All the notes were taken directly from “Unshakeable: Your Financial Freedom Playbook by Peter Mallouk and Tony Robbins”
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Core 4 Principles
Long Term Investor without fearing bear trends.
Active Managed account overcharge for under performance
Excessive fees can eat all your profit
Find an independent advisor who will repay your trust
DON’T LOOSE; the more money you loose the harder is to get back to where you started
If you loose 50%, you need a gain of 100% to be back were you were. (100 pierdo 50, de los 50 (50% es solo 25, entonces toca invertir el 100 para recuperar))
Asset Allocation: Minimize risk
Protect the down side
ASYMMETRIC RISK REWARD:
5 to 1 Rule: 20% (80% of the time wrong and still you won’t loose) Double the money even if you are wrong 60% of the time)
Get at least 3 to 1.
Net number of what you keep
It can be up to 50% between Federal and state taxes
Selling an investment with less than a year, you will pay ordinary income tax, if not long term capital tax that can be up to 20% (Holding period)
Check: 401K or 403B (Nonprofit), Roth IRA’s, Traditional IRA, PPLI, 529 Plans for college savings
Brokers are not allowed to advise you in taxes
How tax efficient is the strategy going to be? Any thing that we can improve?
Is that Net or Gross?
- asset classes
- within asset classes: different industries
- markets countries and currencies
- across Time
BUY AND HOLD
Low Index funds:
US stocks, foreign stocks, and emerging market stocks, Real Estate Investment Trust (REIT), long term US treasuries, Treasury Inflation Protected Securities (TIPS)
Owning more than 15 assets that are uncorrelated can reduce your risk 80% and return can be 5 times better
Stocks, bonds, gold, commodities, real state etc
Last but not least, study the ICONS:
Carl Icahn (Targets underperforming companies and changes management)
Paul Tudor Jones (Bets on Macro View)
Warren Buffett (Long Term investment in public and Private companies that have competition advantage)
Ray Dalio (Awareness of ententering in an unexpected market)
J.P Morgan and Mary Callahan Erdoes
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