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Greycourt & Co. Founder Gregory Curtis on how to not only grow your wealth but minimize the risks of losing your money.
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A sluggish economy it is hard to make money but the wealthy may saves even -- to keep fit well here to tell us how to stay rich and then keep your billions org or -- thousands gras right not just millions -- Greg Curtis -- -- -- great court and company chairman and author of the book creative capital managing private wealth.
In a complex world of what you think about our viewers as they are very wealthy or they want to be.
And we want to help them grow that wealth but the most importantly keep that.
What let's start off right off the -- is is the number one thing people should be doing once they've made their money to keep it is there a mistake that they make.
Where they just let it flow away.
-- I think -- as and the mistake people make is that they they forget the risk is a two edged sword -- you can't get.
Rich without taking risk but you can't stay rich if you're gonna keep taking risk that eventually it's going to come back and bite you.
-- think Britain.
Graduates is us -- this you say it's imperative that individuals.
To -- their wealth as he put it into two main buckets why is that -- Bob you know what's important what are they and why is that important.
Sure.
Well let let me just let's start by saying this Ashley.
If you -- -- started a company and you spent 2030 years.
You know working.
Eighteen hour day seven day weeks and now you've got all your money in this one stock that that's not just -- -- to you that's like.
It's your baby it's your members a member of your family.
-- it's really really hard to.
Say well I and I -- is a stupid investment strategy I should just diversify.
And yet that really is the truth so the first thing you have to do is -- understand that complex relationship people have a their companies.
And talk to them about the upside of that the downside of that it's a balancing act.
You can you can keep some of that stock but you gotta have a diversified portfolio and it humanly possible.
Possible you -- Live on that diversified portfolio.
What the stock do what it's gonna do but don't live and die.
-- a simple stuff I.
Your company struck it was a huge mistake people made in the dot com era.
Let's put the buckets backed up because -- split them into two and one is the spending bucket and the other is the appreciation bucket.
Written on the spending bucket.
Dividend returning stocks bonds.
And then cash and then in the appreciation -- stock and -- the ownership in the stake in the company that we just talked about but let's get to the bonds and cash how much and then dividend yielding stocks.
Against -- here.
Well I think it's a great time to buy dividend yielding stocks the old sort of blue chips the old Kodak's if you will and before that -- went sour.
They're selling at great prices they're great companies.
That great balance sheets and I think they're just really really well positioned you wanna be overweight there.
Great whatever the end riskiest sectors if you'd like -- -- wealthy invest up.
Well I think small cap stocks.
Are very vulnerable and I think they're overpriced it's always a tough environment for them.
Policy errors in Europe for over here can really make things go go badly.
Once you've achieved wealth you've really got to focus on risk control you've really got to focus on that downside where where is it.
Don't be overweight and in areas where there's really significant risk.
You mentioned the downside do you ever.
-- -- clients that the entrepreneur is to cash out quickly to avoid a crash.
Well.
I sometimes do especially back during the dot com boom.
It was obvious that a lot of those stocks or retreating on you know.
The ease of eyeballs -- and and I remember those days the FB so but you know it's hard it's hard for those people who do it there so attached to those stocks that -- feeling really say you know higher -- partly.
At can I guess -- think it's gonna go higher.
But let's use for example mark Pincus of founder of -- got in in all of this.
He did something interesting he sold a big chunk of the stock -- has already went public.
That was a very gutsy move last I checked -- chairman we could put it up single was trading below its IPO price.
And and you look at that you -- And everybody was talking -- that company and may -- he was one of the smarter ones who just didn't get too greedy.
We've heard legions of CEOs say why didn't I sell -- it was at such and such a price because I kept thinking it would go higher got to take that emotion out of it correct.
Yeah you've got to take that a motion out of it and he -- it was a gutsy move because you know a lot of people could have said he doesn't believe in his own stock.
But he you know he did the right thing while it is below the IPO price IPO price was ten dollars and it's at 919 so at the moment he looks certainly smarter but in the end the number one thing people should do what.
To hold on to their wealth.
But keep your eye on risk diversify as much as you can possibly bring yourself to do it.
Very good keep your eye -- -- cut its.
Chairman and a founder of great -- -- avid Pittsburgh today -- great thank you very much.
