Invest Using Billionaires' Investing Secret

Many people re caught up in all kinds of complaints about their financial status while they take at least one bottle of drink or a snack daily. If they had invested that money instead of taking it to the sellers (or just stashed it away in a savings account), they would be a big step closer to financial freedom. This is not about “you not enjoying yourself”, it is about delay gratification.

"MONEY" helps those who know little about investing (or perhaps those who are afraid of the idea) recognize the importance of saving for their future. There is what I would like to tag,  “the little pleasure factor” savings, which is based off the idea of saving unnecessary expenses rather than feeding them forward. For those who are already interested in investing (or have already started), "MONEY" stresses the significance of building a diverse portfolio and avoiding brokers and services that charge particularly  high fees. No matter where you are in the saving or investing process, you can benefit from the advice am about to share.

Let me share with you the research of Anthony Robbins on the investment strategies of some billionaires like Warren Buffett, Paul Tudor Jones, Sir John Templeton, T. Boone Pickens, and others.

It may seem a little obvious, but SIMPLY TAKING ACTION is the first step in succeeding at investing. Legendary oil oracle T. Boone Pickens confesses to Robbins that “too many people say, ‘Ready? Aim! Aim! . . .’ But they never fire.” They understand the benefits of investing, but they’re too afraid to do so (and even if they come close, it’s normally a broker who makes the major decisions for them). In a way, investing genius and philanthropist Sir John Templeton can agree—but he has a little advice for those who are still on the fence. “Not only do you buy at maximum pessimism, but you want to sell at the peak of optimism,” he tells Robbins, who’s happy to interpret the advice for beginners. “When everyone else thinks the world [is] going to end, it is the right time to invest.”

There are virtually endless ways one could begin investing, however, and Robbins admits that the slew of options are more than a little intimidating. “Indexing is the way to go,” Robbins says in response to Warren Buffett’s advice.

“The goal of the nonprofessional should not be to pick winners ... but should rather be to own a cross section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.”

Rather than paying off a mutual fund manager, Robbins urges, it’s best to invest in “great American business to win over the long term.” And when you’ve finally become a player of the game, “defense [becomes] ten times more important than offense. The wealth you have can be so ephemeral; you have to be very FOCUSED ON THE DOWNSIDE AT ALL TIMES.” This is all according to Paul Tudor Jones, who’s gone 28 consecutive years without a single loss. Marc Faber seconds this claim: “The most money made is by doing nothing, sitting tight.” Though taking some sort of action is crucial to achieving long-term success, sitting tight at the right moments can help to protect what you’ve built over time.

Kyle Bass, the youngest of Robbins’s billionaire interviewees, recommends always ensuring a SAFETY NET IS THERE TO CATCH YOU IN CASE YOU FALL -- a valuable tidbit for those who are nervous about investing. “Taking a swing for the fence with no downside protection is a recipe for disaster,” he says. Robbins solidifies Bass’s expertise: “[Bass] risked only 6 cents for every dollar of upside potential. That’s how you set yourself up to win.”

Mary Callahan Erdoes, CEO of the J.P. Morgan Asset Management Division (and manager of over $2.5 trillion in assets), understands that THERE’S NO SURE-FIRE WAY to build the perfect template portfolio for everyone’s needs. To make a point, she compares her advice with her three daughters.

“I have three daughters. They’re three different ages. They have three different skill sets, and those are going to change over time, and I’m not going to know what they are. One might spend more money than another. One may want to work in an environment where they can earn a lot of money. Another may be more philanthropic in nature. One may have something that happens to her in life, a health issue. One may get married, one may not; one may have children, one may not. Every single permutation will vary over time, which is why even if I started all of them the first day they were born and set out an asset allocation, it would have to change.”

Finally, let’s look at Anthony Robbins seven-step blueprint to financial success. First, it starts with the DECISION to become an investor instead of a plain consumer, and ending with “DOING IT, ENJOYING IT, and SHARING IT” (“it” being not only your FINANCIAL ASSETS, but your PERSONAL ASSETS as well).