🚀 Infinite ROI: Tesla + ₿ + 🤖 = Amplify Your Wealth

Hello everybody. It is Saturday. No, it's Sunday. That's how busy this weekend was. And this one is a banger. There's a lot in this. An awful lot. An awful lot of numbers, an awful lot of forecasts, an awful lot of projections, and an awful lot about what's going to happen over the next 10 years. So, let's get into the story. It's called infinite ROI and how you can make it. And uh again, just to stress, the world is changing very fast and that'll be a big part of this exact video. Big thank you to the mods in the chat. Kung Fu Panda, Sha D, TN K8, and yes, it'll be a banger. Jay Wears, Rusted Woods, and Joe, thank you all for coming. Let's get into it. And this some of this I'm going to go really fast because there's a lot. But if you want to hit pause and watch that's fine. But we'll try to get through it quick. And of course I am just a guy on the internet. I'm nobody special. Anybody could do this. But it's definitely not financial advice. Just a different way to think about things. And all the questions come from Patreon. And we did a little bit of a different sampling of questions this time around. But let's get into the first one.

This is from vaccinated pillman. Uh, I use your table to try and predict the price of Micro Strategy shares. Uh, am I right? This is part one. Am I right in thinking your multiplier is a price elasticity factor based on expected supply squeeze at higher allocations? And how do you work it out? Two, based on your Bitcoin impact table, I projected Micro Strategy prices, assuming it currently takes approximately 291 Micro Strategy shares to buy one Bitcoin, and that ratio stays constant. No, it doesn't. We'll get into that in a second. This gives me the projected micro strategy prices of 1,02, 2,175, 4,000, 6,200, and 9,100 for the 1 to 5% allocation scenarios. Do these figures look in line with your own calculations? Uh, three. From 2020 to now, has Micro Strategy acquired to buy one Bitcoin change? Thanks. You are the best guy in the internet. Thank you so much.

Yes, there's a lot to this question. I'm going to break it down a little bit different because everything is a moving target. There is no static status quo whatever when you look at this beast. Now, one of the models of course that I've been running since 2020 is what I call the ARB model which created the ARB cloud to understand compared to Bitcoin. Is it overvalued or undervalued? But everything changes all the time. The number of shares, the amount of Bitcoin they hold, Bitcoin price, the stock price, it's all all over the place. The amount of debt, etc., the outstanding shares. Did I say that already? It's really difficult. So, let's look at this for a second before we get into the other questions.

First of all, the easy way to think about where the price could go, well, let's talk about shares first. One Bitcoin, one whole coin in Micro Strategy shares is 450.94 shares. Okay, that'll cost you $178,000. That's a lot. All right, so it's not 250, but I'll talk about the actual shares required if you eliminate the NAV premium. That'll be an interesting calculation. But if you look at this table here, you assume your Bitcoin price targets of 120, 140, 165. 165, by the way, is where I land based on Bitcoin tracking the M2 money supply, global M2, by the way. And that could take us down to the bottom table of the NAV premium. Currently, the NAV premium is 1.50. So it's low and the stock should be around $3.99 per the model. The actual live stock price is 395. Remember as well this model is live. It pulls in real-time feeds. So the Bitcoin price has gone up while the ston market is closed. Therefore the discrepancy is here. Okay? So just ignore that. But just imagine it's pretty close. So that's like NAF premium 1.5. Um, if we go to a nav premium of two, the stock would be 532. If we go to a nav premium of 2.5, the stock would be 665. All right.

Now, Michael Sailor did buy and he'll announce it first thing tomorrow, but I saw his bat signal and he bought again. And he probably bought using STRC, so there's no ATM dilution, which is good for the stock price. But the question is, how high do we go now all the way out to the future? If Bitcoin gets to a million dollars and this thing becomes huge, expect the NAV premiums to come down close to close to one. So you won't get these crazy nav premiums in the future. Unless of course they completely rewire the entire financial market.

Now back to the other question. Okay, the other thing that's so important and this is three little charts to give you an idea of how things have changed over time. Let me walk you through them first. First of all, it's a big spaghetti chart. In blue, you've got the Bitcoin price and you can see the bear there, the double top in 2021 and then the bare market of 2023, no 2022, and then the climb with the volatility. Then in red, you've got the number of Satoshi's per share. All right, so to calculate that, you calculate the amount of Bitcoin they have. You multiply it by 100 million, and you divide it by number of shares. That's the Satoshi's per share, which I've been tracking as well for years. And then in yellow is the shares required for one bitcoin. But a different view of this is this. This is the satoshi's per share. And what's interesting about this is it keeps on climbing. We went through a spell there where it didn't climb that much. You know, it climbed a lot from August 2020 up until around late 2021. Then it was kind of flat, but that's the bare market. You know, the bare market with not a lot of buying, etc. But then it started going on a rampage again as of the time of the US presidential election. And since then it's just gone ballistic. And because the NAV premium was high, they were able to sell a lot of ATM and turn that into Bitcoin. And of course, Bitcoin went up too. And this is probably the most important one too. This is the number of shares required for one whole Bitcoin without any NAV premium. This assumes one share. If you bought one share of Micro Strategy, you get a bag of Satoshi's. And this is what I call share accretion. This is what very few people actually get and how it's changed over time. So we went from needing 4,482 shares of Micro Strategy to get one Bitcoin in August 2020 to now just 524 shares. Again, you get a lot more Satoshi's per share. And you see the way it happens in Rampages, all the crazy buys, all the crazy ATMing. And that is basically how it works.

Now getting back to this, it gives you an idea of everything that changes. Okay, the Bitcoin price changes, the amount that they buy changes, the Satoshi's per share changes, the price of Micro Strategy changes, the amount of shares change, everything changes. So it's a complete moving target. So to be able to predict how many shares, how big their Bitcoin bag will be in 2030, etc., etc., is a fool's errand. Doesn't make any sense, but you can directionally figure out exactly where we're going from this. So, Mr. Pillman, I hope that helps. I told you I'd go fast.

A lot to cover today from Trading Apologist. And by the way, shout out to Trading Apologist. He used to be IIA apologist back in the day. Fun times. But this is a very good question to think about. And this question is so important because for years I've been talking about exponentiality and how hard it is for the brain to understand exactly what's coming because the brain thinks in a linear line. It doesn't think like that. So, let's get into it. Shout out to Trading Apologist. I've been thinking a lot about the Tesla $8,000 price target for 2030 to 2032. And I can see how the business could get there through all the separate lines of business. Granted, we need a lot of things to align for Tesla to achieve dominance in respect to fields of AI, robotics, autonomy, battery storage, etc. And the numbers in your and CERN's calculations all make sense. But a $25 trillion company would be 20% of forecast global GDP, 125 to 150 trillion, is the target for 2030. Reaching 20% of global GDP seems quite the stretch for one firm to achieve. In your calculations, are you assuming productivity boom that would take global GDP much higher than the current 125 to 150 trillion forecast or is there something else I may not be thinking about when assessing this?

Wow, there's so much to talk about here and I'm I'm not even going to talk about the debasement of money because you know when I did my 8 ways to 8,000 video in 2023 years ago uh who is based on craziness and I am even more bullish now and that was for 2032 and then CERN Basher came on Herbert's channel and he had an $8,200 price by 2030. But remember as well, $8,000 in 5 years won't be worth $8,000. I'll show you some debasement numbers in a while, too. And remember, we just hit 37 trillion in debt. And they added 200 billion in days after that. So, it's now 37.22 trillion in debt. Every time they issue new money, everything gets debased. So, think of five years from now at this rate of current money printing, $8,000 would be like four grand. Okay? So that's the first part, but I want to show you to set the stage of exactly how big AI is and how much the world is going to change. Uh this is the AI perspective. This is the Nvidia market cap as a percentage of global GDP of Nvidia and the listed exchanges in the UK, France, and Germany. Again, Nvidia's market cap now represents a staggering. Actually, it's higher than that than when I put this when I got this slide. The slide's about a month old. it was uh 3.6% of global GDP. Now it's 4% of global GDP and it surpasses the entire economies of the UK, France and Germany. Germany used to be a massive economy. Now it's smaller than the UK. Very bizarre. uh and by the way there are certain things happening too because yes GDP will grow but it will be concentrated just like uh 8.2% 2% of the S&P 500 is also Nvidia. Nvidia make the chips that power AI. We haven't even begun to turn on the volume the value and when that happens the value accretion not share accretion stats per share the value accretion of AI will be far higher than the market cap of Nvidia. Okay, it's a lot to take in there, but this is another simple crude way to explain it. And I think it's Peter Diamantis and many others have been saying this for a long time, but what we will see, and this is why I've been hammering the AI drum since November 2022 when ChachiBT came out. That was like the uh wake up moment. This is emergency. Ring the bell. Remember, we're going to see 100 years of change happen over the next 10 years. We're compressing a 100red years of development and innovations into just 10 years. Nobody's ready for that. Nobody's ready for that.

Now, as a canary in the mine, the little harbinger of things to come, this is the Nvidia market cap since 2020 in in five year. forget the stuff from 1999 to whatever, but just focusing on 2020 to today, it's gone up 36.6x since 2020. And this chart, uh, it says 2.98 trillion. It's not going to where it is today. Today, it's 4.45 trillion. Uh, so there's my my bad on dropping the pin at the wrong place, but I couldn't get to the edge, and you couldn't see the text, but the point is it's $4.5 trillion. So, but it has 36.6 6x in just 5 years.

Now back to your question. All right, we've seen one company become bigger than Germany, the UK, France, become a huge percentage of global GDP, become over 8.2% of the S&P 500. What's going to happen next? And this is uh sorry to harp on this because everybody needs to understand this and get exposure to AI as I've been saying for years. So till I'm blue in the face. Anyway, it's very hot here today. or maybe I'm just hot under the collar. But AI is explosive growth. Forget smartphones and everything else. It's going to change everything. It's growing exponentially. It's already better than all all the PhDs and human intelligence on the planet. And video has skyrocketed 36.6 times since 2020. And this is the productivity revolution that will supercharge the entire global economy. It's going to automate jobs. It's going to boost efficiency. It's going to add trillions to GDP. Yes. And it's going to push world output way beyond current predictions. Okay. By 2032, I believe another prediction I have. I believe by 2032, AI companies will make up at least the market cap of AI companies will make up at least 60% of the S&P 500, maybe more. It's it's going to be huge. Big tech today is like a quarter or something like that. But AI companies are going to make up 60% of GDP and the rest will be zombies. You don't want to be exposed to those zombie companies.

Now, a simple illustration of how this what I call infinite ROI. Okay, robo taxi example and I will show some math on this too. Did warn you a lot of math. If Tesla nails AI and self-driving cars, which I am 99.9% certain they will, robots and energy, it could become a $25 trillion giant. We know that. But not by hawking the economy, but growing the whole pie. Okay. The productivity added by pulling humans out of taxis, for example, and having people be able to sleep in their car on the way to work, you know, adds an awful lot of value to the world. And this is going to be like Apple and Amazon and Micros Micro Strategy, Microsoft, and everything else, but on steroids. Let me give you one simple example with numbers of how this could happen. All right? And again, these are just pull the numbers out of the dog literally, but just to show you what is theoretically possible and how infinite ROI and exponentiality works. This is why I'm so excited. Elon Musk has said they can ramp to 2 million cyber cabs. They can pop one out every I don't know 5 10 15 seconds and that is up to 6,700 of these a day. Okay, now they just dropped another 100 cyber cabs robo taxis on California. But this just give you an idea of scaling over 10 weeks. Okay, imagine they start with one cab in the first week and then three in the second week, nine in the third, etc. And by week 10 they get to 19,683 new cabs. Okay, they're adding they can manufacture 6700 a day. So that's conservative. In a whole week they do only 20,000. But each cab makes 50,000 in profit. And that profit aggregates. Okay. So does the number of cabs totals to 59,000 if they keep racking at this rate. And that would bring an annual aggregate profit of $2.5 billion. And at a P of 40, that's a hundred billion dollars. Okay? And that would add $30 to the stock price in just 10 weeks. Okay? Now, that's just 10 weeks. 10 weeks. All theoretically possible. You build something for 25 grand or 15 grand, whatever the price is, and makes 50 grand a year. Okay? That's infinite ROI. You want to spit as many of these things out as you possibly can and generate all that money. So here on the left, if they scale to 3.7 million cars in say two or three years by 2027 2028, it could generate $170 billion in profit at a P of 100, which is far lower than the current PE of Tesla. That's a $17 trillion market cap just in two or three years just from robo taxis just in the US. Okay, absolutely possible. So, we got to 17 trillion of absolute value creation. And that's the way you need to think about it. Create your own table, punch in your own numbers, a sandbag them to death as I like to do, and then you come out with your numbers. So, it's going to be crazy. And what will Wall Street do, Tardi, as I call them, when they are faced for the first time ever on earth with a company that can make something for 15 grand that generates 50K a year? all, as Michael Sailor would say, all their models will be broken. And that's what I'm here for. That's what I'm sharing it with you every day.

Now, now let's look at a little bit of history over the last 10 years, just for people to know why I am literally 86% on these four assets. Shout out to Charlie B who put this little table together and Sanjay for getting it to me. As you can see, the top three assets over the last three years are Bitcoin, Nvidia, and Tesla. Bitcoin 42,600% return. Nvidia 37,000% return. Guess what's going to be bigger than Nvidia? The answer is Tesla. Okay, that's why you get in early and you get in hard. Tesla only 199%. But on the right, technically the top four assets over the last 10 years. Incorrect. Because Micro Strategy, if it was included in this list, it would be up 2,333%. You cannot make that number up. That's from Trading View. And that would be number three on this list, just above Tesla. Again, it's not by accident. I am 86% in these four assets. Okay? All for a reason. And by the way, shout out to gold. Up 200% over the last 10 years, but the S&P beat it up 263. So, no, gold is not beating Bitcoin. always zoom out to get a feel for exactly where things are. All right. And all the other mag sevens are there, but we're at a very, very glorious point in time.

Now, I'll circle back to this stuff, but apologist, I hope that made sense. This is also a little bit of exponentiality in this question here from the Yorkshire men. Shout out to York Shire out on the Shire. I've done some rough math and calculated that if somebody was to have a portfolio of around three million in the year 2030, not today, in the year 2030 with a kagger of 30% and selling 60,000 a year for living expenses. This would mean that by the year 2035 the portfolio would be around 10.3 million and then by 2040 37.6 million. Is my math correct? I don't know how you calculated your math, but I did the calculations for you using our models. But remember, I do want to stress this too as well. We talk about dominating assets here, but all of them can go to zero at any time. Bitcoin could go to zero. Tesla could go to zero. Nvidia go to zero. We don't know what's coming. Always keep your tap dancing shoes on. Okay? Always be prepared to rotate. Nothing is forever. And it will also be diminishing returns. So just bear that in mind when we go into this as well.

So this is the config. A $3 million bag by 2030. using the model that would be exactly 2520 Tesla shares for example I just picked that randomly because we're talking about Tesla and never have 100% of your portfolio in one asset of course and living expenses as of today 60,000 but they are indexed for 2030 when you start pulling them annual inflation debased 4 and a.5% years of retirement 25 uh so let's see where we get with this so per the model 3 million bag by 2030 means you of that number of shares and the kagger of Tesla is 30%. Just want to warn you all the kagger will be a lot higher than 30%. Okay, I just illustrated here the numbers get really really nutty. Okay, it breaks all the models. That's what you have to understand. You know, it's a dream right now. Every day I wake up and I pinch myself, oh my god, Tesla's low 300s. What a joy. We'll get to the price targets tells us in a minute too, but here we are. Let's look at this and calculate. So by 2030, you'd have your $3 million balance and you'd be pulling out in 2030 74,771. Remember the model indexes it for the cost of living increase. And you let's get to your questions again. You said 2035 portfolio be 10.3 and then 20 40 37.6. I've got by 2035 the portfolio would be 4.8 million and by 2040 it' be 9 million. Remember you're still pulling your money out but the portfolio is growing at a 30% kegger. Honestly when you put in a 40% kegger things get way way nuttier. And of course Yorkshire men you can spend a lot more than your 70 grand a year on expenses. You can even buy a couple of Lambos if you want if they even exist in 2030. I think they they may not. You may have to buy a secondhand one. That's okay.

Let's get into the next question too which is related is from MMJI. You are simply amazing. I have some friends who share a common retirement question. Here is an example. In 2025, 40-year-old person expects to live until 80 about 40 years. They currently hold a million dollars in crypto, 80% Bitcoin, 20% ETH plus 100,000 in cash. If they sell the crypto today, approximately 20% will go to taxes. They have no job but they spend 50 grand annually. Please incorporate estimates for inflation and other relevant metrics based on your expertise. What changes, if any, should be made to their portfolio to allow them to retire today? Additionally, which financial instruments do you suggest including in the portfolio to generate passive income or dividends for yearly expenses? And number seven, could you also share an Excel file on your community channel that allows for adjusting the scenario?

So there are some questions that are super easy and yes I can do this but the answer would take 40 minutes to break down those eight different points. So instead what we are doing is we are building this we are going to webify this model so you can configure all your parameters drop in all your assets. Put in all your assumptions it'll be web- based. Configure everything you want. put in your taxes, your inflation assumptions, etc. And that's when you can calculate yourself. The team is working on that. We have another meeting with that on that on Monday. So stay tuned. Uh we ha we have the model. The problem is it is like literally 12 different spreadsheets. One wrong move is made, the thing is broken. So it's very fragile unless you know exact. It's like flying a 747. As I joke, if you press one wrong button, you crash and you break the model. So that's why it's not available yet, but we're going to make it webified so you can create your own personal version and play with it all day long. Build all your scenarios too. So stay tuned for that everybody. That's the next big thing on the road map. And then after that becomes the retirement compendium. Super interesting. Where to escape to to escape the matrix.

Next question. RST. You can see I'm in a rush to get all this stuff done before it's too late for you all. So, but it gives me great pleasure as well. Hey boss Jay, can you please compare sol price predictions to Tesla by 2030? Looks like they have comparable S-curve. I'm curious what works better when there are no major incidents. I assume no major instance for Tesla or Salana or outages etc. Thank you James and team.

So, I have my price prediction models and I decided for this question I would pull in the so-called experts and uh you can take this with a grain of salt and you can whatever you want with it, but Tesla by 2030 the average is 2,43. Okay, my bare case is higher than that. It's 3,000. I think we're going to 8,000 or more by 2032. And I've thought that for the last three years. In fact, I'm even more confident in those numbers right now. But by 2030, if you go to all the experts like Arc Invest, they're expected and their bull target and Ron Baron and Coin Price Forecast and Stock Scan. Stock Scan is kind of very bearish. Simply Wall Street could be very bullish. But again, you pull in the average, it's $2,400. And it's always nice to have a sandbagged number and prepare for that. So when I do my retire on bags I say that's the bare minimum say 300 shares of Tesla but then when you achieve that then you go to 500 shares maybe 600 shares then a th000 shares and you keep building up that gives you more and more cushion as well.

Now the uh Salana targets again they vary and it's interesting pulling in all these numbers some are very high like bitwise and van and some are kind of low all depends. So the average for these ones 2,700 bucks. But the most important thing is the return on investment. And actually I had that here. Remember I do want to mention as well before we jump into the ROI that Salana is a riskier asset. Always balance risk and reward. If you go for the greedy numbers, you can get your head handed to you. But the ROI on Salana at 180 bucks right now is nearly 1,400% by 2030. If these analysts are correct, Tesla 630%. I think Tesla is a lot higher. I think the Salana target is pretty decent by 2030. But remember, if everything goes onto the blockchain, and people forget this, but the most important thing on the blockchain is going to be real time financial transactions. Think stock exchanges, think of money transfers. You don't have time for any latency. If you're trading a million-dollar trade, okay? You want to know if it got filled or not within 100 milliseconds. You don't wait 5 minutes or 13 minutes. You can't. It's got to be instantaneous. There's only one chain that does that. Okay? If everything goes to the tokenized world, which I believe it will, all bets are off. And another piece of food for thought, too. Fun mind experiment. If Salana had the market cap of Ethereum, it would be at 1,60 right now. Not bad. 6x just just a little point in time. Anyway, I hope that helps. Remember, crypto is risky. Tesla is risky, too, but Tesla's less risky than crypto. And uh build your own models and see what you think.

This is from Melissa. Can you please tell me if I'll have enough to retire? I'll be 49 in 2030 and will probably live until at least 100. Longevity runs in my family. I have 0.9 Bitcoin and 250 years of Tesla. Recently, I lost my job and I'm completely burnt out on working in the type of job I was working in. What would you do? Uh what would you trade out of, say 0.4 Bitcoin and get more Tesla? Do I have enough already? I appreciate all that you do. Thank you.

I'm very sorry to hear you lost your job. Um, all around me people are losing their jobs left, right, and center all the time. The Jerome Powell from the Fed will say the job market's fine. I can tell you, I can guarantee you it's not fine at all. Okay, white collar jobs especially are being eliminated and the starter jobs are disappearing. So, it's ugly out there. So, what I would advise on the job front is understand what you love and have a passion for. do an aptitude test and then go see what's available, okay? And uh then work in that. Even if you're earning less than what you currently earn, you'll be a lot happier. When you're happier, life is so much better. But when you're stuck in a dead-end job working for a as a wage slave, it's a painful existence. Trust me, I've been there. Anyway, moving on. Let's have a look at your bags. I'm not going to tell you what to buy or sell and I will remind you again everything changes but I decided to pump your bags into the model again and calculate by 2030 if you don't start pulling money but you might have to what you could do so this is the config assumptions again pulling out 47,000 a year living expenses it doesn't take into account your taxes I don't know your tax situation you start in 2030 and I took years of retirement 40 because 50 is like way too long. But just to give you an idea of what the model would do and it have your 0.9 Bitcoin and your 250 years of Tesla and then you can modify them. And remember this will be webified soon and you'll be able to play with it yourself. I'm just giving you a little taste of what it could do. Remember again all assets go to zero and 47K is the current burn per year to live on but by 2030 that becomes 59,000. And you can see here your portfolio will get you all the way to 2070 if things are the way we assume. And the kagger I assumed for Tesla is only 30% and Bitcoin only 25%. That's very important. This model is very heavily sandbagged. So yeah, you are good as long as you don't start pulling from that bag now because the opportunity cost of spending your Bitcoin now or your Tesla now is very high. Very high. I'll talk about why in about two slides. Okay, so I hope that helps. I did warn you all. I'm going to go very fast today. Lots of stuff to get through.

This is from Sean 20. The power of leaps video. Hi James. Thank you for all you do. Your videos are a daily part of my life. Woohoo. You recent you recently made a video 29 100% ROI with options and I'm trying to understand the math. I recently initiated my first lead position with Tesla. It was a December 2027 call option with a strike price of 270. I like the 27s and sevens. H at a cost of $151.38 per share. Each contract is $15,138 for a lot of 100 shares. I paid 15,130 for the contract plus $27,000 on the 12 17 2027 uh for the 100 shares. Correct? So if you do exercise, you're going to have to come up with that 27 grand. If the market price is say $600 the daily exercise, I will have $60,000 of Tesla stock at about a 43% increase in my total output of cash between the contract and the shares. Nowhere near 29% of it as illustrated. Where am I going wrong with the math?

Well, first of all, this is regarding Tesla. Uh this is from Mark Newton who's on with Herbert Ang and he believes Tesla will hit at least 488 by year end and then in spring or summer 2026 700 bucks. So and he's been right on calls before. So shout out to Mark. Um that's a stake. But let one thing I have to remember and this this video of the ROI tripped everybody up. It was like people say, "Oh, you don't know how to do math." They thought I was buying that leap in the day I made that video, which is two weeks ago or something. No, the price at the time was low 100s. Okay. And the contract was a lot cheaper than it is now. And the strike was $140 strike for December 2026, not 2027, 10 contracts. The value back then at $315 a share of 315K. So your $16,000 controls 315K. This is why I hammer home. Getting in early makes investing so easy. Okay, when you see Tesla at $106, it's a dream. I never buy out of the money leaps, but I did that time, you know, uh $140 strikes, $150 strikes, etc. You go nuts. You maximize because you know the price target. You know exactly where it's going to go. So, what I do is I maximize my expected value. So even though I'm buying out of the money, I can make my dollar go further. That's what people got tripped up on. And remember as well, not only did I buy when it was in the low 100s, but the Tesla forecast is 600. So the price is nearly 6xing. Okay? And when Tesla goes to 600 next year, each contract is worth 460 times 1,000 is 460 grand. That's the ROI of 2900%. But it assumes you bought the dip when we fell to 106. very important.

Um, now there's a couple of things that are wrong with what you did and I don't want to say you made a mistake, but I'll hammer this home again. I was saying this for years and people still make this mistake. When you have the stock at 300 bucks, okay, and you're buying a LEAP and you're paying over half the stock price on that LEAP, you do not buy LEAPS. It's stupid to buy the LEAPS. You buy the stock on margin, okay? You put half down. Okay? put 150 bucks down, you buy a $300 share, okay? You don't waste money on time value on LEAPS. That murders you. Okay? Really bad. Do not buy LEAPS. They're very expensive. Do not buy LEAPS during volatile times, but you yolo into them on massive dips. Massive dips. Okay? Again, I paid $1,600 per leap in 2024. You're paying 10x that today at a much higher strike. That's the difference. Okay, you buy the stock on margin, sell calls against it or whatever else or wait for a quiet time in the market. When the volatility is high, option prices are high, especially LEAPS. That is the magic here. I hope everybody gets that very important.

Now, this is from studs related question. Can you do a procon of buying LEAPS versus SLS versus shares on Tesla right now? Can we talk about the theta decay and how that impacts? Also, do you anticipate large dips and chances of being assigned shares? And how do you protect yourself if Tesla takes a dive? I'm looking at 290 strike December 2027. Don't do it. Don't do it. Uh, you're the legend. Thank you for all you do and really appreciate what you donate to our annual friends. I got some fun ones of those today as well.

So, SLS so important, but you only only only do SLS on dips or at bottoms. Okay? And when you do that, you don't have to worry about the dive. And you don't have to ever worry about being assigned Tesla shares. I convert my LEAPS to Tesla shares when they're deep, deep in the money. But I've never been assigned a Tesla share from selling a put in my life and I've been selling them for a long time. Okay? Very important. So also, if you are selling puts, make sure you have lots and lots of margin. Okay? And the theta decay cuts both ways. That's the beauty. If you sell a put, the price goes up, the value goes down, the margin required goes down. And if you buy a coal at the same time, when it's cheap, the price goes up, the value goes up. Okay, real simple. Uh, and that's the it's like a double-edged sword, though, if it turns around. That's why you only only do that on bottoms. Very important.

Next question. This is an interesting question, too, because it goes into one of the big scams that drives me bonkers out there from Skip K. Hey, James. Thank you for what you do. The little knowledge I have acquired since being a member in the community prompted me to take a deep dive into my company match 401k. To my surprise, all assets are being invested or super low growth and I'm not allowed to pick up assets of my choice, but only what they provide. Not sure why. I'll explain why in a second. A little research I did moved me to allocate 100% of my portfolio to Black Rockck Russell 1000 index, which is half a million dollars. Can you analyze this index for growth in five, seven, 10 years as to how much this money will be? I also have managed to stack 950 shares, 200 micro strategy and of course one whole bitcoin and 600 s as you can tell where I mastered the courage to be in these positions. By the way, my contribution to 41k is 1,200 per month and it matches 100%. That's good stuff. Sometimes free money is good money but exponential returns will never be gotten in these retirement accounts and people are limited as to what they can invest in.

Let's look at this thing. This is called uh the ticker is BRG&X. It's the Black Rockck Russell Growth one top 1000 kind of small companies over 10 years it's gone up 188%. Which is not bad. Um not bad at all. You can see it is volatile. It follows the big dips. You see 19 dip there you can see in March 2020 and then we had late 2022 bare market but since then it's been on a bit of a rampage. Now if you take BRG&X you divide it by the growth in M2 money supply your return is half you're only getting 94% over 10 years always always when you're looking at an asset divided by M2 to understand exactly what return you're getting. If you divide gold by M2 over the last 30 years the result is horrific. The gold is not going to make you rich. It might it'll do better than cash, but not much more than that anyway. And gold has done very well over the last year, just like Ethereum has done very well over the last month or two. Sometimes things go up. That's just the nature of the business. But let's talk about this actual asset and get into your numbers. Uh this is a very important rule here. You watch this channel and you watch people like say Fedina Moose me talk about 14% 14% 14% 14%. I even asked Mando last DCA on Monday what is your hurdle rate? He said 15%. Okay, so he knows. Okay, if you are not making 14% on your bag, you are drowning. What's interesting about this one, if you look at the return for BRGNX over the last 10 years, it makes 13.323%. Okay, that's the average annual return. H not exactly perfect, but let's look at where you would be. I did 3 years, 5 years, and 10 years, not seven years. Uh but if you take into account your half million today, I didn't add your 1,200 per paycheck that you're adding and the company matches. It was just too difficult. Uh but basically if you just take your half million and if you can and the reason like all my life I felt it was better for me to have the money pay taxes on it and invest in it because I know I can make far more than any crappy mutual funds that your company mandates you use. Burn the hands are two in the bush. I didn't like the idea of 401ks retirement accounts. Even if I had a company match I knew I could make more on my own. That was my thing. But I also knew I wouldn't need money at 65 because I wasn't even sure I'd be alive then anyway. So that was just my whole calculus around the whole situation.

But remember you're 500k in 3 years will go to 686. 5 years about 848 and in 10 years 1.44 million but after debasement that 1.44 million is only 975k. And how much can you buy with that much in 10 years? The answer is probably not very much, right? And remember, uh I do believe in massive AI disruption which will impact the Russell 1000. There is a a little ace in the hole. If the Russell 1000, many of them die. If they're replaced with little nimbo AI companies, that could really drive the index up. I don't know if that's going to happen. Winners take most. The big guys will have all the wealth, all the money, all the control. the Nvidas, the Teslas, I expect that to continue, but it might be an exception. So that's where we are now. The big lesson for everybody, and this happens to people who are in Australia or the UK or anywhere, Canada, they're limited in what they can invest in. And why is that? I think it's for the following reasons. Okay, asset managers, the companies like the what is it called? the Vanguard and others. They aggressively sell their 401k programs to corporations and they lock in plans into high-cost underperforming mutual funds with limited investment options that restrict employee diversification. And these plans also have excessive fees including hidden expense ratios, revenue sharing, 12b1 charges, etc., which primarily enrich brokers and managers while significantly eroding workers retirement savings over time. That's why, you know, I didn't do these things. I wanted to be in control of my own destiny. And corporations are enticed by administrative ease. But the setup allows asset managers to collect ongoing fees with minimal oversight or value, turning employee contributions into their own personal infinite money glitch, not yours. That's the game. It's rigged. Sucks. H off my sandbox now. Soap box, sandbox, whatever. It's bad. They're crap. And you're getting a taste of that when when the best thing you can find is a Russell 1000. When you know the Mag 7 are driving everything. You know, 80% of the S&P 500 returns over the past year. We're in top 10 stocks. And I've proven over the last 100 years, the top 0.3% of stocks generate all of the returns. the bottom 50% generate nothing. They lose you money. Anyway, be careful. Uh sometimes it might be worth considering forgoing the company match or having a safety bag for your family, take it and just leave it there, but not contributing as much and investing yourself. Okay? Because I guarantee you buying things like Bitcoin or Tesla will go a lot further than this Russell 1000 index.

Anywh who Alberto Albert B sorry sorry would you please take a look at EOS energy great community next fantastic place to start your research nonflammable stackable grid scale battery storage 91% moving to 100% USA made big beautiful bill creates tailwinds for manufacturing credits and domestic content backed by department of energy and cberous capital management uh ties to Trump administration including CEO as under secretary of defense EOS batterings are big advantages for storage on Department of Defense basis due to nonflammability massive TAM tamping production. Would love your insight.

Let's get into it. Uh and I know about this company. I've analyzed it because friend of the channel Jeff Lutz loves it. Let's look at numbers. And I I invest based on future potential, but I also am very conservative around financials. These guys, despite the crazy demand for what they have, they're missing on revenue and they're completely missing on earnings with the exception of that Q1205 anomaly, which is something about some type of SAS revenue they were able to book there. Um, let's look at the annual, you know, financials. I always like to look at revenue, net income, IBITA, and then cash and debt. The debt is horrifying. Absolutely frightening. Okay, nearly $350 million. and the IBITA is minus700 million. So it is just cataclysmic uh set of financials on a quarterly basis. It's not much better. Again the debt nearly half a billion dollars now and again losing money hand over fist tiny revenue amounts. I mean they make a pittance of revenue and lose an absolute fortune every quarter. But you know maybe the future's bright. Let's look at some more stuff. This is uh the anomaly. I think Jeff called this out. Record Q22 revenue 122% QQ shipment orders backlog 672 million. By the way, they lose that much a year. So ignore that number. Uh 18.8 billion commercial pipeline. I don't know how much of that is smoking mirrors. Revenue 15 million. Okay. Total cash 83 million. Notice where they don't talk about all the debt. So that's, you know, it's like a marketing brochure. Um, so not dinging them, but just I'm just pointing out how I analyze the stock. Also, I calculated using our inflation dilution model, the amount of share dilution year to date, it's 19.8%. Which is kind of high. Uh, that means in the start of the year with 100 shares, now it's 120 shares. You've been diluted to the tune of 20%. Not good.

Let's look at the chart. EOS on the ATR. This would fall into the zombie category. However, the trend is up and there is a buy signal on the ATR. So, from that perspective, at $6, it's okay. But I would use the ATR and watch it very carefully. Ride it for a short-term trade and exit when it tells you to sell because this thing is really, really, really accurate. These types of assets. Now, I do believe in energy storage. I believe it's massive. Data centers are exploding. Yes, the big beautiful bill allows people to write off capital investments. I wish they had more in there around solar, but that's a personal issue. Anyway, but if you compare their data storage device to the Tesla mega pack, this is where it gets interesting. And I know about the Tesla mega packs. I had to dig in and learn about the EOS energy storage system. But can EOS compete with Tesla? The answer is no. No. No. No. However, they do have those little things like these things are not flammable, which means you put them on military bases. Perhaps that's a good edge. They have much lower energy density and potentially efficiency as well. They have incredible financial losses, incredible debt. Scares the daylights out of me. Um, and if you look at Tesla, they have proven scalability and reliability globally, very high efficiency and integration. Uh if you look at the energy capacity 500 kilwatt hours versus 3.9 megawatt hours output 120 to 125 kilwatt hours versus 1.9 megawatt hours again the the scale is very very different efficiency 70 to 80% versus 90 to 95% for me uh cycles 3,000 cycles versus Tesla 5 to10,000 and cost

Is $1,500 per kilowatt hour and Tesla is about 300 to 400 bucks. Um, I don't know how heavy these things are. They're probably small, but the Tesla ones are very heavy. 38 tons per unit in a 40ft container. They come in.

So, the question is what what happens, you know, next. I don't know. We'll see. But what really has me concerned about EOS, and I know all the government money might come and stuff and it could become like another palunteer possibly. Possibly. But boy, they're in a deep hole right now. Financials are again cataclysmic. Really scary. And the other thing about these, unless something really happens fast, they may not make it financially.

So, diluted 20% year-to- date. These are the warning signs on the financials, the nine or 10 different issues I found. Uh, new debt in the past three years. Quarter of a billion dollars, unprofitable for the last three years. Asset growth is outpacing revenue growth, always a bad sign. Um, Sloan ratio, poor earnings, terrible earnings. and the Altoman Zcore minus 12.97 means bankruptcy possible in two years or so. Uh really ugly ugly ugly set of financials. Would I touch it? No. That's why I looked at it before and didn't.

But Jeff does like it. And Jeff has a point and I'll I'll hammer his home. I said my my gut tells me Tesla is a much safer uh energy storage play. Uh, I believe I calculated years ago that it's worth a trillion dollar market cap based on future projections. But Jeff says, "Don't know over complicated. A $1.1 billion market cap company with built order capacity of 1.3 billion, run rate by next year, which could 10x uh 91% US source and growing. Does anyone think that battery storage market is shrinking?" No, there will be multiple winners. So, he's right. There will be multiple winners, but again, the financials tragic. So unless they can deletute a whole bunch more shares uh and wipe people out, I don't know. But that that the debt, the cash, the losses paint a horrible picture for me. Maybe they could become a Bitcoin treasury company as well.

Anyway, favorite part of the week, uh helping animals. Uh this week we adopted a whole bunch of these beautiful little seals. We got giant and Pasha and Sandia, Cyrus, Titanium, RS10. I love that. Annette and cats and you all know who those cool people are. So, thank you all and tomorrow is DCA with the team uh and uh make a post on that later about Patreon so you can try guide the conversation. I hope you all got smarter. Let me do some live questions right now. That was a long one. Um thank you for holding on till the end. But again, I have to stress the importance of AI and being exposed is really, really, really, really important.

Um, Takovski, thank you, buddy. And PKG man, I heard the US government might buy Micro Strategy. Any truth of this? If so, what would that mean for Micro Strategy? This is um this is what this has been going around for a long time. So imagine one of the things I I made a Patreon post about this uh when I bought Marathon when it's trading at a discount to its Bitcoin bag. I said, you know, this is ridiculous. You know, a sovereign, a government, another company that wants to build a Bitcoin bag fast at 50,000 Bitcoin, they should just buy Marathon at a discount. It's a no-brainer. That's called a sovereign put. So if the US wants to get their hands on 650,000 Bitcoin, say they should just buy Micro Strategy. That way they can control the bag without spiking the price. If you go to market and try to buy 650,000 Bitcoin right now in a short window of time, like 3 months, price could go to half a million dollars. You're better off just buying Micro Strategy. That's simply how it works. So that's been going around for a long time. A lot of people have been talking about that. I've been talking about that but more in finding ARB opportunities like Marathon trading at a discount to its bag and some of the other treasuries are doing that too. So all that is absolutely possible and I do know that Michael Sailor knows the people in the administration been there and I do know he's been smiling since November. So who knows that would be a clever move as well. And remember as well Michael Sailor has his own Bitcoin bag too. He's got like either 29 or 39,000 Bitcoin too. So anyway, shout out to Michael. Hope he's doing well. But yeah, that's the sovereign put. And uh great question by the way. PKG man, love it.

Joe Biden's daycare. When if tabby model flashes red for Bitcoin, how do you plan to hedge exit against Bitcoin if a bare market hits? NFA, yours truly, Mr. Autopan. Thank you, buddy. I will. So, as I've said before, uh compared to my other assets, I actually don't have a lot of Bitcoin and it's put away in coal storage. Thank you to the team at Fidelity. Um I I don't even want to touch it. I just going to leave it. But what I will probably do is perp it. Per short hedge is probably the most cost effective plan. I've been trying a whole bunch of different things. The put options are expensive, but I think I can perpet. And I have been testing pers on Bitcoin, too, which have been fantastic. So, yeah, that'll probably be the way that I hedge it. Um, but I'll be more concerned about my other bags like Micro Strategy and Tesla and stuff if that comes to it.

Moto 89 to the moon Tesla. Yeah, we'll see. the math works out. But uh it does require as a Paul Trading Apollo just said a lot of execution is required to pull this off. So we'll see. But if anybody can do it, we know who that is.

Doc in turn buddy. Thank you so much. To get to $100,000 a year income from STRC needs 1.1 million, but less than 250k in yield max covered call ETF. Allow for some drip to cover nav erosion. Selling covered calls is stressful for newbies like me. your NFA thoughts re yield max ETS. So, I've done the math for years and years and years and years. Uh the yield max stuff, you get unless you're in a caveat, assuming you're in a taxable account, you're going to get murdered on the returns, on the taxes, they're not tax efficient. If you're in a retirement account, it changes the calculus a bit. But I've actually looked at Misti as well for a long time. They work if you're in a flat sideways chopping market. But if you're in an exponential market where things are going up high, no, they don't work. Going down low, hammered. So they only work in a very specific call it uh collar of price action. So be very very careful. Um and regarding your STRC, again, look at your taxes because yeah, you might be getting 9%, but if you're paying 40% taxes on that, it's it's not that good. I found in life if you do have a million dollars to invest, buy something that's going to go up exponentially and then sell pieces as you need to cover your living cost. But getting things like treasury yields or misty yields or again your 9% isn't going to cut it. You can do much better by just dumping a million dollars 50/50 into like Bitcoin or Tesla, wait for three or four years and then start pulling from the bag. That's exactly the way it goes. And I've done the math backwards a thousand times for decades. So be careful. But remember, fees eat you alive. Always watch for the fees. And there's an awful lot of friction, too. I've covered it in these yield max ETFs too. They just also eat you alive as well. Be careful.

Duck intern. If Sailor is able to maintain MNAV above 2.5, how does that affect the usage of the ARB cloud? H, it doesn't. The ARPC cloud will continue to work. You just need to do the same thing. Uh, play the ARB. The ARB measures the amplification from the mean as it were. So, it'll be completely fine. And I can they get to 2.5? I don't think so. I've done some other calculations. The maximum I see the ARB or the nav premium going to is about 2.13 right now. I will share the math on that in Patreon later. I've been working on it. It's a bit clooji, but getting to 2.5 would be nuts. And I think Michael Sailor will reduce his threshold from 2.5 to ATM. Unless, of course, the only caveat to that is if they can STRC the heck out of STRC stretch and that becomes the new money market. Then they don't need to ATM anymore. They have all the fiat they want and they're just a fiat conversion machine. They take melting ice cubes and convert into hard Bitcoin. It's the infinite money glitch part 17. So, uh, great questions, Doc Intern. Really appreciate you, buddy. And thank you for your super sticker.

Rusted Woods, Anjo, Pancake, Panda, Dude Travels, French Dreamer, Dog One, AZ Roller, Signal 103, Forest, GQ Trader, Beat Corn Bull, Brayman, Swiper, No Swiping. I was the Beat Corn guy years ago. Um, and I hope I didn't miss anybody else. Uh, thank you all for coming everybody. Take care of yourselves. That was a big one. an hour long but a lot of stuff in there. And remember, just get exposure to AI. I'll repeat one more time. What we are going to see over the next 10 years is a compression of a 100 years of history into 10 years. The world is going to completely change. Be ready for it. Be exposed to it and write it. Thanks all. Have a good night.