-
Billionaire Focus: Why I Don’t Diversify
- 2024/10/26
- 再生時間： 26 分
- ポッドキャスト
-
サマリー
あらすじ・解説
Billionaire Focus: Why I Don’t DiversifyGet Your Personal Financial Budget Statement Here:https://s3.us-central-1.wasabisys.com/40webinars/personal-financial-statement.xlsxBriarCliff Crest is an exclusive, invite-only opportunity for select traders looking to elevate their strategies. The only way to secure a chance for an invitation is to email the contact info provided on this podcast.Show NotesIntroductionTopic: Answering the question about how to invest $100.Scenario: Deciding between diversifying investments or focusing on one stock.Main QuestionKen’s Question: Should I diversify $100 into different stocks or invest all in one stock?Antonio’s ResponsePraise for Asking:Good question.Important to ask, even though it's tricky.Institutional Trading Overview:Term: Smart Money (e.g., Warren Buffett, Ray Dalio).Institutional Strategy: Focused on traditions, signals, and market movements.Antonio's Personal StrategyNo Diversification:Belief: Does not believe in diversification.Example: Jeff Bezos (Amazon), Steve Jobs (Apple), Elon Musk (Tesla)—none of them diversified, they focused on one business.Stocks Philosophy: Treat stocks as one business, focus on 5 main stocks rather than diversifying.Personal Approach: Picks 2-5 stocks and keeps reinvesting.Method: Repeatedly hedges bets within those chosen stocks.Antonio’s Justification for His ApproachMindset: Thinks like a billionaire.Example: Even when picking different stocks, it’s still one focused investment strategy—no broad diversification.Otis’ ResponseDiversification or Not:Depends on Intent: What is your goal for investing the $100?Trading Class Focus:Example: With $100, if stocks are over $50, you can only get one share.Reinvestment Strategy: Invest in one stock, take profits, reinvest gains, and grow over time.Otis’ Long-Term StrategyDiversified Approach:Waits for opportunities, rides out market corrections, aiming for steady 7% annual growth.Example: Diversified over time to maintain wealth while taking advantage of short-term opportunities.Trading MindsetSingle Position Focus:Reason: Only trade one stock at a time to manage it carefully.Automating: Though Antonio plans to automate, traditionally, it's about focusing on one position.Mindset: Avoid holding on to losses by maintaining discipline after losses.Antonio’s Closing ThoughtsDiversity in Stocks:No belief in true diversification.Criteria for Stocks: Only focuses on high-liquidity stocks, which limits the need for diversification.Quote: "Nobody's ever got rich from diversity."Otis’ Perspective on Stock SelectionStock Fundamentals:Long-term investing involves emotional attachment to certain companies based on their fundamentals.With trading, it doesn’t matter what stock you choose as long as it has liquidity and moves.Otis’ StrategyTrading Process:Buy low, sell high repeatedly.All stocks behave similarly on a trading basis.Ken’s Question:It exposed Antonio’s unconventional belief of not diversifying.While Otis follows a more traditional approach, Antonio maintains a focused strategy thinking like a billionaire.Ken’s Initial Question: Should I invest $100 in one stock or diversify it across multiple stocks?Antonio’s ResponseInitial ReactionGood Question: A necessary question but one that exposes Antonio's unconventional view.Institutional Trading Definition:Institutional Trading: Smart money (Warren Buffett, Ray Dalio).Strategy Focus: Institutional investors follow specific signals and patterns.Antonio’s Investment PhilosophyAgainst Diversification:Philosophy: Antonio doesn’t believe in diversification.Billionaire Examples:Jeff Bezos (Amazon): Focused on one business.Steve Jobs (Apple): Focused on one business.Elon Musk (Tesla): Focused on one business.Focus: Antonio applies the same principle to his stocks, treating them as one entity.Example: He chooses a few main stocks and focuses all energy there, not spreading investments too thin.Mathematical FocusHedging Bets:Antonio focuses on maximizing chances by staying within a narrow set of investments.The more he stays in that area, the higher his chances of winning.Mindset: Moving investments too much spreads out the chances of success, reducing the likelihood of consistent wins.Trading ApproachAntonio’s Method:Prefers to make one trade at a time, sometimes two, but only for short durations.Uses automation and stop losses for checks and balances.Finds two trades stressful, showing his personal investment mindset.Real Estate StrategyReal Estate Investment:Antonio uses the same strategy in real estate as in stocks.Numbers Focus: Looks at real estate purely through financial metrics, not emotional attachment.Example: Analyzes real estate properties without visiting them, similar to reading stock charts.Comparison: Real estate dividends are equivalent to stock dividends (rent = dividends).Investment Duration:Stays invested in real estate long-term, unlike stocks where he’s quick to exit.Doesn’t favor ...