Top investors treat investing as risk management, not just returns. They use a wealth map that accounts for economic, market, currency, and empire cycles to shift between offense and defense. The strategy adjusts for specific circumstances rather than following one formula.
You are in the risk management business. And if you look at how the top, top investors do it, they all know this. You know, you have to have a vision. You have to figure out, here, I'm here now I got to go there. And then you have to figure out, okay, how, how am I going to do that? Let's break down the steps. But in those steps, we can all do the math. We could do the properties, we could do all that stuff.
Here on our show, we talk about our failures a lot because we want people to understand, hey, you can do this too. Get up and keep going. Don't give up. So if you were to give one piece of advice to people who are still on their journey, what's that kind of one takeaway that you would. You would say to them, you know.
As an investor, you're essentially in the risk management business. Most people don't know that. They think that they're in the investing business and they're just inve. Oh, I'm just going to invest. You are in the risk management business. And if you look at how the top top investors do it, they all know this. They all know that they're in the risk management business, and they understand. You know, I call them wealth maps. Okay, so wealth maps is like, it's frameworks that you can use to kind of like, see where you're at and where you, if you need to make adjustments to go where you want to go. So we talked about, you know, you have to have a vision. You have to figure out, here, I'm here, now I got to go there. And then you have to figure out, okay, how, how am I going to do that? Let's break down the steps. But in those steps, we can all do the math. We could do the properties, we could do all that stuff. There's an environment which we operate in, and it's like, you know, taking, you know, trying to get from New York to California, Los Angeles, let's just say. And the map would determine on how are you going to get there? Well, surely there's a different aviation map than a railway map, than a road map. And then again, can you make adjustments with your map like a ways? Right. Waze tells you, hey, there's an accident up front. There's traffic, there's a traffic jam. So we'll take a different route, but we'll still get to the same destination. Or we just have to pull over and pause our journey or, you know, make adjustments. So the wealth maps that I talk about, you know, is a lot of like cyclical stuff. You know, you have empire cycles, you have currency cycles, you have economic cycles, you have market cycles. And these are things that you have to be. These are maps that you should. That you should take a look at. And like I said, as an investor, you're essentially in the risk management business. So, yes, you have that roadmap, you have your blueprint, you know how many houses you want or investments or passive investments. But you also have to be aware of these things. You know, if you, if you went all in In January of 2008, you had the wrong map.
That's right.
You didn't have the right map, you know, there, because all the professionals at that stage were selling, they went into capital preservation. So you got to have the right maps, that stuff. Because, you know, again, if you went all in in 2012, how would you look like now? The bottom of the real estate cycle. Right. Remember when everybody was telling us real estate was dead? I love that. The same that they said tech was dead right in. In 2001 and then Amazon and Google didn't get the memo. So. Yeah. So you th. Those maps are important for risk management. And just know as an investor that risk management is the big part of this because. Yeah, yeah. Are there going to be great investments? There are so many. They're out there. They're out there in any environment, by the way, any climate that you're in, there are great operators and great people in any environment. But just have the right wealth map too, and understand where you have to take a little bit of your foot off the gas on offense and play a little bit more defense. And sometimes you play more offense than you play defense.
Yes, Yes. I love that.
Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
