The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
The Kickass Entrepreneur
Subscribe
The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
  • All Blogs
  • Create Wealth (Investing)
  • Entrepreneur Interviews

An Interview With David Stein, Author of Money For the Rest of Us, 10 Questions to Master Successful Investing

  • December 8, 2021
  • 17.1K views
  • 6 minute read
  • Jeff Wiener
David Stein Money for the Rest of Us
Share
Tweet
Share

I’ve been listening to David Stein’s Money for the Rest of Us podcast for the last 18-months.  In fact, not only have I not missed more than a handful of podcasts over the last almost two years, but, I am also a premium subscriber and pay for his extra content.

Needless to say, I am a fan of David’s work.

David was Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group, LLC, a $70 billion institutional investment advisory firm, where he co-headed the 21-person research group. 

An Interview With David Stein, Author of Money For the Rest of Us

David now helps individuals become more confident investors via audio, video, and books.  His show now has 250 episodes and over 12 million downloads.

Money for the Rest of Us 10 Questions to Master Successful InvestingSo, when I heard that David’s launched a new book, Money for the Rest of Us, 10 Questions to Master Successful Investing, I thought it would be a perfect opportunity to not only get my hands on a copy, which I have just ordered (and I will provide a review in a few weeks) but, to also ask David to answer a few questions for The Kickass Entrepreneur readers.  

On that note, I’ve sent David five questions, and you can read his responses below.

What is the biggest mistake you see most investors make?

The biggest investment mistake investors make is not truly understanding what they are investing in. Investing in a new opportunity can often be intoxicating as we anticipate the future profits that could be earned. As a result, in their excitement, some investors don’t do their homework to understand what has to happen for an investment to be successful. They don’t consider the specific drivers that influence the return of investments. Examples of return drivers include:

  • Cash flow in the form of dividends, interest, or rents.
  • How that cash flow is expected to grow. 
  • How investors are valuing those cash flows.

When investors pay a premium for cash flow, such as a very high price-to-earnings ratio, then subsequent returns will probably be lower.  When investors are unwilling to pay very much for cash flow, then that often leads to higher returns as investments surprise to the upside. 

As investors, before we invest we need to be able to explain in simple terms what an investment is, including how it will generate a return, what are the fees, how liquid it is, and what needs to happen for the investment to be successful.

What do you think about the future of infrastructure as an investment?

Jeff’s note – I asked David this question because I am a big fan of investing in infrastructure and real assets. You can read more about that here: What are Real Assets, and How to Diversify Your Wealth by Investing in Them?

David Stein’s Response:  Clearly aging infrastructure such as roads and bridges in the U.S., Canada, and other countries require investment to maintain and upgrade these critical components that ensure the private sector is productive in producing and delivering goods and services. Most of this “investment” comes from the public sector and is funded through taxes. There are also infrastructure projects that are financed by the private sector which then generate a return for investors in the form of tolls and users fees. These public-private infrastructure projects tend to be lower returning because they are highly capital intensive, require constant ongoing maintenance and there is pushback from households, businesses, and politicians regarding toll amounts.  

In addition, there are not that many pure-play infrastructure companies so ETFs that focus on infrastructure tend to include a wide scope of industries such as utilities, railroads, forest product companies, etc.

Jeff’s Note:  If you read the article I wrote on investing in real assets, you will clearly see that I take a slightly different approach to David regarding investing in real assets. Real assets, by definition, includes the following types of investments:

  • Real estate
  • Airports
  • Railroads
  • Farmland
  • Energy pipelines
  • Windmills

And I like real assets because they have the following benefits:

  • You can earn an excellent yield on your cash
  • Real assets are typically contracted for longer periods of time
  • They have a stream of cash flow that is inflation protected
  • Have lower levels of volatility because they are privately owned
  • Traditionally have had excellent returns 

How do you, David Stein, recession-proof your portfolio?

Investors whose lifestyles will be harmed by stocks falling 40% to 60% during a recession should be more concerned about recession-proofing their portfolios. That means having a lower allocation to stocks. I recession-proof my portfolio by having multiple return drivers including exposure to over a dozen asset classes, both in the public markets as well as private markets. My portfolio is also conservatively invested because my investment objective is to preserve capital rather than growth. 

Most investors are still saving for retirement and need to be less concerned about recession-proofing their portfolios.

How do you suggest that a small business owner, who has a significant amount of their wealth tied up in their business, invest their profits, and how would you say that this type of investor is different from the average non-business owner investor?

A number of years ago I released a podcast episode titled Are You A Stock Or A Bond? In the episode, I shared how we should consider our human capital when making investment decisions. Human capital represents the value in today’s dollars of our future income stream from work. Some individuals’ human capital is more bond-like in that their income doesn’t vary much during economic downturns, and they are unlikely to get fired during a recession, such as a tenured professor. Other individuals’ human capital is more stock-like because their employment earnings are highly sensitive to how the economy is performing and their professional income might decline during a recession.

Individuals whose human capital is more bond-like can afford to take more investing risk by allocating a higher percentage of their portfolio to the stock market. Whereas, individuals who have more stock-like human capital should have a lower allocation to stocks.

These same concepts apply to small business owners, but it is difficult to make generalizations because of the wide variety and performance of these businesses. If business income is fairly predictable and not overly sensitive to economic fluctuations then the business owner can afford to take more investment risk. Yet, even that allocation decision can vary depending on the owner’s life stage such as how close are they to retirement. 

Jeff’s note – I wrote a book specifically to address how entrepreneurs should invest, and how they should invest their business’s profits. You can download a free copy from my website.  The Kickass Entrepreneur’s Guide to Investing.

Tell us about your new book. What is the basic premise, and who is the book’s ideal audience?

My new book is Money for the Rest of Us: 10 Questions to Master Successful Investing. This is a book on how to invest geared toward individuals that want to grow and protect their wealth like a professional portfolio manager. Portfolio managers have an investment discipline that helps them decide how to allocate their assets under management to different investment opportunities.

As individual investors, we have the same task as professional portfolio managers: figuring out where to invest. My book details ten questions that we should ask before undertaking a new investment. This checklist can help us decide where and how much to invest while giving us confidence and peace of mind while others might be panicking during the latest market sell-off.

Here’s a video of David Stein speaking about investing, and more specifically, the title is: Investing won’t make you rich. It’s a short video, and one worth watching.

Jeff’s note – I wrote a blog post that you might be interested in reading:  How to Become a Decamillionaire, Grow your Net Worth to $10 Million, and Join the 1% Club

Good luck with your wealth-creating journey.

Related Posts:

  • From ‘Master Identity Thief’ to Entrepreneur: An Interview With Dartanyon…
  • 5 Bartering Skills You Should Master To Save Money
  • From Missing Payroll to a Successful Exit and Now 17 Time Angel Investor.…
  • How Do You Make Money Investing in Apartment Buildings?
  • Best Stock Research Tools to Begin Investing and Saving Your Money

If you enjoyed this post, you might also enjoy this one: How Much Money Do You Need To Never Have To Work Again? Let’s Do The Math.

And this one: How Do You Know When It’s Time to Sell Your Business? It’s Not All About the Money.

You should also consider subscribing to my blog. I publish one article a week on small business and wealth creation.  You can subscribe here.

Also, I published a book during the summer of 2018, “The Kickass Entrepreneur’s Guide to Investing, Three Simple Steps to Create Massive Wealth with Your Business’s Profits.” It was number 1 on Amazon in both the business and non-fiction sections. You can get a free copy here.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

Related Posts:

  • From ‘Master Identity Thief’ to Entrepreneur: An Interview With Dartanyon…
  • 5 Bartering Skills You Should Master To Save Money
  • From Missing Payroll to a Successful Exit and Now 17 Time Angel Investor.…
  • How Do You Make Money Investing in Apartment Buildings?
  • Best Stock Research Tools to Begin Investing and Saving Your Money
  • Why You Need to Master the Art of Pricing 
Share
Tweet
Share
Jeff Wiener

Jeff sold his company to private equity in 2017 and is now semi-retired. Jeff spends time traveling and with his family, writing this blog, managing his real estate portfolio of apartment buildings,  overseeing his investment portfolio, investigating angel investments, coaching other entrepreneurs, and managing his private equity holdings. Jeff is currently on a couple of boards, one for profit, the other not for profit, and now helps entrepreneurs grow their business, profits, and ultimately, create wealth.

Previous Article
The Top 1% of Wealth Canada
  • Create Wealth (Investing)

The Top 1% of Wealth Amounts for Canadians in 2022

  • December 8, 2021
  • Jeff Wiener
View Post
Next Article
an image of a man sitting on gold coins
  • All Blogs

5 Ways Your Business Can Be Defrauded

  • December 8, 2021
  • Rene
View Post
You May Also Like
Lawyer and accountant small business
View Post
  • All Blogs

The 8 Reasons Your SME Might Need a Lawyer

  • February 24, 2023
  • Meg Rivera
online casino
View Post
  • All Blogs

What are online games doing to standout from competitors?

  • February 21, 2023
  • Meg Rivera
deck of folders with insurance word on it
View Post
  • Create Wealth (Investing)

Tips for choosing the right auto insurance coverage

  • February 17, 2023
  • Meg Rivera
ceo
View Post
  • Entrepreneur Interviews

Meet The Visionaries Behind The Biggest Brands And Companies At CEO Worldwide

  • February 10, 2023
  • Frances
Enjoying Retirement
View Post
  • All Blogs

Top 10 Best Places to Spend Your Summer Workstation

  • February 9, 2023
  • Meg Rivera
Rising gold prices concept. Investment in precious metals in the stock market
View Post
  • Create Wealth (Investing)

The Pros And Cons Of Investing In Precious Metals

  • February 9, 2023
  • Meg Rivera
Investing in Multifamily Properties
View Post
  • All Blogs

How to Choose the Right Neighborhood for Your Family: A Guide to Making the Perfect Choice

  • February 7, 2023
  • Meg Rivera
home
View Post
  • All Blogs

6 Ways To Speed Up Your Home Remodel

  • January 31, 2023
  • Frances

Join 6,472 Entrepreneurs That Get My Business Building and Wealth Creation Posts by Email

I can teach you how to build a successful, profitable business, and turn that into millions in personal wealth.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

We won’t send you spam. Unsubscribe at any time.

Recent Posts
  • Logistics Software 1
    Accelerating Your Business Growth: The Role of Logistics Software Development
    • March 20, 2023
  • crude oil 2
    Energy Futures: What to expect in 2023
    • March 17, 2023
  • man writing on board 3
    What is the Difference: Lead Scoring vs. Nurturing
    • March 17, 2023
  • group session 4
    Managing Wealth: 4 Reasons You Need to Opt for a Money Management Company
    • March 17, 2023
  • BUSINESS 5
    Planning to Start a New Business Abroad? These 11 Tips Might Help!
    • March 16, 2023
Featured Posts
  • Become a Decamillionaire
    How to Become a Decamillionaire, Grow your Net Worth to $10 Million, and Join the 1% Club
  • how to become wealthy
    The Entrepreneur’s Secret to How to Become Wealthy and Build a Personal Fortune
  • Most Profitable Small Businesses
    27 of the Most Profitable Small Businesses to Open in 2023
Categories
  • All Blogs (1,034)
  • Business (220)
  • Canadian Financial Products (4)
  • Create Wealth (Investing) (131)
  • Entrepreneur Interviews (25)
  • Featured Post for Main Menu (4)
  • Featured Top Posts (23)
  • Finance (55)
  • Financial and Investment Calculators and Economic Data (114)
  • Fitness (5)
  • Growing Profits (72)
  • Growing Revenues (115)
  • Growing Revenues (70)
  • Marketing (139)
  • Millionaire and Business owner interviews (3)
  • Positive State of Mind (68)
  • Real Estate Investing (17)
  • Retirement (13)
  • Reviews (12)
  • Sales (15)
  • Sell Me This Pen (8)
  • Selling your Business (13)
  • Starting a Business (1)
  • Startup Ideas (14)
  • Technology (112)
  • Top Products (4)
  • Uncategorized (54)
Follow us
Author
Jeff Wiener
Jeff sold his company to private equity in 2017 and is now semi-retired. Jeff spends time…

    CHECK OUT MY BLOG, AND SUBSCRIBE

    about
    The Kickass Entrepreneur

    Expand Your Business, Improve Profits, Create Wealth

    Expand your business, improve your profits, and create wealth. Each one of the three can be elusive goals. Follow the right steps, and you, too, can create financial independence. It is possible … you just have to take the right steps.
    NAVIGATION
    • About
    • Blog
      • All Blogs
      • Create Wealth (Investing)
      • Entrepreneur Interviews
      • Featured Top Posts
      • Growing Profits
      • Growing Revenues
      • Marketing
      • Positive State of Mind
      • Real Estate Investing
      • Retirement
      • Sales
      • Selling your Business
    • Book
    • Courses
    • Podcast
    • Resources
    • Contact
    TAGS
    apartment BATNA Business business failure business growth business sale Capitalization Rate CAP Rate cash cash flow Creating Wealth Discipline entrepreneur entrepreneurship excel extra cash Featured goal setting Growing Business investing investment real estate M&A marketing Marketing KPIs Mergers and Acquisitions | M&A | Entrepreneur Blog Millionaire millionaire next door mistakes MUR Peter Principle Profit profitability real estate retirement revenue Revenues sales sales management Semi-Retirement Blog | Entrepreneur Blog | Small Business Blog small business Stagnant stocks success Thomas Stanley wealth
    RECENT ARTICLES
    • crude oil
      Energy Futures: What to expect in 2023
      • March 17, 2023
    • deck of folders with insurance word on it
      Tips for choosing the right auto insurance coverage
      • February 17, 2023
    • holding laptop
      Tackling pros and cons of virtual reality tours when buying and selling houses
      • February 9, 2023
    • Rising gold prices concept. Investment in precious metals in the stock market
      The Pros And Cons Of Investing In Precious Metals
      • February 9, 2023
    • man looking at his tablet
      These Are The 7 Mistakes Six-Figure Earners Make
      • January 7, 2023
    • starting your own business
      6 Must-Know Tips For Starting Your Own Business
      • January 1, 2023
    The Kickass Entrepreneur
    • Coaching
    • Book
    • Blog
    • Contact
    • Privacy Policy
    • Terms
    • Disclaimer
    • Facebook
    • LinkedIn

    Input your search keywords and press Enter.