19 Episode results for "Andrew Stotz"
1709: Andrew Stotz: Avoid these 6 Ways to Lose Money!
"Welcome to the conscious millionaire. Show episode number seventeen zero nine. This is Andrew Stotz host of my worst investment. Ever podcast. And today I will reveal how to avoid the six ways to lose your money. Welcome to conscious millionaire. The number one show very conscious entrepreneurs and CEOS on a mission to build a highly profitable business that makes a positive impact on Egypt's discover how to make bigger money. Create a bigger impact and live vigor. Live you're listening to the conscious meaner network her by over twelve million listeners. In one hundred ninety countries now join your host Jay crowder. The conscious meaner mentor master. Nlp Coach Speaker and author of the Number One international bestseller unconscious millionaire. Grow Your Business by making the difference. Alot this JV. And I am so excited you decide to join us today. I want you to think of this. Not as a podcast or radio show. It's actually an entrepreneurial training and what you can learn the mindset the strategies the execution. So that you could build a highly profitable business and make a positive impact helped me welcome our featured guest in one thousand nine hundred ninety two left a management career in California to teach finances Thailand and has not stopped teaching since nineteen ninety-three. He found his life calling as a financial analyst. And during that time he co-founded coffee works. Thailand's leading B2B specialty. Coffee Roaster and he runs a stotts high net worth investors my guest today. Andrew Stotz Andrew. Thank you so much for taking time to be with us today. Thank you for having me on the show. You know. We've had an opportunity to get to know each other and it's really exciting. What you do. I've been to Bangkok into Chiang Mai Thailand. Wonderful country and gotta say not the least of which reasons is. It has some amazing fruit. Let's just call it? What it is. Thailand has some fantastic food andrew. You are on a mission to make a difference. What's the positive impact transformation? You want to help your customers achieve. I WANNA HELP. People avoid making investment mistakes and all the pain that they feel from that so I want them to avoid well. That leads actually right in today. Andrew as a financial analyst has analyzed ways that people lose money some painfully. 'cause you try them out right and then said Oh. Wow ouch. This isn't so much fun. I have to admit I've tried out a few as well so I think this could be a lively conversation. We're GONNA be talking about how to avoid the six ways to lose your money and I think we should just plough right in what what is the first way that most people can can typically lose money. So I've I've I've interviewed now. One hundred and fifty people. Plus I had five hundred. People submit written stories of loss to me. So we're talking about six hundred fifty stories that I've looked at and the number one mistake people make is that they failed to do their research. They didn't do due diligence correct and they didn't do their own. Sometimes they listen to someone else and they just said that's good enough for me so that's why it's very interesting so this would be true whether it's about their business whether it's about a stock whether it's a stock they might be buying on the market whether it's about a company they're investing and taking some position in a smaller company so it's a lack of due diligence and what is what the remedy for that in a way that's going to be really easier to implement because a lot of people were going. Okay I can see how that'd be true but the truth is I don't know what due diligence to do great question and I just want to highlight one of the interviews that I did a guy named Joe Cya and basically. He bought a house to flip any made a major mistake in that is he didn't do the inspections necessary. He went without that full research and he bought the house and it was a disaster one after another and so what I learned from his story. And what I've learned in my life is that when you have a research an investment idea. Stop whole lot a piece of paper and write down the idea. The potential gains that. You're expecting why you're expecting that. This is GonNa work right down in fact used this moment do it right now. Use this moment to write down even everything great about this investment of what you're so excited about and why you. WanNa make but write it down and that is the first step of getting your research. Research started what's the second way that people often lose money? So here is the second way in that is they. Failed to properly assess and manage risk. So let let let before we go farther because I actually deal with this in my book as well so I'm curious Would you define risk the way you define it? And I'm going to define risk because I agree with you. Most people don't even if you're not to procure be honest with yourself. Are you on a daily basis going? Should I make this product or that product or get involved with this affiliate program or be on this stage? Have you really analyzed the risk or even thought about the risk I find? Most people are not thinking about that. But how do you define risk? Well I'm GonNa let one of my guests defining his name's Jeremy Newsom. He had been investing a little bit of money in the stock market. Since he was young he asked his dad for some money to invest in the stock market. He had been following silver and he put his dad's money in silver. He was you know twenty one at the time and he had no no risk management at all. He put one hundred percent of his money in. He didn't have any way of he didn't have any plan. What if silver went down? He never thought it would go down so he had no limit orders to sell or anything correct and then what happened was he also bought a derivative instrument instead of the underlying silver and the the price of silver quickly went down by about twenty or thirty percent and because he thought that derivative instrument he lost all of his money but to make matters worse what he revealed next was that the money that he lost was one hundred percent of his father's retirement savings. And what I learned from this. Is that separate your research between return the first step that we talked about and risk the second most common mistake and take that same piece of paper and write down the risks that you know that what could go wrong with this investment that you can't get your money back that it could go down. What are you going to do when it goes wrong? And so the idea is to create a risk reduction clan and if you're investing in the stock market it's a little bit easier because you say well we just put a little bit in any new idea new stock and I set some sort of stop loss to say you know if it falls by twenty percent. I just got to get out because I don't know what's going on. But when it comes to investing in for instance startups and all that the risk becomes a lot more complex because you get trapped into that investment. It's not as easy to get out so there's many different steps but the most important thing to do is right down the risks and tried to assess each of the risks and then think. How can I manage that risk? I think that's excellent advice. Enter I'm going to add to it from my perspective on risk because I realized that most people let's take a stock again and let's say it's a High Beta stock so it might go thirty or forty percent. They don't think about the fact that also means it could go down thirty or forty percent. So they're only assessing the upside so I defined risk is the probability that you will not achieve your objective so so the more risk there is like that example stock that can go up thirty or forty percent can also go down thirty or forty percent. Because it's a high moving stock is going to move faster than the stock market. You've got to assess how much profitability is it that you're actually not going to get your stated outcome and think about that. What's number three? What let me just add onto that this very hard when people get excited about an investment idea. It's hard to look at the risks and I'll just give an example in my own case. How how I've worked on it in the coffee business. Coffee works my best friend. Dale runs the business in my job is really to advise him and think about our strategy and we had been looking at expanding in the market across Asia one particular market and basically. We agreed of this. Dale would research it and then present everything positive about this opportunity. I would not go against anything I would let just bring it all on and then we would have that meeting and then in the next couple of days later we would have the meeting about everything that would go wrong in this investment. In that way. I'm not threatening his idea of what could go right. It's just that we have to take the time to look at what could go wrong. So separating your investment you know your research on the gain from your research on the risk. I believe is a way that we can overcome this. The thing I think that's absolutely critical as well So let's move to number three because we just have a few minutes before we go to break to. What's number three driven by emotion or flawed thinking So that's what you were beginning to catch on to so that you hear about something you think. Oh my gosh. This is better than water. Everybody on the planet is going to be buying this in two years from now. I'll be living in the mansion with the private jet correct and so the the the way you overcome this. Is You try to find opposing views. And then once you do that finally when you get it all together. You try to talk with a knowledgeable and objective person about it and get their feedback. It's the only way I can figure out to overcome some of that. Emotional and flawed thinking number. Four number four is missed place. Trust many people. Just give their money to somebody. It's amazing how critical there are in their life in their business but then as an entrepreneur they have extra cash someone calls them and says. Hey I got this great investment and you know next thing you know. They're wiring the guy ten thousand dollars or one hundred thousand dollars. So what I say is the way you overcome this misplaced trust. Is You get to know the person you're investing with and remember that trust only can build over time. There is no hack or shortcut to building. Trust I absolutely agree with that one as well. So I'm I'm curious folks. I didn't have a Andrew. Tell me before the show. Would THEY BE But you know I have a series seven twenty four in the past. I've done you know trading in the market and so I've learned a lot about these and unfortunately made some of these mistakes Number five failed to monitor their investment. So they put the investment and then five months later they go. Oh yeah wonder how that's doing right and nobody nobody even good friends and family is going to just naturally take care of your financial interest. You must monitor it so what? I'd say the way you overcome this is that you follow a regular free determined monitoring process when you invest in. Let's say your friend's GonNa Start a restaurant. You can invest you. Tell your friend right from the beginning in writing. I'M GONNA WANNA update once a month. It doesn't have to be more than half an hour. But you need to predetermine the way that you're GonNa Monitor that investment and that is number five number six enter. This one is really hard. I didn't know how to classify it. But so many people lose all of their money in startup investment. So I'M GONNA say number six is invested in a startup company. So yes so. It's interesting because some joining a group that that's exactly what they do And so I think the thing to remember our our several one is if you're going to be an early stage company the more that they have already gotten some capital owners have already proven their product and the interest in the market the better so that's still a startup that still in the early stages so they may have seven figures income. That's enough to get some idea. There's market actually like it. So you're supposed to assist the nice idea I think that another thing is the quality of the management team. Have done it before if you know. People who've got bill successfully built companies and brought them to the point. They could go public or they could be sold to another entity rather than having to abandon them or lot better risk and then. I think it becomes you know on easy terms. Maybe it's the eighty twenty principle that eighty percent of your capital are going to go into established companies established real estate things that are already proven that are on a growth range and so you didn't get into middle and the beginning but maybe you're getting in the middle of a growth cycle nine and you've had another ten years to go and only twenty percents going into these highly risky Where you you know. I've talked to investors who do this on a regular basis out of ten companies. They invest in. They only expect one to be a home run. Yep that's a critical point. You just made they invest in ten. What I say to overcome this one is start from this reality. You are likely to lose everything startup. Investing is binary you don't just you know. Investing in the stock market is not. You know if you just to buy a stock at one hundred and he goes down to seventy and you think I'm out of this. I'm selling you still have seventy but when you spy into a startup. It's very possible that it will go to zero and you never get anything back. So then that means don't invest invest a small portion of your wealth in startups number one but number two is never invest in one startup. Try to invest in a way that you can invest in three to five startups. And that's hard. There's more and more networks. That are starting to help people to be able to do that. But many people just go in and start to be an angel investor. I think I'm GonNa Invest In my friends. Start up. And then they put all their money and then that money's ends up being gone. I think these are all great principles and I would suggest that you listen to this part of the show again again you can go to conscious millionaire's show dot com. Scroll down to today's topic of void. The six ways to lose your money. We're here with our featured Guest Andrew. Stotz he's the host of my worst investment ever podcast. We'll be right back with the twenty four hour. Challenge the millionaire entrepreneur questions so stay tuned. Hello entrepreneurs this. Jv You know during this time of crisis it's easy to panic or get overwhelmed with fear the grocery stores look like war zones and the Airways and Internet are filled with nonstop recession and corona virus. Fear Creating News. Truth is some entrepreneurs will fail and go out of business. Some could lose everything however others will thrive and prosper even have their best most financially successful year ever. I want you to be in the second group. The entrepreneurs who prosper help more people and put more money in their bank account. That's why I want you to attend the Special Online Webinar on providing titled Prosper Twenty Twenty Webinar. Get the exact steps to take in order to prosper in twenty twenty to sign up. Go to conscious millionaire DOT COM FORWARD SLASH PROSPER. Twenty twenty again. That's conscious knowing. Air Dot Com forward slash prosper twenty twenty. I look forward to meeting you. At the Prosper Twenty Twenty Webinar. Sign up now at conscious millionaire dot com forward slash prosper twenty twenty. Welcome back. This is Jason crump the third of the host of patches millionaire show and I am so glad that you're still with us we're here with our featured guest Andrew Stotz. We've been covering six ways to lose your money and how to avoid them. He is the host of the my worst investment. Ever podcast. I want to give a special shout. Andrew Simpson Bangkok Thailand. I've been to Bangkok. What an amazing place to visit. What incredible place to live. I want to thank all of our listeners and fans in Bangkok Thailand as well as Hudson Ohio and now it's time for the twenty four hour challenge Andrew. What's the twenty four hour challenge for everyone listening today so for those who are beginners about investing in the stock market? The challenge is take the first step of opening or investigating a fund management or brokerage account at a company like the vanguard or fidelity or something like that take that first step for the beginners. So we'll have that again. If you're jockeying driving at the gym plus the baby carriage or taking the baby carriage and the dogs for a walk you could always go to conscious millionaire show dot com. We've covered you. We've got all the answers to the questions. Were about to answer on the show notes and now. It's time for the millionaire entrepreneur questions I want to start with mindset. What is your mindset for discovering your best business opportunities openness constantly being open to new ideas and not arguing with them letting them come and exploring all of them so anything becomes a possibility to look at so you don't throw any idea out. Initially you're willing to talk about anything. My mind is a funnel I love that Ad. So what would be a strategy that any entrepreneur listening today could utilize to become more profitable to make more prophets? There's four ways to increase the value of a business. I call it rear as in your but revenue expense asset and risk and in my world and life in the world of finance. I know these to be true so what I would suggest that any entrepreneur do today is right down. The words revenue expense asset risk and put next to it one action you can take to increase revenue one action you can take to reduce expense one action you can do to reduce assets in your business or get more out of them and finally one step that you can take to reduce the biggest risk. You're facing in your business right now. Take that to your management team and discuss it and start to take action so that twenty twenty is a more profitable year. You know at conscious milliner. We have a formula for creating wealth. It's conscious focused accident literally. You can utilize this formula to create wealth in any area of your business or your life. But there are many ways to define wealth and I'm curious what action do you take on a daily or regular basis to make a bigger contribution to the world so the most important thing for me is to capture the best time of my day. I believe that my mind only has two to four hours of real pure concentration time so for me. I tend to wake up between around four. Am and I tried to focus my mind and my energy very hard for the first four hours of my day and the purpose of that ultimately is to help to make better products are serving my clients. Better better courses better books all of that stuff. So I try to focus the first four hours of my day on the highest priority activities. A remind you that Andrew Stotz is the host of the my worst investment ever podcast will have a linked to that unconscious millionaire show dot com. What's a book that you'd like to recommend a book that really turned around? My life changed. My life was a book called the six month. Fix by Gary Sutton S. U. T. O. N. what's the book about? Basically I love his opening line. He's his opening line in the book. Is Hello you are the if you're reading this you are the CEO. And when I come you leave and the reason is because I can do what you can't or you won't do. And basically his point is that sometimes we get attached to our businesses in ways that prevent us from doing the right thing and when I saw that I was about to lose. We were about to lose our coffee business. Many many years ago after the nineteen ninety-seven crisis in Asia. And all of that and I read that book and I thought to Myself. I'M GONNA I'M GONNA show this guy in this book that I can make the changes in our business that we can make the tough decisions in our business and that's really what this book got me to do. So that I didn't have to meet the turnaround guy that was taken over my business and then making it successful and profitable so I love that because it's about hard truth and I find that when we're willing to have hard truth ourself with have the most success is. I've told people I've made mistakes. And they've often times involved other people who didn't say fulfill their role right but when I take one hundred percent of that responsibility I drive all that responsibility to me. Because after all they could choose to clean up their life or not clean up their life. But I'm the one here to clean up my life and make my business stronger and make my contribution at a higher level so just take all the responsibility folks. Don't worry about blaming anyone. At of course there are other people who might have contributed through situation but but blaming them even one percent takes away from your power to grow faster and to take care of the problem and so it's always better to take all the responsibility because after all if you take all the responsibility you get all the growth and you'll end up with all the success and that's really what you wanted to begin with. What's the best way for listening to reach out if they want to learn more about your coffee company or what you're doing in terms of your investment and all the advice that you have is a financial analyst the easiest way to do that is just to go to my worst investment ever? Dot Com and in there. There's two ways you can contact me through the contact form which will come directly to me. The second way is that you can actually leave a voicemail. A voice message which there's a button on the site that you could click that and send me a message and I will be in touch with you. Well you know you've been building businesses and and you know your finance expert and you. Have you know books out as well? What what is the next summit? Where do you want to go next? Andrew and what might be an obstacle or challenge? You have to overcome to reach it. I have four in the last two years I've created for online courses and my goal is to get five thousand people into those courses and through those courses on various subjects those subjects from valuation. How Value Your Company? The subject is how to start building your Wa L. for beginners. The subject is how to give a great presentation. About how what I've learned in that area and the final one is what I learned from my one of my first features Dr Demming and that is how to transform your business with Dr demings fourteen points. Those are my four courses. I want five thousand people in them. I love that. I'm what's the legacy that you WANNA leave? Andrew I think my legacies very simple and that is that I want to leave a legacy that I helped other people achieve their goals. And we'll be right back for the going deeper segment. We're going to be discussing wealth building and the stock market so stay tuned. Elo entrepreneurs this. Jv You know during this time of crisis. It's easy to panic or get overwhelmed. With fear. Truth is some entrepreneurs will fail and go out of business while others will thrive and prosper even have their best most financially successful year. Ever I want you to be in the second group the entrepreneurs who prosper and help more people. That's why I want you to attend the Special Online Webinar. I'm providing titled Prosper Twenty Twenty Webinar. Get the exact steps to take in order to prosper in twenty twenty to sign up go to conscious knowing air dot com Ford Slash Prosper. Twenty Twenty again. That's conscious millionaire dot com forward slash prosper twenty twenty. Welcome back this. Jv crumble third. I'm your host. It's a conscious millionaire. Show I'm here with our featured guest. Andrew Stotz lives in Bangkok Thailand. That's worried tailing from today. And he's the host of the my worst investment ever podcast to gay. We've been discussing the how to avoid the six ways to lose your money. You can get all the answers the questions we've been asking as well as the information links at conscious millionaire show dot com. Just scroll down to see the title of today's show of void the six ways to lose your money and now it's time for the going deeper segment. We're GONNA be talking about wealth building in the stock market. I know you have a book as well how to start building your wealth investing in the stock market. So why don't we start with? Why is the stock market? A place over time. That actually has less risk than many of the things that we've talked about on the show the first reason why that's the case is because you can get in and out very easily if you were to walk down the street and see a restaurant and invest ten percent you know. Put intemperately your money into that restaurant and the owner of the restaurant uses that money to build a business. It's very difficult to get out of that. Investment but the stock market you can get in and out of very very easily so what? What are the ways that anyone listening? And we're not giving investment advice won't be clear about that. We have a disclaimer at the end of every. Show what we're doing is giving you information what you do with it is up to you. So what are some of the ways that someone maybe hasn't been investing in the stock market but wants to build wealth over time wants to be sure they have a retirement wants to perhaps pay for the college education of their children? What's a great way to get started? that's going to diversify their risk. So I WANNA put a parameter on that so that they're making smart decisions and taking into consideration risk which was one of the six ways you can lose. Your money is not paying attention to risk. Well when I wrote this book how to start building your wealth investing in the stock market. I wrote it specifically for five people. Those five people were might five nieces. My five nieces did not study finance and I can say not. One of them is interested in watching the financial news. And any of that. So what I wanted to do in the book was tried to help a beginner. Think about how they could start investing. Now what I would say that one of the most riskiest things you could do is put all of your money in one company or one investment therefore what I advise my my nieces and I talk about in the book is said why not put your money in every business in the world if if you did that the point is if one goes bust and other ones rising so you've eliminated what we call company specific risk so the first most important thing for a beginner is don't make crazy bets on one stock or something like that. Look at an instrument that owns every stock in the world. So one of those that may not be every stock but looking at index funds. Were you for instance have everything in in in the mid cap? Everything that's in large-caps everything this value stocks so that you're investing across the board everything that's in the sap so you've got five hundred stocks in the SNP that are representative of some of the strongest growth. That's going on in the world in at least within American companies yet. I think that the challenge there is that you know yourself. Jv as well as myself. You know we've done a lot of work on the area of finance but what I've found with my nieces. They were not interested in even thinking about Should I be in growth or Siberian? The S. and P. Five hundred or is it large-cap now or all? Those things are very big complications so I decided that I would teach them just own every single company in the world. And then you're not having to make this allocation decision of should I put more in the US or non US in value? Get rid of that decision and just own every stock in the world. And that's part of the simplifying principle. What I like to do because remember the book is how to start building your wealth. And so what's the instrument that they should utilize consider researching to be in every company in the world so this Kinda ties every listed company every public correct. Yes and I think this is where you know really the first step for anybody is to to call a mutual fund company on their hotline. And ask them you know whether that's vanguard whether that's fidelity or Wendy that Schwab or any other call them up and asked him what what fun do you have that owns every stock in the world. And they're going to have a fun now. They may say oh. You don't WANNA own every stock in the world. You want to own this or that or something. Forget about that. Just think about that one fund and there's a few of them each one of those Companies has one of those funds at owns every every listed stock in the world. So once you get started with that that's the first step what is it. Let's apply some of the the six ways that they could lose their money and apply them here so for instance they simply by the all the world's stocks but then they still ignore it and don't pay any attention to what's going on in terms of financial cycles that are going on and there will inevitably be folks one of the things you can count on with one hundred percent guarantee but unfortunately not one hundred percent ability to predict is that there will be financial cycles that are both world based and geographic based. I think the first thing is that In this case the research that you want to do is by calling the broker. We talked about failing to do research calling the Fund Management Company. Talking about looking at your option of these different com these different options of owning every company in the world in some ways for beginner there. My nieces were relying on my research and what I was saying. Is that if you own every stock in the world? You're reducing your company specific risk. But you still have the risks at all. The stock market is high. I don't know if I should put money in. That brings us to the next point. One hundred and ten minus your age. Now my nieces were twenty at the time I started them invested so if we take a hundred and ten my on his twenty I said ninety percent of your money should be in that all stocks in the world and ten percent of your money should be in some sort of bond fund that owns every Bonn in the world or every bond in the US and this is a massive risk reduction. Reduce her so. I like to say that. Owning every stock in the world is like having a seatbelt on and blending in small portion of bonds is like an airbag. Those two risk reducers are massive that and that brings us to the thing which is trying to predict a cycles. Like you know we always expensive. Should I put money in? You know? I always be careful about lump sum investments but if you're just contributing on a monthly basis to build your well it doesn't matter whether the stock market is high or low or in the middle because chances are you're going to retire at age sixty seventy whenever that is so. You're trying to hit a number. That could be twenty thirty forty years away and you're going to be much more in pain if you don't start investing consistently on a on a monthly basis than you know if you don't start compared to if you put money in sometimes at the peak and you put money sometimes in at the bottom that will even out. Is there anything else that you would like to advise entrepreneurs that are building wealth in their business and as you begin to build wealth you start having cash flow and some of that cash should be reinvested in your business? It might be reinvested through more marketing. Because now you can bring more leads in brick and through your sale cycle and and if you've proven your sale cycle that's a proven way that you can grow your business but then at some point you need to start taking money out. What is your advice to those entrepreneurs that have not yet looked at taking the money out? How do they start making that decisions to win? They should do that so the first part is obviously in early. Gross stage of Your Business. You're going to have to keep investing and growing the business so there's not a lot of choice at that time. Also remember that you are. You are in a high risk investment. You've invested your whole life in trying to make this business generate cash flow for you and so therefore when you look outside of Your Business and you start to get some money that you can invest. I find that Most entrepreneurs have a lot of confidence by the time they get to the point that they're generating a lot of cash flow and they bring that confidence into the stock market and they get crushed. They've listened to the advice of others. They do some research and they don't realize that the stock market is a very complex place. It's a lot like a casino. And so what I WOULD. Highly recommend is that they see themselves as being in a very high risk endeavor which is their startup or their business and therefore their their strategy in the stock market should be much more Reduced risk and. That's really what I'm explaining so I like to explain it. This way create grow and protect your well. The entrepreneur creates wealth through their business. Some people also create wealth through their salary. My Dad created wealth by keeping his expenses massively below his income and my mom and dad were able to do that over time but many entrepreneurs created out of their business. You grow your wealth in the stock market and then you protect following the six ways and six strategies that we talked about. We're here with Andrew Stotz. He lives in Bangkok Thailand. He's the CO founder of coffee works. He's a financial analyst. And we've been discussing both how to avoid the six ways to lose your money and then how to not only create money through your business but how to grow and protected and how to start building your wealth investing in the stock market. I WanNa thank you for showing up today for showing for yourself not for. Jv and Andrew at some level. You were attracted to the show. I would trust your intuition that this was this show that provided you information that you actually need to take your next step is an entrepreneur to build a highly profitable business that makes a positive impact and then to grow your wealth as well so that you can have both a wealthy and fulfilled life if you have any questions about your company. I'd love to hear from you. Just send me an e mail or voicemail. Those links are at the top of conscious new in air show dot com. And today's show brought you value. Then I would be absolutely thrilled if you tell another entrepreneur no that you know about conscious millionaire show because we want to impact as many entrepreneurs we can and get them on a truly conscious path to building your wealth by making a positive impact. I look forward to connecting with you on the next conscious millionaire and Andrew. Thank you so much for being are featured guest today my pleasure. It was a great time. Thanks for listening. To conscious million immediate PODCASTS radio network the host producer and owner of the show distributors and broadcast media. Make no claims that the tragedies and information discussing show results in providence and may result in losses. The advice from the host guests do not necessarily represent those are the owner staff management or broadcasters show illegal counting or financial or health advice is made in the show. You advise a seek counsel naturally to Your Business. Financial investments or other legal matters from license advisors always going to tell you a physician or license advisor prior to making any changes in your diet exercise program planning any health strategies or Information. Scott on the shows now information provided baby suitable for your situation as always take full responsibility for decisions and actions you take including responses that they create in your health.
Cameron Herold Dont Let Your Mindset Block Your Next $108-Million Investment
"Maybe they were dressed more casually maybe they hadn't shaved maybe they were overweight maybe they weren't attractive. But. I judge them as not being successful and I used to avoid spending time getting to know them at the expense to myself. So because I would judge very quickly I would often miss out on opportunities. Hello Fellow risk-takers, and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that the winning investing you must take risk but to win big, you've got to reduce it. This is Andrew Stotz a stotts academy where we help people facing four different challenges investors who want to better manage their stock portfolio aspiring professionals who WANNA learn, how to value any company in the world business leaders who want to make their companies financially world-class in even beginners who just WANNA learn how to implement a simple lifetime investment plan. Join US for free at my worst investment ever dot com slash academy, and get instant access. To my short course, called six ways to lose your money and six strategies to win. This course comes from what I've learned from all of these podcasts interviews, and now on what this show this is your worst podcast hosts Andrew Stotz in I am here with featured guest Cameron herold Cameron are you ready to rock or read it enter Thanksgiving? I'm really excited to have you on and I need the audience will get to know why. That is but I really am interested in business and about how we grow our business and how we grow it profitably and I've listened to your story actually from various bits and just really excited to bring you to the audience. So let me tell the audience a bit about you cameron. herold is the founder of CO alliance and second in command podcasts and he is known around the world as the CEO. Whisper and he is. The mastermind behind hundreds of companies exponential growth camera, build a dynamic consultancy by speaking not from theory. But from experience, he earned reputation as the business growth guru by guiding his clients to double their Prophet and double their revenue in just three years or less Cameron was an entrepreneur from day one at age twenty one, he had fourteen employees by thirty five, he built his first two ladies and gentlemen. That's two one, hundred, million dollar companies. By the age of forty two cameron engineered one, eight, hundred got junk spectacular growth from two million to one, hundred, six, million dollars in revenue and three thousand, one hundred employees and he did that in just six years and that ain't no junk. Not only does camera know how to grow business, but the current publisher of Forbes magazine called him the best speaker I've ever heard cameras, the author of the Global Bestselling Business Book Double Double in its seventh printing and multiple translations around the world as well as meetings suck, and the miracle morning for entrepreneurs look for all of these all of these books on Amazon you can find them right now cameron take a minute and filling tidbits about your life. Thanks Andrew Guy I was I was groomed as an entrepreneur who grew up in an entrepreneurial family by built a number of brands dementia. There's actually two other books now in Britain, five bucks up last two are vivid vision, and Free Pr. co-authors you mentioned the Miracle Morning for Entrepreneurs With Hal elrod. So you have written the five bucks. I've done eight speaking events to groups of entrepreneurs in twenty six countries on six continents. And bother of two kids that I live part time in Vancouver Canada part time in Scottsdale Arizona. Yeah I'm one interesting thing about you that you mentioned before was that you came to Thailand in nineteen ninety one which was a whole different world. Thailand. Was At that time I did I actually had a business venture that I was trying to pull off in Thailand that was not my biggest mistake ever. But one of my big mistakes I spanked couple of weeks in Bangkok and Chiang by buying products that I was going to ship back to. Canada resell and ended up getting a kind of. A good deal on shipping all my stuff and they were going to avoid some taxes in regulations and turns out that only twenty percent of my stuff that I bought ever made it to Canada. The other eighty percent probably never made it out of the warehouse. So I got scammed up in Chiang Mai and learned a lesson that if it seems too good to be true, it probably is. Exactly and you know I would love to just talk briefly about some of the the Agana question for you know the books that you've got for instance, the double double fantastic and thinking about how to grow your business and everybody knows the Miracle Morning and Hal elrod in in your collaboration and working together with Tim is pretty amazing. I've learned a lot about how to start my mornings and I do I actually do to start my mornings with a pretty serious routine that I never very rarely interrupt but the book about Free Pr I've listened to you talk about that on podcasts and it's just like in some ways it feels like There's hundred dollar bills all around us and we're just not picking them up. So we're not seeing them and that's the feeling I felt when I listened to you talk and what you've been through and just curious out of all the different books and all the different things. How would you encapsulate kind of the most important lessons that our listeners should take away from all the work that you've done over the years? I think a big one for me has been that I was never a. Smart Kid. In school I was always told to pay attention in stopping. So distracting and sit still I would study in my hardest and I'd get sixty two percent. I'd study some more and try my hardest and get a tutor and I'd get sixty four percent and was all the way through high school on all the way through university I was a sixty, five, sixty, two percent student. So I learned that the. Cheat sheet already existed. The shortcuts are the answers were in the back of the textbook. There were smart people that I could hire to do stuff for me. Instead of me doing it, I could just get them to do it and I started to realize that working hard wasn't the path to success, but working smart was, and so as you mentioned, there's hundred dollar bills lying around, pick him up and I don't. Understand, why people will listen to a book listen to a book or listen to a podcast is no podcast or go to a conference and not do what they're being told to do in other some really really good tips out there earn if you would just take them and run with them, you're GonNa do better than trying to figure out on our own. So for meat from in these dancer, rip off and Duplicate So I like that I mean I guess, one of the questions I have to continue on with that line of discussion is just the idea that. Why is it that people don't do it I mean you like you say it's out there I. Mean Books are out there and I mean I can say, even myself I've read some books and I put them in actions and other I haven't. But I'm just curious. Why do you think that people aren't doing it? I think that we were unknowingly conditioned by the school system to think that we had to be smart and we had to memorize everything it had to be difficult and that that we weren't allowed to collaborate we weren't allowed to get the cheese. We weren't allowed to look up the information, but the reality is now everything is an old book exam. You know the information is there go look it up and then just do it but we ended up trying to somehow overcomplicated for ourselves. And one last question on this, and then I'm GonNa get into the big question and that this question is for those people in the pandemic time you know and they're coming out and trying to get their businesses back up and running the there. I'm just curious from from your experience with double double and on all of your speaking in your consulting. What specific advice would you give them? If they're kind of thinking how am I going to get my revenue out in up out of that out of this current situation? Put everything on like just really really become a mom maniac around focus. So revenue solves every problem right? Gross margin solves every problem. There's not a single problem that exists that a check can't solve and really spend your leadership team time your management team time, your board of advisors time you're thinking time you're reading time you're listening to podcasts time around how to grow revenue you'll grow revenue, but you have to do that almost at the expense of other areas. Of the business. So right now, I never believe in full balance. You sometimes have to let a couple things slide and become monomaniacal maniacal around a couple to really get the amendment going, and then you can course direct. So if this is a quarter to really drive revenue than everything you do to be focused around driving revenue and you have to get the other stuff off your plate or let it go for a while it'll be okay it will be later. Fantastic advice and yeah. When you think about all the major accomplishments that each of the listeners out there has achieved it's probably has been achieved by putting your head down and saying, we're going to focus on this one area I. Think About My own dissertation when I was working on that for my PhD. Seven months every single morning I three hours of every single morning. I got to work on this and I did and it took seven months by state on Amtrak and I got my dissertation done pass by PhD, and it was really a lot of things did have to be pushed on the wayside and I think any time you try to achieve something big or something that's a real challenge for you. That's part of it is that you are sacrificing other things at the time which you know sometimes it's not the right time for that but if now is the right time. Yeah you're you're clear readers while you got a shelf full of books behind you. So you remember Tom Peters. When he wrote the book in search of excellence talked about mono maniacs with emission Yup, and that's always stuck with me to truly be successful you had to become maniacal around that one thing. Yeah for the listeners out there that that particular book Tom Petersson what was the waterman I think was the other author in that that book but that that was the Bible at the time you know that you're referring to. So yeah good good memories. Well, all right, thanks for that. That's a lot of great nuggets there but now it's time to show your worst investment ever since no one ever goes into their worst investment thinking it will tell us a bit about the circumstance leading up to it and then tell us your story. Oh, it's funny is behind. You on the bookshelf over your left shoulder is a book by somebody Tim Ferriss and Tim Ferriss is involved in the story. I didn't know that the book was going to be there Jim wrote his first book the four hour workweek Tim is heavily involved in this story. So I met Tim Thirteen fourteen years ago this story by the way, cost me one, hundred, million dollars and it only cost me about thirty minutes to make the mistake that cost me one, hundred and eight billion, and it's a true pure gross margin gross profit hundred, eight, million, dollar loss. Out. I judged. they judged in the past tense I used to judge people based on the way they looked. I was naturally gravitated to the good looking guy good looking woman who looked successful dress successful carry themselves well. In my mind those were the successful people. And I missed the people that didn't look successful. They may be were the millionaire next door maybe they were dressed more casually maybe they hadn't shaved maybe they were overweight maybe they weren't attractive. But I judge them as not being successful and used to avoid spending time getting to know them at the expense to myself. So because I would judge very quickly, I would often miss out on opportunities. So years ago the summer of two, thousand eight. And I haven't emailed approval of this. I invited Tim Ferriss to come into his first time at burning man who was going to be my second time at burning man and Jim said, yes, you would come. And cited, he was GonNa rent an RV and he called me two nights before or burning man he said is it okay if he brings a friend with him on I said sure bring your friend. So he's like my friends and entrepreneur unlike it's OK bringing whatever he does. He's GonNa. Bring a freezer filled with fudgesicle 's popsicles. I'm like it's great. Just bring your friend. So he brings his friend and Tim friend didn't quite fit in with our group that year and it wasn't their fault. It was my group's fault the they didn't embrace them. So they of became the outsiders to my group. And I became very cognizant that was off in the middle of these two groups. So I tried to spend more time with my group in smile core, instead of Tim and his friend and these other two friends that he brought in. And one, night late at night, his friends wanted to pitch us on a business that he was starting. And there would have been an investment opportunity to invest in those days I would invest twenty, five thousand as my. Wouldn't want to lose it, but it's not gonNA kill me if I lose it. But that would be my investment into a company. So around that same year, I invested in fifteen five in tiny pulse, a couple of other brands that have done well. But this one was a significant miss and it was because I wasn't giving this time this guy the time and wasn't getting to know him enough that when he pitched me on his I d I. Didn't give it credit. And I also thought because his first business was such a silly one. That his second business wasn't going to be very successful. So, when he was explaining to me how you would go to an APP. We didn't know what an APP was. We didn't know what the APP store was. The APP store was this launching a huge trying to explain the APP store we thought it was going to to a corner store at a mall he's like, no no, it's on your phone. So he didn't make much sense and and then when you were on this APP, you press a button and a taxi or limousine would come to you and we're like us the stupidest idea we've ever heard so of the former of us that judged him and didn't give him the time to get to know him did not invest and Tim didn't Dust Tim put twenty five thousand dollars into Uber. Is Not to invest the Uber and a twenty five, thousand dollar. Investment, the day they IPO. Eight. billion. Dollars. And that was Garrett camp who was the original CEO and founder Uber and other Canadian six months before he hired Travis Selma come on board. As a CEO I was pitched to give in on prior to it would've been a founders round it would have been prior to series I. And I said no to that which turned out to Tim was Tim's twenty, five, grand one, hundred and eight, million dollar investment. And it was because I judged and didn't give someone the tie. Didn't get to know them and my lessons since then has been. To not judge a book by its cover end to try to get to know people, and so I often now will go to conferences now go to events and I'll just sit with people who don't necessarily fit in. So. About five years ago I was at the main Ted Conference I go to the main Ted every year it's a five day event. Now Bill Gates is in the Audience Sergey Brin together chip Wilson Lululemon. Aliabad coffee the number of times. So you sit with these very, very uber successful CEOS venture capitalists from around the world and I saw this guy who was very disheveled than kind of not that clean. Hair was kind of unkempt shoelaces run tied I. Sat beside him because I kind of felt sorry for him but I also wanted to know who he was, which was very opposite from from who I used to be. And I'm sitting talking to my so what are you doing I want clean the ocean including the atmosphere and everyone at Ted is doing something on a big way. So I'm like whatever this guy is gonNA clean the atmosphere and the ocean but I'm like I need to know more. So I'm going to talk about it and then Bill Gates comes over his his addison. So wonderful to see you and he gives us a hug. And then two minutes later Al Gore comes over gives us a hug and then cameron has comes over and says, hi to him I'm like are you like I just sat beside like the Superhero of the group I don't even know you are and it turns out it was Allison Fisher who was the original founder and CEO of our s and verify embarrassing that you see on every website he built two billion dollar companies, but it doesn't really have friends or family. So he's donating all of money to try to clean up the atmosphere and the oceans. So that was my. Reading. My lesson was you know was hard learned in now I really worked hard to just get to know people. All right. So let me let me summarize what I took away from that that It's a little bit. It's always painful I. Mean Look at the things, the opportunities that we missed, but also you know there's a, there's a particular bias particularly when it comes to investing in that, we look at the opportunities that we miss and we have regret and all that. But it's always important to remember that there's millions of opportunities that were missing every single day and so you know obviously the first thing is don't beat yourself up over but yes, when that one happens. It's just terribly painful but I think one of the lessons that I learned and I remember someone telling me me this many many years ago is don't compare your insides to other people's outsides now that had to do with the idea that everybody's broken in one way or another inside. But it also reiterates the point that outside you know people most people are trying to keep up a facade and trying to you know look good and you know and it can be intimidating can be overwhelming. I can remember when I first started as a financial analyst. I was like how how are these guys? So sure what the prophets are going to be of this company a year from now? I mean there were like really sure and I'm I'm sitting there trying to calculate isn't thinking I have no certainty whatsoever I must just not know the secret that they all know and then now as I teach young people I say were all making it up. It's just those guys made it up in a much more compelling way and they presented with much more confidence and so I think that that's lesson number one is this idea of not judging you know what you're seeing at face value. Yeah. Mine was also just getting out of my comfort zone and getting to meet New People as well. You know really getting to know them connect head I spent a few days getting to know because it was on day three probably just have I spent a few days getting to know him. I probably would have invested. Because I would have known him. I would have spent time but I I, it was uncomfortable getting to know him because my my friends didn't really liked them right away. So I I let that influence me and my insecurities kept in. Know I didn't tell anyone who tim was because he didn't want people to know. So we call them Tom and so there was no like star actor around him that had people biasing their decision. It was just Tom. With this guy with a stupid idea. So I let I bias get in the way a little bit. And that brings up to the next lesson that I learned. It's about mindset and how do we overcome mindset? We're shaped by our pass where shaped by our emotions were excite by our judgments and. In some ways, it goes back to that question I asked you the beginning, which is like one hundred dollars bills sitting all around and people you know like the the Free Pr Book and and what you've talked about about, you know how to get pr it's like so obvious. But mindset is such something that holds us all back in one way or another and I guess that's the the other lesson from it that I'm thinking about anything that you would add about mindset. Yeah I think by mindset is I'm very introspective and by also blamed myself instead of others for everything. So. You know other people can say, well, it was because the environment or oh, well, it was because you were busier. Oh well, it was the party scene oath. Now those are all excuses like I missed it because of the way I treated the situation I missed it because I judged I missed it because I didn't connect. So I'm very good at blaming my contribution for the problem first, and that's been a big lesson that I've carried with me for a number of decades that that I. Think I- lesson stay because I don't externalize anything like I know why I got my crappy grades in school because I didn't focus and I didn't really try to focus and I realize that it didn't really matter. So it's not like I wasn't smart enough. I didn't apply myself. I was too busy partying and running businesses and chasing girls and smoking pot and I had a great time in university that was ski racing I'm not kidding myself in thinking that I wasn't smarter I shouldn't try. So I think that's been a big lesson from you as well as the introspection blaming myself i. I so based upon what you've learned from this story and what you continue to learn what one action would you recommend our listeners take to avoid suffering the same great. To go into the situations and actually try to meet the people that you wouldn't necessarily try to meet some of the smartest people in the room are the ones that aren't talking. The ones that are listening in writing notes, learning and paying attention, and not trying to get seen or get known. They're they're learn I sat beside a Guy Robert Allen who is big in the real estate space and we were at a conference together years ago for two days. A second day this guy finally puts his hand and asks the question like I hadn't heard this guy talk for two full days and then afterwards somebody's like. One hundred eighty million dollars like what even even like we didn't need to say anything he already knows he's successful he's not there to prove himself. He's there to keep learning. So it's going to talk to those guys or women right ones you aren't saying much might have more to learn from them. Your guests that also highlights another lesson for a person like myself, for instance that loves to talking. Is for all of the listeners out there that were good at talking. We'd like to talk. It sounds like part of that lesson is listen. God gave us two years and one mouth right? Let's using that ratio. We talk. So. True. All right. So last question, what your number one goal for the next twelve months. Number. One goal for the next twelve months. On the business side, it's really focusing on growing the COO alliance but that's not my core might call right now I'm very, very cognizant about the time that I have left with my kids who are eighteen or nineteen, seventeen, one of the going into second year university this year, and thankfully he's at home for four months because cove he can't go away back to university. My second son goes to university in twelve months and really feeling the sense of loss already. So it's it's about having meaningful time with them and meaningful connections with them and. Not Wasting my evenings and just spending time with them. That's beautiful and I think that's something that we often miss. We talk about hundred dollar bills laying around. The hundreds of millions of emotions that we can gain that sitting around. I know. I've been taking care of my mother for the last four years and one of my friends said, you know ten twenty years from now you're going to look back and you never gonna no matter how hard it was a frustrating it was you're never gonNA regret one minute of what you've done and so I believe when you know you're never going to regret the next twelve months of what you're doing. So hats off to that. I. Agree my mom, hostile eighteen years ago I'd give anything to have one more day with her alone for years. It's been amazing in after this call I'm going to go in and sit down with my mom and sit down the balcony and coffee. It's amazing. So we gotta enjoy each day as we have it. Well, listeners there you have it another story of laws to keep you winning. Remember to go to my worst investment ever DOT COM Slash Academy to get access to the short course as to lose your money and six strategies to win. As we conclude Cameron I. WanNa. Thank you again for coming on the show and on behalf of Aced Starts Academy I Hereby Award You Alumni. Status for turning your worst investment ever India best teaching moment. Do you have any partying words for our audience? I guess partially is just the member of the none of this Oxley batters at the end of the day we're all GonNa. Die Islets have fun along the journey. Let's have fun along the journey. Well, that's a wrap on another great story to help us create, grow and most importantly protect our wealth fellow risk-takers. This is Andrew Stotz, your worst podcasts hosts saying, I'll see you on the upside.
Darin Kidd Losing Everything Compelled Him to Build a Better Life
"I was debt free money in the bank four one K. at handsome investments. In my early twenties I trusted someone that moved into our town who said, Hey, look if you pay me up front I can go build your dream home for you for this price. Any walked off in the middle of it. Low Fellow risk-takers and welcome to my worst investment ever stories of lost. Keep you winning in our community. We know the to win an investing. You must take risk but to win big, you've got to reduce it. My name is Andrew Stotz from Stotts investment research, and I'll be your worst podcast hosts today and I'm here with featured guest. Daring Kid Darren, are you ready to rock? I am ready Andrew. I'm excited. Let's do this. All right. Let me tell the audience a bit about you. You know. I stumbled upon you on the Internet and have been impressed by what I've seen. So I'm under share with the audience. First thing is Darren. Kid Is an entrepreneur who has achieved success in various arenas. He was a top leader in multiple seven-figure Earner in the network marketing profession building, massive teams all over the world. He has owned profitable franchises and has built his online digital brand, which is now consumed by hundreds of thousands of social media followers. He has been featured in various magazines and books and was on an advisory council with the infamous John Maxwell and he has been interviewed. Grand Cardona. On Grant Card TV which personally I would have been terrified during that time. Currently he's talented speaker trainer and mentor to others. However, he was not always successful businessman over twenty years ago he was bankrupt and felt like a failure and that is what this podcast is all about. But he managed to emerge from that experience with a unique perspective and I will until attitude on life and Darren I, love that one I was just repeating myself this morning. It's a great attitude. He generally wants to help people be more do more have more in life Dan. Take in Philly for tidbits about your life. Right Andrew I appreciate that always like working with like minded people you've had a lot of success in your world. It's I really appreciate the opportunity. So hope everyone is having an awesome day. So far of you're just listening to this and you're not watching the video just trust me when I say I look just like the rock but different. Battery yet I mean, I'm not as big as the rock state haircut that's about it. So I guess you'd call me the pebble right beyond my wife and I only have five kids we live in a small town in Virginia, which may explain why have the hair but my my kids are you know from twenty seven down to twelve very blessed to have three girls and two boys and my wife and I met hostile and Rocca for about a year and a half we both went to college in you got back together. So got an awesome family very. And I'm excited. I Love Helping People Yama share a little bit about my story. Yeah. When we get into it but I believe that a lot of you that are listening to this can get some things that can absolutely change your life. Especially, you heard all the great things right but I've been able to accomplish but it's not those things that are going to make the biggest impact. It's what I share with you that led up to that. So Andrew. Thanks again, I'm excited to get started and you know I have two questions for you before we get into it. The first question is, how do you manage your time with five kids? I mean I I am single and I live with my eighty two year old mom I'm mom she's my biggest fan and basically already overwhelmed with all the stuff that I do how the heck do you manage it with a wife and five kids? And it's awesome that you're living with your Momma Momma's boy do so we have a lot in common. So I guess we could say great minds think alike interest us. Well, I? Mean it's awesome because it's I don't really were have to go out to work my business at his work my business while I'm out in I believe faith family than finance. So I just put my priorities in water. I've had some really good coaches and mentors that have taught. Me Haven't make the most out of my tom in it's constantly a battle for me just to be honest with big nick, go-getter but sometimes to slow down to go fast and prioritize, make sure that you're not just active but you productive difference activity in productivity so. I'm learning and growing every day. So it's about progress nap perfection and keep reminding myself of that when you really have that attitude, they look you know that progress not perfection if I can get a little bit better every single day and if you remind me, I'll tell you how that philosophy completely changed my world here in just a second it is about progress not perfection we're not saints. So, one other question recently, I understand that you've pivoted career path maybe you could just tell us a bit about what's going on in your life there and what you're learning. Absolutely yeah. So for years you know what I was looking to go out and and have a better life for my family as very frustrated. I didn't make it through college and. I'll share the rest of the story here just a second, and I was I got into the network marketing profession because it was a minimum investment in the naked learn allowed skills where I was looking at franchises at that time and I was like you have to be rich to have a franchise in later on a handsome branch is is but you know I was in network marketing as a distributor for twenty eight years you know I own multiple franchises did extremely well. With those and. Also built online digital brand as you mentioned it and I was very blessed. I knew I wanted to do it didn't know how to do it but I had the right mentors that. I went in and seek out the taught me what to do the help me have success in those things you know success leaves clues, and so with all of that, I always had a goal to be able to go out and train coach consult because I remember how I felt when I felt like I had no hope and I was depressed and I'm like man, what do I do and then I had the right people came into my life changed everything, and so I've always had a passion wanting to do that myself and so being able to you know just a few months back. fulltime I'll step out of the network marketing professionals. The distributor franchises have been sold in I in full-time training seeking coaching mentoring people, and it has been a huge blessing even with the things that are going right now with Kobe in quarantine If you ask the right questions you can have good answers have been able to do that and some excited new career path, but it's going extremely will fantastic. Awesome. Well, now it's time to share your worst investment ever, and since no one ever goes into their worst investment thinking of we'll be tell us a bit about the circumstances leading up to it and then tell us your story. Okay. Yeah. So maybe a year and a half of college. That's all I could go. Right and your was at twenty twenty one because I knew I wanted a better life for my family but I really didn't know what to do and so I ended up failing from eighteen to twenty five to the point will not twenty one year old was warmer on government assistance. You know we had a car repossessed we were on Medicaid applying for food stamps I went to the doctor for depression on antidepressants in really didn't have a lot of hope and what led me to that was a hired someone. I was debt free money in the bank four one K. at some investments in my early twenties. I trusted someone that moved into our town who said, Hey, look if you pay me up front I, can go build your dream home for you for this price. Any walked off the middle of it. In everything he had done to the House day-to-day twenty in Jackson level. The floors about Dacian off were off it underpriced the house is from debt free perfect credit money in the bank or Wednesday new cars bankrupt repossessed car couldn't be my kids could support my wife. You know depressed burt in a pretty quick in pretty quick fashion almost overnight. And that's how I ended up. You know. Make the Horse Investment at that point however, looking back an avid female another, what you're GonNa ask me next there was one of the best things that ever happened to me. So let me ask you at I'm always interested about you know specific days. What are the days that you remember over that period of time either the day that you said, this is right amount to do this and you sign or the day that you realize. This is it's all falling apart and I've now got to do something I never thought I would have to do. Any days that stand out to you though yeah, it's funny because you said I will until let me tell you how that came about. So what happened was you know growing up my parents my dad always go Sunday we'll go through this and someday we'll do that with my dad passed away ten years ago saying some day in something never came. Learned that some people Sundays or other people's everyday's in Sunday league. So townhall nowhere, and so here I was at Saint Pattern with my family wanting a better life. It's we have this big coca-cola plastic piggy-bank. We just got rid of it a few years ago we had for decades and we were putting change in it and we told my daughters someday will go to. Disneyworld just rolling up we didn't give vacations we will grow right and so one day she walks in and my wife and our our bedroom with that change we had dumped out the piggy bank it. We were going through the change to try to get enough to get something to eat she runs in Rennes the room seeing dad take her money for Disneyworld runs out crying. And I remember being hands in these one. God How can I get this low to I'm stealing money for my kids piggy bank and I remember when you know what that's it. And sometimes it hurt bad enough. You know it has to hurt that in with the draw line in the sand. Former that was on the porch in his rocking chair at a neighbors walking binders, they Mr your dog is laying on a nail. Don't worry about it. What hurts added up he'll get up and move will sometimes dead her bad enough. You know breakthroughs happened when they asked to happen. So that was the line in the sand I go out. Had it I will until I would have put that on my wall, put it everywhere, and then a mentor bonds dare you know success is buried right underneath frustration. Memorable have to be close because I can't get any more frustrated and that was the day that everything started to turn around. You know I stopped a pity party for myself in not going you know what or pitiful may I'm a victim because looking back I learned that it's not easy to make us rope. You know we don't grow easy tops. So if you have the decision to make do I let this, make me bitter or better do. I use it as a stumbling block or a building block. Am I just go through it or not gonNA grow through it. So if you would've told me when I was went through this challenging times, they look man, this is one of the best things that ever happened to you. It's awesome. They took your car. It's awesome. You can't feed your kids and support your why it is awesome that you feel like a total failure in life and Mitchell on. The could do college couldn't keep a job. You know man, this is great stuff I wouldn't have taken it too will at that time. But looking back, it was one of the best things that ever happened to me because it forced me out of my comfort zone and so now I saw the guy that walked up building my house, and by the way also learned you can't be a victim. Blaming somebody else? I have no control newest be that hire him right so yeah, he walked off the job, but it was my decision to hire him. So it wasn't just his fall it was not fall. So what I started taking responsibility for my own actions and going you know what? I'M GONNA draw a line in the sand I will look back. This will be the best thing that ever happened to me. I've had it. I will until that was the day when you say was there a day that you remember that day? So every time, I felt like quitting, which was a hundred times a day right? One Hundred Times a day I would rewind that through my mind and go you know what other people can put on their family I refuse to Walmart I will until. A Man I WANNA speak to the listeners out there just for moment because there's a lot of inspiration to be drawn from that. I know that now is a very difficult time for everybody. Everybody is facing different challenges in these life changing challenges for most of us. Were having to deal with losses of jobs of incomes, families. You know health issues, all of these things that are coming at us and I think that this discussion with Darren can give us all inspiration that it is our worst moment. That is truly The. Moment that can bring us the best things in life and that is hard to see when you're in the middle of the worst moment. I was once interviewed about one of my businesses coffee works which I have with my best friend Dale here in. Bangkok. And for that business, which we have one hundred employees in that business in great in a long term employees, I said in the interview. Our business and our thought process on managing was forged in the fire of failure. So we are in the fires of failure. Now, it is time to come out and look back and say what lessons did you learn from this situation? While few things. So I mean like I said, I learned that it's not that easy comes to make us grow that obstacles lead to elevation. There's really no elevation obstacles. Instead of you ask yourself the right questions you know if you ask good questions, you get good answers. So instead of going, you know why Obama? Happened to me you know we take seventy to ninety thousand bucks a day the majority of them. The same that we bought yesterday in the majority of our subconscious makes more decisions conscious mind. And your brain wants to be right. So when you go, Hey I can't afford it. Then it goes from your subconscious mind those in your conscious mind the reasons that you can't afford it. So I learn not to say I can't afford it go. How can I afford it? When I'm going through those challenges, I learned to ask you questions you know what can I learn from this? How can this make me better? How can I grow through this? How can I make a bigger impact? How can I use this? Make a difference in other people's lives in with that, your mind goes to work in. It's amazing. The difference when you start to ask the right questions, another thing that really changed my life. So some of you may be listening to this podcast by the way you think any of this can make an impact in your life share this podcast you know I'm Andrew will tell. You I'm not getting paid to do this right he's not getting paid to do this. Now we're doing because we love helping people. So you never know when that person that you love and you care about if you send us to them here one thing it could be exactly what they've been praying for man. Thank goodness. You sent that semi that completely changed my world and that drives me right getting the messages from all of the world you know saying your content bigger difference in my life, and so this may make a difference in your life because of different months you can imagine I went to an event. And I remember going man these people still the row that was having my car because those right before they repossessed it and I had a pity party I'm like they must come for big cities I live in a small town I mean, even twenty years later, right? Our town now has five traffic lights a little slow town. So go they must come from big cities. I live in a small town, they must have a college education Abba lack of education. They must be great public speakers out pass out in front of five people like if you told me at that time outspoken now in front of you know arenas where there's twenty five to forty, thousand people out of Said you lost your mind. But when I heard this very successful entrepreneur. He started talking about, what can you get a little bit better today than you were yesterday. And I'm like. Well, I guess I can do that and can you read ten pages out of a good book? A Day will andrew me yet I, have add. adhd add I got everything right so accurate ten pages I don't remember what I read on because I'm thinking about something else true story and then a sad was This'll you'll go up, you can do it. I can do it I bought a speed reading book years ago I, still have not finished it. That's The slowest speed reader Am I to speed read on audio because I can't get through the book with him. You know even if have to read it a couple of times read ten day. Well, if you do that, that's a book. Most, people don't read a book a year. So in ten years you read one hundred most people hadn't read tin that compound effect it's doing the simple things. What do you listen to on a daily basis? Can you listen fifteen minutes of a podcast twenty minutes of podcast today compound data over the next several years you're not the same person. So when people look a college education, but it does not mean, I'm not educate I consume our content every single day. I, read my mind like muscles in the jump even though I may not look like a reptile muscles in the gym, right? So now learned the compound effects. You're doing and here's the key. Here's a key. You're doing simple things on a daily basis the to make no difference at all in the act of doing. You listen to this podcast you're jump off. You're not going to see a drastic difference in your life tonight or today, but you listen to something good and fill your mind with positive stuff every single day you blocked the negative if you'll deposited compounds over a period of time, there's a massive different. So I get frustrated man, why am I doing all these things on the French? They're not doing these things, their party and They're not personal development but if you look at my life and their life doesn't sometimes, it looks like I'm doing worse than they were in Tampa was but compounded over time for those that can see this video all of a sudden my life did this went straight up. There's went down because if the simple things you do good or bad the duplicate if I walk in need a big Mac French fries and a milkshake. I should die of a heart attack today but compounds over a period of time of by the every day I'm digging a grave with not slowly right. So when you're you're doing the things that seem to make no difference at all in the act of doing them but you continue to do those and they end up compounding and then you'll have people say something like this. Oh. My Gosh you must've gotten lucky and then you're gone, you're thinking your mind no luck had nothing to do with sit down son with unsuccessful people are not willing to do, and that's another motto of mine. I will do today with others want to have tomorrow and others don't beautiful. All right. Let me summarize some of the things that I take away but you made me think of something being a finance guy, all my life I'm thinking charts and graphs, and you were talking about a chart that was about the compound effect and that is you know if you put money in a bank if you put it in the stock market and you earn a certain amount of income that say dividend or interest income and you invest that reinvest that into it, then that will eventually grow in exponential way but many years later, it won't be exponential in the next couple of years but there's something very important. That is very most the time left out of that chart. And that is critical and it is that you must not take out any of the income that you've earned in that bank account or in that stock market account. If you earn a dividend one, hundred dollars per year per month, you having to take my wife out for dinner with one hundred dollars. Then you're not GonNa, get the compound effect. You are going to get a linear increase in your investment and that is the same thing I was thinking about reading books and how we think about the compound effect if you only read the books you will improve. But you must put into action what you read. The. Compound effect and it's the putting into action that isn't like the reinvesting of the dividend. If you don't do it, you won't get it. So today we get some real inspiration and that's one of the first things that I took away I've never really. I. See that chart all the time I hear about it I've read the compound effect, the slight edge, all those things, and this helps me understand it. The other thing I would I learned from it. It reminded me also of you know when I came to Thailand and I took a job as an analyst in nineteen ninety three, I told my boss John who is still a very good friend of mine I said I want to be the number one analyst in Thailand? Kid I didn't know anything but I said that to him. And he said Yeah you probably could you know if you put your mind to it? Well, I lost focus at times and I was pretty good at times. I got great jobs. I. Changed Jobs, and on that it wasn't until fourteen years later when I was voted number one analyst in Thailand now for the listeners out there. Would you give up at year ten. At your twelve at year thirteen. I almost did. But eventually. It became the highest priority I figured out how to do it and I. Got there. So I oftentimes say that I'm a fourteen year loser of mandated feel great when I one. Now, the other thing that is interesting about your your story. It's a little bit different. Now, you also made me think about the different types of stories that we hear. Your story is what I would call a transformational story of laws. A worst investment ever that caused a transformational moment. That's not the case in many of the worst investment ever stories like you know they lost money from doing something and they learn some lessons. But yours was it transformational one in that that's something that kind of really comes across and I think for the listener out there. If you are in a difficult situation and you need a transformation, it is ultimately pain that drives you to the transformation, which is what we've just learned from Darren. Now, the other thing that I wanted to highlight is something that made sense to me many many years ago mentor mindset. It's me and I thought about you sitting on that bench at that event with your beat up car about to be repossessed and looking at each person in going. He's got this. She's got done how how you know I always say that you know you never really realise how bad people truly feel I mean look at Robin Williams as an example. To, actually take his own life despite the fact that anybody in the would say, this is one of the greatest comedians an all in it. Always. Remember that people are suffering inside even the people up on those stages even the people talking they are in pain on whatever issues are going on with them, and of course, we see our own pain more clearly than anybody else except maybe okay mothers but even our mothers, they don't see it all. But the point is, is that we very clearly see our failings I'm mistakes are weaknesses. So we see them with clarity, but we don't see other people's because we see their outsides. So someone said this to many years ago Mike Tony, one of my prior guests. Also, he said to me never compare your insides to other people's out signs. and. That has stood the test of time for me and you remind me of that. So based upon what you've learned from this story and what you continue learn, what one action would you recommend our listeners take to avoid suffering the same fate? Will think that it's this is definitely appropriate just thinking about this while you're talking and by the way, congratulations that's amazing to be the number one analyst. All Thailand. That is a huge accomplishment and says a lot about you terminations. That's proud of you. Thank you. Agree you know I learned that we don't make what we want. We make our if we WANNA make more, we have to become more met a guy that won the lottery years ago and I remember him telling me that they made him watch this video before they allowed him to get his money and. He was shared with meeting. This video was like a movie because it was one story after another on the lottery is the worst thing that ever happened to me I wish I. had never won the lottery which I never played the lottery like evil bad stories need committed suicide and most of them did come back to where they were before they won the lottery they. Lost it went to a place that was worse and why is that because they it become a multimillionaire they were given millions of dollars in our income always comes back where we are. So we WANNA make more we have to become more. So what's the best investment in my opinion that you could ever make and I'm not I'm a college dropout it's the investment you. Is the investment in use of my advice is don't try to figure out yourself fundamental were founded coach Wyoming. I, spend my entire life trying to figure out what to do right with read a book. Someone's been their life trying to figure out what to do. Right they put an book I read it in shape years learning curve back when I was spending crazy amounts of money hiring mentors and coaches you know more out paid them for six hours. Would I used to make in a year and people like that's Crazy might know what's crazy is me spinning years trying to figure out what to do right divinely figured out when I can shave years off my learning curve I can compress timeframes I guess where I WANNA be a lot sooner than later and then what I did was I would make that one day would they thought was crazy based off the information that I learned so my advises personal development what you read what you listen to your associations you what you really listen to the people that you hang around barbarian. About who you associate with because you show me your closest friends I will show you your future like you become who you hang your associates like an elevator they let you up or they bring you down. So I had to ask myself, what am I association so he to me or what are they doing for me? So, when you buy vice fundamental finding coach, whatever is going to be the best analyst I possibly can I don't care what what you're gonNA. Charge me Andrew Remington, look name your price. I. Will Fly to Thailand. If you'll just spend a day with me and you this enormous about matter I, know get a loan for knowing what I know now because I'll while I want to spend over fourteen years trying to figure out what took you needed to do to get the number one analyst just Gimme the money I it's a tax, write off its investment me, and so you can take you take a multimillionaire strip away their money, their assets though do it again because they'd be. A multi-millionaire. Beautiful. All right. So last question, what's your number? One goal for the next two months will get a a big goal. Young now. going. Into the consulting coaching training mentoring, you know developing courses and things like that. I want to impact over one million labs within the next twelve months and that's that's the minimum goal in. I know that if I do that Zig, Ziglar said at the opening of other people get what they want. You're automatically going to get with you. Well that's exciting I. can't wait to talk again in twelve months. And wallow the journey. Yes that's exciting. All right. Well, listeners there you have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help you reduce your risk visit my worst investment ever dot com. As. We end I want to thank you again for coming on the show I know it's painful. Talking about are losers but listeners are learning to win result and I want to congratulate you for being one of the brave ones and I say that because most people I reach out to say no Andrew, I'd prefer to talk about my winners. But you had taken your worst investment ever and have turned into your greatest best teaching moment. Do you have any parting words for the audience? Absolutely I brought to be my last parting words I would love to hear your feedback. If you've got something that I shared with you and Andrew shared with you the made an impact in your life the data's is helping me out of you know pave the way of what courses and. I love Aaron Kid Dot Com as my site just go to contact me. You can fill it out but I loved it just your feedback good or bad i. want you to be transparent and lasted at least I would say persistent. Consistent. Have a good attitude. Remember progress not perfection. The best time to quit on your goals is never By attitude is I don't fail I either win or out learn in the more study successful people more I realized like they just refused to quit like eventually they had to succeed because random things that wouldn't work. So if you're being persistent you being consistent and by the way you're not gonNa feel like it ninety, nine percent of the time. Emerson. Said do the thing have the power? He didn't say wait for the power they do. The thing motion creates emotion. So get out there today and do something today that your future self will thank you for saying appreciate the opportunity you know end up can't wait to stay in touch with you, and if back in serve your community in any way whatsoever more than happy to do that. Well, if we say that you are the the some of the five people that you around I'm glad to have you in my group. Now Ladies and gentlemen you can find Darren at Darren Kid dot com that's kid with two DS K I D D. You can also find him on. Youtube on facebook on twitter on. Lincoln on Pinterest on Instagram. All of those in the show notes, but just type it in any one of those of your preference and you will find him Darren. Kid. Kid with two ds all right well. Is a wrap on another great to. To help us create, grow and protect our wealth fellow risk-takers. This is your worst podcast hosts saying I'll see you on the upside.
Inspiration in Times of Crisis from Sal Daher, Joe Saul-Sehy & Jack Thomas
"Hello Fellow risk-takers. Welcome to my worst investment ever stories of laws to keep you winning in our community. We know that to win in investing. You must take risks but to win big. You've got to reduce it. My name is Andrew Stotz from Stotts investment research. And I want to remind you that in this difficult time it is okay to reach out for help. Now is the time to rely on your family. Friends and the network you have built in that spirit. I have reached out to my network of podcast guests and have asked each to share a few minutes of wisdom about how to survive and thrive during these difficult times. Today we have three guests on the show. The first one sound Dr. He was episode one fifty two which was to win big as an angel investor. You have to look at all. Angles SAUL IS AN ANGEL INVESTOR. Who Invest in technologies. That set Boston apart Now saw also has a syndicated lead in podcast host at Angel. Invest Boston podcasts. You're GonNa like what he has to say. Particularly the idea of preserving your resources. But even better thinking creatively during this crisis he provides two examples that I think you're GonNa find interesting so enjoy. Hi I'm sell Dr. I'm an angel investor in Boston. I'm invested early. Stage technology companies and in order to learn more about these. I have a podcast called Angel Boston. Andrew Stotz I salute you for this splendid idea of asking for messages of support and reassurance in a time of Kobe nineteen now early. Stage companies are frail. They have very few resources other command and times like these can be very threatening to them. My advice is to be very careful with your cash. Renegotiate your rents. Consider the cost of your headcount. Maybe you can reduce salary to first salary and save some cash. Keep in mind also that your employees valuable resources and you're going to need them eventually but my guess is this thing is going to be for. Awhile. It's we're not going to have vibrant economic activity anytime soon. So you have to be thinking long term in terms of preserving your resources. But on the other hand think creatively I can think of a couple of startups in which I'm invested or which I'm involved that they have apps that can be helpful in the medical area and they have turned some of those apps over one company that I interviewed my podcast. Apptime health has made its medical equipment monitoring software free for this period. And so that's an example of using the resources that you have the very limited resources that you have in a way that's economical for. You helps others but also helps your long term survival. This company is going to be. We'll recognize another company. I know of not an investor. I'm not invest enough titles either but co Hilo for example is also helping they are in the business of sharing economic weapon and they have also made the technology available to help share scarce resources such as mental eaters. So think creatively but be careful with scarce resources. It's a hard time to raise money. I don't think there's going to be a significant fundraising for early stage companies anytime soon but on the other hand if you think creatively you might really be able to build value in your enterprise Andrew. Thanks a lot for this. Really excellent idea of creating a string of hopeful messages for this really difficult time. Stay well all the best next is Joe Saucy. Hi Joe was episode. One fifty five financial risk management lies in diversification across industries. Now don't laugh. Joe Is in the basement. Yes he is. You'll learn more when he talks to here. He is a Co host the award winning stacking. Benjamin's podcast which focuses on earning savings and spending with a plan. He was the money man at Detroit Television TV appearing twice. Weekly now inside this. He'll talk to you about Stephen Covey's book mentioning about whether you have control or influence. So which one is it? Make sure you're focused on their little bits of areas in your life where you have influence. I like also that he talks about. Even if you lose everything you still got your skills and that is really cool and it reminds us all to keep working on our skills and then finally he talks about the idea of your community. That is exciting so without further. Ado let's hear Joe. Hey there everyone this joe high from stacking Benjamin's and for me getting through this originally was incredibly difficult. I can't believe that we've been here in MOM's basement for over a month the first couple of weeks. I was really in my head and I couldn't focus on my job in fact I kept having big. Add moments and. I realized it was just because of all the issues in the world in the things that I couldn't control and whenever I get in the state I realized that the number one thing I can do is go back to Stephen. Covey's seven habits of highly effective people and he talks about the three pots. There's a pot of things you can control those things you can control and influence and then those things you can neither control nor influence. You'll find if you're on social media that people are usually in what's called pop three right those things that we can't control or influence and we we think about that and I can't do anything about this. Virus can do is make sure that I stay safe and I encourage people around me to stay safe and then I realized there's a lot of other people hurting and there are things that I can do to be a part of my community while I'm here I realized then that focusing on my community and focusing on the things that I can control like getting more education getting better at the things that I do you know even if your job is gone hear your skills are not gone. You're still the same person that you were before. And if you can come out of this more powerful than even bigger skill set. How great is that for you and for everyone and if you spend the time not just growing yourself but also growing your community. You're keeping the people around you safe. You're focused on the things specifically that you could control in those things that you can control or influence so those are the things I'm doing here as we wait for better days. Stay Safe and finally today we have Jack Thomas. He was episode one six successful entrepreneurs focus on hiring right great episode talking about hiring highly. Recommend you go back to it and listen to it now Jack. Thomas is the founder and CEO of base. Which was voted as Asia's Jim of the year two thousand eighteen fitness best awards with eight years of experience in Asia's fitness industry. Jack also hosts the Fitness Business Asia. Podcast show with a mission to raise the standard of Asia's fitness industry. Now in this he has some really good pointers. The main thing he reminds us is that during these periods. We have more time. So what can you do to take advantage of that time? Also he mentioned about staying connected with your team which is really interesting because when you look at these times what we're faced with this it's hard we're all at home and trying to work remotely and it's hard to stay connected so it's a good reminder from Jack he also said something that's really important and you could figure out that he's A. He's a fitness buff because he knows when it comes to improving muscles. Adversity breeds resilience. So as he says in this he'll tell you a little bit about the adversity we face in how we can come out of it stronger. The last message from Jack is probably the best way to end this particular and that is to continue to serve your clients so without further Ado Jack. Take it away. My name is Jack Saunas on the founder and CEO of base. A fitness studio in Bangkok. And I'm also the host of the Fitness Business Asia podcast. I was very happy to appear on Andrews podcast episode Number One seven. Six talk about some of the lessons that I learned in business today. I'm going to share a few SIPS. That will help you get through this crisis that we are currently going through just a few things to help give you a positive mindset and get you through this time number one. You've got more time to do the things that you want to do. So whether it's writes a book starts podcast like this one or work on some of the things on your business that you've had to on the back burner recently for us that means really working on a standard operating procedures and we are also going to start a build your base podcast to help the health and fitness of people in Bangkok as well. I also think as a business owner. This is really a great chance to show your team that you really that for them. Stay Connect said. Let them know what you are doing for them. Just make sure that they are okay during this time and really support and help them as much as you can. If you can do this your business will come back with a stronger team than before this crisis number three. I truly believe that. Adversity breeds resilience and another quote. That I like is calm. Seas never built great sailors. It's sure tough times that we really have to rise up to the challenge really develop our offerings really grow as people and I do believe if we do that and go in with this positive mindset. We can come out of this stronger. Summarize almost every industry in the world is going for a huge shift. At the moment life will never be the same but out of this that will be businesses. That don't survive and there were businesses. Really jump on the opportunities that are created and come out of this stronger the other side make sure every day you are working towards being one of those strong businesses that capitalize on the opportunity. Continue to serve your clients. Serve your customers and thrive for many years to come all right listeners. There you have it stories of inspiration to keep you winning as we end. I want to thank my guest for coming on the show and sharing how to survive and thrive during this difficult time. Well that's a wrap on another great show to help us. Create grow and protect our wealth and our happiness fellow risk-takers. I'll see you on the upside.
John Pastor Ask the Right Questions When Finding a Job
"In Australia mentioned company's name. But in Australia the CEO's stepped down and the C o took over the role. In the first directive to the Philippines was me reduce cost You know yet to remove some people there. And seven of us were given walking papers two weeks nor Christmas. Hello Fellow, risk-takers, and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that the win investing you must take risk but to win big, you've got to reduce. This is Andrew Stotz have starts academy where we help people facing four different challenges investors who want to better manage their stock portfolio aspiring professionals who WANNA, learn, how to value any company in the world business leaders who want to make their companies financially whoa class and even beginners. WHO JUST WANNA learn how to implement a simple lifetime investment plan join us for free at my worst investment ever dot com slash academy and get instant access to my short course called six ways to lose your money and six strategies to win that this course comes from what I've learned from all of these podcasts interviews. All right, and now on with the show, this is your worst podcast hosts, Andrew Stotz, and I'm here with featured guest John, Pasteur John Are you ready to rock. I'm good Andrew. Having today yes and we've been just chatting a bit before this and I know you're ready to to bring it to the audience but let me tell the audience about you a little bit. So Don Pastor has close to two decades of leadership experience in the business process outsourcing industry in the Philippines and that's an industry that's you know I just want. To, interject here it's an industry that's massive in the Philippines and there's some unique advantages in the Philippines and I can tell you I have benefited substantially from that industry. So for those listeners who are not benefiting from outsourcing in the Philippines, well listen up and you're GONNA learn from one of the pros in that area. So John has numerous years of. Experience in both the house, an outsourced areas of industry and has had the opportunity to work with top-tier multinational organizations since two thousand and one aside from operations. He's also well-versed in different areas of business such continuous improvement, quality sales, and Business Development, Workforce Management Facility Management Training and human resource recruitment as he's had these opportunities to oversee directly or indirectly respected. Department heads in those different areas. Now, John is passionate about people development creating a positive culture working environment client and stakeholder relations, customer advocacy, and running day to day operations. That's quite a lot of stuff that you have done and are doing. John take a minute to fill in for the tidbits about your life. Thank you for the very warm introduction Andrew. My pleasure yes. As you mentioned, had a very long journey in the business process outsourcing. Industry, in the Philippines Pretty big. You know running head to head with India, and so you know how big it is for those three countries aside from that while it's it's close to two decades of you know exposure in the industry. I managed all types of verticals whether it's in the communications field or banking and finance field. Numerous. Locations whether it's the US the UK Australia, you name it I've managed that. You know but. Right now currently. I you know shifted into the Fintech. Famous industry. Currently. With a company called G. H. L.. And I'm. The Chief Operating Officer here in the Philippines. level. Happily married since two thousand five. You're blessed to have one daughter. Her name's Emma was born two, thousand nine. Fantastic. Tell me a little bit more about the G. H. ells what what's happening with that? That sounds like an interesting business it is the payments industry is starting to get you know you J- you're in the Philippines. On a traditional business obviously, you're familiar with if you with school, you see those credit card terminals. Re Swipe your credit or debit card that's our business. The sense we supply that we maintain that we serve is that. that. The good thing with the G. H. L. is we also have. An online payments you know avenue. So it's not just a traditional business, be do how the unmanned gaming areas will night. So right now because of the pandemic, it's very useful. He's you know people don't go out buying stuff online and then they use in our services. So you guys got to be pretty busy. I'd imagine I mean it's a challenge for some businesses whereas other businesses like hospitality or something or shut down. But I can imagine you've had a busy. Busy period especially here in the Philippines Andrew since March since all this you know pandemic started it's been. It's been crazy agree with you Razi especially here in the Philippines because of the. Numerous. Cases of half. From a work perspective, it has obviously impacted a lot. Less year in the Philippines just to give you. A figure. Small and medium enterprise in a situation here in developing close to about four thousand estimates of. Shut down. Their business. From, our and obviously if we look at our revenue or casts versus the actual number. It's it's been down since March. Surviving we're we're we're trying to be more creative to think out of the box and provide you know the unique service. While we're merchants here in the Philippines and I have a question for you you know. What something interesting that let's say a Westerner no or someone that just doesn't know the Philippines about managing people in the Philippines like I think about Thailand one of the things that I didn't know when I came to Thailand is that ties are not as motivated by money. As Americans are so. We're going to have a sales contest and you know it's to be for this cash of this that, and then you find out that the response to that is just different from the way that let's say an American sales team may respond to that I'm just curious. For those people that don't know much about the Philippines, what would be something unique about the way to manage the Philippine workforce while interesting very good question Andrew of had co leads from the US from the UK from Australia who were first timers. Said they were tasked due to manage know teams here are group's here. I could say that in a nutshell, it's very similar to Thailand. People here in the Philippines, the workforce they're not as motivated you know with regards to monetary rewards. It's more on the their look for Austin reinforcements they look for. Know simple patent aback he did a good job. What's big here is when you have those big town hall events, then you give. Due recognition people it doesn't have to have any monetary value just give them certificates medals because let's say you're the employee of the month night. It's huge here the recognition yet their hard work, and that's something that co-managers that I worked for before from the US from the UK from Australia The also learned that when they were here. So yesterday had the same. So into now well, thanks for sharing that I. mean that's the beauty of podcasts as we get to learn about each other and worse you have to have that I. Love that part of it well now, it's time to share your worst investment ever since no one ever goes into the worst investment thinking it will be. Tell us a bit about the circumstances leading up to it, and then tell us your story short y'all be happy to do that Andrew. Thank you very much as I mentioned earlier had a very long interesting journey. career-wise in the business process outsourcing industry in the Philippines. I graduated way back in ninety four and you know after I graduated from college from University first few years redesignated into sales. So I'll still are sales work setting cars, selling real estate and all that. and. Then early two thousands of two thousand and two thousand Ernie two thousand warning discovered the process outsourcing industry. So I joined a multinational US based company here in the Philippines. That time probably they were like second company to put you know. An office here in the Philippines. So, good training good everything. I learned a lot from them and I stayed with it industry. Ever since so I worked for several different or. In so multinational organizations and St, you know been in the industry. From two thousand, one of two, thousand, nineteen. and. Probably, there was just one year in I wanted to try my hr you know wanted to put on an HR hats because say graduated with human resource degree never practiced it. So, when I had an opportunity to do that with the local backyard, you know I did that for year on a consultancy basis for one year. But you know going back to the story. So I was in the industry from a one Su Twenty nineteen. And if I look back in my career. You there was A. A period of time we're in the dark. In terms of you know what was happening career wise for me. I remember that the exactly December Fifteenth Twenty fifty. You know I was with A. Multinational Company. Two weeks before Christmas and they get this news. Aid. Thank you for your service but. You. Know you work has been we're giving your redundancy papers So but seven of us were giving her walking papers at the time two weeks before Christmas and. The reason for that Andrew was in you know in Australia, not mention the company's name but in Australia, the C. E. O.'s step down and the Oh took over the role. In the first direct to the Philippines was me through cost. You know you have to remove some people there. And seven of us were given walking papers two weeks Newark Christmas. Very painful at the time and you know obviously wherever you are in the world whether it's in the Philippines or somewhere else you're not gonNA get anything you can't look for work near Christmas or even January because people are still Out there. Christmas is a big deal in. Starts. In? June. Finding. Very true. So it took me Andrew The you know the real deal took me about. Tober twenty sixteen when he got me very first job offer it's very difficult for me. At the time, my wife was working by obviously he just started a family. A lot of bills were. were. Not that had to be terrifying. Yes. And here in the Philippines I, guess it's I'm not sure if it's In thing or a thing in especially if you're male, you know you you're. You're the head of the family when you don't when you're unemployed, there's a certain stigma attached to it. Because we don't only take care of our immediate families. We also take care of the parents. Cousins and all that. So You know. How it is for being. So it took a toll on me mentally physically emotionally and you know the first job offer got. Understandably, you know no questions asked United Stuck. And the funny thing is you know after a few months, the same thing happened. The same thing happened in this marrone. The this company lease, it Australia's well. decided to move all their business. From the Philippines India. And because from a back office work respective. It was a lot cheaper might. Which is true. Read. So again, it's probably at five months or sorry at seven months slamming him. Then it happened again. So so the strike to for me. and. Then how is that? How was it? How long did it last on the second time? The second time you left the for about? I'll be. Able to to Landon you road. Just curious by the way about your first one. Can you remember your Darkest Day During that time like what what it was one day or one moment in time where you at some place and you you just we're at your darkest time. Darpa Stein was probably A. Fourth months of searching for a new road. Starting to my wife. About. Financial on the Gatien's and stuff. Which? Congress nation which earned into a when arguments. In Yeah. A lot of. Things reset which she your regret afterwards. But I. Darkest. Period for me because I felt so incompetent. I felt like he my you know I've done my part I tried applying different rose. Gone through numerous interviews. It's exhausting and went through a final introduced ageless, and then just you know some of them said. You know sorry but. We got some analysis, but some of those other companies didn't say anything at all nothing zero Zilch. So it's very frustrating time and you know. Obviously May. Make temporary was very short and at the time as well as no. So frustrated. I would say that was the worst. Day Until. Wanted to change that when they woke up in the morning when you have to be after remain positive. Do your best and all that. So. Okay. So Sorry. Go ahead. I'm just thinking about how did it end? When can you say that you finally were able to get that job and in all of a sudden feel like okay. Now back on my feet. I. Guess On. So after eight months of searching when it got the job offer, it felt so relieved. Felt. So you know when he got the job offer, you looked at my email and and immediately ran to my wife. Finally. Got Something I've got a job offer aid similar. Oh but they had before similar company headquarters for this from the same country. So it's very excited. You know I wanted to make sure that you know my wife was the first own say though that the good news and Yell, she was very happy for me and back inside them. Signing and by the time yeah. So, what lessons did you learn from this experience? Take your. I know. Base from what I described I know look months was a was a long way. But in retrospect when if I look back even though. You know the I didn't have A. Job At, that time and I was unemployed. Wasn't earning any money wasn't contributing to the family. My wife was working at a time. and. I didn't. I didn't ask a lot of questions. The open up conversations about the role about you plan in the Philippines, the State Law in the Philippines I never imagined those questions night sights wanted to grab the first opportunity is there because the first thought that came to my mind was any the. Knicks support my family and support your wife. So that's the biggest for me. Got It. Maybe, I'll share one story from my life about this, and that was when the nineteen ninety seven Asian financial crisis happened and I lost my job and. We had a coffee factory. We still had to this day, but it we were just starting it, and so it was so painful my best friend and I had to live in the factory because we just couldn't run out of money and you know it was such a tough time. And then to make matters worse, my sister passed away from cancer that time so I was home with her in the US and then came back to Thailand and I was really depressed. I thought this is no way. I'm going to get a job. This crisis could go on for longtime. And I just didn't see a way out and I can remember waking up in that factory Oh man he just was depressing right and nothing's happening because our customers were. Practically gone. and. Those a few things that that got me out of it. You know one of the things was my best friend who runs the coffee business. He said look we gotta move to like an apartment nearby. We can't stay in the factory forever because it's just GonNa. Destroy our mentality. So one lesson that I learned is you have to change the circumstances a bit. To get yourself to break break the cycle of the way you're feeling. So that's one lesson I took away from that and then the other one is that. And I think you can hear it. You know when you talk about this is that for me I can only speak for me and I can only speak for men or a man like me is that so much of myself worth came from my job. So. When I lost that and when I couldn't get one I, felt terrible about myself. And not something that you know I I often tell my friends, my female friends that you know I tell them the story and I say look if you really WanNa understand most men. They derive a huge amount of their self worth from their work. If we agree with and if you don't understand that and you expect them to not do that, you know you may be expecting something that's really hard for them to do, and so I learn a lesson in that is I stopped the idea of off maybe I want to work for five years and then take some time off. No not for me. I'm happy I'm happy to be working all the time even when the code situation came I decided that I knew from this experience that I had to keep myself. Busy and you know I obviously, we all have businesses and other things that we're trying to keep going. But the main thing I did is I focused in on my online courses I I got a lot of interns that have helped me a lot a tremendous amount and I just focused in on how am I going to? Make sure that we're building our business through this crisis. So that's my big takeaways. A man's confidence comes maybe disproportionately from his war and anything you'd add to that. Definitely agree self worth goes down the drain. You're not employed. Or. You know if you. Lose your jaw that you been passionate of. Your whole life, and then you suddenly lose it will. Set. You back a lot under. The agreement I guess one thing I forgot the add aside from the argument had been my wife. I had to stop paying for my parents rent. This very painful as well, and I had to ask help from a brother who's in the US. To give more. In terms of financial support was very embarrassing as well because I'm an. And eldest in the family. and. The expectation was obviously for me to support my parents pretty old down very painful experience for me at the. So you know I just want to highlight to the listeners out there John is successful man and he's lived the successful life and what he's going through his the the willingness to kind of revisit the struggles that you've been through and the benefit of this podcast for all of listeners out there is to take. Take Energy and power from John and from his experience that you will make it through this you will make it through the tough time that you're facing. So let me ask you based upon what you learned from this story and what you continue to learn what one action would you recommend our listeners take to avoid suffering the same fate or to deal with it as it comes. Out Tell all the listeners Andrew. If you're looking for for work. Take your time and ask questions. During the interview process, you know ask as many questions as possible. You know break down the barrier make sure that you are. You know you're getting into something that you truly love. and. The role that you're getting into is something that you know based on your car competencies would really him? So to speak with the job role because you know I think it's very important because if you're not happy with your role then even if you go to work every day, you know it's like dragging yourself. Yeah who? Is. Yeah. It's true if you're unemployed in your desperately warning work. Just grab the first thing that's out there many you know look for something that you truly Want to be a part of whether it's a company or role. If you know if you can have those two combine. Yet and I would add one other thing which is the idea that don't you know a lot of times we blame ourselves. And it's it's necessary and it's sometimes very right. But there are times in life where circumstances are a major factor and when you're facing that situation, I think the one thing I would say is don't be too hard on yourself. You know and this idea of time you know it just this too shall pass is what we learn from. So. Yes. Remain positive. Because I you know when those negative ideas come into my and then it's just GonNa. beat you up. I mentioned a a story that I had in my password. I was facing that depressing time and I volunteered at kind of an orphanage or place for abused or abandoned children, and you know what I what happened was I realized how grateful I needed to be for what I had, and so I remember that a very good friend many years ago an older guy said to me you can't. Think your way into better action. You have to act your way into better thinking. And it made me think that you know okay. What he's telling me is get out there and do something good for someone else take the action and that will reshape your thinking. But. If you're sitting at home all alone trying to reshape your thinking and thinking that that's going to lead to better action it's just a tougher it's tougher way to do it. So. All right. Last question what your number one goal for the next twelve months. On a professional level probably stay in the payments industry are going to be huge here in the Philippines you know tried to grow our company tried to grow. Online. Payments you know. Platform as well site from. Business that we have. And personal. level. You know mixture that family is taken care of the healthy you know. Hopefully this get situation is some finish. Hopefully we can go back to normal. Come next year. So you have a ten year old daughters starting eleven she has been. Stuck in the house for the longest time, she misses her fans she wants to go out she misses traveling I miss traveling, and so that's one thing that we haven't done for the past few months. So hopefully. Things to ease up in the coming twenty, twenty one and we can. Go visit some places absolutely and look forward to seeing you in the Philippines Well listeners there you have it another story of loss to keep you winning. Remember go to my worst investment ever DOT COM Slash Academy to get access to the short course six ways to lose your money in six strategies to win. As, we conclude John I want to thank you for coming on the show and on behalf of a Stotts Academy I. Hereby Award You Alumni Status for turning your worst investment heaven in your best teaching moment. Do you have any parting words for the audience? Oh. Thank you very much Andrew for having today and thank you your listeners or you know Spang sometimes they listen to me today. Be Austin. Keep an Austin frame of. mind. Things will get better. Thank you very much. Fantastic and I think, I just want to remind the listeners that it is John's vulnerability and willingness to look at his past struggles that makes him a better manager and I challenge all of us out there to follow his example and explore our struggles and be willing to talk about them and feel them, and that makes us a more compassionate person in life and business, and that's a wrap on another great story to help us create, grow and most importantly protect our wealth fellow risk-takers. This is Andrew Stotz your worst podcast hosts for the day saying I'll see you on the upside.
Inspiration in Times of Crisis from David Barnett, Andrew Sherman, & Erik Bergman
"Hello Fellow risk-takers. Welcome to my worst investment ever stories of laws to keep you winning in our community. We know that to win in investing. You must take risks but to win big. You've got to reduce it. My name is Andrew Stotz from a Stotts investment research. And I want to remind you that in this difficult time it is okay to reach out for help. Now is the time to rely on your family. Friends and the network you have built in that spirit. I have reached out to my network of podcast guests and have asked each to share a few minutes of wisdom about how to survive and thrive during these difficult times. I we're going to hear from David Barnett. He was episode one thirty six which was titled. Always have a clear path to plan B. David is a three time bestselling author consultant and business coach. Who's been working with small business owners for more than twenty years for the past ten years? He's been helping people buy and sell businesses one of the most interesting takeaways really like stood up and shouted when I heard him say this is that you are not your business. You as a person are wholly distinct and separate thing from Your Business and that really got me interested so listen up. They're Andrew. It's David Barnett from David. C Barnette Dot com where we talk about buying and selling small medium sized enterprises. I got your email and The thing I think that I would like to pass along to people as we are literally living through something which will be one of those events in history is just to remember that you are not your business you as a person are completely distinct and separate thing from Your Business and through this crisis. They're going to be many businesses which will no longer be viable inland of closing. And I want to remind people that's not a reflection upon them. It's it's just a function of the time that we're in. And if people know their business and they realize that this is going to be a protracted event in different places around the world and that there is going to be a long and protracted recession then people need to think about themselves as individuals ahead of their businesses. And you know if you can pull your business around. You can have it survive. That's great and you need to do that. To protect the jobs of the people who will be able to stick with you. But if you don't see a way out then you need to look for the path to extricate yourself from the situation while retaining as many resources as you can so you create opportunities for yourself once this thing winds up and gets over the worst thing I've ever seen in my experience and I've seen it many many many times is that when a business starts to head downhill for whatever reason the owners don't cut their losses and they put their own resources into the business to try to help it survive. Your own. Personal survival has to be paramount in a situation. Like this and if your business has to close if your business is going to be shut down because of this crisis it's not a reflection on you as a person you're different from your business. Thanks for all you do Andrew and if anyone wants to learn more will buying and selling businesses come over to David. C Barney Dot com next comes Andrew Sherman. He was episode one thirty three which is mistakes to avoid when selling your business and he gave us kind of a special episode where he went through all the different common mistakes that he had seen in how to avoid them. So Andrew is a partner in the Corporate Department of C. Farts Shaw and serves as the Corporate Office Chair for the Washington DC team. He focuses practice on issues affecting business. Growth for companies at all stages including developing strategies for licensing and leveraging intellectual property and technology assets intellectual asset management and harvesting and international corporate transactional. Enfranchising matters the word that came out of his. I love this one. Which is retool. We have to retool ourselves and look at our value proposition of our business. And that really got me thinking about my own businesses and how I can make sure that we come out of this stronger. This is Andrew Sherman a partner at Cypher. Shaw in Washington DC. I'd like to talk a little bit about the impact of Cova. Nineteen on small business entrepreneurs while in the United States. There's been a lot of legislation recently to help solve some of the payroll and other costs. That's not really the answer. That's a short term fix to a long term problem companies lack of ability to be prepared for this crisis having a plan B inability to pivot a succession plan in transition plan an exit planning or Emergency Preparedness Plan. It really exposed. Just how unprepared. Not only our governments are around the world for crisis like this but how prepared many small unprepared at many small business and entrepreneurs were. We're now having to make difficult decisions about balancing health versus wealth and when to reopen the many countries states and cities around the world. There are suffering from the virus. If there's a few things that you've learned hopefully it's now's the time to retool to repurpose to reevaluate your business and your value proposition. If you had dependencies on supply chains dependencies on key customers dependencies on staying open on a retail basis. You're feeling the pain of those dependencies. Now so also a time to look about the future of work in the future of the workplace will working from home. Be The new normal. How will that affect staffing and teamwork and engagement issues and even innovation and creativity? It's also a good time to be sure that you stay close to your customers. Those small businesses and entrepreneurs that really stayed close to their customers are being rewarded now with alternative business models just as takeout and delivery and enjoying things like the stay at home dividend. Other businesses were caught by surprise had lack of cash flow reserves And other steps. That could have been taken to be more ready. I hope we can all learn from this crisis and we have stronger. Global Small Businesses and entrepreneurs round the world and I look forward to getting on the other side of this curve again. This has been Andrew Sherman from Cypher. Shaw in Washington. Dc thank you next. Up Is Erik. Bergman Eric's was episode one hundred twelve which was titled. Keep empathy in the Star War Room. Eric started his career as a professional poker player while he was still a teenager. In Two thousand twelve at age twenty four he started. Katina media a company that only three and a half years later would be listed on the Stockholm Stock Exchange with a two hundred million dollars valuation. He left katina media a few years ago and today is just starting his latest project. Great Dot Com. Wow and that's a name. He paid to nine hundred thousand dollars for and I'm sure he's making a lot out of it. So one of the best things that came out of his for me was the idea of reducing your media exposure. I turned off and didn't get into facebook and other postings and all that after the whole crisis started I basically shut that off through the daytime only look briefly at night great advice. Hey guys. My name is Erik Bergman land. I believe that the best thing to do in Corona Times like this is first and foremost to lower the amount of media exposure. Because at least to me right now I just get stressed out by. Keep watching the news. Keep washing the numbers and a couple of weeks ago has decided to go on a corona occasion. Meaning don't watch any news whatsoever. I took away my stock market apps not following the stock market on following anything. And I'm just looking at the numbers once a week and it has helped me tremendously to stay focused on other things more important. I mean I'm staying inside. I'm not meeting people and washing hands just doing that. I think is everything important that the media can tell me instead using this as a paternity to create new habits. Believe that you don't get new results by setting new goals you get new results by creating new habits and habits is everything and in times when we're a lot of those are working from home and we're meeting people and he said we have more time on our hands to create habits so I would start by creating a habit of writing something everyday like something small something you appreciate something you feel grateful for and creating that habit of writing. I think that's super beneficial. Have that as an habit would also create some kind of an habits of being creative online. If you don't already have a business then I would start creating something that could turn into a business google and search for Youtube on different business ideas and different guides and explore these things and see if you can find something that you did you just want to keep reading about something that sparks your theriault city. 'cause once you find things that sparked your to reality and you just want to keep going that's when you will easily stay patient enough to succeed. You're having fun with what you're doing. It's easy to be patient if you're not having fun if you're really bored it's really really hard to keep the discipline up. So he uses Thomas Finding lots of different ways to make money or just learn about different ways to make money online and try to find a way to to have a hobby that you can make money from you have more time now than you usually have so use it as an opportunity. Good luck with everything chairs all right listeners. There you have it stories of inspiration to keep you winning as we end. I WanNa thank my guest for coming on the show and sharing how to survive and thrive during this difficult time. Well that's a ramp on another great show to help create grow and protect our wealth and our happiness fellow risk-takers. I'll see you on the upside.
Michael Michelini Do Detailed Market Research Before Creating a Product
"We were good at the Ebay and Amazon even exist and as far as what it is now but we are selling on Ebay. Were selling on our website. Were GOOGLE AD words. We were doing great aunt. Beat a scene. We're taking existing products. But we've never really taken a brand new product and launched and it was me that was really putting all the money in south hello fellow risk-takers and welcome to my worst investment. Ever stories of loss to keep you winning in our community. We know the to win and investing. You must take risk but to win big. You've got to reduce it. Today's episode is sponsored by the valuation masterclass Online. The complete proven step-by-step online course to guide you from Novice to valuation expert. Podcast listeners can claim your amazing thirty five percent discount by going to my worst investment ever dot com slash deals. My name is Andrew Stotz from ACE DOTS investment research. And I'm here with featured guests. Michael Nicolini Michael. Are you ready to rock? I'm ready. I'm really excited. Yeah let's go. Well let me tell the audience a bit about you. Mike is an American social media ECOMMERCE and SEO specialist who has lived in China since two thousand seven. He's a passionate business. Connector who helps companies do business in China as well as helping Chinese companies to work in overseas markets. He built global from Asia. A cross-border e-commerce community to help cross-border business owners learn network make business partnerships and grow global businesses. Most recently. He has joined as a partner in Alpha rock capital which is an Amazon. Fbi Investment Company. Might take a minute and filling the tidbits about your life. I think he feel great job. I'm really excited. Also happily married Chinese wife. I met while in China with two kids soon to be six and four years old boy girl. So you're a busy man. Totally busy really overwhelmed. I know the feeling well. We're going to relax now and just enjoy the moment. We don't have many interruptions. We've got our time together. And now it's time to share your worst investment ever and since no one goes into their worst investment thinking it will be tell us a bit about the circumstances leading up to it and then tell us your story. Sure so honestly I could probably have a few who've my worse investments but I think this one is is going to be very interesting and it was a bad financial investments. It was two thousand eight March. I had moved to China in late. Two thousand seven and you know was really excited about everything happening in a blue skies new opportunities already selling online for many years while in the US and this industry. I was elling those kitchen and bar supplies online. Be to see as well as to be through some strategic partners and I had been networking a lot of experts in Chinese people in down in Shenzhen City China in the South South Border City with Hongkong and one of them was named Andrew and different Edgier and he says Oh you do bar supplies aligned to I actually. He was the sourcing agency. He was a product specially Bene- China ten years already and he kind of took me under his wing as a as a newcomer as a young guy. The new kid on the block and you always impressed my internet marketing skills and abilities and he has so many product ideas he had always property as he was also the same industry and he was doing sourcing which is basically help them. Us Pliers finding factories in China. So we know he was giving me these a lot of bar hopping you know and and dirty street restaurants street food barbecues which I still love honestly even house threaten. It's not the most healthy. But it's definitely the best bonding with your big Qingdao Beers or those big green bottles of I don't know them in America but those big oversized beers and learning all learning all the insights of China business. Not just from him but he was kind of like kind me and give me the inside scoop about manufacturing so one of the ideas was was a light up. Pour spout basically a bottle top. They put on top of a vodka bottle or or any kind of liquid and when you pour it his idea was it would light up. Stream of alcohol to the color of the led so fancy really nifty net. Yeah as early Guinness. Nice little gimmick so or in March does need can't believe this twelve twelve using now. Let's get me all excited about it. And he's like you have your website. You can sell these. You already sell your bar supplies you your customers you have distribution. I can help engineer it here. Where both here we can do it together and you know it sounded like a great story. I mean He. He had no internet experience. You know he had like a hotmail and he you know he wouldn't do skype call sometimes late at night to the US but he had no real computer or Internet marketing skills and he was engineer and ten years in China. So we went in on this together. P brought in another friend. That was another American that had like legal experiences and we found that there was a patent already crazy story. I Dunno crazy story. We contact the patent holder. It's a Russian living in New York. I'm still friends of the guy. Actually and he didn't make the product so we were starting to do these calls with John in other Mikhail or Mike and Andrew and me there's four people and we had these skype calls bargaining about licensing his patents before we could make it and is going over a month of calls and he has a lawyer in Florida. He's in New York. We're in China. Were doing skype calls email threads and he's he's wanting up front payments he's one. Corley minimum royalties. We didn't even make anything you know so I was getting frustrated. Were ON MISSED SKYPE call? Were actually Ed John The lawyer partner on our side Andrew An. Ira seem a Home Office in my Home Office had even a few Chinese staff working in my home so all jam packed in this apartment. But we're seeing far away on different lines to look like we're different locations for some reason the NFL. I'm looking at John and I said you know what Mike Mikhail or Mike I like you. You know but I can't keep talking. I'm making this product on manufacturing this. If you are in your in if not then I guess you can find me. You can find me. And he's like well and it was silent. John's like weaving say that. Like because I think we're bargain at all for. I think I said I give him five. Grand for like a year exclusively honest worldwide on worldwide pants and. I was kind of saying. Take it or leave. It and I'm going to do this anyway with or without your consent Like he's like yeah. It was hard ball and then he's John's like no like putting his hands on his in. I know it's hard to explain all these different characters. But they're just both lake saying. Oh No this young reported in you know we kinda needed them but he's screwing us up. He's not listening to us. And then there was silence and then McCain was there and his flora lawyer and he's like you know what Mike I like you you. I don't know if he's at balls around Santa Show he's like he says like I like you at you. Just do you yes. It's true to US talk okay. I will accept five thousand dollar one year and five cents per unit. You know so. Basically is a deposit of five cents royalty per units up to five thousand feet over that we have to pay him extra for the first year and then after that I'll be like quarterly payments based on sales audits access to finish stuff so we made as long agreements and did it went. I don't WanNA get so deep into manufacturing but it was a new mold so it's a new product. There's more upfront costs right. So the second hardball had was Andrew. My friend my guide wanted to use his friends factory. And this is where I. I don't know I'll never know the truth. But he they quoted me an upfront fee of like twenty thousand dollars or maybe fifteen thousand dollars for the manufacturing of the product. This is not to make depart. This is the setup fee like. There's there's tooling or molds and I'm like that seems really high to me and he's like Mike you know you gotTa Trust me. This is the guy this is the this is the guy I'm like. There's older guys zolder guy so he was mad at me but I went. I quit. I quit it around a few other factors. Now's getting three thousand. Five thousand dollar quotes for same thing. Upfront fees moving. So he got really angry at me but you know maybe I was young cowboy but he was still. I still kept him in the deal. I just said it was actually another. It was a cheap birds China too because China's huge people realize that but it was a cheaper part of China anyways. We hadn't paid to five grand to the factory that I chose and went ahead with it and then we were getting people. I had my. Us partners from e commerce business. The bar supplies business and other incher. Actually Andrew Hometown frame. We grew up together. We started a business together while still in the US. So he's all excited Products going to be a millionaire. We're GONNA make so much on this. Like just get. Is this product so sending samples? He's talking to Bacardi. Us But Cardi was interested and just the lead time. I don't know it says be to be in so you know it was just taking forever and for me. I don't know I said it started in March. I think he got into summertime. Were still working with the sampling of the product. You know going back and forth. The led wasn't bright enough in my partner in the US. Even I wasn't satisfied with brightness because I think that's the whole effect right owning this vodka and this light like a lightning bolt shoots out of it but it was like a trickle of red or blue or green. Is nothing like what we thought his way? Andrew in China. My my engineer foreigner. He'd Kinda just Jig together like he just took battery like an iphone battery and put to you know contacts to led so is really strong and we actually tried to put that into the product in you have just a little battery. Watch inside of the SPOUT and screws. It was not making that strong enough power as like a nine volt battery. When you're just Jammie two wires into a bottle at so it actually make the same thing with so hard and I found. Led's ahead to get a new PC. Basically we had a source. The led from different suppliers factor. We had a source a PCB from the different factory. That has sort of some if mold an Andrew an enormous shipping us net but Cardi kept kind of saying. Okay make it better can make it this. And then of next big fight was we had a guy in Amsterdam that found us is like he won exclusivity in all of Europe but found somebody new K. and they wanNA exclusively at least the UK. And I'm like man. All of this talk you know. It's like getting august-september designate. It's done sold anything in a guy guy wants. Excuse me here. We got a car to go back and forth staring up my partner in New York engineer. Part and basically this is before kickstarter I wish we had kick starter but then other problem was is promotional item so Bacardi was not willing to pay more than like dollar piece. Because they're just GONNA give Like put it into their packaging any liquor store in nearby Cardi bottles with their. You know their vodka in an east bright red logo Nilsson wanted to exclusive all. Us You know we're not gonNA spend your whole project and by one hundred pieces and I'm like man a dollar you dollar exclusively. It was as crash course of like business because everyone exclusivity everyone knew we want to put money down by one and have the rights. I was like the only one putting money in actually I was paying for the manufacturing. I was paying the patent holder. Five Grand Bankamerica. Remember that day and you know I think he got like twenty twenty grand and we did a production run for ten thousand pieces. The BACARDI was still going through but we started selling our website. 'cause we had a pretty good website where it's like a top in top. Google ranking for all these bar supplies we had some many small distributors in the US in. We had homegrown built after two thousand four. I don't know I mean I could go for a little bit but basically what started happening was I wasn't making money back. And then people spend partners. WanNa start getting their cuts. -sity everyone in their money. Everybody's wanting their money. I'm like we got ten thousand pieces. We you know we sold them for three dollars again for a dollar. And then you know we got to get this wholesalers distributors and we sell it on Ebay but then distributors in want to sell it online because it would undercut their margin. You know we were good at the Ebay and Amazon even exist and as far as what it is now but we are selling on Ebay. Were selling on our website. Were GOOGLE AD words. We were doing great to see and we're taking existing products but we've never really taken a brand new product and launched and it was me that was really putting all the money in. So how did this or how did it go? I mean it was like a collapsed but it didn't make enough money so then Andrew Andrew in China. I bought them out basically. We pushed him out. Mama Friends said I pay him too much for his share of the product. But he's like I told you everything and you know so. I paint him out up fronts him in John Remember. We went today banking Holcombe together and I win. Cash just gave him cash like in hog like on the streets. I think it was like ten grads for his share which he didn't have a company was all contracts. You know it's one of the get them off my back because he was this on my butt about selling more getting his share His money you know we sold like twenty thirty thousand pieces you know. But these are like little Spouse for like a couple of bucks retail a few dollars you know then so basically just didn't really make enough money and it was losing momentum momentum and then Bacardi ended up rejecting it because the craziest this was the maybe this is the breaking point my partner in the US. Was you know sending tip Hikari just as long chain of communication writes a scoring from Cardi. Us Tax Office to my partner in the US and then they rejected it internally because it pass us FDA but failed Bacardi's internal quality control tests of the material plastic for certain percentage of some kind of a plastic chemical. My can't remember towards food grade needed to be food grade. Plastic I guess it was enough for. Us Food grade or US importing. It wasn't GonNa kill anybody or hurt anybody or it was usable but their own internal requirements wasn't enough and this is the maybe the. Maybe I'll say this is the breaking point the factory in China's like it's called face. I think you know you're in business in Asia. No our quality is good. They're wrong I'm like no no no I'm not saying you're quality is bad. I'm seeing that. Can you give me a different composition of material? This percentage of this chemical. I don't even freaking on her stand honestly but days they need less than twenty percent thirty percent of this Pacific chemical of plastic in your plastic of the mold or of the product. And then I don't know it was stuck in lost in translation basically so we lost a deal and then there was turnover. Because this is I'm thinking is probably going past Christmas. Went into two thousand nine it just kind of you know maybe maybe. I wish I had kickstarter. Back dinner crowdfunding. So how did it end? The ending was just like died. I mean ending was I just didn't reorder it. Basically I think I did two batches ten thousand but it was always on me to upfront. Hey I'm you know. Selling them retail won by like two PAC for like ten bucks like five dollars. Of course some dollar dollar fifty my costs but then McCarty and then the Amsterdam guy wanted for like seventy five cents per because he wants his Bacardi or his liquor company in the US and Europe for a dollar learned after that The promotional market is like a dollar a piece. Let's review the lessons that you learn. Yes go what's the number one thing that you learned from this? I mean there's a few but I mean I guess market research market validation or selling property for I mean we did have the market. We did sell these we did have. This was our industry but I guess I didn't really know the promotional mark. I knew like the beat is see like I didn't sell to like precarity before. I didn't sell to these big distributors before that should have known dollar at par. It was basically. If I'd known it was a dollar that I made sure to make a cheaper product but it was also heart. We wanted to quality be good. You know they want to just throw away stuff. I guess any other lessons that you learn. Well I mean as I mentioned. There's all these you heard about four or five six different people involved. There was a joke. They call me like the Godfather in two thousand eight. Because I was making all these deals like had made some money in Wall Street. And now it's just Kinda like I didn't save money for MBA missiles my MBA. And you know. I had a few other projects honestly. But I'll give this half of this one in our twenty five. There's four of us here. Twenty percent each year. An you your engineering years sales. You're like you know you do. This is very rough like I had to. I did have a contracts honest I can take that one but rough agreements without really clear exit strategy. Like what is that wasn't there was no the most important part of a contract is the break-up right like what happens if it doesn't work out and we didn't have that so zas is fighting and I just ended up paying him in London for ten grand screwed out. Don't pay nothing. Just give them some kind of percentage of sales in the future. Now's another lesson all right. Let me summarize some of my takeaways from it. I think the first one is the idea of understanding the market. And it's hard to you know when you get excited about a product. Sometimes we missed you. Know the market the market more important than the product. And I think you know in this case understanding that market and it sounds it. Sounds like really the ultimate death blow was probably be the rejection because of this concentration of certain amount of plastic and. I'm not sure that you could even do you know I mean that's a hard one to say that you could have found that out. You know. It's a tough one. The second thing that's critical is if you have no sales you have no business and you know. Obviously you had some sales online and stuff like that but without a sizable sales and also with a vision of that sales being able to really seriously grow. You know there's no business and I I like to say that for when I look at businesses I have something I call the three million dollar rule. Which is you have to be able to explain with your small business. How quickly you're going to be able to get the three million dollars in revenue because it takes about three million dollars in revenue to be able to hire a management team and build a real professional organization that has the ability then to scale to the next level. It's a lot of people they get excited about a little product but the fact is is that unless you can get serious money behind it you know in series revenue behind it. It's really hard for it. Not just to be kind of a one man show and I would say the third thing that is really the toughest thing is that you need different people involved in a business in order for you to be successful whether those people are providing capital or whether there providing expertise but keeping everybody satisfied is a nightmare and and many businesses fail only because they just can't figure out a way to keep everybody you know satisfied and the breakup and all that end up destroying the business. You know type of here so those are some of the things I'd take away anything anything bad. I'm I guess it's one a somewhat clarify. We were making revenue from our normal generic. Our supplies like we were just you know Shakur's and openers and we're also doing other products for other other people still. This was just idea was this could be like one of our Mastered Right word leading product and he could sell the boring stuff behind it. Right idea was this was like kind of the the. Wow we even sold. We sold some to our competitors like our online retail competitors. 'cause we use the whole patent and I even got a trademark That was made me one of my responses to you. I still get wow on assist. Have cool lime still. He was still get some leads. I just don't reply is the sticking boy. Somebody's gotta put like ten grand into this. You know to get you know again order basically I mean honestly still maybe keeping me better now with led technology battery technology. It was maybe a limiting thing and I was even thinking about kickstarter. I mean honestly crowdfunding. I was some people that I should have done. It could've been presold these right. He could have maybe tested a market by selling them. I was getting ready to put a purchase order but Bacardi or any of those guys wanted to sample working simple. Which makes sense right all right so based on what you learned from this story and what you continue to learn in your life. What one action would you recommend our listeners? Take to avoid suffering the same fate. Imagine person doing the exact getting excited about a similar type of situation. What's the one? They're they're lucky that there's crowdfunding now so I would say leverage crowdfunding if you have a really unique if you're doing something totally unique. Try to sell it. I like you said if you don't have don't have a business yet but on the other side I don't like these scammers like even have friends that I almost call scammers. They sell on crowd funding. And they don't deliver so make so don't do the opposite like that. What makes me so mad because I did this out cross funding and now I see Oversell don't deliver so definitely me at least half full intention to deliver so definitely leveraged at her. Even if it's not crowdfunding sell something I yep sell you know. I've listened to podcasts and stuff about sell sheets even have provisional patents yet. Obviously we talk about this patents are almost BS. Like I. I agree because he knew he couldn't do anything to me. That's I think I could have even sold in the US Marquette GonNa maybe sold in Europe is the US and. I think he realized if I would really do that so I wasted too much time on this patents and you know. I don't know you're feeling but don't get stuck get caught up in the pants. DoN'T GET CARBON PATS. If you're entrepreneur investor of course important have your Ip. I think the most important brand trademark not as great so last question. What's your number one goal for the next twelve months? Yeah goal right now were as you mentioned earlier on Investment Company. I'm just building out where we're scaling. We're raising were buying out more. Brands scale All right scale alright listeners. There you have it another story of lost to keep you winning to find more stories like this previous episodes and resources help you reduce your risk visit my worst investment ever dot com. Michael as we end. I WanNa thank you again for coming on the show. I know it's painful. Talking about are losers but our listeners are learning to win as a result and I want to congratulate you for being one of the brave ones who has turned your worst investment. Ever into your best teaching moment. Do you have any parting? Words for the audience doesn't discourage people you know like I mentioned a hinted towards I kind of put it into my MBA. I think is way better than MBA personally. So you know I think take action and don't be afraid to fail and I think is even Steve. Jobs has some kind of quotes. You know. There's all these successful people say you're afraid to fail. You never do anything right. You'll you'll so don't be afraid to fail. Got It great advice all right. That's a wrap on another great story. Doukas create grow and most importantly protect our well fellow risk-takers. I'll see you on the upside.
Jonathan Slain Plan for a Recession So That You Can Survive and Thrive From It
"Every two weeks I would call her for payroll which was about twenty thousand so imagine. Twelve phone calls all groveling to your mother-in-law to borrow money. And that's that was my reality. Hello Fellow risk-takers. And welcome to my worst investment ever stories of loss to keep you winning in our community. We know that win in investing. You must take risk but to win big. You've got to reduce it. Today's episode is sponsored by the valuation masterclass Online. Complete proven step-by-step online course to guide you from novice evaluation expert. Podcast listeners can claim your amazing thirty five percent discount by going to my worst investment ever dot com slash deals. My name is Andrew Stotz from as stocks investment research. And I'm here with featured guest. Jonathan Slain Jonathan. Are you ready to rock dude? I am always ready to rock. Let's do it in. Something tells me from the Rock and Roll Hall of fame and the city of rock and Roll Arrays Cleveland Ohio Rock and Cleveland rocks. Well let me introduce you. Let me introduce you to the audience. Jonathan's book rock the recession. How successful leaders prepare for thrived during increased well after downturns came out in September twenty nineteen and is a number one Amazon best-seller and we really all should read it now? Jonathan coaches high growth leadership teams across the United States and helps them implement the manorial operating system also known as traction you focus on working with entrepreneurial niche specialty firms and large corporations spending over one hundred days per year working with teams just like yours. Jonathan was Valedictorian of his graduating class. And had the highest GPA. Ever in the history of Shaker Heights high school where he was also voted next Bill Gates and least likely lose his virginity and we have something in common i. We grew up in very close proximity. I grew up in Hudson Ohio. And you grew up in the Cleveland area and we also have something in common. I was voted something when I was in high school. It was least likely to succeed so now Jonathan take a minute and Phillies tidbits about your life. Why I think we both proven them wrong. Andrew's saying is. I have two kids so definitely figure that piece out hand just excited to be here excited me on the show. Love the premise of what you're doing and the opportunity to share with the audience. Interesting fantastic. Well let's get right into it now. It's time to share your worst investment. Ever since no one ever goes into their worst investment thinking it will be tell us a bit about the circumstances leading up to it and then tell us your story so andrew I I have to. I disclose I'm a recovering investment banker. So that's where I wanNA start. Is that you know I worked. Eighty to one hundred hours a week for two years so in people years. It's really four years of experience but ultimately got a call from my brother-in-law one day asking me if I wanted to help him out. He wanted to go look at some. Jim Franchises that he was interested in investing in. I went to Denver with him and on the flight home from Denver to Cleveland. I said Hey. Why don't I leave the bank in all? Start opening up these gyms with you and that that was the worst investment that I ever made so what happened was that we got home and we actually opened up our first Jim ever and your hometown. Hudson Ohio world such a small world. First one ever opened up Hudson Ohio. It's actually still there. I forgot to tell you one. We're doing the pre interview. But it's still there. It's been there for over a decade over in the first in main shopping center. So I don't WanNa ruin the story for the audience because that unit survives but we grew the thing very fast Andrew. What happened was in less than five years. We had five units operating called fitness together. All one on one personal training studios franchises and so we had five locations across. Cleveland had twenty five employees. I was twenty five years old and had no idea what I was doing. And we had. We broke of franchise records all over. We had the most personal training sessions. In a year. We have the most locations we had the most revenue of any group and then the great recession hit and so I ended up. I didn't have a plan my plan was. I borrowed a few bucks for my mother-in-law in by few bucks. Andrew I mean a quarter of a million dollars. Zero zero already laughing. The worst crying even told the worst part dude is that it was. It wasn't one phone call. It was every two weeks I would caller for payroll which was about twenty thousand so imagine. Twelve phone calls all groveling to your mother-in-law to borrow money and that's that was my reality so borrowed it and that's what kept US afloat through the great recession. And you know at this point. I've paid her back so the good news is Thanksgiving is an awkward anymore. And My brother-in-law still has the gyms he bought my shares. In two thousand seventeen. I really got into Doing Business Coaching Consulting. And you know at some point in two thousand seventeen said. Hey you're never really here anymore. You know I don't I I buy your half of the gyms and I'll do this and so that was my worst investment ever. Okay so tell us. What are the lessons that you learn from this experience so Andrew? I knew you were going to ask me this. I really thought about it and I don't know if you the audience have a pen. I'M GONNA give you my top lesson. The first thing that everyone needs to do the first thing run a credit. Check on your mother-in-law so sorry myself yet. The lessons that I learned are that you've got to have a plan so my issue was. I didn't have a plan for what we would do. If we ever hit a downturn and so a lot of the book is because people shouldn't have to borrow money from mother-in-law and so by having a plan what I mean is that like so right now or shooting this video right on the heels of the corona virus sweeping through Asia. We're just talking about how China Korea are passed in the United States still really faced the brunt of it but if you WANNA rock a recession you've gotTa have a plan you've gotta figure it out in the cool rational light of day. It's very tough to figure out what you WANNA do in them motionless heat of the night. I mean we're all human and humans make notoriously bad decisions when they're stressed out when their emotional and that's the biggest thing I learned. It was very tough for me to figure out what to do when I was in my office at the gym and people were coming to my door worried that they were gonNA lose their jobs. When all of our creditors were calling us WanNa know when we were going to pay our bills or if we could pay our bills very tough to make good decisions in execute then so I lost a lot of time I probably barred twice as much as I would have had to if I had just had a better plan than being curled up in the fetal position in the morning on my office so I know that's probably not GonNa let me. It's so that the concept of a plan you know one of the things. Is there any other things that you'd add that you learn from it? Yeah it's the idea so it's having a plan and one plan for recession. Planning is having a downside plan so I call it an emergency brake. So if you know you're in a recession in your in discretionary business like personal training in you know people are GonNa cut back. Then you know you need to have a plan for what you're GONNA DO TO REDUCE. Expenses cut overhead do layoffs in survive. That's one part of it Andrew. But the other part the reason we actually wrote the book was not to regurgitate that. Pretty common wisdom for recessions. It was actually to say look. These recessions could really be opportunities. You know if you're an entrepreneur. And once every seven ten years a major disruption that's an opportunity to pounce you know maybe it's an opportunity for me. I wish I had thought to pivot to small group training or to lower my prices right away or to do in home training virtual training that we could have we could have done all those things during the great recession for cheaper than what we were doing didn't have a plan. We didn't pivot. We just tried to stick to business as usual and we got crushed by it so at this point. I think those are the two biggies one is related. Just have a downside plan and the second and maybe even more importantly as you know having planned to be able to pounce okay got it and let me summarize some of the things I take away from your story. I mean the first one is that well in some ways you were lucky. You could argue that you failed number. One mistake that most people make is that they failed to do their research when you made a decision on that plane after a very short amount of time researching it you know. There's no way you could have known enough information at that time now. The good news is that you know it managed to work itself out but the other thing that I take away. Is You know a Lotta people went investing in the stock market. For instance. You know people like to be value. Investors be like Warren Buffett. And that is that we you know. We basically less for the long run. If something goes down a bit we buy more you know. We don't really think about what do when the share prices really fall and this is where I always have used an advocate. Most beginners particularly to use stop losses when they are investing in the stock market and for professional investor may say I don't need I because I really understand the company. Well for most people they just don't and so a stop. Loss is a little bit. Like this downside. Plan and what I say is that you know you predetermined future action. And then it's a little bit like when airplanes flying in the left engine goes out you go straight to the manual. You go straight to the book. There are steps that you've already got there to take and you begin to methodically. Take those steps now. Yeah Andrew I love that I. I completely agree. I think it's like if you have the recession plan. And you've got it you put it under glass and then when you're seeing on CNN when you're seeing on Fox when you're seeing on your local stations that were in a recession you can calmly walk over to the glass break. It take out your plan and start to execute so I completely agree with you now. The the issue about this plan. That's so horn in. My opinion is not the idea of writing it. It's the idea of even thinking about it because when times are good nobody who's going to sit down and write down that plan ten years of economic boom the stock market boom in in the US as an exam. How you know. How is it that somebody can really you know when all you're doing is trying to capture and ride the wave? You're not thinking about that. Wave crashing. What is your advice for people to to be able to do that because it is you know you even may see that. The people would read your book. But they didn't do it. What's your best advice? Encourage people to do that throughout the psycho. Not just obviously when things go bad. You've got to quickly put together your plan but to do it when the cycles good yeah. Andrew for me. It's a way of life so I don't WanNA reveal all my neuroses to the the audience but since you know the topic of your podcast and we're going deep here. I really look at it. Is Life Planning so for me? It's beyond just having recession plan for my business. There's a a life plan that I have for what I WANNA get out of this year. What I want to get out of the next decade what I ultimately want to get out of life before it's all over and so I think part of it is to embrace it and to have a plan for everything I think. At least in the US it feels like we spend more time planning for the holidays. Then it does that we spend planning our lives and so I'm not content to just let the winds of take me where they will really WanNa have a plan for where I WANNA go every step of the way so. That's the level at which I believe in this stuff and then I would the other point. Real quick is just that. I don't think we're speaking everyone. I'm really speaking to the entrepreneurs that understand that there's always going to be a disruption look. It's like the seasons of the year. Right there's spring summer fall winter and all we know is that winter is always coming and so same thing with recessions whether it's caused by virus whether it's caused by an interruption in the stock market or it could be an oil shock or could be the housing bubble that caused the great recession or could be the DOT com bubble. Any one of these can put recession in fact even agnostic. What's going on in the economy? Andrew if you lose your biggest client. You're in a recession. More of your best employees. Leave go across the street and started competing business. You're in a recession. There's plenty we all know that. We're going to have recessions in our life so to not have a plan to me would be like going up on that airplane that you mentioned earlier not having a plan for what if the left engine goes out got it. That's great you know. I want to tell you a story. Jonathan about something that happened in my own business and that was did we had an opportunity to kind of. Let's just say by a competitor in another country in this case Vietnam and it was actually going to be a partnership and there was a lot of good to this thing and so what we did is. This is for our coffee business. Coffee Works and what we did. Is that Dale? My best friend who runs the business also from Hudson Ohio by the way while daily so he was pretty excited about the idea and so basically what we decided was that he was going to research this deeply as he could and that he wants he got all the information he could possibly get in by going there meeting with people going through all the scenarios putting together is is sales forecast then he would present that to me and I would not criticize anything about that now. This sounds a little bit strange because I mean that's the whole point of considering a businessman. No I would celebrate all the positive things that he saw in that. Look at how those could potentially work map out if they work. What would it mean from a revenue from a cost perspective? Then once we did that and he did a great job of presenting all the numbers went to everything and then we decided that we wouldn't give any feedback or discuss much about it at that time except you know ask some questions about that and then then we decided we'd meet again next week and so we met again one week later and we decided at this meeting would be everything that could go wrong with this investment and you separate your research into the upside and the downside. It's remarkable how it helps because it was no longer a threat to his idea or something like that it was like we've agreed we're going to share this thing apart and when we tore it apart we went from this jubilation and excitement about this idea until by the time we tore it apart. We realized it just wasn't that attractive and we decided not to do it so I highly recommend you know people to think about return and risk in two buckets and that can sometimes help you to create the plan that Jonathan's stalk him out about having dry your life that you have both an upside in downside plan. What do you think about that Jonathan? Yeah I mean I love that and I was furiously trying to remember the name of a book. I just finished. It's the story of blackstone and its founder Steve Schwartzman and he talks in the book specifically about the power of red teaming an investment and. I think that's really what you're referring to. Is that a lot of times you know. Humans we even optimism bias. It's one of our cognitive biases. So we always want to look at all the positives. The upside and so they attribute their success at blackstone. One of their core principles is to really have a meeting before they make every investment and the entire meeting just has to be picking the deal apart trying to come up with reasons not to do it because it creates a culture of if all you can bring up at the meeting our problems then everybody feels comfortable doing that whereas in a lot of corporate cultures and really in a lot of discussions. Nobody wants to be that skunk at the Garden Party. The one that is the first one maybe bring up something. That doesn't work because bosses excited about the idea you know so. I love that idea that to really get around that cognitive bias that humanity if we want to save ourselves from our own humanity. We need to make sure that we give ourselves permission and just come up with a set way to do that. So yeah I'm completely with you and perhaps if I had done that with my deal I may have avoided having to borrow are all from my mother in law and the last thing for me is I remember going. I went to school at Kent State. I didn't have any money and I managed to get a woman. Catherine O'Brien from the Ohio state disabilities that gave me because you're a recovering investment banking. But I'm recovering much worse. There's a twelve step program out of Akron Ohio. In fact that is what I belong to in I was I was broken at the age of eighteen nineteen and it was the twelve steps. That really got me back in. This woman gave me a grant from the state of Ohio for five hundred dollars that got me into Kent State. And that's where I started my education and I remember walking I. I started studies psychology. But then I decided you know. Let's check out some other classes and I walked into this economics class and there was two hundred people in the class. The teacher walked in and I was sitting in the back of the class right and he said good morning everybody. There's two hundred people in this room. Let's just draw a line down? The Middle One hundred of you will be gone by the end of this semester and out of the one hundred that remain. I'm only giving ten ace. Let's get started and I thought damn it. I'M GONNA GET THAT IN THE NEXT TIME. I I was in that class. I move right to the front row and it inspired me. That guy can't even remember his name but he sparked the seeds of of learning in me but what he taught that you know. I remember very well because I studied very hard. Is that when boom times happened when interest rates are low? When when everybody's excited marginal players come in they have access to capital and they get into any business area and when they get into that business area basically. What eventually starts happening is that you get oversupply and then profit margin. Start to fall and then next thing you know you go into some sort of slowdown crash you know. Whatever it is and those marginal players only a small number of them will actually survive that. And that's part of the actual nature of it and that the stronger ones are able to emerge from that and what he basically taught me. Was that human behavior and economics have explained this for a long time. And you know the only one the one caveat for the US in what's happened over the years is that the Fed never let the interest rates go up and the result is it. Fueled a flame of you know of entrepreneurs coming into businesses. That they probably shouldn't have been in and that is a huge part of what fueled the bubble because I think it's from my perspective as a financial guy and what I've told my clients over time. Is that the problem is definitely not corona virus. The problem is that we were in a massive bubble a massive amount of debt and we were at the peak of profitability and that sought market rise was driven by tax cuts in extremely low interest rates. It is completely obvious that that were all those are all the factors driving and just as much as I would say. It's probably obvious to most people that if you completely stop your economy you're going to cause hundreds of millions of people to suffer immensely. It's completely obvious to me but I think at this point. It won't be obvious until after it's done. So that's some thoughts on that and any other things that you'd wrap up for this part of the discussion. Yeah well I think the quote the Warren Buffett one when the tide goes out you can see who's been swimming naked and I agree with you that there were a lot of people swimming naked. We published the book in September of last year because we were looking at the yield curve and we were looking at the yield curve inversion and I don't want to bore the audience. I'm kind of an economic gig but that one economic indicator has predicted all the recessions that we've had at least in the US and the end of World War Two so when we saw including this one now there was some doubt. Yep Yep eight in so again. None of us knew that this black swan event would put us into a recession. If it wasn't this it's like I said earlier. Spring leads to summer summer leads to fall. Fall always leads to winner and we had sown the seeds of this recession. It was just the straw that broke the camel's back in this case was corona virus cove in nineteen. It could have been a lot of other things but one were playing at back in the future. Coming out of a recession it is going to be harder to get capital. Banks are not going to want alone and so that will mean that entrepreneurs will have to either have stronger better ideas or be better faster or cheaper than their competitors and that's the the basics of how the economy will get jump start again. I'm just hoping that you know the audience listening today will figure out how they can rock the recession and then ultimately rocked the recovery. Because we're all going to have massive opportunity especially if you're smart enough to listen to your awesome show yet so I think rather than ask you about what one action that you would take. What I'm going to ask you about is what would be one takeaway that the listeners would get if they bought your book and read it. You know what's one one thing that they would gain from that and I'm sure there's much more but then I think people can decide. Hey I wanna I wanna read this well so we. We didn't write the book just based on my experience. It was really going through and doing the academic research reading all of the scientific studies on pass recessions to try to draw out of them the Golden Nuggets to ask people that actually made money in recessions. How they did it. And what was different in the pull that together. So there's some of that anecdotal wisdom Andrew but the top thing is that we've got a twenty question recession readiness assessment in the book. And so if you get the book if you take the assessment you'll be able to benchmark how well prepared you are for the recession and I think. Best the top value add. Is that instead of being subjective? You'll get a score from zero to one. Hundred Zero is not at all prepared. Hundred is looking forward to the recession. Because of how prepared you are you'll get your score and from there then you can start to decide what you WanNa do with that information. Maybe it'll be a life plan. Maybe it'll be a recession plan for your business. Maybe it'll be a mixture of both but at least you'll have a baseline for how prepared you are versus. Everybody and I can tell you that as of today they average score that we're seeing is thirty. Eight people are not very well prepared. So if you get the ball take the assessment. Or if you don't WanNa get the buck you can just go to recession dot com that yes that is my website. And you can get the assessment there. It's free but yes. So percentage dot com to take the assessment. Or if you WANNA gone Amazon if you can even get stuff there right now you can get rock the recession there to got it all right last question. What's your number one goal for the next twelve months? I am trying to be at home in Cleveland more. I had traveled a lot over. Twenty nineteen so. I spent you know like like you said in the introduction did over one hundred as a year of strategic planning with teams over fifty of those this past year or outside of Cleveland and so this year twenty. Twenty I'm focused on being at home more having more virtual clients so actually for me. A lot of this has been using this corona crisis to really get better at my virtual meeting capabilities so to figure out how. I can do virtual meetings how I can make this work so I don't know the the universe must've heard me in part because this is helping to make me have to hustle faster to get here to where I wanted to go all right listeners. There you haven't another story of loss to keep you winning to find more stories like this previous episodes and resources to help you. Reduce Your risk visit my worst investment ever dot com as we end. Jonathan I want to thank you again for coming on the show. I know it's painful. Talking about are losers but our listeners are learning to win as a result. And I want to congratulate you for being one of the brave ones who has turn your worst investment. Ever into your best teaching moment. Do you have any parting? Words for the audience. Just want them rock the recession want them to be able to be in position. Iraq the recovery so that they never have to borrow money from their mother-in-law like I did. Thanks so much for having me on rock on rock and roll. Well that's a wrap another great story to help us create grow and most importantly protect our well fellow. Risk-takers I'll see you on the upside.
Bijay Gautam Take Your Career Advice From People Who Know the Industry
"Wow I'm also making name. Here at the top organizers. And they're recognizing me and guess what entry one and a half years of doing that. So I realized I was running dot vase and I was winning that race interesting but without asking myself. Is this database. That I want to run low fellow risk-takers and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that a winning investing you must take risk but to win big. You've got to reduce it. Today's episode is sponsored by the valuation masterclass Online. The complete proven step-by-step online course to guide you from novice devaluation expert. Podcast listeners can claim your amazing thirty five percent discount by going to my worst investment ever dot com slash deals. My name is Andrew Stotz from Stotts investment research. And I'm here with featured guests. Bj Gultom BJ. Are you ready to rock? Hey Andrew bring it on. I'm super super excited to be on your show. Let's do this all right and I am really excited to have you and let me tell the audience a little bit about you so bj's the CO founder of W Y N Studio a company that creates podcast for brands. Ladies and gentlemen. Listen Up. This guy knows about podcasting and how it can build brands so he hosts one of the top podcast India the inspiring talk on this podcast chats with top entrepreneurs bestselling authors thought leaders and celebrities about their journey as India's podcast coach and consultant. He has coached over one hundred people and helped over five organizations launched. Their podcast is conducted. Podcast workshops and trainings across the country reaching over two thousand participants has been featured in various media and is a frequent speaker at conferences and events but before all this began. Bj was working as a research scientist in leading pharmaceutical company. He was clearly losing motivation and drive in his life. And that's when he started the inspiring talk and within fifteen months of starting his podcast. He quit his job to follow his passion about podcasting and people through his podcast. My goodness bj take a minute in. Philly for the tidbits about your life. Thank you so much for that in true. Andrew as you mentioned I was booking is a research scientist for a pharmaceutical company. And that's when I realized this is not something that I want to do with my life when I looked at people who wear five US ahead of me in that career right who attended ahead of me and I couldn't see myself deal when you know even if I got promotions and all the rages on everything year on year and if I reached that position in five years ten years and I couldn't see myself being happy and that's when I called pugh. This is not something that I want to do with my life. And what's the next thing that I want to do? And that's when I started thinking. Hey wouldn't it be interesting to reach out to already successful people and asked them? Hey what's been your journey like. How did you figure out what you wanted to do in your life? Because I had no idea what I wanted to do next in my life and that was the idea I wanted to ask people how they figured things for themselves in doing so maybe just maybe I can find a blueprint to figure out what I want to do in my own life. So that's how I started reaching out to entrepreneur. Ceo's taught leaders in different people and started interviewing them. Fall my podcast. They'd sparring talk. And that's how I got into podcasting and I love this medium so much. I always wanted degree day. Deal Jockey as a kid and I'm sure most of the you know a lot of people who are listening to this podcast if you know hard radios as a kid. I am sewer at one point of time you wanted to be radio jockey and I wanted we. The savings will and you know. I love this medium. So wasn't I thought okay bomb. This is what I WANNA do. That's how I got into podcasting now. I do bought US flu time. It spot gusting. And I now run a company that creates podcasts for Browns and you know people who are looking at building their personal brand so yeah So much to that story. I mean the first part of that story that I find interesting is that there's a lot of people particularly in Asia but across the world that are in jobs and careers. That really aren't satisfying and they may be there. Because their parents told them study accounting you can get a job in that or whatever that is but they find themselves in a situation you know that they're not satisfied with their happy with and yours is an example of exploring outside of that to try to find where you can find your happiness. The second part only in Asia. It's like a global phenomena and was looking at this research in fifty five thousand people said Damn unhappy with the absolve and that's that's more than half of the population. And that's you know kind of world that we're living in today it's shocking. It's just shocking. I would say the other part about your stories for those people who are listening and aren't satisfied with your job. Start exploring about what else you could do. And it may be podcasting it may be something else but explore and explore why you got your job looking around and then try to find some area where you could try to build something and build something new in. I teaching. For instance about finance and stuff. I get a lot of people that are engineers that say. I WANNA move into finance. And they do that. So you know number one is explore and then the last thing I'd say is that the world of podcasting you know what's so interesting about your story is that you started a podcast to try to answer a question that you had and that is what should I do you know and you started asking other people. What are you do and that is you know? The opportunity in podcast is just endless by being able to ask just that question. You could ask that question to a thousand people over five years and you would actually become a massive expert in that area so while a lot to your story. Well now it's time to share your worst. Investment ever instance knowing goes into their worst investment thinking. It will be tell us a bit about the circumstances leading up to it and then tell us your story well so I mentioned about becoming an artsy and how fast it was about the audio or being just in media because when I was growing up as a every single function at my school I was the guy who would be up there and stays hosting the program who is leading the different divisions that you know. They used to create in school where the dots four different competitions. Whether that's for just building kind of community a team in this school and I used to participate in all this debate competitions and all this speech competition. I was that guy who always loved talking and being in front of people and so for me naturally. I knew that I need to study media. I need to go and study communication and media and get into this medium off. Being Arzi or being a television presenter. Are Anything that has got to do with you. Know going out there putting your face out there and talking and when it completed my high school and when I was thinking about what do I want to study at my callers and Dot Swin when I spoke to a couple of people asking? Hey what do you think that the media is a career has good opportunities in the future and the people whom I went to ask for the advice on other people who come from media background or who has any idea what they're talking about and this people went on to tell me. Now tell you what media is now going down. This is not a good career option for you to opt in and You can make a lot of money if you're going to media say it's better that you pick something reaches hot and that's how. I got into pharmacy because a lot of people told you know what this is. Pharmacy is really hard. And it's opening a big time. Now there are a lot of you know. Pharmacist JOBS BEING CREATED EVERY YEAR. So you should go and study pharmacy. And that's how I got into pharmacy. I invested my four years. I invested all the amount you know that I had all the money that had to study. Something Study Pharmacy and I did that for four years and when I was doing that I started feeling that this is not something I wanted to do at the end of. You know fourth year of my callers and when I started we didn't before steer and his interesting thing. Even when I was studying pharmacy I was topping call is I was getting scholarship for getting good number. I was being awarded as the best student of pharmacy and the finally I got placed in the top pharmaceutical company in India and now for the outside world. It seemed like a success. This guy made it right and for me as well at one point of time. I caught in know what I'm talking. I'm getting older scholarship. I met it now. This is what I wanted to do. I felt that's an even on the job on the first you itself. I got awarded as most promising candidate for our organization. And that also said Wow amilton making you know name here at Stop Organization and they're recognizing me and guess what Andrew One and half years of doing that. So I realized I was running vase and I was winning that race. Interesting mean but without asking myself. Is this database that I want to run and bats something that I did for seven years while my worst investment would be the amount that invested for my college education and the Sabin years that a whis did do something without realizing. This is what I wanted to without asking myself. Is this truly what I WANNA do? Is this truly what in what will make me happy in my life and that would be the worst investment. But here's the interesting thing. I called it Crete after investing seven years saying that. Screw the seven years that I've wasted but I want to be here and whisked into the seventy just because I wished at Sabin we in fact a lot of people do because they have wasted. Oh my God. I hope within seven years of time if LET'S IN Z. An amount and money everything to do his thing and you know but how can I now quit this and try something totally new but for me? I didn't wait for seventeen. Seventy or twenty seven years to just have that realized and take that accent. I did that but still the worst investment for me was to go to the callers and study something that I had no idea I wanted to do and I loved it and then you know taking up job so that that would be worsened. But I'm Andrew Yep and let me ask you just before we go onto the next question. I just want to go back to your story and I wanted to think about kind of your low point in those seven years and that that was the point that you hadn't yet decided to leave but you also kind of were really starting to realize that this was the wrong place and I want you to think about you know. There's a lot of people if we if you said the statistics that you said about people being unhappy in their jobs which I think is very true. Think about that person. That's at that point. Can you just describe? What was it like to be in this period of time? Where you you knew you probably when you finally realized that you really weren't where you should be so I would define that period is the frustration so I think that would be most prominent emotion that I failed at that point of time. Yes I would frustrated with myself. I was frustrated with the environment and more soul. The environment that it was at the organization that I was woking was was full of other frustration people and when you are in that company of people who are frustrated. The negativities is something you are surrounded with and when you are surrounded with negativities anywhere surrounded with people who are complaining. It's not saying that I'm not complaining. I am about that. You know that group of people who are complaining frustrated so when let frustrations started heating is remember how uncomfortable I was. I remember how much you know discomfort. I will zine wanting to do something in my life but have no clue what I WANNA do next in my life and I also failed stock. I've made saw no way out there because the one thing that I ever knew was to become a scientist to be there in the lab and walk there but I have no idea was the next thing that I wanna do so I was frustrated and I felt stuck and I had no idea what I wanted to do next. So yeah those rigs that affect and I. I'm sure a lot of people can relate to the feeling where you see that there is no way out there you feel stock and you cannot do anything and none of the options in seems to be working and can get you excited and you really feel like damn where am i. what am I doing. Sadat's EXEC fans and I think the other thing I would add to. That is that other people may not be very helpful in that situation. Because you know your parents may say well. You've studied in that you know. Learn how to do it or even in my case with my own father at the time when when I was younger you know he would be like suck it up. I've had years where I didn't enjoy my job. And he can get a lot of different feedback so it may not help you know so true and in Asia bad and it has got a lot of control over their kids. And what's more even interesting to that story? Andrew is since that you have been about you know not other people helping. My parents wanted me to go and do masters in. Us IN FIREFOX MISS. Here I am. I listed my six years off my life doing two years of four years of my college degree and my parents want me to go to the US and wist enter the two years for master whist a lot of money for college education in us. And do the same thing that I hit and do the thing that I don't like I saw agree with you that people do not understand what you're trying to do and now imagine you saying that. I want to kick the seven years that I've wasted and WANNA do something. WanNa Start fresh so mislead. That is not something. A lot of people in your network would understand. They would say you have gone crazy exactly all right. So what lessons did you learn from this experience? So one of the things one of the most important lesson when I look back it and when I was just thinking about what probably would be the biggest takeaway for me when I look at the entire life journey of mine. As the most important one would be daunte. Take advice from someone who has not walked the path that you WANNA walk so if you remember I went and asked to couple of seniors in high school. Seniors are into the people who were just getting started with your callers but they had no idea about the media or any of the field so I just went and took the advice and you know just leapt by it but if I had gone to somebody who has walked that somebody who was in that field than maybe they would have guided me bitter. So that's one and second one would be. I always knew as I mentioned a key that I wanted to go and study media so probably if I had followed my gut without thinking about if I'm GonNa make a lot of money if this thing has got a lot of career choices if I'm GonNa make it big in this or not if I had followed my on gut citing. Sometimes it's very important for you to share a listen to you on hot and listen to your gut and just gory did without listening to a lot of people so these would be too key takeaways for me when I look back at that story. Great Okay let me summarize what I took away from it and see if I if I missed anything but one of the things I wanted to talk about was the sunk cost fallacy and we have this fallacy in investing and just in life and that is because you've sunk time money energy into something in this case seven years. We oftentimes are very slow. To let go of that and so the reality is though what is gone and done is already gone and done. And so in the case of investing a lot of times to deal with sunk cost fallacy. That say you own a stock and it was at one hundred when you bought it and it goes down to. Let's say eighty sixty or forty and it goes down. You know the question that you have to ask yourself is if knowing what I know now about this company would I buy it today at this price and it helps us to kind of get zero based thinking to say imagine. I did not invest those seven years. What would I do? And this is very helpful. Tool to try to break free from the sunk cost fallacy. The second thing that I take away from this that I'd mentioned about he said you know it's kind of interesting because when I looked at own self when I was younger studying in university I never asked the question you know. Are there good career prospects in this particular area? I was studying. I never even brought that into my consciousness. When I was choosing my major and you know on the one end you could say well. It probably would have been a smart thing to do but on the other hand. Maybe it's just a distraction. Maybe you know the fact is find a place that you really enjoy what you're doing and build your little area in that spot and don't worry about you know the overall industry and so that's something that kind of made me think and then the last one is that. I've been in situations as I'm sure many of the listeners have where you find yourself talking about negative things and you find yourself complaining and I found myself many years ago in job constantly telling people that I was busy I so busy and was very stressed and all that and I kept repeating this when people would ask me. How's work and all that and what I ended up doing is designing somewhat of a mantra that I said each morning and that mantra was one of the things that I said was all. My words are positive. Then I repeated that every single day and I repeat at Sunday's many times until it created a little radar in me so that when I was not speaking in positive words I knew it and therefore I stopped speaking negative words. I tried to only speak positive. Not doesn't mean that everything's positive in life but I believe that just spilling out. Lots of negative just doesn't necessarily solve the problem so if somebody is stuck in a situation where everybody is negative. You know try chanting to yourself every morning. All my words are positive. And you do that every single morning. Maybe two or three or five times a day and then do that for a couple of months and you'll find that it really does change your thinking and it helps you to understand the environment so those are my takeaways. Anything else you dad. I think you have summarized those very nicely. Andrew Yard think in summary. Those would be solved a key takeaways from the story. Okay so based on what you've learned from this story and what you continue to learn. What one action would you recommend our listeners? Take to avoid suffering the same fate one action so I would like them to stop and ask themselves one question. Ask yourself is this investment that I really wanted to make whether that's the investment in your relationship that you are in our with US investment of time that you are putting in our with us the financial investments. You're making something our investment that you're making and people just stop and ask yourself. Is this really the investment that I wanted to make in my life is really this investments going to help me in the dreams or goals that have and if the unseasoned no? I know it's going to be hard. I know it's not easy when you have the answer nor for the investment that you have been making fun of the biggest investment that you have made. I know it's difficult to move on from that situation but I think that's the right thing to do for your on happiness for your peace of mind. Go ahead and ask yourself. Is this really investment that I wanNA make in my life? Great great question all right. Well now it's my last question for you. What your number one goal for the next twelve months. Who signed super excited about you? Know you mentioned on the introduction about the wfan studio. We have started wwl studio back in November. It's still a tiny little organization part for us. You know our goal with that organization not for this year. Obviously I mean it would be too unrealistic if I say we want to become number one podcast company in India. But that's even should be the goal that we're trying to chase. We are looking at creating. Some of the amazing shows that people would want to listen to and hear some of the beautiful stories to share for this year. I would say just laying the foundation to build a great company. So that's really something that's exciting me for the next. You know grail months great and I'm GonNA put everything in the show notes so anybody listening that wants to follow that story. Get INVOLVED. Used the services of Bj. Make sure you go there so listeners. There you have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help you. Reduce Your risk visit my worst investment ever dot com as we N. B. J. I WanNa thank you again for coming on the show. I know it's painful. Talking about are losers but our listeners are learning to win as a result and I want to congratulate you for being one of the brave words who is turn your worst investment. Ever into your best teaching moment. Do you have any parting words for the audience? Thank you so much Andrew. Thank you so much for having me on the show. I really enjoyed being on the show and love the insights that you yourself. Bring in the kind of person that you are. Thank you so much. I really enjoyed having gone to listen and for listeners. Don't forget cross that question to yourself beautiful. Do you have a good one. Thank you for all those good words and particularly I love how. Bj said before he said asked the question he said the word stop. And I think that that's an important thing in our life is just stop sometimes and then asked that question. So that's a wrap on another great story to help us create grow and most importantly protect our well fellow risk-takers. I'll see you on the upside.
Laura Cho Do Your Research Before Buying Online Courses
"I mean for me it's. A mile but without regret I ride away pay for it because I can pay with a credit card. and. Then when we started the class I came to realize that she is not giving the value to the audience. She know how to attract clients but she don't know how to give value to the ion. Low Fellow risk-takers and welcome to my worst investment ever stories of lost the keep you winning. In Our community, we know that to win an investing, you must take risk but to win big. You've got to reduce it. My name is Andrew Stotz from a stotts investment research, the worst podcast host, and I'm here with featured guests. Laura Cho- Laura, are you ready to rock? And never percent ready. Let's do it. So let me tell the audience about you. Laura is an international certified coach and founder at Lord Show International Coaching Millennial clients of talents to build successful careers by unleashing their full potential. Using. Her HR expertise she is a public speaker sharing HR and career topics on various stages in Hong Kong Singapore Cambodia, and Myanmar at universities radio shows online platforms. And Public Seminars and ladies and gentlemen. Today is performance on podcast. She has been featured in stories of Asia the Myanmar Times Human Resource magazine in Hong Kong and Seven Day TV Laura take a minute in Philly for tidbits about your life. Thank you do or invitation to the show. Hi Everyone. My name is Laura. An on brought up in Yemen and I am extra processional as be walking in Korea for more than a decade. I, feel old whatever I save. So throughout my career, I have all from different imagine national academies and loss two years ago I walked in Hong Kong walking for the regional office overseeing Saab Asia country, and I love a truck Korea because I, this is the career where again make impact to other people ride. So from that because my career is in Asia I am passionate in Dil-, match. So I started my career coaching last three and a half years ago and I would so a do how others. Holiday exit exit interview and how they are getting most of their career. So I started doing a side Hustle in career coaching, and now I'm back in Myanmar and I'm walking as hell extra in one off that insurance Tammy and also doing career coaching that's exciting I mean everybody wants to have a side hustle these days but I suspect that you have to work pretty darn hard to have your full time job and a little side hustle. How many hours a day do you work? Twelve hours. That's dedication. But that's the thing is i. we talked earlier that I at a side hustle when I was ahead of research back in nineteen, ninety five or so we set up coffee works Mike Coffee Company in Thailand twenty, five years later it's a successful business so the side hustles can payoff. In addition, it's valuable for your company and it's valuable for your clients because you're bringing your knowledge from your own experience out to the world and ultimately the good people out there looking for the great jobs you're going to see him first. Acting. Exactly. Yeah, antastic. All right. Well, now it's time to share your worst investment ever, and since no one ever goes into their worst investment thinking it will be tell us a bit about the circumstances leading up to it and then tell us your story. Thank you. So this is my favorite time to share my woes investment irony shared that and business my very first time. So when I stand career coaching. Andrew mentioned right I have to pick up a lot of skill set running the website and doing everything. So I was like all I should stop picking up the business knowledge, but that's why I was so eager to learn something and I still remember the time I was in. Hong Kong. So I have a good income rise I was like, why don't I invest something which pendant benefit on my side hustle? So one day I, saw an ad on facebook I lady was living in Hong Call and she was giving a business. Without knowing anything about her I was so attracted to her because of our copywriting Rach because she has very good copy writing and she was attracting clients aside while this is the person that I can trust and I can I can love from her I what I think about it. I was because I take from your mar and I thought that people in Hong Kong. Has Much. More knowledge than me and she has been sherry many good things about how business in everything. So without taking some time to think I invested in bad 'cause, it was quite expensive because I have debate USD and it was quite I mean for me it's extensive a mile but without regret I, ride away pay for it because I can pay with a credit card. And then when we started the class, I, came to realize that she is not giving the value to the audience. She know how to attract the clients but she don't know how to give them value to the clients and on the other hand when I feel is that s a trainer. All S A coach she was not opening up whenever I asked the question do i. She was like not knowing anything you're asking a stupid question and I was like if I know in. A lot from you. So. What happened but I waited like till the animals that caused but I've seen so demotivated and I'm blade to myself I'm not listening to her I blamed myself that I should have done the proper thinking and broker checking bustle I invest in that dry because I feel that whenever we are so excited about learning something because a lot of people many people tell that it is good the best investment you can make it invested in yourself right I have that in my always. So whenever I invested my law man I didn't think much like Bond House, right? So the right after that class after I think one and a half months I did not thank you know to be honest. I was like, oh. My God that reality and the price that are be is wolves last I should have invested in other coaches. So six that I feel I, need to recover my myself that lending a and I was using a lot of negative self talk to myself that Laura you are stupid while you're not taking time to think about it. So that tie it was a nightmare because I lost my money. Yeah. Yeah. So I feel a bit demotivated pick up the causes for some time but I get up myself and I was like, yeah, you have made a mistake but. If, you're not getting recover and learning from it. You want stay make the same. Investment, right. So I know down the things that I want and what I should do it better next time. So let's go through those. Let's go list. So complaining about you know this is a great topic because people who are at home right now they got time they want to improve themselves online courses are important and there's all kinds of online courses out there. Yeah. Tell us the lessons that you learn. All the first lesson island is, but for you think to invest in someone because they are a lot of coaches, a lot of trainers so many good evidence, Matt, ride, brush. You should take some time Delano about that person. So these days what I, what I do is I follow some people for some time and I feel that they are giving the value of free content even all that free content I can trust in that person and I read all the reviews off they are past clients. That's one thing that I did that I do and another thing that I do it's I calculate the return on investment. Let's say if I have to invest like what Andrew USD for this call, what will be the return on investment, how it will benefit for my boss of law met to my side Hustle Yum, and another thing is that taught one that island it's usually didn't land from someone who others are saying that oceans very good but sometimes you have to know yourself right Because Andrew and may have different experiences if Andrew find that person useful but that person will be useful for me because you have so much experience though you you can resonate with that person but I have a lot of experience alone. So yeah different people have different learning styles, different backgrounds, different experiences. So we need to realize I was off before we invest for our. President of lawman. Got It. All right. Let me summarize what I took away from it and we can talk about that too. You know when I interviewed a lot of people when I also get written stories of loss, I've had more than five hundred written stories of loss from the written stories loss and the interviews that I've done. I've identified six common mistakes people make. Number. One, they failed to do their own research that is the number one most common mistake and I think we can take that one and say, yes, you probably didn't do enough research on this lady and her course. Number two failed to properly assess manage risk Nah, probably not this case number three dramatic emotion or flawed. Thinking is possible that emotion got you excited. You know about it number four missed place trust. Whether we're investing in money into somebody's business and we don't really know who they are or something like that. This is a case possibly a misplaced trust also, and then number five is failed to monitor their investment which doesn't apply here, and the number six is invested in a startup company, which is very dangerous. So I would say that you know the lesson I learned is trust and research you've got to build trust and that's the lesson that I learned by a US talking about the idea of see their free content you know I bought A. Course myself but plenty of them and I signed up for free content from this guy and he sent me free content over and over again and. I delete many of the free content that comes to me but this guy I don't know I just like the way you wrote I'd like to a spoke he gave me some things that were valuable. It was a year. Then one day he sent out an email and said I got a special offer on this particular course and I immediately signed up and I don't regret it. You know and it's that thing that you talked about. So I think he's great great advice to understand the free content. It's another person and get to know offer also. Thirty DAY MONEY BACK GUARANTEE In all of my courses, I, sell I say basically I say I, don't want your money if you're not satisfied I, have a no questions ask. One hundred percent money back thirty days guaranteed. I don't even ask what didn't you like nothing if a student says, I want my money by done. And look for that type of guarantee on any course that you go for. The last thing. Is what you mentioned, which is kind of an interesting point about kind of depends on what level you're at. If, YOU'RE A beginner investor and you're going to an advanced course is not gonNA work. Yeah. It's going to be a bad investment. The second thing that I think is really important. You didn't mention but I'm sure you're probably thinking about. Are you ready to implement what you'RE GONNA learn. That's Why yeah. Waste we signed fossil may cause us right especially. This I have been seeing like the easily sign up, but they never finish it. Yup and I can tell you I've had more than three thousand students through my online courses and I can tell you that it's probably pretty true then on me about ten percent of them, make it to the end. Yeah. And that basically means that they are driven by emotion and so it's important when an individual I think for the listeners out there if you are thinking about buying a particular course, you need to ask you know get free content understand this person. So you know you can trust to make sure that there is a money back guarantee that very clearly stated. And then the other thing is make sure that it's the right level for where you're at. So I have, of course, for instance on how to start building your wealth investing in the stock market for absolute beginners. And then I have more advanced one called evaluation mastercards for people who really WANNA learn valuation. Those. Two classes they're never going to cross over. Right. So you've gotTa make sure that you know you're buying something that's at the right level and the final thing is, are you ready to put into action what you learn because if you do not have the time or you're not suffering enough or want change enough in your life and you think just paying for and up is going to get you there it won't you have. To Act. So wow so many things I take away from your from your story. So based upon what you learn from this story and what you continue to learn, what one action would you recommend our listeners take to avoid suffering the same fate there's some people out there listening that are just about the press a button on a course one piece of advice would you give him? Take Time to press that button and then you have to think what other steps that Andrew has mentioned fall and have you have done the homework probably Beautiful. All right. Last question. What your number one goal for the next twelve months. Upgrading Myself do equipped with more business knowledge. That's exciting. Now, someone a young person would look at you and say what more do you have to learn I mean you've your experience you've got international experience. What is one thing that you really WanNa Learn Reading a business is not easy. Yeah. So I'm just running side hustle. So if you I want to flip back around to the WHO has up, there are a lot of business guild that I need to pick it up. So many. Challenging. Changing allergy exciting it's exciting is challenging though I mean I know one of the things I'd share about it in my own experiences that I studied finance. I looked at things like marketing and I when I was young I was like Oh that's easy. You know. Not at all. Not at all. I teach in the masters in Marketing Program here at Thomason University in Thailand and I teach finance to the marketing students. But what I can say is that I have a whole `nother level of respect for what people do in marketing and sales. So that's the big and sales there is no business yeah. So. All right listeners there. You have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help you reduce your risk. visit my worst investment ever dot. com. As we end. Laura I want to thank you again for coming on the show I know it's painful. Talking about are losers but our listeners are to win as a result and I want to congratulate you for being one of the brave ones. I say Bray because when I asked most people to come on the show, you know what they say they say, no Andrew, I'd prefer to talk about my winners. So, congratulations you have now turn your worst investment ever into your best teaching moment. Do you have any parting words for the audience? Keep investing in yourself and Igwe appealed all the time but make the right investment. Right on. Well, that's a wrap on another great story to help us create, grow and most importantly protect our well fellow risk takers. This is Andrew Stotz, the worst podcast hosts saying, I'll see you on the upside.
John Lee Dumas Avoid the Sunk Cost Fallacy by Testing Your Idea in the Market
"One of them asked for a refund within twenty four hours. The second one ended up being got nightmare client. We're after fifteen days when she backed like the fourth time being like Oh, you missed taking out that at minute thirty seven can you go and do that? I was like Oh my goodness like this is a nightmare. Lo- fellow risk-takers and welcome to my worst investment ever stories of laws to keep you winning in our community. We know that the winning investing you must take risk but to win big, you've got to reduce it. My name is Andrew Stotz from a stock investment research and I'm here with featured guests John. Lee Dumas. John Lee Dumas are you Iraq? I am prepared to ignite Andrew thanks for having me here. Brother I'm fired up. Yes. Will for the audience out there don't know J. L. D.. He's the host of entrepreneurs on fire award winning podcast. He's got more than two thousand episodes a million plus listens, Amman seven figures annual income. You can learn all about it on eofire.com I learned about John and about podcasting from him when I joined podcasters paradise in two thousand and fourteen that six years ago. That's his community which I just checked your at two thousand, five, hundred, one members. Oh Look? So I just wanted to end this little brief introduction by advising my listeners for those who want to become podcasters I think the best way to do that is go to the apple podcasts that John's made call free podcasts course. And Listen Up Now. John take a minute and filling for tidbits about your life. Yeah. So now the down here in. Puerto. Rico been down here for four years and you know to kind of talk briefly about the flip side of the focus of your podcast. The best investment I ever made because I went from California, which was every three months just rating my bank account taking all of my money and not to mention the end of the year slapping on. One point, five percent franchise fee to top it all off on gross revenue and what not even getting into the federal tax and I left that fifty one percent tax states in federal area to the four percent total tax haven of Puerto Rico four years ago. Andrew Man can you build a financial war Chasse when you're paying four percent tax? The answer is, yes, I've done it. and. It was my best investment ever. Yet I've remembered that move 'cause I've been listening to you since the beginning basically walking around the park here in Bangkok. But the one thing you know when you first made that move like, wow this I wonder how this is GonNa work out. Yeah but. One thing about you that I think as a finance guy, you know you basically smoke most finance guys with the amount of disclosure that you give and the success that you've had. So for anybody out there, that really wants to understand the business of podcasting broadcasting and all the other things that you do really go to Eeo fire you know on the podcast or on the website and you'll get his income reports I mean literally I'm listening every single week and you know the lovely cade Erickson I have to say he is the best and you know she just does a fantastic job and Reading out what's going on and what you guys have learned it's just fantastic. So I wanNA thank you for that. Now, let's get into it. Now, it's time to show your worst investment ever since no one ever goes into their worst investment thinking it will be tell us a bit about the circumstances leading up to it and then tell us your story. So I want to quickly share my worst financial investment just as a brief little snippet because I think that be kind of interesting to hear but there's not a lot of meat behind specifically. So I wanNA spend the focus of my worst investment ever on actually a time energy in business investment than I made a myself that went horribly wrong as the focal point but. I I'll tell you I was just this clueless college students. You know I can't remember how I stumbled across this websites or maybe even investment book that I read somewhere about how you could make a lot of money investing in Penny stocks and guess what I know you can is true but you know when you're just doing it as a Dabbler in your knots you spinning. Your entire day in week consumed in what it means to to trade penny stocks. You're really playing with fire and I found that out firsthand where unfortunately like most people when they I have a successful investments, they think that. Oh. Wow like i. just know everything I. Am just able to predict the future you might as well change. My name is nostradamus life is good. That's. What happened to me? I found this penny stock after reading this book reading guys website and it was at six cents will never forget the night. I. Said You know what I'm GonNa just invest a thousand dollars and when it goes to eight cents I'm going to sell ensure enough I laughed I forgot to send like the Stop Limit Order on it and I went to. A class at art history and I came back in the stock was at twelve cents and I was just like Oh. My God and literally forty five minutes. I've just made a thousand dollars which for a college student is like a semester's worth of drinking and eating and doing all the things. So I was just like this is the best way ever to make money, and so I I cashed. Out immediately I sold and of course, the stock went up to eighteen cents and I was like, Oh my God what was I doing and so what did I do I bought the stock at eighteen cents and then I went to bed that night woke up the next morning log Dan like sometime around eleven am when the market a bit a couple hours in the stock was down three cents. I basically just gave it all back immediately when I could have just like you know my mind I'm like I if I I could have bought it back at three cents but of course, issues issue losing persons game because I didn't know what I was doing. It was completely random is penny stocks and so that ended up being my worst invest Nevarez that first initial luck to double my money, but then losing it all essentially all within twenty four hours I can never never forget like some of my friends like 'cause I showed them I kind of like thousand dollars an hour like can we give you money and you can do this forest and I was like? maybe let let me do the fund manager I. Yeah. Maybe I should just move into being starting my own fund here in of course, that would have been a massive disaster. So I'm glad it never came to that like honestly probably the best thing that happened was that crash that saved my friends and money, but that was my worst financial investment effort like I've never made a mistake like that agreed again 'cause luckily I learned my lesson. The. Focal business investments. A mistake in my worst business investment ever is actually on an investment in myself in my business which was back in two thousand thirteen. I was one year into entrepreneurs on fire and I said to myself. Okay. Now it's time to come out with a product with a course with an offering like I've built an audience out through my podcast. I'm really starting to understand what it means to generate revenue online. What's the next step in for me? The next step was that course was that offering? So sat down and I just said to myself what is the thing that might audience needs? I really thought it through again just in my own. Mind, which is kind of preloading to you know why this was such a big mistake and I came up with myself. This great business idea which was going to be this pod platform where you Andrew we're just GonNa Record your episode you're GonNa Send me the MP three I was going to edit it. I was GONNA add the intro at the outra uploaded to Lipson for you uploaded to your media hosts distributed out to all the podcast directories I WanNa do it all and I invested heavily in this I hired like ten people there were going to be working on all of my you know future clients that I was envisioned I was going to have so. I invested a ton of money into it. I invested a ton of time in band with into it, which of course, is incredibly valuable as well. Building up the systems in the tools and I opened the doors in I dot to clients to clients. One of them asks for a refund within twenty four hours. The second one ended up being that nightmare client. We're after fifteen days when she backflicked the fourth time being like Oh, you missed taking out that at thirty seven can you go and do that? I was like Oh my goodness like this is a nightmare and ended up being a huge blessing because had I gotten like fifty clients you know I. Would have had to keep going down that bad business road because I would have thought that like I can just get to make it happen. But because I got zero proof of concepts by only having two clients, one that stuck around in that one being a nightmare client I was just able to be like you know what this incredibly bad investments. I'm not going to go down the sunk cost fallacy of just because I've invested time and money into this that I need to keep pushing four, which by the way is why there's so many unhappy lawyers doctors out there is because they realize after one semester of law school or Med school, they hated their life. The career they've chosen, but they felt like it was already too late because they've invested like five or ten or twenty thousand dollars into the program. And I was not that sunk cost fallacy. Take me down so. Despite that being my worst business adventure in investment ever because it costs a lot of time. Took a lot of money for me to actually find out that answer at the end of the day man I am so glad I walked away I am so glad did not let that sunk cost fallacy take me down because it's like we wouldn't be talking today because I wouldn't have a successful business. I wouldn't have created time money lifestyle freedom which I've now done never would have had the reason to move down to Puerto Rico because I wouldn't have been actually profiting any money. You know my business would have a razor sharp profit margins in life would not be gut. We would be seeing you on the streets. So, let's just review the the lessons that you learn. I mean, I heard some of them I mean the. Not Know, it was all in your head and all that. But maybe you could just tell us the lessons that you learned from that. In the biggest lessons that I learned was this is like listen I created that concepts that product offering in my own head because I thought that's what my audience wants. Him Not once did I flip from my head in face outwards and actually go to whom I thought. My potential audience would be an actually number one asked them. What is your biggest struggle what you need number two run this idea by them and say is this something that you'd invest in and then the third part is if they said, yes and those people that said. Yes. I should have said, okay. Well, I'm going to be opening the doors in thirty days. So let's get a deposit from you. Let's put your money where your mouth is you're going to vote with your wallet yes or no right now, and if those people are like, Oh, I know I said I'd invest in it but like not ready to. So right now then you you gotta write those people off because that's not true needs. That's not a true solution to a real struggle because people that have such a serious need for specific solution. They will pay upfront for that. They will put that deposit down. So that's the RUB that I should have gone. That's the lesson that I learned Andrew like you mentioned podcast was Paris, at the beginning of this interview that was my next adventure that was my next offering that was my next step. So. What did I, do without lesson that I just share with that I learned I did just that I went to people and said, Hey, I just had this big failure because people want this pod platform but I'm looking at creating something different in the podcasting space. What do you want? What do you need? I listened to them I implemented the idea in the structure that's it, and then I went to them and said, Hey, if you WANNA be part of podcasters paradise I'm GonNa created an open the doors in forty five days. You can invest two hundred dollars now to become lifetime members because when I opened the doors is Going to be five hundred dollars. But if you invest now, you'll be an early bird and you'll be proving this cost extra. You'RE GONNA get this discount we had thirty five people make that investment which proved to me that it was worth me sitting down spending my time, my money he and my efforts to create this course forty five days. Later we opened yet we already had thirty five members and then more people started coming into that higher price point but that was only after improved the concepts that was my biggest less alert is I never have since then created something that I didn't I get proof of concept by actual people. Investing actual dollars into that offer. Mean I've seen you do that over the years. So you know it's real proof I. Think it my one take away from it to is that sometimes you can get confused about what value really bring to the audience. You know the truth is you weren't bringing technological advancements to the audience you bring Your Voice, your experience interviewing people and all that and that ended up being the thing that people were willing to pay for but at the end of the day. Andrew also, it's still timing timing because there's since Ben companies that now do just that just what I shared, but there's so many more podcasters. Now than they have this opportunity, they have such a bigger potential customer base. We're back in two thousand thirteen. There just wasn't this massive customer base yet in the podcasting space. So timing is the same thing which is something to learn as well in another investment takeaway as you know just because it doesn't work the first time. Timing could be the reason, and so it could be something that works down the road. All right. Last question what's your number one goal for the next twelve months? My number one goal for the next twelve months is to complete my first traditionally published book. It's called the common path to uncommon success and I signed with one of the Big Five Publishers Collins and very excited about the book in its concept and a practicing what I preach. I tell every single person you've got start your day with your most important. Work. So the first hour of everyday from me Monday through Monday Saturdays and Sundays included his writing this book right now I have over fifty thousand words completed them over seventeen chapters probably gonNA end somewhere around sixty to seventy thousand worse. I'm getting pretty close. But now, of course, there's the editing process in. That's my biggest goal for the next twelve months. Come Out in the spring of twenty. Twenty one I'm looking forward to it. I'll be one of the buyers. Yes. There you have it another story of loss to keep you winning as we end John. I just want to thank you for coming on the show. I know it's painful. Talking about are losers but are listening. Are Learning to win as a result you have any parting words for the audience. Final parting words is try not to become a person of success, but rather a person of value those words from Albert Einstein and they really changed my life back in two thousand twelve because I wasn't being a person evaluate I was just folks I'm being a person of success and. That was the thing that turned everything around for me was just focusing on being a person of value just like you Andrew are being here today. and. You know that's a great way to end it at just highlight. One other thing that that I always remember that you say including this but ladies and gentlemen I want to remind you with John's reminded me of many many many many many many times, which is focus follow one course until success. He's the man. All right. That's a wrap on another great story to help you create grow in most importantly protect your well fellow risk-takers I'll see you on the upside.
Richard Flint To Win in Life Learn to Find, Face, and Control Your Biggest Fear
"When I was sixteen been sixteen two weeks I was working at an idea grocery store in Ardmore Oklahoma and I called my dad to come get me and my my dad grow up front of the grocery store and stepped out of the car and I started to walk towards the guard just like I did every night detrimental? Wait a minute when he stepped behind the car he was carrying a suitcase and he walked over to where I was standing and he sets the suitcase down beside me and I was informed that that night my mother had a decided I could no longer live in her. Life in her house has low fellow risk-takers and welcome to my worst. I investment ever stories of loss to keep you winning in our community. We know that to win an investing. You must risk but the win big. You've got to reduce it. My name is Andrew Stotz from as DOTS investment research. And I'm here with featured guest Richard Flint Richard. Are you ready to rock. I'm really Andrew La- truck. Let's do it while Richard has been speaking in changing lives for over thirty years. He's staying power comes from a strong following of corporate clients associations that invite him back year after year. As one of America's top personal development speakers coaches he travels and speaks over one hundred hundred and seventy five times per year. That's crazy that's a huge amount and personally coach businesses and individuals while on the road considered considered a well guarded secret by many Richard Flint Inspires teaches and helps people and companies transform into their power to be so they can do or have anything they want. Interestingly he doesn't without you having to set goals I'd love to hear more about that. Richard is on a mission which he calls a crusade to help people have their best life possible he knows how to his own experience. Richard take a minute and filling for their tidbits about your life and boy that bio piqued my interest. Andrew crusade. Since I started this journey now about thirty to thirty three years ago is that every time that I am Im- invested in a light speed in audience. The podcast whatever. It is in my mentoring programs. Irwin's I want three things for people in this drives me. I want people to be better. I find it so easy for people just to settle and they get trapped in their routine of sameness and once they get trapped there. It's very challenging for them to be able to break free event so one of my gifts gifts is helping people understand what it means to be better second thing is. I want him to be smarter. Mondays God did not create any dumb people people but there are people who have mastered the art of playing dumb and I ask people all the time. Have you ever thought about how smart you have to be. Played dump some of the smartest people you'll ever meet in your life are people who have mashed the play in dumb and they used that to manipulate people around their lights and smarter is not being the most knowledgeable person but being able to use. Life's experiences because I think life is just a library of experiences and the more we understand these experiences and the more we can use them to help help us with where we are today that freezes from yesterday's trap because it allows us to take the lessons and apply them and the third thing I want from people. I want to be stronger. And what I mean by that. Andrew is that I want people to able to strengthen their belief their trust and their faith in their self when you have a strong foundation of belief. Trust and faith what you do is you learn to control troll doubt worry and uncertainty and those three doubt worry and uncertainty are what paralyze a lot of people. So that's that's my crusade that I live every day of my life. That's fantastic better smarter stronger and the idea eh of eliminating or at least massively reducing doubt worry worry Orrin and uncertainty and uncertainty and I mean you know when I think about the only times that I wake up in the middle of the night worried you know. It's it's worry it's doubt it's fear it's uncertainty. It's not I don't wake up in the middle of the night because I'm so happy about you. Know How that day went and so I can imagine that if we can reduce those those feelings in our lives while it would add a lot I could imagine so that is a pretty impressive crusade. And how do people will engage with you. What is the most common way that they're doing is that to your speeches? Is that through. What are the ways that people engage best with you or most commonly? Well we also do. We do a free Webinar every month that we invite people to come in just V. Part of our Webinar we average between between five and six hundred people a webinar own our Webinar each month and then we have our own podcast entitled. Let's talk human behavior. I've also written nineteen nineteen books. I've done well over two hundred. CD's MP threes. I do several conferences a year. Where we in their small groups where we limited to fifteen people to come and spend time with me on in a very intimate setting and then I have a summer conference that we limit two hundred people and then with my seminars that I do all over the world? It's a fun life of being able to use the gift that you have God's given me one gift oft is ability to take what looks confusing to people and show them the pathway to clarity if you and I- strengthen our belief our trust and our faith in ourselves we're not limited a man. I love it last question I want to ask. I mean I don't normally ask all these questions it's about the bio but this bio really piqued my interest. Because you said without having to set goals and I'm telling you Richard The people listening to this this podcast including myself are massive goal setters and we think that we can achieve success in happiness and all of that through setting goals. Well for me Andrew. What most people right is not a go? It's an hallucination. Equal right goes because they've been taught to write goats and I work with so many people who write goals in once they ride them. They're not sure what to do. Do with them so anything you write that you call a goal that you don't know how to implement into improvement not into change. I don't want anybody that I work with to change. Because change is an emotion causes the frustration with most goals. As as we set a goal out to what to change US and watch people to change. I want him to improve so when when I worked with people. We don't look goals. We look at four questions and those four questions create the process for their life life as they move forward question number one. What do you really want for your life? Not what you want for your life. That were really is a critical word. Part for me to know what I really want for my life I I have to just be honest with myself breath. Many times goals are way of playing games with yourself. You Know I. I ride a goal. I don't believe in it and so I I set myself up to frustrate and limit myself so I have to start with. What do I really want for my life? And that's where my mind mind kicks in my creative spirit and then the second question is why do I really want this. What's my purpose? What's my purpose? Had A conversation with a gym earlier today Andrew when we were talking about how lost his life in this guy cassette goals for years but his goals are based on a moment not a journey. And what I really look at what I really really want for my life. And why do I really want this. What's the purpose of me? Dedicating my life to this and then third question is huge wjr. What price willing to pay habit I believe Andrew that everything in life has a price tag to it. What you do with your life has a price tag to it and your commitment your dedication? Your determination you're disciplined is all the result of the price tag that you're willing to pay you see when most people start a new journey. This is what I've learned in working people. They don't start because they're committed they start because they're curious and curiosity is interesting because curiosity acidy is based in a world of possibilities and if you really study it possibilities can be very negative. Because possibilities disabilities are based in the moment where I'm standing in when I'm curious I generally look at something then what I do. I could've timetable to it. I'm going to be successful in X.. Amount of time and so it doesn't happen. The possibility turns to a negative and what has to happen is got to understand. The Price Tag has got to be not to focus on a possibility but to focus on the opportunity. Now the difference between the possibility and the opportunity is my belief by trust. Rushed my faith in myself. But you'll never find the possibility. I mean the opportunity if you don't slow down look at the possibility. That's the starting starting point one of the things about my career as an analyst and my life is that I'm constantly trying to explain things and and you know why is this happening in what's my conclusion and one of the things about research. Is that the majority of the time that you spend doing research. Research is a complete failure the number of times. I've followed a line of thinking thinking that this this has this I could prove of this in the financial world or something. It's a dead end and you just don't know it's a dead end until you explore that and then eventually you come across across what you know through your curiosity eventually you come across something that starts to make sense and then you start to piece it together and you know. Sometimes you're on a tight timeframe like as an analyst I used to have you know produce reports on a pretty consistent basis. So you're squeezing that you know but then sometimes you realized that it takes a lot of time to explore to find what you're looking for so it just made me think of that but I don't know if it's pertinent it or not yet is because time is the greatest gift we have and we waste a lot of time really trying to figure out if what I'm sayin Ian is what I really want. I mean a lot of people who live in their own fantasy world and the todd all the great things are going to do with their life within. They don't invest the time and time is your greatest gift why it has an expiration date to it. Why why because it's here in dentistry gone and with all we WANNA do? Is Our life. The big question is okay. Here's what I really want. This is that's why I really want it now. M I willing to pay the price to get to it. That's where most people breakdown. It's interesting these these questions that you're asking. It seems like you start to right the first question. What do I really want and then you go to the next question and you say why do I really want that and all of a sudden you think maybe I need to revis question number one or maybe you get to question number three and you say what price in my willing to pay and you think actually? I'm not really willing to pay that much for that particular. You know it's interesting that it's an iterative process. I imagine I'm curious to hear would step forward to list of three for just one second for step step three to have powered. The price tag has to be grounded. Andrew in three days my desire by determination Asian discipline those set the standard for the price. Tag that we're willing to pay. I mean what price of my willing to pay what. What's my desire? COW DETERMINE THEM I to really make this happen and do I have the discipline. Can I hold my feet to the fire when things don't happen like I want them to hack and then question number four to me is the most critical question. What behaviors will I have to change to get me there? My biggest selling book that I've ever written is entitled behavior. Never lies is and it's based on the fact that the essence of truth is not what you say. It's what you do. How many people do you know who talk a good story? But then their behavior makes it impossible. What's the saying? Your action speaks so loudly. I can't hear what you're saying. Yeah we are our behavior. The real definition of a human is not their words. It's their behavior. Now if I bring all this to appoint Andrew where I'M GONNA look. What is the biggest obstacle? We have here in coming coming from a goal to a place of honesty. What hostess from being able to do that? It's a word you mentioned a little while ago into word called fear I think the biggest enemy that most people face in their life and their success journey is fear. And I'm not sure your listeners. I've ever heard this before but all emotions travel in threes. And you're not just dealing with fear you're I mean you think about this. All doubt comes from fear worry. Uncertainty is giving fear control the when you have belief trust and faith. You're controlling fear. I want your listeners. Business to really hear this from the day that Andrew was born to the day that Andrew Dice he's GonNa fight six fears and the interesting interesting thing about Andrew. Richard here has the same six fears. And they're not in any order. 'cause they vary from person to person but one of the six is is your number one fear of you can find face and control your number one fear the other five diminish. But if if you can't find and be honest about your number one fear the other five will eat you alive. So in no order random order the six fears the fear of the unknown. Now in your world. You've had you've probably known people who the fear of unknown had them. Step away from something. That was a real opportunity because of the fact that the unknown will not allow allows to have the clarity to see beyond that fear and what other people many people don't understand the backside of what you step into the unknown you you get into the world of adventure and when you and I live in the world of adventure are mine is guiding Suomi livered the fear of the unknown our emotions our guiding us the second of the six fears the fear of abandonment. I might lose people you and I probably everybody listening at some point in our line had been a place where we were fearful of making a decision because it might cost us someone out of our life. So what do I do. I stay where I don't belong it when I stay where I don't belong. I am now paralyzed allies in. I used to work on the staff of a huge mega church in Iran. The Counseling Division for the Church and a lot what I did Andrew. I did marriage. Counseling and I watched so many couples who stayed in a relationship that was wrong for the fear of not not having anyone in their life. I watch people who stay in jobs Andrew where they don't fit they don't belong but they stayed there because they're fearful that can't find another job and I think the proof of that is just the fact that we know through surveys Immuno. Most people are actually dissatisfied with the job. Yeah could you imagine that going to work every day and not being excited about what you're doing I ask people all the time. Have you ever had a day. That was is going great until he got out a bit Utah. Yeah you are put on this earth to be happy to be fulfilled to be free breach and if I live in that. Fear of not having tracked unknown abandonment. There's number two. What is number three failure at this is huge and again what we've done? We have missed so many people up mentally and emotionally when it comes to fear because we teach you know you're either going to be successful or are you going to be again if you can accept my concept that all emotions travel in threes. There's a third word. We don't talk about that. Word is defeat and defeat is when you don't get back up Andrew. I defined failure with one word fertilizer. Tell me the growth so when I get not down. That is an opportunity to get stronger. It's an opportunity to get up smarter. It's an opportunity you to get better and so I can't see failure as something that's negative. It is positive because it's simply a lesson that I haven't learned yet are. It's an opportunity that I wasn't prepared for. It was a mistake in judgment that I make but none of those are there to defeat me. You can't run if he can't feel it's interesting because I always tell my longtime business partner partner. Sawn set a time man here in Thailand. He and I worked together for twenty years and sometimes I propose something that he's like. That's that's impossible. How can we do that? That's hard and I always. We've learned over the years. Do hard things because so few people will do them. You will stand out and when you do hard things you will fail and you know be ready for that but then get back up. Obviously we don't want to be defeated. Yeah if we fear failure we fear taking a risk and you see failure as a positive. That's why I have to come back to my foundation. Dacian of belief trust and faith in myself and that means I got to be willing to step out based on those three things fantastic. Didn't the next one is the fear of rejection and we live in a World Andrew. Where so many people? They don't like their self so they wanna be light so they become what everybody wants to be in order to be liked in reality. No one likes them. They'd be better off just being themselves. Yeah well my number one philosophy for my life is why spin mighty energy being a carbon copy. What I'm the original and my faucet goes on brought along beside that when this never keep anyone in your life who's not part of your fan club anyone who's not part of Your Fan Club is a creek and critics are people who are trying to manipulate your belief you're trusting your faith in yourself because they want you to doubt they want you to worry? They want you to feel uncertain certain fans lift Yup. Yup they're also very honest with you. All right. Number four is rejection. What is number five number five is the fear of loss back to the Price Tag Yep and then number six is the number one fear? Andrew were seeing young young people today. The fear of success Wait a minute that seems like an odd fear explain well the parents can do too much for child now in the world of counselling. I'm GonNa tell you. They can't add a dad. Ed Bring his son to me one time. The kid was ten and a half years of age and the weekly allowance. Every Monday morning in his hand was five hundred dollars cash and sounds like he had a job. Yeah no responsibility for it and by Wednesday. He's broke no drugs no alcohol what he did. He bought his friends and I asked his dad. Why are you doing this to your child? I don't want him to what I went through when I was growing up. I said I said how can he learn if he's never given the freedom to fail at so many young people today they don't understand understand success and they fear success because of what they've experienced through their childhood I mean it's lamented the millennials. Today I don't want to get married. Why what they saw their parents go through then? It won't be committed to a job for long term. What they watch? The parents become bored and angry and frustrated rush street and they feared that success because they have a very unhealthy definition of success. Success is in bobbing yourself in your world where you can improve and you and I either inprove. Are we trapped ourselves in the circle of sameness fantastic so better smarter stronger and improve ourselves. I it reminds me of a quote. I used to attribute to my mother but she she told me not. I didn't come from me but I don't know where I heard it but I just love it and I've I've said it all my life. Good better best never stopped to rest. Continue your good is better and your better is the best and the idea of iterating through. Life's just an experiment. You're testing things and you. You know. Hopefully you're creating a vision of where you WANNA go. And you're testing things to get their listeners. This is the longest bio Baiocco that we've ever had the longest discussion and I think that it's highly valuable. What Richard is share with us and I can say that the six years have come across in many of the different stories that we've heard on the podcast but I also can say that through my life? I can NC those six years popping up in different ways at different times and I can also see when I look at people around me. How how you alluded to this? Richard is the idea that our past is probably what gets US focused on one of those particular fears like. I had a friend of mine who was particularly afraid of abandonment because they had been abandoned by their parents. The result of that was that she carried that a- abandonment that fear Banham into every single relationship and one day amazingly. She became a really the aware of this fear of abandonment. And I swear I've never seen a case where she went to see a psychiatrist. Who is very very good and they they both honed in on this thing because my friend had become very aware of the pain that it was causing her and the irrationality of it at this point in her life and I want to leave that fear left her and she reshaped her life into an amazing life of much deeper for relationships? And so you know think about it this ner what is your number one. Fear the fear of the unknown dea fear of abandonment. The fear of failure the fear of rejection the fear of loss or the fear of success. I mean as we've just learned from Richard that if you can understand you can find face and control your number one fear the other fears will probably melts away. Have I summed it up pretty well. Yep the fear will never go away. This is why people sometimes struggle. I need looses. No you need to learn to control it and Andrew. If there's one more thought that I can put in here and it is probably the most challenge philosophy that I teach. You are exactly in your life where you WanNa be and people tomorrow time. No no no. This is not where I wanna be with my life and wire you. Hey there you are exactly in your life where you WanNa be in the real sad part of this is most people put others in their life to give them permission to stay where they are in. If you want to improve one of the things you got to look at is the circle of people around your life are they. Critics Knicks are are. They fans and I don't care who they are. If they're in critic they gotta go they have to go and sometimes this is a spouse sometimes. Awesome job sometimes. It's apparent it's people who say they're your friend but they're not your friend you have to surround yourself with people who who keep you on that path to improvement and to do that you have to live in a world where he open yourself to honesty. I learned in the Counseling Center. Most people want honesty as long as it's not us. Yeah and I think that when we talk about one last thing that I would add to this and then let's get into the the question of your worst. Investment is that having fans does not mean them fawning over you. What that means is sincere? Honest desire to see you better and I'm assuming that that's what you mean when you say fans I'm thinking of a friendship of mine a guy that I know and we didn't know each of the that well well but he asked me for some advice and and I looked at his business and what he was doing and we talked about it in detail and I looked at him and I said your whole all business is a fraud. You're building around a persona. That's actually not you and if if you decide to continue to do that you're going to be living in a world of fraud now. I'm not talking about fraud as in stealing but I'm talking about fraud. What as in not representing your true self so? He actually had an Avatar on his website that he kind of pretended he was that person when in fact he wasn't at all and I was very clear and direct. You know just said this is what I see and I felt like you know. It took a little risk on my side to tell him that. He laughed but about three months later he came back to me. Said you know. I've completely reshape my whole business in that. That conversation that we had was pretty much the most valuable business conversation I've ever had and now I've come out of the shadows and I now am no longer building this business around something or someone else. I'm building it around me my passions and my visions and so I think it's important that having a fan and the fan club means people that are willing to speak honestly to you. You know one of the things that you and I learned is that sometimes we're too trusting of people and that trust is based on what we hear with our ears not what we see with our eyes. The three little words have become so powerful all over the world behavior never lie. I will hear everything you say to me. But I'll steady what you do. I'll study what you do. Entrust is built on behavior Fantastic fantastic well. Thank you for sharing so much I think at the end of the podcast. We'll also hear a little bit about what you're doing next and how people can access that but now it's time to share your worst investment ever and since no one goes into the worst investment thinking it will be tell us a bit about the circumstances dances leading up to it and then tell us your story worst investment I ever was a part of was believing someone someone who told me three things about me because they wanted to control me. And I'm not gonNa tell you the Ho- story the Andrew but I'll be brief with it. I was born in New Orleans. I never knew my real dad. If you could see my birth certificate word says father. It's blink my natural. Mother was a prostitute in New Orleans and I was the result of a one night stand and she didn't want me so when I was two weeks old. I was given even into a family where I was only adopted because my dad wanted a sung adopted dad wanted the sun by Dr Want me as she proved that to me he goes from the age of six to the age of sixteen. My mother used to tell me three things. Everyday you're the stupidest kid I've ever met. You're never gonNA amount to anything in your life and I am sorry we ever adopted. You Migrate as day will be the day. When you're you're no longer in my house when I was when I was sixteen when I was fifteen adopted? Mother told me that I had to get a job and pay room and board to live in her house and when I was sixteen been sixteen for two weeks I was working at Nigeria Grocery store in Ardmore Oklahoma and I called my dad to come get me and my dad grow up front of the grocery store and stepped out of the car and I started to walk towards the guard just ended night detrimental. Wait a minute when he stepped behind the car he was carrying a suitcase and he walked over to where I was standing and he said the suitcase down beside me. I was informed that that night my mother had decided I could no longer live in her life in her house and my dad looked at me and my dad was a very great person in his own way and he told me he said son. I don't understand this but I don't know what to do. And he said you must never forget. I love you very much. I never doubted whether my dad loved me. Not But I knew my mother did not Andrew. I have three sisters none of them are Aroo. Sisters were adopted from different families. When I was growing up I never got a birthday present? Sisters did I never had a birthday cake. Think sisters did come down on Christmas morning. My sister's would be opening presents and there was nothing under the tree with my name on it. My mother made state misdemeanors in every way possible. You're not welcome in my life. My Dad didn't want back to the car. He ran back to the car and and looked over. The top KEARNS. Said you take care yourself. Any drove off loneliest. Feeling I've ever had in my life with standing on a street corner looking at a suitcase suggests you're sixteen years of age probably going on twelve and when you do. I picked up the suitcase. I walked into downtown Ardmore Oklahoma. I went into the hotel art more and checked in. They looked at me funny but I had cash to pay for the room when up to the seventh floor but the key in the the door opened the door and Andrew never turn the light on set. The suitcase down walked across the room opened the window. Look down seven floors because there's no strings on the hotel hotel are more at. I crawled out and I said on that Ledge and for three hours I tried to make the decision to you liberty. You Die as Andrew. I understand people who commit suicide. The only time a human can take their own life is when they feel. There's no value that they bring to to life into other people and I figured out on that Ledge. If I jumped my mother would win and I wasn't going to give that lady that victory in my life next next morning Gentlemen who is two children were my best friends to enjoy what had happened. He said you wait. I'll be there and for about two hours. We talked and he asked me. What are you GonNa do and I said I'm going back home so he helped me find a room with a lady who is the editor of the daily newspaper there in Ardmore Oklahoma and I paid her five five dollars a week to live in her house? Every day I go to school. I go to football tennis practice. I go to work. I come home at the clock and I'd said it her table doing and my homework until I couldn't keep my eyes open because I knew that when I went into that little dark bedroom I was gonna cry myself to sleep. One of the loneliest feelings in the world is to feel that no one shoe and we all know how important parental loveless because children who grow up with love rupp healthy. The children who grew up without love and support from parents are always going to struggle in their life. When I was a sophomore in college I made the decision? I had to confront my mom debt. Because I knew if I didn't every beyond it for years I've had this feeling inside me anything. I don't confront I validate. And that's such a powerful lesson for people to learn if I don't confront it. I validate it. It was sixty two miles from my mom and dad for my dormitory into my mom. And Dad's Front House front door. I got to their house and drove right past it. I was scared to death offender. Sixteen pass our house. I stopped at turnaround. Jump Up if you don't do this now you're never gonNA do it Art Dr Crawford in their house and my heart was not to jump out of my chest and I shot across the road. Got Out in the rain to their front door screen door wooden door and I knocked knocked on the screen door. When my dad opened the wooden door Andrew he just turned start white and I said Dan I need to talk to you and mom? My Dad didn't bother to unlock the screen door. He stepped through the screen door with one hug. Just one hook. My Dad told me everything that ahead. He had been tortured with. He literally picked me up. Carried me into the living room and the guy was just babbling. I don't remember anything he said but I remember he paused and called for my mother who is in the kitchen to come see. Who is there with? My mother walked out of the kitchen to the living room. Should take one look at me and just frozen. Retract ax took her hand restore behind her untied her apron fall to the floor to the other hand reached over and picked up her purse which always said on that one table table took out her car keys. Walked out the back door gotten her car and drove off and I never saw her again but Andrew that was the lesson it was all about her and her being able to control. When my mother died I I had to make insurance go to her funeral arguably was my dad after everybody left to go to her funeral would be hypocrisy? So I didn't go and I went to be with my dad. After everybody had left him and for the last five years of his life he was my very best friend. As long as I didn't try to talk about what happened when I was sixteen because he couldn't handle it an android their times that I've wanted to scream at my mother. Look look at me. You said that I- stupid look at blue degrees. I have you said I'm not gonNA amount anything look at me. I'm known all over the world world. I've written nineteen books. I have an impact on people. Lookit me I m lovable and so my worst investment was accepting what my mother said as truth because parents don't lie and then I realized she had an agenda and her agenda was for her to be in control of everything. And if you got to know me when people get to know me I am probably the most confident person that will ever meet I throw parties. I'm the only one I invite parties. I'm comfortable in my own skin. Yeah so let's let's now take is to lessons that you've learned thinking about you know going back into time and what you've seen over the years. How would you describe you know a few of the key lessons that you learn from that whole story number one not everyone who says they love you lunch hence what you said before for the behaviors actions okay number two the greatest strength you have is your belief your trust in your faith in yourself because that's what allows you to be the original and not a carbon copy number three? Don't be fearful of today if you live and high in yesterday. You're fearful afloat today and the interesting thing. A lot of people don't understand there is no fearing today off fears from yesterday so if I bring the fear of yesterday thirty two today I don't have today. I have this time the tick of the clock but I don't have the freedom of today. I just have an extension of yesterday take my last lesson in. This was is big for me. Stay in tune with what God wants for your life but I do with my life. Andrew is my ministry and all of us have story for every listener. You have has a story and that story we either use to justify our free US story eager to blame others are to hold ourselves accountable in tastic. Well now let me. We summarize a few of the things that I take away from your story listeners. It's fantastic first of all. I really appreciate your ability to share the pain of that one of the first things that comes to my mind and I just wrote it down. Is that your past struggles else. Shape what you share with the world and if you go back to the beginning of this conversation without knowing you before four for all the listeners you heard the shaping you know what it is that Richard teaches about better smarter stronger about facing your fears about identifying your number one fear you finding it facing it and controlling you and now when you listen to this you know truly painful story of youth what you can see that Richard has taken that and news. Is that the shape what he is sharing with the world and that is the concept of authenticity. And that's when someone is truly authentic tick to their struggles to their to the things that shape them then. I think we truly get tremendous value. The second thing I mean is there is some parallels you know I had a loving mother and father but there was a time where I was deep in in drug abuse alcohol abuse at a young age and there was a time where I had been into a rehab and a few days after the Rehab. I started using drugs again all that my parents spent my college education money. Everything gone and then four days later I was heading on the road to ruin and my mother I I think it had more vision than my dad. My Dad was probably more he was he had a hard time figuring out what to do. and My mother found a another treatment center this one in Baton Atten Rouge Louisiana and she basically the chew them talk together and they bought me a one-way ticket I was sixteen years old. They bought me a one-way ticket to Baton Rouge Louisiana from Akron Ohio and it was a ticket not on a plane. It was a ticket on a bus and my mom. I said goodbye to me in the front. I can still remember that moment in the front by the door where mom didn't have a lot to say except except the one way ticket. If you don't get it right you can. You can live the rest of your life wherever you want and my dad drove me to the bus a station and it pained him now he knew my mom was making the difference in this case is that he knew. My mom was making a tough. I love decision but it really paying my dad and luckily for for our family I went to that treatment center. You're in the day was September Fifteenth Nineteen Eighty two where I completely surrendered and realize that you know I everything I was doing with my life was getting me to disaster and that is my sobriety date of now thirty seven years and I would also highlight that when I got through treatment and went through and got on the right track I was seventeen years old getting close to eighteen and when I got out of I ended up being in a long term treatment center I came out and my mom said well when you turn eighteen. You've gotta move out and I thought wait a minute. I I've improved myself and my mom said you know we appreciate what you've done and you seem to be on the right track but we don't want to be dragged through another relapse and all that comes with it you're going to be eighteen is time for you to be on your own and so where where this story comes to what your dad arrived with that suitcase was I found a room in a boarding house in Kent Ohio near Kent State. One hundred twenty five dollars a month and basically my dad. I packed up what I had in. My Dad drove me to that room and Yeah I know my dad at the time felt like I had just got my son back. I want to spend time with him. But he knew that. My Mom's vision of what what I could achieve in my life. Also she. She knew how to push me to the limits of what I could achieve and I arrived. My Dad dropped me off. I took that box I went in. That room fell to my knees unjust sobbed and it was a Saab of there was fear that was surrender. There was so many different things but it was really that the point where I started to shape my life and that was my kind of sitting on that ledge point to say to myself. Am I gonNA make this. You know something good and look at us now. Richard Look at us now so I think that if I think about it what I take away is the the idea. Is that for the audience. I want you to think about what is the most painful thing in your life. The most senior thing that you've fear the most in your life chances are you have no way of escaping this thing it is either going to negatively in fact you affect you for the rest of your life. It's going to positively affect you for the rest of your life and your determination of which way it will go. We'll be based upon your ability to find it face it in controlling and once you face it as we heard from Richard when he faced I his mom it disappeared and many many fears disappear when you face them directly. So that's my takeaways or anything you dad to that well Andrew couple of things. I think you can boil life down to one question. Everybody tries to to me life so complex but life can be boiled down to one question before you make any decision in your life. No matter when did this take a deep breath why because it slows you down emotionally and ask yourself. This will dis-decision feed my confusion are strengthened. My clarity and anything in life can be put to that question will dis-decision feed my confusion are strengthened my clarity. That is the one question of life and enter. We're we're doing some things that we've never done before we started a series resolve small group retreats that limited to fifteen people and our next one coming up as January nine through twelve and it's a couples retreat in my theme is tweaking your relationship now. Not Counseling couples. But everything is GONNA be in. The process of improvement. Took anything to improve has to be tweet. That's not saying you'd change it. You tweak tweaking his improvement and we're going to be at the PGA resort and spa in Palm Beach Gardens. Florida January nine to twelve. It's on my website. Richard Flint Dot Com. And then. We've got another one coming up. At the the end of April first of May on decluttering your clutter. Cluttered is the number one behavioral challenge in people's life. Show me anyone who's disorganized anyone who struggles with time anyone who lacks discipline. It all comes back to the clutter in their life. Light Clutter is anything you start that you don't complete. People are held hostage by clutter and then next summer were doing for the thirtieth with year. We're doing our summer star maker conference July seventeen through nineteen again at the. PJ RESORT AND SPA and my team is. Because I can't I think we're the only one that limits ourselves and I can. I can do it and I'd like to offer your listeners. Here's a gift on my website. Richard Flint Dot Com. I do a thing called the the morning minute at every morning. I send you a sixty second video tale of one of my philosophies of life and a piece of wisdom to go with it if you go to my website and you'll look on it. There's a replacer at. I'd like to offer you the morning minute for the next twenty one days for it's a ninety nine dollar investment for the year but I'd like to give it to you for the next twenty one days ace free. Let me have this time in your life. Start Your morning with me. Just sixty seconds one minute and watch the impact can have on your life. That's a fantastic offer that's listeners. You need to rush to that now because I'll be going straight to it and the thing and I think you really capture from Richard and this whole discussion is the authenticity of where he comes from an what. He's the change that he can bring to our our lives so last question that I have for you personally. What is your number one goal for the next twelve months? My number one desire for the next twelve months not my goal is to finish the two books. I'm working on right now. My next the book is going to be entitled. So what's your excuse and then the book that my staff tells me. I cannot publish under this title that I am committed to. It's thirty. Plus Years of hotel airplane travel stories and the title of the Book Is. I'm sorry I didn't Mean To pee on you. Well we just have to wait to hear that story Santana. I appreciate this time with you. Yeah I appreciate jai to has been fantastic and I. I think I'm going to wrap it up by telling listeners that you've got another story of loss to keep you winning and the other thing I would say you know as we end Richard. I WANNA thank you for coming on the show sincerely. I know it's painful. Talking about are losers but our listeners are learning to win as a result. And of course as you know I want to congratulate you for having the bravery like our other guests to share your worst investment and your worst experience. And you've now now and previously converted that now into your best teaching moment you have any parting words for our audience. Strengthen your belief your trust in your faith in yourself and you will overcome the limits that yourself imposing yourself fantastic andrew you and I are living illustrations of what happened when we believe we trust and have faith in ourselves. We are today where we are because of that act. That's a less beautiful. I think we're GONNA leave it at that. Ladies and gentlemen go to the show notes. I'll have links to all the things that we've talked about to Richard's website Richard Flint Dot com and. Let's keep this conversation going. That's a ramp on another great story to help us create grow and most importantly protect our wealth and our life. Fellow risk takers. I'll see you on the upside.
Aaron Walker Your Worst Moments Can Focus You on Creating Your Legacy
"What I had realized was his? If that had been me that I if I had gotten killed day what would my legacy at Ben and I said here's what it would have been. Poor kid from Nashville Tennessee makes enough money to retire at age. Twenty seven and nobody cares. Hello Fellow risk-takers. Welcome to my worst investment ever stories of loss to keep you winning in our community. We know when when investing you've got to learn about risk and to win investing you must take risk but the wind big you've got to reduce my name. Is Andrew Stotz from a stock investment research. And I'm here with featured guest Aaron Walker Aaron. Are you ready to rock. I'm ready to go Andrew. Let's do it. Aaron has founded more than a dozen companies over the past forty one years. He's attributed much of his success to having surrounded himself with his mastermind counterparts. Aaron spent a decade meeting weekly with Dave Ramsey Dan Miller can Abraham and five other amazing entrepeneurship. Aaron is the founder of iron sharpens iron mastermind. That now hosts fifteen groups with national and international members Aaron and is the author of view from the top a must read to fully understand how to live a life of success and significance also the founder of the mastermind playbook and incredible resource for starting running and scaling masterminds. Aaron lives in Nashville Tennessee with his wife. Robin of forty years and he has the two incredible daughters in five beautiful grandchildren. And Ladies and Gentlemen I. I heard him in two thousand fourteen on entrepreneur on fire podcasts. And it's such an honor to have you on the show. Aaron are you ready to rock. I'm ready to go Andrew. Thanks for having me buddy. That's great. Well let's take a minute affiliate any further tidbits about your life you know. Thank you covered a lot of it. I've been an entrepreneur now for forty one years as you've said. This is our fourteenth business. I I can't even believe it some days I look. I think I'm still eighteen. I shop and I look back and I think man. What an amazing journey? It's been out. I don't know if I'd change much. I've been married now for forty years. This June to my childhood sweetheart man. As you've pointed out we got two beautiful daughters. One is my CEO CEO of our company. And then I have five grandchildren. I'm just having a blast. Helping ordinary man become extraordinary in all they do each and every day. You're that's fantastic and I I remember. We were talking earlier and I. I just remember. There was things that touched me in your in the podcast interview. And I've listened to every one of John Lee Dumas podcast interviews and is a very small number that I can really remember how I felt about that and it was the idea of helping in man in this case but let's just say also helping people move from success to significance and I thought that that was something that you told a story about. How you I heard somebody say that and you thought that's what I'm all about and you've built a whole life around that from what I can see so hats off to you? Thank kid you know. I heard that from Bob Buford. He wrote a book called Halftime. An back in the ninety s Dave Ramsey called me one day and he said hey big he said. Do you WANNA go due to Amelia Island in Florida in here Bob Buford speak with Sharon and I so I said Hey I'm an so I grabbed robin and we ran down to meal Ya'll and when we spent the week with them down. They're hearing Bob Buford him when he was standing up doing his presentation. That day. Talking about how we live our lives to make so much money and gain ain't so many tangible possessions in he said one day we wake up and we find out that. It's not really what we thought it was going to be in our focus. Turns towards significance cuts in. I really resonated with that comment and so as I tell a little bit more of my story in a few minutes at how that has impacted my life. That's that's been one of the most profound comments I think I've ever heard Yep It's the key thing to live I think as we get older and we have experienced different things it it. Is those things that we pick up throughout our life that you know. Start to really shape the way that we interact with people and I recently picked up a book called the road less traveled and I remember reading this book when I was eighteen and I thought I went and read it the other couple like a year ago and it was all dog eared and I had marks on it and I thought to myself this book visually resonates with me. You know it's like something I'm really live and then I realized yeah that's 'cause you read it and you took it into into your life back then but I hadn't visited the words of it and the the meaning of it in that direct way and when I went back I realized that. Yeah all the people that we met all of the books that we read these things shape our lives and some of them shaped Even more directly than other so absolutely up. Well now it's time to share your worst investment ever and since no one goes into their worst investment thinking it will be. Tell us a bit about your circumstances leading up to it and then tell us your story. Hey Andrew I'm going to give a little twist to this and hope it's okay for your audience but I stand here and tell you many financial investments vast must have we've made that if not panned out like we'd hoped like you said nobody goes into any investment thinking this is going to be my worst investment ever but what happened to me August Vista. I two thousand one forever impacted my life in a very meaningful way. Let me give you a little bit of a backdrop if I could seem a little bit of context so you'll understand understand why this so impacted me. I started out very very poor. Lived in a family of six here in Nashville Tennessee. My Dad was a general general contractor and never made over about fifteen thousand dollars a year in his life and we grew up in about a six hundred square foot house and I wanted better than that for myself and so I went to school and talk to the guidance counselor and figured out a way to get out of school. A couple of years earlier went to night school in Summer School for about eighteen months onto knows able to get out of school the beginning of junior year in high school. So I didn't have to go. Those final two years worked every single day so so when I turned eighteen years old I met a couple of gentlemen here Nashville. That own the twenty first largest insurance agency in the country at the time in our approach them one day and I said hey why why. Don't we take your money in my experience and open up our own store and I started laughing and Mesa hallowed are you. I said I'm eighteen. And they said we've never had anybody eighteen years. There's old approach us in so I went back put together a little bit of a plan. The Best I could approach them again and they said you know we're going to do this. Investment with you. We've checked on you found on that you're a pretty cool kid and we're going to do this. And so to make a long story short we went to the bank and signed a note and I said I thought you had the money and they said we the money but we want your name on the line. We want you to have skin in the game so I signed a hundred and fifty thousand dollar loan. This is in the seventies Andrew. That was a lot of money in the seventies to eighteen year old in saw went out and opened up a retail outlet and God just blasted immeasurably. I can't even begin to tell you. I got married a year after that and I paid a ten year loan off in thirty six months so here I am now twenty one years old. I have a paid for retail establishment. I own a third interest in that and I thought I'd do it again and I did Andrew and then I said I'd do it again and again and I kept doing it now. Twenty seven years old. I've got four stores in Nashville Tennessee and a company called cash America there in Fort Worth Texas. Their fortune. Five hundred company approached me. Maybe an offer. I couldn't refuse music. I was finished at age twenty seven and I thought man what a great story I said. Poor kid from Nashville Tennessee makes enough money to retire. By the age of twenty seven and it couldn't get any better than that. Well that was true Andrew for about eighteen months and then my wife was waking me up in the middle of the day and she said man and you've gained fifty pounds. You don't do anything all day long. I didn't sign up for this. You've got to get a job so I go back by the company I started with when when I was thirteen years old and we built that company four times the size it was. It was unbelievable my circumstances situation by this time. I'm forty years so I have two daughters and my life is utopia literally utopia. I'm working three days a week. My partners work in three days a week. We have a vacation in home big house on the hill. We got all the stuff in it was so amazing until August. First two thousand one. I was headed to the office office. It was seven thirty in the morning and a pedestrian was crossing the street to catch a local bus and he didn't look my way and that day Andrew. I ran over and killed a pedestrian. I can't even begin to tell you what was going through my mind. A pulled over over to the side of the road and I was shaking so hard. I couldn't dial nine one one on my cell phone literally could not dial. The number finally got my composure. Enough if I dialed nine one one and I hadn't turned around yet I hadn't looked behind me finally got out of the car. I turned around and looked and cars. Were stopping everywhere as a four lane. Major highway and people were jumping out of their cars everywhere in a finally got the courage to walk over and there was a gentleman. ELDERLY ELDERLY GENTLEMAN laying face down the street motionless. The ambulance got there the paramedics fire trucks. Everyone got there and they put him on on the Gurney. And I said he's GonNa be okay and they said he's got severe head trauma so they asked me to go sit in the back of the police car and audience in witnesses came over and testified that I didn't do anything wrong. They said he ran right out in front of you. There was nothing you could have done so I went on to the office in couldn't work. I couldn't get my composure. So went home. My wife and daughters were in Florida with our church and I called him told him what had happened happen next day. They came home and you can only imagine what transpired over the next forty eight hours. I received a phone call on Saturday morning morning about nine o'clock and they missed Walker. This is Vanderbilt Hospital and I was told that you were involved in a pedestrian accident with Enrica. I said that's correct. And she said I'm sorry to tell you he didn't make it well. The pressure in the stress can only they tried to describe it but it would be impossible and so a couple of weeks later I went to the office and I had one of the first things auty experiences I'd ever have and I thought why is this happening to me. I mean you know. My life couldn't have been any better beautiful wife great kids and youthful business and satisfy understand understand. I just couldn't make sense of it so I went to my business partner and said listen. I've been chasing money since I was thirteen years old. And I'm forty forty one now at this point and I said I'm going to retire. I'm going to sell the business and I did a so partner. My interest in the business and finance did for him over the next ten years. He wasn't prepared by me out so finance the company for him and took five years off. I didn't do anything for five years. We traveled abroad crawled and I was grateful that I had a little bit of resources that allowed me to take some time off. I saw councillors. I had a lot of friends that circled around me and really embrace me and help me. I called the family and I was cautioned by our legal counsel not to call but I called a call the family. I said there's no way I can't contact these people and gave my condolences. Apologize and they said Mr Walker. We know that it wasn't your fault. Our Dad had been worn many times not to go well alone and he did and it just wasn't good timing for him and so I took five years off in through that what I had come to realize told a long story to get to this point. What I had realized was his? If that had been me that I if I had gotten killed that day what would a legacy at been in. I said here's what it would of been poor kid from Nashville. Tennessee makes enough money to retire at age. Twenty seven on and nobody cares and it was very convicting. I started thinking through that and I said that's what I want my legacy to be what I want my legacy to be is that Andrews life is better as a result of having no me. That's what I want my legacy to be so I really changed my focus. I started thinking more looking outward in not inward in started really helping other people Accomplish their goals and dreams in. I quit being so self centered and selfish and thinking that you know the little bit of net worth that. We had at that Tom Nobody cared but my family. This make any difference. It didn't impact anybody. It didn't transform anybody's lives as a result of experiencing BARRINGTON. That I've really learned the brevity of life. I really learned how fragile life is in my book that I wrote a couple of years ago called view from the top. The chapter that tell about this accident titled blindsided. Because that's exactly what happened. Here's well my question is to you today. What could you be blindsided by? And if it were to come at a inopportune time which most things that way do what would your legacy be in. So I really have devoted the past eighteen years of my life. Andrew looking outward Edward trying to help other people accomplish the things that they want and I promise you our legacy is going to be entirely different now as a result of it now we still teach each have a great amount of success but the significance piece is what I was missing. I had no significance in the lives of other persons. Now could have told you many any stories financially but this one had more of an impact on my life personally and professionally any other financial story. I could have shared. Well thank you for taking the risk sharing all that and it really you know blindsided all the way around and it just. I'm going to basically talk about some of the things that I took away from the story and I would say you know the first thing. Is that tragedy raggedy strikes. You can't avoid it. It will strike in some way or another and I think that you know you you talked about your friends and family gathering around and I think one of the things I've learned over the years is that it's the relationships that we bill that is what can carry us through through our darkest times. I've faced a few of those in my life and I have a couple friends and my family that have stood led by me during that time and if I hadn't had that support there's no way I could have gotten through a door at least I wouldn't have gotten through it and been a better man from it and and so you know I think about the relationships that we bill and the importance of those which we see in hindsight I mean I when I was young and I was building friendships. I didn't understand how valuable these trust in those friendships would become and as I always say there is no shortcut to trust. It takes time the second thing that you know you got me just thinking about. Is that concept of legacy. And I think that we're also also busy and you know you had an event that snapped you out of that. But we're all so busy working that we also sometimes forget what is as our legacy and I have something that I repeat to myself a mantra that I've created that I repeat every morning and it's one of the things is that every every day I helped one person step towards achieving their goals. And it's my way of trying to encourage myself to step out of myself and help others because the last thing that I would say that I take away from it set so what I like to ask is you know. What am I doing in for the audience? What are you doing for somebody whether that's in regard as family where that's Aaron? That's the the people around you you know. What are you doing to help? Help them through their toughest times and what you contribute tribute with just that phone call with just that message just that little bit even my my mother at her age sends a little note or little gift and and those things that she does touches people's lives so how are you contributing to people's lives. So that when they go through their tragedy any they don't have to go through it alone and that that is kind of my biggest takeaways is anything that you would add to that you know the relationship aspect people ask me all the time. What is the number one way to be successful in life you know personally and professionally in said if I could do it over again I would start even earlier than I did building relationships intentionally in see? It's something that today's society we had behind the screens. You know the human connection is lost in. I think that if we can really focus on the human connection side we spent an inordinate amount of time doing interviews writing writing emails. We do video endorsements. I'll give you a couple of little practical things kind of walk away from this. That people can do they like. I don't even know what to do. Well first of all is because we're text so much every single day. I'm constantly texting people saying Andrew. Thank you for what you've been in my life. Thank you for this interview view. I certainly appreciate all you've done for me. I couldn't do what I do without you. Just a simple act of gratitude. Seth likely a friend of mine wrote a book called Ambition and in that book he talks about that. Our success is because of our gratitude and when we have these relationships very intentional eighteen every day it gets us out of our own head we focus outward instead of inward. We're givers. Were not takers and encourage people do that. I'll send videos to three four sometimes a dozen today yesterday my computer day before. Yesterday I sent thirty five loom videos thanking people encouraging people. No one spends spends time hardly to do a video but quite honestly it's a little hack. It's easier than writing an email right you do use loom or zoom or one of those platforms. Are Your cell phone. Just grab your iphone and do a little short thirty second. Hey this is big. I WanNa thank you today for what you've done for me Andrey own until a couple of quick stories related due to this and the impact that it made a young man named Connor it works at our local bank and Connor has been there about six months and several weeks ago. I went into into the bank and I needed to open up five accounts and I knew that was going to take some time so I walked off my counter went up to the bank. I sit down at the counter and Connor. Connor said Mr Walker. He said just give me this much information and I gave it to him. He said I'll tell you what when I get all this completed I'll call you back and you can come down sign your night. You'll be through fruit and I said what he said. I'm not GonNa make you wait because this is going to take a long time but I'm GonNa do it for you and I'm going to get ready. Is customer service skills. Were unbelievable so I came back to the office. I wanted to hug you. I mean he was so nice so I came back to the office. I cut all my camera and I said Hey I'm Aaron Walker President and founder of you from the top. I'm a premier life and business coach and I help ordinary men become extraordinary every day and I said the reason. I'm doing this video. I WANNA thank connor owner for his a unbelievable customer service. If you had more people in your bank doing customer service like this. I promise you would enhance your business and grow your business in a hidden thirty second little video I send it to the bank manager. The bank manager sent it to the regional director the regional L. Director Senate to the President of the bank which called me and thanked me for that video asked my permission to use it. In their training which they're marketing director Tur- called me and asked me if I would do a testimonial for the bank on their website in their marketing efforts. Now none of that was motivated by me getting anything out of it but as a result of me doing the right thing. We've gotten I can't tell you how much exposure as a result now. That wasn't my motivation. And that's not my point. My point is that when we do kind things when we reach out and we encourage other persons that natural reciprocity comes comes back ten X. Here's the thing with our business today because we look outward much more successful financially and significantly and we've ever been and I just WanNa say it has to be intentional. I love the building relationships intentionally. I mean that is critical. And it's so easy to get caught up in technology and all that and also you know the other thing that is really interesting. These days is how Management of companies has shifted away from judgment to metrics yes and how management has has. Now you have a whole group of people who have been trained that management is about KPI's and you know if you could just get all the numbers for everybody. Nick and have each person reviewed every quarter every month on the numbers and those numbers feed up to those numbers. Those numbers but they're missing one. Thing and GNAT is humid. And you know it is guide that you know young guy. The bank you know employees. He didn't didn't do that to hit a KPI. And I think it's very important lesson that when you're intentional about relationships you also realized realized that people are intrinsically motivated in many times when we try to put an extrinsic in a measure or guide on them. It's like you ruin the whole joy of work right. People are missing out on that human connection. We've got a live event scheduled in three days here in Nashville. One hundred twenty five nine coming from eight different countries and we're going to talk about the human connection. That is the whole so purpose for them coming to Nashville for three three days. And that's what we're going to talk about is how important human connection and before I get to the last question I wanna ask ask you about the mastermind because as you said your mastermind originally was talking in meeting weekly with this group Group of guys that you met with and now of course some of your masterminds in many other masterminds. They can't meet together they do it electrically and sometimes they are able to meet together. How do you manage the difference between a face to face type of meeting in a you know keeping in touch through online is is it? What what's your experience about that? Yeah great question. In when Dave Ramsey invited me to join his mastermind back decades ago. Now I I didn't even know what a mastermind was. Come up to me and he said hey big a I want you to join my mastermind and I went day. I don't even know what a mastermind is and he started laughing. He said it. Just come to my office. We see morning seven thirty. He said I'll introduce you to the guys that have been biting. There were ten guys and we ended up sharing and doing life for over a decade together together and it transformed my life as a result of that. Well what I have found out though is because of technology we now have these videoconferences this morning. I'm in Nashville Tennessee. You're in Bangkok and we're doing this amazing interview. We would have never known each other ever had we not had this platform that form that we could have gotten together own called zone that we're using and so now we're able to interact. I feel like I know you. We had pre interview chat. I feel like that I could call you at anytime now. Now it right because we've building relationship and so that's what it does in the mastermind group. Now you don't have to count on the geographic area to get the mentors in the people that you need geographically there are no boundaries anymore and now I can have guys and we have eight different countries represented and are groups today and we have one guy on the call. He's from Australia. And it's a day ahead of us on the same call so we represent two days at one time on the same call. Here's what I have found out the guys will be more authentic transparent and vulnerable faster. Let me tell you what we've discovered as a result of that the Andrew a few and I lived in the same city in our wives were girlfriends and I had an issue that was sensitive in nature. A might be a little bit timid to discuss that with you. you in fear of you would go home and share with your wife and then our wives would be playing tennis together tomorrow and a cat might get let out of the bag right so we keep people at arm's length because we're dealing with our banker and our lawyer and the people at our church and in the civic realms that we run in but when you have somebody in Stephenville Texas in somebody in Nashville Tennessee in somebody in Bangkok Thailand better sharing intimately. I don't have those fears. I and so I'm able to go. Andrew quite honestly businesses. Not what I'd hoped and I wish that I could make a change. Could you give me some advice or I'm struggling in my marriage wjr or I've got this vice and can't let go of it and I need to be held accountable. Would you mind being my count ability partner. Tom See it allows people to do that. The other marvelous thing is I live in Hendersonville. Dave lives in Franklin. It's forty five minutes from my house so I've got an hour travel time hour and a half meeting in thirty minutes to talk after the meeting and an hour back so I've used up three and a half four hours out of my Wednesday with the video conferences in the convenience of your home convenience of my office I can cut it down. We're on for an hour. Cut it off. I go back to work so the time that it saves. You is unbelievable. Plus we can gather so many mentors industry consultants thought leaders from all over the world and put them together in a video conference. And it's almost almost as good as being around a table in person. That's great I mean I would have never really thought about that but the aspect that you know the key to the mastermind is sincerity in trust in that thing of being under a bit farther away actually can help with that so now before I ask you this next question. I'm going to take you back to a moment in time. And that is September Fifteenth Nineteen Eighty two and I was in Baton Rouge Louisiana. I was a seventeen year. Old Guy just turned seventeen. I was on my knees sobbing in a bathroom in a hospital in Baton Rouge Louisiana Far Away from my family in Ohio near Cleveland. I had arrived at that place by having a one way ticket from my parents on a bus From Akron Ohio to Baton Rouge Louisiana and my parents said this is your last chance to get clean clean and sober and I was erect. I had already tried to kill myself a few times over the years before my life had gone down on the tubes. I was actually in juvenile jail. When I was fourteen? I had been violent. You know in fought with my dad and fought with my mom. I had stolen from my family. I broken all the trusts. I'd already been through one rehabilitation center and I got out of that place and four days later I was using drugs and all of that in my life. You know. Continue to spiral out. But at that that moment I had been told when I went into this hospital that would be a evaluation unit and that they would evaluate me and if I made it through that Evaluation Valuation Unit. I would be allowed into the treatment center. My parents told me you have seven days. And if you do not make it through that valuation you can just walk out of that hospital and enjoy your freedom because we're not paying for you to come back and you can live your life however you want. My parents had been through a lot and they learned about tough love. My mom in particular you know is someone that really stood up for that my dad I think my dad you had it had a harder time being so tough but she knew she knew that pushing me to that limit that I could do the right thing. The reason why was on on my knees sobbing in the bathroom in my room was because the people who are running the the place I had been a model citizen. I knew all the lingo. I knew everything and at that moment moments before that they had told me. You're not going to be moved into the Drug Rehab meaning tomorrow. You can pack your bags and walk out on the streets of Baton Rouge Louisiana and you know good lot and it was at that moment that that moment was my moment Ab- surrender and I surrendered. You know at that moment to God to my higher power most importantly the I surrendered to the concept that I couldn't do it everything I did. Got Me to that point as we say you know uh-huh sometimes my surrender was. I'm not God at the time. I surrendered at that moment and I gave up. I gave up fighting. I gave up trying to run it you know and I just gave up and I truthfully can't remember exactly what happened but on the next day at the last minute. They accepted me into that Jeevan Center. Now whether those guys were were purposely or not I have no idea but all I know is that more than three decades later. I can say thirty seven years later. That was my transformative it day and since that day I've never taken any alcohol or drugs. Most people just know that I don't drink. I don't do drugs but it was that that moment and the reason why tell that story first of all because I'm appreciate you sharing your story but also it's a preface for the next question question which is based upon what you've learned from your story and what you continue to learn. What one action would you recommend our listeners? Take to avoid suffering the same fate you know. I think it's really important that we prioritize our priorities. A lot of people try to live a balanced life which is really a myth. Really what we should do is be very out of balance in the right places and so I would just suggest that you really really put your priorities in order and that you focus on the things that are meaningful that are lasting that have purpose. And you spend an inordinate amount of Tom Doing that in really keep in the forefront of your thoughts how we're not promised tomorrow we have all these plans you know. We're not promised tomorrow Mara. And I would encourage you to live today like there is no tomorrow in a good way and I would really surround myself with honorable trustworthy people. Jim Rhone says we are the average of those five people. So it's really important who you spend your time with and so I've really taken that to heart. Were very selective on the the people that we spend time with because time is very important and so. That's the encouragement. I would give your listeners today. intestate will last this question. What's your number one goal for the next twelve months? You know. We've got a product you mentioned it earlier in the bio called the mastermind playbook and you can find out more about that. At the mastermind playbook dot com and what is is a very informative very detailed old framework that teaches you how to start row and scale masterminds. We've been very very successful at doing this in so so we leave no stone unturned. We give you everything you need to know whether you're a novice or you're very experienced. There is so much content. There's thirty professional videos. Radio's there's over ninety worksheets. Templates and tools that work. You through every aspect there is and what's so cool about that if people are looking for away either as their primary income or secondary income for a very minimal investment. You can have a six figure. Business with to mastermind groups reaps charging a very minimal fee in. So it's a very very scalable product that we've designed in. I would just encourage people to take look at that and our goal for that is to get it in as many hands as possible so that we can continue spreading the message of how to live a successful and significant. Oh come on beautiful beautiful. Yeah and I think that as the world becomes more tack -nology driven the human connection that we get through relationships in masterminds are going to become more valuable so what a goal and what an exciting opportunity while listeners. There you have it another story of loss to keep winning to find more stories like this previous episodes and resources to help you reduce your risk visit my worst investment ever dot com as we end. Erin I want to thank you again for coming on the show. I know it's painful talking about losers and our bad situations but our listeners are learning to win as a result. And I WANNA congratulate you taking your most painful difficult moment and turning it into your best teaching moment. Do you have any final words for the audience. Andrew a broad a little gift if it's okay if I give a gift to way to your listeners. Yeah if you'll go to view from the top dot com forward slash my worst investment ever. There are two documents that I wrote years ago. They've been downloaded tens of thousands of time. It's a personal assessment to where you really look deep into yourself and make good decisions in another document called. What do I want most people in life today? Just won't bigger better or Shinier faster but this helps you to really think through with clarity Freddie how you can live a very productive life in how you can keep in to the focus that we should have to have great levels of success and significant simultaneously sleep so go to view from the top dot com forward slash my worst investment ever in download those for free. Well thank you very much in to the audience. Audience take advantage of this opportunity. If you can't find it just go to the show notes and I'll put a link in it there. That's a wrap on another great story to to help us. Create grow and most importantly protect our wealth fellow risk-takers. I'll see you on the upside.
Inspiration in Times of Crisis from from Mohd Sedek Jantan, Azran Osman-Rani, & Lasse-Peter Pestel
"Hello Fellow risk-takers. Welcome to my worst investment ever stories of laws to keep you winning in our community. We know that to win in investing. You must take risks but the wind big. You've got to reduce it. My name is Andrew Stotz from as DOTS investment research. And I want to remind you that in this difficult time it is okay to reach out for help. Now is the time to rely on your family. Friends and the network you have built in that spirit. I have reached out to my network of podcast guests and have asked each to share a few minutes of wisdom about how to survive and thrive during these difficult times next up is Mohammed cdot Japan and Mohammed was episode forty four which was titled Panic Selling When Stocks. Fall is usually a terrible idea and how appropriate for this time? Mom and see. Dank is an experienced and highly competent investment professional and financial planner. He's currently connected with standard financial advisers since June of twenty fourteen where he's the head of investment and financial planning and what's good about his advice that I like is the idea of thinking for the long term and the idea of understanding that the market brings volatility in just selling into that volatility can also often lose you a lot of money so think long term as an investor if you have invested for more than three years but only now experiencing shut the losses do not obsess about the reduction in value doodling disc Covet nineteen appraisal losses of twenty to thirty percent. We'll be normal. Investor need to understand that equity volatility is the price they pay for capital opposition. Although the long term and the quality hubs to build your wealth over time it needs always painful when you make a loss in this case it important. For investors to differentiate between income and wealth of people have misconceptions about this wealth refer to value of assets held by a person or household at a single point in time this has said may include financial holdings and savings in contrast income is the flow of funds such as bridges and salary from employment of from a business hence the men question to us investor is raided the have a job that offers a salary during the shutdown day. Confident that they can keep this joke true and off the disputed if the answer is yes and the still in a good position in terms of investment performance. We understand that during this covet. Nineteen Penta Pink. The wealth that investor have accumulated over their lifetime has eroded in value as the market has crashed. But we you making good rhythm before if yes this opportunity to top up your investment. Let's say you have a five thousand to invest sat out an ultimate Scared you for example. Maybe invest five hundred every other Tuesday. This remove dirt emotion from the process and if the market since for the do not fred most of us are investing for the long term as Ron Azman Ronnie is episode seventy six from zero to a billion dollar IPO. Wow that was such an amazing story of Air X. Asia an Azran is currently the founding. Ceo of Non Lurie a digital health technology company that provides cost effective and accessible digital health psychology service to help. Us adopt healthier lifestyle. Behavior changes. He is active in the Internet technology. Space a CO founder investor and adviser to. I flicked money. Match cog mix 'n yellow porter. Also you can find him on linked in does a lot of great post there what I found interesting about what he taught about is kind of coming back and looking at it from a crisis perspective and the idea is it. If things don't go well we can let it go. Be careful about pressure anxiety and even depression. Sometimes we have to move ahead and let go of the old days and try to figure out how we cope in the new days. Hi Andrew and my worst investment ever listeners during these challenging turbulent and uncertain times. We're not short of advice on what to do from tips on working from home exercising indoors. Running fictive zoom meetings investing in bear markets and eating well yet many struggle to implement this advice and I believe one thing holds us back acceptance. We subconsciously. Hope that after couvert nineteen things will return back to how they used to be. We do not commit to the situation nor commit to the new practices in the tension between the logical part of knowing what we have to do to change and adapt and the emotional part yearning for the stability of the past creates pressure anxiety and even depression so consider research done on people who have got to go through stole my surgery or a colostomy this is where a surgeon creates an opening on the stomach wall attached intestine to it so that bowel movements go through that opening and into a pouch that patient then disposes so for people with significant damage the intestine this can be permanent procedure. You have to live with it and for others. It's a temporary procedure to allow parts of damaged intestine to heal. And after a few months the surgeon reverses the procedure closes the stone research on life satisfaction and quality of life. She was that those dealing with this situation permanently not to be better than those dealing with this temporary handicapped. Why acceptance when we accept we can move on and do what we need to do to move ahead and let go of the yearning for the good old days all the best and stay safe. Stay healthy so finally. My friend Lasser Peter from Germany and he was episode number seven his title was Euro Zone Bailout Fund considering the risk return Lasser is investment strategist at Decca investment in Frankfurt. Starting his career as an intern and working his way up through various companies including fidelity investments in Frankfurt one of the things that was hopeful about what he shares. How the restaurant businesses are starting to recover. And that's exciting. He gave me some hope about what he's seeing but he also mentioned that we should stay back and stay home and don't get involved in spreading covert anymore than it is so great information there. Thank you Andrew for giving me the Unity to talk about the extension of the Cobra virus in Germany and how we cope with that first of four m s many other countries. We are as well in the lockdown and most of the people stay at home offices are empty as a matter of fake and life is scaled down to minimum nonetheless. What I find very interesting. Is that the main factor of economic growth within Germany which is S in the US as well. Consumption has not come considerably down delivery company such as DHL ups Reporting which are the same then the pre-christmas times and these are the most busiest times for the consumption is quite high. So people like to consume their order lot from Internet coming to the second market which has been hit quite hard by the Cobra virus. Is The restaurant business here? You can pretty much see that people tend to order and take out food. A Lot. Restaurants were hit hard by the crisis in the first two three days then the business went down to almost two zero and now rebounded many restaurants report now that they have been back to about ninety percent of their business coming to personal lives. How people cope with this crisis is staying at home. Gives you some sense of firm Calming Yourself Down? People don't go anywhere. They feel a bit lockdown in people especially now around Easter time in Germany. Start to break the law. Break the rules of going out. You can see a lot of people taking walks being outside and go to outdoor gyms even even though it's forbidden but they're still doing that over and above here in Germany. We hope that the markets and the officers will be open with in May L. actually more specifically saying the first week of May things should open up again and we can go back to the offers for myself. I have been working from home though in the fourth week. Today's holiday little bit scaled down. Because I don't have all the excesses I need. I don't have a work laptop so I'm working. Melanie from the phone waiting for emails and do analysis as far as I can so the situation is a bit tense but nonetheless we are coping with this and hoping that he'll be over if there are any further questions. I'm happy to assist you and hope to see you in two years again. Bye-bye all right listeners. There you have it stories of inspiration to keep you winning as we end. I WanNa thank my guest for coming on the show and sharing how to survive and thrive during this difficult time. Well that's a ramp on another great show to help us. Create grow and protect our wealth and our happiness fellow risk-takers. I'll see you on the upside.
Raoul Pal Stick With Your Hedge Fund Model. Dont Outsize Your Position
"Doc It's kind of weren't sure whether with through the Westville note you had to stand up and go no it's not done yet but at this point unlike the other considering you'd have to take several tons of the last few years at that point right you'd have to take it at least twice in two thousand eight once in two thousand seven as the certainly protect our well fellow risk-takers I'll see you on the upside of real vision a financial media company offering in-depth video interviews and research publication from the world's best investors he program million dollar traders training participants in investment and risk management strategy row retired from managing client money episode is sponsored by the Women Building Wealth Membership Group the complete proven step-by-step course to guide women from novice to confident investor to learn more women building wealth. Dot Net my name is Andrew Stotz from as dots investment research and I'm here with featured guest row Paul Raut are you ready to rock look like the Mu Icu all over the Internet doing lots of interviews doing a lot with real vision I'm just curious extremely busy extremely ridiculously busy running basically three mendes traveling so I am probably New York I'm from down the road two weeks at a full and then when I got a chance I try and go out diving and stuff like that he is and then in a journey to find a the wills perfect beach I ended up in the Cayman Islands found a stretch of beach on an island two hundred forty P has run a successful global macro Hedge Fund co-manager Goldman Sachs Hedge funds sales business in equities and Equity Derivatives in Europe and helped design the BBC TV didn't lifted India for a short period of time then after I left jail J. Running Hedge Fund I moved to the Mediterranean coast of Spain live there so try and get to enjoy the island an every fourth weekend it's happening this weekend I go to little cayman where there's nobody there and a whole up ready to rock let's do it I'm going to tell the audience so that have been about you former hedge fund manager who retired at thirty six Ron Paul is a co founder and now lives in the Cayman Islands from where he manages real vision and writes the global macro investor a highly regarded original research service for Hedge Funds Family I have laws to keep you winning in our community we know that the winning investing you must take risks but to win big you've got to reduce it today offices sovereign wealth and other elite investors row take a minute and filling a further tidbits about your life my life yes. I've huff Indian huff Dutch grew up in we'll be tell us a bit about the circumstances leading up to it and then tell us your story I've made plenty of scripts in my time and yeah you have to also beating my wife to marry next week my wife to be in Little Cayman so two hundred and forty people so they then that's insist to writing businesses plus Real Vision Real Vision we've got seventy eight hundred eighty employees around the world fifty of them in nukes it's not the sample size this is important as the ultimate selection of that one person so exactly and just what does an average day or week or months writes the global macro investor writing for fifteen years now and I love that kind of patient tranquility bay on his perfect ultra silent beach you have to learn the hard way but this one was the hardest lesson I think I had to learn I had started global micro investor in two thousand five small sample size that you're selecting from there is a small sub been around the block there's been plenty of sampling yes I suppose that you know that the otherwise it's just hard to to build the thoughts well now it's time to share your worst investment ever since no one goes into their worst investment thinking completely got rights and so I had really made a huge reputation for myself 'cause I'd also done very well in two thousand Hello Little Cayman and bought a piece of land and built a house there and then got building revision moving to grind came and still have the House Little Cayman and eventually and I was managing my money as well as as well as advising many of the world's most famous largest hedge funds family offices often wealth funds that kind of stuff long emerging market position to show emerging market positions show you much risk onto risk off over two thousand seven Saudi nailing that whole situation two thousand there I have my Bloomberg going and spend my time writing and thinking I love that disconnecting I mean I've got to do the same thing when I sit down to write because works well so I have a framework from which follow analyze global economies so that framework allowed me to nail the whole situation turns two thousand nine come along and I have a process by which I follow and unlike most economists on the business cycle economists so a first year out of the gate did phenomenally well second-year phenomenon wells around two thousand sixty thousand seven sensing guiding administer switch around a oil decoupling oil if you remember two thousand eight hundred forty dollars and that was the decoupling for the Chinese xm but generally speaking if business in two thousand and one I also oversee lived abbreviation crisis and stuff like that so I had in macro yet I'd nailed the big one in macro I look at my economist build a linear model of GDP and it's ridiculous because actually if you smoke show small child a chance of GDP is up and down probably in my view was that there were other hurdles may be there and I was Brealey obviously emotionally caught up with it mug so my own framework was suggesting that Isamu and the business cycle had probably bottomed not certainly actually oddly enough perfectly over almost perfectly forecast GDP but when he put when you look at that cycle up and down cycle when you do things like look at the year the world setup in a way that I was looking that we had two choices one is that the had done enough through the Westville note you had to stand up and go no it's not done yet but at this point unlike the other times I know my own poached managers in the US to give me an idea over they are confident or less confidence in of the economy going forwards why does that work and the system was to be saved or they hadn't done enough and things are GonNa get was and considering you'd have to take that several times a US business cycle now there has been some decoupling you say occasionally when China came on the scene in two thousand and seven and six you still things I'd culpa an for the listeners is number one you mentioned about the psychology and the emotion of it and also you know I would highlight the first year I ever had an investing or in advising and that was two thousand nine psychologically took a few years to get over it I kind of got over it there'll be some recovery so that process was berry expensive to me so after a series of four years of the best returns of behind I'd have by far and away the I but then two thousand thirteen fourteen fifteen that kind of did okay ups and down here is because you're psychologically the last few years at that point you'd have to take it at least twice two thousand eight's once in two thousand and seven as the markets Kinda weren't sure whether Tom it's cyclical almost no economic schools outside of economics which I'm not particularly Australia but the general business cycles look at an markets applied the economist so I look at markets in conjunction with economies I look for the opportunities between that told you something is San into supply management survey which is a survey of had their own frameworks in this is not gonNa Happen to me some curious what did you learn from this experience is nothing is a certainty but like yourself for a lot of listeners would say come on you know how could you make such a mistake or how could that happen or many some of the listeners as probable in fact it was a low probability event as opposed to a higher probability event when I took the big bets so there is risk sizing within it there is is as opposed to the nuns of essential didn't back which was that the business cycle had a play this role and that that we'll see risk return to market the financial crisis and the granularity of which I use just use the Osama look forward looking indicators within it stuff like that but two thousand nine rates of change of this and pay or oil or gold or copper or the Korean won the Korean stock market or emerging markets that all the same bill go up and down the I can override this and sets against you framework it's it's Hubris and and also just a MIS assessment probabilities great so let me is what I take away from it listening to it and see if there's anything that I missed the first thing is that you know confidence is something that builds over time as we invest as we do any right so so the the very thing that has given you the best returns of your life is the very thing that might shape the difference was the framework was put odds in your favor so I should have not taken as much as I could have seen it so being negative I could've still overrun but I should take less risk however think and unfortunately confidence sometimes all most of the time leads to overconfidence and so this is kind of one of the most classic behavioral biases that the emotion of you've been winning a lot and you tend to if you don't care forget hubristic so he comes into that thinking no I'm right in forcing here and let's let's go through the lessons that you've learned from that and particularly I think what's fascinating thinking that actually it was gonna and it's going to go lower and so that would be in terms of probabilistic outcomes it was probably the ten percent chance that I will have to buy generator because we went show the banking system would lost considering Cyprus a completely imploded Greece had imploded in Cyprus banking's and sometimes they don't and it's interesting to hear about okay I think I had a good enough framework that could that could produce good results throughout the whole I'm really it's really interesting about ignoring the framework because there's also people out there who have a framework that just doesn't frameworks break frameworks work during certain times period of time now I think the lesson that I learned from that is that you don't have to abandon your framework but you know following it number one is critical but questioning that framework is another important part of it and the other one is emotional the emotional aspect you know it's just so easy for us to get the difficulty was is I had gone against the crowd several times in two thousand seventeen thousand night and it'd made an extraordinary return for me caught up in the emotion of success and the emotion of failure and the emotion of trying you know the whole job of a professional investor by two thousand twelve those comfortable and go to the psychological damage of having a a something like that then eight Scylla effectively until about two thousand and what happened was immediately came out you're absolutely imploded as I said it was an extraordinary time where spacey is to take a bet to try to find something that the rest of the market doesn't see and take a strong view on it now that doesn't necessarily mean a strong position but definitely stronger crop bossism things because as we understand them today and what's really interesting as retinol school in two thousand twelve which was called the end look back in a book or something like that that you know the decision make I always say I made the best decision I could with the information I had at the time not with the information I had today not so great from Cayman Islands in city came announced where our headquarters as we've got stop in London goes off around the world within Gustaf in Malaysia so a loss of traveling got hold of that presentation sent it to the media and it became the most read widely read financial also in the history of the Internet okay so those are some of my thoughts is anything that you would add to that no I do think the hindsight thing is an important one because we as humans as you say we kind of anybody that's kind of nonsense in some ways because hindsight bias is very real when we look back at the crisis in two thousand eight as you described in Spain bounce two thousand no actually it was difficult because two thousand twelve was yet it was the euro zone crisis so that was of the same ilk you still kind of sets up for okay I understand and then game because Europe was very close the probability of something really bad happening is playing defensive is somebody Honda little bit scarred by all of that because draw it saves the day at the end of the Europe when he was on the very break I was living in Spain we haven't to buy food and store it Ashok down entirely people forget that so it was it was an extraordinary bison so that was the knock-on effect is thousand nine I know my framework you and at some point strong positions that's what we're supposed to do but sometimes emotion gets caught up in the lasting is the you know we like to say that hindsight is twenty one all of Europe the indignities people in Spain marched from the fields to the cities they were torching cars and buildings I mean in our listeners take to avoid suffering the same fate the one action I think you nailed it is have a framework for salsas and and it wasn't an article that I actually presented at the Morgan Stanley Hedge Fund conference in Shanghai that was March two thousand twelve economy contracted by eleven percent in nineteen ninety eight and Thailand. We were the epicenter of that and it really did take about three or four years before people started spending again company started spending again will I mean when when the ninety seven crisis happened I lost my job in ninety eight and we had started our business coffee works my best friend Dale and we basically had to decide so the pain is very real and that that is very hard to put into a textbook or a history book about that so I think hindsight is very we can be very biased when we look back all right let's wrap this up by saying based upon this story and what you continue to learn what one action would you recommend based in London buried if when shorting remark and you see the pain around you so that was the whole thing that hindsight thing yeah look nineteen ninety-seven crisis people jumping off of buildings in Bangkok you know that's not something that you realize when when stick to it do test it and have the faith in it and understand how it's GonNa work fantastic advice now last question what your number one goal for the next twelve months look we have to move into the factory we the only way we can survive is to cut all costs down to the minimum and not we didn't know how long it would be the economy fell Arafah most of it now you're framework may even be risk management it may be how you stop losses it can be whatever it is a different people have different frameworks at work for them audience make mistakes you only learn from making mistakes you can hear me make mistakes but you'll only really understand it when you make your mistakes we always have to be careful and as we always say in the industry if you know if you're if you're over confident that the the market will teach you a lesson the second thing well I'm getting married a week's time so I'll do that first that'd be hurdle and that's I'm getting married in Marrakech in the middle of the desert outside Marrakesh Morocco so it was an extraordinary time looking back like you said about the Asian crisis people got that wrong well actually financially benefits all right listeners there you have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help reduce your risk visit my worst investment ever dot com as we end row I wanNA thank you again for coming on the show I know it's painful talking about are losers but our listeners learning to win as a result and congratulate eighteen the Netflix of finance and crossing the wells best financial video contents that's all about storytelling an engagement and it makes finance interesting unique usual framework but do test your framework because it does changes you say those things will probably keep you on the straightened out for the listeners out there that haven't gone to Real Vision I highly recommend you do it output in links in the show notes including some of the most interesting interviews that could really blow you away Stan what's going on and just the concept I love that tagline the net flicks events finance very cool in a beach town and their property and it went bust I mean the the unimplemented fifty percent I was interesting as even today on the Internet make mistakes just do it you know a lot of people say don't do this or do this and didn't have only two people have said yourself in one other have said the amount of information that's being provided by real vision is really impressive and it's a great tool and resource for all of us to you know cheap building our knowledge and under lawns no my prime mug hello fellow risk-takers and welcome to my worst investment ever and you have taken your worst investment ever and turned it into a teaching tool that can help lots and lots of people do you have any parting words for the so that will be the next big thing and really for me my most of my life is currently tied up in religion and and this incredible journey of in his amazing place for Zillow so that whole journey is what I'm continuing with ended the hope for me is to continue the expensive right that we've been seeing over the last five years do it you're gonNA lose money but you're GONNA learn from it can here here. We have the learning well that's a wrap on another great story to help us create grow and most look back and go see that idiot he got it completely wrong the world didn't end them like it might have ended for you but they were rioting in the streets across a you can make mistakes as only size trades right. That's great advice listeners. And that's the second person out of more than one hundred and thirty interviews that is said from it which was an odd situation as you know when it receives them not Asian crosses fails really old when it's in your backyard is different when you're choosing the time bought in was forced to take ten million dollars in easy if not all their banking system would have gone and I was living in spite building realized that the two percent of my friends went bankrupt.
Scott Buss Live by Principles of Trust and Transparency
"I did something or noni. But i was. I was locked up. Unfortunately or ons. Hello fellow risk takers and welcome to my worst investment. Ever stories of lost to keep you winning in our community. We know that to win an investing. You must take risks but to win big. You've got to reduce it. This episode is sponsored by a stotts academies valuation masterclass. They call it the boot camp for evaluation because it takes almost two hundred hours in students must value twenty companies to graduate. It really is the complete proven step by step guide to take you from novice devaluation expert. Go to my worst investment ever dot com slash deals before march thirty first twenty twenty one to claim your thirty percent. Podcast listener discount fellow. Risk-takers this is your worst. Podcast hosts andrew stotz. I'm here with featured guests. Scott bus scott. Are you ready to rock. I am ready andrew. Let's get going. I can feel your energy. And i really excited to talk to you today. And we've already started our discussion. And i thought we gotta get the recorder on so. I'm excited to do that. But i want to introduce you to the audience. So ladies and gentlemen sky bus lives his life and runs his business based on the principles of trust and transparency. Scott as an aviation expert who explores and connects the synergies between the private jet industry and the unlimited number of luxury lifestyle. Vip brands his strengthened passion as a networking specialises developing emerging new. Business ideas. Scott has a strong focus on sales and incorporating luckily traveling high products into the jet aviation space in addition to aircraft and worldwide private jet charter sales. He loves to create vip experiences for high net worth clients and businesses around the globe. Scott minute and feeling for the tidbits about your summed up really well. It's a very interesting business that i have. I'm just ready to dive in and go. We can do so well then. Now it's time to share your worst investment. Ever since no one ever goes into their worst investment thinking it will be tell us a bit about the circumstance leading up to and then tell us your story sure circumstance lead not to it is i had some time to kind of dwell and i was. I was away for about four months. And what i did for that for months is i didn't have access to any social media. Nothing and so. What i did is trained my mind in go. I had resources or like magazines newspapers and things like that. I knew what i wanted to do. So that's how. I want my business what i did. Every day is i wrote notes of ceo's executors around the world from an entrepreneur business week wall street journal what i had access to within reasons and what i did is every day i feel that list in an awesome also i would read read some quotes and keep myself motivated that way that way i had my of starting my business because i was in private aviation for about four years so when i was done with my four months i wanted to do something enact get hit the ground running that for months taught me a lot of mentally physically and what you can do with limited resources so when i came out my biggest tool that is i started my business. We go more into how i started when i did. But that's how i utilize layton is a very powerful tools. I've been using for many years. But i came out with a list and i still have it to this day. I've listened about fifty pages about five thousand names emails from people around the world business. And so that's my little four-month away turned into my business. And when you say a way what do you mean it. Sounds like you're in a cave. Or something i was actually. I did something not super naughty. But i was. I was locked up. Unfortunately four months i take a we take responsibility for yet. It's nothing super serious. Would result where the laws are different. When it's not something. I share with everybody that put the thing but i share. This is because it made me who i am when you said i start. My business might life my friends. It's all entrust in transparency. It was just a reflection in so it was a hard hard for months. I i moved on. And i'm only growing because of that. You know people see me as in thailand like successful in my career in a sincere honest guy. But when i tell them that at the age of fourteen i was locked up in a juvenile detention center. There a little bit shocked. And i think when they hear that i've been basically put into three different rehabs over almost a year of getting clean when i was sixteen. Seventeen that it's kinda hard to believe. And i think the lesson that i always say and this is a a question. I always ask an ethics class that i say to people. Imagine two people steal and one gets caught and the other one doesn't which one is more ethically wrong well. Society tells us that the one that got caught is the one who we focus on. But but as i always say you know. Think about the worst thing you've ever done and this is my challenge for this. Listen think about the worst thing that you've ever done and chances are you didn't get caught but their chances are. There's another person right down the street. The did get caught and their outcome is a very different outcome. Despite the fact that you've both done the exact wrong thing. And the other lesson that i learned from this is that we had a situation and ethical violation here in thailand with one member of our society cure and as a president of society. You know it's our job to kind of route that out but we're also human and as president. I called to the guy that was under this trouble. And i just said you know. There's no choice. We have to do what we're doing but the reality is that this doesn't have to shape. You and you can make amends for what you've done and you can use this as something that propels you to a great future of future where you really sincere and honest and so you know the minute. We started talking off the mike. And i really heard about trust and transparency. I loved that but then with you being able to trust you know to be able to be transparent about things it really. you know. it's key. We learned through those experiences. So i really appreciate the fact that you do that. And i would think that part of what your worst investment ever said. You had to sit and think and this is a great book by weldon long. I think it is called the power of consistency and he was locked up for many many years and what he ended up doing was trying to build his vision of what he wanted to become when he got out to be a good father to be able to to to make a living and i highly recommend that book. I mean i've listened to it so many times and it's the it's the defeats that can really define us to become great so a lot of stuff that i'm saying there but any other thoughts that you'd add to that i think really shapes people when you go through something like that in this situation that everybody's done it. I hate to say it has to do drinking and driving and unfortunately how many times have people it not get caught or hundred times or this or that. Unfortunately they take it very serious. I was a new resident. And so i had set for months. I'll tell you it's very humble experience. And when you're in there with murderers aaron levant different kind of people you you think in grow up real fast and it took me a little bit but like i said it's it's shaped me and i won't be where i am now in position or my business if i didn't have that four month break so i look at that as a negative but with every negative. There's a positive it's up to you to figure that out. So let's i want to know kind of shape. The conversation by looking at the listeners out there who have faced trouble they have faced big mistakes that they made whether that's whether it's in relation to the law whether that's in relation to family or business getting angry or hitting someone whatever those things are and let's say that those people may not have been caught in some cases they may have been caught for what they've done but those things can weigh heavy on some people so i want to ask you. What are the lessons that you learn from this experience that they can apply. I start to be honest. I was always in spiritual person. But i believe i became more spiritual read some good books. I figure i always say when you have got with you. Who can be against you. The best form of energy is prayer energy. And i always used. This is my business in every day. You can pick and choose boyfriend your girlfriend your car your house. You can't choose your purpose. God does so. I figured out. My purse is my strength was networking and building relationships in monetize soul. Think of the positives. What's gonna come out. Take one day at a time because if it's one year six months whatever the time may be take little by little because if you're going to sit there down the days in the hours and this and that you're going to run yourself but know that when you get out the only one that can control that is you in you make the difference if you wanna take a life lesson Family driving money. Whatever it may be you take it and look down and be a man or a woman. Say this is what i wanna do. This is what i need to do. So maybe i'm going to summarize a couple takeaways. And i've already given some of that but i think one of the angles that i wanna take his. I want to take the angle of a mother or a friend or father who is dealing with somebody who's struggling with this particular situation. Whatever that situation is. And i think one of the lessons that i want to take away from this is that never give up on you know for me. It was case this plenty of people. That would have been happy to kick me out of school when i was younger digest. See my life. You know say you deserve it. You know i. I was an asshole. And i did a lot of bad things and you know. I deserve what i got my mother in particular. You know as well as my father and my rest of my family. But i think my mother was pretty strong that she saw something in me that i just wasn't living up to and she stuck by me to help me to get through that time and i changed. I became a better man. And i just think that lesson i want to take from. This is the lesson of support that we provide to people around us who are struggling and to say. You're you're bad decision that you've made does not define you. You need to make amends. You need to say you were wrong. Make those amends apologize but that the challenge really is. How do you as an outside person support someone you know people in jail. I have another friend in jail in bangkok and he got life in prison and just to go and spend some time with him. He still a human being. And you know exactly so. I think the biggest challenge that i want to give to the listener out. Here's identify someone who is at their most painful point and reach out just a short phone call a short visit. A short talk can change the world in that person's life. You know. I feel very emotional about it. But that's my big takeaway and i challenge the listeners. To take this story and think about how you can reach out to somebody who's struggling right now and help them to see as scott is saying to find their purpose. Anything you'd add to that. I agree andrew. I got goosebumps. Unfortunately that's a good thing because it hits home it's around the world. Everyone listening to this different situations political government countries. I learnt to that you don't know who's going through. What if you're going to store you don't know the lady going through. Divorce will abuse. This guy lost his job. So when i came out i try to pay it forward. Even if it's a smile on somebody's face. You don't know what you're going through the simplest things and i just believe you know paying it forward thinking off the people out there that don't have what you have and the struggles are real. But that's what shapes you in you surround yourself with like minded people and good people in your inner circle. You let a couple people in these are be. Okay so tell me. What's your number one goal for the next twelve months. Stay on trump. no. I think he's done that little. Be honest my goal is already taking place with private travel. I'm scaling were most companies right now are having a heart hard time in certain businesses or in open unlucky enough to be busy and half to vamp up scale and with the pandemic launched another business as well so i'm very grateful a year from now maybe i won't be in as much as balked. I'll be traveling more. It's hard to say. But i'm one of those guys that when i put my hand in something i want to be involved. It's hard to let go you know. So that's kinda were at the next year. Grown tastic fantastic alright listeners. There you have it another story of loss to keep winning remember to go to my worst investment ever dot com slash deals to claim your thirty percent podcast listener discount on the valuation masterclass as we conclude scott. I want to thank you again. For coming on the show and on behalf of stotts academy i hereby award you alumni status for turning your worst investment. Ever into your best teaching moment. Do you have any parting words for the audience. Now andrew. i would just say this. If if anybody out there needs a friend or somebody talked to. i've been through it. You can email me og leave. Andrew will have social links reach out on lincoln ave believe entrusting transparency. I believe in integrity obviously being in private aviation things between you. And i saw somebody needs to talk and been through a very diverse life from lot of family members. Dying to. When i was twenty my friend did suicide in. It's not about me. But i am very diverse person. So no matter what you're going to need somebody don't know reach out. I'll be happy to the lending hand. That's fantastic and for the listeners. Out there that's quite an offer and so don't hesitate to reach out to scott also. Obviously i'm always open. You know particularly for people that are struggling to talk. And that's a ramp on another great story to help us create grow and protect our wealth and truly our health fellow. Risk-takers this is your worst podcast host. Andrew stotz saying. I'll see you on the upside.
Russ Johns Build Skills That Will Carry You Beyond Your Job
"The company mergers and acquisitions went out. My job was no longer necessary or needed. And i was disposable and because i hit invested so much of my life in my identity in that position when it ended it was a tragic change in my life has low fellow risk-takers and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that the win in-investing you must take but the win big. You've got to reduce it. And i bet you're exposed to investment risk right now to reduce it go to my worst investment ever dot com and download. The risk reduction checklist. I've made specifically for you and it's based upon lessons learned from all of my guess fellow. Risk-takers this is your worst. Podcast host andrew stotz from as thoughts academy. I'm here with featured guests. Russ john's russ. Are you ready to rock. I'm ready to rock andrew. All right well let me tell the audience a little bit about you russ basic. Listen to this ladies and gentlemen you can be seen be heard and talked about using live streaming media. Let's face it. It's not always easy. It feels like ten thousand. Details and technology is daunting acknowledges overwhelming when you want to produce content. Especially if you don't have the time work with russ john's to create your on line impact without the technical overwhelm. And i love the three words that he focuses on or the three sayings show up. Go live bill. Authority russ statement and philip further tidbits about your life. Thanks andrew and first of all gratitude for all you're doing and assisting people supporting the community and learning about their investments and just to give you a little background of my. My journey into this episode is the idea that i started out as a musician. I play music up until nine thousand nine hundred eighty seven where i fell three stories off a billboard and shattered my arm my wrist and i was in rehab reconstructive surgery for two years and coming back and investing time in the journey to learn a new skill learn new attitude enjoy and appreciate life and raise family and work in in and out of corporate america and one of the things that i love and i appreciate up till this day in his brought me to. This point is the creative process. So that gives you a snapshot of where i came from. And what i'm doing today. It's interesting about the creative process because obviously a musician has that at the heart right. And i'm just curious when once that fall happened in you went through the rehab. Were you able to get back into playing. Just was never going to be the same. No interesting question. And i was already in bald in media the media arts. I tell people. I fell three stories to get into advertising. Which is kinda true however was already in advertising already in media and one of the things that change my direction was the fact that because i fell it prompted me to learn a new skill and learn a new approach to playing music so i started recording. I started doing recordings for film. I did music for some indie films. I learned how to perform and do dj work and actually performed. I started a multiple communities. Around that i performed in houston as a dub step artist in and now i'm starting my third career in music as working on the ios platform. In doing that as part my creative outlet as i continued to develop the livestreaming approach the working on with fire broadcast and for the listeners out there that can't see the video russ has a beard a lot like the top guys. So i'm picturing this guy spinning through the air with the qatar his hand falling off the billboard. And i'm asking myself wait a minute. What were you doing on top of a billboard. Anyway i was. Actually i was actually working. If you recall andrew you may recall the the downfall and housing market around eighty five and how that impacted the industries. And i just recently moved to seattle and one of the jobs that i acquired was as a bill poster which installs outdoor advertising so as a result of being on a job and looking for music. Play in places to play in bands to create and explore. I actually ended up in portland. And i was on a billboard and it was a cold day and and all of a sudden i was cleaning off this billboard in advertently fell and as i fell down i grabbed a hold of this latter on the way down and broke. Eight rungs of this looming ladder and started a new journey for me and one of the things that i learned from that journey was it. We have to reflect on what we have in what we can do with what we have and take what happens to us in appreciate the fact that we're still here it's like i wake up with gratitude every single day andrew and i really enjoy it and i thrive on helping others enjoy it as well so for the listeners out there you know that dream yeah occasionally have you falling off of us. Something will russ actually look at one last question before we get into the question of the day. Tell the audience a little bit about what you do as far as you know streaming podcasting in this whole world and how they can follow you absolutely thank you i host. The pyre broadcast five days a week every single morning on multiple platforms seven. Am arizona time. And i also operate in run the pirates syndicate that has multiple producers people that can help and build your show livestream your content create live events and activities around that subject and it's a result of that that fall so many years ago that allowed me to create explore and generate this thing and so the so the worst investment is the one that you don't take the time that you don't invest in in what you're doing and the result and the investment. Take what you have use it to your advantage. Learn what you can help others add value and continue to grow as an individual in this day and age. So maybe before we get into the question. I got more questions. Because i'm so interested in what you're doing and let's maybe we could use myself as little case study because i know a lot of my listeners. They have something to say now. These days we've got clubhouse that's come on the scene where you have audio. I've done a little bit of that. Have been playing around with that to try to understand that and one of the benefits of clubhouses it. The audience is there. You just gotta bring something interesting to that audience. And i know that's one of the hardest parts of media is getting the audience but i'm just curious like for instance. I've thought about getting up every morning. Which i get up very early reviewing the news of the day thinking about. What's what's happening around the world. How that's going to impact asia. Where i am and then look at markets other things commodities inflation. All that maybe talked for awhile about those topics. What would be your if i came to you. What would be your process. Advice thoughts on that will after interviewing over three hundred interesting people doing interesting things one of the topics i love to talk about. Is exactly what you're doing. Andrew you're interviewing people and listening to stories and what i would really like to share with individuals is a story that brings a lesson to life how you can actually use tragedy and use that as fuel for your future. You know if you don't become a victim and you don't allow yourself to be stuck in the same location that you are invest in yourself invest in time you know the worst investment that i ever made was spending too much time on the wrong subjects on the wrong people and the wrong skill. Set something that. I didn't really enjoy and i didn't really thrive in soon as i let it go. Their doors closed doors. Open so anything you can do in your life that allows you the opportunity to grow a new skill and create abundance your life in terms of how you spend your day and how you enjoy. Life is is an investment worth living right. Well now it's time to share your worst investment. Ever since no one ever goes into their worst investment thinking it will be tell us a bit about circumstance leading up to it and then tell us your story. Thank you andrew. I really appreciate that. My worst investment was staying too long in a corporate job that proved to be less than enjoyable. I invested fifteen years in organization. That i thought was really an amazing organization and grew my skills invested a lot of time at the cost of my family in the cost of my health. The cost of my time and what ended up being one of the pivotal moments in my life. That changed and shifted again was the fact that the company mergers and acquisitions went out. My job was no longer necessary or needed. And i was disposable and because i hit invested so much of my life in my identity in that position when it ended it was a tragic change in my life lifestyle and everything in it took me a while to recover from it and just like the fall. The first time. That got me into that position. I had to take up. Pick myself up. Recover go through recovery. Come back in full swing and continued to work in out adventure so my advice for everyone out there that is thinking about. Should i change my job. Should i think about doing something else. Learn skill that you have some interest in go explore and understand some of the things that you might be interested in learn about them. Learn a craft play music. Talk to other people join a community learn. What brings you joy and gratitude in the day. Something that as a musician. I used to play for hours and hours and hours and lose track of time and those are the kinds of tasks that you can actually generate and enjoy and learn from so be cautious about how you spend your time investing in other people other people's dreams when you need to work on your own dreams. Can you remember the day or the time that you've got the message or that your first day that you left the job you now out of work. What were the feelings that you felt at the time to feelings i felt devastated and i felt relief and the reason. I say that andrew is because the relief was from the process of i was exhausted. I'd invested so much time and effort and energy that. I wasn't sure that i had i was actually suicidal at that point and so it was a gift to me and a curse at the same time week later i ended up getting divorced as well. So that's a different story in a different investment. However the time that i invested in this organization was attached to my identity. Which is the real story behind. The the message's make sure that you have your own identity and make sure that you utilize the skills in the gifts that you bring because i believe that everyone has a gift. Everyone has a message and has an opportunity to share that value at the world. And when you find those identities and you find those things that bring you joy and you want to share it. That's something that everyone has the opportunity to do to bring to the world. I'm reminded of that song by thing. It was maybe soundgarden where the guy says what you wanted to be. Yours has made it mine and it's like the harder that you cling to something like. I got this job and i'm giving everything and actually you're losing something from that so and also you know. I appreciate your discussion about suicidal thoughts. Because i think a lot of the listeners out there have either friends or relatives that are really struggling or themselves are struggling. I know for myself. A lot of people see me as a very positive person but there have been times during this crisis right. Now that we've gone through where i literally have been kind of knocked to my knees and to just ask for help and so it's a good reminder that everybody that sometimes life gets so heavy that you do need to ask for help so i think that that's an important message out of that. So maybe you could talk to us about. What did you learn from this. Let's just list out the main learnings because there's a lot of people out there that are just losing their job or maybe just really investing themselves in their company thinking it's the right thing and they need to hear what you have the same absolutely andrew. We live in the most amazing time in the world right now where just as an example you and i are on screen having an interview creating a podcast for two sides of the planet a few short years ago. This was not even possible. Let alone something that we would consider doing every day yet. You and i are both doing this every day. We're adding value to the world. We're sharing stories that people can think about reflect on grow from so my advice to anyone is always wake up with gratitude. learn a skill. Create something about value every day and help someone in your life maintaining your community your integrity and be okay with who you are where you are. Because it's only this moment in time as you go forward and create something new you become something. New or maybe. I'll summarize a few things that i take away from that i think the first thing is. I remember when. I moved to thailand in nineteen ninety. Two the way we communicated what's through letters and there really wasn't any easy way to do anything except letters. Eventually i can remember. Maybe it was nineteen ninety four. I got a mobile phone and it was a huge device and it was extremely expensive to call my parents. So if i could have one call every three to six months. That would be my treat. Of course we also use landlines for that. But i remember getting that mobile phone in late. Nineteen ninety four ninety. Five so yeah. It's amazing what we can do right now and for the listeners out there. That's the challenge. You got the tools. You got the tools right here. What are you going to do about him. And i think the other thing that i want to highlight is you mentioned about skills. Crafts community joy helping others. These are really great things. But i want to hone in on one and this one that i think is most important in my opinion. And that is you gotta build a skill and that skills gotta be something outside of work yet may help you at work. But it's gotta be something that's marketable outside of that job and that's could be facebook ads. Skill could be xl modeling. That's go could be writing. That skill could be talking. It's doesn't matter what the skills it could be art but you've got focus in. I think that's where a lot of people end up particularly in the corporate world. Basically you're just doing tasks and with so many tasks you actually end up with. Non a huge amount of marketable skills so my advice based on what i've learned from you is all the listeners. Think about what is that thing you want to learn to learn how to program in python the point is it's all available to learn if you just even devoted a couple of hours every weekend or a couple of hours throughout the week in a very short time about a time you could get a skill and the reality is most people aren't doing that and therefore you can secure future income and future happiness by doing that so that would be kind of my biggest takeaway. Anything you add that. No you're spot on andrew and the diversity in your skills allow you to decide what you enjoy it. You know because there are a lot of things you think you want and then once you get them. There may not necessarily be what you want. The dream may turn into a nightmare so learn what you enjoy an increase in improve that skill every day like you said that is a transferrable skill that you can use in the future almost anywhere nowadays and it's just it's amazing what you can learn and the things that are opening doors people right now and is a credible adventure and so you know. I remember when i was out of high school. I didn't have any money in my parents had basically said to me. They spent my college tuition on my drug. Rehab and i really did exhaust. All of their all they by going through three different rehabs so when i was eighteen there were like all right time to make it on your own and so i went out into this big world and i thought to myself i can do this. I don't even need education. I'm a smart guy. I can figure this out. And i got a job in sales working for a company trying to sell stuff and you know it was so hard and eventually you know and they were paying me a draw being. I had to basically when the payday would come just meant that they. I'm just paying back the money. They paid me. And and then at the last moment after i got one of the big sales they basically refused to pay me and as a young guy without any knowledge without any education. I found that what i had could be taken from me. And that's when. I really realized that education is the one thing it's the development of my mind and you cannot take it from me. I think one of the best movies about this is the story of hurricane carter and how. He was falsely found guilty and falsely accused and spent decades of life in prison. And if you watch the movie hurricane which i think it was denzel washington in it. The whole point from his perspective was they can take away everything but they can't take away my mind. I have to protect that. I have to grow that. And that is the way. I feel about whether it's been bombarded with media negative news and all that this mine mine is my territory and i wanna protect and grow it and nobody can take away what i accumulate in that mine except for time eventually old man time will come and take me but you know until then we call it wisdom and the reality is we have an opportunity every single day to improve who we were yesterday if you take that mindset and you take that attitude in say okay rather than doing something that's going to spend my time and start investing in my time you know. It's the same with health. It's the same with knowledge. It's the same with anything that you look at. If you're investing in yourself in this way it's something that's gonna carry you forward something that you can't you know it's not gonna you're not gonna lose it. It can't get stolen from you and realistically it's it's an area that you can actually thrive in and grow from and with youtube and all of the educational opportunities that are out there. Learning a new skill is very easy. One of the challenge the andrew. And i just want to caution people about this is there's so many opportunities out there that a lot of people get overwhelmed by that so find a community ask questions and get some answers from people that have been there done that and understand where the roadblocks are and where the the potholes are and the things that could disrupt your learning experience and then also be patient with yourself because we all started out the same place in the musicians and the artists and everything that you look up to started out at zero everyone starts out a zero so we all born crawling so give yourself some patients yup so based upon what you learned from this story and what you continue to learn. What one action would you recommend on this mistake to avoid suffering the same fate pay attention. Let's it attention it's critical. What's going on around you what you're doing pay attention last question. What's your number one goal for the next twelve months. My number one goal andrew is to grow the pirates syndicate and help over one hundred people produce their own shows their own events and their own activities to be seen be heard in be talked about. That's awesome and for the listeners. Out there just go to the show notes and you can get in touch with russ and i'll have all the links. Why don't you work with him to get your voice out in this will all right listeners. There you have it another story of loss to keep you winning. Remember to reduce risk in your life. Go to my worst. Investment ever dot com right now to download my risk reduction checklist to see how you measure up as we conclude russ i want to thank you again for coming on the show on behalf of a starts academy i hereby award you alumni status for attorney worst investment. Ever into your best teaching moment. Do you have any parting words for the audience. Kindnesses kool smiles are free. And you enjoy the day beautiful. That's a wrap on another great story to help us create grow and protect our well fellow. Risk-takers this is your worst podcast host. Andrew stotz saying. I'll see you on the upside.
Diversification: The Best Insurance Against any Investment Burst with Joachim Klement
"Mid ninety eight I bought into mutual fund, basically focusing on technology stocks globally, and it was fantastic. I mean, let me tell you business was growing great. My investments were going great. It was like one and a half years of the best roller coaster ever, the older ones of your listeners might remember March two thousands of the peak of the tech bubble. So my investments started to go down and everything started to go haywire really quickly and really fast. Hello, fellow takers. And welcome to my worst investment ever stories of loss to keep you winning in our community. We know that to win in investing. You must take risk but to win big you've got to reduce it. My name's Andrew Stotz from ace Stotts investment research. And I'm here with our featured guest Joe Clement, Joe. Are you ready to rock? Hell, yeah. Let's get this thing on the road. Yeah. All right. We were just talking before the interview about we are rockers. So let's get this thing rocket. Let me introduce you to the audience, and then you can add on a little bit too that. All right, Joe Clement is head of investment research at Dante partners in his role. He focuses on research on listed investment companies and investment teams in alternative asset classes before joining Dante partners. Joe was head of the Matic research at Credit Suisse private bind. And chief investment officer of Weller Schoff and partners. It's which is a Swiss based investment consulting firm in these roles. He worked with private banks and institutional investors on investment opportunities across all asset class in ladies and gentlemen, listen carefully to this in a previous incarnation. Joe was a physicist and worked in the IT industry at the height of the tech bubble before switching into finance. Joe? Take a minute fill in any further tidbits about your life. Just mentioned I was working in the bubble end tech industry at the height of the tech bubble then switched into finance in two thousand free, which is why my friends always asked me not to switch industry again. Because a couple of years laid it all breaks down. Totally that's kind of my experience base of being into tech industry in the late nineties can't today. It looks to some looks somewhat familiar to be honest with the tech boom that we're having at the moment and the Fank stocks going through the roof, obviously, not the last couple of weeks. But I you've been pretty happy for the last couple of years if you were invested in bed. We always remember the history doesn't repeat itself, but it rhymes. So if you're looking for an exact replica will know, this isn't the exact same thing. That's exactly what you should be obscene. Is that it's not exactly the same. It'll be different in some way. But it will be painful when it comes. So now, it's time to show your worst investment ever. And since no one goes into their worst investment thinking, it will be tell us a bit about the circumstances leading up to it. And then tell us your story my worst investment ever dates back to those days of the tech bubble in the late nineties. So I was basically straight out of university started working for his tech company that was a spin off from my alma mater, a was a an internet job boards. Like, you have so many these days, but in the mid nineties that was kind of a pioneering business model, and we did really well, I mean, it was great fun working there. Great start of atmosphere. I think was going. Well. Well, we were we were making money so fast. We couldn't really invest it. And and so eventually when I came around to to thinking okay now, but some savings here. It's the first savings came out of university pretty broke first investments what I'm gonna do. Well, I know the IT industry so what what better than to to invest in tech fund. So in ninety eight I don't remember what it was some autumn, but it was pretty much mid ninety eight I bought into mutual funds, basically focusing on technology stocks globally, and it was fantastic. I mean, let me tell you business was growing great. My investments were going great. It was like one and a half years of the best roller coaster ever. You couldn't do anything wrong. And along comes March two thousand in the business our clients stopped advertising with us pretty much from one month to the next literally is like eight thousand ninety percent drop in advertising revenue from. One month to the next, and as you might remember as the older ones of your listeners might remember March two thousand was also the peak of the tech bubble. So my investments started to go down and everything started to go haywire really quickly and really fast long story short the business still exists only because as I mentioned we will make money so fast. We couldn't invest it. Which was our saving grace on the on the business side because we were having so much cash that it got us through the next two years until things kind of recovered again. But my personal investments didn't recover. I was busy running the business and investments went down and down and down and then up a little bit. And then down down down down down cut a long story short in late two thousand to the mutual fund company that ran the fund close to fund at an eighty five percent loss for me. I would still probably still have that fun close than if I wasn't forced out to sell it. In the meantime. Got more and more interested in investments, and in finance, and that's when I switched into fines industry, just to repeat the entire experience five year later. Okay. Let's let's take this. There's a lot of things I've written down that I wanna talk about. But let's have you wrap up. Basically, tell us what lessons did you learn from this experience. Well, there are two lessons that I took away from it. The number one lesson is that the attornal wisdom of everybody who saves for retirement slash is investing not to make the mistake that just because you work in an industry that you think you know, what's going on. I have been working in in private wealth for loss fifteen years, or so, and I've seen that so often at people who make their money and informa- suit tickles think they know everything about healthcare industry and people who make their their wealth in in IT think they know everything about technology, etc. Etc. Nothing could be further from the truth. Oftentimes, the business that you're working in or your your professional experience. Taints your view to be overly optimistic. About that industry. And if that kind of makes you invest into that industry, you're just putting all the eggs into same basket, which is going to hurt you the moment things go go south. So that's number one number two is Mike experience that had that I've made since then because over the last almost twenty years now, I've been extinct credibly hesitant to invest in technology stocks. I mean, it was a classic snake bite. You know, as I investment, you're super proud. And then you suck big time. I just kind of had always am skeptical ever since about technology stocks. So it kind of led to succeed mistakes. For example. I did not invest in Amazon. I did not invest in Facebook. I didn't buy any of those high flying tech stocks off the moment. Just because I I am very reluctant to invest in technology ever since the to take away from that. I didn't go fantastic. Now. Let me just go through a few things. That I take away from it. In addition to those let me know if I missed anything, it's it's also it's kind of important to talk for a moment about your first investment because it's a little bit like your first girlfriend. You don't really know what you're doing? But you know. Yes. Other people in you think you know, what you're doing? But in fact, you don't know it all, but you know, that everybody else is doing it. So and I think with the first investment what I've heard a lot of stories of people that hey, I'm grown up. I'm out of school and making money. Now, it's time people say something that they like to say is make your mistakes when you're young and in one of my books, I wrote called how to start building your wealth invest in the stock market. I say don't make mistakes when you're young why. Because I was just doing a calculation the other day to explain to somebody that one dollar that you put into stock market when you're twenty is actually equal to three free dollars right on the table in today's dollars. It will actually be six or seven thirty forty years from now. And so you you're just missing that free money. So from that perspective, you do wanna be investing. But what ends up happening is if people don't know much about investing in the night dive in and it's just like driving a car without a seatbelt on. And most people will lose a lot in there, I investment, and then that can taint them in what we have to. Also, remember is that bias that you described you get burnt one time by either the stock market or particular industry, a particular stock, and you never touch it again. But actually, the stock market the industry or that particularly stock doesn't care about you. And it just could be that you just bought it at the wrong time. So we have to also be willing to go back to the market. And I think that's another thing that I would say the other thing it's interesting about this because there's people listening to this podcast listening to pitches from tech firms, and what those tech firms, we're diversify our revenue. Streams are coming from many many. Different customers, many many different industries, and I bet if I was an investor visiting your company at that time, and you would have told him we're diversify. We've got many many many different customers from different industries. But yet you just told us that revenue drop from one month the next by as much as eighty percent at the time sounds, absolutely true. To be perfectly honest. Yes, we had customers from different industries, but they were all looking for the same kind of guide. They were all looking for engineers or technicians. The moment the recession started to hit people cut back on their investments in in the business world, and that meant more jobs for these guys we were supplier, and we were highly leveraged towards that exposure. It's kind of the the story that you see time and again repeat in market. We had that as a set a couple of years later with the housing market and the housing crisis people were saying, yeah, this these houses are all over the country, and it's well diversified is not just in the east. It's in the west. It's everywhere. Yeah. Well, house prices started to drop everywhere at the same time. All of a sudden, all your diversification isn't read ever since you -cation. This is the the lesson that I have taken away from it. And why I am with my investments always trying to make sure that I have real exposure to two very different fundamentally conomic drivers in my investment. So that aims not just different industries. But literally, very different business models. Very different things. Be it real estate. Be it infrastructure bid equities B bonds because they're all exposed to, you know, interest rates economic side colds, but also very different things. That's a great lesson about diversification. You know, over many years when I started in the world of finance we talked about diversifying by owning stocks and bonds, but nowadays, they also talk about diversifying by factors such as oil price. Well, you may own a company in. The oil industry, that's positively correlated with the the price of oil end. You may own another company in a whole nother industry. That's also positively correlated. So you don't actually realize it. But you're doubly invested in oil price has an example. So that's a great lesson about the concept of not just asset classes, but factors, and whether it's interest rates or in oil prices, or you can only other way around by saying, okay, I'm invested in oil companies if I want to diversify which kind of companies benefit from low oil prices, and you end up with retailers supermarkets who have to transport a lot of their goods to the different markets or you end up with a food companies because the packaging is very expensive there in it's usually made out of plastic. So they tend to do well when all prices go down and that gives you kind of a natural diversification to your company. So that in that particular case of listener that doesn't understand how that would work. It would mean that look I'm not going to do my complete bet. My life. On just oil going up. I'm going to bet apart on oil going down. And therefore, I'm gonna have some sort of net long position in oil buts. I'm gonna have a short position in the sense that if it goes down, I'm going to own some stocks that would benefit from that. Is that what you're saying? Absolutely. I mean diversification means that you always have some stocks that do well. And it always means that also, unfortunately that you have some stocks, you absolutely hate. So I'm gonna just tap touch into one last thing, and then we're going to wrap this up. But there's three words that I like to say all the time, and that is create grow and protect your wealth. And why I say those three I've thought carefully for a long time about those three words in y say those that is when you're working in the internet company that's making lots of cash, you are creating wealth when you're in the stock market, I always advise people to not think of the stock market is a place that you're gonna create wealth. It's a place that you're gonna grow wealth. And then the third point is protect wealth, and one of the things that I see I heard from your story. But I hear it a lot from a lot of people. And I know it's true within the financial industry from all the different people. I've worked with is that everybody's busy. So you end up spending so much time, creating your wealth that you just don't have time to keep on top of the investments that you're trying to grow your wealth. And. I've seen so many cases of people that have ended up suffering because they weren't able to devote the time to grow their wealth in the solution in that case for most people is probably to go with something highly diversified, keep contributing to it over time and just let it grow. But the mistake that many people will make is they wanna get into a fancy idea. But they they don't realize just don't have time to keep on top of that idea. No, absolutely. Agreed. You mentioned also the the work protection. Protect your wealth, preserve your wealth. And I've in my career seen so many people who created a vast amounts of wealth because we're successful business owner successful entrepreneurs, and they created wealth by putting all their eggs into same basket because if you wanna create wealth diversification is not the best way to do it. But if you wanna stay rich, or if you wanna protect your wealth than proper diversification really is the way forward because. 'cause you as you mentioned, you we are busy. We we have a professional career. We have things to do even if you live into a work into financial industry, you usually are busy dealing with your clients and taking care of their needs not of your own portfolio. So that's why in my case, I invest broadly diversified these days because I know I've got maybe once a year to actually look at the stuff, and and what's going on there because the other pre-owned sixty four days of the year. I'm super busy with everything we have clients to take care of. So all right. So based on what you've learned from this story, and what you continue. Learn what one action would you recommend our listeners take to avoid suffering the same fate. I would say look at your own history. Look at your own experiences and learn from these experiences one thing that I've introduced in my life is basically since that first experience was to have an investment diary, where I know down just kind of free quick bullet. Points for every investment decision. I make whether advise something or would I sell something or even sometimes if I consider buying something and don't do it. I just note down what is investment case? Why should it work one bullet point what could possibly go wrong on a famous loss words, and then deferred one? Obviously, what did you actually do? Then once a year, I go back and just review all my entries in my investment, diary fraud the year and assess what kind of mistakes did I make why did it go? Well, and was it luck. Was it skill and trying to be brutally honest with myself in order to kind of find patterns of my behavior and one of the patterns, I found is that I'm reluctant to invest in technology. Just because of that experience that I made when I was very young. So I now try to actively overcome that bias that I've discovered foodies investment diaries. And that hopefully makes me better investor overtime. Well, you're the first person to propose an investment diary. And I think this is a very great actionable piece of advice for the listeners to today. Get on a piece of paper, you may not even have a perfect. Nice diary. But yeah, get yourself a little diary. But if you don't have a diary, you've got a piece of paper and a pen start today. This is great advice. I won't ask for Joe to share a picture of his when he looked at Amazon he said this company's never gonna make money. I'm not gonna invest in that we won't ask for that. But we get the idea, and so all right listeners there, you have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help you reduce your risk. Visit my worst investment ever dot com. And as we wrap up Joe thank you again for coming on the show. I know it's painful talking about are losers. But our listeners are learning to win as a result. Do you have any parting words for our audience? Yeah. Keep investing. That's a simpler. That don't get thrown off. Just because you had some loses yet some bad mistakes in your pass. That's what we're here to to learn from all of us, and we get better everyday, lots of gold nuggets in this particular episode. That's a wrap on another great story. The help us create grow and protect our wealth, fellow risk-takers. I'll see you on the upside.
Josiah Smelser Push Through When Everything Goes Wrong
"Since we have this property. That's just sucking money out of our business. We can't go and do other deals, and that's the greatest loss of this whole thing was the opportunity costs. This property was nuisance. We're having problems constantly that was eating up our time. It was eating up our investment capital. We thought at one point we're going to have this thing for a year to who knows how long we're gonna have this. We can't get rid of it. And we have to keep making these payments. Low fellow risk-takers in welcome to my worst investment ever stories of loss to keep you winning in our community. We know that to win an investing you must take risks. But the win big you've got to reduce it. My name is Andrew Stotz from a stance investment research. And I'm here with featured guest, Joe cya smeltzer Joe science. Are you ready to rock? I was born rock Andrew O. Oh, yeah. Got that in common. All right. Well, let me introduce you to the audience. Joe cya smeltzer is the current podcast host of the daily real estate investor podcast show on a cheating financial freedom through real estate investing. Listen up, folks. It's a good one. Joe I runs his own appraisal business, and is also a licensed real estate agent and runs his own investment property business along with a partner Joseph is currently a licensed, certified general appraiser and spent time working for companies such a CB Richard Ellis has a commercial razor in his past. He was also formerly a finance professor at the university level for several years where he taught some finance courses, including real-estate Joseph has an MBA from the university of North Carolina's in his currently writing a book watch out for this one to the daily real estate investor. So stay on the lookout for that his happily married has three children and currently lives in Huntsville, Alabama, decide take a minute and Phil. Any further tidbits about your life bad? Thanks for the intro. I'm I'm really excited to be here. Andrew, I appreciate you. You having me on? I'm honored. Then interesting tidbits that would that covered. A lot of it. My family just over the last week four out of the five of us had the flu. So that's been a lot of fun, man. There's all kinds of interesting stuff when I was twelve years old, my parents, moved this to Tanzania east Africa where I got malaria. So there's there's an interesting one on everybody's had malaria. We we owned a pet baboon at that point. So there's all kinds of interesting stuff Iran, a hiking company doing a mount Kilimanjaro hikes at one point. So I've I've dabbled in a lot of different entrepreneurial things, but I'm excited to share one of my my losers today on this show, and I had a hard time figuring out which one I was going to share. I enjoy episodes of your show that I've listened to and I'm gonna share one and the real estate realm, but also had some in the stock room. So you may want to have me back on again for another. I'm excited about this, man. Let's have some fun. And so now, it's time to share your worst investment ever. And since no one goes into their worst investment thinking, it will be tell us a bit about your circumstances leading up to it. And then tell us your story. Okay. So I'm going to share an investment that was a flip a business partner, and I were working together. While I was I was a college professor, teaching some finance courses. I was doing this full time for a launched out and started my own business. My current business partner, and I were kind of investing together long distance and we decided to to kind of do this fulltime. So I stepped away from the teaching thing. And we decided we're going to try to Gail a portfolio of buying hold Reynolds. And we had some investment capital that was our seed money. And we decided, you know, we we we're going to deplete the seed money if we just put money in each project. Eventually, our money's gonna be gone. So we're gonna start flipping houses. To create new seed money for our business. So that leads us to one of our flips that I'm going to share, and you know. Full disclosure. A number of my flips have gone really well. And it's been a good experience for me overall. This one was my worst experience I made a number of mistakes that I think the listeners will really benefit from. So we'll go ahead and dive into this one. So this property was a for a Bank foreclosure made a number of offers on it, and I'm an appraiser. So I pulled comps, and I was fairly kind of the range of what I thought it would sell for I did notice in the comparable sales that the days on the market in this specific area were about ninety days. In other words, from the second the property goes up for sale till the property is closed on the sale not just goes under contract, but it's closed. It was taking three months to sell the property which is a bit long when you're flipping houses you like to you like to unload them as fast as you can, you know? But so that's that's three month holding period there. I don't feel like I've paid enough attention to the days on the market in the area. We were mistake. I made on the front end was this subdivision. It was a great subdivision had good schools. It wasn't in the center of the city of Huntsville, it was on the outside. It wasn't directly next to a lot of amenities. But we made an offer on this property. The Bank did not accept the property earn. The Bank did not accept the offer on the property. And so we waited the Bank lowered the price we met another offer. They rejected our offer back and forth on this the property set on the market for maybe a month. We made probably our third or fourth offer the Bank finally accepted. We're we're excited because we feel like there's a lot of margin in this thing we go walk through the property with our contractor. Okay, we didn't get a property inspection. And that's gonna come back to bite us later, as you can guess we walked to the property with our contractor get an idea of what our repairs are going to be we're happy we feel like we're going to be able to make the money on this thing. We wanna make probably about a week before about to close. I go back over the property. And when I walk in this should have been the first hand that this was going to be a massive loser for us. But when I walk in. I look I look to my left. Until the little half bath downstairs, and there's water streaming through the ceiling. There's nobody at the property. The property is empty, you know, so it's water-pouring through the ceiling, and so I come business partner. And I say, hey, was there anybody of you're working on the property is like, no, I said, well, there's just water pouring through the ceiling all over the house. I mean, it's you know, it's ruining the ceiling. Who knows it's probably down in the walls in who knows what kind of damage this has done. So we are running out and turn the water off at the street. Okay. So I call the call the foreclosed the the Bank and tell them. Hey, this foreclosure, you guys own has got water, you know, going who knows where I turn the water off for you. We want to back out of this deal, and they're like, okay. And I said or you guys could fix this. When they say, we're not going to start repairing this property. You can go ahead and back out and will will address the issues then. So he backed out we felt pretty good about that. They lower the price two or three more times. And we make another offer like we could fix the water issue. Okay. So they said we ended up getting the property for probably twenty five thousand dollars. The less than we initially were under contract for which is a major blessing. We know how the story ends get the property under contract ended up closing on the property. We didn't get a termite letter because the Bank when they sell foreclosures don't give a termite letter. And what a termite letter does for you is basically a company will come out and look to see if there's been termite damage there's active termites in the property, and they'll give you a letter of clearance. So we didn't have anybody check for termites. So we we close on the property. We get out there. We start demoing the property doing some of our work. And we find out there's been termite damage. So our estimate now goes up, there's not active termites in the property. But there's been a lot of damage to a lot of the structural part of of the home that we're gonna now have to replace so adds to the cost of our repairs. We also start noticing some holes in the backyard like what is this? This is. So would never seen this. I've never I I do home appraisals and I've been in. Hundreds of our surprise as thousands of homes at this point. I've never seen this in any property. I've been to what is causing these holes in the backyard, we hire a the pest control to come out and say, you know, what's causing these holes. And they say you have an Armadillo infestation in the back of your yard. We're like infestation was that mean, they're like there's lots of armadillos out here, and they're tearing your yard up there digging holes they're ruining our there were ruining our yard. I mean, holes everywhere just appearing everywhere, you you'd walk on the backyard your foot would just sink down on the ground. We're like what is this you serious? So the guy comes out and sets Armadillo traps everywhere in on a regular basis when we show up to the house. There's there's these massive armadillos these traps like how how big are these things. I mean, these are like Charles Barkley size armadillos. Now, I couldn't believe it. Let's just put it that way. And so that's control company is taking these Armagh dillas out to the woods miles away. And letting these things go, and I'm like what are the chances? These things are going to show up at our out. So so there's the Armadillo thing which is like what what is this? This, you know, so we get the Armadillo problem taking care of then we find out that there is that there is rotten wood around a lot of the windows that we didn't catch on the front end during our walk through member. We didn't get an inspection. We just walk through with our contractor. So now, we find out that we're going to have to replace half the windows in the house with windows are really really expensive. And this is a this is a larger home. So our costs on our repairs have gone up astronomically just to this point. We kind of start thinking, okay, we're going to have to this is this is we're just going to try to have to break even on this thing like our margin as quickly eroding, and this is increasing not only the cost of the project, but holding costs which is something when you're flipping houses, you really gotta pay attention to the holding costs. And what goes into holding cost is not just not just your financing. You gotta think when you buy a home to flip. You're looking at closing costs on the project. Let's say you buy a home for one hundred thousand dollars year, and a flip your closing costs on that may be five thousand bucks. Then you got your financing costs for the. Hundred thousand which you're paying monthly and those are typically interest only you got closing costs on the back. A back end. You're going to have to pay costs to sell the property, which took withers agent fees closing costs of the title companies. There's all that not only that. But you're also on the hook for paying taxes while you on the property. So, you know, if you estimate three months holding period for your property, and it turns into six months, you're holding Costco tremendously which kills your profit margin on a flip. So a lot of novice flippers don't properly estimate they're holding costs. And that's something that we definitely underestimated on this that caused us a lot of problems the project ends up taking a one month longer on the renovation side than we anticipated. We list the property for sale, and it just sits. And we're like why are we not getting the traffic on this that we should we feel like the market's pretty hot? And so I start really digging into the comparable sales. And I started noticing that the properties in this area. Just don't move as fast not come back to this ninety to one hundred day days on the market that was in these comparables. I didn't pay. Attention to that. Because I thought you know, if we fix this property up in it looks great, and it did the property looked awesome overdone with. But I thought if we fix this thing up, and we price it, right? It should move pretty fast. But we come to find out there. One is many buyers in that area. Didn't matter how great the property look there just weren't a lot of people looking for properties out there because the property was not in the middle of the city. It wasn't in a great location. Amenity wise, it was kind of out. And so we just didn't have as many buyers to sell the home too. So we listen to the property and it set we lowered the price lower the price. I get a client that calls me and said, this is the house reme-. I'm so excited about this. It's a Sunday afternoon. I'm home I wanted to watch football. And this lady says, can you please come show this house to me? I'm pretty sure I want to buy this on. I'm like, yeah. Yeah. I'll definitely show it to you. I could get double commission on this thing. We could we might actually make some profit on this. If I'm able to sell this to her because I could wave my commissions, and we would still make money on the deal so drive out there and went on pull up to the home. There is a sea of Hornets. Swarming the front yard. Yes hornets. Like, what is this that jump out? And I'm like never in my entire life. Have I seen anything? I felt like it was like the plagues, you know, in the children of Israel. What the plagues coming down on them in the Old Testament is like what is going on here. We've already had an Armadillo infestation. We got termite problems but water coming through the ceiling. Now, we've got Hornets warming the front yard in on top of that. I couldn't even figure out where they were coming from. There was no nest in trees, there's no large trees in the front yard. So I start walking through the front yard. And I'm looking for holes in the ground. I came in find it. So I'll go up and unlock the front door. These people pull up in the lady steps out of the car, and it's just like Hornets bumping into her leg. I mean, it I'm like just trying to distract like you'll come on him. And you know, so the first impression this lady has this. This is a hornet infested house. You know, so she likes the house. But decides of course, that she doesn't want to buy this naturally. So I call my business partner, and I'm like we have a horrid infestation. Now, get the pest control guy. Is back out. Here pest control guys come out are Hornets in the ground or in their tree, or I can't remember sorry and these Hornets were in the ground they were ground Hornets. And I think the armadillos had been eating the Hornets, and we had taken armadillos away. I tell you what. So the pest control company comes out and knocks down the hornet the Hornets nest up in the corners of the home. Does it do anything about the ground Hornets leaves suck comeback in? It's worse. And so the guy this moment, our grass I'm out there with him and he's driving around on his lawnmower and these Hornets are chasing him the whole time. And it's just this hysterical in my mind. I can still see it it. Well, he says man, I'm gonna go get some gasoline and just dump it down this hornet hole. And he said I'll take care of the Hornets for. So he goes and gets them gasoline. Dumps it down this this ornate nest hole and the Hornets are gone or he he didn't kill him. He he ran them off. So anyway, that's just a little side story on this. But this this property, I'm telling you is just the most insane. This the number of things that happened on this. So we finally get rid of the Hornets. Okay. We had installed. Brand new air conditioning. I go to the backyard and there's water pouring out from under the air conditioning. And I'm like, this is brand new how how is this possible? And we get our h we get our HVAC guy out there, and he says air conditioners, fine. It's the faucet directly behind the air conditioner is come off the house and is now spewing water out into the air conditioner and under. So we get that we finally get that fixed. Once we got the AC fixed. We noticed when we pull up to the house that a window on the garage is up is somebody's been in our house trying to steal stuff or what's going on here. And this is not really nice neighborhood. So lower the window down. I come back the next day, the windows up again, and I'm like this window is what is going on with this. So lower the window again for everyday from then on when we show up at the property. The window is up. I still don't know why we finally went in there. And stuck a nail on this thing and nail this window to the to the window frame to keep it from popping up. Have no clue why it wasn't on appear in Bain. The the window was not on a pier and beam. It was on the garage, which is concrete slab. I don't know. Why the when it was bought this is this is a Steph, I'm dealing with on his property. So we take care of the window. We lower the price it sits it sits. We finally get an offer. So we're like at this point just elated and by the way during this process where at about month five right now having this property we'd intimate holding this thing no longer than three months wanted to sell it in two months. So we're at month five where like we just got to sell this thing to these people. We have to sell it. We can't let these buyers walkaway they love to house. The house was great look great inside. It just would not stop having problems. It's one of those things. So we go under contract with this group and they start doing their due diligence. They negotiated on the front end that they wanted to have some closing costs. So we're already at a point where we're losing a decent amount of money at this point. They decide to get an inspection done. They get their inspection unaware like bracing for the worst. Right. They send over the. Affection report and have thirty things they've requested for us to fix and keep in mind. We've already got it in flip this we've already gutted this house, redone, everything on this property. So we're like, okay, we're gonna fix all thirty of these items, and it was the most painful thing because usually we're like now, we're not going to do that. We didn't have any other options. Right. They had a corner. So and by the way side note during this process since we couldn't get this property sold. I was talking about the opportunity cost of this since we have this property. That's just sucking money out of our business. We can't go and do other deals, and that's the greatest loss of this whole thing was the opportunity costs. This property was nuisance. We're having problems can constantly that was eating up our time. It was eating up our investment capital. We didn't know we thought we thought at one point. We're going to have this thing for a year to who knows how long we're gonna have this. We can't get rid of it, and we have to keep making these payments. So we stopped buying other properties. And our business model is to buy a property do value. Add to it get it rented out and then refinance it and our business model. Learn flips is by. Renovating get rid of it as fast as we can we try to make a minimum of twenty five thirty thousand dollars profit, we invest that capital back in the investment side will now we're not able to do anymore flips. We're not able to do any more buying hold properties. So this thing is literally just throwing a wrench in the works. And our our entire machine is just completely stalled out because of this property, so we're under contract with these people. We they send over there thirty items we get our guys in there. And they start fixing all thirty these items get all thirty these items fixed or like, we're getting really close man, we're going to close on this. Well, they get their appraiser in there. The appraiser sins over list of fifteen different items than inspector is this is this really possible. So we start looking and their different items that guy has got different things than the inspectors. So we're like, and he says I can't sign off on the appraisal on this property until these things are done because of this certain type of of loan. This this buyers getting so we're like all right? We'll fix a fifteen hundred. You're requesting you know, between those two we'd had to inspections. Okay. We get those items six and then about about a week a week week and a half before closing the buyer wants to do a walk through in check the items that have been fixed. He goes into the property and says and sends us we get a notice from the the buyer's agent saying, hey, there's some new new things that have broken on the house. There's now they said n we want to check the foundation. We haven't done anything to the foundation yet. We're like great. So they get they gonna foundation specialists out there. And they say, hey, there's water under the home. There's water damage under the home. We're like wonderful, you know, and they said, and by the way, there's water dripping down one of the front windows in the house. So we're like, you gotta be kidding me. And they sent us a list of six new items to be fixed. This is inspection. Number three been the foundation inspection was inspection before we get down there and fifty one items thing thirty the fifteen hundred and other sick. Yeah. If this is wearing you imagine what we were going through. Okay. So we finally get we get the the foundation fixed. We get the issue with the window fixed. And we're like, okay. This has got to end, you know, I this point had told my business partner. Look, I'm waving my commission by commissions gone. I'm taking zero so I'm I'm dealing with selling this for not for basically just to get the thing off our plate. So we got those issues fixed. And then I get think maybe three days before closing. I get a text. Message from the agent. Did you know there's a septic tank in the backyard on city water and city sewer and the agent says no it's got a septic tank. And I said are you positive and? We find out this property has a septic tank. We didn't even know about. So she says I want to get an inspector out there to verify that the septic works. And so this inspection number five or like. Okay. Well, we can't say no to that. Well, the inspector comes out and finds that the septic doesn't work two days before closing the septic being dug up and fixed. We get the septic tank fixed. Finally, get the thing buried back in the ground. We've got one or the morning of closing the Bart as a walk through and says, hey, there's these six items that aren't fixed still from the original list? And I'm like, well, they signed off on the list are the first time, but they come back through and say, oh, we've noticed some things that aren't Dr satisfaction. Business partners out of town this point. So I'm like, okay. This thing is closing. It's gonna kill me. So I go over there and fixing the stuff along with the contractors. You know, there's like an hour. I was working in that house. Probably the twenty minutes before closing. I'm still over there on my hands in these scrubbing stuff off the floor. We had a request of fix a fireplace. If we get a fireplace guy over there, they're fixing this gas fireplace, and when they fit when they finish fixing the fireplace. This this is the day of closing the morning of closing while the guy's fixing the fireplace. He decides to vacuum out all all the dirt and dust in and tar and soot and all this stuff out of the fireplace. So I got a I got a text message from contractors saying did you hear what happened? And I said what happened we're about to clo- or closing in six hours all house. He said he said the guy was vacuuming the fireplace out and hit the wrong button, and it shot soot all over your walls. Can you scrub it off and he said they tried? It's going to have to be repainted. Like, are you seriously said they said the guy that was vacuum out? The fireplaces over here painting the walls right now. And I said can you please send your painter over there? And just take care of it for me. Because like we can't we have to have this thing. Looking like it was it has to be fixed. Just at this point. All of our listeners are on the floor right now people who have remained to this law as well. As myself. Their jaws are on the floor. All right. So I'm just getting terrified you about the that the buyer eventually walked away. But let's let's wrap it up. And then we're going to get into what you learn from this. Oh, man. So we got the the walls fixed a walked into the little side bathroom and a guys had tracked the soot into the half bath. And this is like thirty minutes before closing some over there, literally thirty minutes before closing scrubbing the sit off the floors myself. And I get I get the house locked up they signed the closing docs, we signed the closing docs, and like had basic like tears of joy in our eyes. We lost twenty thousand dollars on this, and you like twenty thousand bucks. That's that's not. That's not a big deal. When you consider that we we base. It took six months to get rid of this thing, we basically completely stopped our investment business for probably five months. We we didn't even come close to hitting the goals we had for investment business because we could not sell this property the money. He was just the twenty thousand dollar loss was just a small small portion of this the opportunity cost of being able to buy properties. Refinance get our money back. Go go continue to buy properties with that capital. It turned into a lot more than a twenty thousand dollar loss. It was hundreds of thousands of dollars of loss on top of just the stress of the entire thing. I mean, it was insane. It just would not stop. It wouldn't stop. You know, what I'm saying is just problem after problem after problem, and man, I'm so happy my business partner. And I still to this day. We'll send each other text messages of these two old men laughing. It's a maim of these two old men laughing. And I'm like, we're always like, you know, five months after sale of this property, you know, six months after sale this property, and we still to this day like have tears in her eyes were laughing so hard at this. Because we have never been so excited to lose money and walk away from a deal as we were when we sold this thing. I so let's let's review. What did you learn? I mean, you must have as you look at your experience. Now where you're at. What are the lessons that that you take away from this? Sure, I we made a number of of mistakes one. We just didn't get an inspection on the front end. I would highly recommend getting an inspection this property was it was on the high end of what we were willing to even mess with in hindsight, I won't even mess with flips that are this expensive anymore because as you go up in price on properties, there's fewer and fewer buyers. I mean, it makes sense, right? If you're gonna if you're trying to sell a two million dollar property. You know, there's not a lot of people out there willing to buy that it works the same way with two hundred thousand three hundred thousand four hundred you know, for your market, depending on the the normal average price in your market, the higher up you go the harder it is to sell. So I would say number one. If you're going to flip a house, you know, try to find properties that are kind of in the sweet spot where you have in the largest number of buyers out there for your for your property on the second area remade is factor in what I call just the fudge factor. Basically what I do on all my flips. Now. Now, I figure out my expenses and always conservative on everything. Meaning I try to overestimate on my expenses instead of underestimate. You have a tendency to underestimate when you're new at it. I try to overestimate. And then once I'm done I had on another twenty percent. So if we had done that we would have recognized on this. Hey, we're not going to make enough money at this price. If we buy this price, we're not gonna make enough money. If we had on top of what we had estimated add a twenty percent because that would have taken care of the termite problems foundation problems, the Armadillo infestation the Hornets, the septic, the, you know, it just keeps on going another one. We underestimated the impact of buying something that wasn't located in the middle of the city. We were kind of out from town and the days on the market killed us. Those are some takeaways on flips. I would say try to find something sweet spot. Make sure that after you have your costs that you also add on kind of like a contingency factor or fudge factor there. So you know, you make sure you're not. Underestimating look at the days on the market of of your comparable sales nail that down. And then try to try to ask yourself. Can we turn this around and be out of this realistically be out of this is quickly as we want to be let me say a few things of what I take away from him one of the things which actually applies to all types of business is the concept of inventory turnover in holding inventory, whether that's in a manufacturing company, whether that's in real estate, always try to reduce the amount of inventory, you're holding. And I think you can get lazy about that. You can get not even lazy just kind of forgetting the fact that it it consumes time energy capital, but also inventory, Ken deteriorate in have problems. So the first thing is for for image ways to think about the other one is that I wrote down the word lemon like that was a part of me that just felt like, you know, some things are just really bad luck or just a wrong. Long time and everything, you know. And you're your most honorable guy for just continuing to fix the things in just try everything you could to do that. I think we have to accept. There's a randomness factor in business. And sometimes we are going to get exposed to a client to a project to this that where everything just goes wrong and just like we're going to have somewhere everything just goes. Right. And I'd like, you know, of course, we would like to be able to think that that's due to our diligent and thoughtful research. But there is a a very ability facto or randomness factor that we just have to suck up sometimes and push through. And I think that's a huge lesson that I need the audience can take away of your persistence at just staying at it until you got rid of it. And then the third thing, of course, is the concept of opportunity costs and opportunity costs. Brutal because opportunity costs is not only. Related to financial, but it's also related to the damage that in emotional state can do to you personally to your partnerships to your business deals to your confidence. And so, you know opportunity costs are very very real. And here is a great story to help us understand that anything you'd add to that. I would say you're right on and I would say, you know, opportunity costs aren't just artists monetary in your business deals. Your time is the greatest opportunity cost loss wise, you can bear a in a deal because we have a limited amount of time and Warren buffet talks about that all the time. Your your time is your greatest resource and its limits. It right. So you wanna spend your time. Well, so I would say, you know, when it comes to opportunity cost beat be very diligent about cutting your losses and moving on and continuing persevering, you know, because they don't know workout. But overall, my business partner, very happy with our, you know. The returns we have on our portfolio in what we've experienced this is an example of the risk that we always try to assess and plan for some of them. Like, you're saying there's some randomness to it. Some of them are limits. You can control it sometimes. But you learn you learn from it you learn from your losers big time for the listeners out there. I think you know, this is a great story to understand. Why just I can be a, you know, someone worth listening to on the podcasts and in his own business because he's been through this. So what I want to do? Now is I'm gonna I'm gonna ask you about your last question, which is your number one goal for the next well months. So our business goal is to acquire ten or more ads flowing properties in a high market. And we've decided that we want at this time one to four family properties. We've kind of fixated on Dallas Fort Worth because we believe that that market over the next twenty to twenty five years. Years in good neighborhoods is going to appreciate at around five percent a year and with our strategy of buying renovating. Getting it rented out, and then refinancing and get up getting most of our capital back, right? Able to take control of a property worth two hundred thousand dollars with only about ten thousand dollars for own capital invested in then the tenant pays that property off while that two hundred thousand dollar property appreciates at a high rate and once it's paid off. It's worth far more sort essentially, our ten thousand dollars is turning into maybe a fifty Bagger if it turns into five hundred thousand one day, you got fifty times your money on that didn't include the passive income you're getting so that's our goal. We're trying to trying to take control of or, you know, add to our portfolio ten or more properties this share in good areas. Fantastic. All right listeners. There you have it another story of loss to keep you winning to find more stories like this previous episodes and resources to help you reduce your risk. Visit my worst investment ever. Ver- dot com as we wrap up Josette. Thank you again for coming on the show. I know it's painful talking about are losers. In fact, that one was painful for all of us. Listeners learning to win as a result. We're going to be all thinking about you. We're gonna be thinking about holy crap. Armadillos? The people that are gonna type armadillos into Google to look for picture. All right. Do you have any parting words for our audience of it? It's been awesome. Thank you so much for having me. Yeah. Hope one person can avoid some of the pitfalls that that we that we had on this. And I'll it was great having the opportunity to do this. I really appreciate it. So great having you and for the listeners still be a lot of links and stuff in the show notes. So you can connect and learn more. So that's a wrap on another great story to help us create grow and most importantly, protect our wealth, fellow risk-takers. I'll see you on the upside.