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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.”
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.
If you’re not working with an advisor, you could always take a generic questionnaire online to create your own plan.
However, for those looking to take their investment strategy to the next level, finding a trusted financial advisor quickly through platforms like Advisor.com, for instance, can help you reach your long-term financial goals faster – whether that’s saving for a house or your retirement.
Advisor.com is an online platform that simplifies the process of finding a financial advisor you can trust – matching you with several vetted fiduciary advisors who can provide you with a personalized plan based on your current financial situation and future goals.
Take a few quick minutes to answer some questions about yourself and Advisor.com will instantly match you with a financial advisor for free. From there, you can book a free, no-obligation consultation to confirm if your match is right for you.
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.
Regardless of your source of information, if you plan to tackle investing on your own keep the following in mind:
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.
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.
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.
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.
Interested in buying shares of vacation properties? Arrived, backed by world-class investors like Jeff Bezos, makes it simple to add rental assets to your portfolio. Through its user-friendly platform, investors of all income levels can access SEC-qualified rentals and vacation homes with flexible investment amounts. Simply browse their curated selection of homes, choose shares, and start benefiting from the income and appreciation potential. You can get started for as little as $100.
For accredited investors with $50,000+ who are looking for even more security in their investments, First National Realty Partners (FNRP) offers institutional-grade opportunities in grocery-anchored retail — a sector that tends to weather economic volatility well.
FNRP manages the entire process, allowing investors to earn passively while benefiting from their expertise and partnerships with major brands like Kroger, Whole Foods and Walmart.
You can engage with experts, explore available deals and easily make an allocation, all in one personalized portal.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
