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Dan Martell
- January 06, 2026
How to Invest Your Money Like The 0.1%
Episode Stats
Length
17 minutes
Words per Minute
210.44862
Word Count
3,612
Sentence Count
204
Hate Speech Sentences
1
Summary
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Transcript
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Hate speech classifications generated with
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How do the top 0.1% actually invest their money?
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Most people think they prioritize stocks and real estate,
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but that's completely wrong.
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I bought my first stock at 19,
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a rental property when I was 21.
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I was voted number one angel investor in all of Canada.
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I've even invested in companies
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alongside founders of Google and even Jay-Z.
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And here's what I've learned.
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The top 0.1% follow a completely different strategy
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than you'd think.
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So in this video, I'm gonna break down the four stages
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of how the wealthy actually invest their money,
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even if you're starting from scratch.
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Stage one, invest in your foundation.
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The best thing you can do
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is invest in getting ready to receive.
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This is a non-negotiable.
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First off, we need to prioritize your health,
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essentially your mental and your physical
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because that's the baseline.
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Once you get rich, the only thing you care about
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is that you feel good about yourself having that money.
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If you're healthy, you have a thousand goals and dreams.
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If you're unhealthy and sick in the hospital,
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you've got one goal. So we have to prioritize our fitness, our sleep, and our nutrition. All of
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those will impact your brain. My best investment is in me because I will take me with me for the
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rest of my life. You want to make sure you, this body, this vehicle is dialed in. Here's a great
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hack. Go to an expensive gym. Pay. When you pay, you pay attention. You prioritize. The best part
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is if you go to that expensive gym, you'll also be there with other people that got money.
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See, cheap people don't go to expensive gyms.
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If you wanna elevate your life,
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get around other people, other CEOs, entrepreneurs,
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and folks who can actually support your dreams,
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pay to get access to the best gym
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and be sure to say hello to people.
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But that's just the baseline.
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The next stage is where you'll see things
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start to turn for you financially,
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which is stage number two,
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invest in your skills and your knowledge.
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The best investments, the best ROI
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is to just buy better thinking.
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Pay to get access to learn things.
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Pay for the blueprint.
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Pay for the answer on the test.
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Pay to have somebody that spent 20 years learning a topic
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to give you everything they've learned
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in a compressed format.
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That will sharpen your skills
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to make you more valuable to get paid more.
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And then once you pay to get access to those teachers,
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turn those teachers into relationships.
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My 12-year-old son the other day
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bought his first digital course.
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He realized that for him to become more valuable,
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he has to pay people to teach them things
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so he doesn't spend all of his time
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trying to do research, maybe finding the answers that he's looking for. You got to find the people
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that have the courses. Maybe they'll tell you what tools of the trade to use so you can save
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yourself all this research. My top two investments, coaches and books. I've studied, and I use that
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language specifically, over 1,600 business books, integrated them into my life. I've taught them to
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other people so I could really understand them. Coaches are some of the most powerful ways for you
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to upgrade your skills, to make investments in yourself
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because oftentimes we get coaches
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to help us with the transformation.
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Guess what?
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The transformation happens at the transaction.
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I turn my teachers into mentors.
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Most of the authors who are still alive,
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that wrote the books, the impact of my life the most,
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I've emailed.
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Would you be surprised to find out
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that most of them write back?
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Many of them I've met in real life now,
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all because I decided to take the knowledge
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they shared with me, acknowledge that,
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tell it how it impacted my life.
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and it turns out if somebody's taken 25 years of their experience put it into a book sold it for
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20 bucks and somebody emails messaged them to let them know how it impacted their life
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they appreciate that most people won't make this decision because they can't see the ry but it's
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because they're not learning the right things i call it just in time versus just in case most
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people learn just in case they need it that's like going to university i read books for things i need
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to solve in my life today almost 20 years ago i read a book called never eat alone by a guy named
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Keith Ferrazzi. I was an introverted software programmer. I didn't want to talk to people,
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but I knew I had to learn how to network. So I read his book and he taught me these crazy
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strategies. Like you should use meals to connect with people. You should invite people to work out
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with you. Your network is your net worth. Turns out wildly right. If you look at my life today,
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I don't meet with people new without bringing them for a workout. I do it on a founder's hike. I do
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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
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in touch with him. And almost a decade later, I meet up with him in LA. And true to his character
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and what he wrote about in the book, he invited me for a workout and then for brunch to meet some
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of his friends. When you invest in your skills and your knowledge through coaching courses or
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any other format like books, then you become more valuable. And here's the best part. Investments
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don't always require cash. Most authors, including myself, usually have a newsletter where they share
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strategies. Like mine is the Martell Method, where I teach you my top mindset, entrepreneurship,
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and growth tactics. If you want that, just click the link below in the description and join the
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community. It costs nothing. If you're still stuck on this point, I want you to consider this.
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If I already knew what I needed to know to be successful, then the success would already be
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in my life. The fact that it's not means I have to go learn, develop my skills, develop my habits,
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develop my mindset so I can become the person who can easily bring those outcomes into my life.
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You got to keep investing. So here are some very tactical ways that you can go about investing in
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your skills and knowledge. The first one is build what I call a centurion council. Essentially,
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it's 100 mentors list. I like to make it 25 authors, 25 operators. These are people actually
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running companies, 25 coaches, people that teach people, and then 25 peers, folks that are one or
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two years ahead of where you want to be. Once you do that, read everything about them, read their
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books, watch their content, test their methods, see if it works for you. I call that bathing in
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the waterfall of their knowledge. Once you've done that, and you've gotten some value from them,
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then I want you to reach out to connect or hire them. But you got to use the PAC script. P is
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open with proof you've used their content. Tell them, hey, I read this thing, you taught me this,
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I did that, it had this impact on my life. That's the proof that you read it. The A stands for
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ask. Ask one specific tight question. C is close. If you ask somebody for seven minutes, you might
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go 10, but close the call, wrap it up. It also shows that you're busy doing things, not just a
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talker. And trust me, if someone gets approached by a lot of people wanting my advice, knowing that
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I've been helpful and they moved on, and then they can message me later, the impact, that's how we
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start to build a relationship. Once you do this and make it a habit, we can move on to the next
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stage to invest your money like the top 0.1%. Stage three, investing in your business. The top
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0.1%, they don't guess. They buy speed and they reinvest in the machine that multiplies cash.
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And for those people, it's their business. But there's different ways to look at investing in
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your business. The first thing I'm going to tell you is you've got to look at the gear.
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I can't tell you how often I'm with a friend and he's pulling up his phone and the phone is slow
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or his computer's crashing.
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And I'm like, bro, there's only a handful of places
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you spend a lot of time.
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You wanna invest in that.
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Spending money on gear is the fastest, quickest way
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to get a return on your capital.
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It's like being a roofer and manually nailing
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all the roof shingles to the roof
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when you could buy a nail gun
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and get like literally 10 times more productivity.
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The other one is blueprints or playbooks.
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Like I mentioned, paying for shortcuts
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instead of trial and error is a pro move.
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all the richest people do this every day they pay for consultants they pay for mentorship they will
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pay anybody for an hour of their time i'm on instagram all the time messaging all of you or
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chatting with people or trying to find new people to follow and if i see somebody sharing something
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really cool my go-to is hey what would an hour of your time cost most of them look at my profile and
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go well i think it'd be a fun conversation how about free i'm like sounds good to me sometimes
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they'll go 30 grand guess what for the right person 30 grand for an hour of their time so i
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can learn everything that they've learned in the last 20 years is the best investment i can make
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to unblock an area of my life another one is coaches and consultants and yes we talked about
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this in skills and knowledge but this is way different because now we're talking about the
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business see most entrepreneurs will hire coaches or consultants for themselves i'm talking about
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hiring more specialized people for the departments for the people leading their department so that
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you get the right person inside the company helping develop the people because when you build the
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people the people build the business too often all the knowledge and information is bottlenecked by
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the ceo push it down to the people that are doing the work my favorite recent example of this is
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helping my creative director create a mastermind of incredible people that were also creative
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directors or video editors or people creating content that he could learn from both provide
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value sharing with them and them providing value back with their lessons learned masterminds is a
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powerful strategy that i think that every ceo should ask their leaders to build for themselves
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because proximity equals acceleration what's crazy is for seven years i tried to build a business
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two companies back to back failed it wasn't until i hired a business coach his name was bob to teach
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me business and i know it's like i'm an entrepreneur i know business guess what turned out i didn't
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understand how to actually do the business stuff i was good at writing code i could build software
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that's like 10 of the overall business in the first year bob mentored me and coached me to
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do almost a million dollars in revenue that was wild two failed companies over seven years
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in the first 12 months almost a million in revenue the power of people giving you the
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blueprint so you don't have to sit there and figure it out yourself is a massive investment
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some people are stuck wanting to learn everything themselves that's slow all these are examples of
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like outside help but guess what inside your business you can learn to buy back your time
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making investments in bringing people in to take time out of your calendar so you don't become a
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slave to your own business so that you can re-energize and invest your mind and your talent
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in the thing that makes you the most money that lights you up that is the ultimate investment
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this is the buyback principle you don't hire people to grow your business you hire people
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to buy back your time so here's a framework that i use to reinvest in my business first off every
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quarter i want you to set aside a fixed percent of profit let's say 20 or 30 percent that you earmarked
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for reinvestment then you have to redeploy that capital into the most leveraged category of
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opportunities then you take that capital and you reinvest it in either marketing sales or delivery
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unblocking where the constraint is in the business if that means you got to pay for other people's
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playbooks you might need to hire a person to lead it you might have to build some systems
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or you just have to grow the team or build more capacity in that area of the business
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but the theory of constraint toc is the right way to analyze where you should be reinvesting
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and finally don't let your cash pile up just in case a lot of people hear oh you should have
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eight months of cash in your bank account just in case move it to your holding company leave it there
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invest it out of there. And guess what? If you need it back, you liquidate it and you invest
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it in the business. That strategy of taking the cash out and keeping that as an investment forces
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the business to grow. The other thing about investing in your business is most entrepreneurs
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will get a 50% return on their investment in their business than taking the money and investing in
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other places. And everybody's like, oh, I got invested in index funds. I got invested in the
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market. I got invested in private equity. I'm an angel investor. Guess what? Not a good move.
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So you've built the foundation, leveled up your skills, and reinvested in your business.
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Only after doing all that is when you start looking at other financial assets.
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Stage four, investing in financial assets.
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As I said at the beginning, most people make their investments backwards with stocks, index
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funds, real estate, all that stuff.
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But the truth is, these don't make you rich.
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They keep you rich.
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That's why the 0.1% treat financial assets as the last stage, not the first.
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If you look at 90% of the people that have become really rich,
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I'm talking like 100 million plus,
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they made it by having a primary operating company
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that generated cash.
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They took that extra cash
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and then they started doing what I'm about to share with you.
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And don't overcomplicate it.
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You've built wealth.
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This is just a safety net.
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And one of my mentors, Ken, he said it best.
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He said, making money, that's easy.
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Keeping it, super hard.
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This is about keeping it.
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So now that we're at this stage
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and you've gone through each one of those,
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just make sure you don't overcomplicate it.
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Stocks, S&P 500, real estate investment trusts,
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they're all great, safe options,
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but just keep in mind, they're for a long-term play.
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Essentially, it gives you peace of mind
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so you can focus on growing the business
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knowing these assets will compound.
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I wanna take the risk in my primary business
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where I have an unfair advantage, not in my investments.
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Here's what not to do.
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Late 20s, I get an opportunity to invest in homes.
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This was during the great financial crisis
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and banks were trying to sell and liquidate
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anything on their balance sheet as fast as possible.
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so you could buy homes, for example,
00:13:01.680
in Detroit for $8,000.
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And I bought it a ton.
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I thought I was smart.
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I thought I was a real estate guy.
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And all of a sudden, I find out the homes I buy
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are essentially were rotten and not livable.
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And there was homeless people in them.
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And I should have never gotten involved
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in the first place.
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That's when I realized I got to stick
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to what I know best, software.
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If your primary business is real estate, go nuts.
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It's not mine.
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Whatever you're best at, do that.
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If money is just sitting on the sidelines, not working,
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it's just wasted.
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I consider dollars as little workers
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and they need to be put to work.
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Here's the best part.
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You can actually leverage your liquid assets,
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these investments I'm gonna talk about,
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to buy things without paying taxes.
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Essentially, rich people that have stock
00:13:44.160
in their primary business,
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think Elon Musk with all his equity tied up in Tesla,
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he can use that stock to borrow money,
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essentially a loan backed by the stock,
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not pay any taxes because it's a loan,
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and then just take out an insurance policy
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to pay back the loan if he dies.
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It's called the buy, borrow, die strategy
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and a lot of people use it.
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The first part is you have to buy.
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That's why rich people buy stocks and they never sell them.
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They literally say, this is a portion of my portfolio
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that I'm never gonna sell.
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I'm gonna own them forever.
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And oftentimes they'll put them in a family trust
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so they can be transferred in a more tax efficient way
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to future generations.
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Second is they borrow money from the bank
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using that portfolio, that stock as collateral.
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Again, borrow the money.
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There's no taxes when you borrow money.
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so they can pay for personal assets.
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And then third is when they die,
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the life insurance pays back the bank
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for the money they borrowed
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that was secured against the stock.
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So the stock never has to sell,
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so it doesn't trigger any capital gains,
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which means they don't have to pay taxes.
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Their kids get the stock tax-free at today's value.
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This is very technical, but understand this.
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Step one, go get money.
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Step two, invest in your health.
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Step three, invest in your knowledge.
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Step four, invest in your business.
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Then five, do this stuff.
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The real question that I get asked all the time
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is what percentage of my income
00:15:01.260
should I be investing in what?
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First off, put some aside long-term.
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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,
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just so that you start to build the base,
00:15:14.740
again, that you can use as leverage and collateral
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for your first home, for a business loan,
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whatever it is, you at least have that there.
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I'm not saying you're gonna get rich off of it by any means,
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but at least you'll build a foundation
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and savers are growers.
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So you need to learn how to save.
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Invest a percentage, call it 10% is a good amount.
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I like to give to charity
00:15:32.720
because I think you get what you want for other people.
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So if I wanna give my money to people that need it most,
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I'm gonna get more.
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So I think giving, tithing, 10%, smart strategy.
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Then the other one is,
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what percent do you think you should reinvest in yourself?
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The other day I was talking to one of my sales guys.
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He makes 35,000 a month.
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He's 20.
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He's never made that much money in his life.
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He goes, look, I put 5,000 in stock.
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I've got this great apartment.
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I got a great car. I got a great life, but I still have extra money. What should I do with it?
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I said, tell me how you've invested in yourself. Did you hire a coach? Did you buy a course?
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What books are you reading? What seminars are you planning on going to? He didn't have an answer
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for that. My rule is if you have capital, invest in you and then you invest in your team and then
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you invest around people around you so everybody gets better. You have to invest in you to be that
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person. It's not about having it. So here's my question for you. Out of everything I shared,
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It doesn't matter if you have no money
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or you have a lot of money.
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What's the one thing
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that you're gonna make a commitment to?
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Is it deciding to put your health first?
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Realizing that being rich and not being healthy
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is a bad proposition?
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Is it deciding maybe you're 35
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and you haven't invested in a stock
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because you put it off someday, maybe.
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Whatever it is, I want you to make a commitment today
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to start anything, to be a better investor
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because the more you learn how to invest,
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the better your returns are gonna get,
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the better those returns get, the more you're gonna have.
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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.
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