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This Is How My Mentor Set Up My Wealth | Ep 693
The Game w/ Alex Hormozi
Strategies for Investment Success and Capital Preservation
4min Snip
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The foundation of successful investment lies in three key pillars. Firstly, the focus should be on investments that offer better tax treatment and preservation of capital rather than just high returns. Successful investors prioritize the return of capital over the return on capital to safeguard against losses. They emphasize defensive strategies and stress the importance of never losing money. Mitigating downside risks is crucial as one poor decision can erase a lifetime of good decisions. Successful entrepreneurs structure their wealth into different buckets, with cash flow being generated from asset-like high cash flow businesses. The cash is then allocated across three buckets, with the first bucket being indexes due to their passive nature and long-term bullish outlook on the economy. Rapid capital allocation is stressed to enhance portfolio growth over time, ensuring that capital is not idle. Allocating capital swiftly can potentially increase returns mathematically.
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