Alex Hormozi: Get RICH With These 24 Investing Rules

The video discusses 24 rules of investing, including the importance of having multiple options, understanding how to lose money, and getting a second opinion before making a decision.

This video by Alex Hormozi was published on Feb 1, 2023.
Video length: 09:29.

In this video, Alex Hormozi shares 24 rules of investing that are structured as "if-then" statements.

He explains that these principles can be used repeatedly to achieve successful outcomes over a long period of time. Some of the rules include buying only what you can afford to buy twice, getting a second opinion on deals that seem too good to be true, and not investing in something if you don't understand how you could lose money. Hormozi emphasizes the importance of having multiple options to choose from and not rushing into deals.

He also stresses the importance of communication and due diligence in making investment decisions.

• Investing principles are structured as "if-then" statements.
• Successful investors publish books about their principles.
• If you can't buy it twice, don't buy it once.
• Always have backup deals and options to choose from.
• Complete understanding of a deal reduces risk.

Get RICH With These 24 Investing Rules - YouTube

Section 1: General Investing Principles

• Investing principles are structured as "if-then" statements.
• Principles can be used repeatedly for successful outcomes.
• Successful investors publish books about their principles.
• Investing is a long-term strategy.
• Acquisition.com can help grow companies with $3-100 million in revenue.

Section 2: Rules for Making Investment Decisions

• If you can't buy it twice, don't buy it once.
• Buy insurance for specific concerns, such as running out of money.
• Get a second opinion on deals that seem too good to be true.
• Understand how you can lose money in a deal before investing.
• Don't rush into deals that feel rushed.

Section 3: Importance of Having Multiple Options

• Always have backup deals and options to choose from.
• Don't artificially make a deal look better because it's the only option.
• Investing is about minimizing the unknown or unknowable.
• Investing is different from trading.
• Partnerships require agreement before moving forward.

Get RICH With These 24 Investing Rules - YouTube

Section 4: Decision-Making Variables

• If it's too complicated, pass.
• Complete understanding of a deal reduces risk.
• Slow down when feeling FOMO (fear of missing out).
• No diligence, no deal.
• No model, no deal.
• Communication is crucial for successful investing.

Investing Rules by Alex Hormozi

• Only invest if it builds your reputation, if it doesn't, don't do it.
• Always consider track record and past performance over charisma.
• Stick to what you're good at and do more of it.
• Always under borrow to avoid introducing risk into the equation.
• Ask stupid questions, define terms, and draw pictures to fully understand the investment.
• Always play the fool and don't pretend to know more than you do.
• Only invest in deals where you are part of the General Partner (GP).
• Bad partners can ruin a deal, so be careful when choosing who to invest with.
• Contracts are essential to set clear expectations and avoid misunderstandings.
• Live as though the contract doesn't exist, but negotiate it as though it's the only thing that matters.

Investing with Reputation in Mind

• Investing should always be done with reputation in mind.
• Reputation is the one thing that you take with you forever, so it's important to protect it.
• Investing in something that costs peace of mind is not worth it.
• Neutral moves don't build your reputation, so avoid them.
• Compounding returns come from investing in your personal brand and reputation.
• Investing in something that builds your reputation is always a good idea.

Watch the video on YouTube:
Get RICH With These 24 Investing Rules - YouTube