This is rule #1 of compounding your wealthAug 13, 2019
Warren Buffett said that Rule #1 of investing is to not lose money.
And Rule #2?
Well, see Rule #1.
It’s a truism to say that you shouldn’t lose money on investments.
But there’s an important mathematical principle behind the mantra.
That is, if your portfolio drops by half (50 per cent), it needs to double (or increase by 100 per cent) just to get back to where you were.
And that very rapidly becomes a very difficult equation to win.
So, how do you go about compounding your wealth without being exposed to the big drawdowns?
A combination of diversification and an awareness of cycles and valuations is a good place to start.
I believe the abundance goal should be to continue compounding and growing your wealth throughout your lifetime – into retirement and beyond – aiming to leave a legacy.
I discuss this in the short video here
Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:
- Boom or Bust in 2021 – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here
- Subscribe to our Top 100 Podcast for Investors
- Join our Implementation Program
We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.
- Work with me privately
If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!