Breaking down Cody’s income streams and how they impact his portfolio
Yesterday in the chat, I was asked this detailed question and I gave these detailed answers. Our editors decided it was worthy of a full article for you guys. I agree.
Q: Cody, you have mentioned several times about cash positions and it depends on how it fits into one’s own investment portfolio. Can you share with us what your general investment portfolio looks like? Real Estate? Content generation? Stock market? Bonds? Actual Business (e.g. selling products, or providing a service)? It feels like you are building multiple streams of income…. and something worth modelling.
Cody: You asked, “Can you share with us what your general investment portfolio looks like?” Yes.
“Real Estate?” I’ve been buying land in NM and I’ve just moved into a house that I designed and built and have thus far paid for with cash out of pocket so that I don’t have a mortgage so that I don’t take on the risk of securitization/mispayment/etc that comes with a bank mortgage. I’ve done some owner-financing of the land when the terms have been attractive (some of the land I’ve bought has been at 70% off where it was listed at the top less than a handful of years ago for example). For years on my TV show and in my blogs, I told people that I thought real estate was a terrible investment. That is no longer the case. I think real estate is a great investment in many places right here. Right here, right now, I’d guess that real estate is not quite half of my portfolio, but again — my portfolio is changing every day, every month and every year, so any estimate can be misleading.
“Content generation?” I’ve been steadily growing my content generation businesses for more than 12 years now, since I first built Teleconomics.com, my first subscription-based website that many of you here still recall. I’ve grown the content generation source of income to the point where it can support me if I need it to and it continues to grow from years past, including from the time I’d been a TV anchor for 528 shows over 2.5 years at Fox Business. I am not sure I’d ever go back to managing other people’s money or doing a TV show for a living again since I love doing what I do right now. I especially enjoy what doing TradingWithCody.
“Stock market?” I have made some great money in the last few quarters in the stock market since I returned to the stock market. But I do not ever count on the market for steady gains or for income. EVER.
“Bonds?” None. I’ll probably get short Treasuries and corporate bonds and other bonds when/if the debt/bond/Treasury bubbles finally burst.
“Actual Business (e.g. selling products, or providing a service)?” The books and TradingWithCody.com and building WallStreetAllStars.com are a big part of my income and they continue to grow.
“It feels like you are building multiple streams of income.” Yes, James Altucher and I have talked to each other about this topic many times over th years and he’s inspired me many times to make sure I diversify my income streams. I think diversifying one’s income streams is MUCH MORE IMPORTANT in the long run than trying to diversify one’s assets.