Crises and losses as a turning point in investor life
Video Post Number 5 -
“Is your success more good decisions or more luck? A little about being careful with the face to the future ”
Warning: viewing is the sole responsibility of the viewer! . . . Just plain, I'm kidding of course, but there's a slight caveat: this video post is a bit with a negative tone. Its purpose is not to scare or create intimidation but only to emphasize a few things - to keep your eyes wide open.
In the last decade, we have seen a surge in both real estate (value) and in the number of people or companies operating in the field or engaged in investing with investors. Even someone wrote a post about it.
Last Monday I had a conversation with S. - an investor who lives in Israel (as I said, I live in California). He called to chat and inquire about our flip flop activity. After an explanatory in-depth conversation I asked him the following question: “If you lose 30% of your investment how will it affect you? Does that mean you will move to the street? ”
A long silence. . . Very
S. was completely confused by the question. Admittedly I do not know him personally but he does not sound like a young guy to me (sorry if I am wrong).
The very question seemed to have thrown him off track. And from the discussion that developed after that it seemed that he did not give it any thought and even seemed to ask an illogical question. "loss? From investment? No way?"
I appeal to the following audiences - first of all watch the video (I talk a lot with my hands and it's quite funny):
Advanced / experienced investors
Professional investors / investor mentors
In the last decade, it was easier to succeed, not always, and not in every deal, and not in any situation, but it was relatively easier. Why?
Many enjoyed a strong back wind. And when there is a strong back wind, mistakes and problems are swallowed up by the back wind.
In the absence of a tailwind, mistakes and problems will arise and rise, and in large measure.
If you are a beginner - do not buy the successes of the pros too quickly, the back wind may have made up for mistakes. God forbid do not conclude that I am saying that they are not professionals, but check more in depth.
If you are progressing - I bet there are mistakes that you are aware of, and also those that are not, that were saved for you because of the back wind - do a home inspection for successes and look for where you have problems and treat them in the next deal.
If you are a lender / professional - invest time in locating the holes in your business and close them. Rule of thumb - If you are not completely sure about something, check out how to close it. You will not close all the holes but do not let past successes affect your personal confidence.
My assessment is that we will enter or enter a slow pace. That does not mean that investments must be stopped. This means that you need to test a personal investment strategy, check more thoroughly, and strengthen your work fundamentals.
On a personal level I can share that a lot of players I saw / met / knew (in the US) before the crisis just disappeared during the crisis years. Lots of talk, lectures, "Switzerland" on stages I saw before the Great Depression are gone. Some of those people came back after recovery had already begun but many did not. In my opinion many have disappeared because their “method” did not work or was worth nothing once the crisis came.
Therefore, even if you are in a crisis period and it does not come, you will still strengthen your investment system.
And to conclude, I will just say that there is no better opportunity than a crisis to become a true expert or professional. . . With all the pain and difficulty that comes with it.
By the way, I have not yet received a reply from S. and I hope I have not startled him and he has dropped the whole issue of investment.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion