JORDON BELFORT-THE WOLF OF INVESTING

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Episode Transcript

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This is Later with Lee Matthews TheLee Matthews Podcast More what You Hear weekday
afternoons on the Drive. Jordan Belfouris a consultant for more than fifty public
companies and has written about it virtuallyevery major newspaper and magazine, including The
New York Times, Wall Street Journal, Los Angeles Times. His best selling
novel, The Wolf of Wall Street, inspired the Oscar winning film of the

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same name. Jordan Belfort's new bookis The Wolf of Investing, my insider's
playbook for making a fortune on WallStreet. But let's get back to The
Wolf of Wall Street inspiring the movie. Jordan, You mean there weren't piles
of cocaine on every desk and bluechip hookers walking through the halls. Yeah,
there was was Welcome to the tothe eighties on Wall Street, a

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different time and place before before youon smartphones and everything was photographed. Yet
yeah, the fact that you didstuff and like there're stone at a camera.
They try to tigu you. Theywere holding a huge videocademy, Like
what's that camera for now? It'slike everyone's very difficult, you know.
Well, in The Wolf of Investing, you pull back the curtain of what

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you've coined the Wall Street theme machinecomplex. How do you mean? So
here's the thing. Wall Street isa funny place because it is it's like
a two headed monster. On oneside of one head, wall Street does
incredibly important work and gives massive valueto the US economy. And without Wall

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Street we'd be really screwed. Wewould not have the economy we have,
the lifestyle we have, the statementof living you have, just would because
Wall Street provides financing and investment inthe capital markets and the credit market.
So Wall Street is absolutely mission criticalfor that. But then the other side
they raped and pillage the village andcreate bubbles and rip people's eyeballs out and

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convinced them to be engaged in thingslike short term trading and trying to time
the market. And that's the terribleside of Wall Street. So the book,
the strategy I talk about in thebook is very simple. It allows
you to extract to maximize. Itsays your ability to get all that value
that Wall Street creates, but notget caught up in the corrupt casino.
So like that, which is reallywhat short term trading on Wall Street is.

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It's a corrupt casino. So becausenot only is the casino or any
casino, it's stacked against the player. Right, So in any casino,
do odds are against you slightly fivepercent, six percent depending on the game.
But imagine the only casino where thedice are also loaded against you,
so to double where me? Butthat's Wall Street? So how the question
is how do you take advantage ofall the value that Wall Street creates?
Because if you create value without havingto play in the corrupt casino, there's

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a solution to that, and that'swhat I give to the of the reader
in the book. So it's avery simple way that you can participate and
get all the massive value in thatWall Street creates and build a portfolio like
that that's a long term portfolio andothers. You're not trading in and out,
you're holding the right stocks and it'sall done for it. It's it's
so simple to do and believe itor not when you follow this strategy.

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This is a proven strategy. Soit's again it's not like I invented it.
I'm just explaining it in the wayand hopefully it's very accessible that people
will understand because you know, itseems I think one of the promises will
have is that you say, Okay, I only have ten thousand dollars to
invest. I'm just picking number righton some smaller amount of money. How
am I going to get rich withten thousand dollars Because there's not enough and

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I have to find the next Applecomputer to get rich on that, right,
I can't just you know, butthat's not true because when you invest
properly over the long term, somethingcalled long term compounding comes into play.
So if you reinvest your dividends andstart adding to the positions a little bit
of money, give me fifty toone hundred dollars a month, over time,

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you have millions of dollars waiting foryou when you're ready to retire.
That's the secret. And so Igo through this very simple strategy of how
you set up the right accounts,which funds, and you're going to be
buying index funds, not individual stocks. Now, if you want to speculate,
that's different. You can put asidefive percent of your capital and have
fun and speculate, but don't expectto make money on that. Expect to

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have fun and maybe to get lucky. You'll make money. But if you
follow the advice in the book,which is basically having a few key positions
that you're holding for the long term, reinvesting your dividends, and just having
patience. Again, nothing in lifeis guaranteed, but this is as close
as you can get on Wall Streetwith one hundred and fifty years of history

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and academic studies on your side thatsays if you do this, you're going
to end up retiring rich. That'sbasically what the book goes through. The
Wolf of Investing my Insider's playbook fromMaking a Fortune on Wall Street. Jordan
Belford is the author. You knowhim as the Wolf of Wall Street.
Jordan, I'm so happy to hearyou say what you just said, because
lovely wife is my financial investor.She's my financial consultant. She's got a

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degree in finance and a degree innursing, so I say she's a financial
nurse. But she has just recentwe started to dabble in what you just
described, investing a little amount andsome dividend stocks that we know are good
and secure energy stocks, and she'srolled those dividends back in and UH is

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going to build from there. Yeah, and that's that's the secret. I
think. I go One step furtheris to tell your wife if she's not
listening right now, is that youknow she doesn't even have to pick the
right stocks. That that's where wethat's when we get into trouble. Human
beings is a really opting it's it'sjust it's a great truth that human beings,
by our very dna with awful stockpickers, we just take to pick

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the wrong stocks. We try topick stocks and time the market, we
end up usually shooting ourselves in thefoot more often than not. There's a
way around that. There's a wayaround trying to pick stock. That is
to go and buy the index,the actual all of the stocks and that
that are being managed by by essentiallya company called S and P standard p

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was and never a committee that picksfive hundred biggest stops and they keep changing.
So every three months if a company'snot doing as well, or it's
spoiling out of favor, or let'ssay there a certain sector is becoming less
important in the economy, they adjustthese the weighting of these five hundred stocks.
So if you own this index andyou can just buy it, you

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know one of the time you ENTIbuy the index from certain companies that fell
it with no fees attached. Right. And if you do that, you're
going to always especially be in theright because other big funds have to chase
me, and if they're rebuying it, they'll buy the fault but a self
fulfilling prophecy. So all you haveto do is put it in the right
type of account. You want toput it in as many packs three accounts

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as possible. Right, it's yourIra roy diarrhea for a one k,
right, and then the rest wouldjust turn a regular account. But have
the discipline you set to reinvest thedividends and a little bit of money as
much as you can each month tothe position. And you'll be shocked that
even a small amount of money turnsinto millions of dollars over a long period
of time. That's the secret,and he gives you the secret and the

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wolf of investing, and Jordan Belfordis with us. One of the things
you pose is to not have aprofessional, earn an expert to manage your
money for you. You can dobetter by yourself except your wife, right,
right, But he hesitates, yes, And I'll tell you why a

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right, And this is this isthe trap because we've been conditioned, and
rightfully so, to seek out expertsto help us get the best results possible
for certain things in your life.For example, you know, if you're
really sick and you need to getsurgery, it's your pennis is about the
first. You'd be far better offfinding a doctor, a surgeon to do
the surgery than trying to do ityourself. If the pipe's in your house
burst and the water's leaping all over, you're going to get a much better

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result by going out and hiring alicensed plumber of expert to fix your pipe.
Safe thing goes. If you havea short circuit your house, don't
try to fix it yourself. Gofire like you canna do much better there
too, right. However, theone exception to this is hiring an expert
to manage your money to get youa better results. They will not.
It's almost guaranteed they will. It'salmost never happens that the expert beats just

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simply the novice who just buys theindexes, because after they dec their fees,
their commissions, and they then ofcourse they not not just these and
commissions, but also if you getsewing your money to manage, right,
imagine if they just take the moneyand they put it into an index fund
that does no trading, You'll say, well, why am I paying you
a fee if you're not doing anytrading. So it's almost they're forced to

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clean activity to justify their existence.So even though it's fought less efficient to
trade in and out and it's lesstax atition as well, they're forced to
because they need to have justify intheir own existence. So you're set up
with experts are engaging in more shortterm strategies. They are unable to beat
the market because the market is veryefficient, so you end up with a

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worse result by hiring an expert andsimply doing yourself. Put your money into
the right type of fund okay,that has no fees with an expense,
really no management fee. There's nothingmad as it's happened. You have virtually
no expenses because the fund is designedto have no expenses, and you're just
having patient that you are just activelyadding a little bit of money. That's

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all what you need to do.Then, of course there's a couple of
other investments you want to have inthere to balance out the ups and downs,
because again you'll have some years whereit might go down, but over
the long term, it always goesup over the long term. And that's
the secret. So you do notneed someone to sit there and tell you
what to buy, when to buyit. It's going to get you a
far worse result than following the advice. I'll give you the book and every

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app academic study, every study byyou know, they go back to what
I think eighteen eighty. Every studysays this is the way to do it,
and he tells you all about theway to do it. Jordan bell
Fort, New York Times best sellingauthor of The Wolf of Wall Street,
The Wolf of Investing, My insideutters playbook for making a fortune on Wall
Street. It's worth a read,and I thank you for joining us.

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Thank you very much. Thanks forlistening to Later with Lee Matthews, the
Lee Matthews Podcast, and remember tolisten to The Drive Live weekday afternoons from
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