#214 with Ramit Sethi - Why You Should Have a Diversified Investment Portfolio

What does Mike Tyson say? 'Everybody's got a plan until they get punched in the face.' Everyone's an investment champ until the market goes down.

For most people, you will find that if they get a nice, simple 8% annualized return rate over time and they continue contributing, they actually have more money than they know what to do with. It takes time, yes, but I want to challenge people to really think about this sensibly.

Whatever you see on Reddit, you should immediately close that window and never listen to any financial advice on that fucking site.

I'm still praying, one day, can there be an intelligent troll out there? And, so far, no. It's very difficult ... I get anti-vaxxers who write me. I tell them, 'You would have trouble deciphering a menu at Olive Garden, and you're over here giving me medical advice? I don't think so.'

Money is not just about math. In fact, we overvalue math and we undervalue psychology.

There's more to life than metrics, you Silicon Valley nerds ... Sometimes, in fact, the best companies know... That's why they advertise in Times Square. They can't track that. But they do it because it's the right thing to do, and it's about branding.

Part of my philosophy is save for the big things before you need them because you know that they're going to happen.