Robbinshood: Prince of Thieves
Last month, Tony Robbins released a brochure book called The Holy Grail of Investing, the final installment of his gargantuan Financial Freedom trilogy. In it, Big Ton’ implores people to shift their portfolio allocations into alternative investments, the (alleged) best-performing asset class of the last decade-plus. Hmm…
Is this a valid claim or a market-topping grift? A bad case of survivorship bias or a good case of foresight? To find out, I decided to go on my own crusade and read the damn thing, very quickly realizing that this book — like the elusive relic it’s named after — will not lead readers to enlightenment (gasp!).
Still, I wanted to be fair to Tony, whose relentless optimism and larger-than-life persona have helped millions. In a world that’s often too cynical, there's something to be said for that. But take a moment and shield your eyes from his Herman Munstercharm, and you’ll see this book for what is: two parts promotional tool for the already-rich and one part motivational tool for the wannabe-rich. Less a how-to and more a where-to, emphasizing inspiration over implementation and enthusiasm over expertise.
But while Tony is way off regarding his conclusion, he is directionally correct: A holy grail of investing can be aspired to (even for those of us that don’t have Paul Tudor Jones on speed dial). But it probably doesn’t involve owning a smorgasbord of privately-held investments, ranging from the ephemeral (e.g., “energy”) to the laughable (e.g., “pro sports ownership”). In the frenzied casino of investing, where fortunes can be made — and lost — on the spin of capitalism’s roulette wheel, success is not about chasing the “outsized returns” of a trendy asset class. And it’s definitely not about following the “smart money.”
Ultimately, investing is about your unique circumstances. Every portfolio should be highly-personalized, hyper-customized, and designed to sustain and nurture over the long term. It should be diversified, not concentrated; low-cost, not high-fee; boring, not sexy. And maybe most of all, it should be behaviorally robust, allowing you — the investor — to hold strong during the market’s (and life’s) ups and downs.
So if you’re searching for the true holy grail of investing, craft a portfolio that reflects who you are and where you want to go. Turn the quest for financial miracles into a journey of personal fulfillment. And, until you know exactly what you’re doing, stay the hell away from privates.
Devin Faddoul, CFP® is the founder of Adda Financial | Outsource your financial life. Focus on your real life.