The Game with Alex Hormozi When Is It Time To Actively Invest? | Ep 524
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Apr 13, 2023 Timing is everything when it comes to investing. The discussion dives into opportunity costs and highlights the importance of saving living expenses for potential investments. Investing time in personal skill development can often yield bigger returns than traditional methods. They emphasize transitioning from simply earning income to effectively managing and growing wealth. Strategies for skill enhancement and investing in liquid assets are also explored, making this a must-listen for aspiring entrepreneurs.
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Downside Protection
- Consistently take dividends out of your growing business to reduce downside risk.
- Most businesses don't succeed long-term, and even fewer sell, so don't rely on a sale.
Opportunity Cost
- Consider the opportunity cost of active investing versus focusing on your core business.
- If your business generates significant income, prioritize its growth over smaller investment returns.
Cash Reserves and Passive Investing
- Keep 6 months to 2 years of living expenses in cash for peace of mind.
- Invest excess cash passively (e.g., S&P 500) and consider loans against assets for new ventures.