Key Takeaways
The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.
- The goal should never be about acquiring money, rather, the focus should be on knowing exactly how much it will take to live your ideal life, whatever that may be. Purpose of investing is to be able to do the things you want to do but not at the expense of stress, strains and discomfort that goes along with bad market environments. Clarity is power
- Concrete goals are vital in order to determine your status and what it will take for you to reach Absolute Financial Freedom
- Small changes can have huge results - increase your savings rate as much as you can, realize the amazing power of compounding, reduce fees
- Can demand a higher salary whenever you become more valuable - to your customers, to your company, etc. Invest in yourself and learn to work harder on yourself than you do on your job.
- Asset allocation is the most important investment decision of your lifetime, more important than any single investment you're going to make. However, diversification, reducing taxes and fees are absolutely vital to grow your savings as much as possible and reach your goals
- Dollar cost averaging allows you to automate your investments and take your emotions out of the equation. Asset allocation is the theory and dollar cost averaging is how you execute it
- At the end of the day, the best investment you can make is one in yourself and your lifestyle
- Rebalancing your portfolio is vital and should be done at regular intervals. Should rebalance within markets and asset classes and should be done once or twice per year
- Dalio's All Weather portfolio offers amazing diversification and protection in any economic environment
- The interviews with some of the best investors is extremely interesting
- Build your wealth so that one day you can give it away
What I got out of it
- This is one of those books where if you actually heed and implement the advice, it can have life altering effects. I would highly recommend buying this book and taking advantage of his money management website in order to gain clarity into actually how much you need to save and earn in order to live your ideal life. It is often much less than you might think but being patient, saving consistently and taking advantage of weak markets is emotionally difficult and where many of us goof up with devastating effects. Amazing read and would recommend to anyone - the younger the better but it is never too late to start handling your money properly.