Get rich by earning money from money.
(Unshakeable By Tony Robbins Book Summary)
learn to make money with money.
Our parents put us in play school in our childhood. After that after completing primary, secondary, high school and college. When it comes to earning money. Then we realize this. Even after studying for 18 years, we did not learn anything related to money.
Because of this mistake, we have to work whole life for money. Not only this, but even after working whole life. We are able to save very little money. If you also want to do something other than this sheep trick. Then you must read Tony Robbins’s Unshakeable Book. (Unshakeable By Tony Robbins Book Summary)
On hearing this word, 90% of the people get scared. Because it is complicated and risky. But actually, the truth is this. In our education system, it is not taught at all. We do graduation. Even after this, we do not have any knowledge about investment at all.
We don’t know at all. In what ways can money work for us? We think that keeping the money in the bank is the safest. but it’s not like that. Some countries, such as Switzerland, Sweden, Germany, Denmark and Japan, have negative interest rates. (Unshakeable By Tony Robbins Book Summary)
That is, if you keep the money in the bank. So you have to give interest to the bank. You would feel No problem. In India, 3 to 4% interest rate is being available. Why are we upset? But you should also count inflation. Which is growing at the rate of 6% every year.
This means comparing your money to inflation. So that is getting less and less every year. Now you must be thinking. that what you should do. How should one invest? Which will give us a good return. The answer to all these, you will get through Unshakeable. (Unshakeable By Tony Robbins Book Summary)
Winter is Coming But When ?
According to the latest study, 60% of the people are losing their trust in the financial market. Because of this, many people keep 40% of their savings in cash. What is the main reason for this? The reason for this is that people are very afraid.
They fear that they are investing in the market at the wrong time. In the next market crash, all their hard earned money could be ashes. As in truth, it has happened to people. But the author says that in a market crash, where more than 10% is also down. (Unshakeable By Tony Robbins Book Summary)
So it can be called Market Correction. Same if it goes down more than 20%. So it is called Bear Market. But from all this, there is no need to be afraid. Rather, investing is the best opportunity. From 1900 to 2015, there have been 34 Bear Markets.
But all these market crashes have always been temporary. In fact, the last 200 years have been the best time to invest in the stock market. Winter is Coming means that everyone feels it. Market Crash is about to come. But no one knows when it will happen. (Unshakeable By Tony Robbins Book Summary)
We can’t even control it. If you are going to invest in the stock market. So you have to experience the market crash. As we experience many seasons. It’s hot. Then it rains. Then comes winter. But the heat comes again.
Similarly, the seasons of the market also keep changing. We should have courage in the winter season, that is, at the time of market crash. It should be understood that after winter, summer comes. (Unshakeable By Tony Robbins Book Summary)
After a market crash, the market also goes back up. He goes even higher than before. As in 2020, due to Covid-19, there was a market crash. Where Sensex had fallen from 41000 to 27000 within three months. Where people were very scared.
He had withdrawn his money in loss itself. But this was the best time to invest money in the market. Because today Sensex is running at 58,987. Which sometime back, had also reached its all-time high of 61,674. (Unshakeable By Tony Robbins Book Summary)
Compound Interest Means It Is Never Too Soon To Invest.
We humans have this ability. That we catch any repetitive pattern very quickly. Accordingly, we start taking action. For example, humans began to recognize the weather in their early ages. Accordingly, he also started growing his crops.
Similarly if you also want to earn good returns in the stock market. So you too, have to understand some of its patterns. In which the most basic pattern is of compound interest. Which you must have known for sure. (Unshakeable By Tony Robbins Book Summary)
Where you get the return. They give you by adding to your capital, generating more return on it. Over time, this value increases. But in the case of finance to our brain, this simple 2 2 2 2=8 maths makes sense. But the compound works like 2×2×2×2=16. Where do we understand? How Compounding Works. But we do not realize its real power.
For example, if you start investing ₹ 1 lakh every year from your 19th birthday. You get an average return of 15%. So after 1 year in a row, when you will be cutting your 38 birthday cake. Then you will have ₹ 1.01 crore in your account. (Unshakeable By Tony Robbins Book Summary)
If you wait 5 more years. So this amount will be double. At the age of 43, this amount will be ₹2.04 crores. Similarly, what is the value of your one year. You must have understood.
So whatever condition you are in. Whatever money you have. Just start investing some of it. Because the more you go on getting late. Your time will further reduce the value of your money. (Unshakeable By Tony Robbins Book Summary)
The Core Four.
It’s good to start early. But where should one invest, where not. This is a big question. For which, all the experts and great investors follow these four core principals.
(Unshakeable By Tony Robbins Book Summary)
Don’t Lose.
Warren Buffett, the greatest investor of this century, has only two rules related to investing. Which he himself follows. The first rule is – Never Lose Your Money. The second rule is – Never Forget the Rule No. 1
(Unshakeable By Tony Robbins Book Summary)
That’s why the author says Your focus in investing should not be this. Earn maximum money. Rather your main focus should be on this matter. The money you have invested. First of all he should be safe. No one wants to lose their money.
But it is very important for you to understand this. When you invest money in stock market. So there is a risk of losing your money. Be it a little, but it happens. If you do not have basic knowledge. So this risk increases even more. (Unshakeable By Tony Robbins Book Summary)
Suppose you invest ₹ 1000 in the stock of a company. Which has no future. After sometime you have lost 50%. Your ₹ 1000 is left with only ₹ 500. If at this point in time, you withdraw these ₹500. Will invest again somewhere else.
Where you will get a return of 50%. You will get your ₹ 1000 back. but it’s not like that. Even if you get 50% return on these ₹ 500. So you will get only ₹ 250. Which will make a total of ₹ 750 only. So to get your ₹ 1000 back, you have to invest ₹ 500 in such a stock.
From where you get 100% return. Which is very difficult. That’s why you have to choose such investment. which is safe. To invest in such a company. Which has been in the market for years. Be reliable and be trusted. So that your money is safe.
(Unshakeable By Tony Robbins Book Summary)
Create Asymmetric Risk/Reward.
You must have seen this in many movies or on the internet. where it is said. If you want to earn a lot of money in life. So you have to take a big risk. Most of them also believe in the same thing. But the author says that this is a big lie. which is being sold. People are drowning their money too.
You should invest in such a place. Where the risk is minimal and the reward is very high. This concept is called investor, asymmetric risk/reward relationship. This concept is also used by a highly respected trader, Paul Tudor Jones.
Where he follows his five to one rule. Where he focuses on 5X return in one of his investments. That is, he invests in such a company, after analyzing well. Where their ₹ 100, ₹ 500 can be made. By following the same rule, if he fails even 80% of the times. Even then it doesn’t matter much to them. (Unshakeable By Tony Robbins Book Summary)
Suppose if he makes 5 investments of ₹ 1000. From where they have more chances of becoming ₹ 5000 to ₹ 1000. Where to keep their total investment amount of ₹ 5000 safe. They have to be right only 1 time out of 5. If he gets it right even 3 times. Wrong twice. Even then they will have a profit of ₹ 15000. While the loss of only ₹ 2000.
Where we can see that Jones is investing successfully keeping in mind only the second rule. Where she takes advantage of the unpredictable nature of the market, taking the least amount of risk. Getting maximum rewards.
Keeping your money safe too. The author tells another way to get the reward, by taking the least risk. We should invest in under valued stocks. As you saw in 2020, when the market crash happened. Then all the stocks were undervalued.
People took advantage of this. At that time invested in the market. You can see the result of which today. Something similar happened in the financial crisis of 2008 as well. (Unshakeable By Tony Robbins Book Summary)
Tax Efficiency.
A smart investor always has the right knowledge about taxes, before taking his decision. Because taxes eat up a lot of money from your investment. We have to pay 2 types of taxes in our investment. (Unshakeable By Tony Robbins Book Summary)
One is Short Term Capital Gain. In which if we sell the stocks, within less than 1 year of taking it. So we have to pay a short term gain tax. Where we have to pay some percentage of our net profit to the government in the form of tax. Which according to our India, is 15%.
The second is Long Term Capital Gain Tax. Where if we keep our stocks by hold for more than 1 year. So we have to pay a long term capital gain tax on our net profit. Which is usually between 0-10%. In this stock investing, many types of hidden charges are also hidden.
Which keeps running out of your money. We don’t even know. So before investing anytime, we should consider all the fees and taxes. Like many people also invest in Mutual Funds.
Where to manage this fund, you are charged fees. About which many people do not even know. Also you have to pay tax separately. So the author suggests. That if you do not want to invest in individual stocks.
So you should not invest in Mutual Fund, but in Index Fund. Where you do not invest in any selected companies without knowledge. Rather you invest in the top companies of the market. In which you do not have to pay any expensive fees. (Unshakeable By Tony Robbins Book Summary)
Diversification.
This last principle of Core Four also keeps you safe from market crisis and changing trends. This rule is used by all the investors of the world. Financially it is also very famous. Which we can also understand from Never Put All Your Eggs in One Basket.
(Unshakeable By Tony Robbins Book Summary)
So, this is the short summary of the comfort crisis book. hope you liked it. If you find this informative then also check out some more book summaries like The 5 second rule , The magic of big thinking , Finish book by john acuff, Hooked book summary, Purple Cow Book Summary, Rework (businesses important lessons) etc in my blog section.
To Watch great book summary explanation videos in Hindi language then visit : This YOUTUBE channel