
May 9, 2019
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
- An average bear market lasts 1 year and consists of a drop of about 33%
- “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
- 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
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)
- If you put all your eggs in one basket, sooner or later that area will experience a dramatic drop (50-70%)
- 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!
- 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!
- 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.
- When the stock market crashed in 2008, in 2009 it went up 67%
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