532: Pejman Ghadimi – A New Paradigm for Buying Nice Stuff

A few years back, I bought some very expensive sports coats. I wore them at first and enjoyed them. But over time, they kind of lost their luster.  As I have found often to be the case in my life, I don’t tend to care that much about fancy stuff—fancy jackets, fancy shoes. My true self regresses to a fairly simple jeans and flannel circa 1992 style—not expensive.  Realizing that these fancy clothes were just rotting in my closet, I recently sold them on a well-known second-hand site with only designer stuff. And I was shocked when I realized I was only getting 10 cents on the dollar for what I paid!  But then again, I guess I shouldn’t have been. Buying new fancy clothes has an extremely low likelihood of being a good investment. It reminded me of my good friend in town here who’s made millions of dollars in his life. He only buys nice stuff. But he almost never buys new things. The furniture in his house is incredible. Hundreds of thousands of dollars of mid-century modern gems. And he buys vintage cars rather than new supercars off the lot. He also has a 7-figure collection of rare watches. It's all really nice stuff.  The difference between what he is doing and what I did with those clothes is that he was investing while I was spending. While he’s bought millions of dollars of cars and watches, he’s always made money with them because he has focused on their future value.  Maybe I’m a bit dense, but I never thought about stuff this way before meeting him. And I still have to remind myself of this paradigm. It’s a different way to look at luxury and one that is certainly smarter when it comes to your pocketbook.  My guest on today’s Wealth Formula Podcast teaches people how to live this kind of lifestyle with cars and watches. I’ve interviewed him before, and I’m doing so again because so many of you have engaged in this way of buying nice stuff that I get regular requests to have him back on the show.  Transcript Disclaimer: This transcript was generated by AI and may not be 100% accurate. If you notice any errors or corrections, please email us at phil@wealthformula.com.  So it's a recipe for a very good business that allows an asset that's increasing in value, scarce in supply, and that's continuously increasing in demand because more and more people are getting richer historically, every single year for the last couple years. Welcome everybody. This is Buck Joffrey with the Wealth Formula Podcast. Coming to you from Montecito, California. Uh, before we begin, just a reminder, there's a website associated with this podcast, it's wealth formula.com. One of the things to really, um. Consider doing their, uh, as soon as possible in this fourth quarter is to join the accredited Investor club, the AKA Investor Club. You can do that@wealthfarmmail.com. Uh, there is a lot of, uh, there's a lot of things going on in there right now in terms of private deal flow, particularly focused. On tax mitigation, um, and alternatives and real estate and stuff like that. Um, so make sure you check it out, uh, especially if you're looking at, you know, potentially doing something that you invest in and saves you some tax dollars as well. Go to wealth formula.com now. Um, today we're gonna talk, uh, about a topic that I've talked about before a few years back. Lemme just give you this example. I bought some very expensive sports goats and I wore them, uh, at first I wore them a lot. But over time they kind of lost their luster. I found often to be the case in my life if I don't tend to care that much about fancy stuff, even though I kind of feel like I want to fancy jackets, fancy shoes, uh, I tend to regress to my, uh, 1992, uh, circa 1992 style, which is like, you know, jeans and maybe a flannel or t-shirt or whatever, but. Point is it's not expensive. So realizing that these fancy clothes were just rotting in my closet, I recently thought, well, gosh, maybe I could make some money off these and sell 'em. So I sold them on a well-known secondhand site with, uh, that only has designer stuff on it. And, and I ended up only getting about 10 cents on the dollar for what I paid. Now these things were in like perfect condition and all that, and that was super designer stuff, whatever. But. I was shocked, right? But maybe I shouldn't have been and probably I shouldn't have been because buying new fancy clothes has an extremely low likelihood of being a good investment. It reminded me though, of my good friend that I've talked about before here in town who's made millions of dollars in his life, right? He has a lot of money. But the thing is that, you know, throughout, uh, this journey, he's only really ever bought nice stuff. I mean, and the other thing is he almost never buys new things. So, um, for example, furniture in his house, incredible. He's a design guy. He. He's got hundreds of thousands of probably even millions of dollars worth of mid-century modern gems in his home. Um, and he buys vintage cars, uh, rather than a new supercar, supercars to, you know, get that sort of thrill of having the, the fancy cars. And, and he also has a seven figure collection of rare watches. You know, he is got a bunch of these, I didn't even know anything about these watches. Um, but he knows everything about him and. Uh, and he's got a lot of it, lot, he's got a lot of, a lot of money invested in that stuff. Uh, now what's the difference between what he's doing and what I did with those clothes? Well, he was actually investing while I was spending, you know, he's, he's bought millions of dollars of cars and watches, but he's always made money with them because he's focused on their future value as well. So anyway, maybe I'm a little bit dense, but. I never thought about stuff this way before meeting him. And uh, and I still have to remind myself of the paradigm that that sort of paradigm, uh, it's just a different way to look at luxury and one that is certainly smarter when it comes to, you know, your pocketbook. Anyway, um, that brings me to today's guest on Wealth Formula podcast and he basically teaches people how to. Live the lifestyle, you know, in particular with cars and watches. Uh, but again, do kind of what my friend's doing, which is you're not actually going to lose money on this. You're going to make money or at least break even, or whatever, and you're going to be able to have a bunch of really nice stuff. Um, I've had 'em on the show before. Um, and, uh, I've gotten requests since then to have 'em on again, uh, with people who've actually taken his program. So I think you'll find it interesting and we'll have that interview right after these messages. Wealth formula banking is an ingenious concept powered by whole life insurance, but instead of acting just as a safety net, the strategy supercharges your investments. First, you create a personal financial reservoir that grows at a compounding interest rate much higher than any bank savings account. As your money accumulates, you borrow from your own. Bank to invest in other cash flowing investments. Here's the key. Even though you've borrowed money at a simple interest rate, your insurance company keeps paying you compound interest on that money even though you've borrowed it. At result, you make money in two places at the same time. That's why your investments get supercharged. This isn't a new technique. It's a refined strategy used by some of the wealthiest families in history, and it uses century old rock solid insurance companies as its backbone. Turbocharge your investments. Visit Wealth formula banking.com. Again, that's wealth formula banking.com. Welcome back to the show everyone. Today I am joined by PJ Ghadimi. He's an entrepreneur and investor who's built a career around challenging the way we think about wealth. Really, he's a creator of what he calls the Wealth Transfer Methodology using, uh, luxury assets like exotic cars and watch watches, not just for lifestyle, but his investments. Uh, he's helped thousands of people, uh, think differently about alternative assets and, and the way. Uh, that, you know, you can potentially invest in this thing. And I was just telling, uh, PJ F line here that he is constantly being recommended by people in our audience. So wanted to get him back on the show. Pj, thanks for coming back on, man. Yeah, it's been a while. Good to, uh, be talking again. Yeah. Um, okay, well let's, let's kind of do big picture here. I mean, you talk about wealth transfer instead of wealth creation. Break that down. What does that mean? Like what's your kind of big philosophy that you're, you're after here? So, so we've been trained as human beings to think of luxuries. As depreciating liabilities. So as expenditures, right? Our whole lives we've been told you don't spend money on these things. They're useless and they're, they're, you know, they're gonna depreciate and be worth zero or they're gonna be high maintenance cost type things. And why would you do that? You could invest in real estate instead and blah, blah, blah. So, you know, there's been this culture for the last 20 years that has prevented people from basically having greater experiences. With these things like cars or, or watches or even real estate. In many cases we're told to buy what we need in, in homes, not extravagant, you know, insane homes, et cetera. But yet, you know, over the last, uh, I've been teaching this for about 20 years, but it was very in its infancy stages back then. But, you know, over the last 10 years, we've seen a significant shift in how consumers spend. What they spend on, in, in all of these industries, cars, watches, real estate have favored financially. The extravagance, you know, like the, the world's best bags, like urmas, handbags, uh, bring back 200% ROI versus coach bags bring back 10 cents on the dollar. So, so you have significantly, you,