Get Yourself Optimized

447. How to Not Lose All Your Money with David Leiter

Feb 15, 2024
Financial and real estate expert David Leiter shares insights on avoiding unwise investments, assessing risk realistically, and focusing on high-quality assets. Topics include the 'risk ladder,' favoring wonderful businesses or properties, and his five levels of investor framework.
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ANECDOTE

Mastermind Losses

  • David Leiter witnessed significant financial losses among friends in mastermind groups.
  • These losses stemmed from inexperienced investors and some illegitimate schemes, particularly during the crypto boom.
INSIGHT

Risk Ladder

  • Consider a "risk ladder" when investing, starting with low-risk US Treasuries as a benchmark.
  • Higher-risk investments should offer proportionally higher returns to compensate for the added risk.
ADVICE

Productive vs. Speculative Assets

  • Focus on productive assets that generate returns (e.g., real estate, businesses) rather than speculative assets like crypto.
  • Crypto's value relies solely on future buyers' willingness to pay more, making it unproductive and speculative.
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