Grant Cardone Calls Himself and Buffett ‘Coward Investors’ — Here’s How You Can Apply Their Strategy
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Brash entrepreneur and investor Grant Cardone recently stunned viewers when, in a YouTube video, he made two very surprising claims: first, that billionaire investor Warren Buffett doesn’t actually buy stocks, and that Buffett is a “coward investor,” per Yahoo Finance. Shocked? Keep reading to see what Cardone meant.
Regarding his statement that “Warren Buffett does not buy stocks,” Cardone went on to clarify his meaning — that Buffett doesn’t so much invest in and buy stocks as he does take a major position in a cash-rich company.
“Every company Warren Buffett has ever invested in,” Cardone said, “from Coca-Cola to Apple Computers, he was taking a major position in a company, not in a piece of paper.”
Cardone continued, highlighting the commonalities in Buffett’s investments. “All those companies have one thing in common, what do you think it is?” Cash flow. He didn’t invest in Apple Computers until their cash flow was stable.”
Indeed, those commonalities are also what drove Cardone to call Buffett a “coward investor.” Cardone, having analyzed Buffett’s investment style, noted that the billionaire “wants to buy real companies that have real assets and the cash flow. He wants a check every month.”
Lest one thinks Cardone is criticizing that investment strategy, Cardone clarified in a later YouTube clip that he himself is a “coward investor. I don’t invest in stocks, I’ve always been a coward.”
By that, Cardone means that investors who purchase a stake in a business should do so only if that business has a steady, reliable cash flow at all times, as that allows for a reliable return without constant work on the part of the investor. “If you don’t find a way to make money while you sleep,” he asserted, “you will work until you die.”
One such way that the everyday investor can use Cardone’s investment model as a guide is to focus on business entities that place a premium on cash flow — specifically real estate. “You only buy things that produce cash flow that can’t be disrupted,” he told the Impaulsive podcast, “like the real estate I buy.” He went on to know that “the real estate I buy is indestructible” because the rents his properties produce are at minimum $1,500 monthly, and under almost no circumstances will those rents ever decrease.
Further, Cardone has suggested that fellow “coward investors” seek out high-yield savings accounts. These types of savings accounts come with much higher than average interest rates, with which your money can grow independent of being invested. It’s secure, it’s liquid and it comes with exceedingly minimal work and risk – everything a “coward investor” would want.
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