Tony Robbins – Money: Master the Game Step 6
Step 6 – Billionaires playbook – It’s time to meet the masters
Ray Dalio’s tips:
1 – Don’t lose – protect downside
2 – Risk a little to make a lot, look for home runs (asymmetric returns – risk/reward)
3 – Anticipate and diversify
4 – You’re never done learning, earning, growing, giving
I found this great video by Ray Dalio – How The Economic Machine Works by Ray Dalio
Tony Interviewed a bunch of billionaires to create this book. Instead of dragging it out, I just summarized some of their tips and thoughts from this chapter below.
1 – America needs to improve its management practices.
2 – Companies need to care about the rights of investors – put investors interests first.
3 – There are 3 levers we can control – asset allocation (which is #1), market timing, security selection. Have a long term buy and hold strategy.
4 – Investors as a group can’t beat the market because they are the market.
5 – Nobody knows nothin about the stock market.
6 – Corporate America will keep growing and earning and since the market is a derivative of this, it will continue to grow.
7 – Play defense – risk control is #1.
8 – Run a diversified portfolio.
9 – Never set yourself up for the knockout punch.
10 – The best time to buy is when there is blood in the streets.
11 – Put your real money in an index fund.
12 – Earn your own money, put some money aside, get an education, get a well-paying job, put money into 401K and make small sacrifices. Give up the small things to save more.
That’s it for this step. The last step is all about giving.