 Once again, ladies and gentlemen, boys and girls and children of all ages, you're now tuned in to The Prince of Investing, coming to you guys and girls live from a beautiful state of Denver, Colorado, via Haluulu, Hawaii. Thank you for everybody that's catching this live out in Haluulu, Hawaii and online on thinktec.com, thinktecawaii.com, that is. And as always, I don't have a lot of time, and I definitely know you guys and girls don't have a lot of time, so we're going to jump straight into it. Well, you probably saw the title already that said, too smart to have a winning portfolio. Prince, what does that mean? What do you mean I'm too smart to have a winning portfolio? How does that make sense? If I'm smart, doesn't that mean I have a winning portfolio? And the question, the case is, no, that doesn't, that's not true. Just because you're smart doesn't mean you will or will have a smart, a good portfolio. The reason why is that sometimes we know too much, something I heard James Ford and told him on Wall Street, he said, the less you know about investing, the actually the better. And I said, how does that make sense? Do I have to know everything? It was like, it's nice to know everything, but the people that know the most make the most mistakes. Why is that? For prime example, looking at 2019 from January all the way until September today, the S&P 500 index, if somebody just broke January 2nd, whatever the market opened in January, didn't touch it, didn't do anything else, their portfolio or that particular position is up by 25%. Right? Now, with that said, S&P 500 was down 4% last year, but right now it's up 25%. The thing is, some people are so smart, we jump into everything, we try to learn everything. So many times I have people that send me portfolios, they have hundreds of portfolio, hundreds of positions, they have so many, they're trying to learn about underwater welding and oil in Australia, they're trying to learn about forex trading in China. They want to know about crypto currencies, they want to know about this, they want to know about that. They have a little bit of this all over the place. And they know some of everything. Prince, I know this, this, this, this and this, nothing wrong with that. Yes, you are a smart person. But we look at their portfolio, the portfolio is losing compared to the S&P 500 index. So that means somebody who just brought the S&P 500 and forgot about it is outperforming someone who knows all of these different topics, know all of these different things. Now, Prince, I'm diversified. I know a lot. Look at the biggest investors in the world. They know something about everything. That is true. But what I know is about the biggest investors in the world. They always had their little neck. They're good at something very well, where they could be real estate, it could be restaurants, it could be oil, it could be cars, buying businesses, they are all good at something. You know that old saying, master of none, that's what a lot of portfolios are. Master of, you know, jack of all trades, master of nothing. Try to master something, whether it's forex, whether it's day trading, whether it's buying stocks for the long term, whether it's where the case can be. And the thing is, a lot of us take for prime example, 2009, from 2009 to now, McDonald's. I don't have to say that, I don't have to say that. I don't have to say that. I don't know. But I just want to say that 2009 to now, McDonald's, I don't have to say McDonald's, hamburger, they're restaurant, we all know what McDonald's is. From 2009 to 2019, I don't like to play Monday night quarterback. Monday night quarterback is the person that looks in the review mirror because everything looks so clear in the review mirror. But let's look in the review mirror for example, we all know what McDonald's is. My son is a McDonald's advocate. And for his six birthday for you people that follow me, you will see that for his birthday back in 2016, two, three years ago. I want to say that particular position in McDonald's is probably up 30 something percent. But McDonald's from 2009 to 2019 is going up over like 400%, right? 400%, and why Prince, why are you bringing it up? We all know what McDonald's is, right? You probably, I'm pretty sure you've been in McDonald's or know somebody that has been in McDonald's in your lifetime. The thing is, a lot of us don't start with things that we know. For a prime example, if you work at, if you're working in a particular industry, like retail, if you know retail very well, start with what you know, retail. I'm in the music industry, starting the music industry. I'm in the publishing industry, start with the public industry. Well, you know what, Prince, I'm a housewife. I don't really do too much, but I shop a lot. Where do you shop at? Do you shop at Walmart? Where do you go out to eat? What clothing lines do you like? What cereal do you buy? Hey, you know, I've been buying general meals all these years. Start looking to things that you know about. I'm in the military. My spouse is in the military. My son, my daughter, start with things like Lockheed Martin, who benefits from the military, things like that. The thing is, we try to be so smart. Some of my dad told me when I was a kid, and I remember I was like in the fourth grade, I had an older brother, the one that's next to me. I was smarter than him at home, personal store. What I mean, I could catch on things very fast, and I wouldn't know a lot of things. My dad could tell me something once, and I had it. My brother took them two, three, four, five, six times, but I can catch it like this, and he was three years older than me. And my dad was saying, man, you're so smart. But when I look at my grades, I bring from my report cards. He would say, son, you're so smart till you're dumb. I could not translate my smarts into a report card to get good grades. Whereas my brother, he may not be as sharp as me, but he would have good grades, right? So it would be, my brother knew how to get good grades and bring good grades home, whereas I had all this knowledge, but I didn't know how to apply it to put myself in a better position. And you're so smart till you're dumb, right? It's what my dad would say, and I would look at it into the investing world. People will write me, tell me, Prince, I know this, this, this, and this, and this. And when you look at it, it's not translated into a profitable portfolio. Just like, yes, you're smart, but you're not smart enough to benefit. Reminds me of being in the fourth grade where my dad would look at my report card and say, son, you're so smart till you're dumb. Throughout my high school career, middle school, everything, I never made the honor roll. But I always was considered a little bright, but I just couldn't translate it. So the people that are listening and watching this, I want you to look at this and translate it into real success, right? Hey, I know all these things. How can it become profitable for me? And here's something from the greatest investment of all times. You guys hear me quote a lot of time. My first ever Berkshire meeting, I went to, I sat down, I saw Charlie Munger, Charlie Munger and Warren Buffett, which you can go see on Yahoo Finance. I'm pretty sure they got it back in 2017. And something that changed everything. Somebody, the first two things he said, first thing was he had invested into Dexter's shoes for $500 million, right? And the company had gone bankrupt. And I was like, wow, he's 80 something years old, the greatest stock investor of all time, and he got something wrong. So that let me know that it's okay to be wrong. Number two, somebody asked him, hey, why didn't you take Amazon? And he was saying, well, we took, we made nice investments in the Walmart, Amazon, I didn't understand it. And I was like, wow, what do you mean you didn't study? You didn't understand it. You know, you're supposed to know everything. You're the greatest of all time. And Mr. Buffett's desk on his desk, he has a box that's called Too Hard, the Too Hard box. I don't know if you guys and girls probably read about it, but he will read a proposal. That's too hard. Put it into the Too Hard box. Don't even try to jump into the understanding. His thing is, hey, I know what this is, it's simple. I like this, I can get behind this, I can get into this. That's what he likes to do, right? So I related that to myself and said, guess what? I don't have to know everything and every little piece of this, this, this, this. I have to be good at my thing or my one thing. And I look at here on this show, when I reach out to investors, I don't look at just, hey, I'm an investor, I'm a good investor. I like to look at what that investor is good at. Oh, this investor is good at restaurants. I want to talk to somebody about restaurants. I want to talk to somebody about franchises. I want to talk to somebody about maybe book publishing all the other different industries out there. And the thing about it is, don't become so smart. Don't get to reading everything that you forget to look at, the things that mean the most to you. So that's what I mean by sometimes you are too smart to have a winning portfolio. Sometimes it just takes all I need to do is keep it simple, stick with what I know, what I know, start with what I know, something that Phillip Townsend would really want to invest in, start with what you know and start investigating it and what you know. You've been working at Coca-Cola for 20, 30 years, but you're constantly looking at car dealerships, cryptocurrencies, this, this, this, and this. Have you ever thought about starting with Coca-Cola, maybe not even Coca-Cola, maybe the soft drink industry since you know so much about it? Mr. James Fuller from Wall Street said, it was a guy, one of his clients, he didn't know anything about retail, right? And he says, his client called him and said, hey, I've been working in retail for 30 years. It's this new way of retail that's coming along. It's called Amazon and it's shutting down our stores and I lost my job to it. I want to make a big investment into Amazon. So this guy, even though the broker, he didn't know a lot about Amazon or the retail industry. This person had worked in retail for 10 or 15 or 12 years. So the guy started with what he knew. He wasn't trying to jump all across something else. He started with what he knew. And then sometimes some people write me and say, hey, Prince, have you heard about the da-da-da-da? I'm like, no, I heard of it, but that's not something I'm really jumping into. Why not? It's great, it's blah, blah, blah. And I learned, don't be the jack of all trades and master of none. Find something you're good at, stick it with your good at, and master it, become the master of it. Because just because you're smart don't mean you know everything, right? So sometimes some people are just too smart just to apply their knowledge to make them a better investor. They gotta do too much. They're doing too much. You stand up all night trying to learn this, this, this, this, with me when I read, I like to read different things because I don't like dark areas. I want to know about it. I want to know something about it. But do I specialize in it? No, I go find somebody that specialize in it, right? So that's what I want you to do. Star with what you know. Don't outsmart yourself thinking that I need to do this, this, this, and this and this. When all you have to do is sometimes keep it simple. Keep it simple. Be smart. Don't try to outsmart everybody else. So just because you're smart, don't mean to have a portfolio. So that's what I want to leave you guys and girls with today. Star with what you know. Don't try to outsmart yourself. Don't feel like you gotta know so much that you gotta spread yourself so thin because it was something that Charlie Martin said. He said, I'm not quoting him paraphrasing, but he said about diversifying. He said, the people that diversify usually the people that don't know what they're doing. They know a little bit about everything and they diversify because they don't know what they're doing. I was like, what do you mean? Everybody says diversify. Don't put your eggs in one basket. If you knew a lot about Dairy Queen and you knew that this was a great company, why would you diversify? Why won't you just put all your money into Dairy Queen and Burger King? Cause you know those industries very well and invest your money like that, right? But we spread ourselves into so many different things. And when we look at our portfolio, we see our portfolio is not even matching with the stock market. Meaning your portfolio is pretty much trash and that you should throw it all away and you should probably get into the S&P 500, right? But that's the thing I want you guys to keep in mind. Don't feel like you gotta be super duper smart. That you have to know every single thing. I've seen some people in their portfolio, they have three funds, one fund, two funds. Some of them may have three that they're investing consistently and they're not even that smart. And they're beating a lot of you guys and girls that are watching and listening to this. So don't be so smart that you can't have a winning portfolio. Don't outsmart yourself. And to quote my dad, you're so smart. Don't be so smart till you're done, all right? But anyway, that's my episode for today. Don't forget to hit that like, subscribe, comment and share but drop some comments if you got below. Check out the description box to follow us all of our great platform. Again, my name is Prince Dykes. I'm the Prince of Investing. Until the next video, podcast, cartoon, or whatever else you see me do crazy around the globe. Peace, be safe, I'm out and thank you.