My Worst Investment Ever Podcast

BIO: Will Roundtree offers the world a unique lens into wealth-building strategies and examines opportunities for his communities to expound on their knowledge and have effective practices to apply it.STORY: Will invested in a small tax franchise after he bought into the owner’s lavish lifestyle. He didn’t do his due diligence, only to discover that the owner had been stealing from his clients. This saw him lose over $40,000.LEARNING: Do your due diligence. Study the actual industry you want to invest in and verify its legitimacy. There’s no hack or shortcut to earning trust. “People want to look like they’re running a business. So they go and get all these business expenses. I’d say the number one thing you should do is get a customer first.”Will Roundtree Guest profileWill Roundtree offers the world a unique lens into wealth-building strategies and examines opportunities for his communities to expound on their knowledge and have effective practices to apply it.From homeless to millionaire, Will has established himself as a staple in the real estate investment sector. His expertise has garnered recognition among his peers and community members as the founder and top-grossing principal at WE Management Services. Will has helped over 3,500 small to medium-sized businesses access over 300 million dollars in business funding over the 36 months.In 2005, he left his hometown of Milwaukee, WI, with a borrowed 500 dollars and headed towards Las Vegas. Once there, Roundtree found the ruthless realities of living without a financial plan and imperfect credit. His applications were denied for housing, and this left him homeless and living out of his car.Roundtree was inspired to diligently educate himself on personal finance and credit. He would walk into libraries and read books about consumer credit laws, standard operating procedures, regulations, and economics. This led to him becoming a FICO Certified Consultant and eventually to the creation of WE Management Services, a highly-rated financial services company. In this role, Roundtree has helped numerous families successfully restore credit, become homeowners, obtain financial freedom, and become flourishing business owners. More than a decade later, Roundtree tours the country as a notable financial advisor, author, motivational speaker, mentor, community organizer, real estate investor, and wealth builder. Just recently, he completed a nationwide tour headlining his innovative Cocktails and Credit seminars. He is also the creator and host of the Full Time CEO Podcast: The $h!t They Don’t Tell You!Worst investment everWill invested in a small tax franchise when they were up and coming. The owner of the franchise pitched Will by showing him how much money he had made the year before. Will didn’t ask to see any financials or verify if the company was legit. He was impressed by the profit and loss statement and pictures of the guy’s automobiles and the trips he took. So he sold Will on the lifestyle, not necessarily the business.After liquidating his 401-K, Will also took out some personal loans to invest in the tax franchise. His total investment into the franchise was about $40,000 upfront, plus additional yearly fees. After the purchase was completed, Will had to lease an office. He negotiated for a tenant improvement allowance of about $25,000. For the landlord to renovate the building, Will had to go from a three to a six-year lease. Now, he had a 3,000-square-foot office for six years. Next, he went out and hired over 35 tax preparers.When the tax season started, Will believed he would have over 500 clients coming in, but that wasn’t the case. At the time, he had partnered with a bank to make tax payouts, and close to the end of the tax season, the bank just shut him off. He got a letter saying the bank was auditing all of his financials. Turns out the parent tax company had been stealing clients’ money. The owner would stuff a bunch of fake expenses into a client’s tax refund, help them get a large refund, and then charge the client $1,500 in software costs. This money would be deposited into the company’s bank account, and that’s why the bank was now auditing Will’s accounts.Will had to take the franchise owner to court, leading to a long, expensive legal battle that lasted years.Lessons learnedWhen you do something solely for money, you overlook all the other outpoints it takes to make money.Do your due diligence.Study the actual industry you want to invest in and verify its legitimacy.Andrew’s takeawaysThere’s no hack or shortcut to earning trust.Be super careful when you go into any business with no experience and no client base on which you can build a revenue stream.Actionable adviceGet experience in the space you want to start a business to see if you’ll like it. Go work for someone in that industry. Before jumping in, this will help you determine if you like that business model and the industry.Will’s recommendationsWill has over 300 videos on YouTube that you can watch. You can also follow him across all social media platforms: LinkedIn, Twitter, Facebook, and Instagram. Will is also a two-time author of Credit is King, one of the fastest and most-sold books in the credit industry. And Full Time CEO, which teaches the unglamorous side of entrepreneurship.No.1 goal for the next 12 monthsWill’s number one goal for the next 12 months is to license his information. He also wants to help over 1,000 people get their first investment property and increase their net worth in their assets.Parting words “It’s been a pleasure, Andrew. Thank you for this platform. Hopefully, one day, I’ll come back not necessarily with a worse story, but just an update on the success we’re helping others with.”Will Roundtree [spp-transcript] Connect with Will RoundtreeLinkedinTwitterFacebookInstagramWebsitePodcastAndrew’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

BIO: Kyle Mowery, founder and portfolio manager at GrizzlyRock Capital, has an 18-year career beginning at PAAMCO, where he honed his analytical skills. He later delved into high-yield corporate securities at T.H. Lee Senior Credit Strategies and expanded his expertise at BMO Capital Markets.STORY: Kyle invested in a business that produced sandalwood trees. He believed they were about to sell at significantly higher prices to buyers across the globe. Unfortunately, some of the sales fell through, management resigned and didn’t report when they sold their shares, and then the whole thing imploded.LEARNING: Invest in your circle of competence. Make sure the bet size is correct. “In inflection investing, see the inflection. You’ll pay a higher price, but you’ll have a greater certainty.”Kyle Mowery Guest profileKyle Mowery, founder and portfolio manager at GrizzlyRock Capital, has an 18-year career beginning at PAAMCO, where he honed his analytical skills. He later delved into high-yield corporate securities at T.H. Lee Senior Credit Strategies and expanded his expertise at BMO Capital Markets. In 2012, he established GrizzlyRock, adopting a fundamental, value-oriented research approach in small-cap companies. Kyle’s method involves rigorous research, systematically identifying mispriced securities with high risk/reward potential. With unwavering discipline, he navigates market complexities, focusing on high-conviction investments amidst information overload. His adeptness in spotting substantial mispricing opportunities sets him apart in the crowded investment landscape.Worst investment everKyle wanted to grow his business in 2016, so he hired an additional analyst with a background in small-cap, Asian developed markets, and Asian equities. Kyle had also been following a business that produced sandalwood trees at the time. He researched the business and ultimately purchased shares, believing the company was on the cusp of significant free cash flow. The company was levered financially, and Kyle was well aware of that. Kyle invested based on the imminent free cash flow. His company would harvest this wonderful group of trees. Kyle put his team on the ground in Australia. They saw the trees, they were all very real.Kyle was also impressed that a founding family owned between 20 and 25% of the business. He did his full diligence and believed they were about to sell at significantly higher prices to buyers across the globe.Unfortunately, some of the sales fell through, management resigned and didn’t report when they sold their shares, and then the whole thing imploded. Kyle luckily sold before it hit zero, but it was a very nasty loss.Lessons learnedInvest in your circle of competence.Make sure the bet size is correct.Andrew’s takeawaysMaking great investments can be very emotional, especially if you’re starting up or a small to mid-cap company.Actionable advicePractice intellectual honesty. The minute things don’t align with what you had underwritten, reassess. It’s okay that your original thesis was invalidated; just be intellectually honest.Kyle’s recommendationsKyle recommends reading Margin of Safety to understand risk versus return.No.1 goal for the next 12 monthsKyle’s number one goal for the next 12 months is to build a portfolio that can manage political uncertainty and perform or not drawdown very far across a broad spectrum of economic outcomes.Parting words “Investing is a wonderful passion for many of us, and it’s a wonderful lifelong journey. You get some wrong and some right. The key is to just keep on size and keep it compounding.”Kyle Mowery [spp-transcript] Connect with Kyle MoweryLinkedinWebsitePodcastAndrew’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

BIO: Gabe Marusca, known as The Nomad Solopreneur, is a location-independent marketing strategist who established Digital Finest as a solo founder.STORY: Gabe spent 20 hours working daily for over a year trying to make as much money as soon as he could. This caused his body to shut down, and he developed a chronic disease.LEARNING: Pay extreme attention to your body. Having a long-term vision and patience is more sustainable than trying to gain fortune overnight. Stop putting too much time into the things that don’t matter. “When your calendar is full and you don’t have time for yourself, you become frustrated and feel unfulfilled. Then everyone will suffer, starting with you.”Gabe Marusca Guest profileGabe Marusca, known as The Nomad Solopreneur, is a location-independent marketing strategist who established Digital Finest as a solo founder. When he’s not helping solopreneurs get more leads from their websites, you can find him swimming in the ocean, hiking through tropical forests, or interviewing remote solopreneurs around their business model on The Nomad Solopreneur Show. In his spare time, he writes a weekly newsletter with the same name that follows his mission to help 10,000 aspiring solopreneurs build location-free one-person businesses.Gabe offers an exclusive Free Landing Page Review for My Worst Investment Ever listeners.Worst investment everFor almost a year, Gabe slept only four hours a day in a bid to make enough money to make ends meet. He’d often find himself working in poor conditions. At one point, he was working with one of his legs in a bucket of ice because he’d had a minor football accident and couldn’t take a day off to recover.At the time, Gabe had a side hustle and a full-time job. He’d wake up every day at 3 am, work on his side hustle until 6 or 7 am, then commute to his full-time job and stay there for eight hours. Gabe would then go back home, study for one hour, and start working again on his business. He was eating at his work desk, not exercising, and had no social life. This caused his body to act out, but Gabe ignored it and kept on hustling. Gabe believed he was healthy and had the energy to keep going. All that overworking made him feel worse, and he developed a chronic illness.Lessons learnedPay extreme attention to your body.Having a long-term vision and patience is more sustainable than trying to gain fortune overnight.Stop putting too much time into the things that don’t matter.Andrew’s takeawaysSleep is critical, so don’t try to take from sleep to be productive.Eat good food.Exercise daily.Actionable adviceWhen planning your calendar for the next week or the next day, put that activity that fills you with energy and joy first. Block your most active hours with essential things, and all the others will start to add on.Gabe’s recommendationHabe recommends reading the book When the Body Says No. It will change the way you act and how you take care of yourself.No.1 goal for the next 12 monthsGabe’s number one goal for the next 12 months is to reach 10,000 aspiring solopreneurs through the Nomad Solopreneurs show and newsletter and help them build successful one-person businesses without feeling overwhelmed and unfulfilled.Parting words “Tell me how you spend your time, and I’ll tell you how successful you are.”Gabe Marusca [spp-transcript] Connect with Gabe MaruscaLinkedInTwitterInstagramWebsitePodcastAndrew’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

BIO: Giuseppe Grammatico is a franchising advisor who has owned several Master Franchise licenses and has enjoyed a successful franchising career, guiding over 200 individuals through business ownership, many for the first time.STORY: Giuseppe hired a full-service marketing company that managed everything from his website to emails and social media posts. Giuseppe gave the company complete control of his business, and his voice got lost. He also got virtually zero return from hiring the company.LEARNING: Pick the medium that works for you and stick with it. Publicity doesn’t mean revenue. “Just do your thing, have a plan going forward, and it’ll pay dividends down the road.”Giuseppe Grammatico Guest profileGiuseppe Grammatico is a franchising advisor who has owned a number of Master Franchise licenses and has enjoyed a successful franchising career, guiding over 200 individuals through business ownership, many for the first time. In addition to two decades in franchising, he also has 20 years of sales, marketing, and management experience. Book a free call with Giuseppe here.Worst investment everGiuseppe was looking to take some things off his plate, so he hired a full-service marketing company that did everything from website management to emails and social media posts. Giuseppe’s voice got lost in this process. He had given someone else control of his brand and what he was doing. It all got diluted. Giuseppe felt like he’d been thrown in a box with just about every other company in the marketing company’s portfolio. He also got virtually zero return from hiring the company. In fact, it ended up causing more confusion for his business. It took Giuseppe a long time to regain control of his brand and voice.Lessons learnedPick the medium that works for you and stick with it. Then, create all your content around that medium. If it’s just videos, then so be it, or if you’re a writer, write books and blogs.Do your thing, have a plan going forward, and it’ll pay dividends.Andrew’s takeawaysPublicity doesn’t mean revenue.Actionable adviceWrite your 12 Frequently Asked Questions, record your answers for each question in a video, and release it on all platforms. Repurpose the video into a blog post, snippets, LinkedIn carousel, and more.Giuseppe’s recommendationsGiuseppe recommends reading Traction: Get a Grip on Your Business to learn how to keep everything balanced. Even if you don’t own a business, the book will teach you about the intricacies of managing your KPIs daily.No.1 goal for the next 12 monthsGiuseppe’s number one goal for the next 12 months is to work less and help more people than he did in 2023. He’s outsourced his marketing by having someone produce, edit, and share the content that he’s creating.Parting words “Go for it. Life’s too short to be miserable. Take a chance on yourself, but do your due diligence and talk to people that own a business.”Giuseppe Grammatico [spp-transcript] Connect with Giuseppe GrammaticoLinkedinTwitterFacebookInstagramWebsiteBookPodcastAndrew’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

In 2023, I released about 160 My Worst Investment Ever podcast episodes, and this is a list of some of my and my listeners' favorites. I have also created a free “Top 27 from 2023” playlist where you can listen to and view this curated list for free. Just go to My Worst Investment Ever dot com and click the button that says, “Top 27 from 2023.” Since starting this podcast, I have published 760 episodes and look forward to continuing this journey in 2024! I welcome you on my journey “to help 1,000,000 people reduce risk in their lives.”27. Ep738: Neil Johnson – Take the Profit When You CanBIO: Neil Johnson is a renowned finance expert with over 30 years of experience in investment banking, merchant banking, and research analysis in Canadian and UK capital markets. He is the Executive Director and CEO of Duke Royalty, a $300 million alternative finance investment company listed on the London Stock Exchange.STORY: Neil invested in an internet company building website templates when the internet started. The company filed to go public, but the financiers kept delaying the process and never went public. Six months later, the company went to zero. Neil lost his entire investment.LEARNING: Take the profit when you can. Take some money out and play with the rest. Do your due diligence. “Try not to be overly greedy. There’s something about leaving a little on the table for someone else.” 26. Ep658: Jeroen Blokland – Know the Actual Business Outlook Before InvestingBIO: Jeroen Blokland is a multi-asset investor with a long-term track record. He worked at Dutch investment bank, Robeco for almost 20 and now runs his independent investment research company, True Insights. Find him on Twitter.STORY: Jeroen’s first investment was in a Dutch company selling PCs. He barely did any research or due diligence. The company reported a loss of $27 million in the same year Jeroen invested. It later went bankrupt, leaving him with a massive loss.LEARNING: Know the actual outlook of a company before investing. Diversify your portfolio. “90% of the investing population doesn’t know the actual outlook of a company.” 25. Ep674: Jesse Felder – Don’t Rationalize a Lousy TradeBIO: Jesse Felder started his career at Bear Stearns and co-founded a multi-billion-dollar hedge fund firm. He left Wall Street to focus on The Felder Report and hosts the Superinvestors podcast. Find him on Twitter.STORY: Jesse found a “cigar butt” stock that was cheap and performed extraordinarily well in just a few months after he took a sizable position. A friend convinced him to hold the stock long-term instead of short-term as planned. Government legislation affected the business, and Jesse lost about 50% of his investment.LEARNING: Don’t rationalize a bad trade; get out. Be very careful when you’re in a situation where the government is supporting an industry. “When you’re in a situation that’s not working out as you would hope, rather than dig the hole deeper, move on and find something different.” 24. Ep668: Jason Hsu – The Market Can Be Crazy for Longer than You Have the ConvictionBIO: Jason Hsu is the founder, chairman, and CIO of Rayliant Global Advisors, a global investment management group with over US$15+ billion in assets under management as of June 30, 2022. Find him on Twitter.STORY: Jason bet against the GameStop short squeeze and learned that John Maynard Keynes’ saying that “markets can remain irrational longer than you can remain solvent” still holds true.LEARNING: The market can be crazy for longer than you have the conviction to stay invested. Apply position constraints and diversify. “In the short run, the market can really stay crazy for longer than you have the money to stay on. And if you forget that, the market will remind you in as painful of a way as possible.” 23. Ep646: Praveen Kumar Rajbhar – Don’t Fall in Love with Your Own IdeasBIO: Praveen Kumar Rajbhar is an entrepreneur, founder, and CEO SkillingYou, an employability Skills Focused EdTech startup in rural India. Find him on Twitter.STORY: When Praveen started his first startup, he spent money to hire many people, buy a lot of gadgets, and rent a huge office space. The business collapsed in less than two years.LEARNING: Get the right mentor to guide you on how to make your startup a success. You don’t need a big team to be successful. Get on-time and accurate financial statements every month. “Having the right mentor will help you create a great company.” 22. Ep731: Robin Wigglesworth – You Can’t Outsmart the MarketsBIO: Robin Wigglesworth is the editor of Alphaville, the FT’s financial blog. From Oslo, Norway, he leads a team of writers who dig into anything deeply nerdy or delightful that they spot. Find him on Twitter.STORY: Robin invested in an ETF in Norway, a consumer durables company, and a fertilizer company after the 2008 financial crisis. These companies did incredibly well. Unfortunately, Robin reacted to short-term headlines when the European crisis started erupting and sold out.LEARNING: You can’t outsmart the markets. Always let your winners ride. “Always let your winners ride.” 21. Ep695: Jack Farley – Don’t Play in Markets You Don’t KnowBIO: Jack Farley is the host of the Forward Guidance podcast. He is interested in all things liquidity, macro, and central banking. Find him on Twitter.STORY: Jack bought a lot of put options on the markets and individual stocks, notably Tesla, in February 2020 when the market was bearish. When the market crashed in March 2020, Jack made so much money (on paper). But, soon, the market started going up, and his position dropped to zero.LEARNING: Don’t view the market as a place to create wealth; view it as a place to grow it. Don’t confuse being lucky with being an intelligent investor. “When you get a windfall, realize those gains, and at the very least, trim the position down.” 20. Ep739: William Cohan – Get the Numbers Right Before You InvestBIO: For nearly two decades William D. Cohan was a Wall Street investment banker and is now a New York Times bestselling author of seven non-fiction narratives, including Power Failure. Find him on Twitter.STORY: In 1990, William asked a trader to buy him 10 shares in Berkshire Hathaway, thinking a share was selling at $1,200, only to be told it was $12,000. He decided to keep two shares and sold the other eight. Had William invested $120,000 for the 10 shares in Berkshire Hathaway in 1990, they would be worth $7.4 million today.LEARNING: Get the numbers right before you invest. “I decided to write this book for people who wanted to know about how Wall Street works but were afraid to ask how things work.” 19. Ep655: Pim van Vliet – Just Because It’s Cheap Doesn’t Mean You Have to Buy ItBIO: Pim van Vliet is Head of Conservative Equities and Chief Quant Strategist at Dutch investment bank, Robeco. He is responsible for a wide range of global, regional, and sustainable low-volatility strategies. Find him on Twitter.STORY: Pim wanted to make more money investing, so he decided to go all in on a cheap stock. He believed the price would eventually go up as it had done a few years back. Unfortunately, the company went bankrupt, and Pim lost 75% of his investment.LEARNING: Don’t be overconfident and over-optimistic when investing. Just because it’s cheap doesn’t mean you have to buy it. “I thought taking risks gives you a return. That’s not always the case. Taking more risk could give you a lower return.” 18. Ep708: Phil Bak – Be Slow to Jump Onto BandwagonsBIO: Phil Bak is the CEO of Armada ETFs, a REIT-specialty asset manager that delivers customized solutions to REIT investors through ETFs, SMAs, and proprietary AI and machine learning REIT valuation models. Find him on Twitter.STORY: Phil got into baseball cards when he was 14. Rookie Greg Jeffries became the hype one year and was poised to be the next big thing. Phil bought the hype, sold all his cards, and invested in Jeffries’ cards. He believed cards would be worth $40 to $50 a piece in just a few years. It never happened because Jeffries’ career didn’t pan out, and the entire baseball card bubble collapsed.LEARNING: Be slow to jump onto bandwagons. Expect the unexpected, be prepared, and have a backup plan. Be diversified in as many different ways as possible. “As long as you can recognize your mistake, learn and grow from it, then you understand that investing is a risky business. That will make you a smarter investor.” 17. Ep719: David Kass – Don’t Invest in a Company Unless the CEO Owns a Large StakeBIO: Dr. David Kass received his Ph.D. in Business Economics from Harvard University and has published articles in corporate finance, industrial organization, and health economics. He teaches financial management at the University of Maryland and has been blogging about Warren Buffett for more than a decade.STORY: In his early 20s, David invested $2,000 in a company paying out high dividends. Only after he invested did he realize that none of the senior executives in the company owned its shares. Soon enough, the stock went down to zero due to accounting fraud.LEARNING: Only invest in a company if senior executives, especially the CEO, own a significant stake. The value of the CEO’s stock in his own company to his annual salary should be at least 3:1. “Look carefully at proxy statements and make sure the CEO and other senior managers have skin in the game, that their interests are likely aligned with yours and have a large stake through their stock holdings.” 16. Ep667: Shreekkanth Viswanathan – Qualitative Strengths of a Company Matter TooBIO: Shreekkanth (“Shree”) Viswanathan is the founder and portfolio manager of SVN Capital, a Chicago-based, concentrated, long-only, global equity-focused fund. Find him on Twitter.STORY: Shree’s biggest mistake was an error of omission. That is, after studying a particular business, he decided not to invest in it for various reasons. The stock turned out to be a multi-bagger a couple of years later.LEARNING: The qualitative strengths of a company are not always readily apparent in the financials. Get out and work in business; it will make you a better analyst and investor. Shree introduced me to a study of 64,000 companies from 1990 to 2020, which showed that 57% of these stocks underperformed one-month U.S. Treasury bills in compound returns. Also, the top-performing 2.4% of firms, or 1,500, accounted for all US$76trn net global stock market wealth creation over the same period. Here’s a link to the study. “If you don’t know who you are, the market is an expensive place to find out.” 15. Ep746: James M. Dahle – Don’t Buy More Insurance Than You NeedBIO: James M. Dahle, MD, is a practicing emergency physician who took an interest in personal finance and founded The White Coat Investor in 2011 to help fellow docs get a fair shake on Wall Street. Find him on Twitter.STORY: James got sold a whole life insurance policy in medical school. He invested in it, thinking it would be a good option, only to realize seven years later that it was not. When he pulled out of the policy, he lost 33% of the premiums he had paid.LEARNING: You must understand anything you buy. Don’t buy more insurance than you need. Focus on one catastrophe-related insurance product that’s reasonable. “Insurance is expensive, so don’t buy more than you need.” 14. Ep756: Peter Goldstein – Check Your Emotions at the DoorBIO: Peter Goldstein is a seasoned entrepreneur, capital markets expert, and investor with over 35 years of diverse international business experience. He is CEO of Exchange Listing LLC. Find him on Twitter.STORY: He and four others put a significant amount of money into opening a facility selling cannabis in Long Beach, California. This was a time when cannabis was in great demand and was in the process of being legalized for recreational purposes. At the time, there were no clear regulations, making compliance with the ever-changing rules costly to the point where the business was not making any profits.LEARNING: Check...

BIO: Johan Norberg is an author, lecturer, and historian of ideas from Stockholm, Sweden. His books on economics, politics, and history have been translated into more than 30 languages.STORY: Johan talks about capitalism and why it’s important.LEARNING: We should never lose sight of the benefits of capitalism. Capitalism is about peace, trust, and voluntary exchange, not war. “No matter what your long-term objective is, it’s better to be wealthy using resources in an effective manner and being more productive.”Johan Norberg Guest profileJohan Norberg is an author, lecturer, and historian of ideas from Stockholm, Sweden. His books on economics, politics, and history have been translated into more than 30 languages.In today’s episode, Johan discusses capitalism and its importance. Johan recently published his latest book, The Capitalist Manifesto. Like the title, the book is brilliant! Elon Musk said: “This book is an excellent explanation of why capitalism is not just successful, but morally right, especially chapter 4.” Have we lost sight of the benefits of capitalism?Without free markets and free trade, we’d probably be nowhere because it was only with the advent of higher productivity, open global markets, and free enterprise. Remember that when you give people more freedom to seek out opportunities to innovate, develop new business models, and exchange their best with the best of others, you have the machinery to reduce poverty and hunger worldwide.We must never forget this process because once people reach a certain threshold, they take wealth, opportunities, and technologies for granted and forget where they came from. This happens to many countries worldwide, electing the populace who use wealth without realizing that it’s not a pile of cash that happens to lie around.If we were to stop producing and innovating and start consuming and redistributing the wealth already on the planet, all of it would be gone in around four years. So wealth has to be created every day by hard work.Can government and capitalism co-exist?For your business to make a profit, you must make all the other groups happy. You have to satisfy your customers by giving them something they value more than the money they hand you. You must also pay your workers, suppliers, and those who lent you money. Then, and only then, if you made all these groups happy, and there’s something left for you, which will be heavily taxed, can you make a profit. The bigger your profit, the more good you’ve done to society.However, some profit is made not by competing over having the best goods and services but by having good connections with politicians and governments. They get subsidies and tariff protection from governments picking taxpayers’ pockets and handing them to businesses. That’s the opposite of a free market and capitalism—cronyism. It’s a horrible thing that can only end by stopping politicians from entering the game of business, picking winners, and deciding who gets what.Unfortunately, the future has no lobbyists, business organizations, or trade unions to defend them, only the incumbents and the old alternatives who constantly tailor all the regulations and policies to their needs and demands. Johan says the natural history of business regulation is always that you have, at first, a combination of people who want to do good. They see problems and want to improve upon things, so they want to regulate and ensure that it’s in the interest of society.But these well-meaning do-gooders often ally with people genuinely interested in their business models and the trade unions. So, in combination, they come forth with new regulations, constantly tailor-made to support incumbents in what they are doing. Then, the do-gooders move on to the next field to the next sector because they’ve succeeded. But those with a particular economic interest in those regulations stay behind because this is their sector. They constantly adapt it more to their own situation and to keep the competitors out. And that’s incredibly dangerous.Johan’s take is that businesses have one objective: to make the world a better place by being successful. By doing so, businesses ensure that our resources, machinery, and labor are being used as efficiently as possible. He doesn’t believe that successful businesses have to give something back to society as some apology for being successful in making a profit because the fact that they made a profit proves that they’ve done something for the community.Capitalism is about peace, trust, and voluntary exchangeJohan says that capitalism is for peace. The only people who benefit from war are politicians and companies that make weapons of war. Capitalism is the first economic system where you only get rich by enriching others, where everybody’s free to walk away from any deal.Capitalism is the first instance where if you want the resources of others, then you’d better give them something that they value even more. That’s a peaceful exchange, by definition.Johan adds that the first rule of good business is not to kill your customers and suppliers. People want to trade peacefully, and they have their best ideas, suppliers, and markets in other places. Only the dictators and the rulers wish to wage war.Johan insists that the natural way to make society a better place, in the long run, is to ensure that our resources are used decently and not wasted or used as people’s pet projects. So, no matter what your long-term objective is, it’s better to be wealthy by effectively using resources and being more productive.Parting words “I think capitalism deserves a manifesto and some praise because it’s tough work. It’s difficult to create wealth and opportunities for people. So, if you actually create value for other people, know that you’re a hero. That’s what I’m trying to do.”Johan Norberg [spp-transcript] Connect with Johan NorbergLinkedinTwitterInstagramFacebookWebsiteBookAndrew’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

BIO: Steve Faktor is a former Fortune-100 executive—turned entrepreneur, futurist author of Econovation, and podcaster. As Managing Director of IdeaFaktory Innovation, he helps tech, financial services, and consumer goods clients see and build the future.STORY: Steve joins the My Worst Investment Ever podcast again, this time sharing advice on how investors can see and build their investment futures.LEARNING: Try to understand the future by differentiating between noise and legitimate signals. Don’t let others impose on your story. Act in principle. “I would like to see more people acting in a principled way because even if you win, but you do it without principle, you will have lost because those same unprincipled methods will come back to haunt you.”Steve Faktor Guest profileSteve Faktor is a former Fortune-100 executive—turned entrepreneur, futurist author of Econovation, and podcaster. As Managing Director of IdeaFaktory Innovation, he helps tech, financial services, and consumer goods clients see and build the future.Steve is a LinkedIn Influencer with over 750,000 followers and has been featured in Forbes, Harvard Business Review, and The Wall Street Journal, among others. He’s a popular keynote speaker at major events and numerous corporations.The McFuture Podcast features Steve’s provocative predictions and prescriptions, as well as guests like Larry King, comedian Jim Jefferies, Governor Jesse Ventura, Nobel Economist Joseph Stiglitz, former ACLU President Nadine Strossen, Megachurch Pastor AR Bernard, and many more.Previously, Steve launched multiple $150m+ loyalty, payments, and e-commerce products & services as head of the American Express Chairman’s Innovation Fund, SVP at Citi Ventures, VP of Strategy & Innovation at MasterCard, and management consultant at Andersen.Steve joins the My Worst Investment Ever podcast again, sharing advice on how investors can see and build their investment futures. Listen to his previous episode: Take the Risk and Pursue Your Dreams.Understanding the future as a long-term investorIf you want to invest in three to ten-year opportunities, Steve says you need to know what the future will look like or at least have an idea of what that might be. However, as we try to understand the future, Steve says most of what we are reacting to is noise. You therefore, need to learn how to filter out what is signal and what is noise. Once you’ve identified which opportunities are legitimate signals and not noise, ask yourself where they could go. You’ll never know for sure. But again, that’s where you assign probabilities and say, this is likely to happen or more likely than something else. Now that you have an idea of where these things might go and what this future might look like, ask yourself how you’ll act in that future.Steve adds that there’s another equal danger to listening to noise, which is deafness. So there’s the hearing of everything that may not be relevant or important, and then there’s complete deafness. Steve says the vast majority of people are deaf. And so they’re not even hearing and understanding the signals or the noises. Such people are complete pawns in whatever the people who are active and responding to either signal or noise will determine.This kind of deafness is because some people there are institutionalized and believe that whatever system has worked for them is what is working. They don’t have an incentive to look any deeper. So they just putter along.Dealing with propagandaWhile propaganda is a negative characterization, and for good reason, Steve thinks personal narratives are important. The story that you tell yourself of how the world works and what matters to you is the story that will motivate you to do something. Now the question is, is it a good something or a bad something? Will it propel you forward to be a better person to help others to do things that are moral and unjust? Or will it push you to do harmful and destructive things, profiteering, or whatever else that may not be moral?So the question is, what is the story? What are the stories that we want to have versus the stories others want us to have? So, regarding propaganda, Steve believes that what matters is the imposition of other people’s stories into our lives and our response to them. Will you make their imposition part of your story, or do you have the ability to decide what your story should be? Steve says that’s tricky because we’re not equipped to deal with this level of propaganda individually.The victim-oppressor ideologySteve also talks about a terrifying ideological thing currently happening, especially in the education system. There are groups in education institutions about the victim-oppressor ideology. According to Steve, this ideology works by weaponizing empathy. It’s a brutal ideology, but its brutality is cloaked in justice and kindness. So, it’s the appearance of compassion and empathy. So people care about the victim but are prepared to stand behind or have the state impose the most incredible force to achieve the equity and kindness they think is just.Steve believes the only way to stop this ideology is to emphasize morality. We need a re-moralization because the former systems of morality have failed as they’ve outlived their useful life. Steve insists that empathy can be weaponized when it’s not paired with morality. But people are far more concerned with the appearance of goodness than the actuality and reality of virtue. And that is where the problem is. Combining the lack of morality, weaponized empathy, appearances, and the motivations on social media to present yourself a certain way becomes a deadly combination. And so what we desperately need is re-moralization.The thing that concerns Steve the most, he adds, is principles. Principles, just like morality, are unfortunately a luxury good. When you don’t have things, you aren’t too worried about being that moral. You’ll steal to get food for your child, for example. However, most people in the US have enough—not what they feel they should have—but are at a point where they can afford morality and principle. But they’re not buying either. Steve would like to see more people acting in a principled way because even if you win but it was without principle, you will have lost. Those same unprincipled methods will come back to haunt you.Parting words “What do you believe in? What do you think a moral person is? What do you think a principled person is? What do you think is right and wrong, and does it apply equally to the people you hate as to those that you love? That’s what I want people to think about because I think that’s the crisis of our time.”Steve Faktor Connect with Steve FaktorLinkedInTwitterYouTubeWebsitePodcastAndrew’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 PodcastFurther reading mentionedJohn Perkins, Confessions of an Economic Hit Man.

BIO: Eric Simonson is the Founder and CEO of Abundo, a financial planning firm that teaches and empowers people to take action and own their financial lives.STORY: In 2020, during the early days of COVID-19, Eric and his wife sold their home and bought a condo because they wanted to live downtown. They later sold the condo in 2023 and lost about 10% on that home purchase.LEARNING: Not all real estate investments are made equal. Focus on location and build quality. Don’t expect to flip new builds into a profit immediately. Don’t bet on a recovery of a big macro event. “Make sure you’re confident you’re gonna live in your new home long enough to recoup some of those initial buying costs.”Eric Simonson Guest profileEric Simonson is the Founder and CEO of Abundo, a financial planning firm that teaches and empowers people to take action and own their financial lives. After working as a traditional advisor for over a decade, Eric saw a need to help people who couldn’t work with a traditional financial advisor since most require having a certain amount of money to invest with them first. He left his corporate job and launched a different model, one where he was only paid for giving honest advice that benefited his clients, not him. He built Abundo around a Flat Fee and Advice-Only Financial Planning model, eliminating all conflicts of interest without overcharging for professional advice and using proven low-cost investments. His firm now guides over 450 clients in all areas of their financial lives.Worst investment everIn 2020, during the early days of COVID-19, Eric and his wife sold their home and bought a condo because they wanted to live downtown. They sold the condo in 2023 and lost about 10% on that home purchase.Lessons learnedThe condo market behaves differently than the single-family home market.Downtown markets behave differently than suburban markets.Not all real estate investments are made equal. Focus on location and build quality.Don’t expect to flip new builds into a profit immediately.Don’t bet on a recovery of a big macro event. It’s hard to guess what’s going to happen.Andrew’s takeawaysIt’s challenging to sell secondhand condos.Actionable adviceEnsure you’re confident you’ll live in your new home long enough to recoup some of those initial buying costs. Don’t spend more on a condo purchase than you’re comfortable spending. Understand the rules around the rentability—what happens if you want to get out of it? Can you rent it out?Eric’s recommendationsEric recommends checking out his company’s blog for fresh content and valuable resources.No.1 goal for the next 12 monthsEric’s number one goal for the next 12 months is to create the best culture and team he can make. If he does that, the team will work hard and serve clients well.Parting words “Thank you for having me, Andrew. I appreciate it.”Eric Simonson [spp-transcript] Connect with Eric SimonsonLinkedinTwitterInstagramWebsiteAndrew’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

BIO: Kimberly Flynn, CFA, is a founder and Managing Director of XA Investments, responsible for all product and business development activities.STORY: Kimberly put all her $2,000 savings into a single telecom-dedicated mutual fund at the peak of telecom valuations and saw it go down to 30 cents on the dollar.LEARNING: Don’t put all your savings into a single idea. Be diversified, especially when dealing with active manager selection. Know yourself and your risk tolerance. “You’ve got to feel comfortable making investment decisions, and if you’re not, get advice from somebody who can give you the right guidance.”Kimberly Flynn Guest profileKimberly Flynn, CFA, is a founder and Managing Director of XA Investments, where she is responsible for all product and business development activities. XA Investments has a proprietary closed-end platform and a consulting practice to assist clients with developing US and UK-registered closed-end funds. Previously, Kim was Senior Vice President and Head of Product Development for Nuveen Investments’ Global Structured Products Group.Kim received her MBA degree from Harvard University and her BBA in Finance and Business Economics, summa cum laude, from the University of Notre Dame in 1999. Kim earned the Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society of Chicago.Kim was recently selected to serve on the Notre Dame Wall Street leadership committee. She also serves as secretary of the Chicago Symphony Orchestra Women’s board executive committee and on the advisory board of Youth Guidance’s Becoming A Man program. She is an active member of the Harvard Club of New York City and the University Club of Chicago, where she serves on the Finance Committee.Worst investment everKimberly made a $2,000 investment into an Invesco telecom-dedicated mutual fund at the peak of telecom valuations. This was in 1999, and very quickly rode it down to 30 cents on the dollar. Kimberly was assured that the telecom sector would be hot based on the research she was doing at the time at Morgan Stanley. This was Kimberly’s first investment after graduating college.Lessons learnedBe diversified, especially when dealing with active manager selection.Know yourself and your risk tolerance.You’ve got to feel comfortable making investment decisions, and if you’re not, get advice from somebody who can give you the proper guidance.Andrew’s takeawaysSet a long-term plan and methodically contribute to it.Find your investment style and follow it.Actionable adviceTake 80% of the amount you plan to invest and put it into a diversified portfolio. Then, take 20% of it and buy a telecom or crypto fund because experimentation is sometimes helpful. If you lose 20% of your investment, you can recover.Kimberly’s recommendationsIf you’re working in the financial space, Kimberly recommends checking out resources on her website, XA Investments, to learn more about alternatives. She also recommends reading The Economist or The Financial Times to gain a global perspective.No.1 goal for the next 12 monthsKimberly’s number one goal for the next 12 months is to launch new products and take on new prospective consulting clients so she can grow her business.Parting words “Stay positive. Even if you make a mistake, you can always start again and take on a new challenge or a new investment opportunity.”Kimberly Flynn [spp-transcript] Connect with Kimberly FlynnLinkedinTwitterWebsiteAndrew’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

BIO: Peter Goldstein is a seasoned entrepreneur, capital markets expert, and investor with over 35 years of diverse international business experience.STORY: He and four others put a significant amount of money into opening up this facility in Long Beach, California, where cannabis was in great demand just when it was being legalized for recreational purposes. At the time, there were no clear regulations, making compliance with the ever-changing rules costly to the point where the business was not making any profits.LEARNING: Check your emotions at the door. Be cautious before you jump on a trend. Analyze and understand your risk. Get expert help if you don’t understand your investment. “Check your emotions at the door. Ego and greed don’t have interplay when making a sound investment.”Peter Goldstein Guest profilePeter Goldstein is a seasoned entrepreneur, capital markets expert, and investor with over 35 years of diverse international business experience. Throughout his career, he’s held pivotal roles, including CEO, chairman, investment banker, founder, board member, investor, and advisor to public, private, and emerging growth companies.He founded Exchange Listing, LLC, dedicated to facilitating growth companies’ listings on esteemed exchanges like NASDAQ and the NYSE.He also founded Emmis Capital, a specialized boutique fund investing in global small and microcap pre-IPO growth companies.Worst investment everPeter was living in California when cannabis was being legalized for recreational purposes. He and four others put a significant amount of money into opening up this facility in Long Beach, California, where cannabis was in great demand. They went through all of the necessities to get the license to comply and build the facility, not realizing the complexities and challenges that would result in the worst investment Peter has ever made.A few factors made Peter want to invest in a licensed facility that was going to manufacture and distribute recreational and medical cannabis products in the largest state in the US with the most history in the cannabis sector. One, there was a crowd and a popular trend for cannabis. Two, an emotional component of greed made him believe he could make an exponential return on his investment. Unfortunately, Peter didn’t think about the risk component, nor did he think about getting expert advice to guide him through understanding the industry and how to manage risk.Another thing that affected their business was that they were one of the first movers. And so, as they were learning, so were the regulators, and every time they learned something new or something changed, the business owners had to react to that. Also, there was not yet a proven market. There was a grey market, and there was certainly a black market. But there wasn’t a compliant market where it was understood what the accurate margins would be. Of course, there was significant demand. But after deducting all of the production costs, regulatory taxes, and distribution, the margins were slim to none.Lessons learnedCheck your emotions at the door. Ego and greed don’t have an interplay when making a sound investment.Be cautious before you jump on a trend. Don’t follow the crowd mindlessly just because everyone’s going in that direction.Analyze and understand your risk.Get expert help if you don’t understand your investment.Don’t believe your own thoughts about how unique your product or service is. Pressure tests ensure that what you think is received by the market is true.Andrew’s takeawaysIf you’re starting a business, know that you and your business will be a commodity. The only way to get out of that is by thinking about strategy, positioning, how you will enter this industry, what will be different about you, and having the discipline to follow that strategy.Actionable adviceDon’t believe the hype.Peter’s recommendationPeter recommends his new book, The Entrepreneur’s IPO: The Insider’s Roadmap to Taking Your Company Public, for any entrepreneur wanting to understand the IPO process. There are 12 chapters in the book. Each chapter features two industry professionals from NASDAQ, the New York Stock Exchange, the London Stock Exchange, etc., giving practical advice to fill a knowledge gap for entrepreneurs considering taking their companies public.No.1 goal for the next 12 monthsPeter’s number one goal for the next 12 months is to build a global community of entrepreneurs who want to learn and understand investing in micro and small-cap companies.Parting words “It’s been a pleasure. Good luck, everyone. Stay smart and stay safe.”Peter Goldstein [spp-transcript] Connect with Peter GoldsteinLinkedInTwitterAndrew’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