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Pepper International CEO Carol Pepper on how to utilize the strategies of billionaire investors.
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I love this how can you invest like the billionaire without putting millions on the line.
Carol -- the founder and CEO -- for international she's here to teach -- what her ultra high net worth clients already know and of course.
It's all free we don't charge you.
Carroll -- to have you here for we wanted to help people invest the way billionaires do.
Right and what it just began by asking what is the number one thing right now that your high net worth clients are doing with their money.
The number I think they're doing right now is getting back into the stock market they really do believe that this is the right time to go back and we've had a really tough period.
And there's been a lot of the being afraid -- now there's a sense of confidence particularly in the US equity markets and they are coming back into them interest -- even as we -- fumble a nice seven month run for stocks that they are ready to get back up by remember art you know our families are investing for multiple generations and they are looking at long term and so long term the fundamentals are very good.
Without some strong -- lately and long term I think -- on a good path just say you know folks Carol.
Invest for high net worth clients and their families up hundreds and hundreds of millions sometimes billions of dollars.
So let's get to the four steps steps that you have noticed and it's worked for you because you keep getting more clients to -- something right -- The forced steps to investing like the billionaire for our bargain investors who -- watching Craig's -- well I mean the most important thing to realize is that all of us deserve to have the same investment.
Philosophy and principles as wealthy individuals all of us can do the same thing that they content.
So the first thing that we need to understand is that you need to envelop a proper investment philosophy.
You need to understand what is -- you can do when you're gonna do it and to stick to a disciplined approach to investing that's number one.
Number two in -- adopting universal keys to good investing OK great like what OK well there's really three good keys university's -- casting the first key.
Goes for our friend your friend mine -- Buffett who we all -- And that is to have conviction about love them by the way without -- -- actually -- I thought well certainly as an investor he has been very successful and want.
Number one thing he always talks that is conviction believe in what you're investing and so we should all have conviction and number two.
Understanding understand what you're investing in really know and believe and understand what you're doing and then three.
But just come out of all the scandals have been facing lately and you just for talked -- MF global recently transparency make sure everything that you invest and has transparency and you can understand what's happening to your investment act and an and it's called when you get that the prospectus for the company and their annual shareholder letter.
Start from the last page should go for over that as they try and -- all the bad stuff in the back our country right pay attention to cash and liquidity that's right -- and what I'm always paying attention to a cash I have great well meaning wealthy individuals always keep at least twenty or 30% in cash and very very liquid investments.
They are not putting a 100% of their money into this market so although they like the market.
You still have to make sure you have enough liquidity to -- And pay your expenses and do what you need to do 2800%.
In cash she says that the billionaires -- and your number four is diversify OK mean I and I into what what what what what okay.
Meaning that really you want to make sure that you have a mix of stocks bonds cash.
And if you can afford it and hear more wealthy they private equity hedge funds venture capital all kinds of things if I wanna -- to mimic investments obviously the high net worth people can get in on certain things we can't -- -- get -- I don't know three things three investment opportunities.
That our viewers can use to mimic the idea to play the same way they -- that's right.
I'm happy to do that so what things high net worth individuals are doing right now is that they are.
Buying interest very high and real estate if you've been watching in the papers there's.
Record highs going -- So -- -- you can invest in that Simon property -- an ET after a real estate for high end real estate you can get into that.
The second thing that we're at that high net worth individuals are getting as high dividend stocks you've heard a lot you hear more about that.
But David to our senator mark up and there's a -- ETF for about as well that you can look at which is DV -- So that's another one where you can get into and mimic what high net worth individuals are doing and then the third sector which -- net -- and -- is very interested in.
Is technology and they are again you can look at some of the great ETFs like BGT that's a good example we -- going to put all of this on the FaceBook page as we look at VGT that's the intra day picture it's not a good one but if you look at the one year picture.
It's something that we should really check out because again.
At 72 dollar 64 -- just off the highs.
Credit in your book and I want all the -- seven pearls of financial wisdom you talked a lot of people one of the chapters is Warren's sister Doris who now is a billionaire because in the early days.
She invested a little bit of money it was something she believed in and that was Berkshire Hathaway that's right.
And Doris is an amazing woman we've had the privilege of into being asked her car but -- she talks a lot about really believing in your philanthropy.
She's given -- a 110 million dollars over the last decade.
She's an incredible philanthropist she definitely invest in puts her money where she believes that while -- ticket with -- happen.
Kick up it's great to see you thank you so much appreciate it.
