Kevin O’Leary explains you should aim to have $5,000,000 in treasury bills — Transcript

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1. 0:00You should strive very hard if you're an
2. 0:02entrepreneur to have $5 million in
3. 0:04T-bills, not in anything else, just
4. 0:08T-bills, making 3.82% this morning. You
5. 0:12know you've made it and you've
6. 0:13safeguarded your family for the rest of
7. 0:15your life if you can get $5 million
8. 0:17liquid in T-bills. Most people that
9. 0:20consider themselves very successful
10. 0:22entrepreneurs do not have $5 million
11. 0:25liquid in T-bills. They don't.
12. 0:27>> But what net worth should you be at to
13. 0:29have to justify $5 million in T-bills?
14. 0:31>> Well, you should be at The first thing
15. 0:32you should do is get to $5 million
16. 0:34liquid. Be worth $5 million liquid.
17. 0:37That's far more valuable than anything
18. 0:39else. Liquidity with wealth is actually
19. 0:42a superpower. Most people say I'm very
20. 0:45wealthy, but they couldn't raise a
21. 0:46million dollars by 2:00 in the afternoon
22. 0:48if they tried. It's tied up in all kinds
23. 0:50of things they think are worth a lot
24. 0:52until the hits the fan. The plan
25. 0:54is, if you're an entrepreneur, the
26. 0:56hardest thing is to make the first
27. 0:57million, really hard. And when you make
28. 0:59the first million, put it in T-bills.
29. 1:01Just as hard, but not as hard, is to get
30. 1:05to 2 million.
31. 1:07Two to three is actually quite easy cuz
32. 1:09you figured something out. But where you
33. 1:12get undisciplined is you start buying
34. 1:14you don't need cuz you're mad at
35. 1:16yourself to get to $5 million liquid. I
36. 1:18You have to have $5 million liquid to
37. 1:21call yourself a successful entrepreneur.
38. 1:23And I don't care who say who disagrees
39. 1:25with me, they're wrong. But if you have
40. 1:26a net worth of $5 million, why would it
41. 1:28all be in T-bills instead of having it
42. 1:30in S&P and international index funds?
43. 1:32>> Because whatever happens, you're safe.
44. 1:35And your family.
45. 1:36>> So you say get to $5 million T-bills and
46. 1:37then anything after that you can
47. 1:39>> After that After that, stick it in and I
48. 1:41do go into stocks, go into alternatives.
49. 1:44The nut is $5 million.