Let me teach you how to invest in 2024

Summary

The speaker discusses the difference between offensive and defensive investing, emphasizing the importance of taking risks to achieve significant financial growth early on, especially with limited capital. He explains that defensive investments, like the stock market, are for wealth protection, while offense is necessary to build wealth. The speaker advocates for self-education as the best investment, arguing that developing high-value skills can yield faster, exponential returns compared to traditional investing. He encourages viewers to focus on skill stacking to accelerate income growth, highlighting the power of self-education in achieving financial freedom.

Takeaways

• 💡 Most people are not yet at a stage where multi-millionaire investing strategies apply to them.
• 🎯 Offensive investing is key when you're broke; you need to take risks and score your first six or seven figures.
• 🛡 Defensive investing is for protecting wealth once you have it, but starting with small amounts is useful to build the habit.
• 📈 If you had invested $1,000 in the S&P 500 five years ago, you'd have about $1,700 now – a good return, but not enough to create life-changing wealth.
• 🚀 Diversification and long-term investments help protect wealth, but they won’t get you rich quickly.
• 📚 Self-education is the best investment, enabling you to acquire profitable skills and rapidly increase your income.
• 💼 Learning and skill stacking (e.g., copywriting, hiring, client acquisition) can exponentially increase earnings far faster than waiting on traditional investments.
• 🏆 Compounding returns through skills allows for predictable, consistent income growth, instead of waiting years for financial investments to double.
• 🔑 Self-education is the ultimate launchpad for financial freedom, making it the most valuable asset you can invest in.
• 👊 Once you’ve built a substantial income, then you should focus on long-term, defensive investments, but never underestimate the value of investing in yourself first.

Q & A

What is the main difference between offensive and defensive investing?

Offensive investing is about taking risks and aiming for high returns to score the first financial goals, while defensive investing is about protecting wealth and ensuring it doesn't decrease once it's been accumulated.

Why does the speaker believe that investing in the bond market or money market fund is not suitable for someone with a small amount of money?

The speaker argues that such investments are not suitable for small amounts because they are practically bulletproof but only yield significant results when there's a large amount of money to begin with.

What does the speaker suggest as an alternative to traditional investing for someone starting with a small amount of money?

The speaker suggests self-education and learning profitable skills that can be sold for thousands of dollars, which can lead to a significant increase in income within a short period.

How does the speaker define 'self-education' in the context of investing?

In this context, 'self-education' refers to acquiring new skills and knowledge that can be monetized, such as learning to code, becoming a real estate agent, or mastering content creation, which can lead to a substantial increase in income.

What is the speaker's view on investing a small amount in the stock market like the S&P 500?

While the speaker acknowledges that it's a good practice to invest small amounts in the stock market to build the investing muscle, they believe it's not the best strategy for wealth creation when starting with a small amount.

Why does the speaker emphasize the importance of getting rich young?

The speaker believes that getting rich young allows for a truly memorable life and the freedom to live as one desires without having to wait until old age to achieve financial stability.

What is the concept of 'skill stacking' as mentioned by the speaker?

'Skill stacking' is the process of learning and accumulating new skills on top of existing ones to compound one's earning potential and achieve exponential growth in income without relying solely on time.

How does the speaker feel about diversification and long-term investments for someone just starting out?

The speaker thinks that diversification and long-term investments are strategies for those who already have wealth to protect and grow, not for someone who is just starting out and looking to make their first significant financial gains.

What is the speaker's advice for someone who wants to get serious about investing after building wealth?

The speaker advises that once someone has multiple six figures and nowhere to reinvest in their business, they should then consider long-term defensive investments like real estate or the stock market.

What does the speaker mean when they say 'invest in yourself'?

The speaker means that the best investment one can make is in their own education and skills, as this can lead to the highest returns and personal growth, rather than relying solely on external investments.