Tony Robbins Investment Advice – 10 Tips From This Best-Selling Author
Tony Robbins is a life, business, and financial strategist whose teachings have reached over 50 million Americans, including a number of legendary investors like Paul Tudor Jones. He’s also written several best-selling books on investing, including Money: Master the Game and Unshakeable.
So, wondering what pieces of advice Tony Robbins may offer when it comes to successful investing? Look no further! In this article, we’ll take a look at 10 top pieces of Tony Robbins’ investment advice that investors should know.
So without anything further, let’s dive in!
Tony Robbins Investment History
We’ve seen investment advice from many top investors, including Bill Gates, Cathie Wood, and Charlie Munger; but Tony Robbins isn’t your typical investment guru. Instead of spending his career on Wall Street, Robbins has worked as a motivational speaker and business coach since the mid-1980s. Robbins’ seminars are widely known for their energy and optimism and he has coached famous individuals such as Bill Clinton, Serena Williams, and Salesforce CEO Marc Benioff.
Although Robbins’ background isn’t in investment, he turned his attention to personal finance in two books: Money: Master the Game (2014) and Unshakeable (2017). He has also been named one of the “Top 50 Business Intellectuals” by Accenture and is worth an estimated $600 million.
Tony Robbins Investment Advice
As part of his recent drive to help Americans improve their personal finances, Robbins conducted a deep dive into the mechanics of investing. Here are 10 of Robbins’ top tips for how you can get the most out of your money.
The first tip Robbins has for investors is simple: “You have to diversify,” he says. “You can’t put all of [your money] in one place.”
Diversification doesn’t mean just avoiding individual stocks. Robbins suggests that investors look at other asset classes like bonds, real estate, and currencies. The advantage of diversifying widely is that when one part of the market drops, another usually rises – so your overall portfolio won’t suffer.
2. Start Investing Early
The key to developing wealth, says Robbins, is to start taking advantage of compound interest as early as possible. “You are not going to earn your way into a fortune,” he says. “You have to make money while you sleep.”
That’s why Robbins encourages investors to put money into the market early and often. The sooner you start investing, the more money you’ll have when it’s time to retire. Even small contributions to your investment account in your 20s can make a huge difference in your net worth at 65.
3. Buy Index Funds
Robbins knows that when he tells people to invest, most of them hear “buy stocks.” While stocks are just one part of a larger portfolio, he suggests sticking to index funds because they offer a few key advantages.
First, they help you diversify since index funds are investing your money across dozens or hundreds of stocks. Second, they take emotion and short-term trading out of investing. “Because humans aren’t actively managing index funds,” says Robbins, “they also aren’t actively making mistakes.”
4. Automate Your Investing
Robbins advises every investor to put their portfolio on autopilot. That means setting up your accounts so that money from your paycheck automatically flows into your investments each month. If you qualify for a retirement match from your employer, you should make sure you’re maxing it out every year.
“It’s hard to do,” says Robbins, “but if you start to automate it…you will have financial freedom that most people never have.”
5. Be Bullish
According to Robbins, the single best thing you can do as an investor is to actually invest. Too often, Robbins says, “people are on the sidelines because they hear all these stories” about market downturns.
Thinking about the long-term, though, Robbins says the only question that matter is, “Are we going to continue to grow as an economy?” To Robbins, the answer is a resounding yes – so it’s much better to start investing today than to wait for a perfect opportunity that may never arrive.
6. Invest for the Long Term
Robbins encourages investors to shy away from active trading. “You cannot really time the market,” he says. “It doesn’t work 99 percent of the time.”
Instead, Robbins encourages investors to focus on the long-term by holding index funds that track the markets ups and downs. When the market is down, the best course of action is to hold rather than sell.
7. Buy When the Market is Down
Although Robbins tells investors not to try to time the market, he does allow that corrections are a good time to jump in if you have uninvested money sitting around. “You want to take advantage of when [corrections] occur,” he says.
While many investors worry that a correction could turn into a bear market, Robbins points out that this fear is often overblown. “Eighty percent of corrections never turn into a bear market,” says Robbins. “Keep that in mind.”
8. Seek Expert Opinions
Another thing Robbins emphasizes to investors is the importance of considering views that contrast your own. “You cannot get bogged down by biases that get in the way of intelligent investment decisions,” he says.
The best way to avoid those biases is to seek advice from others. Bringing your investment thesis to others or sharing what’s in your portfolio is a chance to get feedback and shine a light on your blind spots. For new investors who need to build a portfolio from scratch, Robbins suggests working with a financial advisor.
9. Stay Humble
In Unshakeable, Robbins noted that we routinely overestimate our ability, knowledge, and the likelihood of success. Those overestimations can be dangerous when it comes to investing, and they can be hard to avoid if you’ve had some early successes.
So, Robbins reminds investors to stay humble. Investing is a decades-long endeavor and there’s always more to learn. It’s always okay to admit when you don’t know something and ask for help.
10. Remain Confident
Investing is a complex topic and investors are often shaken when the market takes a turn for the worse. But, Robbins says, it’s essential to have “a state of mind that will help you have unwavering confidence even amidst the storm.”
One of the best ways to boost your confidence is to gain knowledge about investing. The better you understand the market and its history, the more comfortable you’ll feel when your portfolio experiences volatility.
Conclusion: Tony Robbins Investment Advice
Tony Robbins has coached celebrities, business leaders, and individual Americans through life and business. In recent years, he’s turned his attention to helping Americans learn about personal finance and investing. With these 10 tips, you can build a long-term investment portfolio and navigate your way through the market’s ups and downs.