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🐳 What an 11-figure investor is buying

🐳 What an 11-figure investor is buying

PLUS: crypto tanks on fears of FTX sales

Alex M.
September 12, 2023

GM everyone. This is 2036, the crypto newsletter that pays you.

Here’s what we’re serving up today 🍲: Ricardo Salinas is the 3rd richest man in Mexico, with a net worth of $13.8 Billion 💸 On a podcast last week, he revealed his latest portfolio update and what he’s been buying more of.

Let’s dig in.

🥔 Today’s meat and potatoes

Get smarter on crypto in 2 minutes

Yesterday, we talked about billionaire Michael Saylor. His company - Microstrategy - is one of the world’s largest owners of bitcoin (∼$4B worth).

But another billionaire is giving Michael a run for his money: Ricardo Salinas.

the “I-own-more-bitcoin-than-you” laugh

Don Ricardo is a baller. He’s the founder of Groupo Salinas, a huge conglomerate.

His Twitter bio says “you work 3 days: 1 for the government and 2 for you: chinguen a su madre!” (you can look that up), and his recommended books include:

1984
The Art of War
The Subtle Art Of Not Giving a F*ck

Seriously. You can check out his library here.

Last week, Ricardo was interviewed by the Coin Shares podcast to talk about life, wealth, and of course - what he’s putting in his portfolio.

You can watch the whole thing here. But we got your back and summarized the best parts.

In his liquid portfolio, Don Ricardo only owns:

1/ Bitcoin.

The OG crypto. Digital gold. The Swiss Bank account in the cloud. What else.

2/ Microstrategy

We talked about Microstrategy in depth yesterday. Until now, it served as a de-facto proxy to own Bitcoin in your brokerage account.

Like a bitcoin ETF before it was cool.

If you’re wondering whether Microstrategy still makes sense, we wrote a newsletter last month diving into whether the stock is still a good buy. You can read it here.

3/ Bitcoin miners

Bitcoin miners are computers that compete to solve mathematical problems. The winners get to validate transactions on the bitcoin blockchain and receive a small amount of bitcoin as a reward.

That’s how bitcoins are created.

Bitcoin miners have been on a tear this year. Some are the biggest names are up nearly +300% this year - more than 3X bitcoin’s performance.

We wrote a whole newsletter on whether bitcoin miners were still a good investment. You can read it here.

NOTE: the upcoming bitcoin halving (April ‘24) will cut the rewards miners receive in half. This has implications for the profitability of the miners. Here’s a great thread on the subject.

4/ Oil companies

Oil is the most hated commodity in the world. Yet oil companies continue to spit out dividends to their investors year after year.

Oil companies like Shell and BP are up over +150% in the last two years. And if oil prices keep rising, they could go even higher.

5/ Gold miners

I used to work at a boutique investment bank where I first heard my favorite investment framework:

“gold miners are great at taking your money and their dreams and turning it into their money and your dreams.”

Gold miners are a leveraged bet on gold - but with the added operational risk of the business itself.

Some of them - like the Franco-Nevada Corporation - can successfully compound capital over long periods of time (up +500% in the last decade).

Others - not so much.

Junior exploration companies tend to be highly illiquid and only move on news of new deposit discoveries. Careful what you buy.

Luckily, if you want to take after Don Ricardo, you don’t have to speculate on gold miners.

Over 60% of the assets in his portfolio are crypto-related - despite bitcoin being a pain in the ass to own.

But with the bitcoin spot ETF, we expect significantly more billionaires to allocate a % of their assets to bitcoin.

We’ll keep track of them and update you on any changes 👀