Today’s Steveism comes from my first ever newsletter, and is a simple statement to help people differentiate between good and bad investments.
If you only bought deals that made money, you’d have to make money.
In cricket, making runs demonstrates you’re a good batsman, and taking wickets is a sure sign you’re a good bowler. The equivalent sign of success with respect to investing, is making money.
Sometimes bad investments are dressed up to look good on paper. Your ability to identify the suspect assumptions and restate them to determine the likely financial outcome says a lot about your level of investing skill. So too does your ability to accurately monitor your property’s performance and to take corrective action as and when needed, which may also include selling and redeploying the capital elsewhere.
What investments do you own that aren’t making money? Why do you still own them?
One possible reason is that you don’t want to personalise your loss – that is, you aren’t ready to accept that you made a mistake. If that’s the case, then watching this short video will be beneficial:
What’s the worst investment you’ve ever made? Take a moment to share the details here, thus helping others to avoid making the same mistake by posting a comment below.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
