High Leverage Opportunities

[Northern Pilgrim]

Wanted to get a thread going for sharing high leverage opportunities and advice for younger guys looking for a better way forward, in terms of earning and investing.

On the old forum scotian started a great thread about working in the oil patch, hoping we can continue and build a new one along the same vein.

On that note, here are some basic premises:
1. Working by the hour is less than ideal, unless you are earning enough per hour to be able to provide for a family. This whole mindset of "just work harder bro!" is not going to solve the problem if it is applied in a low leverage job, company, etc...

2. The American economy of our fathers and grandfathers is looooong gone. How to position oneself (and family) in order to prepare for various scenarios should be considered by serious Christian men. I.e. de-dollarization, multi-polar world, civil war, illegal immigration/invasion, "mostly peaceful protests" etc...

3. Lastly, because this is a Christ centered forum, how does one follow the commands of Jesus, walking as good ambassador for Him while sorting through the above questions and not just chasing earthly riches?

 

[ThinTern]

"All toil leads to profit, but mere talk tends merely to poverty."

I would invest every dime you make back into yourself. Build your skillsets. Read books. Network. Learn a new industry. I hate how everybody wants to make easy money by "investing" in things we all agree are fraudulent Ponzi schemes like our current QE fueled economy. There is no easy way to wealth. There is no way to create security for oneself except through work. That's how God set this world up and how it will always be. Everybody in this country thinks that by owning equity in a company, somehow they will grow wealthy.. well that mentality becomes a problem when EVERYBODY owns "equities" and no body is producing anything real anymore. Read wealth of nations by Adam Smith for a good starting point on where productivity and the health of nations comes from. It was never from "investments" or excess capital. In fact, these things were always precluded by the real wealth of a society, which stems from productivity and industry. Scripture says be skilled at your craft and you will work for kings... In this world were everybody wants to get rich by doing no real work, adding no real value, only sitting around "investing," it has never been easier for those with skills to succeed. Learn skills.

So I wouldn't plan on any investment holdings being there for you unless you have physical possession of them. There are wealth creating assets and there are wealth preserving assets. I would start to think about creating your own forms of wealth creation such as starting a business or building something that reduces the amount of labor required for a job. As much as everybody on here bemoans tech, that's why those people got wealthy... They created something that made it so that the same tasks took less labor than ever before. They created something that connected more people with commerce. The creators of tech deserve every dime they have. That is the only way to true wealth. Every other "investment" is just going to keep you up with inflation, at best, and you'll be enslaved to the whims on those who hold your assets as the Canadian trucker debacle showed us.

As far as wealth preservation I'd start to think of physical things like land, gold, and a car. If you can't protect these physical assets, don't buy them until you have the means to protect them. Understand what wealth is and what it is not. That mentality shift has helped me greatly.

As far as following our Christian worldview, I have found that avoiding debt and not stressing about my future have helped me immensely. There is a massive mentally shift with realizing that it is perfectly fine to want less. Learn to grow your own food and be self sufficient as the scripture says a quiet and simple life is desirable. That right there is all the financial freedom you really need.

 

[Northern Pilgrim]

I would invest every dime you make back into yourself. Build your skillsets. Read books. Network. Learn a new industry.

For younger guys who are just starting out, what kind of skills specifically would you suggest and in what order? What skills are going to be relevant 50 years from now?

If one is older and has 10-15 years in an industry, it seems to me that it would make sense to develop a 'side-hustle' in the same or an adjacent industry, because the knowledge, experience and context is already there.

In this world were everybody wants to get rich by doing no real work, adding no real value, only sitting around "investing," it has never been easier for those with skills to succeed. Learn skills.

This is a good insight, adding value is key.

So I wouldn't plan on any investment holdings being there for you unless you have physical possession of them. There are wealth creating assets and there are wealth preserving assets. I would start to think about creating your own forms of wealth creation such as starting a business or building something that reduces the amount of labor required for a job.

It is interesting to study the economy of the Old Testament. Basically everything in terms of the common man is wealth generating; herds of livestock, crops, fruit bearing trees, etc.. The land is returned to the original family every 50th year, so even if there are poor decisions, the next generation has a shot. The price for land is dependent on how many years until the 'reset', but that keeps the rich from buying up everything in perpetuity.

As far as following our Christian worldview, I have found that avoiding debt and not stressing about my future have helped me immensely.

Yes, step number one is to get out of debt.

 

[Get2choppaaa]

For younger guys who are just starting out, what kind of skills specifically would you suggest and in what order? What skills are going to be relevant 50 years from now?

Basic knowledge of finance / Understanding of the Time Value of Money ect.

https://www.investopedia.com/guide-to-financial-literacy-4800530

Time management skills - Developing routines and keeping with them.

Excel skills. These can all be self-learned with tons of Youtube videos/evidence available.

If one is older and has 10-15 years in an industry, it seems to me that it would make sense to develop a 'side-hustle' in the same or an adjacent industry, because the knowledge, experience and context is already there.

Not necessarily, only if one is stagnated in their current position and does not have an opportunity for any further advancement.

If you're going to make manager/management in a company... you usually do that within 10 years of employment. If by 15 years in you've never had a subordinate... its unlikely you'll be able to advance too far... Your only benefit there is as an individual contributor, which can be lucrative but not as much as a management role.

 

[Pointy Elbows]

Agree wholeheartedly that young guys acquire skills and reinvest heavily in their own selves - first. Pick up any skill you can, find a niche (hopefully one you enjoy or at least find tolerable) and dig in. After a little success, double down. Refine and Repeat. Doesn't matter if you are washing windows, writing code, becoming an industrial safety officer, or crushing one stock. If you hit failure, that's life. Try again. If you are under 30, you are expected to fail, so nobody cares much if you do. There's your pass to take risk.

It is tough to overstate the value of young man energy and young man brain sharpness/focus. When you're 50, you'll miss those two, even if you have done well.

As for high leverage opportunities, consider coat-tailing on industries that have been recently consolidated by Private Equity firms. Some PE firms are great and do a fine job of scaling business up. Some are not. Either way, small businesses are bought up and grouped together. These small businesses were built on hands-on leadership that was customer-centric and they became very intuitive to their given market. That edge is sometimes dulled, leaving a territorial void in that industry. Right now, PE is buying up lots of trade businesses. Even if they have a large share of a given market, it is still likely a highly fractured market, and a "mom-and-pop shop void" is developing.

Another leverage opportunity is to buy a small franchise, then master franchise multiple units. Basically, you become your own PE operation. Done well, you can master a given niche, then spread overhead expenses across multiple turfs. Look for franchises with high success rates, low/no recent lawsuits, and happy franchisees that are willing to talk. Don't talk to the guy in the next town over. If he's doing well, he is already thinking about buying the territory you are considering.

As for doing it in an honorable way: your business does become a reflection of you. Do you steal from your men, vendors, customers? Expect theft. Do you talk big but never show up on the crappy days? Expect low investment employees. Do you spread the money if you have a windfall? Expect buy-in. Do you see your men as another of God's creation, like you - with ALL your visible flaws? Expect decency.

 

[Get2choppaaa]

When you say "high leverage" opportunities... What specifically do you mean?


Leverage has the below meanings in finance

FINANCE
the ratio of a company's loan capital (debt) to the value of its common stock (equity).
the use of credit or borrowed capital to increase the earning potential of stock....

Or

To use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.

 

[Northern Pilgrim]

When you say "high leverage" opportunities... What specifically do you mean?


Leverage has the below meanings in finance

FINANCE
the ratio of a company's loan capital (debt) to the value of its common stock (equity).
the use of credit or borrowed capital to increase the earning potential of stock....

Or

To use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.

Specifically how to maximize time to get a good return. Whether investing that time into learning new skills for career opportunities or something like apprenticing in a blue collar trade. Rather than allegedly working 24/7 like some posters on CiK and not being able to afford a family, finding options that will allow financial independence long. Basically making wise moves earlier on in life to avoid untenable situations down the road when the chickens come home to roost.

Maybe this should be in the first post but advice or personal anecdotes such as:
- Relocating to a state with lower income taxes and cost of living
- Moving to a lower cost part of your city
- Rent splitting, subleasing rooms on a house, etc...
- Finding nearby side hustles with lots of flexibility

Mostly just to help guys who are trying to prepare for having a family or already have a family and are struggling to make ends meet, but avoiding the boomer copypasta "find good job, work hard".

 

[Australia Sucks]

I think for most young guys the most realistic path is to work hard at the beginning to get initial starting capital then after that focus your energies on investing well.

For example a young guy fresh out of high school get two jobs and work 60 hours per week whatever type of work you can get. Try to live rent free with your parents if possible, I believe a lot of parents will allow it if they see you are saving a lot of money and investing it for your future. If you do that and save 70% of your after tax income and invest it wisely in things that make strong gains you can easily be retired well before 40 and maybe even by 35 or 30 even depending how well your investments do. I believe for a lot of young guys this is the path that offers the highest chance of success in a reasonable time frame.

 

[Cornelius V.E.]

I believe "high leverage" is a reference to Alex Hormozi who advocates finding opportunities to maximize your time input. For example, someone who starts a restaurant might invest 300k and work 100-hour weeks to make a max profit each year of 300k. Conversely, someone might invest 300k into a women's clothing company and work 100-hour weeks and be able to scale this up to a business that generates 10 milliom+ per year in profit. The 2nd opportunity has more leverage, because there's more potential for high return for the unit of time/money you put into it.

I 100% agree with ThinTern: our focus as Christians shouldn't necessarily be on maximizing our profits, it should rather be on providing real value to society and living simply. Maybe we can become multi-millionaires if we take on a ton of debt to invest in investments on a screen or in some real estate gamble, but did we actually provide value? No, and instead what we did is we wasted many years of our life constantly stressing about the amount of debt we have. Even if it pays off (which is a big "if" since these things are never what they're marketed to be) is that really the life we want to live with the limited amount of time God has given to us in this life?

I find myself in a similar scenario to many of the posters here: searching for what to do next. I currently work in test-prep (kind of just fell into it after university), but it's a dying industry. If I were to start my own company, there's a very small limit on how far I can take it. More than anything, however, I feel that I don't really provide any real value. I'm basically just helping kids to go get thrown to the wolves of our modern university education system that is also going to provide them no real value (since none of my students are motivated enough to become doctors). Most of my days are spent answering emails or doing some other type of useless/redundant online admin task. It feels like a total waste of time as a man: I don't build anything or fix anything of value.

I've recently been getting deep into Matthew Crawford's works like Shop Class as Soulcraft. I'm considering even moving my family to the US (I'm a citizen) to pick up a trades job, or maybe start a moving company, maybe learn some skills to eventually start a handyman business, maybe pursue flight training to become some type of pilot (airline, cargo, helicopter ems, etc). Right now it looks like my top choice is to become an electrical lineman. I love being outside, I never want to answer an email ever again, I never want to be in front of a screen (especially not at home since I don't want my children to see me on a screen all day), and I love the idea of working with only/mostly men (99.9% of linemen are men), getting paid a good wage, being high in demand, and providing an essential service to help others survive and compete in the modern world. I workout a lot and feel great being physically active.

Another aspect of "high leverage" opportunities that even St. Paisios of Mount Athos talked about is to find something that really suits you. If you really struggle to bring yourself to do things (like me, I dread the idea of answering pointless emails where I have to be fake and pretend I care about some student's prospects of getting into Notre Dame or Harvard or wherever), it's going to be hard to compete against others in your industry who really believe in what they're doing and enjoy the work. If you find something that you actually find worthwhile, however, it doesn't become so daunting to really give yourself to the industry/job/business and do whatever it takes to excel and dominate.

If anyone has any ideas on the above or any suggestions, I'm open ears. I've reached a point spiritually, however, where I can't foresee myself doing test prep for much longer, and I'm actively seeking opportunities to do real work instead. I feel as a man, deep down, I need to work hard and do something that provides value to society. It's become a sort of spiritual necessity.

 

[Cornelius V.E.]

Here's a good intro/starter on Matthew Crawford and his work:

 

[Northern Pilgrim]

I love being outside, I never want to answer an email ever again, I never want to be in front of a screen (especially not at home since I don't want my children to see me on a screen all day), and I love the idea of working with only/mostly men (99.9% of linemen are men), getting paid a good wage, being high in demand, and providing an essential service to help others survive and compete in the modern world. I workout a lot and feel great being physically active.

Another aspect of "high leverage" opportunities that even St. Paisios of Mount Athos talked about is to find something that really suits you. If you really struggle to bring yourself to do things (like me, I dread the idea of answering pointless emails where I have to be fake and pretend I care about some student's prospects of getting into Notre Dame or Harvard or wherever), it's going to be hard to compete against others in your industry who really believe in what they're doing and enjoy the work. If you find something that you actually find worthwhile, however, it doesn't become so daunting to really give yourself to the industry/job/business and do whatever it takes to excel and dominate.

If anyone has any ideas on the above or any suggestions, I'm open ears. I've reached a point spiritually, however, where I can't foresee myself doing test prep for much longer, and I'm actively seeking opportunities to do real work instead. I feel as a man, deep down, I need to work hard and do something that provides value to society. It's become a sort of spiritual necessity.

Right with you on this brother. Men were made to work, work is not bad like some are making it seem to be these days.

I find it interesting that one of man's first "jobs" was to tend the garden. Even in the pre-fall state, work was there. When everything had been declared very good by God, He still had something for us to do in tending to His creation.

 

[Northern Pilgrim]

Here's a good intro/starter on Matthew Crawford and his work:

Seems like more and more folks are seeing the negatives in modern society and adopting this line of thinking.

 

[Rational1]

Pick a career field that’s not easy and uses specialized knowledge. That way the barrier for entry is higher and you have less people competing for roles.

You don’t necessarily have to love it, just enough to be able to do it consistently. It can be corporate work, a trade, or your own business.

Invest your money and diversify. While your friends are buying and upping their lifestyle save and invest your money instead.

If you want to raise the ranks, you have to play politics. I personally suck at this, because I speak my mind too often. Identify who the key decision makers are and befriend them.

Always negotiate for a higher salary.

Raises are usually low, but if you go to another company you can negotiate for a much higher raise than moving internally.

Invest in yourself and become a lifelong learner. Learn how to learn, gain advanced degrees especially if your company will pay for them.

Keep your emotions in check, another thing I have trouble with. You will encounter sociopaths or just straight immoral people who will do anything to get to the top. You will be waiting an eternity for the evil people to get what’s coming, leave it to God. If the culture is really that bad, leave for another company.

If you can find a majority Christian workplace that pays well even better. I have not been successful in this.

Your boss and your bosses boss are the main people who determine your destiny. If you don’t get along with them you will have a tough time, if you can work them for advancement you will have an easier time.

Just some quick notes…

 

[chance vought]

I find myself in a similar scenario to many of the posters here: searching for what to do next. I currently work in test-prep (kind of just fell into it after university), but it's a dying industry. If I were to start my own company, there's a very small limit on how far I can take it. More than anything, however, I feel that I don't really provide any real value. I'm basically just helping kids to go get thrown to the wolves of our modern university education system that is also going to provide them no real value (since none of my students are motivated enough to become doctors). Most of my days are spent answering emails or doing some other type of useless/redundant online admin task. It feels like a total waste of time as a man: I don't build anything or fix anything of value.

Providing real value will become more important in the next decade. Right now we still live in clown world.

I've recently been getting deep into Matthew Crawford's works like Shop Class as Soulcraft. I'm considering even moving my family to the US (I'm a citizen) to pick up a trades job, or maybe start a moving company, maybe learn some skills to eventually start a handyman business, maybe pursue flight training to become some type of pilot (airline, cargo, helicopter ems, etc). Right now it looks like my top choice is to become an electrical lineman. I love being outside, I never want to answer an email ever again, I never want to be in front of a screen (especially not at home since I don't want my children to see me on a screen all day), and I love the idea of working with only/mostly men (99.9% of linemen are men), getting paid a good wage, being high in demand, and providing an essential service to help others survive and compete in the modern world. I workout a lot and feel great being physically active.

Working outside in a male dominated field is very fulfilling and usually pays well. The more skill and danger involved, the more it will be male dominated, and pay will be good to lucrative. In many cases you will also answer to nobody, because the boss is either miles away, or doesn’t have the first clue about how to do your job, but knows enough that any meddling with you will only make things worse. My field is 95% male, and 99% stress/drama free.

Another aspect of "high leverage" opportunities that even St. Paisios of Mount Athos talked about is to find something that really suits you. If you really struggle to bring yourself to do things (like me, I dread the idea of answering pointless emails where I have to be fake and pretend I care about some student's prospects of getting into Notre Dame or Harvard or wherever), it's going to be hard to compete against others in your industry who really believe in what they're doing and enjoy the work. If you find something that you actually find worthwhile, however, it doesn't become so daunting to really give yourself to the industry/job/business and do whatever it takes to excel and dominate.

Find what interests you and make money with it.

If anyone has any ideas on the above or any suggestions, I'm open ears. I've reached a point spiritually, however, where I can't foresee myself doing test prep for much longer, and I'm actively seeking opportunities to do real work instead. I feel as a man, deep down, I need to work hard and do something that provides value to society. It's become a sort of spiritual necessity.

Being an investment banker or finance in general is the most lucrative “career”, but many people find it soul sucking and pointless, and eventually quit. These jobs will go away eventually, anyway. Real jobs involving real value will remain. Unfortunately there has been a decline in real wages for most jobs over the last 50 years. This trend is starting to slow, and even reverse in some cases (trades like HVAC and plumbing). Male dominated fields especially those that have a large skill hurdle, have declined more slowly than other jobs (other than finance.)

 

[cosine]

For younger guys who are just starting out, what kind of skills specifically would you suggest and in what order? What skills are going to be relevant 50 years from now?

1. If you think, "maybe I should try programming/coding?" then I think you owe it to yourself to actually attempt to learn it.

2. If you're already handy, then trades make a ton of sense. So many people(especially women) wanting to work in white collar jobs in marketing, HR, etc, that those industries are flooded with applicants.

3. As @Pointy Elbows mentioned, running a business(es) is a fantastic way to go.

4. Above all, when things are expensive the way they are now and you have little money, invest in yourself instead of overpriced assets.

It is tough to overstate the value of young man energy and young man brain sharpness/focus. When you're 50, you'll miss those two, even if you have done well.

I have found that "House Hacking" is the most reliable way for a young person to build wealth:
- You buy a house, and rent out the other rooms.
- If you're in a low cost of living area, you likely get extra cash flow
- If you're in a high cost of living area, you cover the mortgage and gain appreciation
- It's becoming harder now with prices plus interest rates.

When you want to start a family you can't really have roommates. But this strategy built me a lot of equity I can use as a "nest egg" to buy my family a much better place to live, and with much less debt.

 

[Unending Powerhouse Match]

Other than trades, what fields are overwhelmingly male-dominated? STEM careers should be overwhelmingly male-dominated, but there's so much affirmative action and incentives going on to get women into those fields that they all seem to have a lot of obnoxious women in them now. It's still mostly men in STEM, but from what I've read and been told, there's now enough women to cause a lot of headaches and drama.

 

[Get2choppaaa]

Other than trades, what fields are overwhelmingly male-dominated? STEM careers should be overwhelmingly male-dominated, but there's so much affirmative action and incentives going on to get women into those fields that they all seem to have a lot of obnoxious women in them now. It's still mostly men in STEM, but from what I've read and been told, there's now enough women to cause a lot of headaches and drama.

Energy is pretty much male dominated still.

There's a few women here and there, but that's a majority male world.

Just stay away from european companies and you're fine.

 

[cosine]

Energy is pretty much male dominated still.

There's a few women here and there, but that's a majority male world.

Just stay away from european companies and you're fine.

Energy is a fantastic industry. Some european companies are great, or rather working for their US branches can be great and lucrative.

There is huge demand/opportunity for both white and blue collar work on the Transmission space. Lefties are always installing more renewable power plants which have transmission issues, and patriots and Taiwanese are building chip plants which use incredible amounts of power. Both sides need to be hooked up and then there's tons of work just maintaining it. The transmission sector presents a particularly lucrative opportunity for young people, men especially.

Also, there are some fantastic opportunities at European energy companies, at least in their US branches.

Being an investment banker or finance in general is the most lucrative “career”

Software in silicon valley beats out finance these days. It's also much easier to get a "normal" job paying $200k plus there, whereas you have to put in insane hours in NYC to get to the upper echelons in finance that actually pay well. On top of that, plenty of high end trading firms like Jane Street are paying computer scientists better than finance jobs.

 

[KomnenAl]

If you are young, following Dave Ramsey's advice is the best thing you can do to your future self.

 

[SkiPro]

In case anyone is wondering, owning a ski school is not a high leverage opportunity. It would have been easier to take a big pile of money and set fire to it