15 Assets That Are Cheap This Year (Underpriced Assets)

Key Concepts

• Currency Arbitrage: Leveraging the strength of the US dollar to purchase undervalued assets in international markets.
• Adaptive Reuse: Repurposing existing commercial real estate (e.g., office buildings) for new functions like life sciences or residential housing.
• REITs (Real Estate Investment Trusts): Companies that own, operate, or finance income-generating real estate, required by law to distribute 90% of taxable income as dividends.
• Peptides: Biological molecules (e.g., GLP-1 agonists, GHK-CU) gaining traction for weight loss, cellular regeneration, and cognitive repair.
• Nearshoring: The practice of transferring business operations to a nearby country, currently driving economic growth in Mexico.
• Asymmetric Bet: An investment with limited downside risk but significant potential for high returns.

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1. Small Business Acquisitions (The #1 Asset)

The most significant opportunity lies in the "Silver Tsunami"—the 12 million baby boomer-owned businesses in the US. Approximately 600,000 of these will transition in the next five years, often without succession plans.

• Strategy: Acquire businesses at 2–4x annual cash flow.
• Focus Areas: "Boring" but essential services like HVAC, plumbing, pest control, and garage door repair.
• Case Study: Tommy Melo’s A1 Garage Door Service scaled to $1.7 billion in valuation by professionalizing a fragmented industry.

2. Real Estate and Infrastructure

• Office Space: Despite high vacancy rates (with some markets 50% below peak), supply is at a 30-year low. The play involves buying at a discount and repurposing for high-demand sectors like AI or life sciences.
• Farmland: Institutional investors (Bill Gates, TIAA, the Mormon Church) are accumulating farmland as a "forever asset." It serves as collateral and a hedge against inflation, with potential for solar or manufacturing deployment.
• International Property: Markets in cities like Porto, Malaga, and Chiang Mai offer superior quality of life at 30–50% below 2019 US price levels, with rental yields of 6–8%.

3. Commodities and Energy

• Copper: Demand is structurally outpacing supply due to EVs, data centers, and grid upgrades.
• Uranium: Essential for the energy-intensive AI revolution. Major tech firms (Microsoft, Amazon, Google) are investing in nuclear power, keeping the long-term demand for uranium high.
• Energy Companies: Despite the "clean energy" narrative, fossil fuel giants like Exxon Mobil and Chevron remain highly profitable, paying massive dividends while trading at low price-to-earnings (P/E) ratios.

4. Financial Markets and Equities

• REITs: Often overlooked, these provide exposure to non-traditional real estate like data centers, casinos, and cell towers. They offer 4–7% dividend yields.
• Healthcare Stocks: Following recent volatility (e.g., United Health, Pfizer), the sector is trading at attractive forward P/E ratios (e.g., Pfizer at 8x earnings).
• Cybersecurity: The "AI will replace human security" narrative is dismissed as a misconception. The rise of AI-driven threats (e.g., the "Mythos" exploit) necessitates increased spending on cybersecurity infrastructure.
• International Stocks: Markets in Europe and Japan are currently outperforming the US, trading at lower multiples (e.g., $15 vs. $23 for similar investments) and offering better historical returns.

5. Emerging Technologies and Assets

• Bitcoin: Viewed as an asymmetric bet for the next decade. The current market cycle suggests a mid-cycle correction, with smart money accumulating as coins move off exchanges.
• Peptides: Beyond weight loss (Ozempic/Wegovy), the next wave of peptides (e.g., Retatrutide, GHK-CU) targets metabolic resets and tissue repair, creating a massive growth market for biotech firms like Eli Lilly.

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Methodology for Distressed Assets

The video emphasizes a specific framework for acquiring assets from "distressed sellers" (divorce, probate, bankruptcy):

1. Identify: Look for sellers prioritizing speed over maximum price.
2. Execute: Provide proof of funds and commit to a rapid closing timeline (e.g., 14 days).
3. Approach: Use a combination of speed, cash, and empathy to secure favorable terms.

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Synthesis and Conclusion

The overarching theme is that while the public is distracted by AI hype and high-profile tech stocks, "smart money" is quietly accumulating undervalued, cash-flowing assets. The market is currently in a "loud" phase, but wealth is built during the "quiet" years by focusing on essential industries—energy, food, infrastructure, and small business operations. Investors are encouraged to look beyond the US-centric tech narrative and consider international diversification and the structural necessity of physical commodities and services.

Notable Quote: "Wealth tends to get built in the quiet years, not the loud ones. Right now is loud. Right now is when the quiet things are cheap."