In this section, you’ll discover a game-changing approach to investing by understanding your investor DNA. Many people invest in things they don’t fully understand, influenced by friends or gurus. This can lead to spreading yourself too thin and missing out on better opportunities.
You’ll learn why traditional risk profiles and assessments might not be serving your best interests. These assessments often separate you from your money and push you into mediocre investments. Instead, successful investors focus on mitigating risk and achieving sustainable returns. Diversification isn’t just about having many stocks; it involves spreading investments across unrelated asset classes to smooth out turbulent times and protect against downside risks.
This section of the course introduces better questions to determine if an investment aligns with your investor DNA. By scoring these questions, you’ll understand how well an investment fits you. The course emphasizes that risk is not just in the investment but in the investor’s relationship to it. Factors like exit strategies, proper hiring, and community learning can make a difference in investment outcomes.
The section provides practical tools and questions to help you assess investments. You’ll learn to score investments based on their alignment with your investor DNA. Scores over 100 indicate low risk, while scores under 70 indicate higher risk. This method helps you make informed decisions and do due diligence before moving forward with an investment.
This section aims to fill the gap left in the first version of the book by offering practical guidance, not just philosophical ideas. By the end, you’ll have a clear process for evaluating investments and becoming a better investor.