How to Steal from Donald Trump
While his net worth is a hotly debated topic in conversations the world over, one thing is for sure– Donald Trump knows how to get what he wants. Over the years Trump has managed to pull himself out of several bankruptcies and bad investments to become a multimillionaire and presidential contender. This is not your usual rags to riches story, but rather a tale of perseverance, confidence, and well, pigheadedness. Trump blindly believes in himself and is the definition of someone who brushes off the haters. In fact, the more hate Trump creates, the hotter he gets, the more airtime he gets, and the more fans he gets.
Trump’s history of bold decisions, and calculated moves, starts years ago, but for our purposes we’re going to focus on the investments he made in 2011 when the markets were plummeting. Trump claims to never have been into stocks prior to that moment but used the weak market as his entry into it. He bought big name stocks (Bank of America, Facebook, Apple, Boeing, Coca-Cola, and Best Buy to name a few) at low prices. According to Forbes, by January 31, 2014, he had sold all of his stocks for a gain of $27 million. A 40% return on his original investment.
Trump thrives in times of chaos and by feeding off of weak moments. He seized stock when it was plummeting, confident the market would return, and seizes on every weak moment of his opponents in the presidential campaign. He is ruthless in his endeavors, going after exactly what he wants, and most of the time, he gets exactly what he was looking for. Politics aside, Trump’s unorthodox success is something any trader can use when building their own portfolios. Here we’ll take a look at four tactics that The Donald once used to invest and now uses to propel his presidential campaign. This is how you steal from Donald Trump, successfully.
He Befriends Chaos
Donald Trump is not afraid to run headfirst into chaos. In fact, he makes chaos his partner and uses it to his advantage. Not only did he use the weak market of 2011 to make his first important stock investments– a time when many were afraid to do so– but he also used contracts in his Trump Hotel deals to make money even when the businesses themselves were failing. Let it be said that this is not a lesson in ethics or best business practices but a look at how Trump made himself a success. He saw an opportunity to make money whether his hotels did well or failed.
As Fortune writes, his “special arrangements with his casino company displayed his trademark creativity,” in that the deals both required he receive a bonus payout regardless of the success of the casino bearing his name, and that the mini-bars carry Trump brand water. His stockholders did not fare well when it came to the casinos. In 13 years the casinos lost 1.1 billion dollars and declared bankruptcy twice. In comparison, Trump made $82 million dollars. By spinning each deal to his favor, and touting his success as a reason to invest in his casinos, Trump made a ton of cash without having to bail out any of his floundering partners.
In the same vein, Trump uses the chaos of the news cycle to strike at his opponents. He seizes their soundbites and quotes, often taken out of context, and spins them to his advantage. Trump not only knows how to play with chaos but how to create his own. He uses what many call schoolyard bullying to make examples of the other candidates and points to not only flaws in their positions but flaws in physical appearance and intelligence.
When trading, do not be afraid of chaos. Chaos usually means that there is money to be made. Continue to make smart and reasonable choices, but do not shy away from the crazy or the difficult–look for opportunities in what most others consider too messy.
He Protects Himself
By investing in 2011, Trump made a seemingly dangerous play, but if we take a close look at his investments, they were relatively low-risk. This does not seem characteristic of the loud and aggressive man we all see on television. His former portfolio, full of domestic large caps, tells a different a story. It’s the story of a much more risk-averse man who though he is interested in striking while the iron is hot, wants to make sure he has a net there to catch him should he fall. He spread out his investments putting only $1 or $2 million into many different pots.
He similarly speaks about his campaign in the same way. He is loud, aggressive, often rude and crude and loves to talk about himself, but when it comes to his policies and policy change, he changes his rhetoric ever so slightly. He speaks for others. Rarely, will he say “I believe”. Instead he’ll say, “America is”, “America believes”, “People want”, “Americans know”, and so forth. He says risky things. Many times what he says is offensive or crosses a line, but he structures his speeches and words so that it appears he is simply reiterating what the American people already told him. He is saying, “I know what you say,” not “This is what I say.”
For all of his chaos he causes and loves, Trump does not put himself in front of the crosshairs. He protects himself and only looks out for his own interests. He plays the game selfishly. Think about his Trump Casino investments– he didn’t mind his name (and brand) being sullied with bankruptcy as long as at the end of the day he, the REAL Trump, was making a lot of money. Make sure when you are trading that you are always keeping your best interests at heart and creating safety nets for yourself. It pays to be risky, it pays to enter chaos, but not if you are not looking out for yourself.
He is Confident and Consistent
Trump never apologizes. What you see is what you get and he stands by what he says. He rarely issues statements retracting what he has said. In fact, he usually blames everyone else. He spins the moment so it appears that we simply did not understand him. He tells us that it’s not that he actually said anything offensive, we just don’t understand. He likes to challenge others and does so confidently.
He acted similarly with his investments. He started his very first portfolio in 2011 and then sat on his original investments not changing anything around for years. His patience and tenacity with those stocks paid off big time. The same holds true with his presidential campaign– never admitting to doing wrong but also creating a consistent platform that voters can immediately recognize. Consistency guarantees that voters will always know which side of an issue he’ll fall on before he even speaks. That certainty is appealing to many Americans.
While changing things up and trying out new strategies for your trading, remember to remain consistent and work within your sweet spot. Only take big risks when you truly believe in them, do not take risks just for the sake of being daring or unique. Trump is loud and brash but very calculating. He always works where he is great. He doesn’t attempt to be several different things. If you are confident in your choices as a trader and consistently make those choices, you will have very little to lose.
He Keeps it Simple
Trump is often accused of inflating his worth and over exaggerating facts. This is true, but he is also just a man of simple words, simple numbers, and keeping what he says very general. Trump’s investments back in 2011 were kept rather quiet, until they were sold and announced to the public in 2014. He also keeps the public guessing on just how much he is worth. He doesn’t want anyone to know exactly where he sits– he wants that information kept safe. He has always known the power of simplicity. Simple investments, simple words, he downplays it all.
In his campaign speeches, Trump is known for “dumbing” it all down. He uses short phrases, small and easily recognizable words, and talks like your next door neighbor. He avoids the use figures and numbers at all costs. Remember how he neglected to mention how much his Mexico/US border wall would cost? By keeping it simple, he keeps his platform easily recognizable and easy to follow. In many ways, simple is better.
When working on your portfolio, remember that you don’t need to make it harder on yourself. Use simple methods, use what you know, don’t confuse yourself, and keep your methods CLOSE. Don’t trade your secrets.
Steal from Trump
Stealing from Trump can seem a little scary– he’s a controversial political figure with as many haters as he has fans– but you can’t argue with his successes both politically and financially. The 4 Trump pillars we went over– Befriend Chaos, Protect Yourself, Be Confident and Consistent, Keep It Simple– are important parts of trading that will benefit you, no matter your feelings about The Donald.