If you want to build tour wealth, you need to take profits. The hard part to figure, is just that…where do I take profits?
Unless you take profits, you ain’t gonna get rich.
So, since we hope that our speculative plays turn into long-term investments, and most of them will return multiples on the original amount invested, we should at the very least take the original amount invested off the table to free it up for future opportunities.
Here’s a simple formula for doing that. We call it the ROI Calculator, pronounced like the name Roy. Anyways, here’s the calculation for taking getting your original investment out and creating a free ride going forward.
So, the take-away is that I will often mention this calculation using short hand and say something like, “Let’s take a Free Ride with Roy.“
