By: Dividend Sensei
Over the years Shark Tank hasn’t just been a source of entertainment and inspiration for me, but it’s also helped make me a better, and more successful investor.
Shark Tank is my favorite TV show, not just because I love the inspiring stories of how people from all walks of life and around the world come to the US to work hard to achieve their American Dream, but for the actionable insights the “sharks”, self-made millionaires and billionaires, offer as they analyze various investing proposals.
In fact, Shark Tank has been one of the key inspirations for my own evolution as an investor over the years, along with the timeless wisdom from history’s other great investors (like Warren Buffett and Peter Lynch).
So here are three valuable lessons from the show’s 10 seasons that can hopefully help you improve your portfolio’s returns, avoid some costly financial mistakes, and maximize the chances of achieving your own American dream.
To Improve Your Returns Run Your Portfolio Like A Business
A lot of people watching the show are both inspired and intimidated by stories of people quitting their jobs, risking their life savings, and sometimes going deep into debt in order to start a business and chase a dream of building and growing a financial empire.
But the truth is that thanks to the wonders of the stock market, we can all be entrepreneurs. In fact, the best way to think of your portfolio is as a business, because anyone investing in the stock market owns actual pieces of a company.
If you invest in the S&P 500 then you own part of a financial empire with tens of millions of employees, operating in over 200 countries in every sector and industry, bringing you a small portion of that cash flow from every corner of the globe (via that paltry 1.9% dividend).