- One of the most common questions I get
for the Boss in the Bentley series is,
Dan, what should I invest in?
Dan, what do you invest in?
How should I look at investments?
I've put some money aside,
I've got $5,000, $10,000, $20,000, $100,000, $200,000,
what do you recommend?
Today I'm gonna teach you
how rich people invest in money.
I'm not gonna teach you what to invest
because what you invest in depends on
what you like, what do you don't like,
what do you understand, what are your strengths,
what are your weaknesses, and how much money you have.
What's a good investment for me
might not be a good investment for you.
What's a good investment for somebody else
may not be good investment for you.
So, how do I view investing?
Number one, rich people,
we invest in something that we understand.
You look at Warren Buffett, I mean,
he and Bill Gates have a great relationship,
but he doesn't invest in tech companies.
He doesn't invest in technology stocks.
In spite, he's one of the greatest investors of all time.
He only invests something he understands.
Same thing with me, I do not invest in cryptocurrency,
so don't ask me about cryptocurrency.
That's not my area of expertise.
Now, I have friends who have made a lot of money,
we're talking about five, 10, 20 times, multiples
on their return of investment.
They are very good with cryptocurrency,
they study cryptocurrency and how all of that works,
and they sometimes give me tips.
I'll never invest a single dime, not a single penny.
I trust my friend, it doesn't matter,
because it's not something that I understand.
So, rich people invest in what we understand.
If you believe someone's hard tip,
you believe someone says on Facebook post,
oh, you should be, buy this, invest in that,
you're a fucking idiot, okay?
So, only invest something you understand.
Don't buy into the whole get rich quick
or you're gonna miss out mentality.
That's a very, very amateur investor.
Number two, rich people,
we're always looking for investments.
We're always looking for investments.
It means we're looking for, the term's called deal flow.
We always wanna have deal flow coming to us.
Always, from all kinds of sources.
It could be from broker, could be from friends,
like high net worth friends, it could be
from internet, we're always looking at deals.
I have a simple rule: 100, 10, three, one.
It means you look at 100 deals, 100 potential investments.
You might break it down into 10.
From that 10, you will nail it down to three
that has got possibility, and then you might do one.
So, for every investment that comes across my table,
I turn down 99.9% of them.
I look at hundreds and hundreds and hundreds of investments
and I do very selectively, very selective, just a couple.
Do you just, anything that come across a table,
you see online, oh, that sounds pretty good?
Or if you're gonna buy a stock, fucking you look
at two stocks and jump into one.
Or you buy a piece of property, hey, that looks pretty good.
Look at three properties and you jump into one.
Again, you are not doing your research.
Always remember, investigate before you invest.
Investigate before you invest.
Don't worry about you're gonna miss
the opportunity of a lifetime.
You know what I've learned about
when it comes to investments?
There's always another deal,
there's always another opportunity, don't worry about it.
Don't worry about missing out.
If you're truly a good, professional investor,
you don't have to worry about that shit.
So, deal flow, rich people are
always looking for investments,
and they narrow it down, numbers game, numbers game.
Number three, rich people, when they comes to investing,
they use their logic, not emotions.
Amateur investors, you look at most the time
when they invest in something, it's very emotional.
Hey, my friend told me about this cryptocurrency, man.
Fuck, you gotta get in, man.
It's a lot of fucking emotions, emotion attached to it.
Or when they buy a real estate property,
oh man, I love this neighborhood,
I love the color of the carpet.
When I invest in an investment, there's no emotion.
I don't care about the carpet color,
I don't care about the bathroom,
I don't care about all of these things.
What I care about is the numbers.
I look at the numbers, does it make sense?
Does it make sense using your logic?
Or people, when it comes to stocks,
amateur investors, that's why they lose money.
They get greedy, stock is going up, price is going up.
Well, you know what, they don't wanna sell.
Oh, I'm gonna just keep riding the winner.
I'm gonna keep riding the winner.
And it suddenly drops, you lose money.
Or the stock drops, and then you suddenly,
well, you know what, it's gonna bounce back.
Fucking drops some more, it's gonna bounce back.
They're using their emotions instead of logic
versus hey, you know what, the stock has gone up this much.
I'm gonna sell some of my shares and take my profit.
And whatever that's keep going up, riding the winner,
that's going to be gravy.
Or, there's a stop loss, right?
When they drops a certain percentage, I don't care.
I take my emotions out of the way, you gonna sell.
I wanna cut my losses and minimize my losses.
So they use their logic, not emotions.
So when it comes to investing,
if you're not sure how to invest,
you're asking me the question,
hey Dan, what should I invest?
What you should do, then, is it tells me
you are not sophisticated enough,
you're not a sophisticated investor.
If you're not so sure, the best investment you can make
is always in yourself.
Invest in training, invest in things
that can upgrade your skills, invest in yourself,
because nobody can take that away from you.
And you can always, always use that
and you will get a better return,
when it comes to investing yourself,
than anything else you would invest in.
Not a piece of property, not a business,
not a stock, not cryptocurrency.
Invest in yourself, read that book,
go to that event, take that training,
hire that consultant, don't hesitate, invest in yourself.
It will always give you the greatest return.
So that, to me, is the greatest investment.
I constantly invest in myself,
I constantly upgrading my skills.
When it comes to investing myself,
I never stop, and I never go on the cheap.
Never, and I am already successful.
So if that's the case, if that's me,
what the hell should you be doing?