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Shaquille O’Neal, the NBA Hall of Famer, has seen significant success off the court, largely thanks to early investments in companies like Google, Ring, Apple, and Lyft, contributing to his $500 million fortune.
However, he admits that his journey to becoming a savvy investor wasn’t always smooth. "I failed many times," Shaq shared on CNBC’s Power Lunch in 2019. “From like, 19 to 26, anybody could come to my office, tell me that deal, and I would take it right away. No research, no due diligence.”
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Over time, Shaq learned to approach investments more thoughtfully, ultimately improving his financial outcomes. His evolution as an investor offers valuable lessons for everyday investors aiming to master due diligence.
Create a game plan
Planning is the first step for any investor. Professional portfolio managers and investment advisors often offer new clients a questionnaire to create a formal Investment Policy Statement (IPS). This statement outlines the client’s risk tolerance, risk capacity, preferred assets, growth targets and retirement goals.
Prudence in financial matters comes more easily when you have great advisors in your corner. If you want advice on how much cash you should hold in your portfolio, and how to invest for safety in this market, consider finding a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Cultivate high quality sources of data
Good investors know that knowledge is key. Warren Buffett reportedly reads 500 pages a day, and Mark Cuban spends three hours daily reading. But with information overload and unvetted advice on social media, it’s easy to get overwhelmed or misinformed.
69% of young Americans have encountered financial advice on social media but only 31% have verified the credentials of content creators supplying the information, according to a survey by Forbes Advisor.
For better outcomes, it’s essential to cultivate high-quality data sources such as established publications, investors with a real track record, and newsletters from industry professionals.
Moby, an investment research platform created by a team of former hedge fund analysts, provides high-quality stock picks backed by in-depth analysis. With its stock picks outperforming the S&P 500 by an average of 11.95% over the past four years, and over five million users already benefiting from their insights, Moby makes a strong case for its financial data — simplified into easy-to-understand reports.
With Moby, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Regardless of your source of information, if you plan to tackle investing on your own keep the following in mind:
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Test your hypotheses: To validate your hypothesis whether a stock will outperform, find trusted information via statistics, consumer surveys, sales data or market research from financial experts.
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Focus on valuation: After testing, check if a stock’s price is justified using valuation methods like price-to-earnings or discounted cash flow analysis.
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Establish a margin of safety: Buffett advises buying stocks below their intrinsic value to reduce risk. Aim to purchase 10-20% below a stock’s fair price to create a buffer against market swings.
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Stick with it: Shaq’s early missteps highlight the need for persistence. Successful investing requires ongoing learning and refining your strategy to achieve better outcomes — just as he did.
Think you’ve got the basics down? The next step is finding an investing platform you can understand and trust. For those looking to build wealth responsibly and avoid the temptation of risky, get-rich-quick schemes, Public offers an innovative approach to self-directed investing with a focus on transparency, community, and long-term growth.
Public is a commission-free, self-directed investing platform that lets users manage diverse assets — including stocks, ETFs, crypto, and alternative investments. The platform helps you make informed choices through real-time insights and social features where you can chat with other investors.
Unlike robo advisors, Public provides control without automated management, promoting transparency by rejecting payment for order flow in favor of an optional tipping model. With fractional share investing and a high-yield cash account, it’s designed to help investors build wealth gradually and responsibly.
Real estate as a steady alternative to the stock market
Real estate is compelling because it offers potential for steady income and portfolio diversification. Investing in property has long been a go-to for creating reliable cash flow, yet today’s high home prices make direct ownership less accessible.
If you’re seeking entry into the real estate market (without breaking the bank or the added burden of property management), there are modern platforms that can accommodate those needs.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide, guided by proprietary underwriting and market analytics typically used by large institutions.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. With a minimum investment of $250, you can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest in the properties of your choice in as little as 30 seconds.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.