How Misinformation Makes the Rich Richer and Keeps the Ignorant Poor
There’s so much misinformation that’s spread like a disease now that the days of the keyboard warriors has come to fruition.
Everyone has an opinion and a platform to spew it on the internet even if they haven’t really earned their voice. This is an issue for those of us who can see through their BS, as it becomes a nuisance, and confuses the marketplace when there are genuine facts that can help people learn. Those that actually have valid information and want to share are sometimes drowned out by the exorbitant amounts of fiction flingers talking about something they have limited experience with.
The other reason this misinformation spread is an issue, is because it unfortunately infects the minds of weaker individuals who don’t do their own research, or form their own opinions. So what ends up happening is these people (who have been duped before, or never really invested in themselves or a path they were pursuing long enough) never give something that can change their life a real chance.
So why does watch trading fall into this category, and what are some common misconceptions about it that make the rich richer, and keep the ignorant poor?
Let’s start with why watch trading is such an amazing opportunity to pursue in life regardless of where you’re at mentally or financially. Luxury watches are a phenomenal way to enhance your life no matter what you do. They look, feel, and wear like a million bucks, and they get you to appreciate the craftsmanship of those masters who have worked for generations to build beautiful art. Also, by wearing luxury watches, you attract other like-minded and successful people who turn into friends, colleagues, and business connections. As a great bonus, you can make really good money enjoying them as assets. This is where a lot of the misinformation stems from as most people don’t realize how much this is true and can be made.
Misconception #1) – Luxury Watches are liabilities not assets.
This is by far the most popular tidbit of misinformation out there. Although there is some truth to this statement. Luxury watches are liabilities when purchased at too high of a price and when the wrong brands are purchased (ones that don’t hold market or resale value). They ARE ASSETS when the brands that hold value well are purchased at the bottom of their depreciation curve, or when they’re bought at retail and appreciating over time above that price. But unlike other commodities, these timepieces have a true bottom cash value, and can be enjoyed for value-added pleasure while they make you money. You can’t do that with stocks or real estate.
Misconception #2) – Luxury watch trading isn’t liquid
A lot of people who can accept that trading luxury watches can be a profitable venture still get hung up on this idea that you can’t liquidate watches fast enough to be stable. This all comes down to who and what you know quite frankly. If you have never traded a watch before and don’t think you have a network of people who would buy it from you, then of course it’s understandable why you would think this. But I’m here to tell you, that’s a fallacy. In the Watch Trading Academy, you’re taught what you need to know to make exiting watch positions much easier than your everyday owner. You also get access to thousands of watch traders who want to buy/sell with you as part of the community. And when you have a support network that you can engage with like that instantly, then you can move pieces extremely easily as long as you bought right. So in essence you could liquidate a watch in an hour if you really needed to. I do it all the time. So when I hear people say watches aren’t a liquid asset, their perspective is very limited.
Misconception #3) – Only full blown dealers and teachers make the big money
Often times people like to project that although a venture like watch trading may be lucrative for the chosen few, it’s a total waste of time for the majority. This couldn’t be further from the truth. Yes of course the full blown dealers, jewelers, and platform builders are making good money. They’ve been mastering their craft for years and have the capital to back their endeavors. But that doesn’t mean the pie isn’t big enough for everyone and that everyone can’t get a big slice of it! There are college students and teenagers who are making over $100K/year profit trading watches. There are Dads,Engineers, Doctors, entrepreneurs, and Truck Drivers making 5-figures a year or even a month in some cases doing this part-time as a hobby. I’ve seen people make millions of dollars a year doing this and I’ve seen guys trade a few watches a year and still make $20K. The results really come down to learning the trade, how exploiting the margins of the watch industry works, and applying this knowledge through your own effort. It’s not rocket science, but it does take effort which a lot of people don’t like to do. That’s why this is a very simple concept to make work but not always the easiest thing in the world for lazy people. The best part about learning to trade watches is you really don’t even need that much to start. You can begin with as little as $1500 and roll your profits over and over again into new inventory.
Misconception #4) – Traditional investment vehicles are more worthwhile
Personally, I’m an advocate for doing what you want if you balance your financial portfolio, risk/reward, and are achieving what you want out of it no matter what you like investing in. But what is frustrating is hearing people spew misinformation about how lucrative watch trading is vs. other investments when they have no experience. The truth is, understanding the ROI is not complicated. If you invest in traditional methods that the masses apply to, you can expect traditional and non noteworthy returns. No matter what fund or index you invest in with stocks, you’re lucky to turn 7% year over year. That’s not considering inflation.
With real estate, the returns can be stronger, but the amount of time/capital risk and headache that comes with the business whether that’s flipping properties or renting units is much greater. Average flips take 4-6 months, and require heavy upfront costs to get started. Renting multiple units can be a good income stream overtime, but you also have to worry about being a landlord, getting permits, and dealing with maintenance.
With watch trading. The assets are small enough to carry around with you anywhere, and the maintenance is de minimis. ROI on average is around 20% and can be actualized every 5 days when you’re good at trading. When you’re average at trading that timeline is more like a month and closer to 15%.
These are still exceptional returns and fast hitting profits that can compound over and over especially as you grow your inventory.
So don’t get lost in all of the BS that is constantly projected on the internet. Always question the intent, experience, and knowledge of the source it is coming from, and don’t believe everything people say. Take some time to do your own research and legwork so you can formulate your own opinion on the matter. Remember misinformation can make the rich richer when they pursue wisdom and execute on proven strategies. And makes the ignorant stay poor because they follow other sheep and can’t form their own values and thoughts.