Episode 038 Tony Robbins Part 2

Summary

• Tony Robbins is a performance strategist with clients including Presidents, Mother Theresa, Andre Agassi, Leonardo DiCaprio, and Oprah Winfrey.
• Asset allocation does not mean choosing between stock picking or investing in an index fund.
• If you invest and lose 50%, you have to have a 100% gain to get back to break even.
• Investing in the stock market over a period of time can result in a 47% loss.
• Automating investments can help people save more money.
• 96% of mutual funds will never match the market.
• People should understand the rules of investing before getting in the game.
• Mutual funds can cost 1030 times more than the same investment.
• The chance of success in finding the right mutual fund is 96% against you.
• Ray Dalio is a selfmade billionaire from Queens, New York who got his start in the stock market in the 1970s.
• He was surprised by the Nixon rally and it gave him a lifelong focus to always ask what he doesn't know and understand the system as a whole.
• He founded Bridgewater and has been consulted by the US government and McDonald's for his expertise in math and futures.
• His alpha fund has only lost money three times in 23 years and has returned 21%.
• Tony Robbins talks about the average mutual fund and how people are seduced by the rate of return, but the actual return is much lower.
• He also talks about how humans respond to incentives and how guidance counselors lower expectations to optimize their success rate.
• He emphasizes that fees matter and people should be aware of the fees they are paying.
• He also talks about asset allocation and how it can be difficult to rebalance when you have a lot of private stock.
• Ray Dalio created an "allweather" investment strategy to reduce risk and maximize upside.
• The strategy is based on four factors that move the price of any investment: inflation, deflation, economic growth, and economic shrinkage.
• Ray tested the strategy back to 1925 and found it to be successful 85% of the time.
• The average loss was 1.9%, with the most being 3.95% in 2008.
• Ray shared the strategy with Tony Robbins, who then shared it with institutions and put it in his book.
• Tony Robbins and Tim Ferris discuss the importance of understanding one's risk tolerance, personal goals, and fee and tax structures when investing.
• Tony Robbins and Elliot, CEO of Hightower, created a website, Strongholdfinancial.com, to provide free investment advice to people with less than $25,000 of investable assets.
• The website aggregates accounts, shows real costs, returns, and volatility levels, and compares portfolios to those designed by Ray Dalio.
• Tony Robbins and Tim Ferris emphasize the importance of having a plan in place for when crashes and Black Swan events occur, and to avoid impulse reactions that lead to buying high and selling low.
• Tony Robbins and Tim Ferris discuss the importance of asset allocation and diversification when it comes to investing.
• They discuss the power law distribution, where one or two investments can make up for all the losses.
• They talk about the importance of understanding one's risk tolerance and cash flow when deciding how much to allocate to secure and growth investments.
• They also emphasize that investing should be about maximizing quality of life, not just maximizing return.
• They suggest a barbell strategy, with super safe investments and startup investments, to be all seasons ready.
• Tony Robbins believes that everyone is an investor, and it is important to become literate in basic financial concepts.
• People should not trade time for money, as it is the worst trade of your life.
• People should give themselves a short burst of time to become knowledgeable in the area of finances, and then they can decide if they want someone else to manage their finances.
• Carl Icahn and Jack Vogel are fans of each other, and Tony Robbins introduced them to each other.
• Richard Branson is the first person Tony Robbins thinks of when he thinks of the word successful.
• Tony Robbins has updated his beliefs over the years, rather than changing them.
• Mark Andreson's motto of "strong opinions weakly held" is common among top venture capitalists and investors.
• Tony Robbins is a "love bug" who is passionate about seeing people lit up, happy, and freed.
• He was invited to a meeting with President Obama by Mark Benioff.
• Tony was frustrated by the President's style of politics and lack of leadership.
• At the meeting, Tony asked the President two questions: why he was demonizing the other party and why he didn't support Simpson Bowles.
• The President responded to Tony's questions and the conversation ended with Tony thanking the President for his time.
• After the meeting, Tony was surprised to receive positive feedback from the other attendees.
• Tony Robbins met the President of the United States and offered advice on how to bridge communication between both sides of the political aisle.
• Tony Robbins was asked to work with the opposing candidate in the debates, but his invitation was revoked after the first debate.
• Tony Robbins experienced a dark moment of doubt when his wife developed a tumor due to motion sickness.
• Tony Robbins overcame his doubt by trusting his gut, hydrating, and resting.
• Tony Robbins believes that the worst events in life can be the best events because they can help millions of people.
• Tony Robbins encourages people to experience things rather than just believe them.
• People can learn more about Tony Robbins and his book, Money Master the Game, at tonyrobbins.com.
• Tony Robbins has written a book, Game, with seven simple steps to financial freedom.
• He offers a fast track video series for those who find the 600 page book too daunting.
• The book is entertaining and takes readers on a journey through the financial world, the lives of people who started with nothing and became wealthy, and their own journey to financial freedom.
• Money is a tool to be used for service and to increase the quality of life, not a weapon.
• Tim Ferris was so pulled into the book that he put off other projects.
• Tony Robbins and Tim Ferris met in person for the first time.