Stop Making Stupid Investments

In a world filled with bad investments, this guide shows you exactly how to keep your money safe without missing out on great investment opportunities In Stop Making Stupid Investments: 7 Rules to Avoid the Hype and Build Real Wealth, experienced real estate and finance leader David Leiter delivers a practical, common-sense strategy guide for building wealth through intelligent investing. Leiter explains the 7 rules that helped guide him as he built a large and resilient portfolio over 30 years. He demystifies complicated financial concepts and explores powerful investing techniques in a straightforward way without the usual jargon. This book is a simple set of easy-to-follow rules for everyday investors who want to effectively manage risk, avoid scams and fraud, and access impressive returns without missing out on great opportunities when they come along. It’s filled with timeless principles that apply everywhere, to everyone, in every kind of market. You’ll find: Grounded advice, based on the author’s decades-long experience in finance and real estate, on how to spot a bad investment How to use simple, proven investment strategies that are easy to understand to generate consistent returns while limiting your exposure to risk Ways to use contrarian thinking to get ahead of trends and improve the performance of your portfolio Perfect for everyday investors and working professionals hoping to build a financially secure retirement, Stop Making Stupid Investments is an intuitive, accessible, and insightful manual for everyone who wants to protect and grow their money at the same time.

FOREWORD xi PREFACE xv INTRODUCTION xxi PART I THE GROUNDWORK 1 CHAPTER 1 WORKING ON WALL STREET, AND THE 5 SECRETS (TRUTHS) I LEARNED 3 CHAPTER 2 THE MAGIC MONEY MILL (IS IT A SCAM, OR JUST A BAD INVESTMENT?) 11 CHAPTER 3 THE 5 LEVELS OF INVESTOR 25 PART II THE 7 RULES TO STOP MAKING STUPID INVESTMENTS 39 RULE 1 AVOID BIG LOSSES 41 RULE 2 THINK LIKE A CONTRARIAN 49 RULE 3 DON'T INVEST WITH SOMEONE JUST BECAUSE YOU LIKE THEM 59 RULE 4 DO NOT INVEST IN PRIVATE REAL ESTATE OR PRIVATE EQUITY DEALS THAT DO NOT HAVE AUDITS AND A SUBSTANTIAL TRACK RECORD OF THE MANAGER 71 RULE 5 THE STOCK IS NOT THE COMPANY, AND THE COMPANY IS NOT THE STOCK (UNDERSTAND HOW MARKETS WORK) 79 RULE 6 EMOTIONS ARE THE ENEMY OF INVESTING 93 RULE 7 DON'T BUY TRADING "SYSTEMS," PROGRAMS BASED ON TECHNICAL ANALYSIS, OR "BLACK BOX"-TYPE TRADING "BOTS" 101 BONUS 1 MATH IS THE ENEMY OF BULLSHIT 107 BONUS 2 I'VE GOT 99 PROBLEMS, BUT CRYPTO AIN'T ONE 113 PART III HOW TO PICK YOUR OWN INVESTMENTS (WHICH YOU PROBABLY SHOULDN'T) 119 CHAPTER 4 DON'T INTERRUPT COMPOUNDING 121 CHAPTER 5 THE THREE TYPES OF VALUE INVESTING 131 CHAPTER 6 THE FRAMEWORK FOR INVESTING (THE 4 STEPS TO MAKING AN INVESTMENT DECISION) 149 CHAPTER 7 WHEN DID EVERYTHING BECOME ABOUT MONEY? (SOLVING THE FEAR, GREED, AND ENVY DISEASE) 175 NOTES 195 ACKNOWLEDGMENTS 199 WHAT OTHERS ARE SAYING ABOUT DAVID AND THE ULTIMATE INVESTOR TRAININGS 201 ABOUT THE AUTHOR 207 INDEX 209