What To Focus On To Make $1 Million Dollars in 90 days | Grant Cardone

Summary

In 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

• 🌟 Diversification is key in investment strategies, spreading investments across 11 sectors including real estate to minimize risk.
• 💡 Importance of paying off high-interest debts such as credit card debts before focusing on investments.
• 🏠 For those starting late in life, consider focusing on income-generating real estate properties as a stable investment.
• 💰 Personal development should be invested in, but only after paying off personal debts, with a suggested 3% of earned income allocated for this.
• 📈 Entrepreneurs should consider the risks and rewards of investing heavily in their own companies, especially when they are the primary source of wealth.
• 🔄 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.
• 🤝 For those with limited funds, partnering with experienced investors in real estate can be a viable strategy for passive income.
• 🚀 Equity crowdfunding is a modern approach for startups to raise capital, especially for projects that align with the interests of like-minded investors.
• 📊 Cryptocurrency investments should be approached with caution, focusing on stable coins and lending out crypto for steady returns rather than speculative investments.
• 📈 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

00:00

🌟 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.

05:02

🚀 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.

10:03

📈 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.

15:04

💼 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.

Keywords

💡Diversification

Diversification is an investment strategy that involves spreading investments across various assets, sectors, or categories to minimize risk. In the context of the video, it is suggested as a way to protect one's wealth, especially during volatile market times. Kevin O'Leary's mother's advice was to never put more than 20% in any one sector and never more than 5% in any one stock, which reflects the principle of diversification.

💡Real Estate

Real estate refers to properties consisting of land and any buildings or fixtures attached to them. In the video, it is highlighted as a significant sector for investment, with Kevin O'Leary mentioning that it has been a successful area for him, although he also emphasizes the importance of diversification even within this sector. Real estate is presented as a potential investment option, especially for those who are focused and knowledgeable about this area.

💡Personal Development

Personal development refers to the process of improving one's skills, abilities, and understanding to reach one's full potential. In the video, it is suggested that individuals should invest a portion of their income into personal development to keep the mind stimulated and to continually learn and grow. However, Kevin O'Leary advises against going into debt for personal development unless it's a strategic move for self-improvement.

💡Debt

Debt is an amount of money borrowed by one party from another, with the agreement to repay the amount with interest. In the video, Kevin O'Leary distinguishes between personal debt, which he advises against, and business or investment debt, which can be strategic if it is tied to a hard asset like real estate. He emphasizes the importance of paying down high-interest personal debt, such as credit card debt, before investing.

💡Passive Income

Passive income refers to earnings derived from a rental property, an enterprise in which one is not actively working, or any commercial venture that is not time-based. In the video, the concept is mentioned as a crucial aspect of wealth management, particularly for those who have reached a certain level of financial stability. Kevin O'Leary suggests that as one's financial situation allows, it's wise to seek passive income streams to secure financial independence.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business, which often involves risk-taking and innovation. In the video, Kevin O'Leary highlights the difference between being an entrepreneur and an employee, noting that entrepreneurs often take larger risks with the potential for higher rewards. He shares his own experience of having most of his wealth tied up in his company before selling it and diversifying his investments.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on decentralized networks, such as blockchain technology. In the video, Kevin O'Leary discusses his cautious approach to cryptocurrency investment, focusing on stablecoins and staking rather than engaging in speculative trading. He emphasizes the complexity and volatility of the crypto market.

💡Equity Crowdfunding

Equity crowdfunding is a method of raising capital by selling shares of a company to a large number of people, typically via the internet. In the video, it is presented as a viable option for startups and small businesses to raise funds, especially for those with a social or environmental mission that can attract like-minded investors.

💡Wealth Management

Wealth management involves the investment and management of assets to meet financial goals and objectives. In the video, Kevin O'Leary provides advice on wealth management strategies, such as paying down debt, diversifying investments, and focusing on passive income streams. He emphasizes the importance of having a plan and making informed decisions about one's financial future.

💡Sales

Sales is the process of selling products or services to customers. In the video, Kevin O'Leary emphasizes his background and success in sales, suggesting that his sales skills would be his starting point if he had to make a million dollars from scratch. He highlights sales as a transferable skill that can be leveraged to generate income in various contexts.

💡Investment

Investment refers to the commitment of money or capital to a particular venture or asset with the expectation of achieving a profit or return. In the video, investment is a central theme, with Kevin O'Leary discussing various investment strategies, including diversification, real estate, and even cryptocurrency. He emphasizes the importance of understanding one's investments and the risks involved.

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

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