The Game with Alex Hormozi When Is It Time To Actively Invest | Ep 310
Jun 22, 2021
Timing is everything in investing! The discussion revolves around opportunity costs and the importance of saving for future investments. Listeners learn about asset loans and the value of investing time to grow income. Alex emphasizes skill development as a means to increase value and profit. It's a blend of strategic moves that could help entrepreneurs make smart financial decisions!
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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 of Active Investing
- Actively investing early on can distract from growing your core business, which typically offers higher returns.
- Focus on maximizing your primary income source before diverting significant attention to active investments.
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 asset-backed loans for new ventures.