I recently read that Warren Buffet's key to success is, basically, that he will only buy something if he can get it for a fair or a bargain price. It's a simple rule, but he accredits his massive wealth to this very basic rule!
I want you to look at this business in the same way. Really take the time to analyze, what it costs to get into this business, and what the cost is to get started.
You tell ME if this sounds like a good deal (or if you would be able to get into ANY other business, in this way):
You can buy into this business for literally 0.01 percent of what it costs to start an average franchise. Not 1 percent. Not 0.1 percent. But 0.01 percent.
And there is no ceiling on what you can make!
The commission from ONE SALE can earn you 10x your what you pay for the first month to get started in the business. And there are many people who've made 10x more than that in their first month.
What do you think Warren Buffet would say about this business, when the cost of a machine has dropped over 98 percent (from it's original price), and the company will never sell it cheaper than it is now? (The price hasn't changed since they started selling them over 10 years ago). And there is no other product in this category (medical grade water with antioxidants that can last for 2 days).
Coming from a real estate investing background, in my opinion the water machine and the whole business model was a STEAL.
In my opinion, HEALTH EQUITY is the best kind of investment you can make, because there are few things more expensive than medical bills.
When we bought this machine, we were looking at the machine and business model through the eyes of investors. Investors don't just look at where they are now. They look at where they're going to be 5, 10, 20 years from now. What are the odds, that in 15 to 30 years, our bodies are going to be a lot more worn down, than they are now? You can't always predict the weather, stocks, sports, or the real estate market (whether you will be in an up cycle or down cycle). But one thing you can be 100 percent sure of, is the fact that the human body AGES, and we're all getting older, and there is no way to prevent this from happening. Our bodies are all wearing down, constantly, and every year we are more and more susceptible to oxidative damage. 20 years from now, your body will be 20 years older. This is something you can predict with 100% certainty.
And water is something we all need. Every one of us. Our bodies are over 80 percent water, and we become more and more dehydrated, and more and more susceptible to oxidative damage, as we get older.
I hope you can see why, in my opinion... this business is a NO BRAINER!
The original Warren Buffet article can be found HERE, and it is also pasted below.
The Price You Pay – Warren Buffett’s Biggest Secret
Warren Buffett is by far the world's most successful investor. From 1964-2012, Buffett's Berkshire Hathaway rose in value by 586,817%. By contract, the S&P 500 was up just 7,433% during the same period.
How did he do it? What did he do that was so different from what everyone else does?
What Warren Buffett did was simple. It's too simple, in fact. That's why most people overlook it. It's why most people don't make a fortune in stocks. It's what you need to know if you're going to be successful in the stock market.
The one thing Warren Buffett does is that he controls the one and only thing any investor has control of in any investment transaction: the price he pays.
Buffett looks at a company, decides what its stock is worth, and refuses to pay more than a fair price. That's how he makes all his investments. When he bought 3 million shares of media moguls Capital Cities in the mid-1980s, he did a few calculations and told them he'd pay exactly $172.50 per share. The deal was done.
He bought over $1 billion in Coca-Cola shares because they were trading for less than $11, which he considered a bargain.
Even today, as Buffett told his shareholders at an annual meeting, "We have no master plan... we don't sit around and talk about the future of industries. We have no reports or staff. We just review what comes in and look for companies with a durable competitive advantage at an attractive price."
Buffett is as clear in writing as he is in person: "The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price."
Did you catch that?
If imitating the investment results of the greatest investor in history is what you want to do, you don't even need to pay a bargain price. A fair price will get you there. You don't need to buy an endless string of bargains to get rich. That's very different than the way most people invest. They buy stocks without knowing what the business they're investing in is really worth.
They don't know what price they should pay, so they lose. They look at price charts and try to predict the stock's price one year away, or one month, or one week... sometimes even one hour! It's totally unnecessary... sitting there watching prices go up and down every day.
Buffett says he wouldn't care if the stock market closed for 10 years. He doesn't watch the market's up and down movements from day to day. And he never loses sleep as an investor. As long as he's paid a fair or bargain price, and as long as the business he's invested in hasn't changed significantly, there's no need to worry about the future.
Not only is this the most profitable path investors can take... but paying the right price is the one thing you can do as an investor that will give you unshakeable peace of mind.