Dan Martell - How to Invest Your Money Like The 0.1%

00:00:00.000 How do the top 0.1% actually invest their money?

00:00:03.420 Most people think they prioritize stocks and real estate,

00:00:06.100 but that's completely wrong.

00:00:07.700 I bought my first stock at 19,

00:00:09.400 a rental property when I was 21.

00:00:11.160 I was voted number one angel investor in all of Canada.

00:00:13.840 I've even invested in companies

00:00:15.180 alongside founders of Google and even Jay-Z.

00:00:18.000 And here's what I've learned.

00:00:19.100 The top 0.1% follow a completely different strategy

00:00:22.900 than you'd think.

00:00:23.940 So in this video, I'm gonna break down the four stages

00:00:26.700 of how the wealthy actually invest their money,

00:00:29.000 even if you're starting from scratch.

00:00:31.420 Stage one, invest in your foundation.

00:00:34.260 The best thing you can do

00:00:35.940 is invest in getting ready to receive.

00:00:39.480 This is a non-negotiable.

00:00:41.280 First off, we need to prioritize your health,

00:00:44.080 essentially your mental and your physical

00:00:45.600 because that's the baseline.

00:00:47.340 Once you get rich, the only thing you care about

00:00:49.880 is that you feel good about yourself having that money.

00:00:53.080 If you're healthy, you have a thousand goals and dreams.

00:00:55.780 If you're unhealthy and sick in the hospital,

00:00:58.020 you've got one goal. So we have to prioritize our fitness, our sleep, and our nutrition. All of

00:01:04.200 those will impact your brain. My best investment is in me because I will take me with me for the

00:01:10.580 rest of my life. You want to make sure you, this body, this vehicle is dialed in. Here's a great

00:01:16.560 hack. Go to an expensive gym. Pay. When you pay, you pay attention. You prioritize. The best part

00:01:23.440 is if you go to that expensive gym, you'll also be there with other people that got money.

00:01:28.020 See, cheap people don't go to expensive gyms.

00:01:30.400 If you wanna elevate your life,

00:01:32.280 get around other people, other CEOs, entrepreneurs,

00:01:34.740 and folks who can actually support your dreams,

00:01:36.520 pay to get access to the best gym

00:01:38.520 and be sure to say hello to people.

00:01:40.260 But that's just the baseline.

00:01:41.500 The next stage is where you'll see things

00:01:43.320 start to turn for you financially,

00:01:44.980 which is stage number two,

00:01:46.400 invest in your skills and your knowledge.

00:01:49.240 The best investments, the best ROI

00:01:51.460 is to just buy better thinking.

00:01:53.700 Pay to get access to learn things.

00:01:56.560 Pay for the blueprint.

00:01:57.360 Pay for the answer on the test.

00:01:59.520 Pay to have somebody that spent 20 years learning a topic

00:02:02.920 to give you everything they've learned

00:02:05.380 in a compressed format.

00:02:06.980 That will sharpen your skills

00:02:08.740 to make you more valuable to get paid more.

00:02:11.620 And then once you pay to get access to those teachers,

00:02:14.140 turn those teachers into relationships.

00:02:16.420 My 12-year-old son the other day

00:02:18.780 bought his first digital course.

00:02:21.060 He realized that for him to become more valuable,

00:02:23.740 he has to pay people to teach them things

00:02:25.680 so he doesn't spend all of his time

00:02:26.900 trying to do research, maybe finding the answers that he's looking for. You got to find the people

00:02:31.700 that have the courses. Maybe they'll tell you what tools of the trade to use so you can save

00:02:35.180 yourself all this research. My top two investments, coaches and books. I've studied, and I use that

00:02:41.800 language specifically, over 1,600 business books, integrated them into my life. I've taught them to

00:02:47.180 other people so I could really understand them. Coaches are some of the most powerful ways for you

00:02:52.560 to upgrade your skills, to make investments in yourself

00:02:55.260 because oftentimes we get coaches

00:02:57.220 to help us with the transformation.

00:02:59.160 Guess what?

00:02:59.740 The transformation happens at the transaction.

00:03:02.000 I turn my teachers into mentors.

00:03:04.520 Most of the authors who are still alive,

00:03:06.440 that wrote the books, the impact of my life the most,

00:03:09.080 I've emailed.

00:03:10.200 Would you be surprised to find out

00:03:11.480 that most of them write back?

00:03:12.920 Many of them I've met in real life now,

00:03:15.000 all because I decided to take the knowledge

00:03:17.500 they shared with me, acknowledge that,

00:03:19.760 tell it how it impacted my life.

00:03:21.100 and it turns out if somebody's taken 25 years of their experience put it into a book sold it for

00:03:25.760 20 bucks and somebody emails messaged them to let them know how it impacted their life

00:03:29.580 they appreciate that most people won't make this decision because they can't see the ry but it's

00:03:35.520 because they're not learning the right things i call it just in time versus just in case most

00:03:40.400 people learn just in case they need it that's like going to university i read books for things i need

00:03:46.260 to solve in my life today almost 20 years ago i read a book called never eat alone by a guy named

00:03:50.920 Keith Ferrazzi. I was an introverted software programmer. I didn't want to talk to people,

00:03:55.260 but I knew I had to learn how to network. So I read his book and he taught me these crazy

00:03:59.580 strategies. Like you should use meals to connect with people. You should invite people to work out

00:04:04.120 with you. Your network is your net worth. Turns out wildly right. If you look at my life today,

00:04:10.060 I don't meet with people new without bringing them for a workout. I do it on a founder's hike. I do

00:04:15.280 it on a run. I've done it on the back of my boat. That's just my rule. I even emailed Keith and kept

00:04:21.500 in touch with him. And almost a decade later, I meet up with him in LA. And true to his character

00:04:27.000 and what he wrote about in the book, he invited me for a workout and then for brunch to meet some

00:04:30.600 of his friends. When you invest in your skills and your knowledge through coaching courses or

00:04:35.600 any other format like books, then you become more valuable. And here's the best part. Investments

00:04:41.820 don't always require cash. Most authors, including myself, usually have a newsletter where they share

00:04:47.060 strategies. Like mine is the Martell Method, where I teach you my top mindset, entrepreneurship,

00:04:51.800 and growth tactics. If you want that, just click the link below in the description and join the

00:04:55.980 community. It costs nothing. If you're still stuck on this point, I want you to consider this.

00:05:00.780 If I already knew what I needed to know to be successful, then the success would already be

00:05:05.640 in my life. The fact that it's not means I have to go learn, develop my skills, develop my habits,

00:05:10.460 develop my mindset so I can become the person who can easily bring those outcomes into my life.

00:05:16.680 You got to keep investing. So here are some very tactical ways that you can go about investing in

00:05:21.200 your skills and knowledge. The first one is build what I call a centurion council. Essentially, 0.97

00:05:25.220 it's 100 mentors list. I like to make it 25 authors, 25 operators. These are people actually

00:05:30.620 running companies, 25 coaches, people that teach people, and then 25 peers, folks that are one or

00:05:36.020 two years ahead of where you want to be. Once you do that, read everything about them, read their

00:05:40.440 books, watch their content, test their methods, see if it works for you. I call that bathing in

00:05:45.820 the waterfall of their knowledge. Once you've done that, and you've gotten some value from them,

00:05:50.240 then I want you to reach out to connect or hire them. But you got to use the PAC script. P is

00:05:56.140 open with proof you've used their content. Tell them, hey, I read this thing, you taught me this,

00:06:01.240 I did that, it had this impact on my life. That's the proof that you read it. The A stands for

00:06:05.980 ask. Ask one specific tight question. C is close. If you ask somebody for seven minutes, you might

00:06:13.380 go 10, but close the call, wrap it up. It also shows that you're busy doing things, not just a

00:06:19.300 talker. And trust me, if someone gets approached by a lot of people wanting my advice, knowing that

00:06:23.800 I've been helpful and they moved on, and then they can message me later, the impact, that's how we

00:06:28.020 start to build a relationship. Once you do this and make it a habit, we can move on to the next

00:06:32.440 stage to invest your money like the top 0.1%. Stage three, investing in your business. The top

00:06:39.240 0.1%, they don't guess. They buy speed and they reinvest in the machine that multiplies cash.

00:06:46.200 And for those people, it's their business. But there's different ways to look at investing in

00:06:51.040 your business. The first thing I'm going to tell you is you've got to look at the gear.

00:06:54.280 I can't tell you how often I'm with a friend and he's pulling up his phone and the phone is slow

00:06:59.360 or his computer's crashing.

00:07:01.160 And I'm like, bro, there's only a handful of places

00:07:03.780 you spend a lot of time.

00:07:05.260 You wanna invest in that.

00:07:06.780 Spending money on gear is the fastest, quickest way

00:07:10.780 to get a return on your capital.

00:07:12.560 It's like being a roofer and manually nailing

00:07:15.260 all the roof shingles to the roof

00:07:16.780 when you could buy a nail gun

00:07:18.460 and get like literally 10 times more productivity.

00:07:21.980 The other one is blueprints or playbooks.

00:07:23.800 Like I mentioned, paying for shortcuts

00:07:25.960 instead of trial and error is a pro move.

00:07:28.320 all the richest people do this every day they pay for consultants they pay for mentorship they will

00:07:34.240 pay anybody for an hour of their time i'm on instagram all the time messaging all of you or

00:07:38.560 chatting with people or trying to find new people to follow and if i see somebody sharing something

00:07:43.520 really cool my go-to is hey what would an hour of your time cost most of them look at my profile and

00:07:48.720 go well i think it'd be a fun conversation how about free i'm like sounds good to me sometimes

00:07:52.960 they'll go 30 grand guess what for the right person 30 grand for an hour of their time so i

00:07:57.840 can learn everything that they've learned in the last 20 years is the best investment i can make

00:08:03.120 to unblock an area of my life another one is coaches and consultants and yes we talked about

00:08:07.840 this in skills and knowledge but this is way different because now we're talking about the

00:08:11.040 business see most entrepreneurs will hire coaches or consultants for themselves i'm talking about

00:08:16.800 hiring more specialized people for the departments for the people leading their department so that

00:08:22.400 you get the right person inside the company helping develop the people because when you build the

00:08:27.440 people the people build the business too often all the knowledge and information is bottlenecked by

00:08:32.880 the ceo push it down to the people that are doing the work my favorite recent example of this is

00:08:38.560 helping my creative director create a mastermind of incredible people that were also creative

00:08:44.000 directors or video editors or people creating content that he could learn from both provide

00:08:49.040 value sharing with them and them providing value back with their lessons learned masterminds is a

00:08:54.400 powerful strategy that i think that every ceo should ask their leaders to build for themselves

00:08:59.520 because proximity equals acceleration what's crazy is for seven years i tried to build a business

00:09:06.240 two companies back to back failed it wasn't until i hired a business coach his name was bob to teach

00:09:12.400 me business and i know it's like i'm an entrepreneur i know business guess what turned out i didn't

00:09:16.480 understand how to actually do the business stuff i was good at writing code i could build software

00:09:21.280 that's like 10 of the overall business in the first year bob mentored me and coached me to

00:09:26.480 do almost a million dollars in revenue that was wild two failed companies over seven years

00:09:30.800 in the first 12 months almost a million in revenue the power of people giving you the

00:09:36.080 blueprint so you don't have to sit there and figure it out yourself is a massive investment

00:09:40.080 some people are stuck wanting to learn everything themselves that's slow all these are examples of

00:09:44.640 like outside help but guess what inside your business you can learn to buy back your time

00:09:49.120 making investments in bringing people in to take time out of your calendar so you don't become a

00:09:55.200 slave to your own business so that you can re-energize and invest your mind and your talent

00:10:00.240 in the thing that makes you the most money that lights you up that is the ultimate investment

00:10:05.680 this is the buyback principle you don't hire people to grow your business you hire people

00:10:10.080 to buy back your time so here's a framework that i use to reinvest in my business first off every

00:10:15.360 quarter i want you to set aside a fixed percent of profit let's say 20 or 30 percent that you earmarked

00:10:21.440 for reinvestment then you have to redeploy that capital into the most leveraged category of

00:10:27.040 opportunities then you take that capital and you reinvest it in either marketing sales or delivery

00:10:32.720 unblocking where the constraint is in the business if that means you got to pay for other people's

00:10:37.840 playbooks you might need to hire a person to lead it you might have to build some systems

00:10:42.320 or you just have to grow the team or build more capacity in that area of the business

00:10:47.040 but the theory of constraint toc is the right way to analyze where you should be reinvesting

00:10:53.120 and finally don't let your cash pile up just in case a lot of people hear oh you should have

00:10:58.560 eight months of cash in your bank account just in case move it to your holding company leave it there

00:11:04.240 invest it out of there. And guess what? If you need it back, you liquidate it and you invest

00:11:08.640 it in the business. That strategy of taking the cash out and keeping that as an investment forces

00:11:14.080 the business to grow. The other thing about investing in your business is most entrepreneurs

00:11:18.340 will get a 50% return on their investment in their business than taking the money and investing in

00:11:24.180 other places. And everybody's like, oh, I got invested in index funds. I got invested in the

00:11:27.640 market. I got invested in private equity. I'm an angel investor. Guess what? Not a good move.

00:11:32.280 So you've built the foundation, leveled up your skills, and reinvested in your business.

00:11:37.000 Only after doing all that is when you start looking at other financial assets.

00:11:41.660 Stage four, investing in financial assets.

00:11:44.540 As I said at the beginning, most people make their investments backwards with stocks, index

00:11:49.600 funds, real estate, all that stuff.

00:11:51.280 But the truth is, these don't make you rich.

00:11:54.100 They keep you rich.

00:11:55.160 That's why the 0.1% treat financial assets as the last stage, not the first.

00:12:00.140 If you look at 90% of the people that have become really rich,

00:12:04.060 I'm talking like 100 million plus,

00:12:05.940 they made it by having a primary operating company

00:12:09.180 that generated cash.

00:12:10.540 They took that extra cash

00:12:11.820 and then they started doing what I'm about to share with you.

00:12:13.960 And don't overcomplicate it.

00:12:15.360 You've built wealth.

00:12:16.360 This is just a safety net.

00:12:17.740 And one of my mentors, Ken, he said it best.

00:12:19.580 He said, making money, that's easy.

00:12:22.400 Keeping it, super hard.

00:12:24.100 This is about keeping it.

00:12:25.420 So now that we're at this stage

00:12:26.480 and you've gone through each one of those,

00:12:28.220 just make sure you don't overcomplicate it.

00:12:30.240 Stocks, S&P 500, real estate investment trusts,

00:12:33.220 they're all great, safe options,

00:12:34.900 but just keep in mind, they're for a long-term play.

00:12:37.640 Essentially, it gives you peace of mind

00:12:39.060 so you can focus on growing the business

00:12:41.020 knowing these assets will compound.

00:12:42.980 I wanna take the risk in my primary business

00:12:45.160 where I have an unfair advantage, not in my investments.

00:12:48.240 Here's what not to do.

00:12:49.900 Late 20s, I get an opportunity to invest in homes.

00:12:53.200 This was during the great financial crisis

00:12:54.960 and banks were trying to sell and liquidate

00:12:57.100 anything on their balance sheet as fast as possible.

00:12:58.960 so you could buy homes, for example,

00:13:01.680 in Detroit for $8,000.

00:13:03.300 And I bought it a ton.

00:13:04.440 I thought I was smart.

00:13:05.780 I thought I was a real estate guy.

00:13:07.440 And all of a sudden, I find out the homes I buy

00:13:09.740 are essentially were rotten and not livable.

00:13:13.020 And there was homeless people in them.

00:13:14.600 And I should have never gotten involved

00:13:15.760 in the first place.

00:13:16.620 That's when I realized I got to stick

00:13:18.640 to what I know best, software. 0.88

00:13:20.640 If your primary business is real estate, go nuts. 0.51

00:13:23.140 It's not mine. 0.91

00:13:23.960 Whatever you're best at, do that.

00:13:26.140 If money is just sitting on the sidelines, not working,

00:13:29.340 it's just wasted.

00:13:30.440 I consider dollars as little workers

00:13:32.640 and they need to be put to work.

00:13:34.620 Here's the best part.

00:13:35.860 You can actually leverage your liquid assets,

00:13:38.240 these investments I'm gonna talk about,

00:13:39.880 to buy things without paying taxes.

00:13:42.360 Essentially, rich people that have stock

00:13:44.160 in their primary business,

00:13:45.340 think Elon Musk with all his equity tied up in Tesla,

00:13:47.480 he can use that stock to borrow money,

00:13:50.240 essentially a loan backed by the stock,

00:13:52.960 not pay any taxes because it's a loan,

00:13:55.760 and then just take out an insurance policy

00:13:58.120 to pay back the loan if he dies.

00:14:00.340 It's called the buy, borrow, die strategy

00:14:02.480 and a lot of people use it.

00:14:03.920 The first part is you have to buy.

00:14:05.500 That's why rich people buy stocks and they never sell them.

00:14:08.000 They literally say, this is a portion of my portfolio

00:14:10.300 that I'm never gonna sell.

00:14:11.500 I'm gonna own them forever.

00:14:12.980 And oftentimes they'll put them in a family trust

00:14:15.100 so they can be transferred in a more tax efficient way

00:14:17.720 to future generations.

00:14:19.380 Second is they borrow money from the bank

00:14:21.800 using that portfolio, that stock as collateral.

00:14:25.160 Again, borrow the money.

00:14:26.300 There's no taxes when you borrow money.

00:14:28.120 so they can pay for personal assets.

00:14:30.120 And then third is when they die,

00:14:31.420 the life insurance pays back the bank

00:14:33.380 for the money they borrowed

00:14:34.700 that was secured against the stock.

00:14:36.020 So the stock never has to sell,

00:14:37.340 so it doesn't trigger any capital gains,

00:14:38.880 which means they don't have to pay taxes.

00:14:40.300 Their kids get the stock tax-free at today's value.

00:14:43.520 This is very technical, but understand this.

00:14:46.360 Step one, go get money.

00:14:48.640 Step two, invest in your health.

00:14:50.940 Step three, invest in your knowledge.

00:14:52.480 Step four, invest in your business.

00:14:55.000 Then five, do this stuff.

00:14:56.480 The real question that I get asked all the time

00:14:58.900 is what percentage of my income

00:15:01.260 should I be investing in what?

00:15:03.280 First off, put some aside long-term.

00:15:06.460 If you want to like lock in into index funds

00:15:09.380 and just have really tax efficient,

00:15:11.500 low fee type of investing,

00:15:12.980 just so that you start to build the base,

00:15:14.740 again, that you can use as leverage and collateral

00:15:17.020 for your first home, for a business loan,

00:15:19.340 whatever it is, you at least have that there.

00:15:21.140 I'm not saying you're gonna get rich off of it by any means,

00:15:23.800 but at least you'll build a foundation

00:15:25.240 and savers are growers.

00:15:27.120 So you need to learn how to save.

00:15:28.420 Invest a percentage, call it 10% is a good amount.

00:15:31.360 I like to give to charity

00:15:32.720 because I think you get what you want for other people.

00:15:35.000 So if I wanna give my money to people that need it most,

00:15:37.380 I'm gonna get more.

00:15:38.300 So I think giving, tithing, 10%, smart strategy.

00:15:41.540 Then the other one is,

00:15:42.560 what percent do you think you should reinvest in yourself?

00:15:45.300 The other day I was talking to one of my sales guys.

00:15:47.180 He makes 35,000 a month.

00:15:48.840 He's 20.

00:15:49.460 He's never made that much money in his life.

00:15:51.340 He goes, look, I put 5,000 in stock.

00:15:53.260 I've got this great apartment.

00:15:54.260 I got a great car. I got a great life, but I still have extra money. What should I do with it?

00:15:57.680 I said, tell me how you've invested in yourself. Did you hire a coach? Did you buy a course?

00:16:01.760 What books are you reading? What seminars are you planning on going to? He didn't have an answer

00:16:05.220 for that. My rule is if you have capital, invest in you and then you invest in your team and then

00:16:11.180 you invest around people around you so everybody gets better. You have to invest in you to be that

00:16:16.560 person. It's not about having it. So here's my question for you. Out of everything I shared,

00:16:21.380 It doesn't matter if you have no money

00:16:22.820 or you have a lot of money.

00:16:24.080 What's the one thing

00:16:25.120 that you're gonna make a commitment to?

00:16:26.660 Is it deciding to put your health first?

00:16:28.640 Realizing that being rich and not being healthy

00:16:31.060 is a bad proposition?

00:16:32.780 Is it deciding maybe you're 35

00:16:34.600 and you haven't invested in a stock

00:16:36.080 because you put it off someday, maybe.

00:16:37.900 Whatever it is, I want you to make a commitment today

00:16:40.720 to start anything, to be a better investor

00:16:44.320 because the more you learn how to invest,

00:16:46.200 the better your returns are gonna get,

00:16:47.660 the better those returns get, the more you're gonna have.

00:16:49.920 and remember if you want to learn more from me just click the link below and subscribe to my

00:16:54.240 newsletter every week i send out three emails to teach you how to upgrade your mindset your skills

00:17:00.000 all for free no cost so even if you have no money invest that's the best way for you to start now

00:17:04.960 Now, if you want to learn how to make so much money, it breaks your bank, click here and

00:17:08.940 I'll see you on the other side.

Dan Martell - January 06, 2026

How to Invest Your Money Like The 0.1%

Episode Stats

Summary

Transcript