Step 1. Make 6-figures, aka keep $100/day of leveraged free cash flow.
Step 2. Buy stock on 50% margin at a P/LFCF multiple of 0.5x.
Step 3. $100 = $200/year without margin = $400/year with margin ~ $1/day
So, each day that I execute against this strategy I make an additional $1/day in perpetuity.
So, technically I'll work a month to live rent free forever assuming I can keep rent below $31/day or $942/month of pretax dollars.
Not a bad deal to strike, especially for someone who isn't wearing underwear.
No comments:
Post a Comment