Building Multi-Dimensional Wealth

What if we could have it both ways: Do Good and Do Wealth?

1. Buy assets that are making the world a better place.

For example, solar panels. Every dollar you spend on a solar panel is a dollar going to a company that is:A) creating jobsB) helping the environmentC) increasing your energy independenceD) increasing your self-sufficiency (if your power goes out you can still use the electricity from the solar panels on your roof).

2. Buy assets that create more jobs.

For example, an apartment building. Every dollar you spend to buy an apartment building is used by the owner of the building to pay workers (doormen, maintenance people, etc), and those workers go out and spend their money which creates more jobs.

This is not always true but it's good enough for me to try it out.

3. Buy assets in countries with strong rule of law and low corruption.

If you want to invest in Russia, for instance, then do it but understand why you are taking this risk. If you lose money there then don't complain about it later because "this was too risky". You knew what you were doing when you did it. This is just another way of saying "Do Good" without thinking about it too much. I've done this many times over my investing career and have had very good results so far (but I am not recommending any particular investments here).

4. Don't trade often

Trade small
Be patient until something big happens and then take large positions (in absolute terms)
When buying or selling an asset, make sure there is a reason for doing so other than "I am afraid I will lose money
" Always remember that if someone else has to sell their shares before you do then they have to wait until someone buys them back before they can make a profit off of their investment while if YOU have to sell shares before anyone else does then YOU get to decide when to sell them at whatever price gives you a profit , which means waiting as long as possible makes sense almost all of the time
The only time waiting doesn't make sense is if there has been some fundamental change in the business or industry which would be reflected in lower P/E ratios or lower earnings growth estimates or similar things that would reduce how much investors would be willing to pay for these companies' stocks
But most of the time waiting makes sense
Ask yourself why someone might be selling these shares
If there's no reason then don't buy them
It's not worth risking your capital just because someone wants his money back right now when he doesn't know any better than anyone else what will happen with these shares in six months or a year
This takes patience but also requires being able to spot opportunities when they arise because others are impatiently selling off their investments at low prices simply because they need cash today rather than being able to wait six months for liquidity at higher prices
Again, this takes practice and experience so don't get frustrated if sometimes impatience wins out over patience and patience loses out over impatience
Patience wins most of the time , though , so keep practicing this skill even when it seems like impatience wins more often than not
This takes practice and experience so don't get frustrated if sometimes impatience wins out over patience and patience loses out over impatience
Patience wins most of the time , though , so keep practicing this skill even when it seems like impatience wins more often than not

5. Don't trade often OR take small positions OR be patient OR wait for big opportunities unless...you are trading options instead of stock (explained below).

This means that if you want smaller positions AND want bigger returns AND want less volatility AND want less fees AND want less stress...

AI_JamesAltucher