Third Transformation for Economy since 18th Century Creating Opportunities to Build Almost Instant Dynasty Wealth
December 14, 2023
Michael Markowski
My career in the financial markets began with Merrill Lynch in 1977. Throughout my 47 years I have been a student of the market. My quest or thirst has been to research the extreme events that I have witnessed. Enron’s sudden bankruptcy in December 2001 changed my life. The post-mortem that I conducted on Enron’s Financial Statements resulted in my becoming a visionary analyst. My research methodology is exclusive to researching the past to predict the future. The methodology enabled the biggest ever discovery in 2014 which provides opportunities for my followers to create generational wealth relatively quickly. The video below explains the discovery and the metamorphosis for the evolution of my career and research methodology.
Enron
- Reported record EPS for its three quarters which preceded the bankruptcy filing.
- 27 Wall Street buy and no sell recommendations for its shares.
- Named “America’s Most Innovative Company” by Fortune Magazine for six consecutive years (1996-2001)
- Share price traded near all-time high in June 2001
My research of Enron’s Financial Statements enabled the identification of the flawed metric which could have been utilized to predict the horrific collapse. An algorithm was then developed to identify the next Enron.
Please note. The Enron algo has a media verifiable track record for predicting share price collapses and bankruptcies for more than a dozen seemingly healthy and highly recommended blue chips. The collapses included Lehman, Bear Stearns, Merrill Lynch, Morgan Stanley and Goldman Sachs, which I had predicted in a September 2007 Equities Magazine article. Enron & Lehman had the same cause of death!
After the 7% decline for the S&P 500 in the first seven days of February 2016, which was caused by the Bank of Japan instituting a negative interest rate policy, similar empirical research of all prior market crashes was conducted. The result was the development of an algorithm that predicted the crashes and corrections in the table below. A second algorithm which was developed from additional research in early 2020 predicted the timeline, precise percentage decline and bottom for the 2020 Covid crash:
Research of the companies in the table below resulted in my most important and valuable discovery ever. A transformation of world economy to digital from industrial has been underway and is creating opportunities to build dynasty and generational wealth almost instantly. Value of $25,000 seed round investments ranged from $40 million to $500 million by 2017. The year 2017 is included as a track record benchmark to emphasize that the timetables for creating almost instant wealth ranged from five to nine years. The table below depicts the valuations @ 12/31/2017 and 12/31/2023.
The table below depicts the transformations for the economy throughout the history of the world. The transformation periods provided opportunities for visionaries to build dynasty and generational wealth.
The digital transformation has and is resulting in Dynasty Wealth being built much faster than the prior agricultural and industrial transformation periods. It’s because digital apps, which are accessible to six billion individuals via a smart phone, can be utilized to disrupt brick and mortar companies and industries. A great example is AirBnb. The chart below depicts that AirBnb has a much higher gross margin than Marriott.
A digital competitor has much lower capital expenditures than a brick and mortar. For 2022, Airbnb had $25 million of capital expenditures compared to Marriott’s $332 million.
The table below depicts that Airbnb’s capital expenditures as a percentage of revenue continued to decline as its revenue scaled. Lower ongoing capital expenditures after initial capital is expended to develop the digital model. For example, Airbnb has never owned a bed and thus will never have to replace a bed. From 2019 to 2022, Airbnb’s capital expenditures metric steadily declined and by 88%. Marriott’s metric for 2022 was more than five times higher than the Airbnb metric.
Due to my discovery of the ongoing industrial to digital economy transformation Dynasty Wealth was founded. Its mission is to identify and to assist digital and other startups that have the potential to increase by 100 times in value and to be valued for $1 billion within seven to 10 years and eventually to a valuation of $10 billion. “Digital disruptor companies have the potential to get $10 billion valuations quickly” video is highly recommended.
Finally and most importantly, it was discovered that Airbnb and UBER both utilized a perpetual financing strategy (video below). The strategy enabled each to grow at a triple digit pace from inception and until they launched their IPOs. A view of the video “AirBnb’s Perpetual Financing Strategy Forever Changed the World” below is highly recommended. It explains the perpetual financing strategy.
There are additional perpetual financing videos available. They cover why the strategy is highly disruptive to the VC industry and also EmotionTrac, the first startup indentified by Dynasty Wealth. to have utilized the strategy for all of its funding rounds. EmotionTrac has the potential to reach a valuation of $1 billion and to become recognized as a unicorn in 2025.
Dynasty Wealth presently has four digital companies including EmotionTrac in its stable. The four have similar traits as Airbnb, UBER, Snapchat and WhatsApp when they were in their early stages. As of April 30, 2024, the valuations for each of the four, which are producing revenue and growing, was less than $43 million. Each have the potential to be valued for:
— $10 billion to $100 billion by 2030
— $1 billion by 2025
By 2025, $10,000 invested in each of the four could potentially reach $250,000.
Attending my weekly “Markowski on the Market” ZOOM sessions, which are held every Saturday morning at 11:00AM Eastern, is highly recommended. The slide show sessions cover the findings from my ongoing research of the U.S. and global stock markets and economy. The sessions also cover the digital and other private companies in Dynasty Wealth’s stable which have minimum 100 times upside potential within seven to 10 years. Also, covered are the public companies listed on Dynasty Wealth’s SaveChangeWorld.com which have 10 times upside within three to five years. Click here to reserve your seat at the weekly ZOOM sessions which are FREE .
Dynasty Wealth LLC receives cash, shares and options to purchase shares for providing consulting services to EmotionTrac. For terms and conditions see Financial Relations Agreement.