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Some people are good, some people are great, and some are legends.
Tom Basso is an investing legend.
He was a “26 year overnight success,” and the subject of an investing classic, The New Market Wizards. And I had the opportunity to have a long, detailed chat with Tom.
To be sure that we pack in all of the great wisdom that Tom shares, our discussion will spread out over the next two episodes.
In Part 1, we discuss Tom’s career and how he came to find his investing strategy. We talk in a bit of detail about trend following as an investment strategy, and how easy investing can be for you.
I know that you will get a ton out of our discussion!
In This Podcast, You’ll Learn:
- How you can invest well on 5 minutes a day.
- Why you should not passively let your portfolio go.
- The most powerful force in the universe.
- Why you should make some sacrifices now.
- Why you need to take advantage of tax-advantaged and retirement accounts.
- How Tom found his investing strategy.
- Why you need to treat your body like your portfolio.
- How to end up catching every major wave of the market.
- Why money management is much more important than when to buy and sell.
- And much more!
Definition of Wealth:
- Wealth is the amount of net worth and capabilities you have to do the things that you want to do. It isn’t just monetary; it is also building capability. Take all of your skills, resources, and capital, that is your net wealth. Net worth is the number on your balance sheet, but that is not your net wealth.
Connect with Tom:
- Tom’s book on Amazon: Panic-Proof Investing
Tom shares so much great insight. If you take advice from anybody, it should be someone like him. He has decades of experience, and does a great job relaying the importance of risk management and psychology in investing.
He talks about trying to “get better and better at something you’ll never become perfect at.” Investing is a never-ending challenge. But it can be learned, and it can be very easy to have a long-term strategy. And trend following is a great option for the long-term investor.
Tom also talks about the sacrifice necessary to succeed. Do you want to spend a night at the bar, or learning something that will set you up for the rest of your life? I personally spent much of one year of my life passing up on regular night’s out and good fun to create and launch my own automated trading business. Now, I have some investing strategies and wisdom that will set me up for the rest of my life. Was it hard to do? Sure. Was it worth it? Duh!
Action Items:
- If you’re interested in learning more about the stock market and investing, check out Investing 101 – a course to teach you the basics of investing so that you can build massive wealth.
- Sacrifice. Quit wasting time doing something that isn’t a benefit to you in any way, and spend that time doing something that will set you up for the rest of your life. Do it now, and you won’t regret it.
- As Tom says, you should take your physical health as seriously your financial health. Fitness is a huge part of my life, and allows me to focus on my financial health. I agree strongly that the two are correlated. If you don’t already, make your physical health paramount, and you’ll notice it with your finances.
