One of the biggest mistakes that entrepreneurs make when deciding their next move is to just rely on instinct or gut feelings. However, making decisions based on the FOMO feeling is a recipe for disaster. So, what’s the proper approach when coming up with investment strategies?

This episode is for entrepreneurs who want to develop their personal investing principles and get clear about why they invest in the things they do. We discuss the principles of investing we use for our clients at Destiny Capital. We also discuss some specific examples of how we use our principles when helping clients make decisions in a variety of asset types including public markets, private markets, and non-traditional assets.

Destiny Capital Principles of Investing:

1. Ensure that you never go bust, stay in the game
2. Be clear about the game you are playing with any investment strategy
3. Be disciplined, greed and fear-based transactions are seldom profitable
4. Manage your liquidity needs and adapt as they change
5. If you are paying a premium for a strategy it needs to carry an information or access advantage
6. Investing decisions should be based on objective data, not subjective emotion, or 'gut feelings'.  Decisions based on emotion tend to lead to negative outcomes.
7. Financial markets are constantly evolving, have an adaptive mindset to adjust to changes in opportunities and risks
8. Be a force for good with your investing
9. Don’t forget about the first principle

Tune in to this episode!

Resources:

• Destiny Capital (https://www.destinycapital.com)

What’s Discussed in This Episode:

1. An overview of today’s topic [01:09]
2. Principles are essential in making tough decisions [03:40]
3. Principle #1: Never go bust [04:48]
   • Your investment strategies should align with the four pillars of your life [08:07]
4. Principle #2: Be clear about the game you are playing [06:37]
   • Without discipline, greed and fear sets in [10:23
   • Why Tiffany was able to bounce back despite investment strategy issues [10:32]
5. Principle #3: Be disciplined with your strategy [09:15]
   • You need to have your bull and bear market strategies [16:12]
6. Principle #4: Manage your liquidity needs [14:47]
   • If there’s no informational advantage, the cost should rule the decision [21:04]
7. Principle #5: If you’re paying a premium, have an informational or access advantage [18:31]
   • Using gut feelings is almost never the right call [22:54]
8. Principle #6: Investing decisions should be based on data, not gut feelings [21:10]
   • Don’t become the next Blockbuster [26:33]
9. Principle #7: Have an adaptive mindset [24:55]
   • Be conscious of what you consider to be good [30:37]
10. Principle #8: Be a force for good with your investing [29:19]
11. Overview of the next episode [33:07]

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