Bill Bonner’s Nine-Word Secret to Lasting Wealth
Bill Bonner’s Nine-Word Secret to Lasting Wealth by Chris Mayer
Editor’s Note: Today, Chris Mayer, one of the best stock pickers in the game, explains why Bill’s simple wealth-building strategy works so well. And as the only analyst that Bill personally follows, Chris is certainly the person you should listen to.
“It’s really not a good idea to sell anything,” Bill said.
Bill Bonner and I were in Nicaragua for the fifth annual Bonner & Partners Family Office meeting at Rancho Santana. After the conference was over, we went to dinner “off campus” for a change of pace.
In pitch darkness, we drove on unlit dirt roads, dodging the occasional cow. We came upon a little town where some kind of festival was going on, and we had to nose the truck past a parting sea of people.
Then we made a wrong turn and had to double back… and nose the truck past the crowd again… but we eventually found our spot. It looked like a shack with some tables and chairs and lights haphazardly set out near the beach.
“Dos personas para la cena,” Bill said to a bearded and tattooed fellow behind the counter.
“What?” came his response.
“Uh, two for dinner,” I said.
“Oh, that we can do for sure.” It was a friendly, laid-back sort of place, run by expats and busy with surfers, backpackers, and other people drifting through. English was what people spoke.
Never Sell Anything
Anyway, Bill and I settled in at a table by the water and ordered up a couple of Toñas, the Nicaraguan beer of choice.
We talked about a lot of different things – wealth, money, building businesses, real estate…
Bill mentioned how it’s not a good idea to sell anything. Well, not anything. He was talking about good assets. I agreed. There are taxes when you sell. And fees. And then you have to decide what to do with the money, which you may very well lose in the next investment.
Good assets tend to hold their value and even grow more valuable over time. It’s a lesson I learned all over again when I researched my book 100 Baggers: Stocks That Return 100-to-1 and How to Find Them. (In fact, it’s No. 10 on my list of essential principles: “You Should Be a Reluctant Seller.”)
One great example of a good asset to hold is Monster Beverage, the famous maker of energy drinks and other beverages.