My Worst Investment Ever Podcast

Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. His book The Psychology of Money, was just released and is available here.   “Investing is not like physics where the laws of gravity were the same in Newton’s days, and they are in our days. Investing strategies evolve overtime to get to the point where they don’t work anymore.” Morgan Housel   Worst investment ever One of the first investment books that Morgan read was the Intelligent Investor by Benjamin Graham, written over 50 years ago. The book talks about all these practical strategies that value investors can use to pick stocks. One of them that Graham goes into great detail about is buying stocks for less than the book value. Unpacking Graham’s strategy Graham’s strategy was to calculate what a business is worth. That is its assets minus its liabilities. That gives you the book value of the company. So your goal is to buy stocks that are less than the book value. For instance, if a company is worth a million dollars, and you buy its stock at the point where the company is worth, let’s say $800,000, according to Graham, you are making a good investment because you’re buying the stock for less than the company’s worth. Borrowing from the greats So after reading that strategy from Graham, Morgan started doing that. He looked for companies that were trading for less than their book value. This was around 2006-2007. He found a furniture company, a mortgage company, and several banks that were selling for less than their book value. Old is not always gold Morgan invested in these cheap stocks, confident that he would make a killing. Unfortunately, almost all of them went out of business. Morgan wondered what he had done wrong. Did he get unlucky? Did he not follow Benjamin Graham’s advice correctly? What happened here? Morgan soon realized that the reason why this happened is that the investment world had changed since the 1970s. It was true that in the 1970s, in the 1960s, the 1950s, and 1940s, stocks trading for less than their book value were probably good investments. That was true back then. However, things changed over time, and that strategy does not work anymore. Lessons learned There’s a reason why a stock is cheap If a stock is cheap, you need to know why it’s cheap. Almost always, say 99% of the time, the reason a stock is cheap is that the business is not performing well. It is probably burning money or has enormous liabilities. Andrew’s takeaways A cheap stock is the market’s way of warning you As a value investor, when you see a company that’s trading at a price that’s lower than the book value, know that the market is telling you that there is no future value in that stock. Separate your investment strategy and risk strategy Make sure that you have an investment strategy as well as a risk management strategy to keep you covered should your investment strategy fail. Actionable advice Try to become more attuned with your behaviors, your ability to be swayed by new ideas and new opinions. Become more attuned with your risk tolerances, comfort zones, and ability to sleep well at night. Move away from the finance textbooks that are written to apply to everyone and think about your own goals, personality, philosophies about money. You will then start making better decisions because it’s less about your intelligence and the formulas that you know, and more about becoming attuned with yourself and your own goals. No. 1 goal for the next 12 months Morgan’s number one goal for the next 12 months is to keep his expectations low while hoping for the best with his new book. Parting words   “We are going to look back at 2020 as one of the worst years in modern history, but we are also going to look at it as a turning point of innovation, technology, and problems that are being solved faster than we have done in years or maybe decades.” Morgan Housel   Connect with Morgan Housel LinkedIn Twitter Website Blog Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast Further reading mentioned Benjamin Graham (2006) The Intelligent Investor: The Definitive Book on Value Investing Morgan Housel (2020) The Psychology of Money  

Paul M. Neuberger (New Berber) is also known as The Cold Call Coach, and he believes in making the impossible possible. A masterful speaker and trainer, he challenges people to dig deep and discover talents they never knew they had. Whether it’s working hands-on with small teams or presenting in front of hundreds of people, Paul is adept at genuinely connecting with his audience and getting to the heart of important issues. He has worked with leading organizations around the world to help improve effectiveness, performance, and cultivate a stronger sense of passion in the workplace. He has taught thousands of students in more than a hundred countries through his Cold Call University program, helping sales professionals in a range of industries close more business in less time than ever before.   “I believe in life; nothing happens to you. Everything happens for you.” Paul M. Neuberger   Worst investment ever Switching careers on a whim Paul was a 30-year-old vice president of a major university in the state of Wisconsin when his father-in-law died suddenly. His mother-in-law’s financial life became complicated after her husband’s death. Paul wished he’d been able to save his mother-in-law from her financial problems. He was so devastated to be helpless that he decided to become a financial advisor. Going in big Paul became successful quite fast, and so he got over his head that starting a business in the finance industry was going to be easy. He’d always been a good salesperson, and his passion was over the roof, so being a financial advisor came easy for him. When Paul saw how quickly he was growing, he decided to take it up a notch. He wanted to look a little bit more prestigious, to look more successful. He believed that this would land him big clients. Paul signed a 30-year lease for a huge office space and hired four people. He invested heavily in technology and marketing and was hemorrhaging cash faster than he was making it. The high costs nightmare Soon enough, the bills started piling up. Paul had to pay rent and make payroll. Within no time, he was missing payroll and having to ask for rent extensions. After a couple of missed payrolls and rent extensions, Paul realized he was in over his head, so he decided this wasn’t the path for him. Lessons learned Be aware of who you are It’s good to have self-confidence. But you also need an awareness of self. Don’t let your self-confidence cloud your self-awareness. Surround yourself with smart people Surround yourself with people whose advice you can rely on, people who can be your sounding board when you need help in making business decisions. Have a strategic plan You can’t just sell your way out of a problem. You need to be strategic. You need to figure out what’s the end game. Think about where you want to be in the next couple of months, what you need to do to get there, and what success looks like. Also, think about the risks of what you’re trying to do. Have healthy outlets As an entrepreneur and business owner, there’s only so much you can do. You need healthy outlets. You need that one person that you can talk to, vent with, and seek both personal and professional advice from. Andrew’s takeaways Costs are the only thing we can truly control When starting a business, or if your business is in trouble, the one thing you can do quickly is cut costs. Don’t burden yourself with unnecessary expenses. Take pride in the fact that you’ve got your costs down to a minimum. A business with low startup costs will be profitable from day one. Don’t be a one-hit-wonder Don’t just think about that next shot, think about the next three to five shots, and therefore you won’t be a one-hit-wonder. Actionable advice Identify what your passions are. A lot of us know what we like, what we’re good at, our strengths and skillsets, but never take time to think about how to make good use of these things. Identify your strong points, then think about how you can build careers from these things, how you can monetize them, or how you can add them to what you’re already doing, or make them a central pillar and focal point of your success. No. 1 goal for the next 12 months Paul’s number one goal for the next 12 months is to be on Amazon’s top 1,000 books list. Paul published his first-ever book The Secrets to Cold Call Success in June. This book is the Bible of all sales teams. He wants this book to be in every organization in the next 12 months. Parting words   “Fear is always going to be there, but you have a choice when it comes to fear. You can use fear as a barrier or fuel to your success. The choice is yours.” Paul M. Neuberger   Connect with Paul M. Neuberger LinkedIn Twitter Facebook YouTube Website Blog Email: info@paulmneuberger.com Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  

In 2020, Success Magazine named Patrice Washington, one of 12 Inspiring Black Voices in Personal Development. As an award-winning author, transformational speaker, hope-restoring coach, and media personality, Patrice is committed to redefining the term “wealth” using its original meaning, “well-being.” Patrice started as your favorite personal finance expert, “America’s Money Maven,” but has since expanded her brand and mission to encourage women to chase purpose, not money. She uses her Certification in Financial Psychology to help the masses get beyond budgets and credit reports and dive into the heart of why we behave the way we do with money. She encourages women to have “wealth” in all aspects of their lives by pursuing their purpose, being fulfilled, and earning more without ever chasing money. Through her teachings, Patrice empowers women to look at life through the lens of abundance and opportunity, instead of lack and scarcity. As host of The Redefining Wealth Podcast, Patrice has built a thriving international community of high-achieving women committed to creating a powerful life vision--in their careers, home, health, and personal finances. Featured on Forbes.com as one of “15 Inspiring Podcasts for Professionals of Every Stripe” and highlighted by Entrepreneur.com. The Redefining Wealth Podcast boasts over 2 million downloads and counting!   “Don’t get caught up in the pretty, in what looks good and what looks like money. Focus on the nitty-gritty of the numbers and what you can sustain even in your worst month.” Patrice Washington   Worst investment ever Early real estate mogul Patrice was 19 years old when she got licensed as a real estate agent in California and quickly fell in love with the industry. During her senior year in college at the University of Southern California, Patrice got her broker’s license and became a real estate and mortgage broker. Her real estate business quickly took off and became a seven-figure business by the time Patrice was 25 years old. Riding on cloud nine Patrice was on top of the world. She and her now-husband and then-boyfriend were driving matching Range Rovers and owned almost 13 pieces of property collectively. They had 16 loan officers and real estate agents on their roster. They had all these things going for them, and they thought they ran the world, and it was a beautiful time. The one mistake that undid it all Around 2006 Patrice’s staff insisted on having an office to work from and fancy technology that would help them land more clients. She listened to them, and so they moved from the coworking space they were using to a larger office, almost 2,000 square feet, which they fully furnished. All these new changes took their overhead from about $2,000 to $14,000 a month. In 2007 the recession started to rear its ugly face. People were talking about the real estate bubble bursting. Other mortgage brokers in Patrice’s building were talking about giving up their office space and work from home. Patrice felt sorry for them, still oblivious of the looming crisis. The bubble bust In 2008 banks started closing down, and things got terrible at Patrice’s real estate business. At the time, Patrice was in hospital admitted because of a complicated pregnancy. She was so helpless and could only watch from her hospital bed as things went from bad to worse. There was no money coming in, and Patrice had to use their life savings to keep the company going. They exhausted their savings within a year. Within about 15 months, Patrice and her husband lost everything. They went from a 6,000 square foot home in Southern California to live in a 600 square foot tiny apartment. Lessons learned Prepare for the worst As an entrepreneur, you have to be prepared for the worst. Don’t plan your personal and professional life based on your top months, but your worst months. Your business and personal budget should be based on your worst performing months. Andrew’s takeaways There’s more to a business than sales Sales is just a function within the business, just like finance, accounting, and marketing. So when you decide to run your business, and you’re great at sales, remember that that’s one function within a company, you’ve got to take care of all the other parts. Make sure you have good people around you that are doing those other functions. Know where you are Most people, when starting a business, don’t necessarily know where they are in the economic cycle. You can’t know how to get to where you want to go if you don’t know where you are at. Spend enough time trying to understand where you are in the economic and profitability cycle so that you’re able to prepare for what will come in the future. Your employees are not always right It’s imperative to stay in touch with your employees and customers, but you have to remember that they may not necessarily be giving you the best advice about what you should be doing. Listening to your customers and employees is one input in your decision-making process. Actionable advice Don’t listen to the chatter; make decisions rooted in the numbers and the data. Always look at the bigger picture and think about life beyond today. You never know what’s coming around the corner. You want to be ready. No. 1 goal for the next 12 months Patrice’s number one goal for the next 12 months is to rest in the spirit of contentment and be present to everything that’s going on and make decisions rooted in faith, not fear. Parting words   “Keep chasing purpose, not money, and redefine wealth for yourself.” Patrice Washington   Connect with Patrice Washington LinkedIn Twitter Facebook Instagram YouTube Website Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  

Avi Liran is on a mission to delight the world; one person, one workplace, one community at a time. He was made in Tel Aviv in 1962 and came to Singapore in 1992 as the trade and tourism commissioner of Israel. He holds an MBA in Marketing and Entrepreneurship. He is a CSP (Certified Speaking Professional) who consults and trains leadership teams of top fortune 500 companies on how to cultivate delightful leadership that empowers a culture that delivers delight to the employees and customers. He was the Chief Marketing Officer of two software companies. As a diplomat and economist, he had initiated two funds between Israel and Singapore that now manage more than a billion dollars. As a VC strategist, he facilitated nine investments in startup companies in Israel for Singapore Telecom, which bought two companies in Israel for half a billion dollars. In the past decade, he has been researching values, welling, and appreciation. He is writing the Delivering Delight book that will be published next year after the book “First Time Leadership.” He is co-writing and researching now with Daniel Lee.   “There’s no half full or half empty. There is a glass issue to be grateful for, and there is an effort to go and fill the glass.” Avi Liran   Worst investment ever Putting his money where his mouth is Avi was working for Singapore telecom investing in Israel when he came across a startup company doing IP PBX over the internet. The company had the best technology at the time and was worth billions of dollars. Avi realized that the company was a goldmine and so he invested in it. Ego too big to say yes The company received an offer to sell for about $30 million; the CEO refused the offer. They got a second offer from Cisco. The proposal was much more than what the first company had offered. The CEO said no to Cisco, insisting that the company was going to be a billion-dollar company. Pride comes before a fall After the two offers, people in the company became arrogant. The CTO went to Boston simply because he decided he wants to go to Boston. Everyone was thinking about their own needs, and just because the company had the potential to make billions, people thought they had made it. The CEO kept refusing to sell while still operating with an air of arrogance. Then the dotcom crisis came, and the company evaporated. Unfortunately, Avi lost everything he had invested in that startup. Lessons learned People are the secret sauce to successful startups When investing in startups, remember that it’s all about the people and their ability to work together, put their ego at bay, and not be arrogant or cocky but be very prudent. Arrogance and lousy working relationships can kill any investment, especially startups. Company values are everything in a startup The most valuable companies have company values in place. If you don’t work on the company’s core values, people will stray from the company’s vision and goals. Focus on your strengths, not your weaknesses A common mistake that people make is to focus on correcting their weaknesses. You waste so much time trying to work on your flaws when you should be optimizing your strengths. Andrew’s takeaways Lead by example When it comes down to company values, it is the values that the company owners and the managers convey to their workforce that ultimately become the company values. So be what you want your workforce to be. Partner with the right people Think about what you need to be successful. Then find the people with what you need and be friends with them. You don’t have to become them, use the energy, and share your strengths with them. Actionable advice Lead with your values even when you have to make difficult decisions. Values are what you do when nobody is watching. A company with values has the greatest potential to be successful. No. 1 goal for the next 12 months Avi’s number one goal for the next 12 months is to finish his book Procrastinating by Definition. He also wants to be a better mate, a better listener, and be more empathetic. Parting words   “Let’s continue empowering women so that they can start earlier and be successful in their careers.” Avi Liran   Connect with Avi Liran LinkedIn Twitter Facebook YouTube Website Blog Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast Further reading mentioned Don Clifton (2017), Strengthsfinder 2.0 from Gallup and Tom Rath: Discover Your CliftonStrengths  

Mike Ciorrocco, aka Mike C-Roc, is the CEO of People Building, Inc. He is a performance coach, author, dynamic public speaker, visionary, and thought leader. He has been featured by Yahoo! Finance as one of the Top Business Leaders to Follow in 2020 and is on a mission to build people. At his core, he’s obsessed with success and helping others achieve greatness. C-Roc is a guy who had a fire lit in him at an early age. That fire has led him to inspire others to see the greatness inside of themselves using past life events to fuel their fire.   “Accept and acknowledge the setback as soon as possible, so that you can prepare and launch for your next takeoff." Mike Ciorrocco   Worst investment ever Mike and his partner run a profit and loss company. A few years ago, when the P&L company was still new, it started to have some success and money was coming in. Mike and his partner planned to keep the money in the business to help scale it. So they kept the money in a company account. Not so much their money There was a catch, though. The company where Mike’s money was kept was not his company. The two partners weren’t the owners of the company. The owner of the company was Mike’s buddy’s uncle-in-law. So even though the money was theirs, officially, it belonged to the owner of the company account. All along, Mike assumed that their money was safe. The assumption got Mike in big trouble. Money goes missing Mike and his partner had built the company for 12 years and had about one million dollars in the account. The money was to be used to scale the business. The two partners had big plans. After a while, they found out that their money was missing. At the time, the company had 22 employees. Mike felt responsible for those 22 employees and their families. These employees had bought into Mike’s vision and were working hard every single day to achieve this vision. He had to make sure that they were taken care of and not affected by the mess. Getting out of the entanglement Mike had to create an exit strategy that was not going to get him in trouble, which would protect their investment and take care of the employees that were relying on him. So this happened over a few months. Luckily, they still had contracts and deals that they had to get paid. Mike and his partner founded another company, and the transition happened. During the transition, the two partners lived off minimum wage to sure everybody was getting paid so that the business could keep running. Unfortunately, they lost all the money they had previously made and saved. However, with the new strategy, they were able to recover and get the company back to its feet. Lessons learned Don’t mix business with friends and family Don’t trust family and friends as far as business goes, and just leave it to that. Make sure you have an ironclad contract or any written agreement that shows that the money is yours. Work on your company culture When you have a great company culture, individuals will look out for the greater good first, and then themselves. Build a culture in your business to give it a firm foundation. If you can start a big company with a great culture from the start, you’ll be unstoppable. Employee goals need to align with company goals Your employees’ individual goals need to align with the company goals. If they don’t, you’re going to have conflict, and it’s not going to work, no matter how much they produce. They may be good employees, but as long as their goals don’t align with the company goals, they’ll end up causing problems that are going to cost more than the revenue they’re bringing into the company. Your employees are your greatest investment Very many business owners think of their employees as just workers. In a business sense, you’re investing in these people, and they should give you a return on your investment. So build your employees by treating them well so that they can provide you the most return on investment. Think of having employees like having a real estate investment and taking care of that real estate. You would never let your property go to waste. Likewise, don’t let your employees go to waste, take care of them. Andrew’s takeaways You can recover from any setbacks There will be many setbacks in life. Some will bring you down to zero. To survive, understand that this is normal, accept and acknowledge your setbacks immediately so that you can recover quickly. Take care of your employees Take care of your employees because they are your greatest asset. Actionable advice Wake up in the morning with gratitude. It may sound like a cliche, but one thing that’s going to change your life is counting your blessings every day, no matter how insignificant you think they are. This will create a situation where you have nothing to complain about. It’s a magic trick, and if you try it, and you get consistent with it, it will change your life. No. 1 goal for the next 12 months Mike’s number one goal for the next 12 months is to finish writing his forthcoming book, Rocket Fuel. He is fired up to get the book out towards the end of this year. Connect with Mike Ciorrocco LinkedIn Twitter Facebook Instagram YouTube Website Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast

BIO: Stephen Kalayjian is a Chief Market Strategist and Co-Founder of Ticker Tocker, a firm that researches and develops software to help identify trends, reversals, patterns, and divergences in the marketplace for all asset classes and time frames.STORY: Stephen once risked his entire $3,000 savings on a call option trade at his father’s friend’s brokerage. Unfortunately, that trade went bad. He summed up his experience of loss into five core values—consistency, discipline, confidence, patience, and passion—with discipline at the heart of his approach.LEARNING: Never average down on a losing trade and always preserve capital. No trade is bigger than the market, and cutting losses early is crucial. “If you’re gonna invest or trade, you have to have discipline.”Stephen KalayjianGuest profileStephen Kalayjian, Chief Market Strategist and Co-Founder of Ticker Tocker, has over 30 years of experience in the industry trading stocks, futures, and currencies, having begun his career at the American Stock Exchange in 1983.In 2005, Stephen founded his firm to research and develop software to help identify trends, reversals, patterns, and divergences in the marketplace for all asset classes and time frames. Stephen seeks to generate high alpha trading ideas throughout the day. He and his team employ technical analysis through utilizing the proprietary charting software he developed on Ticker Tocker to forecast the market.Stephen has traded nearly 2 billion shares over his career.Worst investment everStephen’s worst trade was one that he made early in his career. When he was 19, a just-graduated high school student, he had saved about $3,000 by doing odd jobs for years. He was eager to leave some mark on the trading floor and opened a brokerage account, staking everything on one notion.In August 1983, he purchased 50 call options on a blue-chip stock for about $2.75 each, confident that the stock would rise. But Stephen was a call-option novice. He didn’t realize their worth deteriorates over time, and he certainly didn’t have a stop-loss plan.He buys more as panic sets inAs the stock began to fall quickly, Stephen panicked. He continued to buy more calls as the stock fell (averaging down), digging himself in further. By Thanksgiving, the position was worthless, and his account was “broke beyond broke.” He remembers entering a trading post with his head in his hands, piling up losses, wondering how many times he had gotten it wrong.A December market rally gave him just enough to salvage a thin margin on his trade: he sold some call contracts in January that ultimately closed out the position and kept the profit. As he describes it himself:“I had no risk, no discipline… I just rolled the dice,” Stephen admits, describing how his savings vanished.The inevitable turning pointIn retrospect, that catastrophic first trade was a turning point. Stephen summarizes the lesson he lives by in the five words: consistency, discipline, confidence, patience, and passion – and discipline is “everything” in trading. What had seemed like a ruinous loss proved to be his best teacher.Lessons LearnedStephen took away some hard-earned trading lessons from that episode – lessons he now teaches to others:Save capital at all costs: Always treat risk management in trading as non-negotiable. Only trade with money you can afford to lose. Trade only with what you can afford to lose. Set a hard stop-loss prior to every trade so you never blow your account.Never average down: Throwing good money after bad only adds to your loss. When you are against a trade, take the loss and exit immediately. Do not average down.Take losses graciously: It’s okay to lose. All traders are going to lose sometimes, but what makes the difference is getting to grips with it and moving on to the next one. Accepting a losing trade and moving on to the next one was what Stephen learned was far more important than covering a losing position.Practice discipline and patience: Persistence will conquer the pursuit of get-rich-quick dreams. Stephen applies the discipline he practiced as a top athlete (he even got a teetotaler award in high school for exercising self-control) directly to trading. He has a solid plan, stays patient for high-probability situations, and avoids making impulsive judgments.Stay humble: No one is bigger than the market. Even the most popular stocks can blow up. Stephen watched giants like Enron disintegrate and witnessed those who would not sell suffer the most. He reminds us: the market has rules of its own – follow them, and do not let pride be your ruin.Andrew’s TakeawaysAndrew draws several takeaways from Stephen’s experience that apply to every trader:Discipline is survival: Always think of yourself as too poor to afford to gamble. Risk-manage every trade. When you can’t afford to lose large amounts, you tend to trade more conservatively.Always wear your seatbelt (use stop-losses): He concurs that stop-losses are like seatbelts. Everybody uses one in a car because without it, a crash can be deadly. When trading, not placing a stop is like jumping out of a plane without a parachute. Use protective exits on all positions.Preserve cash and capital: Risk only “house money,” not your livelihood. If you lose a trade, the market owes you nothing back, so always use only excess funds you can afford to lose.Emotional discipline: The majority of traders won’t sell winners until they drop. Andrew emphasizes taking profits when your goals are achieved, rather than hoping. Better safe than sorry.Learn and adapt: Every trader is going to lose from time to time; the difference is learning from those losses. Having a plan and sticking to it—even when it is uncomfortable—keeps you in the game.Actionable AdviceTo put Stephen’s lessons into practice, all traders can implement these steps:Always plan your trades: Define your entry, exit, and stop-loss before you trade. Then stick with the plan. Never allow fear or greed to overrule your rules.Implement strict risk controls: Never risk more than a small percentage of your account on one position. Put a stop-loss on each position and commit to it 100%. Consider stops as seatbelts – if you don’t wear one, you’re taking a chance.Never average down: Don’t wager more money on a losing trade. Take the loss (even a small one) and move on. Remember: you can’t win by doubling down on a loser.Manage position size: Always decide how many contracts or shares to purchase so that when the stop is triggered, you lose only an acceptable amount. This reserves your capital for the future.Learn continuously: Seek quality education and guidance. Leverage sources like Ticker Tocker analyses or other reliable trading forums to learn the right techniques at speed.Review every trade: Keep a trading journal. Analyze your losers and winners. Did you stick to the rules? What else would you have done? Turn every loss into a lesson so the same mistake is not repeated.Be patient and disciplined: Wait for high-conviction setups that work with your system. Avoid trading out of boredom or fear of missing out. Each day, there are good trades; remain patient and allow opportunities to come to you.No. 1 goal for the next 12 monthsStephen’s number one goal for the next 12 months is to inspire and teach traders the right way through Ticker Tocker. His goal is to help people change their lives by making trading knowledge accessible and practical.Connect with Stephen KalayjianLinkedInTwitterFacebookInstagramWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

Chris Mayer is co-founder and Portfolio Manager of the Woodlock House Family Capital fund. He also blogs about the thing he loves the most, investing. He started his career as a corporate lender, which taught him about managing risk and how business works. Next, he started his newsletter, called Capital & Crisis, which led him into 15 years of writing investment newsletters. Chris has written four books: Invest Like a Dealmaker: Secrets from a Former Banking Insider; The World Right side up: Investing Across Six Continents; 100 Baggers: Stocks That Return 100-to-1 and How To Find Them; How Do You Know? A Guide to Investing, Wall Street, and Life.   “Valuation is important, but it’s secondary to quality. I won’t buy something just because it’s super cheap if it doesn’t have all the other quality aspects that I like.” Chris Mayer   Worst investment ever Taking advantage of the 2008 financial crisis When the financial crisis hit the US in 2008, Chris reasoned that it would be an excellent time to start investing in the stock market. His strategy was to buy the cheapest available businesses and ignore the expensive ones. So he went ahead and found a couple of inexpensive companies. Cheap is just cheap The businesses that Chris bought into were not necessarily good businesses with a promising future; they were just cheap. But he knew he could easily sell them off later. After the crisis, Chris sold off the companies here and there once they started appreciating or reaching his target price. He, however, didn’t make so much money to write home about. He should have gone with the expensive options The companies that Chris ignored because they were expensive at the time went on to recover after the market fall and continue to thrive. Had Chris paid attention to such companies and probably invested in just one or two instead of a handful cheap ones, he’d still be making money from that investment. Lessons learned Buy the best not the cheapest When looking for stocks to invest in, go for the very best companies. They may seem expensive, but in the long-term, these are the companies that are going to bring you the best return. Go for quality over price. Investing is a long-term game When it comes to investing, you have to think long-term. Most of the best performing businesses today were not built in a day. They have about 20-25 years backing their success. Andrew’s takeaways Don’t be lured by a low price Just because it’s cheap doesn’t mean you have to buy it. Actionable advice Find five businesses that you would love to own and put them on a wishlist. Follow and keep an eye on them. Wait until you see a 20%-fall in the stock market and then go ahead and pick one and buy it. No. 1 goal for the next 12 months Chris’s number one goal for the next 12 months is to find one high-value investor. Parting words   “Don’t give up. Be patient. It’s a tough game. Everyone makes mistakes, so you just got to keep soldiering on.” Chris Mayer   Connect with Chris Mayer Twitter Website Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  

Karen Foo is actively involved in speaking at various conferences, seminars, expos, workshops, toastmasters clubs, and publicly held events. Having overcome numerous setbacks in her life, she has gone on to inspire thousands of young people, executives, and leaders to REALIZE THEIR ABSOLUTE WILDEST DREAMS through her INTERACTIVE, INSPIRING, AND ENGAGING TALKS. Karen has been ranked #1 in a Singapore nationwide Forex trading competition, competing with over 200 traders and has shared the stage with top investment gurus and CEOs. You can find her on her YouTube channel and join 94,000 other people who are gaining from her videos about forex, stocks, markets, and much more!   “In any failure in life, there’s a good side to it.” Karen Foo   Worst investment ever Case of the curious intern Karen’s parents are full-time stock investors, and they exposed her to stock investing since she was young. That’s what sparked Karen’s interest in the financial markets. When she was on internship, she took her salary and put it into the Forex market, not knowing what she was doing. She thought she was smart back then, but it turns out that she wasn’t so smart and so she lost the $1,500 she’d invested. Once bitten twice not shy As if the loss was not enough, Karen went on to lose $6,000 of her mom’s savings. Karen believed that she’d make money by investing in unit trusts. Again, she thought she was smart enough to get a win, and so she went in blindly. No research, no guidance, nothing. Needless to say, she lost $8,000, part of which was her mom’s savings. Karen was broke, angry, and embarrassed. She’d assured her mom that she knew what she was doing, but now she’d lost all the money. Asking for guidance After losing money twice, Karen admitted that she needed help making the right moves. Now she works with various mentors, something that has seen her become #1 Singapore Forex trader. Lessons learned Forget get rich quick schemes Forex trading is not a get rich quick scheme, so don’t take shortcuts. Don’t ignore risk management One of the main reasons why a lot of traders lose money is because they don’t care about money management and risk management, which contributes to about 40% of your success as a trader. You don’t have to figure out everything on your own It’s ok to try and learn everything on your own, but you will be more successful if you work with a mentor. Mentors can teach you a lot more than you can learn on your own. Focus on your risk to reward ratio Don’t focus too much on the win rate; instead, focus on risk-to-reward ratio because forex trading is not about returns; it is about risk-adjusted returns. Andrew’s takeaways The best fund managers are risk managers The best fund managers are not the ones that hit the home runs, but the ones that never strikeout. These are the ones who avoid massive losses and know about risk management. Plan your success If you want to see success in forex trading, have a plan and strategy that fits your personality in place. Do this before you commit a lot of money. Listen to the losers There’s always going to be winners and losers in the stock market. However, people talk only about the winners. Listen to losers, and you’ll learn a thing or two from them. Actionable advice Find out how credible a coach is before you work with them. You can ask them a couple of questions or look at their content. Don’t fall prey to the kind of YouTubers who like to flex their lifestyle instead of teaching. You won’t learn anything from them. No. 1 goal for the next 12 months Karen’s goal for the next 12 months is to grow her YouTube channel. She also hopes to get back to speaking on stage and also publish a book she recently wrote. Parting words   “Trading and investing is not a get rich quick scheme you’ve got to work hard, be patient, and you will get there. So for those people who preach to you get rich quick, just use that as entertainment.” Karen Foo   Connect with Karen Foo LinkedIn Facebook Instagram YouTube Website Email: karen@karen-foo.com Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  

Dr. Marcia (Marsha) Reynolds, Master Certified Coach, is fascinated by the brain, especially what triggers feelings of connection and possibility. She draws on her research and life events as she helps coaches and leaders make conversations into transformational experiences. She has provided executive coaching, training programs, and keynote speaking in 41 countries. Interviews and excerpts from Marcia’s books Outsmart Your Brain; The Discomfort Zone: How Leaders Turn Difficult Conversations into Breakthrough; and Wander Woman: How High-Achieving Women Find Contentment and Direction, have appeared in many places including Fast Company, Psychology Today, and The Wall Street Journal. Her latest book, Coach the Person, Not the Problem, became a bestseller the day it was released this past June. Marcia’s doctoral degree is in organizational psychology, and she has two master’s degrees in education and communications. She also feels she gained an invaluable education when she turned 20 in jail. With the support of her cellmates, she chose to rise back up and show the world she could succeed even when she was told she would fail. She went on to accumulate degrees, rise in male-dominated corporations, and now teaches leadership and coaching classes worldwide. She is recognized by the Global Gurus as the #5 coach in the world.   “Easy usually is a bad investment. You have to take your time and research your book well.” Marcia Reynolds   Worst investment ever Marcia always saw herself as a writer, and so when she left her last corporate job and had time, she wrote her first book. A friend insisted that she works with a certain woman to publish her book. She said that she would make life so easy for Marcia. The said publisher would make all the decisions, find all the people Marcia needed, do layout and covers, and anything else necessary to publish her book. Marcia would not have to worry about a thing. Hearing this made her quite excited since she had no experience. How nice it was to have someone do everything for her. A costly affair The publisher seemed a little expensive and kept charging her for stuff, but Marcia thought that meant she’d produce high-quality work and make her book a bestseller. She ended up spending $40,000, which she never made back. The biggest flop ever Marcia’s book was a colossal flop all because of the title the publisher chose. The publisher went with a title that Marcia thought was catchy. However, this title was the reason why Marcia’s book never got reviews and into bookstores. The title was The Rapture. Marcia had no idea that the word rapture had anything to do with any religion. Every bookstore thought the book was a Christian book. Marcia still has books sitting in her garage after losing a cool $40,000 to an inexperienced publicist. Lessons learned Always get references Before you hire people to work with, look at past experiences and what other people have said about them. If possible, talk to references to find the expertise of the person. Run your titles by your target audience Ask your audience what they think about your titles. You could do a survey monkey and have your fans help you choose the best titles. Be careful of the wow factor Be careful of people who make it sound like it’s going to be easy for you. Publishing your first book is not easy, so don’t let anyone tell you that it. If they do, then you shouldn’t work with them. Andrew’s takeaways Go for experience When looking for a publisher for your first book, go for people with proven expertise and experience. Check out their references to ascertain their expertise. You’ve got to put in the work If you want good results as you write your first book, you’ve got to work for it. Once you put in the work and the time you’ll give your book value and make it a bestseller. Work with people’s strengths It’s hard to find one person with all the strengths that are useful for your book. So when looking for people to work with, look for their strengths. This could be choosing a title, artwork, editing, etc. Actionable advice Publishing your first book is not as expensive as you think. There are good people out there for half the price, so don’t let the price fool you. So if you’ve been wondering how to find a publisher for my first book without spending a fortune, you just need to find the right people to work with. No. 1 goal for the next 12 months Marcia’s goal for the next 12 months is to launch a massive program called breakthrough coaching. This is a six months online program where people will learn how to change people’s thinking and help them have breakthroughs. Parting words   “As long as you learn from your mistake and experience, you should never regret it.” Marcia Reynolds   Connect with Marcia Reynolds LinkedIn Twitter Facebook YouTube Website Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  

Mike Meissner is an entrepreneur, a people-oriented leader, and an industry expert in logistics and supply chain management as well as biological and environmental testing. He proudly wears 20 years of professional experience in many countries across Europe, the Middle East, the Americas, and the Asia Pacific, where he built several successful businesses “just for pleasure really.”   “We now invest in better quality and higher prices, and we shorten times. This means fewer headaches and issues. We provide what we promise.” Mike Meissner   Worst investment ever Barbeque, wine, business idea Mike and a friend had a barbecue a few months ago. After the second bottle of wine, they joked about inventing a digital container that would keep the required transportation temperature throughout the journey. The next morning, when sober, Mike and his friend researched their idea intensively. They found out that this kind of box doesn’t exist. So they started developing it from a design and an engineering point. Eventually, they came up with a fantastic container in different sizes for different commodities. The novel box The box is charged like a mobile phone for four and a half hours, you set your desired temperature, you lock it and the box guarantees to maintain this very same temperature for the next 72 hours. It has an integrated SIM card and sends push notifications with details such as the patient file, the box’s current location, who’s handling your product, at what humidity, luminosity, and at what temperature. Such details create transparency. So essentially, no more dry ice, ice packages that you freeze, and put on top of your package for your shipment. It doesn’t matter if your flight is delayed because 72 hours is plenty of time from anywhere in the world to reach its destination. What could go wrong? Nine months later, Mike’s box went into patenting and had a successful pilot with his clients. Everybody was happy. Mike was receiving compliments for a noble and promising idea. This box was going to be a hit. Nothing could go wrong. Or so he thought. However, the beginning has been terrible. Mike made a lot of silly decisions that cost them money and time. Once they had the box designed and assembled and the design documents approved by authorities, they started to source for components. Mike had two component suppliers. The first one was a friend who was selling the parts for $509. The second supplier was very far away, and Mike had no personal relationship with him. However, he sold the components for $240. Choosing the cheaper option So out of Mike’s nature of not being a big fan of finance and administration, he just wanted to get his box done. He wanted to touch it and was eager to put it on the table of the FDA for approval. So Mike chose the second supplier and placed an order for $25,000. Quite a considerable amount for a start-up. The components arrived six weeks later but got stuck in customs because wrong customs clearance codes had been used. They had to pay hefty fines for this. To make matters worse, the components turned out to be of the lowest quality possible. Mike had ordered for eco-friendly components because he didn’t want to be testing the environment with harmful materials or components. So when they sent the parts to an independent testing facility, just to give them the confidence of the materials used, they ended up having the worst PVC materials that you can launch in the market. So nobody would have ever approved this to be eco-friendly. It also cost him another $600 to recycle the components that they couldn’t use. So far, they’ve lost a lot of production time, and Mike ended up paying one and a half times as much as the first supplier. But, he’s glad he was able to learn how to avoid losing money on investments thanks to this experience. Lessons learned Find people who compliment you You will never have all the qualities needed to set up a successful company. So surround yourself with people who complement the qualities that you don’t have. Learn the basics Even though you don’t have the general interest or the general specialty in areas such as finance, administration, purchasing, quality control, you have to force yourself to learn at least the basics so that you at least know what is going on in your business. You cannot just go for your vision and your product without having the essentials. Andrew’s takeaways Manage your risks When starting a company, you’ve got to become a great risk manager to avoid losses. Finance adds no value Value comes from your ideas and the implementation of those ideas. Finance adds no value. It is a support function, a measurement tool, and a feedback mechanism. If you can understand finance, then you will be able to see where you’re at and the results of your prediction so that you can implement your ideas from the point of knowledge. Cheap is expensive Sometimes the cheapest option is, in fact, the most expensive. Actionable advice Think before you act, take a step back. Try to listen to more than two or three opinions of your family and friends, as well as your competitors. Be patient and think things through first. If you lose a day or two, that won’t change anything in your success. No. 1 goal for the next 12 months Mike’s goal for the next 12 months is to continue growing his start-up by improving its products and services. He also wants to start expanding into other geographies. Parting words   “If you’re on the edge of starting something, I encourage you to follow your dreams. Do it right, take the learnings from me and others so that you do not commit the same” mistakes. Mike Meissner   Connect with Mike Meissner LinkedIn Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points Andrew’s online programs Valuation Master Class How to Start Building Your Wealth Investing in the Stock Market Finance Made Ridiculously Simple Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Andrew Stotz: astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast