I am certain if I met with Tony Robbins, I’d find him even enchanting and magnetic.
I am pretty confident he could instruct me – skeptic and persistent curmudgeon that I’m – to achieve for success, to awaken my internal giant.
But to eventually be a millionaire by following his investment suggestions?
Cue the sound of screeching brakes.
Robbins – in the event you’ve somehow never turned on a TV set in the past couple of decades and found yourself in front of one of his infomercials, never walked into a bookstore and found yourself staring at a whole bookcase dedicated to his self help tomes – is a life coach. But that description drastically understates his impact on our mind and his part in American society. After all, this is actually a man who got Oprah Winfrey to walk across burning coals. He’s advised former president Bill Clinton, in and out of office. After coaxes “peak performance” out of sales executives for folks like Marc Benioff, the founder of Salesforce.com.
All of which is very good. But being great at pep talks and advise does not qualify Robbins to supply financial guidance.
Yet that is Robbins’ new job. He is everywhere, it looks, marketing a brand new novel: “MONEY: Master the Game.”
Accurate, all the screaming (“I own you!”), chanting, inspirational words and a small amount of firewalking on the side has made Robbins himself a millionaire. But that is becoming a millionaire by doing what you are proficient at doing – in his situation, being a life coach and convincing other people to pay them to inspire. Being great at your occupation is an excellent method to earn money. It is how Bill Gates got rich, by constructing the software applications or a coffee shop was transformed by Howard Schultz into the international retailing phenomenon that’s Starbucks.
It is a common American superstition that those who’ve brought in wealth are qualified to supply others with guidance on managing it. That is what’s motivated Robbins, whose self-assurance could be as outsize as his 6’7” framework.
Except that it does not. As professional cash manager Barry Ritholtz points out in a fairly scathing review, when Robbins has attempted previously to give his followers marketplace guidance that is particular, he is been incorrect.
Robbins suggests you need to question anyone peddling fiscal advice. Robbins does not say that he should be one of them
In 2010, Robbins proposed his followers pull cash out of stocks: to the extent they followed his guidance, they gave up 90% increases in the following four years.
Robbins’s new novel does not appear to supply much in the way of trading suggestions. Rather, he’s offering the reader a combination of market insights and ideas from such investment business luminaries as Vanguard’s Jack Bogle, Warren Buffett, well-known hedge fund manager Paul Tudor Jones (when the latter lost his trading “mojo”, Robbins seemingly helped him track it down) and activist investor Carl Icahn.
That sort of guidance is constantly really going to be fascinating to people who pickup other publications and Barron’s to read what the big names in finance are doing with their cash.
But here’s the rub: what men like Carl Icahn and Paul Tudor Jones are doing with their money likely is not what you need to be doing with yours.
They have accessibility to a significantly distinct array of investments and have billions. They are able to take much more danger, also. It is like observing a stunt driver in one of those auto advertisements: you observe with fascination, but woe betide you in the event that you don’t heed the writing underneath, “professional driver on a closed path.” You can not do the same magic tricks in your Volkswagen on the highway.