Today’s lesson:
Step One: Patiently wait for the emergence of a global or regional financial or economic crisis. These crises occur on a recurring basis.
Step Two: During the crisis, use news and other resources to observe how the situation unfolds. When prices of quality assets drop sharply, deploy various loans and leverage tools to purchase these undervalued core assets. At the same time, anticipate that central banks and governments will likely respond with interest rate cuts and large-scale monetary easing.
Step Three: Once monetary easing takes effect, the economy gradually climbs out of recession and enters a period of expansion. At this point, sell the quality assets you acquired earlier at the now-higher prices. Use the proceeds to repay some or all of your debt, and retain a portion of the profits along with select quality assets.
After that, return to your work and your life — and wait for the next crisis.
Step Four: Repeat the above three steps N times, while steadily building up capital during ordinary times. This is the most viable path for an ordinary person to accumulate wealth in the tens of millions.
That said, this process takes considerable time — and it demands both sharp judgment and disciplined execution.