Tony Robbins – The School of Greatness with Lewis Howes

Check out The School of Greatness Episode Page & Show Notes

Key Takeaways

  • Over the last 20 years, the S&P 500 produced an average yearly return of 8.2%
  • On average, there is a market correction EVERY YEAR – don’t panic when it occurs
    • The average correction lasts 56 days and consists of a market drop of about 14%
    • 80% of all corrections NEVER become a bear market!
  • A market crash (aka a bear market) happens on average every 3-5 years
    • An average bear market lasts 1 year and consists of a drop of about 33%
      • ⅓ of drops are > 40% – This is no doubt scary, but it’s also the best time to invest
  • “The stock market is the only place where, when things go on sale, people freak out”
    • Investing advice – When people are afraid, be greedy. When people are greedy, be afraid.
  • “Skip a meal, but don’t skip reading”
  • Who you spend time with is who you become

Intro

Investing Advice  

  • In the long run, it’s always better to diversify your investments
    • If you put all your eggs in one basket, sooner or later that area will experience a dramatic drop (50-70%)
      • The same advice applies to putting all of your money into your company, try to diversify and own two different businesses – (Tony Robbins says he owns 31 companies in 7 different industries)
  • The best time to invest is during the most seemingly “worst times” – corrections, recessions, and depressions
  • Millennials aren’t investing because they experienced the great recession of 2008, and they’re fearful
  • To first step to investing is getting in the game and become an owner – owning stocks, bonds, real estate or other types of asset class that can appreciate in value

Corrections vs Crashes

  • What’s a correction? – Any time the market drops 10-20%
    • On average, there is a correction EVERY YEAR – Don’t panic when a crash occurs, it’s happened almost every year for the past 116 years!
      • An average correction lasts 56 days and consists of a market drop of about 14%
      • 80% of all corrections NEVER become a bear market!
  • What’s a crash? – Any time the market drops 20%+ (also called a bear market)
    • A bear market happens on average every 3-5 years
    • An average bear market lasts 1 year and consists of a drop of about 33%
      • ⅓ of drops > 40% – This is no doubt scary, but it’s also the best time to invest!
  • “The stock market is the only place that when things go on sale, people freak out”
    • Just think – If Ferraris were on sale for 50% off, people would run to buy them. But when Apple stock is on sale for 50%, people run away!
  • Every single bear market, in the history of the United States, has lead to a bull market
    • When the stock market crashed in 2008, in 2009 it went up 67%
      • When people are afraid, be greedy. When people are greedy, be afraid.

More Trading Advice

  • Over the last 20 years, the S&P 500 produced an average yearly return of 8.2%
    • But you CANNOT time the market – get in and hold, or else you’ll miss out
  • The best time to buy is during the most pessimistic times
    • In 2008, the Las Vegas Sands stock was priced at $2.28 but today it’s over $65 – a 3,000% return
  • The markets are a cycle – the good times don’t last forever nor do the bad times

Life Advice

  • Money is great, but it doesn’t guarantee happiness
  • Tony suggests everyone have a gratitude practice to help them better appreciate life
    • “The secret of living is giving”
  • Every single day, feed and strengthen your mind
    • The brain is designed for survival, not success – it’s your job to change that
    • “Skip a meal, but don’t skip reading”
      • Read 30 minutes a day
  • Strengthen your body through exercise
    • Strong body = strong mind, and vice-versa
  • Almost all successful people have the capacity to strengthen and increase their hunger
    • The most successful people are always hungry and driven to do more
    • How do you stay hungry? – Surround yourself with people that have the same mindset
      • “Who you spend time with is who you become”
  • Happiness = Progress
  • “The things we work the hardest for, we value the most”
  • When it comes to dating, ask yourself – “Do I want to be right or do I want to be in love?”
  • Money is a magnifying tool, it makes you more of what you are

These notes were edited by RoRoPa Editing Services

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