My Personal Formula For Success

What follows is information that I recently sent out to my exclusive client database, and I got such powerful feedback on it, I wanted to share it with my blog subscribers.  It’s hard to avoid the negativity in the world right now, with all the horrible media coverage, resports of huge layoffs, everyone around you complaining that things are slow .. bad .. depressing.   So where are you among all of this?   Do you have your head in the sand, afraid of what’s to come .. or are you trying to cut through all of the clutter and media-generated fear, looking for ideas on how YOU can benefit from the current situation?   I learned many years ago that it’s during times of significant turbulence and FEAR that the greatest opportunities present themselves.   You’ve heard all the cliches about how the best time to buy is when no one else is – that “when there’s blood in the streets is the time to invest”, and so on.  These thoughts may be cliche, but they are 100%  absolutely TRUE.   I think it’s so important for my clients to understand this that I’m going to share with you my own PERSONAL FORMULA I apply when it seems like the worst time to think of investing. This formula explains how I have been able to create significant wealth for myself, my family, as well as my investors over the last 10 years.  If YOU follow this Formula (which I have NEVER shared with anyone before until now), you’ll put yourself in a position where not only you’ll gain confidence to take action when you should, but also understand specifically WHAT actions to take.   What I’ll tell you right now is that if you DO NOT have a strategy for navigating 2009 and beyond, it may end up being the year that things really fell apart.   If you make the DECISION to develop a plan and execute that plan, 2009 may just be one of the greatest years you’ve ever had!   I know this sounds outrageous, but it’s true!   We are in the midst of the greatest redistribution of wealth anyone of us have ever seen, and will likely ever see again in our lives.   The only question is, which end of that redistribution are you going to be on — the giving end, or the receiving end?  I know where I want to be .. so let me share with you precisely how I do that!   What does this “redistribution of wealth” really mean?   It means that wealth is not DESTROYED, regardless of what the talking heads in the media like to say.   Money is not destroyed — it is merely transferred.   Money moves to where it’s attracted, to people who understand it and know how to bring more into their life.   In the current economy, while many people are losing massive amounts of wealth, there are an savvy investors on the OTHER side, building MASSIVE wealth when most people think it’s not possible. This idea is confusing to many, and I received the following email from one of my VIP clients: Thank you for your words of wisdom.  I have a question.  If you own shares at $50 and they reduce to $1, doesn’t that mean the “money disappeared” OR   “Money is not destroyed — it is merely transferred”.  If the latter is true, then who did it get transferred to? Just curious.  I always thought that Money is NOT like matter, where it simply changes form (transferred).  I thought it can actually disappear in certain circumstances.   Did I misunderstand something? Let’s look closer at this question.  If you bought a stock that went from $50 to $1, then YOU lost $49. But was there “wealth destroyed?”  Or was it merely transferred?  Well if you paid $50 for it, then whoever you bought it from on the other side of the trade received your $50.  You essentially transferred that wealth to the seller of the stock, taking on the risk yourself. So the wealth wasn’t destroyed, it was just transferred to someone else. Let’s look at the seller of your stock for $50.  Assume they take the $50 and buy 50 shares of a stock at $1 each.  It then goes down to $0.10 a share.  Has their wealth been destroyed? Nope, just transferred to whoever sold THEIR stock to them at a $1. The point here is that wealth moves around, but it is rarely destroyed.  There are some exceptions to this as the system isn’t perfectly air tight (for example, the forgiveness of debt or writing it off destroys money, as money is simply debt) but the concept is what’s important here. The big idea is that in most cases, wealth is NOT being eliminated or destroyed, but merely transferred to someone/something else. So, on to the main point here. MY PERSONAL FORMULA explains specifically how the wealthy are doing this, and ending up on the receiving end of the redistribution.

———————————————————— My Personal Wealth Creation Formula ———————————————————— 

Here it is — this is exactly the thinking that I apply when I’m making long-term investment decisions . . .                     (MF + ET + RM) x IE = Wealth Ok, I know this appears complicated at first.  But it’s not — let me explain it very quickly to you.   The Success Formula says that to succeed in today’s markets, you need 3 Primary Things to start with:   MF = Market Fundamentals You have to understand what the market is doing, both short-term and long-term.  You can’t rely on the media to understand what’s driving the market, you MUST know how to “peel the onion” and uncover the TRUTH of the market you’re looking at. ET = Economic Trends While understanding specific market fundamentals is important, so is having a grasp of the larger picture — what the macro trends are in the global economy, and how those trends affect your investment.  What do the implications of your currency have on your investing, for example? RM = Risk Mitigation This one might be the most important when things are turbulent as they are today.  You absolutely have to know how to mitigate your risk from a variety of angles so that no matter what happens, you don’t go bust.  When you understand how to mitigate your risks, you increase your chances of success and long-term wealth.   So those are the 3 things you absolutely must have when you’re investing in today’s markets.   Then, there is an all-important component that, if you don’t have it, will KILL you in your investing.  That’s why you add the first three components together, and then you MULTIPLY those by this critical piece .. . .   IE = Investing Expertise Even if you know everything about your market, you fully understand and identify the trends affecting your investments and you do everything you can do mitigate your risks, if you DON’T have this piece .. you’re dead in the water.   Investing Expertise is the collective of experience,  wisdom, knowledge and a proven track record.    Where most investors go wrong is they gather lots of intelligence, but they’ve never put the rubber to the road.  And if  you enter an investment and have no expertise, it’s going to be a tough road ahead!   Investing Expertise comes not only from real-life experience (which is the best place to get it), but also from educating yourself and modeling those or relying on those who have proven their own  Investing Expertise.  For this category, it’s all about walking the walk, having a mentor or guide to help you along the way, and generating real-life, “hands-on” experience in what you’re doing. SO HERE’S THE POINT:   IF you apply these 4 critical things, you will ultimately be able to create Wealth for yourself.   Have another look at my Personal Wealth Creation Formula:                                (MF + ET + RM) x IE = Wealth   Again, notice that if you have the first 3, but the 4th one (IE) is zero, then your results will be zero (because anything multiplied by zero is zero!)   This Formula is the result of all of my years of investing, modeling billionaires and millionaires  that I’ve worked with, as well as watching thousands of investors I’ve taught create a variety of results.   I have NEVER before shared this model, so I hope that it helps you understand what it REALLY takes to be successful in creating wealth!   I would encourage you to write out this Formula, and think carefully about what elements you need to focus on in order to make better decisions for yourself! Also, feel free to register on the blog here and post your thoughts on what I’ve just outlined.]]>