American Monetary Association 295: Wealth Simulations & Portfolio Evaluations
Jason Hartman and Investment Counselor Doug take a look at the danger of manias, especially when it comes to investing in startup companies (like WeWork). It's easy to get caught up in rising valuations and the like, but it's also easy to lose a whole lot doing so.
Jason and Doug then discuss the Wealth Simulation exercise that was held at Profits in Paradise, including lessons learned about the method of building your portfolio that will set you up for the greatest wealth.
Key Takeaways:
[2:22] WeWork is a great example of why you should follow Commandment 21: Thou Shalt Avoid Manias
[7:17] Don't fall for the company line of how they're going to change the world. Voluntary exchange with a company changes the world on its own
[10:24] Don't be fooled by the resume or the amount of money that's being pumped into a company when making investment decisions
[11:57] Blogcast: Housing vs Shelter
[19:22] How the Wealth Simulation exercise worked
[23:23] One of the top strategies in the wealth simulation game was a mixture of linear and hybrid markets so you could take advantage of cash flow and appreciation
[29:35] You don't have to have too many properties before you're at the point where you're dealing with the law of large numbers
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