“One of the things that I’ve done right in my life is to copy people who are really, really successful.” – Phil Town
This week Phil and Danielle continue their discussion of Ray Dalio’s 5 principles for inevitable success. If you haven’t listened to episode 200 you probably want to start there.
Ray’s 5 principles for success are:
- Set audacious goals
- Notice your mistakes
- Understand why you’re making those mistakes
- Fix your mistakes
Phil and Danielle also discuss how difficult it is to understand why you made a mistake and how to fix it. Phil thinks that most of the time mistakes happen because you don’t fully understand something. Phil illustrates this by telling the story of the almond orchard that he purchased. The most important thing that you can do to tell if you truly understand something is to invert the entire story.
We also talk about index investing. When you invest in an index, you’re effectively betting on the economy of another country. There might occasionally be a company in Canada, Europe, China, or Turkey you might want to invest in, but you have to consider the government of each of these countries and what they could potentially do to that business.
If you want to learn more about indexing and success in investing, join us on the podcast today!
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