Tony Robbins - The Keys To Massive Success

Excerpts of Ray Dalio's ideas

This week we shall look at Ray Dalio's ideas from presentations of how he thinks things work.

Take a look at the links: (How the economic machine works.) 

 

Link: (Principles)

http://www.bwater.com/Uploads/FileManager/Principles/Bridgewater-Associates-Ray-Dalio-Principles.pdf

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FII

Dividend Weighted Investing

A couple of days ago I was browsing www.msn.com/en-us/money and while on the site an old investment idea clicked to me. Dividend weighted investment. This is an approach of identifying stocks that make dividend payout with regular frequency and giving special attention to those stocks exclusively.

 I checked the New York Stock Exchange (NYSE) and found over four hundred (400) stocks that paid dividends ranging from .5% to above 10% in some cases and with a 3%-4% yield on stock price an average with these dividend payouts. Most of the dividend payout/stock price yields were better than saving interest rate and treasury rate of returns.

Yes, I know people will argue that stocks are risky and there is a chance of suffering permanent loss of capital, but banks go bust and governments default on their promised to pay you a particular rate of return on the money loaned to them, only later to hear that you have to take proverbial haircut, (they operating more like Ali-"barber"). So I say that to suggest that risk is everywhere. Even if you plant a garden the weed will eat your fruits.

Exchange Traded Funds are now being designed using this strategy or approach to compile portfolios. Take a look at www.wisdomtree.com/dgrw/ 

See link on the dividend aristocrats: https://www.youtube.com/watch?v=BKyUKGp27FA

Dividend weighted investing can be a strategy or an investment approach.

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FII

Investment Dry Powder

In one of Berkshire Hathaway Chairman's letter in the earlier years written by Warren Buffett, he told a story, as he usually does, about his investment approach. He mentioned the loaded "shot gun wait" for a slow moving elephant as he sits waiting patiently. In last year’s letter he promised a return to the investment jungle as he had dry powder, but couldn't find a slow moving elephant fast enough to allocate his ever growing cash intake.

Dry powder is really referring to gun powder in a financial sense, but cash is the investment substitute for dry powder.

Link (Dry Powder video)

You have to have dry powder to invest.

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FII

Useful investment information blog

I have found this blog most useful: www.valuewalk.com, you should subscribe.

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FII

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Keep your investment approach simple

Keep your investment approach simple and you will be find in the long run. With that said; today I am keeping it real simple with a Charlie Munger (Link)

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FII

Top 5 things to nailing a great investment opportunity

No matter how much we read about investment opportunities, most times by the time these opportunities are made public and we hear about them the opportunity is already gone. I am going to brief today with my blog. So here we go with the top five things to nailing a great investigation.

• Focus on the most important things first.

https://www.youtube.com/watch?v=ohtAnE8C4Ao

• Set up the conditions for which you will make or take an investment opportunity.

• Make space and time 

• Investing is not a Theme Park

• Remember Mr. Risk in any business opportunity

Often times we want to examine an investment opportunity and we spend too much time trying to make it perfect by scouring for every single detail you can find. There comes a time when too much information start having diminishing return. Worrying about the investment is not going to help either. Find the margin of safety and go for the opportunity.

Design a framework of the conditions for which you want to engage your time and money. Make these conditions suitable for you and the other parties and leave some room to negotiate bearing in mind the margin of safety. Don't be a hard ass on every single things remember that an opportunity is not prescription for saving your life so you can walk away from it if it doesn't suits you. 

Review your first impression of the investment opportunity and kill your biases. Be rational about the possible outcome and make sure that you the space in you capital deployment and the time to monitor the investment. It does not have to be something that you look at every day, but you got to check on it room time to time. Warren Buffett sells some of his investment at times, and he does so when right from and don't listen to him, because he watches them like a hawk, he just doesn't do the heavy lifting as long as the operators send the run off to him. Sam Carpenter wrote a book titled; Work the System, you can download it for free here http://www.workthesystem.com/. Work out a system that serves your space and time. 

An investment opportunity is not a theme park and cannot be the only idea of an opportunity on your mind if it is in real estate, stocks or gas stations. While you want to stay in your circle of competence, explore and grow your competence not only outside the box, but also in a different box to mitigate your risk to any single business. You can concentration on a few things at the same. How many things get concentrated on when having sex? Think about it. You get the point; it is the same thing picking a business opportunity. You want to come to the reality, you want to feel the joy of owning a great business, you the returns to run off on you, etc etc.

Don't slavishly stick to one strategy to the point of exhaustion. This link you to an older posting: http://elguard.blogspot.com/2014/10/top-four-investment-decisions-that-lead.html

There is an element of risk in anything you do, but don't allow risk to paralyze you whether by act of omission or commission. Did you hear the story about the one horse race? He was a sure winner until he jumped the fence. He never passed the winner post. Accept that not every opportunity will work out, you will get burn. I have never seen a carpenter who uses a hammer who doesn't knows what it feels like to hammer his fingers. So nail with care or should I say hammer down with care. 

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FII

     

https://www.youtube.com/watch?v=ohtAnE8C4Ao

Understanding Deep Value Investing...

Understanding deep value investing in the way Tobias Carlisle sees it: (Link)

https://www.youtube.com/watch?v=wK9H-a09rBY

 http://fivegoodquestions.co/season-1/s1e5

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FII

Cloning the Rich

This "getting rich" conservation is not an obsession, but with no focus on the attention to these details of cloning the rich as would a Xerox copier reproducing a document, no financial success can come your way hence the conversation. The basic of "getting rich" story start from the lessons of old Algamish and repeated by Arkad from the city of Babylon. How ironic, the city of "Babylon".

The book The Richest Man in Babylon by George S. Clason is a gem of a book and you should read it: 

All of this value comes at no cost to you, but speaking of value, I must not allow this opportunity to escape me without sharing the sage advice of Benjamin Graham with you too. You can find his words of wisdom in the Securities Analysis by Benjamin Graham and Graham Dodd.

I cannot imagine talking about those eminent dead (i.e. Algamish, Arkad and Benjamin Graham) and not speak about the great investors alive today; the story of cloning the rich would be incomplete. The lessons of cloning the rich are available for free on Warren Buffet's company's website Berkshire Hathaway in his letters to shareholders; you too can have his wisdom and befriend his knowledge while he is alive.

You can scuttlebutt on these things with ten of your friends and see how that fairs out. But before you go let us befriend one more eminent dead. I bring you Phillip Fisher. You may need to learn some things from his book Common Stocks from Uncommon Profit.

The last thing to say is: go do the work for yourself, you cannot get anywhere without exerting energy for yourself. Stop putting off learning and earning for you. 

Cloning the rich is a good thing to copy. Ever wonder what would happen without the Xerox copier?

Some of the finest things in comes for free and cloning is an easy way out.

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FII