Retire On MSTY (Part One of Two)

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Not Me, But You! Podcast. Season 2 Episode #46. 

This is a case for MSTY and why I invest in it. The short answer is that it pays me a monthly dividend and the shares are inexpensive (less than $24/share in May 2025). MSTY is an ETF that is linked to the stock, MSTR. I like MSTR as a buy/hold stock for several years because I believe it will go to at least $2,000/share. Right now, it's $370/share, so it has plenty of room to run! 

It's important to know your basic investment goal. Are you investing for cash flow or for growth primarily? MSTY is NOT a growth stock. I am not looking for "share price appreciation." Instead I only care about the monthly dividend because I want cash flow. It doesn't bother me that the price/share fluctuates up/down. 

If you are already a millionaire or a multi millionaire then you may want to invest in "blue chip" stocks like Home Depot so that you PRESERVE your wealth. But for people who are NOT already wealthy, it makes sense to put some money into MSTY with you goal being to "accumulate" wealth instead of simply "preserving" wealth. 

We become wealthy by buying/holding assets (like MSTY) that pay us a yield far above the "true rate" of inflation. I recommend the book, "The Big Print" by Lawrence Lepard. He talks about how the purchasing power of fiat currency goes down as more money is printed. As an investor who is trying to become wealthy, you main goal is to outpace the true rate of inflation as you grow your pile of money. All investments involve some level of risk. Lawrence Lepard also speaks about Bitcoin and how "saving money in Bitcoin" PRESERVES your purchasing power over time. Bitcoin is A cryptocurrency but it is also UNLIKE any other cryptocurrency. There is a fixed supply of Bitcoin which makes it extremely valuable. Your purchasing power in Bitcoin actually goes UP over time as Bitcoin hits a new "all time high" price every 4 years! 

Purely by the numbers: MSTY one share costs about $22. For Home Depot (HD) one share costs about $365. Dividend yield on Home Depot is 2.54%. It pays Quarterly. Dividend yield on MSTY is 132%. It pays Monthly. Which do you feel will bring you more dividend cash flow? For me, MSTY is the obvious winner for cash flow. 

One day in the next 10 years, any Bitcoin you have accumulated, will become so valuable, that you can take a loan against a portion of your Bitcoin. Every 4 or 5 years (as Bitcoin hits a new all time high price) you can pay off your current loan and get a new 4 or 5 year loan. This is the "buy, borrow (against an asset), die" strategy. This is how wealthy people fund their lifestyle. They do NOT sell shares or coins which are the asset. Instead they take a loan AGAINST the asset. In this way wealthy people limit their tax liabilities. (They are taxed when they sell shares of the asset. Taking a loan is NOT a taxable event). 

Traditional Finance people will look at MSTY through a singular lens. And they will conclude that it's a bad investment when compared to Home Depot stock, due to "share price erosion." But IF your goal is to become wealthy and grow your pile of money, then MSTY is a TOOL you can use to help you achieve that goal. So the financial guru's are WRONG about MSTY, if your investment goal is grow your monthly cash flow. Please do your own research and make your own informed decision. Don't simply listen to "financial planners." 

I'm not a financial advisor. This podcast is for education/entertainment purposes only. You will need to do your own research and accept responsibility for the results of any money you choose to invest. I love using Schwab.com to buy/sell stocks/ETF's/closed end funds/options. Schwab has a very user friendly app/website and their customer service is excellent. I can easily get to speak to a human being whenever I have questions.