Episode 04: Best Investing Advice pt. 1 - Buffett, Dalio & Bogle. Learn 1 amazing tip from each  G.O.A.T. investor. Warren Buffett, Ray Dalio & Jack Bogle.

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Transcript:

Hey, what's up, everybody? I'm Mike Germinario and it is my mission to show you how to build an indestructible, automatic, investing machine, working for you 24/7, so you can have the life you dream about.

 In today’s show I’m going to share some of the best investing advice I ever heard. And this advice didn’t come from, like, Uncle Bob, okay? This advice comes from the greatest investing minds of all time. I’m talking about legends like Warren Buffett, Ray Dalio, Jack Bogle, David Swensen, Robert Kiyosaki & Jim Cramer. This is part one which will cover Buffett, Dalio & Bogle. Part two will cover Swensen, Kiyosaki & Cramer.

These legendary minds have taught me so much and the advice they give is timeless, so I’m pumped to share it with you today.

Before we jump in I just want to point out how important it is to seek out mentors, coaches & influencers that are best in class at the skill set that you are trying to learn. This applies to anything, not just investing.

Find the people that are crushing it, that have demonstrated mastery and ask them how they did it.

So here we go, let’s hear one piece of advice from each of my greatest teachers.

Warren Buffett is considered one of the greatest investors in the world and has a net worth of over $102 billion.  He’s one of the wealthiest people in the world and he’s also a very generous philanthropist. Warren Buffett taught me about the power of compounding. Compounding is a phenomenal investing principle that is the foundation of building wealth. And it goes like this…

Step 1. You invest in an asset that pays you either interest or dividends.

Step 2. You don’t spend the interest or dividends, but instead reinvest them back into the asset.

Step 3. Hold forever – never sell.

Three steps to building generational wealth right there, and it’s called compounding! Let me explain it like this…

You’re on top of a huge snowy mountain and it takes a really long time to get all the way down to the bottom. You make a tiny snowball (that’s like you’re initial investment). Then you roll it down the mountain. As it rolls down, your snowball gets bigger (that’s like reinvesting the interest & dividends). Finally, a really long time later your snowball reaches the bottom. Except it’s no longer a snowball. It has transformed into a massive snow behemoth bigger than you could imagine. That’s compounding. Thank you Warren Buffett.

Ray Dalio started what came to be the world’s largest hedge fund, Bridgewater Associates. His unconventional style and persistence has made him one of the greatest innovators and influencers in the investing world. He’s also one of the most generous human beings on the planet, sharing not only his wealth but also his knowledge.

The best advice I learned from Ray is that you don’t know what you don’t know. You hear people all the time making predictions about what’s going to happen next, but Ray figured out that nobody knows anything, really. It’s impossible to perfectly predict the future and place bets on it if you want to stay in the game for the long-term.

That’s why he created the “All Weather” or “All Seasons” strategy. With this strategy Ray is saying to build a portfolio that can handle any weather. In other words no matter what economic event is coming our way, our portfolio is built to handle it.

I love this advice and when I applied it to my investing it totally transformed my life and the way I approach everything. If you want to invest like a billionaire and never lose sleep at night, check out Ray Dalio’s “All Season’s” or “All Weather” strategy.

Jack Bogle is the godfather of the index fun. He was also the founder of the Vanguard Group, which is one of the most popular brokerages today. The best advice I learned from Jack is to buy index funds. And if you don’t know…an index fund is one easy investment to capture an entire market.

For example, the S&P 500 US Stock Market has 500 companies in the index. You could buy individual stock in all 500 companies, which would be a very unpleasant and time-consuming process. OR…you could just buy an S&P 500 index fund. This is the easiest and most effective way to invest. Jack Bogle also made it the most affordable, as he always led with the small-time individual investor in mind. Jack passed away in 2019. Thank you Jack Bogle and may you rest in peace.

Until next time, never leave money on the table of life.

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