The magazine will focus on providing information to assist single family offices in making real estate investments and feature content from recognized industry
What is the single best investment tip you can give?
We’d divided a family business. I ended with a runt branch and some cash I needed to invest. I imagined wealth. Reality had a few other surprises.
I read some popular finance magazines. Picked out some recommended mutual funds. Thought, “Hey, this is easy. I’ll be rich. Fast.”
I consulted with my dad, a successful businessman. He told me, “Don’t invest in the stock market. You’ll only lose money.”
He was an expert. He’d proven that advice over and over.
As usual, I didn’t listen to him. I called a broker friend to buy.
He did. The market went up. When I read my month end statement I was thrilled.
I thought, “Wow! I’m a genius. Maybe I’ll quit my day job and become a professional.”
About 30 days in the market burped. Then gagged. Then threw up.
My investments cascaded down. My father’s words came back to haunt me. Over and over like a scratched record. Like a few other times while I was growing up.
I called the broker one morning from my office, “Sell! Everything! Now!” I said forcing myself to stay coherent.
“What? Why?” he asked.
“Because I don’t want to lose anymore! I can’t afford it,” I responded.
“It’s just a momentary fluctuation. Ride it out. It’ll be fine.”
“No! Get me out!”
He did. I felt relieved. Bleeding stopped.
A month later the market turned back up. Blew through where I’d bought. Went on to new highs.
I thought, “What a dumb ass I am.” By the way, not the first time I’d thought that.
But I also had a revelation. I still needed to invest the cash. Only this time I was going to educate myself first before leaping.
I know, I know. I’m like a guru.
So I chilled for about a year. Read books, attended seminars and learned to invest in real estate.
Bought a small tract home. Got it rented. Bought another.
Then I learned to invest in stocks as well. Invested some money. Expected to lose it. It went up instead. Kept investing more.
Finally, came to a place I launched my financial consulting practice to do professionally what I’d done personally.
Twenty years later we’ve built a net worth that, frankly, I never really imagined.
Sure I’ve made mistakes along the way. But I learned from them, kept them minimal, didn’t make them twice. Then kept on building.
Oh, and a few times thought, “What a dumb ass I am.” By the way, not the first time I’d thought that.
You’ll build wealth best if you learn before you leap.