Most people are investing completely wrong.
But it’s not because they’re picking the wrong stocks or ETFs… It’s because they don’t have a system for how to actually invest.
I learned my investing system from the wealthiest clients I ever worked with at Goldman Sachs.
And it’s the exact same system I still use for my own money today with 3 parts:
Keep 20% in opportunistic cash
Always have dry powder for the moment everyone else is scared and prices are low. This is exactly what Warren Buffett did during the 2008 crash.
While the entire market was terrified, he was making some of his best deals ever.
Size every bet on purpose
No single position should ever have over 5% of your portfolio. And no single theme should ever have over 10%.
This stops one bad bet or one bad sector from wiping out your entire portfolio. Never bet the empire for a pot of gold.
Give every investment two jobs
Instead of just buying one stock you like, also make a bet against a similar one you think will do worse.
This doesn’t mean you buy the other stock, it just means you’re making a prediction.
That way you’re betting on which company wins, not on the market going up.
I walk through my full investing system and how to use it yourself in this video:
Watch it on 2x speed.
But having an investment system is only effective if you actually have money to invest…
And these 4 brutal truths are what keep most people from making the money they need to invest.
Maxing out your 401(k) won’t make you rich
Cutting up your credit card
Chasing the hot stock or the hot tip
A financial advisor won’t make you rich
I explain the 4 brutal truths about getting rich in my latest video here:
Your main man,
Sharran
Love learning these tips from you!
Thanks for sharing. First time i've heard of a pair trade. Do you know of any good resources where I find out more?