He cash It is one of the different payment methods currently existing. Although much of society every time leaves it and focuses on digital banking, it is undoubted 60% of Spaniards have cash as the main payment method.
Now, expert explains that this type of currency It is down in recent years, that is, it is used less. In this way, it is essential to listen to economists and banking professionals, to know what is ideal, if cash, or digital banking.
Pedro Escudero’s notice about cash
Pedro Escudero He studied at the University of Louisiana thanks to a sports scholarship. However, due to an injury to the elbow he had to leave his sports career and focus on his professional future for what he studied Business Administration at Duke University And from there he started working on Wall Street for firms such as Lehman Brothers, JP Morgan, Citigroup and Deutsche Bank.
After three decades working for large financial entities, he founded his own company that already presents with an updated gross profitability of 18%. This is a fairly high figure, as increasing 1% or 2% is an accelerated yield. All its baggage and positive experiences in the sector make it the ideal person of which to drink information if in finance it refers.
Now, as for cash makes a resounding statement: “They do not keep much cash. Inflation is going to eat it, which does not stop growing“. This resounding statement although it seems surreal, has a solid base.
Instead, says Escudero, “invest in assets; first of all, at homebut not in two houses, because that will generate illiquidity. Then, invest everything in the long term. If they do not find a gesture that guarantees more than 9% annualized, Buy an ETF (Background quoted) of the S&P 500 indexthat is not very expensive and leave it there 30 years.
Escudero explains that “if you are not manager, that is the most effective way to keep your money valued. S&P 500 indices offer annualized profitability of 9 % or 10 % in periods of 8 or 9 years “.
However, your main advice is invest in the long termsince if you invest 100,000 euros at 15% for 40 years are 26 million euros. Advice that offers thinking about the family and children, since an action like these can change their lives.
Other advice by Pedro Escudero on investment
On the other hand, Escudero explains that “an investor’s great ability is to discover when something has really gone to the ground. Knowing how to wait is what really marks a great investor. Endure until the moment the opportunity appears. “
Endure and discover a company with entry barriers and economies of scale that increases profitability. In his case, it was a dialysis company: “I bought it when I opened the background. It is difficult to find patients with private insurance who need dialysis: a product that customers need and for which they will pay even if the price rises.”
He explains that “we had two years in our portfolio and did not move. Then he began to do it. Eight years later its value had tripled and made a billionaire. You have to know how to wait, and logically that your investment thesis is successful. “