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Two Profitable Paths

Unfortunately, Cardone doesn’t believe that the majority of businesses have these desirable traits.

“Most businesses are s— businesses because they don't scale, they don't cash flow. They're just hard businesses. They don't have any profit. There's 32 million small businesses in America,” he said.

Despite this harsh critique, Cardone acknowledges the potential in two sectors.

“Real estate is a great business,” he said.

Real estate can present a lucrative opportunity for generating consistent income streams through rental earnings.

And these days, you don’t necessarily need to be a landlord to collect rental income. You can buy shares of publicly-traded real estate investment trusts (REITs). Or, you can explore crowdfunding platforms that allow you to own a percentage of physical real estate — from rental properties to commercial buildings and even plots of land.

Additionally, Cardone pointed to the banking sector as a lucrative field, stating, “A bank is a good business — if you can be the bank. Go in for that one.”

Although banking and moneylending are challenging businesses for individuals to start, the stock market offers a viable pathway to participation through bank stocks. And being a bank can indeed be “a good business.” JPMorgan, for instance, recently reported nearly $50 billion in profits for 2023.

Read more: Thanks to Jeff Bezos, you can now cash in on prime real estate — without the headache of being a landlord. Here's how

American entrepreneurship

Cardone’s message arrives at a particularly relevant time, as the landscape for entrepreneurship in the U.S. is witnessing significant growth.

The Census Bureau's data reveals a notable trend: at the onset of the COVID-19 pandemic, there was an initial decline in new business applications in March and April of 2020. However, this downturn was quickly followed by a dramatic increase, with applications soaring to an all-time high in July 2020. Despite some fluctuations in the ensuing months, the number of applications consistently remained at historically high levels.

In particular, there were 457,316 new business applications submitted in December 2023. To put that in perspective, the highest the series had seen before the pandemic was 314,337 applications in December 2019.

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About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.