May 9, 2019

Tony Robbins – The School of Greatness with Lewis Howes

Check out The School of Greatness Episode Page & Show Notes

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

You’ve probably heard of Tony Robbins (@TonyRobbins)
Tony has a new book about personal finance – Unshakeable: Your Financial Freedom Playbook
- His last personal finance book was titled MONEY Master the Game: 7 Steps to Financial Freedom
For more Tony, check out the Podcast Notes from his appearance on The Kevin Rose Show

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

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.

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

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