[ad_1]
When the hype is reaching new heights, it might be a good time to reach for something with a proven track record.
As the S&P 500 (^GSPC) sets a new record and the “Magnificent Seven” trades such as Nvidia (NVDA) turn from red to white, life and business… Tony Robbins, a strategist at
“If a Ferrari was on sale for 70% off, you’d buy it. But if your favorite stock is on sale, you panic. And if it’s too expensive, you want to buy it.” Robbins told Yahoo Finance. “That’s the crazy part of being human.”
Long-term wealth is not built on a single asset class, much less a single industry. Robbins, who has met with billionaires Ray Dalio, Robert Smith, and Warren Buffett of Berkshire Hathaway (BRK-A, BRK-B), believes that diversification is the key to wealth creation. said. His latest book, The Holy Grail of Investing, delves into the power of alternative assets in a world obsessed with stocks.
“There [are] 250,000 companies valued between $100 million and $3 billion [in value] Private equity could step in,” Robbins said. [the Magnificent Seven], create your own diversification. That means 80% less risk. ”
Another of his success tips involves changing your consumer mindset to an investor mindset. Upgrading your iPhone can cost thousands of dollars, but a stockpile of Apple (AAPL) stock can help you prepare for the future.
And no matter where you sit in life, staying hungry can turn the tide of your losing streak or extend your winning streak.
“If you’re hungry, you’ll find the answer. If you’re hungry, you’ll push through,” Robbins said.
video transcript
Brian Sozzi: I’m Brian Sozzi from Yahoo Finance. Investors continue to make many mistakes when leveraging their funds. We asked life and business expert Tony Robbins how to become a better investor. How does Tony Robbins spot investment potential and avoid mistakes?
Tony Robbins: I’ve said all my life that success leaves clues. If you find the best companies in the world, know exactly what they do, and do the same, your chances of success increase 100 times. So I interviewed 50 of the greatest investors in history for “Money Master the Game” and then “Unshakeable.” And what I like about this time is that geniuses like Ray Dalio or Paul Tudor or the great Warren Buffett are trying to find alpha one way or another.
What I like about private equity today is that it used to be that you would break things up and just sell them, but now there’s too much competition for that. Today they have to create an alpha version. They buy a company, see how it grows, see how it expands, and make it work. So I’m always interviewing those people and being on the cutting edge of what’s out there. But my goal is to communicate that to the public.
Brian Sozzi: We’re talking about all the big-name investors, but let’s take Robert Smith as an example. And if you spend 10 minutes with him, you’ll see why he’s Robert Smith, and why he’s just a successful investor. But as you talk to all these people, can you name some characteristics that make them masters of the universe?
Tony Robbins: They are obsessed with adding value. They’re not just trying to find value, they’re adding value, and Robert is a perfect example. He started with nothing and built a $100 billion endowment. He is the richest African American in this country.
But he built a system. That’s the best thing most of these guys have done. He knows more about SaaS than anyone else. So if you’re going to introduce software as a service and become a company, he’s got every aspect of it, he’s got all the top minds in the field, he knows who should be the best CEO. He knows how to change the cost basis and how to create that synergy and sell to a larger company or sell to other companies. Therefore, each company usually finds a niche, has a system, and runs it like a machine. And that’s why they can continue to do this formula that most people would think impossible.
Brian Sozzi: But for people who come to you and say they want to be a successful investor, what mistakes do you think they still make?
Tony Robbins: Well, I think most people, as you and I both know, are in a position to watch the news and react accordingly. We all know what happens. Guys, if a Ferrari goes on sale at his 70% off in the market, you will buy it. But when that happens to their favorite stocks, people panic.
And if something is too expensive, they will want to buy it. It’s just the crazy part of being human. But I think what our society is missing most is teaching people to be consumers rather than owners.
The other day, I decided to teach this to young people, so I did some research. I made a little chart. Do you have an iPhone?
Brian Sozzi: I have an iPhone.
Tony Robbins: Yes, most people do that, right? I said, “How many of you have an iPhone?” Everyone raises their hands.
I said, “Well, I’ve had an iPhone since day one.” I bought a new iPhone every year. So I sat down and calculated what that amount was. I’ve spent $20,600 on his iPhone since 2007. If you had bought the stock at this point — I looked it up, you would have spent the equivalent of that cell phone every year, and the amount of stock you earned would be the stock today. Worth $206,000.
Brian Sozzi: There is currently a phenomenon known as the “Magnificent Seven” in the market. People are just buying these seven stocks of his – Microsoft, NVIDIA, you’re almost blindly naming them, Tony. What exactly is it about human psychology that makes us buy these 7 stocks over the other 493 stocks? So what is their downside risk?
Tony Robbins: Well, I think you and I both know that I’m worried about that. But they’re all betting on AI. This is probably a decent bet. NVIDIA worldwide is probably doing well. I don’t know what is the correct evaluation. I don’t try to make such decisions myself.
But when things get this concentrated, think about it. There used to be 8,000 shares. Currently, he is at 3,300 on the Nasdaq market. I think it’s 2,700, but the whole thing is 3,700. There aren’t that many stocks. However, there are 250,000 companies ranging from $100 million to $3 billion that private equity can enter.
Brian Sozzi: If you own these 7 stocks and are enjoying the profits, how can you get out of this vortex? They’re overvalued and you need to say no. I have to get out. But how do you do it psychologically?
Tony Robbins: Well, it’s different for each person…
Brian Sozzi: There’s no pressure.
Tony Robbins: Everyone is different, so I can’t say exactly what you should do. But we don’t know. I’m not one to judge them. I want to say diversity, a word we’ve all heard a million times, but for me, Ray’s version is the most exciting. I remember him telling me this. Then I was looking for where I could find these uncorrelated investments. And I would say, instead of trying to evaluate it, create your own diversification and reduce your risk by 80%. And I think that’s what you get by broadening the base of things you can invest in, rather than just being tied to stocks and bonds, public markets and S&P.
Brian Sozzi: I had access to some really famous people early on in my career, like Ray Dalio and Marc Benioff, who are well-known in the Yahoo Finance community. What was inside these people? How did they move forward? Are there any important characteristics?
Tony Robbins: Intelligence. I love scary smart people, but I know a lot of very smart people who realistically can’t get out of a paper bag. So for me, the number one common denominator is hunger, a hunger that never goes away.
Marc is still hungry and still being driven to the right. he doesn’t need that. He doesn’t need that. It doesn’t have to be that way.
But when someone is hungry to be more, doing more, giving more, sharing more doesn’t make it go away. It’s like being hungry to lose weight to go to a party, not the same as being hungry to contribute more than you ever have in your life. Because if you’re hungry, you’ll find the answer. If you’re hungry, move on.
And it’s about finding something – there are two types of motivation. There is push type motivation, self-directed motivation, and pull type motivation. Pull is 100x more valuable. You will lose momentum.
Pull, what more would you like to contribute than yourself, your family, your friends, your community, your company, your mission here? That makes a difference in the quality of people’s lives. If you can find that hunger or awaken it, it’s there and it’s my job to help people awaken it.
But most people either don’t believe or experience too many disappointments and give up. They reach a situation where they’re like, “Oh, this is all BS.” That will never work. But when you break through and chart a new path, people can accomplish amazing things, and we see it every day.
[ad_2]
Source link
