Alex Hormozi: Billionaire Recession Advice: Stop Investing in THIS (2023)

Last updated: Jun 18, 2023

The video is about Alex Hormozi's investment strategy shift due to changes in the economy, and he advises against investing in banks and instead suggests investing in U.S. treasuries.

This video by Alex Hormozi was published on Oct 30, 2022.
Video length: 07:27.

In this video, Alex Hormozi discusses how the economy has changed in 2022 and how his investment strategy has shifted as a result.

He explains the risks and low returns of putting cash into a bank account and suggests investing in U.S. treasuries instead, which he sees as a safer and higher-return alternative. Hormozi also shares his three-phase investment strategy, which includes investing in learning skills and coaching, applying it to the S&P 500, and using a barbell strategy with stocks and real estate.

He concludes by sharing billionaire recession advice to stop investing in banks and shift towards safer and higher-return alternatives.

  • The economy has shifted in 2022, and investment strategies need to change accordingly.
  • Investing in banks is not advised, and U.S. treasuries are a safer and higher-return alternative.
  • Real estate, crypto, and stocks have all crashed, making them risky investments.
  • Investment strategies should be adjusted based on personal financial goals and available resources.
  • U.S. treasuries offer lower risk and higher returns, and loans can be taken against them for up to 80% of their value.

Billionaire Recession Advice: Stop Investing in THIS (2023) - YouTube

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Shift in Investment Strategy

  • The economy has undergone a massive shift in 2022, and Alex Hormozi's investment thesis has changed.
  • He has taken all his cash out of banks and put it somewhere else that is both safer and gets him a higher return.
  • The way you put your money has to shift because the economy has changed.
  • He advises against investing in banks and instead suggests investing in U.S. treasuries.
  • Real estate is hanging on by a thread, crypto is crashed, and stocks have crashed.
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Putting Cash into Banks

  • When you put cash into a bank, you're actually writing the bank a loan to then loan your money and get something back.
  • You are a creditor of the bank, so if a bank goes out of business, they owe you money.
  • The bank will either loan money to the government by buying bonds or loan it out to people on mortgages and things like that.
  • Right now, banks pay between 0.1 and 1 percent annually on your money.
  • The FDIC is completely bankrupt, and if it exceeds the insured amount, you get stuck in the bankrupt company.
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Investment Strategy Shift

  • The first chunk of Alex Hormozi's life was SME 500.
  • He put all his excess cash into learning skills, getting access to people, coaching, mentorships, workshops, etc.
  • Once he had more money than he could possibly reinvest in courses and coaching, he started applying it into the S&P 500.
  • The third phase came post-sale, where he applied a barbell strategy, with stocks and real estate on either side and private equities of the companies he owns in the middle.
  • In the last two years, he has made five investments that represent 10 percent of the cash he has.
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Billionaire Recession Advice: Stop Investing in THIS (2023) - YouTube

Investing in U.S. Treasuries

  • Alex Hormozi's investment strategy has shifted towards buying U.S. treasuries.
  • U.S. treasuries are a better alternative that is lower risk and has higher returns.
  • You can take loans against treasuries for up to 80 percent of the value.
  • The U.S. government is more likely to pay you back than a bank.
  • Banks are happy to take your money and go make five percent on it and pay you 0.1 percent.
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Investment Strategy Shift

  • Invest where you have knowledge and understanding.
  • Billionaires pick a few things they understand and do a lot of them.
  • Service-based businesses are where Alex Hormozi thrives.
  • Invest in private deals where you have an unfair advantage.
  • Invest in yourself first, then in indexes, and then in your main game.
  • Singular focus on doing what you know and doing it better for an extended period of time leads to success.

Watch the video on YouTube:
Billionaire Recession Advice: Stop Investing in THIS (2023) - YouTube

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