Tomorrow’s Fortune

Welcome to the action-packed newsletter designed to help you navigate the world of business and investing. If you missed last week’s post, check it out here. 😎 

Today’s Digest: 

• Did you know the Tax Code was designed to help business owners? Today, I’ll walk you through the art of paying yourself in a tax-efficient manner (life advice, not tax advise)

• What’s Happening in the Markets? Netflix Buys Warner Brothers, 29 Year-Old Prediction Market Billionaire, Bank of Japan’s Dec Rate Cuts and Foxconn’s AI-fueled Earnings Beat

• Deal Review We found a cash flowing Bodybuilding & Powerlifting Gym in California ($452K of Cash Flow). Click HERE for the listing (Deal Review Below)

• 🚨 Discord Access | Live Topics🚨
  Hop in the discord! We’re reviewing deals, discussing markets and sharing more smart money moves. This is where we’ll gather live topics and deals to review on stream and more!

  Join here: https://discord.gg/9jy8t8t3Js

TOP STORY

Why I’d Rather Earn $60K Than $6M…

Sounds insane, right?

Who would choose a $60K salary over $6 million in income?

Once you understand taxes, it makes perfect sense.

There are two kinds of money:

Employee money
and
Owner money

They get taxed very differently.

Here’s why I’d pick the “smaller” number every time.

W-2 Income Is Expensive Money

High salaries get crushed by:

• Federal tax

• State tax

• Payroll tax

A $6M W-2 paycheck isn’t really $6M.
In high-tax states, you can lose 50%+ of it before it ever touches your account.

You don’t control the timing.
You don’t control the structure.
You don’t control the tax bill.

You’re playing defense.

Owner Income Is Flexible Money

Owners don’t just get paid — they design how they get paid.

Instead of salary, you can use:

• Distributions

• Dividends

• Entity structuring (S-Corp / LLC / C-Corp)

That means:

• Less payroll tax

• More planning opportunities

• More control over when and how income shows up

A lean salary + smart distributions can beat a massive W-2 on an after-tax basis.

That’s the game.

The Real Strategy Most Rich People Use

Here’s the simple playbook:

• Pay yourself a small salary (to satisfy the IRS)

• Take the rest as distributions

• Use deductions inside the business

• Control timing of income

Same business.
Same cash.
Totally different results.

Number on paper ≠ money you keep.

The $60K vs $6M Truth

I’d rather have:

A small salary
Equity ownership
Business write-offs
Distribution control

…than a giant paycheck taxed to death.

Because owners play offense with taxes.
Employees play defense.

Holiday Season - Gift Your Fav Investor These 3 MUST READS… Check them out and my key takeaways in this YouTube Video!

WHAT’S HAPPENING IN THE MARKETS?

• Netflix to Acquire Warner Bros. Film Studio and HBO Max in $72B Deal

  Netflix announced a landmark $72 billion deal to acquire Warner Bros. Discovery’s film studio and HBO Max streaming business, outbidding Paramount-Skydance and Comcast. WBD will spin off its legacy TV networks (including CNN and TNT) as planned, while Netflix deepens its control over premium IP and streaming infrastructure. The deal is expected to close in 12–18 months.

  Why It Matters:
  This is a vertical power grab — Netflix is moving from distributor to studio + platform + IP owner in one stroke. Expect accelerated consolidation pressure across traditional media, rising content costs, and further compression in legacy broadcast multiples. For investors, the trade shifts toward platform-scale winners and away from sub-scale studios and linear TV-heavy assets.

• Former Ballerina Becomes Youngest Self-Made Female Billionaire Via Kalshi

  Kalshi cofounder Luana Lopes Lara, 29, became the world’s youngest self-made female billionaire after the prediction markets platform closed a $1B funding round, valuing the company at $11B. Her 12% stake is now worth roughly $1.3B.

  Why It Matters:
  Prediction markets are quietly emerging as a new asset class — blending trading, gaming, and data-driven forecasting. Venture capital is signaling strong belief that “event derivatives” could sit alongside sports betting and traditional financial instruments. For hedge funds, this hints at future retail-driven liquidity pools and potential alpha in crowd-based probability markets.

• Bank of Japan Poised for December Rate Hike

  Sources indicate the Bank of Japan is likely to raise interest rates at its December 18–19 meeting, with markets increasingly pricing the move. Bond yields have already reacted, and attention is shifting to signals about the pace of future tightening.

  Why It Matters:
  A BOJ pivot tightens global financial conditions more than most investors appreciate. Rising Japanese yields increase the risk of capital flowing back into domestic bonds, pressuring global carry trades and emerging-market liquidity. Any sustained shift in BOJ policy could become a volatility catalyst across FX, rates, and global risk assets.

• Foxconn Revenue Jumps 26% on AI Server Demand

  Foxconn reported a 26% year-over-year surge in revenue, driven largely by booming demand for AI server racks. The company, best known for assembling iPhones, is increasingly positioning itself as a critical infrastructure supplier to global data centers.

  Why It Matters:
  This is the real-world confirmation of the AI capex supercycle. While Nvidia captures headlines, Foxconn’s growth shows the second-order effects — racks, cooling, power, and physical infrastructure — are scaling just as aggressively. Investors should view AI not just as a software trade, but as a multi-year industrial buildout across hardware, manufacturing, and data-center ecosystems.

SO YOU WANT TO BUY A BUSINESS… 🏦

Deal of the Week (Pass): California Powerlifting & Bodybuilding Gym – Asking $950,000

Opportunity Overview

This Southern California–based powerlifting and bodybuilding gym markets itself as a premium, high-performance training facility with 24/7 access and a strong hardcore fitness brand. The business reports ~$720K in revenue and $452K in SDE, operating out of an 8,000 sq. ft. leased space with ~$9.5K/month rent.

On the surface, the numbers look attractive. In reality, this is a fragile, capital-intensive consumer business in one of the most competitive categories in retail services.

This is not a scalable asset. It’s a lifestyle business with structural headwinds.

Cash Flow & Valuation Reality

Reported:

• Revenue: ~$720K

• SDE: ~$452K

• EBITDA: ~$158K

At a $950K price, the true multiple is ~6× EBITDA, not the 2× implied by SDE marketing.

That’s expensive for a gym.

Why? Because:

• SDE overstates profitability by including owner-type work

• Equipment requires continual replacement

• High churn forces constant marketing spend to stand still

What We Like

• Niche positioning for serious athletes (powerlifting/bodybuilding)

• Sticky core of hardcore members

• Decent location and facility infrastructure

That’s where the positives end.

What We Don’t Like

1. Built-In Customer Churn (Structural Flaw)
Gyms have one of the highest consumer churn dynamics in business:

People quit.
Goals fade.
Motivation drops.
Life happens.

This isn’t theoretical — it’s baked into human behavior. You’re constantly refilling a leaking bucket.

2. Brutal Competitive Pressure

You’re competing with:

• $10/month big-box gyms (Planet Fitness, EOS, etc.)

• CrossFit boxes

• Boutique fitness

• Home gyms + Peloton/Mirror/AI coaching

Price compression is inevitable.

3. High CapEx Treadmill

This is an equipment-heavy business:

• Machines wear down

• Specialty equipment is expensive

• Members expect constant upgrades

You don’t just buy this gym — you inherit a perpetual reinvestment obligation.

4. Marketing-Driven Survival Model

Despite claims of “word of mouth,” growth requires:

• Paid social ads

• Influencer partnerships

• Promo offers

You’re paying just to maintain membership levels.

That’s not an asset — that’s a hamster wheel.

5. Short Track Record

Established in 2018.
That’s young.

Great gyms that survive cycles are multi-decade institutions. This one hasn’t proven durability through economic downturns.

Key Diligence Red Flags

• True churn rate by membership cohort

• CapEx required over next 3–5 years

• How much SDE depends on owner-like labor

• Marketing cost per acquired member

• Lease renegotiation risk (2026 expiration)

Bottom Line — Verdict: 🚫 Pass

This is not an investment-grade business.

It’s a capital-heavy, churn-driven, highly competitive consumer service model disguised as a “high-margin” opportunity through aggressive SDE marketing.

You’re not buying recurring cash flow.
You’re buying a treadmill.

And eventually, everyone gets tired.

Verdict: 🚫 Pass

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.