:00:00
    Look, there's a difference between
  • 00:00:02
    having money and being truly wealthy.
  • 00:00:04
    Okay? Money is surprisingly fragile.
  • 00:00:07
    Your bank accounts can be frozen. Your
  • 00:00:09
    stocks can crash to zero. And even your
  • 00:00:12
    currency can become worthless from one
  • 00:00:14
    day to the next. Most families lose
  • 00:00:16
    their fortunes in just three
  • 00:00:19
    generations. But on the other hand, look
  • 00:00:21
    at the Rockefellers. They're still
  • 00:00:23
    wealthy after 150 years. Or the Roth
  • 00:00:26
    Shields. They've been one of the world's
  • 00:00:27
    wealthiest families since before
  • 00:00:30
    Napoleon. And that's because they've
  • 00:00:32
    cracked the code on what economists call
  • 00:00:35
    stores of value. Assets that don't just
  • 00:00:38
    hold their worth, but compound across
  • 00:00:41
    centuries. So today, we're revealing the
  • 00:00:44
    seven stores of value that truly wealthy
  • 00:00:46
    people use to preserve and grow their
  • 00:00:48
    wealth. From the most obvious ones to
  • 00:00:50
    the most surprising, and we're breaking
  • 00:00:52
    down each one so you too can start
  • 00:00:55
    thinking like old money. Welcome to
  • 00:00:57
    Alux, the place where future
  • 00:00:59
    billionaires come to get inspired. All
  • 00:01:01
    right, so the first store of value we're
  • 00:01:03
    talking about today is real estate. But
  • 00:01:05
    we're not talking about your average
  • 00:01:07
    suburban house. All right, take Bill
  • 00:01:09
    Gates. Most people know him from
  • 00:01:11
    Microsoft, but here's what they don't
  • 00:01:13
    know. He's quietly become the largest
  • 00:01:16
    private owner of farmland in America,
  • 00:01:19
    controlling over 270,000 acres across 19
  • 00:01:22
    states. That is bigger than the entire
  • 00:01:24
    city of Los Angeles. Now, obviously,
  • 00:01:27
    Bill's not out there in the fields
  • 00:01:28
    farming the land himself. This is a very
  • 00:01:31
    strategic long-term play. You see, real
  • 00:01:34
    estate works as a store of value because
  • 00:01:37
    it gives you three things at once.
  • 00:01:39
    First, it is tangible. You can touch it,
  • 00:01:41
    live on it, and use it. Second, it
  • 00:01:44
    generates income through rent, crops, or
  • 00:01:47
    appreciation. And third, when everything
  • 00:01:49
    else gets more expensive, so does
  • 00:01:52
    property. And the thing is, governments
  • 00:01:54
    can print more money, but they can't
  • 00:01:56
    exactly print another chunk of prime
  • 00:01:59
    Manhattan real estate. I mean, nobody's
  • 00:02:01
    finding any more land, and they're not
  • 00:02:02
    about to make it either. That's why real
  • 00:02:05
    estate is the go-to store of wealth. on
  • 00:02:07
    a long-term time horizon. The built-in
  • 00:02:10
    scarcity basically guarantees that your
  • 00:02:12
    wealth is going to be safe. Now, the
  • 00:02:15
    wealthy don't just buy one type of real
  • 00:02:17
    estate. They diversify across multiple
  • 00:02:20
    categories. Commercial real estate, for
  • 00:02:22
    example, like office buildings and
  • 00:02:24
    shopping centers can get you some steady
  • 00:02:26
    cash flow. Residential properties in
  • 00:02:28
    prime locations are great for
  • 00:02:30
    appreciation. You can buy farm and
  • 00:02:32
    timber for long-term resource plays. And
  • 00:02:35
    of course, those $100 million pen houses
  • 00:02:38
    and historic estates keep their value
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    while giving you the chance to live in
  • 00:02:42
    absurd luxury. Each kind of real estate
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    serves a different purpose, but the end
  • 00:02:48
    goal is always the same, putting your
  • 00:02:50
    money where it can last forever. The
  • 00:02:53
    second store of value is stocks. Now, in
  • 00:02:56
    general, stocks work as a store of value
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    because you're buying a slice of a
  • 00:03:00
    company that earns money while you
  • 00:03:01
    sleep. Some of these companies pay you
  • 00:03:04
    cash every few months just for owning
  • 00:03:06
    them. Others grow and get more valuable
  • 00:03:08
    as time goes on. But here's the thing.
  • 00:03:11
    The truly wealthy don't buy just any
  • 00:03:14
    kind of stock. Warren Buffett's a
  • 00:03:16
    perfect example of this, okay? He's been
  • 00:03:18
    holding companies like Coca-Cola,
  • 00:03:19
    American Express, and Apple for years.
  • 00:03:22
    These aren't Reddit's new favorite meme
  • 00:03:24
    stocks or even Silicon Valley's hottest
  • 00:03:26
    new startups. These are businesses
  • 00:03:28
    people use every day. businesses that
  • 00:03:30
    have survived recessions, inflation,
  • 00:03:33
    even world wars in some cases. And that
  • 00:03:36
    is why they're called blue chip stocks.
  • 00:03:38
    You see, when the ultra wealthy want to
  • 00:03:40
    preserve their wealth for decades, they
  • 00:03:42
    buy real businesses, the kind that have
  • 00:03:44
    already been making money for decades.
  • 00:03:46
    And to make sure their wealth is even
  • 00:03:48
    safer, the wealthy invest in industries
  • 00:03:50
    they know people will always need or
  • 00:03:53
    want, like food, energy, technology,
  • 00:03:56
    banking, and medicine. The idea is
  • 00:03:58
    simple. If you want your money to last,
  • 00:04:01
    put it into companies that last. The
  • 00:04:04
    goal here isn't to get rich overnight.
  • 00:04:06
    It is to keep getting richer quietly for
  • 00:04:08
    the rest of your life. And if you do it
  • 00:04:10
    right, you're basically guaranteed to be
  • 00:04:13
    wealthy forever. Now, the third store of
  • 00:04:15
    value, it's not something you can hold
  • 00:04:17
    or sell, but honestly, it might be the
  • 00:04:20
    most powerful one on this list. We're
  • 00:04:22
    talking about education. Because here's
  • 00:04:25
    the thing, okay? Your house can burn to
  • 00:04:27
    a crisp. Your business can get shut
  • 00:04:29
    down. Your currency can collapse. But as
  • 00:04:32
    long as you are still standing, nobody
  • 00:04:35
    can take away what you know. And when
  • 00:04:38
    you know how money works, how to think
  • 00:04:40
    critically, how to actually look at the
  • 00:04:42
    world around you and make smart
  • 00:04:44
    decisions, that is when you truly become
  • 00:04:47
    unstoppable. But let's be real for a
  • 00:04:49
    moment, okay? Traditional education
  • 00:04:51
    didn't prepare you for any of that.
  • 00:04:54
    Nobody taught you how to manage your
  • 00:04:56
    finances, how to build a business or how
  • 00:04:58
    to protect your wealth across
  • 00:04:59
    generations. But don't you worry my
  • 00:05:02
    friend, that is why we built the Alux
  • 00:05:04
    app. Our app is a complete toolkit for
  • 00:05:07
    people who know the value of real world
  • 00:05:09
    education. Unlike university where you
  • 00:05:11
    have to wait like four plus years to
  • 00:05:13
    realize nobody actually ever taught you
  • 00:05:14
    anything about the real world, we give
  • 00:05:17
    you practical knowledge you can apply
  • 00:05:18
    immediately. Hundreds of thousands of
  • 00:05:20
    ambitious professionals, creators, and
  • 00:05:22
    entrepreneurs are already using the Alux
  • 00:05:24
    app to become the ultimate version of
  • 00:05:26
    themselves. So, if you're serious about
  • 00:05:28
    playing the long game, not just getting
  • 00:05:30
    rich, but staying rich, then scan the QR
  • 00:05:33
    code on screen to download the app and
  • 00:05:35
    you'll get 25% off your membership and
  • 00:05:37
    unlock everything inside. Remember, my
  • 00:05:39
    friend, at the end of the day, the only
  • 00:05:41
    asset that really matters is you. So the
  • 00:05:45
    only way you're going to reach your
  • 00:05:47
    goals is if you're actually willing to
  • 00:05:49
    invest in yourself. That is why
  • 00:05:52
    education is important. Now moving on,
  • 00:05:55
    the fourth store of value is probably
  • 00:05:58
    the oldest in human history. We're
  • 00:06:00
    talking about precious metals. Now gold
  • 00:06:03
    and silver have worked as a store of
  • 00:06:04
    value pretty much since the human
  • 00:06:06
    species started trading. For over 5,000
  • 00:06:09
    years, they've survived the fall of
  • 00:06:11
    empires, the rise of new currencies,
  • 00:06:13
    world wars, depressions, even the
  • 00:06:16
    invention of the internet. They've
  • 00:06:18
    outlived everything, and they still hold
  • 00:06:20
    value today. Just look at central banks.
  • 00:06:24
    These are some of the most powerful
  • 00:06:25
    institutions on the planet. And even
  • 00:06:27
    though gold and silver metals don't pay
  • 00:06:30
    dividends and they don't generate
  • 00:06:32
    income, they're still hoarding them by
  • 00:06:34
    the ton because it's global. It's scarce
  • 00:06:37
    and it's immune to politics. When
  • 00:06:40
    everything collapses, they just hold
  • 00:06:42
    value. And that is exactly the point.
  • 00:06:44
    When inflation hits, when currencies
  • 00:06:47
    lose their worth, when markets start
  • 00:06:48
    melting down, gold and silver are
  • 00:06:51
    accepted everywhere. You don't need a
  • 00:06:52
    passport or a banking system. And a bar
  • 00:06:55
    of gold in New York is worth just as
  • 00:06:57
    much in Tokyo or Dubai. That's why
  • 00:07:00
    people call it wealth insurance.
  • 00:07:02
    Precious metals are not going to make
  • 00:07:04
    you rich, but they will keep you from
  • 00:07:07
    going broke. And let's not forget,
  • 00:07:09
    precious metals are finite and they take
  • 00:07:11
    real work to mine. So that scarcity
  • 00:07:14
    combined with their track record is why
  • 00:07:16
    they still sit quietly in the background
  • 00:07:19
    of almost every ultra wealthy person's
  • 00:07:21
    portfolio. You don't see people flexing
  • 00:07:23
    their gold and silver on Instagram, but
  • 00:07:26
    trust us, okay? It is there. Now, the
  • 00:07:30
    fifth store of value is government
  • 00:07:31
    bonds. And out of all of the ones that
  • 00:07:33
    we're talking about today, these are
  • 00:07:35
    probably the most solid. You see, when
  • 00:07:37
    the future looks kind of shaky, when
  • 00:07:39
    nobody knows what's going to happen
  • 00:07:41
    next, or when the entire world order is
  • 00:07:43
    changing, the ultra wealthy don't rush
  • 00:07:45
    into crypto or real estate, they buy
  • 00:07:48
    government debt. For example, during
  • 00:07:50
    World War II, when Europe was on fire
  • 00:07:52
    and nobody knew how the continent would
  • 00:07:54
    come out the other side, Swiss
  • 00:07:56
    government bonds became one of the
  • 00:07:57
    safest places in the world to park your
  • 00:08:00
    money. Switzerland stayed neutral.
  • 00:08:02
    Germany didn't invade it and its bonds
  • 00:08:04
    became a kind of financial bunker at a
  • 00:08:07
    time when investors were looking for
  • 00:08:08
    safety more than they were looking for
  • 00:08:10
    crazy returns. And that's the whole
  • 00:08:12
    point of government bonds. When you buy
  • 00:08:14
    a bond, you're basically loaning money
  • 00:08:16
    to a government and in return they pay
  • 00:08:18
    you a fixed amount of interest for a
  • 00:08:20
    while and then at the end they give you
  • 00:08:22
    your money back. Bonds are not exciting,
  • 00:08:25
    okay? They're not sexy, but they're
  • 00:08:27
    stable and they rarely go to zero
  • 00:08:30
    because they're backed by entire nations
  • 00:08:32
    which don't collapse from one day to the
  • 00:08:34
    next, at least most of the time. The
  • 00:08:37
    ultra wealthy use bonds for their
  • 00:08:39
    safety. Generally, people consider US
  • 00:08:42
    bonds to be the safest because they're
  • 00:08:43
    backed by the world's largest economy.
  • 00:08:46
    But German bonds, Japanese bonds, or
  • 00:08:48
    those Swiss bonds we mentioned earlier
  • 00:08:51
    are also considered safe bets. These
  • 00:08:53
    countries will probably pay you back.
  • 00:08:56
    But here's the cool thing about bonds.
  • 00:08:58
    When stocks go down, they often hold
  • 00:09:01
    steady or even rise in value. So,
  • 00:09:03
    generally, you can keep them in your
  • 00:09:05
    asset portfolio, giving you reliable
  • 00:09:07
    income. And if the rest of your assets
  • 00:09:10
    tank all of a sudden, they'll offset
  • 00:09:12
    some of the losses and give you some
  • 00:09:14
    breathing room. So, bonds are not the
  • 00:09:16
    kind of investments that change your
  • 00:09:18
    life or anything, but they'll at least
  • 00:09:20
    keep your net worth from falling off a
  • 00:09:22
    cliff when everything else turns to
  • 00:09:25
    chaos. All right, so moving on. This is
  • 00:09:27
    where things start to get pretty
  • 00:09:29
    interesting. The sixth store of value is
  • 00:09:31
    fine art and collectibles. Sometimes
  • 00:09:34
    it's kind of tough to wrap your mind
  • 00:09:35
    around why someone would pay millions of
  • 00:09:37
    dollars for a painting, as pretty as it
  • 00:09:40
    may be. But take someone like Steve
  • 00:09:42
    Cohen. He's one of the most successful
  • 00:09:44
    hedge fund managers in the world. And
  • 00:09:46
    he's got like a billion dollars poured
  • 00:09:48
    into his art collection so far. We're
  • 00:09:50
    talking a multi-million dollar Picassos,
  • 00:09:53
    Warhols, and Bosats hanging literally in
  • 00:09:56
    his living room. But why? Well, showing
  • 00:09:59
    off the art is probably part of the
  • 00:10:01
    equation, right? But more importantly,
  • 00:10:03
    he knows that there's only one of these
  • 00:10:06
    paintings that he owns, and there will
  • 00:10:08
    only ever be one. Fine art can be
  • 00:10:11
    beautiful. Yeah. But its timeless value
  • 00:10:14
    comes from scarcity. And when the
  • 00:10:16
    world's wealthiest people all have their
  • 00:10:17
    eyes on the same tiny handful of pieces,
  • 00:10:20
    those prices can reach into the
  • 00:10:22
    millions, stay there, and even grow. Art
  • 00:10:26
    also doesn't behave like stocks or
  • 00:10:29
    bonds. It's not tied to interest rates
  • 00:10:31
    or company earnings. It exists outside
  • 00:10:34
    of the system, which is exactly why it
  • 00:10:37
    works so well as a store of value, no
  • 00:10:39
    matter where you are. But it doesn't
  • 00:10:42
    stop at paintings. When you've got more
  • 00:10:44
    money than you'll ever need, there are
  • 00:10:46
    more than enough collectibles to choose
  • 00:10:48
    from. Think luxury watches from PC
  • 00:10:50
    Philippe, jewelry, or rare Ferraris that
  • 00:10:53
    can double or triple in price over the
  • 00:10:55
    years if you know what you're doing.
  • 00:10:57
    These days, even rare wines, vintage
  • 00:11:00
    sneakers, or old comic books and Pokemon
  • 00:11:02
    cards are being treated like asset
  • 00:11:04
    classes. Not because of the most useful
  • 00:11:07
    things in the world, but because they're
  • 00:11:09
    finite, deeply desired, and in the right
  • 00:11:12
    circles can be resold for boatloads of
  • 00:11:15
    cash. Collectibles tell a story. That's
  • 00:11:18
    what's fun about them. And those stories
  • 00:11:20
    can carry millions of dollars in value,
  • 00:11:23
    which is also what's fun about them. But
  • 00:11:26
    some collectibles though, they're not
  • 00:11:28
    even things you can touch or see. And
  • 00:11:29
    honestly, that's why cryptocurrency is
  • 00:11:32
    such a controversial store of value, if
  • 00:11:35
    you can even call it that. Ask around
  • 00:11:37
    and people will tell you that
  • 00:11:39
    cryptocurrency is either the future of
  • 00:11:40
    money or a speculative bubble or the
  • 00:11:43
    greatest Ponzi scheme in history. Either
  • 00:11:46
    way, it's become impossible to ignore
  • 00:11:48
    it. Just look at Michael Sailor. He's
  • 00:11:50
    the founder of Micro Strategy, an
  • 00:11:52
    investment company that's bet tens of
  • 00:11:55
    billions of dollars on Bitcoin. In
  • 00:11:57
    Sailor's words, Bitcoin is digital gold,
  • 00:12:00
    except it's easier to move, harder to
  • 00:12:03
    seize, and provably scarce. So, to him,
  • 00:12:06
    this isn't a gamble. He sees Bitcoin as
  • 00:12:08
    a long-term store of value. And the
  • 00:12:11
    thing is, there will only ever be 21
  • 00:12:13
    million bitcoins. That is it. It's built
  • 00:12:16
    into the code. No one can change it. and
  • 00:12:18
    no central bank can just print more of
  • 00:12:21
    it. That hard cap is what gives Bitcoin
  • 00:12:24
    its value. So, like a lot of other
  • 00:12:26
    stores of value that we've talked about
  • 00:12:27
    in this video, it's just a matter of
  • 00:12:29
    supply and demand. Other
  • 00:12:31
    cryptocurrencies work differently. Some
  • 00:12:33
    have fixed supplies, others are
  • 00:12:36
    controlled by an algorithm. But the
  • 00:12:37
    common thread between all of them is
  • 00:12:39
    that they're built to be limited, safe,
  • 00:12:41
    and decentralized. That's why more and
  • 00:12:44
    more people, including billionaires,
  • 00:12:46
    hedge funds, and even countries, are
  • 00:12:48
    using crypto to store value outside of
  • 00:12:51
    the traditional system. Now, of course,
  • 00:12:54
    crypto is volatile, right? Its price
  • 00:12:56
    swings are wild, and there's still very
  • 00:12:59
    little regulation around it. But on the
  • 00:13:01
    upside, well, the upside is potentially
  • 00:13:05
    massive. And as a store of value, crypto
  • 00:13:08
    also offers something no other asset
  • 00:13:10
    does. You could hold it yourself, move
  • 00:13:13
    it around the world on a USB stick and
  • 00:13:15
    without a bank's permission. That is why
  • 00:13:18
    the ultra wealthy are putting a slice of
  • 00:13:20
    their portfolio into digital assets.
  • 00:13:23
    They probably don't expect crypto to
  • 00:13:25
    upend the entire financial system. But
  • 00:13:27
    if you want your wealth to last forever,
  • 00:13:29
    you also cannot afford to ignore how
  • 00:13:32
    things are changing. So there you have
  • 00:13:34
    it, Alexer. Those are the seven assets
  • 00:13:36
    wealthy people use to preserve their
  • 00:13:38
    wealth forever. Hopefully, one day you
  • 00:13:40
    can get to the point where you're
  • 00:13:42
    picking between two vintage Ferraris for
  • 00:13:44
    your next investment. But either way,
  • 00:13:46
    remember that the only investment that
  • 00:13:48
    truly lasts forever is in yourself.
  • 00:13:51
    Okay? So, go ahead and check out the
  • 00:13:52
    Alux app by scanning this QR code on
  • 00:13:54
    screen right now and you'll get a
  • 00:13:56
    special 25% off discount. Hundreds of
  • 00:13:58
    thousands of people have already started
  • 00:14:00
    changing their lives with the Alux app,
  • 00:14:02
    and we would love to have you on board
  • 00:14:03
    as well. So, with that said, Aluxer,
  • 00:14:05
    we'll see you back here next time. Until
  • 00:14:07
    then, take care, my friend.
Tags
  • wealth
  • money
  • stores of value
  • real estate
  • stocks
  • education
  • precious metals
  • government bonds
  • fine art
  • cryptocurrency