My First Million How To Turn $100K into $4,000,000 with Distressed Investing
653 snips
Sep 19, 2025 
In this episode, distressed-investing specialist Thomas Braziel shares his journey from growing up around bankruptcy law to making smart investments in troubled assets like FTX and Mt. Gox. He explains his strategies for buying customer claims and tackles the emotional and ethical challenges of the industry. Thomas also emphasizes that a position well bought is already half sold, offering insights on how to navigate public controversies. Plus, he suggests must-read books for aspiring investors.
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Steak And Sizzle Framework
- Distressed investing combines legal knowledge with value investing to buy stakes with asymmetric upside.
- Look for a 'steak' (margin of safety) plus 'sizzle' (optional upside) to maximize returns.
Mt. Gox Claim Windfall
- Tom bought Mt. Gox claims when Bitcoin was ~$300 by purchasing claims at about $80 per Bitcoin.
- One early investor later achieved over 40x as Bitcoin and claim dispositions appreciated over years.
Niche Players Feed The Sharks
- Small specialist players can survive by focusing on claim markets and forming symbiotic ties with big firms.
- 'Coopetition' lets niche buyers handle the grunt work while institutional firms provide capital.
