What To Focus On To Make $1 Million Dollars in 90 days | Grant Cardone
Summary
TLDRIn this engaging conversation, Kevin O'Leary shares his insights on wealth creation and investment strategies. He emphasizes the importance of diversification, especially for those starting with nothing, and suggests focusing on areas of expertise. O'Leary also discusses the risks of concentrating wealth in real estate and advises on managing personal debt. He touches on the potential of cryptocurrency, his preference for stablecoins, and the value of investing in oneself. O'Leary's advice for those looking to grow wealth includes saving a percentage of income, seeking promotions, and understanding the power of passive income through real estate or other investments.
Takeaways
- đ Diversification is key in investment strategies, spreading investments across 11 sectors including real estate to minimize risk.
- đĄ Importance of paying off high-interest debts such as credit card debts before focusing on investments.
- đ For those starting late in life, consider focusing on income-generating real estate properties as a stable investment.
- đ° Personal development should be invested in, but only after paying off personal debts, with a suggested 3% of earned income allocated for this.
- đ Entrepreneurs should consider the risks and rewards of investing heavily in their own companies, especially when they are the primary source of wealth.
- đ In managing personal wealth, it's advised to not put more than 5% in any one stock and to sell down investments that exceed this threshold.
- đ€ For those with limited funds, partnering with experienced investors in real estate can be a viable strategy for passive income.
- đ Equity crowdfunding is a modern approach for startups to raise capital, especially for projects that align with the interests of like-minded investors.
- đ Cryptocurrency investments should be approached with caution, focusing on stable coins and lending out crypto for steady returns rather than speculative investments.
- đ The shift towards remote work has increased the demand for residential real estate, making it a potentially profitable area of focus for investors.
Q & A
What is Kevin O'Leary's strategy for someone starting with nothing to make a million dollars in 90 days?
-Kevin O'Leary suggests leveraging one's sales skills to find a job in sales, use the earned money to invest, and focus on diversification to protect against market volatility.
How does Kevin O'Leary's mother's portfolio theory influence his investment strategy?
-Kevin's mother's portfolio theory emphasizes diversification by not investing more than 20% in any one sector and not more than 5% in any one stock, which has influenced Kevin to maintain a diversified portfolio.
What advice does Kevin O'Leary give to someone in their 60s just starting to invest?
-Kevin advises focusing on paying off debt first, especially high-interest debts like credit card debt, and then investing in diversified funds or income-generating real estate properties.
How much of one's earned income should be invested in personal development according to Kevin O'Leary?
-Kevin suggests investing up to 3% of one's earned income in personal development, but only after paying down debt.
What is Kevin O'Leary's stance on personal debt?
-Kevin views personal debt as evil and emphasizes the importance of paying it off before focusing on investments or personal development.
How does Kevin O'Leary approach investing in real estate?
-Kevin prefers residential real estate over commercial and retail, recognizing the changing needs for residential and office spaces due to remote work trends.
What does Kevin O'Leary recommend for raising capital for a self-sustaining energy project in the R&D stage?
-Kevin recommends equity crowdfunding as a way to raise capital, as it allows like-minded individuals to invest in the project without relying on traditional venture capital.
How does Kevin O'Leary feel about investing in cryptocurrencies?
-Kevin has a cautious approach to cryptocurrencies, investing only 7% of his operating companies portfolio in crypto, mostly in stablecoins, and avoiding high-risk strategies.
What is Kevin O'Leary's perspective on investing in one's own company versus diversifying investments?
-Kevin acknowledges the potential for high rewards in going all-in on one's own company, especially for entrepreneurs, but emphasizes the importance of diversification for long-term financial stability.
What advice does Kevin O'Leary give for increasing income in one's current job?
-Kevin suggests focusing on making one's boss's job easier and more successful, as this can lead to promotions and increased income.
How does Kevin O'Leary prioritize paying off debt versus investing?
-Kevin prioritizes paying off personal debt, especially high-interest debt like credit card debt, before investing, as the cost of the debt often exceeds potential market returns.
Outlines
đ Diversification and Real Estate Investment
The paragraph discusses the importance of diversification in investment portfolios. Kevin O'Leary shares his mother's portfolio theory, emphasizing not investing more than 20% in any one sector and no more than 5% in a single stock. He mentions the addition of real estate as the 11th sector in the S&P and his personal strategy of maintaining diversification. O'Leary also addresses the challenge of managing a highly concentrated real estate portfolio and suggests focusing on paying off debt for those starting in their 60s. The conversation touches on personal development investment and the risks of concentrating wealth in real estate.
đ Entrepreneurship and Risk Management
This paragraph focuses on the balance between entrepreneurship and investment diversification. O'Leary talks about his own experience of having most of his wealth concentrated in his company and the importance of diversifying after the initial success. He discusses the risks of going all-in on one's own business, especially as one gets older and has more responsibilities. O'Leary also shares his thoughts on investing in cryptocurrencies, highlighting his preference for stable coins and a cautious approach to the volatile crypto market.
đ Strategies for Income and Wealth Growth
In this paragraph, O'Leary emphasizes the importance of saving a percentage of one's income, even when employed, and suggests saving 10% as a mantra. He provides advice on how to earn more in a job by making one's boss's job easier and securing promotions. O'Leary also addresses the question of whether to focus on paying off debt or investing first, advocating for debt reduction before investing, except when the debt is attached to real estate. He discusses his preference for residential over commercial real estate and shares his strategy for investing in real estate, including through REITs and physical buildings.
đŒ Salesmanship and Starting from Scratch
The final paragraph highlights O'Leary's belief in the power of salesmanship as a means to start from nothing and build wealth. He suggests finding a sales job to generate income and then reinvesting in opportunities. O'Leary shares his personal background and his entrepreneurial spirit, emphasizing that even with no resources, he would leverage his sales skills to get back on his feet. The conversation ends with a playful challenge between O'Leary and Grant Cardone on who could sell the most.
Mindmap
Keywords
đĄDiversification
đĄReal Estate
đĄPersonal Development
đĄDebt
đĄPassive Income
đĄEntrepreneurship
đĄCryptocurrency
đĄEquity Crowdfunding
đĄWealth Management
đĄSales
đĄInvestment
Highlights
The importance of diversification in investment, as learned from Kevin O'Leary's mother, suggesting not to put more than 20% in any one sector and 5% in any one stock.
Kevin O'Leary's personal strategy of maintaining a diversified portfolio, never having more than 5% in a single stock, and selling down to maintain this ratio, as exemplified with his Tesla stock.
The advice given to someone with 98% of their wealth in real estate, emphasizing the need to manage such a concentrated portfolio and the success in real estate that led to this situation.
Guidance for someone in their 60s just starting to invest, focusing on paying off debt first, then considering exchange-traded funds or income property in real estate.
The recommendation of investing up to 3% of earned income in personal development, with an emphasis on paying off debt before focusing on personal growth.
Kevin O'Leary's aversion to personal debt, contrasting it with his acceptance of debt on cash-flowing real estate and business assets.
The perspective on taking calculated risks in entrepreneurship, especially for those not planning to be employees but rather business owners.
The strategy of investing in stablecoins and staking crypto for a passive income, as part of a diversified crypto portfolio.
Advice on raising capital for a self-sustaining energy project in the R&D stage through equity crowdfunding, as an alternative to traditional venture capital.
A plan for growing wealth, which includes diversifying investments outside of one's own business, especially for business owners with a profitable company.
The strategy of saving 10% of one's income, regardless of employment status, as a foundation for investment and wealth growth.
The suggestion to seek a promotion by making one's boss's job easier, as a way to increase income within a current job.
The preference for investing in one's own companies rather than through an insurance company program, to avoid fees and maintain direct ownership.
The advice to focus on paying off personal debt before starting to invest, especially high-interest debt like credit card debt.
The potential of investing in real estate for passive income, with a focus on understanding the market and choosing the right type of property.
Kevin O'Leary's strategy if starting from scratch with no resources, which involves leveraging his sales skills to earn and invest money.
Transcripts
if you had 90 days
90 days to make a million dollars start
with nothing you started with nothing
and you can't use your name kevin
o'leary what would you focus on
wow well that's a tough one grant like
that's a real tough one
does it make sense to invest in a
portfolio to spread it out even if
you're not comfortable knowing the type
of investments or do you just focus on
those things you know and believe in
well here's another lesson i learned
from my mother that really worked for me
over the years she had a basic portfolio
theory of diversification she said you
know in her day there were only 10
sectors in the s p today there's 11
sectors that new one is all about you
grant it's called real estate so there's
11 sectors in the s p including reits
and real estate and so you never put
more than 20 in any one sector and you
never put more than five percent in any
one stock
that forces you to get diversified and
the market treats you better when you're
diversified because you never know
what's going to happen diversification
gives you a lot of protection in
volatile times or corrections or
whatever because you don't know what the
next hot sector is going to be but
you're diversified i'm a diversified guy
i never have more than 5 and if a stock
does become more than five percent like
my tesla stock did i simply sell it down
to five percent keeps going up yeah keep
selling it down so we're taking cash
what would you say to me if i told you
98 of my wealth was in real estate
no i get it and you're comfortable to do
that but you really really got to work
hard to manage a portfolio like that you
got to know what you're doing now maybe
you can teach people to do that but
that's a very very very complicated way
of doing it if you're if you want
diversification but if you're really
good at real estate nothing wrong and
the reason that happened you grant is
you were really successful in real
estate and it just dwarfed everything
else you know that's exactly what
happened yeah i just don't have time to
study this other stuff because i know i
know how to pick a piece that's going to
you know give me a kill you know it's
going to give me no listen i'm 30 in
real estate i'm cool with real estate i
got no problem but i like to do other
stuff as i said earlier i like a little
diversification what does the person do
what's it from deborah deborah wants to
know what does she do if she's just
starting and she's in her 60s
so if you're in your 60s you're just
starting the easiest way to do it is
first of all focus on paying off your
debt you really don't want debt i don't
including credit card debt which
sometimes you pay 17 to 21 percent on
you got to pay that down when you're in
your 60s you've got to get rid of that
so maybe you're not going out as much
maybe you're not taking that trip maybe
you're just being frugal until every
debt's paid and then you start putting
it out there into an exchange-traded
fund which is what i like
diversification or if you decide to get
into real estate you buy your first
building and you think it's got to be an
income property though it's got to be an
income property when you're a 60. got to
be an income no land no land no
speculation no no speculation you got to
know you got as i like to say
cash flow cash flow
cash cash is king or cash flow is king
which one
listen cash flow is king you must make
sure
i got to send him a t-shirt by the way
what percentage this is from manuel
rodriguez tartac
what percentage of your earned income
would you invest in personal development
you know that's a great question grant
that really is you should always be
learning you should always be doing
things
that
keep your mind stimulated and and i
don't care what age you are you're
always learning so i think i put you
know maximum
three percent
into that
like it's an expense right you're not
going to make any money on that other
than make yourself a better person but
but i always say you're not doing that
until you've paid down your debt
everything's about getting rid of the
debt get rid of the debt yeah i see i
would i would tell you like i would go
into debt for my personal development
well i can't i can't get there i hate
that i really i think debt is evil
that's what i think yeah
yeah yeah
you've been spending too much time with
dave ramsey
how much how much debt let me ask you
google uh apple's got 300 billion in
cash right now what do they got i know
you guys no but i don't listen grant let
me qualify that i don't mind debt i
don't i have debt on my on my real
estate i got i got
mortgages on my commercial real estate i
got mortgages on my cold storage
facilities i i got i get that i'm
talking about personal debt okay yeah if
i if i've got the cash flow to pay like
if i can get a you know a great three
and a half percent or three percent or
200 280 base point you know on
stabilized assets if i got if i've got a
facility this that's spinning off cash
like my cold storage units of course i
got debt on it but it can afford it
because it's got cash flow yeah yeah but
let me ask you what what's a better
investment than kevin o'leary
nothing exactly and and that that's what
i'm going to say to you what about what
about this question that's what i'm
going to say the young
the young man that asked would he borrow
money for self-development i'll be like
you're the best investment
well i see your point there but if you
don't if you're lost you don't know what
you're doing you should invest in
yourself
and find out a path i mean you
everybody the thing grant that i like
about you is you push the idea of having
a plan you got to have a plan
you may not achieve your ultimate
ultimate goal but you got to go in that
direction if you have if you're lost you
got to have a plan
you got to think about your your own
self and your family and your own nut
and how much you're spending you got to
have a plan here's a great question from
rachel black follow up to the last one
what
about going all in on your own company
rather than investing in etfs or in a
market the market wasn't giving me a
return so i went all in on my business
do you think that's the right thing for
them to do if they're
well the risk there is you're all in and
i get it if you're in your 20s i get it
i was all in in my company
100 percent but the minute i got
diversified you know the minute i sold
my first company i diversified like
crazy because you're you're betting
there's a time in life where you can
take huge risk but you know when you get
a family you got a bunch of stuff that
cost you money and you're taking care of
your kids you got to get some
diversification you got to get some
passive income i mean that whole thing
about passive income that's serious man
that is really important so your first
wealth was because of the company that
you sold right yeah yeah no i listen i
had my wedding my wedding we couldn't
even afford pizza yeah were you
diversified were you diversified when
you when you
built that company
100
no listen no i was not diversified i had
99.999 percent of my wealth in my
company so
you give the advice you give is actually
different than the success yes but i'm
telling you if you're not going to run
your own show if you're not going to be
an entrepreneur you got to be
diversified as you take money out of
what your income is if you're an
employee but if you're going to be an
entrepreneur and that's a third of the
population
that then you're riding with the herd
then you're then you're doing some stuff
where you're really really you know
taking some risk and it's often rewarded
if you want i think you said it earlier
you know you can't
no one's going to give you 5 million
bucks it ain't going to happen you got
to go get it exactly exactly so so now
i got about 500 people right now asking
about crypto because i think they think
you're the crypto king or something yeah
so what's the deal on the crypto what's
your opinion
it's complicated as hell it's volatile
as hell
i have got seven percent of my operating
companies uh portfolio in crypto now but
most of it's in stable coin
things where i can take usdc or die and
people you got to learn this krypto
stuff you know it's not that easy but i
basically stake it which means i lend it
out and i make between five and a half
and six percent so that's what i'm doing
with crypto i'm not doing the crazy
stuff i'm doing the stable coins i got
bitcoin i got ethereum it's 40 of what i
got and i got usdc and i've got a bunch
of guys on my desk that are now lending
out crypto making well i just wrote a
contract today for 90 days i got six
percent on it what is the best way to
raise capital for self-sustaining energy
project that's in the r d stage there is
a market for that now energy is
controversial because the president has
said he doesn't like what's going on
with hydrocarbons and so that's given a
whole new life to sustainable energy
wind solar other ideas
i think right now the most interesting
way for a total virtual startup is go to
equity crowdfunding that sector has
exploded in the last two years because
people that are interested in the things
you care about invest beside you and you
can re you can raise up to five million
dollars on an equity there's multiple
equity crowdfunding sites and and lots
of my companies use that to raise money
now because you tell you're telling the
story of your company and you get people
that are like-minded like you and they
become your shareholders you don't have
to go into the traditional venture
capital space anymore you can do it
online mr wonderful i'm 57 years old
downtown jerry brown okay
i'm 57 years old i have less than 10 000
in savings i own my own business it
grows this 1 million a year 35 profits
what's a good
basic plan to start growing wealth
wow
i like that story that's pretty good so
diversification you know your business
is doing well you're making money it's
profitable take some of that
and put it into something else
maybe some real estate maybe some stocks
maybe some bonds just so it's completely
different than the risk of the business
once you're profitable like that of
course you pay your debt down first and
then you get some diversification that's
a good story that's a pretty successful
person right there nick bigelow where do
we even start with no money to start
oh well look if you have a job you got
to start putting 10 aside like there's
you know
if you're employed you got to do that i
mean the whole life even if my whole
thing is even if you're
employed
you can be an investor you you the whole
thing is you got to save 10 percent of
what you're making i i've been saying
that forever
that's my mantra when you know like when
i when i sit like a yogi on the floor
with my legs crossed i say save 10
what what are some things kevin that
people can do to increase the income in
the job that they're in
get a promotion i'll tell you how you do
that you go and see your boss and say
what people should understand when
you're working with somebody all they
care about is how do you make their job
easier not your job what can you do to
make them more successful they're happy
to pay they're happy to actually get out
there
and pay you more if you're doing your
job to make their job easier always
figure out you know what you can do to
make your boss more successful and he'll
give you a piece or she'll give you a
piece of what the what the upside is
that's how it works yeah yeah that's why
i tell people quit asking for a raise
and ask for a piece
yeah exactly i got an opportunity to
invest in a big company like facebook
apple and so on through an insurance
company program do you see that as a
clever move me and i i don't have enough
information to understand what they're
saying but would you rather invest in
those companies that you own
i'd rather invest in the companies that
i own
i mean you know that's it
i don't want some insurance company in
the middle of my investing they're
probably taking a fee yeah do francisco
do i focus first on paying my debt or do
i start to invest right away
debt
unless it's attached to real estate a
hard asset if you got debt on real
estate a mortgage that's okay but if you
just have personal debt and you're
paying 17 to 21 you get rid of that
first you can't make 17 to 21 in the
market and that's what the why am i an
investor in every credit card company
because they make 17 to 21 percent of
people don't pay their their visa bill
or their mastercard bill or whatever
they got that's why i invest in those
things but you can't make that in the
market market's gonna give you seven
eight percent you got to pay your debt
down kevin do you agree that it would be
you know the easiest way to
invest in
or to earn passive income
is simply like in the real estate game
is simply to invest with somebody that's
already buying passive income
but yeah of course i mean look if you
like you specialize in in passive income
through apartments i get that and that's
that's that's a really good business if
you know what you're doing you got to
know what you're doing i mean if you're
going to get into real estate
you better understand what you're doing
because there's location location
location is very important the actual
deal itself the terms of the mortgage
all that stuff matters if you don't know
what you're doing you've got to go
through it a different way but real
estate has been a great investment for a
long time but i really like residential
now much better than commercial
well it's it's what i've done is i've
reduced my exposure to commercial real
estate and retail real estate and
increase my exposure to residential real
estate that's what i've done
and how would you do that would you
invest well i mean you can do you can do
it through reits i actually own physical
buildings so it's sort of the trend is
people you know i thought i've got
portfolio companies now 34 private
companies and we thought last year at
the end of last year that 15 of our
employees weren't going to come back
well i was wrong about that it's 55
aren't coming back into the office half
more than half are not coming back the
accounting compliance logistics people
so we need less office space and more
residential space we need we need more
residential office space where people
are building out their garage to be in
office or you know figuring out that
third bedroom into an office or the
second bedroom the world's changing
grant i don't have to tell you that
you're in the real estate game we i own
10 000 units now we have people that are
in one unit asking for the unit next
door to it to office out of
yeah i mean i think that is what's going
on in america in a really big way so
that that shows you you're better off in
the residential game than you are in the
commercial game if you had 90 days
90 days to make a million dollars
what would you focus on
start with nothing you started with
nothing and you can't use your name
kevin o'leary
you got to put a wig on and a mustache
wow
i probably would fly to singapore
and do something don't have any money
any money you can't even that's
that's a problem
but that's a tough one grant like that's
a real tough one i probably go find
oh i've always been a salesman so i
would find a job where i can sell
something
and
because i can sell and i would go do
that and i'd take that money and i'd
find an investment i could put it into
because
i was i was always top quartile in sales
i still sell i'm still a sales guy
that's what i do i like it my father was
irish he was a salesman my mother was
lebanese they're very you know
entrepreneurial i'm a sales guy so i if
i had nothing i was naked on the street
i'd wrap some cardboard around my
you-know-what and i'd go get a sales job
a little piece of cardboard
okay so that now the audience wants to
know who could sell the most
grant cardone or kevin o'leary
come on there's only one guy's going to
win that grab that's mr wonderful 100
if you like that video where did you see
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