In our lifetime, we thrive to create, grow, and protect our wealth.
We create wealth through different business and investment ventures. We look at different investment vehicles to grow our wealth. Alongside those investment opportunities, we ensure that we understand all the many risks that are involved in our ventures so that our wealth is secured and protected.
In our 30th episode, Andrew shares his golden nuggets of takeaways talking about the ‘6 Ways You Will Lose Your Money. All from the heartbreaking tales of investment misfortune from investors and financial titans from around the world.
Discover the best practices for risk management that will keep you in the game for you to continuously create, grow, and protect your wealth.
“Nobody can take care of your money like you can. Ultimately, it's your responsibility.”
– Andrew Stotz
6 Ways You Will Lose Your Money
1. People Invest in a Startup company
Everybody knows the odds of a startup company making it to success. True success is tiny. Yet everybody feels excited about the opportunity of investing in a startup.
2. Fail to monitor your investment
People abdicate their responsibility for their own investments and instead they hope and they expect that the people who are supposed to be taking care of their money are doing so correctly.
3. Misplaced trust
Business and investing are built completely on trust. People tend to misplace trust into individuals or into structures into investments that in fact they probably should have checked in more detail about and they've probably not should have not trusted them.
4. Driven by emotion or flawed thinking
If you're driven by emotion the number one the number one situation in this is overconfidence.
5. Fail to properly assess risk
People may make a reasonable investment in a company that they say, "The risk hasn't been high but I'm ok with that." The position size that they put into that investment is huge relative to their overall portfolio. If that investment goes down, it could cause huge damage to the overall portfolio. We want to look into the risk assessment of the particular project but also the risk assessment of our overall portfolio.
6. Fail to do their own research
Most people go into investments with a very little amount of actual research into the idea. You have to do your own research.
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