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risked only 3 cents for the opportunity to make $1—more
5:1 investment—where
Jones is willing to risk $1 million when his research shows he’s likely to make $5 million. Of course, he could be wrong. But if he uses the same 5:1 formula on his next investment, and he’s successful, he will have made $5 million, minus the first investment loss of $1 million, for a net investment gain of $4 million. Using this formula of constantly investing where he has the opportunity for asymmetric rewards for the risk he’s taking, Paul could be wrong four out of five times and break even. If he loses $1 million four times in a row trying to make $5 million, he’ll have lost a total of $4
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if real estate’s mantra is “Location! Location! Location!”
the mantra for getting better returns while reducing risk is “Diversification! Diversification! Diversification!”
My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time. —STEVE JOBS
Life is like a bicycle. To keep your balance, you must keep moving. —ALBERT EINSTEIN
ASSET ALLOCATION
In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. —THEODORE ROOSEVELT
• Save more and invest the difference. • Earn more and invest the difference. • Reduce fees and taxes and invest the difference. • Get better returns. • Change your lifestyle.
“What don’t I know?”
Ray then revealed the most simple and important distinction of all. There are only four things that move the price of assets: 1. inflation, 2. deflation, 3. rising economic growth, and 4. declining economic growth.
complexity is the enemy of execution.
The most important thing for me is that defense is ten times more important than offense . . .
math doesn’t lie,
defense is ten times more important than offense.
playing defense is key,
200-day moving average
Five to one means I’m risking one dollar to make five.
You don’t take no for an answer, do you?
making tough decisions and honesty—those two values have really shaped you. I
In your life, the important thing is not to lose money.
The point of living is to believe the best is yet to come.
Whatever the mind of man can conceive and believe, it can achieve.
Those who have a “why” to live, can bear with almost any “how.” —VICTOR FRANKL
Man is only great when he acts from passion. —BENJAMIN DISRAELI
Remember, knowledge is not power—action is! Execution trumps knowledge every day of the week!
Happiness is not something ready-made. It comes from your own actions. —DALAI LAMA XIV
“They all want to be happy.” “That’s the essence of everything,” His Holiness said. “If what we do creates more unhappiness, then we’ve truly failed.” But what is it that creates happiness? I’ve always taught that success without fulfillment is the ultimate failure.
It simply requires training yourself to, every day, be grateful, forgiving, and compassionate.
Give freely, openly, easily, and enjoyably. Give even when you think you have nothing to give, and you’ll discover there is an ocean of abundance inside of you and around you. Life is always happening for you, not to you. Appreciate that gift, and you are wealthy, now and forever.
repetition is the mother of skill. Action is where all your power is found.
Remember that knowledge is not power, execution is.
