# How to Invest Your Money Like The 1% Source: https://www.youtube.com/watch?v=2WEMhpDOnsw Recap page: https://rapidrecap.app/video/2WEMhpDOnsw Generated: 2026-01-06T15:01:00.382+00:00 --- ## Quick Overview The top 0.1% invest their money by prioritizing self-investment in health and knowledge, building a "Centurion Council" of mentors, and then strategically reinvesting business profits into high-leverage areas or assets secured by collateral, rather than holding cash or buying non-income-producing assets like personal homes. **Key Points:** - The top 0.1% follow a fundamentally different investment strategy than the general public, prioritizing self-investment first. - Stage 1 of wealth building is investing in your foundation: prioritizing mental and physical health, as being healthy allows for 1000 goals, while sickness reduces focus to 1 goal. - Stage 2 involves investing in skills and knowledge by paying for access to mentors, courses, and books (like Keith Ferrazzi's 'Never Eat Alone'), which provides proven blueprints. - Stage 3 is building a 'Centurion Council' of 100 mentors (25 authors, 25 operators, 25 coaches, 25 peers) and actively engaging with them using the PAC method (Proof, Ask, Close). - Stage 4 is investing in your business by deploying 20-30% of quarterly profit into the highest leverage opportunities, often through reinvestment cycles involving mentors, tools, and systems. - Financial assets are treated as collateral: the wealthy buy stocks, never sell them, borrow against them tax-efficiently, and use life insurance proceeds to pay off the loan, effectively buying assets without triggering capital gains. - The ultimate goal is to buy back time by hiring people to take over tasks, thus avoiding becoming a slave to the business and allowing focus on growth. ![Screenshot at 01:45: The video outlines a four-stage framework for investing like the 0.1%: 1. Invest in Your Foundation \(Health\), 2. Invest in Your Skills & Knowledge, 3. Invest in Your Business, and 4. Invest in Financial Assets.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-01-45.jpg) **Context:** The video, presented by Dan Martell (a Canadian entrepreneur, author, and angel investor), outlines a four-stage framework for how the ultra-wealthy (the top 0.1%) invest their money and build wealth, contrasting their methods with common, slower approaches. Martell emphasizes that wealth accumulation is not just about making money but about keeping it and multiplying it through specific, disciplined investment habits focused on self-improvement and strategic business reinvestment. ## Detailed Analysis The video details a four-stage approach to investing like the top 0.1%. The first non-negotiable step is Stage 1: Invest in Your Foundation, meaning prioritizing physical and mental health, because health provides the capacity to pursue thousands of goals, whereas poor health restricts focus to a single survival goal. Stage 2 is investing in Skills & Knowledge, achieved by paying for resources like mentors, courses, and books, exemplified by the speaker's early commitment to reading Keith Ferrazzi's 'Never Eat Alone' to learn networking strategies. Stage 3 focuses on building a 'Centurion Council'—a list of 100 mentors (25 authors, 25 operators, 25 coaches, 25 peers) who are 1-2 years ahead—and reaching out using the PAC script (Proof, Ask 1 specific question, Close for a 10-minute call). Stage 4 involves investing in the business by setting aside 20-30% of quarterly profit to deploy into the highest leverage opportunities (like marketing, sales, or delivery) to unblock constraints, rather than holding it as cash. The final principle involves financial assets: the wealthy buy stocks and hold them forever, using them as collateral to borrow money tax-free from the bank to pay for personal assets, thus avoiding capital gains taxes and allowing the stock portfolio to compound tax-free. The ultimate goal of this system is to buy back time by hiring specialized staff to manage operations, ensuring the CEO can focus on high-leverage activities that grow the business. ### The Four Stages of Investing - 1. Invest in Your Foundation (Health) - 2. Invest in Your Skills & Knowledge - 3. Invest in Your Business (Reinvest 20-30% of quarterly profit) - 4. Invest in Financial Assets ### Foundation Investment - Prioritize physical and mental health, as health provides the capacity for 1000 goals, while sickness limits focus to 1 goal (0:53). ### Skills & Knowledge Investment - Pay for shortcuts like mentors (e.g., Keith Ferrazzi) and books to learn proven methods rather than relying on trial and error (1:54, 2:00). ### Building a Centurion Council - Create a list of 100 mentors (25 Authors, 25 Operators, 25 Coaches, 25 Peers) and use the PAC script (Proof, Ask 1 specific question, Close for 10-minute call) to connect (4:05, 5:55). ### Business Reinvestment Cycle - Set aside 20-30% of quarterly profit to deploy into high-leverage business areas (marketing, sales, delivery) to remove constraints (10:15). ### Financial Asset Strategy - Buy stocks and never sell, using them as collateral to borrow money tax-free from the bank to fund personal needs, preserving capital gains tax exposure (12:30, 13:53). ### Ultimate Goal - Hire people to buy back your time, ensuring you are not a slave to the business and can focus on high-leverage activities (10:07, 16:15). ![Screenshot at 00:04: The speaker introduces the topic by showing a luxurious, open-concept living space overlooking the ocean, contrasting with the common perception of how the rich invest.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-00-04.jpg) ![Screenshot at 00:08: A flashback shows the speaker as a younger man working on an old CRT computer, illustrating his early days as a software programmer before achieving wealth.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-00-08.jpg) ![Screenshot at 00:14: A graphic presents the speaker alongside highly successful figures like Elon Musk \(implied by the Tesla reference later\) and Google founders, positioning him among high achievers.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-00-14.jpg) ![Screenshot at 00:53: A visual comparison shows the difference between being 'Healthy' with '1000 goals' and being 'Unhealthy' with only '1 goal' left, emphasizing the importance of health as the foundation.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-00-53.jpg) ![Screenshot at 06:42: A graphic illustrates the 'Reinvestment Cycle' where Profit is used to invest in Mentor, Tools, and Systems, which then generates more Profit.](https://ss.rapidrecap.app/screens/2WEMhpDOnsw/00-06-42.jpg)