Create A Repeatable Investment System: A 10x Success Principle For Investors
This Allows You To Both Delegate And Scale Your Investments!
Success Principle For Investors:
👉 Stay Disciplined
What It Is
Discipline is the backbone of successful investing. It means staying committed to your strategy no matter what the market throws at you.
When prices drop sharply, fear can push you to sell prematurely. When prices skyrocket, greed can tempt you to chase overvalued assets.
Discipline keeps these emotions in check.
You stick to your plan, whether you're investing monthly, rebalancing your portfolio, or holding through volatility. You don’t react impulsively. You respond strategically.
Why It Works
Most investors underperform not because they lack knowledge but because they let emotions take over.
Fear leads to panic selling during downturns. Greed leads to buying overpriced assets during bubbles.
Discipline protects you from these traps.
It keeps your focus on long-term goals and ensures decisions are made based on logic, not feelings. By avoiding impulsive trades, you reduce losses and compound gains consistently over time.
👉 The 10x Version: Create A Repeatable Investment System
What It Is
Discipline becomes exponentially more effective when turned into a system.
A repeatable investment system is like a masterplan for success.
You define clear, measurable criteria for every decision.
This includes what to buy, when to sell, how much to risk, and how to diversify.
Examples of criteria include setting valuation limits (e.g., only buying stocks with a price-to-earnings ratio below 15), choosing growth metrics (e.g., revenue growth above 10%), or risk parameters (e.g., never allocating more than 5% of your portfolio to a single investment).
Once defined, your system eliminates guesswork and keeps you consistent.
Why The 10x Principle Is More Powerful
A repeatable investment system guides your decisions and scales with you.
Read that line again, as it’s important.
If you have no guidance, you won’t be making the right investment decisions.
And if you have no system, you don’t know how to scale up properly.
So here’s how a repeatable investment system multiplies your results:
Reduces Emotional Noise
When every action is backed by pre-set rules, there’s no room for fear or greed.Minimises Mistakes
By automating parts of the process (e.g., using stop-loss orders or scheduled rebalancing), you reduce human error.Increases Consistency
Following a system ensures your strategy works in both bull and bear markets.Saves Time
Once your system is in place, it saves hours of decision-making.Allows for Delegation
A well-defined system can be handed off to a financial adviser, AI tool, or family member to replicate your approach!
In short, creating a repeatable investment system transforms investing from a chaotic, emotional challenge into a structured, predictable process.
This, together with the Betting Big On The Outliers 10x Success Principle, is the secret to achieving consistent returns and building wealth at scale.
Instead of merely reacting to market conditions, you’ll be in control no matter what happens.
How To Create A Repeatable Investment System
Building a repeatable investment system isn’t complicated, but it requires thought and commitment.
Here are the steps:
1. Define Your Goals
Decide on your investment objectives. Are you focused on wealth accumulation, income generation, or capital preservation?
Set specific targets:
Wealth Accumulation
"Achieve a 20% annual return."Income Generation
"Generate $10,000 in passive income per month within 5 years."Capital Preservation
"Preserve portfolio value by earning 2% above inflation with minimal risk."
2. Set Your Criteria
Valuation Metrics
Decide how you will evaluate investments. For example:Invest in stocks with a price-to-earnings (P/E) ratio below 20.
Focus on crypto assets with a market cap under $10 billion but showing strong growth potential.
Risk Parameters
Set limits to manage risk. For example:Allocate no more than 10% of your portfolio to high-risk assets.
Ensure at least 30% is in low-risk options like bonds.
Outlier Opportunities
Add criteria for high-risk, high-reward investments (e.g., emerging markets, disruptive startups, or cryptocurrencies). For example:Invest 5-10% of your portfolio in assets with potential for 10x or 100x returns.
Focus on opportunities with clear growth drivers, such as rapid revenue increases or industry-changing technology.
Entry and Exit Rules
Define when to buy and sell. For example:Buy when an investment meets all criteria (e.g., trading 20% below its intrinsic value or showing significant innovation potential).
Sell when it gains 50%, fundamentals deteriorate, or it no longer aligns with your goals.
3. Create a Diversification Plan
Spread Your Investments
Across asset classes: stocks, crypto, bonds, real estate.
Across sectors: technology, healthcare, energy.
Across geographies: US, Europe, China, India, Brazil.
Balance Stability with Outliers
Allocate 70% of your portfolio to stable investments (e.g., blue-chip stocks or bonds).
Allocate 20% to moderate-growth opportunities.
Allocate 10% to outliers with the potential for exponential growth.
Risk Management
Limit individual outliers to a small portion of your portfolio to reduce overall risk.
4. Establish a Regular Review Schedule
Decide how often you’ll review and rebalance your portfolio, such as monthly or quarterly.
Rebalancing ensures your portfolio stays aligned with your goals and risk tolerance as market values shift.
5. Incorporate Automation
Use Tools to Automate Parts of Your System
Set up recurring investments (e.g., dollar-cost averaging into ETFs or crypto).
Use stop-loss or trailing stop orders to manage downside risks.
Consider portfolio management software or robo-advisers for tracking and optimisation.
6. Track Performance
Monitor Key Performance Indicators (KPIs)
Such as annualised returns, risk-adjusted returns, and portfolio growth.
Compare Performance to Benchmarks
Use metrics like the S&P 500 or a crypto index to ensure your strategy remains competitive.
7. Document Your System
Write down your system in detail. Include your goals, criteria, processes, and review schedule.
A written plan helps you stay consistent and provides a reference during market volatility.
8. Test and Refine
Start Small or Use Simulated Trading
Test your system in different market conditions.Refine Your System
Adjust criteria if they’re too restrictive or too broad. For example:Add new rules for identifying outlier investments based on your test results.
By following these steps, you’ll create an investment system tailored to your goals, risk tolerance, and market knowledge.
Including a dedicated approach to "betting big on the outliers" ensures you balance disciplined investing with opportunities for exponential growth, positioning your portfolio for both stability and potential high rewards.
Examples Of A Repeatable Investment System
Here are three examples of repeatable investment systems for different types of investors so that you can see how they can be delegated and scaled.
1. Stock Market System: Value Investing
Objective
Long-term wealth accumulation through undervalued stocks.Criteria
Only invest in companies with a P/E ratio under 15.
Focus on companies with consistent revenue growth (at least 5% annually for the past 5 years).
Avoid stocks with a debt-to-equity ratio above 1.0.
Diversification Plan
Spread investments across 5-10 industries to minimise sector risk.
Ensure no single stock exceeds 10% of your portfolio.
Entry/Exit Rules
Buy when a stock meets all valuation criteria and trades at least 20% below its intrinsic value.
Sell when it reaches fair value or if the company’s fundamentals deteriorate.
Automation Tools
Use a stock screener to identify opportunities based on your criteria.Example
Investing in blue-chip companies during market dips.
2. Crypto System: Dollar-Cost Averaging (DCA)
Objective
Accumulate crypto assets for long-term appreciation while reducing the impact of market volatility.Criteria
Focus on top-tier cryptocurrencies like Bitcoin and Ethereum with strong adoption metrics.
Allocate 50% of the portfolio to Bitcoin, 30% to Ethereum, and 20% to emerging altcoins with high growth potential.
Diversification Plan
Limit exposure to any single altcoin to no more than 5% of the portfolio.
Include stablecoins for liquidity and staking opportunities.
Entry/Exit Rules
Buy a fixed dollar amount of each cryptocurrency weekly, regardless of price (DCA strategy).
Rebalance quarterly by selling a portion of gains from outperforming assets and reinvesting in underperforming ones.
Automation Tools
Use an exchange or app to schedule recurring crypto purchases.Example
Investing $100 weekly into Bitcoin and Ethereum since January 2023.
3. Passive Income System: Dividend Investing
Objective
Generate a steady income stream through dividend-paying stocks.Criteria
Only invest in companies with a dividend yield above 3% and a history of consistent or growing dividend payments for 10+ years.
Look for a payout ratio below 60% to ensure sustainability.
Diversification Plan
Build a portfolio of 20-30 dividend-paying stocks across sectors like utilities, consumer staples, healthcare, and REITs.
Avoid overexposure to any single sector or company.
Entry/Exit Rules
Buy when a company meets dividend and valuation criteria and trades at or below its historical price-to-book ratio.
Sell if dividends are cut or if the company’s financial health weakens significantly.
Automation Tools
Use a dividend reinvestment plan (DRIP) to automatically reinvest payouts.Example
Holding dividend aristocrats like Coca-Cola, Procter & Gamble, or Johnson & Johnson for decades while reinvesting dividends.
As you can see, a 10x investor doesn’t depend on luck.
They are extremely disciplined and have a solid, repeatable and scalable investment system that can be delegated to others if they so wish.
So if you want to be a 10x investor, you need to create your own investment system.
Start small, test your approach, and refine as needed.
And remember to allocate a portion of your portfolio to outlier opportunities for exponential growth.
This balance of stability and high-reward bets is how 10x investors build lasting wealth.
NOTE:
The 10x Factors for investors’s content is educational in nature, with examples used to illustrate the learning points. We are not financial advisors and do not provide financial advice. Please speak to your financial advisor before making any investment decision. Note that every investment comes with its own risks and drawbacks. Past results cannot guarantee future returns.
This content may contain affiliate links. When you click on these links and make a purchase, we may receive a commission at no additional cost to you. We only promote companies that we have personally used or researched and believe will add value to our readers.