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Ian Dunlap has become a familiar source for investment advice. As the founder of the Red Panda Stock Club, which offers leading advice and portfolio management for investors, he has earned the respect and confidence of many traders.
And he has some suggestions for those who try to decipher exactly who they should trust in a landscape where many claim to be experts.
“No. 1, ask them to make your free money,” said Dunlap in a new episode of the Podcast Financial Freestyle (see video above or listen below). “No. 2, go with your intuition. And then three, the thing I have learned about all of us who are really good, all the people who invest, we can all get along with each other. … You may have differences in shares, but there is a mutual respect among each other. Usually, if a person has no respect in that circle, there is a reason why.
Before he tells others about markets, Dunlap remembers the first moment he wished he had invested.
He said that a friend who worked at JPMorgan called him and said: “I want you to sell everything you have and I want you to invest in these five companies.” Dunlap said he ignored his friend’s advice and chose not to invest his money. In the meantime, his friend earned $ 3.8 million on his investments and was able to retire at the age of 35.
“From that moment I said I will never miss another crash,” said Dunlap. “We often think of a crash like … harmful to most people, but if you know how you can take advantage, you can produce your biggest windfall in your life.”
Now Dunlap said that he looks at the market “12 hours a day” and “maybe 1,300 bought [or] 1,400 books about investing. “He spent his time studying how the stock market works by going to the exchange in Chicago to learn from traders and view all the programs he could on the internet.
Read more: Create a share investment strategy in 3 steps
Although his friend claimed to earn millions to invest in just a short period, Dunlap is one of the conviction that by keeping a small number of investments “for 20 to 30 [years]’You will be on your way to earn considerable money.
“Because the market has become so hot and so ripe, I think that too many retail traders focus on sector rotation when you really have to stack in four or five really great companies for the rest of your life,” he said. “I don’t think you need 20 shares in the portfolio to do incredibly well. And if so, you can just get an index.”
