Have you ever wondered which type of portfolio might a young investor who is not afraid of risk choose?
Self-made millionaire Phil Town has the answer.
In this exclusive Mindvalley podcast episode, Mindvalley Founder and CEO Vishen Lakhiani talk with Phil Town, author of New York Times bestsellers, Rule Number One and Payback Time, to learn Phil’s greatest investment secrets.
As someone who once worked alongside Steve Jobs and turned $1,000 into $1.45 million in just 5 years, Phil Town is the man with the answers.
Here’s everything you need to know about savvy investments and marketing strategies from a true entrepreneurial guru.
Which Type Of Portfolio Might A Young Investor Who Is Not Afraid Of Risk Choose?
One of the critical things about becoming an investor is that you’re voting your values. You’re thinking about what you want the world to be and what you want to support in the world with your money.
It’s never too early or too late to begin investing. That’s really rule number one.
But for those interested in learning which type of portfolio might a young investor who is not afraid of risk choose, Town has a gold-mine of advice.
The first step? Avoid mutual funds and opt for index funds instead. Mutual funds are expensive and don’t buy you much.
Index funds are cheaper in the long run and perform just as well as mutual funds.
How To Choose Where To Invest
It’s important to have a basic understanding of the product, the service, and the value of the company in which you’re investing.
— Phil Town
Look for businesses that are simple. Phil Town explains that you should never, ever invest in something you don’t understand.
Be sure that you have a good sense of the history of the company, as well as any notable ups and downs the company has experienced so that you know what you’re buying into.
But there’s another key aspect to choosing your investment: global impact.
Good investing is about seeing a good return, but it goes beyond that to something deeper and more impactful.
When considering what business to invest your money into, think about how you want to support the world.
Phil explains that each time you invest in a company, you’re voting for the future. You’re placing a vote for the type of world you want to live in.
So, before you invest, ask yourself the following questions:
What do I love and want to support?
Does this business treat stake-holders well?
Does it treat its employees well?
How about the environment? The community?
Does this business have a strong moral agenda?
Choose a business that you can be proud of supporting.
When is the best time to invest?
When it’s about to start raining gold, don’t go out with a thimble, go out there with a pickup truck.
— Phil Town
When it comes down to deciding when to invest, there’s no right or wrong answer.
Really, the best time is now. The longer you delay, the more challenging it will be to commit to an investment.
But patience is also important.
The true art of savvy investing is in the balancing act between knowing when to buy and when to wait.
Once you’ve narrowed down the business you want to invest in, don’t be afraid to wait for the deal you want. Practice patience and think logically and clearly about your long-term investment goals.
Before investing, Phil suggests that you ask yourself the following three questions:
- Is this a business you understand?
- Is this a business that can protect itself from competing businesses?
- Is this a trustworthy business that is managed with integrity?
And as always: the number one rule of investing—don’t lose money.
As an investor, your focus has to stay in the future: both yours, and the future of the business you invest in.
Therefore, wait until you find the opportunity for an investment with the true potential to grow.
Do you understand which type of portfolio might a young investor who is not afraid of risk choice? Let us know in the comments below.