Jordan Belfort - The Wolf of Investing: My Playbook For Making A Fortune On Wall Street
Nov 24, 2023
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Jordan Belfort, The Wolf of Wall Street, joins London Real to discuss the manipulative tactics employed by Wall Street, the power of long-term investing, responsible investing in the crypto market, challenges of human nature in trading, frustration with the Democratic Party, and influence of the medical industry and censorship on technology platforms.
Investing in the S&P 500 allows for predictable returns and long-term compounding, securing financial stability over time.
Experts in the financial industry cannot consistently beat the market, so focus on a simple and consistent investment strategy like dollar-cost averaging into reliable investments like Bitcoin and Ethereum.
Avoid getting caught up in scams, speculation, and misleading advice by following sound principles such as investing in the S&P 500 and making regular contributions.
Building long-term wealth lies in responsible investing, separating investments into different buckets (S&P 500, Bitcoin and Ethereum, and healthy speculation) to secure financial future and retire with pride and dignity.
Deep dives
Investing in Wall Street's Game
Wall Street's game is designed to benefit the financial industry, not individual investors. Their aim is to lure people into short-term trading and speculation, which is stacked against them. The best way to beat Wall Street at their own game is not to play it. Instead, focus on long-term investment opportunities and stick to reliable investment vehicles like the S&P 500. Investing in the S&P 500 allows for predictable returns and long-term compounding, securing financial stability over time.
The Fallacy of Expert Advice
In most aspects of life, seeking out experts for the best results is beneficial. However, investing is the exception. Experts in the financial industry cannot consistently beat the market. Their advice often leads to poor results due to conflicts of interest and a lack of foresight. Trying to predict the future of the market or pick individual stocks is a fool's game. Instead, focus on a simple and consistent investment strategy, like dollar-cost averaging into reliable investments like Bitcoin and Ethereum.
Avoiding the Corrupt Casino
The investment landscape is filled with scams, speculation, and misleading advice. It is essential to avoid getting caught up in this corrupt casino and instead focus on responsible and proven investment strategies. This involves resisting the urge to engage in rapid trading, timing the market, or speculating on individual stocks or cryptocurrencies. By following sound principles, such as investing in the S&P 500 and making regular contributions, you can secure your financial future without falling victim to the pervasive scams of the financial industry.
Finding Success in Responsible Investing
The key to building long-term wealth lies in responsible investing and letting time do the work for you. By following a system outlined in the book, which focuses on investing in reliable and proven investment vehicles, individuals can accumulate significant wealth over time. This involves separating investments into different buckets, such as the S&P 500 for stable returns, Bitcoin and Ethereum for crypto exposure, and allocating a portion for healthy speculation. By implementing this strategy and staying patient, individuals can secure their financial future and retire with pride and dignity.
The Importance of Dollar Cost Averaging and Compounding
The podcast highlights the significance of using the dollar cost averaging strategy and the power of compounding returns over time. It emphasizes the idea of consistently investing in the S&P 500 and letting the compounding effect work its magic. This strategy has historically shown significant returns over the long term and allows individuals to steadily accumulate wealth.
Building the Right Investment Portfolio
The podcast delves into the importance of building the right investment portfolio based on one's individual circumstances, financial goals, and risk tolerance. It emphasizes aligning one's portfolio with their personality type, financial situation, and ability to handle risk. It also mentions the concept of the 'sleep test,' where one's ability to sleep at night with their portfolio should be considered. The podcast stresses the tried and true formula of including the S&P 500 in a tax-advantaged account and letting compounding work its magic over time.
Insights on Crypto and NFTs
The podcast features insights on cryptocurrencies, with a focus on Bitcoin and Ethereum. It expresses a positive outlook on Bitcoin's future, predicting substantial growth over the next decade. However, when it comes to other cryptocurrencies, the podcast highlights the importance of identifying their real use cases and the value they bring. It mentions the skepticism around NFTs, acknowledging that while they may have potential use cases like digital authentication, there have been instances of excessive speculation and lack of value, leading to losses for investors.
