Donald Trump has had his share of investment and business blunders. Have you flown the Trump Shuttle or downed Trump Vodka lately? But he's also had a fair share of winners.
Even if you start ahead, thanks to inheriting a solid business, it takes acumen to build on it. And as humility isn't a strong suit, Trump has told us how to make deals just like he does.
In 1987, Trump wrote a book called "The Art of the Deal." In it, he discussed his top 11 negotiation strategies. They're not investment tips exactly. But they are strategies on making profitable deals. That's what investing is about.
Here are six of the strategies Trump outlined that are most useful to investors.
Think Big
"I aim very high, and then I just keep pushing and pushing to get what I'm after. Sometimes I settle for less than I sought, but in most cases I still end up with what I want."
It's good to have ambitious goals while investing, as long as it doesn't mean taking on too much risk. Whether long term, short term or medium term, it's important to have a target, or a plan for what you want your investments to accomplish.
Plan for the Worst Possible Outcome
"I always go into the deal anticipating the worst. If you plan for the worst - if you can live with the worst - the good will always take care of itself."
Remember, no one will see the next economic crisis coming. So investors should always have a plan to protect their portfolio from catastrophic losses. You can do this by:
Give Yourself More Options
"I never get too attached to one deal or one approach...I keep a lot of balls in the air, because most deals fall out, no matter how promising they seem at first."
Don't fall in love with a stock, sector or asset class. Make sure to sell an investment that isn't working out and move on. If you're a gold bug or think real estate is the only way to get rich, learn more about the equity and bond markets. Then when gold and property prices tumble, you'll be more willing to own other types of investments.
