Episode 109 5 Things I Did To Become a Better Investor
Summary
- Summary:
- This podcast episode is about investing and the five or so things Tim Ferriss did to become a better investor. He emphasizes the importance of having an advantage, such as informational, analytical, or behavioral. He suggests reading about different styles of investing to identify patterns and people to emulate. He recommends reading The Making of an American Capitalist and Warren Buffett's annual letters. He also advises getting professional advice before making any financial decisions and suggests putting money in no load index funds or using Wealth Front if one does not have the time to read.
- Read More Money Than God and Liar’s Poker for a reality check on the stock market
- You Can Be a Stock Market Genius by Joel Greenblatt is an underrated book for intermediate and advanced investors
- Money: Master the Game by Tony Robbins is a compilation of interviews with famous investors
- The Smartest Investment Book You’ll Ever Read by Daniel Solin is a quick read with compelling logic for index investing
- What I Learned Losing a Million Dollars by Jim Paul and Brendan Moynihan is a book about the psychological and practical aspects of losing money
- When investing, assess risk tolerance conservatively and create criteria for buying and selling.
- Real estate and stock investments require a plan for when to sell in order to make a return on investment.
- Paper trading is a good way to practice investing without using real money.
- AngelList is a helpful resource for startup investing.
- Back testing and Monte Carlo simulations can be used to test investments.
- Real world MBA is a concept where one invests their own money in startups with the expectation of losing it, but gaining skills and relationships in the process.
- Regular checkins with oneself are important to ensure that the point of investing is not forgotten.
- Richard Koch's book The 80/20 Principle is a helpful resource for investing.
- Less is More; an Anthology of Ancient and Modern Voices in Praise of Simplicity is another helpful resource.
- Tim Ferriss' blog posts Rethinking Investing and Common Sense Investing for Uncommon Times are also helpful.
- Tim Ferriss recommends a barbell strategy approach to investing, where 8090% of the portfolio is hyper conservative and 1020% is hyper aggressive.
- Tim Ferriss suggests to know thyself when it comes to investing, as it applies to many other areas of life.