My Worst Investment Ever Podcast

BIO: Swen Lorenz is a passionate public equity investor and the face of Undervalued-Shares.com. With over 30 years of experience in investing, Swen has a knack for finding exciting investment opportunities in very unexpected places, which he discovers while traveling the globe.STORY: Swen had a 12.5% stake in a German fund manager performing well. A competitor wanted to buy up companies in that space and approached Swen to ask other shareholders if they would sell. The company didn’t like this, asked the regulator to look into Swen’s affairs, and accused him of all sorts of things. It ended with Swen narrowly losing a contentious proxy battle.LEARNING: Carefully consider the liquidity of the investments you’re holding. Going above the disclosure threshold as an investor is dangerous. “I’m a big proponent of investing into stuff that’s liquid and where you can get in and out quite easily, even under extreme circumstances.”Swen Lorenz Guest profileSwen Lorenz is a passionate public equity investor and the face of Undervalued-Shares.com. With over 30 years of experience in investing, Swen has a knack for finding exciting investment opportunities in very unexpected places, which he discovers while traveling the globe. His trademarks include extensive investigative reports, which give investors plenty of inspiration and ideas to work with.Worst investment everSwen invested in a German wealth and fund manager. The company fitted his investment profile; it seemed appealing to his common sense and had huge potential. Swen felt that he was ahead of everyone.The company was listed in the late 1990s through a quiet listing. Swen liked that because there were virtually no headlines about this listing. The company came with excellent fundamentals, had superb dividend yield growth prospects, and growth rates from the past were excellent. So Swen was basically buying growth at value prices. The company’s market cap was just 50 million euros, but it set out to conquer the German market for independent fund managers and wealth managers and take away market share from the banks. That was the big idea. And that was something Swen believed in.In 2003, during the Dotcom crash, a major investor was forced to liquidate. Swen bought as many shares as possible and got a 10% stake in the company, eventually 12.5%. That meant that suddenly, he was on the public register. It also meant that he was highly visible. Swen had bought most of the stock at a pretty low price.The investment went great until a competitor wanted to buy up companies in that space. The competitor felt it was a great idea not to approach the CEO, the major shareholder, but to instead call Swen first. He asked him to do a survey as an independent entity and speak to shareholders to see if they were willing to sell.Little did Swen know what he would kick off by having that conversation with other shareholders. He informally approached the CEO and a variety of other large shareholders. The CEO Swen spoke to was not entirely straightforward. He said he wanted to sell, but that was not the case. The other stakeholders, however, wanted to sell. For most of them, it was just a matter of receiving the highest offer possible. But it all became complicated and contentious.The company eventually asked the regulator to look into Swen’s affairs and accused him of all sorts of things. It ended with Swen narrowly losing a contentious proxy battle. He spent half a million euros on lawyers. He was in the public and had the regulator looking into him. As a result, many personal things also happened, like losing friendships. Taking up the competitor’s request was a complete waste of Swen’s time and reputation.Lessons learnedCarefully consider the liquidity of the investments you’re holding.Going above the disclosure threshold (3%) as an investor is dangerous because it influences your thinking, and your ego gets involved.Carefully consider whether you want to be involved in activism because it’s complicated, time-consuming, and expensive.Andrew’s takeawaysLearn to spot narcissists and psychopaths, and educate yourself about that.Be very careful about the size of your liquidity, and expect that you will get a huge upside for taking on that liquidity risk.You must be able to outlast an irrational market when it’s not behaving as you think it should be.Swen’s recommendationsSwen recommends checking out The Activist Investor (TAI), a news aggregation website. Join the email list, and you’ll occasionally receive emails with the most recent articles about activist investing. You’ll also get academic research and quirky articles from niche publications that you wouldn’t usually come across—all for free.Swen also publishes a free weekly newsletter, Weekly Dispatches. It helps its readers shape their worldview, teaches new investment strategies, and gives new ideas that can be researched further.No.1 goal for the next 12 monthsSwen’s number one goal for the next 12 months is to become a better writer and write more for his website while having fun.Parting words “Keep listening to podcasts like this one because, as an investor, you never stop learning, and you have to learn from others.”Swen Lorenz [spp-transcript] Connect with Swen LorenzLinkedInTwitterWebsiteBooksAndrew’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: Paul Merriman is a nationally recognized authority on mutual funds, index investing, and asset allocation. After retiring in 2012 from Merriman Wealth Management, which he founded in 1983, Paul created The Merriman Financial Education Foundation, dedicated to providing investors of all ages with free information and tools to make better investment decisions.STORY: Paul has had a series of bad investments, and they were all driven by emotions. It wasn’t until Paul got the emotion out of that process that his money started to grow.LEARNING: The first five years of the money you put away can, theoretically, represent 40% of the value of your portfolio over the long term. Start investing early so that you can benefit from the compounding effect. “It was not until I got the emotion out of the investing process that I started to get the money to truly grow. And to realize that the greatest success in this process is time.”Paul Merriman Guest profilePaul Merriman is a nationally recognized authority on mutual funds, index investing, and asset allocation.After retiring in 2012 from Merriman Wealth Management, which he founded in 1983, Paul created The Merriman Financial Education Foundation, dedicated to providing investors of all ages with free information and tools to make better investment decisions.Paul is the author of eight books, including We’re Talking Millions! 12 Simple Ways to Supercharge Your Retirement.At his website, he provides over 700 articles, podcasts, and videos, plus recommended mutual fund and Best-In-Class ETF portfolios at Vanguard, Fidelity, and Schwab.Worst investment everPaul has had several bad investments, and they all look alike. Some of these mistakes were in the commodities market, others were loaning money to friends, and some were investing in early small companies. Other mistakes involved trying to trade the market and make quick money. Though different, all these mistakes had one thing in common: they were driven by emotions. It wasn’t until Paul got emotions out of that process that his money started to grow.Lessons learnedThe first five years of the money you put away can, theoretically, represent 40% of the value of your portfolio over the long term.Andrew’s takeawaysIf you don’t get it right at a young age, your time will run out and you won’t get the value of compounding.Paul’s recommendationsPaul recommends reading his free book We’re Talking Millions! 12 Simple Ways to Supercharge Your Retirement. He also recommends checking out BootCamp for Investors on his website, where you’ll find eight topics that will teach you the essential things you need to know, including how much you need in bonds, what equity asset classes you should have, how to take money out of your investments at retirement, and more.No.1 goal for the next 12 monthsPaul’s number one goal for the next 12 months is to get his new program at Western Washington University up and running.Parting words “The payoff for getting a good education is the biggest return you’re ever going to get. So find yourself some good teachers.”Paul Merriman [spp-transcript] Connect with Paul MerrimanLinkedInFacebookTwitterYouTubeWebsitePodcastBooksAndrew’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: Dr. Vikram Mansharamani is a global trend-watcher who shows people how to anticipate the future, manage risk, and spot opportunities.STORY: Vikram invested in a small commercial condo that he hoped to rent to Ph.D. students, but they weren’t interested. He had to sell it after a few years of no income. He took a 50% loss.LEARNING: Liquidity is not a constant. If the timing of your thesis is off, then you’re wrong. The market can stay irrational longer than you can remain liquid. “As long as you have liquidity available, or the option to redeploy or invest more, then you’re going to be fine because, over time, investments work out. It’s just getting caught at the wrong time and the wrong illiquid investment that could really hurt you.”Vikram Mansharamani Guest profileDr Vikram Mansharamani is a global trend-watcher who shows people how to anticipate the future, manage risk, and spot opportunities. He is the author of THINK FOR YOURSELF: Restoring Common Sense in an Age of Experts and Artificial Intelligence and BOOMBUSTOLOGY: Spotting Financial Bubbles Before They Burst.He is a frequent commentator on issues driving disruption in the global business environment.Vikram’s ideas and writings have also appeared in Bloomberg, Fortune, Forbes, The New York Times, and many other publications.LinkedIn twice listed him as their #1 Top Voice for Money, Finance and Global Economics and Worth and profiled him as one of the 100 most powerful people in global finance.Millions of readers have enjoyed his unique multi-lens approach to connecting seemingly irrelevant dots.Worst investment everIn 2008, Vikram invested in a small commercial condo in Southern Maine. He had done a lot of analysis on the investment, and his thesis was that this was an increasingly valuable asset.At the time, Vikram was working on his Ph.D. and figured he would rent the space to other students. He was sure demand would be excessive. Unfortunately, things didn’t go as Vikram had planned. Vikram was stuck with an illiquid asset that brought no income. Yet, he was paying condo fees and other recurring expenses. Vikram lost faith in the condo and sold it in 2015 at a 50% loss. What was worse than the loss is that the property is now worth about 5x what he paid. So, Vikram’s thesis was correct. If only he’d believed and stuck with it.Lessons learnedLiquidity is not a constant. Something that you think is liquid may become highly illiquid at certain points in time.You won’t always have the duration for holding you think you do, so have enough flexibility.If the timing of your thesis is off, then you’re wrong.Andrew’s takeawaysThe market can stay irrational longer than you can remain liquid.An asset’s liquidity and your need for liquidity change over time.First, you must have a thesis, then invest in that thesis, and stay in that thesis, and most importantly, the thesis needs to be right for you to be successful.Be careful when investing in illiquid assets, such as property, because you can’t get out of it that easily.Actionable adviceMaintain optionality when you’re younger. You may think you have the greatest investment, and it’s illiquid, but you get stuck in it. And if things go down, you lose the option value of buying something else at a lower price.Vikram’s recommendationsIf you want to get up to speed on Vikram’s current views and the complete archive of all his writings, check out his substack.No.1 goal for the next 12 monthsVikram’s number one goal for the next 12 months is to write another book, particularly about the lessons of being a generalist in a land of specialists.Parting words “At the end of the day, the world is filled with specialists, and there could be a lot of value in being a generalist. So look broad, as much as you take the time to look deep.”Vikram Mansharamani [spp-transcript] Connect with Vikram MansharamaniLinkedInTwitterWebsiteBooksSubstackAndrew’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: Gino Barbaro is the co-founder of Jake & Gino. He is an investor, business owner, author and entrepreneur. As an entrepreneur, he has grown his real estate portfolio to over 2,120 multifamily units & $280,000,000 in assets under management.STORY: Gino invested and lost $172,000 in mobile home parks that he didn’t even know what they looked like or where they were.LEARNING: Know your values before you form a business partnership with anyone. Do due diligence to understand what you’re investing in. “A person with money needs a person with experience. The person with the experience gets the money. The person with the money gets the experience.”Gino Barbaro Guest profileGino Barbaro is the co-founder of Jake & Gino. He is an investor, business owner, author and entrepreneur. As an entrepreneur, he has grown his real estate portfolio to over 2,120 multifamily units & $280,000,000 in assets under management.Gino and his partner, Jake, are teaching others how to do the same through Jake &​ Gino, the premier multifamily real estate education community. Their students have closed over 71,000 units and have $4 Billion in deal volume!Gino is the best-selling author of three books, “Wheelbarrow Profits,” “The Honey Bee,” and “Family, Food and the Friars.” He currently resides in St. Augustine, Florida, with his beautiful wife Julia and their six children.Worst investment everIn 2005, Gino had $172,000 sitting in the bank. His friend and accountant told him of an investment from a gentleman he’d been investing with for years. The gentleman was doing mobile home parks.Though Gino knew nothing about mobile home parks, he was interested in the investment. He met the gentleman, who came driving a gold Maserati. He pitched him this syndicated deal. The parks were in Florida, but Gino never went to see them. He believed the gentleman’s word.The first six months were great, and Gino was getting distribution checks. Six months later, the checks stopped. Gino and his accountant decided to find out what was happening. They searched the parks online, and what they saw was awful. The parks were in the middle of nowhere. No one would want to buy them.Lessons learnedBuy right, manage right, and finance right.Know your values before you form a business partnership with anyone.Do due diligence to understand what you’re investing in. If you don’t know how to do it, hire an attorney or find a company to help you.Learn each process before you invest in it.Learn how to underwrite an asset to see if the numbers make sense.Decide your investment goals and what you are trying to accomplish with each investment because it’s not always about chasing the highest yield. Ask yourself if each investment aligns with your goals,Andrew’s takeawaysNever invest with somebody who approaches you with an investment. Do your own research.Illiquid types of investments require much more due diligence than liquid ones.Actionable adviceGet on the plane and fly down to the property. Take some pictures, then make your decision whether to invest or not.Gino’s recommendationsGino recommends listening to podcasts on his website to listen to interviews of thought leaders, people who think outside the box, and entrepreneurs. The website also has a ton of other valuable resources.No.1 goal for the next 12 monthsGino’s number one goal for the next 12 months is to close another 300 real estate deals. He also hopes to continue to scale the education company and bring more students on.Parting words “Continue to listen to this podcast because you’re going to hear a lot more horror stories in the weeks, months, and years to follow. It’s only beginning.”Gino Barbaro [spp-transcript] Connect with Gino BarbaroLinkedInTwitterFacebookInstagramWebsiteBooksPodcastAndrew’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 mentionedMorgan Housel, The Psychology of Money: Timeless Lessons on Wealth, Greed, and HappinessVicki Robin, Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence

BIO: 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 plain delightful that they spot in markets, business, or the global economy.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.”Robin Wigglesworth Guest profileRobin 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 plain delightful that they spot in markets, business, or the global economy. He is also the author of Trillions, a book on the past, present, and future of passive investing and how it is reshaping financial markets.Worst investment everRobin was a Middle East correspondent for The Financial Times after the financial crisis. The crisis hit later in the Middle East because of the oil price boom. Until the collapse of Lehman, the Gulf was partying. Robin was impressed with how quickly central banks reacted in the last quarter of 2008 after the Lehman collapse.As a journalist, Robin couldn’t invest in any company he covered, even if it was a broad index fund. But because Robin was in the Middle East, there was a lot of this stuff that he didn’t cover.In the Gulf, the dirham was pegged to the dollar, so it was suddenly worth a lot more. Robin didn’t have much money, but he had banked the odd few special payments he’d received for special reports on the FT. He put that money in an ETF in Norway, a consumer durables company called Orkla, and a fertilizer company called Yara.Robin’s choice of investments was brilliant because these companies did incredibly well. Unfortunately, Robin reacted to short-term headlines when the European crisis started erupting and sold out. However, he kept Yara because he figured the world would always need fertilizers to grow food. But Yara got embroiled in a corruption scandal.Had Robin kept that small pot of money running to date, he’d now have a far larger pot of money.Lessons learnedYou can’t outsmart the markets as a whole.If you want to trade, you must find something you know and nobody else has discovered.Always let your winners ride.Andrew’s takeawaysThe average investor in America destroys 30 to 50% of the value that they could have captured in, for example, an index fund simply because of their timing decisions.First, you have to be able to see the opportunity, then have cash and the flexibility to invest in it, and finally, have the guts to actually pull the trigger and do it and let it ride.Robin’s recommendationsRobin recommends reading his book Trillions and registering for free to read Alphaville and learn about passive investing.No.1 goal for the next 12 monthsRobin’s number one goal for the next 12 months is to write another book on the history of the bond market.Parting words “Buy my book, buy index funds, and most of all, stay boring. I think keeping it simple is the best thing.”Robin Wigglesworth [spp-transcript] Connect with Robin WigglesworthLinkedInTwitterWebsiteBooksAndrew’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: Sheryl Garratt is a coach who helps creative professionals do their best work - while also living their best lives. She was a journalist for more than 30 years, the editor of The Face and The Observer magazines, and has published several books, including Adventures In Wonderland, a history of British nightclubs.STORY: Sheryl’s perfectionism, which she wore as a badge of honor, has made her miss out on great opportunities over the last couple of years.LEARNING: Shove your ideas out there and see what happens. In business, you should be iterating often. “Shove your ideas out there and see what happens. If you just sit there reworking the same thing repeatedly, you’ll overwork it and kill the life out of it.”Sheryl Garratt Guest profileSheryl Garratt is a coach who helps creative professionals do their best work - while also living their best lives. She was a journalist for more than 30 years, the editor of The Face and The Observer magazines, and has published several books, including Adventures In Wonderland, a history of British nightclubs.Sheryl has a free 10-day course to help writers, artists, musicians, designers, makers, and creatives of all kinds grow their creative business. Sign up for it at free 10-day course.Worst investment everSheryl’s perfectionism has been her worst investment over the years. She used to wear her perfectionism as a badge of honor and thought that meant something exceptional. But it only cost Sheryl dearly. It stopped her from doing things that might have been fun and wasted a lot of her time over the years.The ideas that Sheryl spent so much time trying to perfect are the ones she never completed. She must have had over 100 book ideas she never wrote because she couldn’t perfect them. At one point, a major publisher offered Sheryl quite a lot of money for a nonfiction book and asked her to pitch them ideas. By the time Sheryl had honed all those ideas, that editor had moved on and wasn’t working at the publishing house anymore. Sheryl has also had prestigious magazines ask her to send ideas so she can work for them. She’d take too long to work on the ideas, and the magazines would change direction.Lessons learnedShove your ideas out there and see what happens.Pitch to people you think are way out of your league and see what happens.Andrew’s takeawaysIn business, you should be iterating often.Actionable adviceDo it quickly and set restraints on whatever you’re trying to do. For example, if you’re trying to write something, give yourself an hour to write it, and then put it out in some reasonably low-risk outlet such as a blog or Medium. Then do it again the next week, the week after that, and the week after that, and you’ll get better. But if you just sit there rewriting the same thing repeatedly, you’ll overwork it and kill the life out of it.Sheryl’s recommendationsSheryl recommends her free 10-day course that outlines how to set up and grow a creative business. The course is relevant for those starting out and also for more established business owners who want a business health check. The course is just 10 emails in 10 days.No.1 goal for the next 12 monthsSheryl’s number one goal is to finish her book by the 31st of December this year. Ready or not, she’ll publish the book next March.Parting words “Just do it.”Sheryl Garratt [spp-transcript] Connect with Sheryl GarrattLinkedInInstagramFacebookTwitterWebsiteBooksAndrew’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: Kim Ades is the Founder of Frame of Mind Coaching™ and Co-Founder of The Journal That Talks Back™. Recognized as a pioneer in leadership coaching and thought mastery, Kim uses her unique philosophy and quirky coaching style to help leaders identify their blind spots and learn to direct their thinking to achieve extraordinary results.STORY: Kim had partnered with a friend and her ex-husband to start a business, but as her marriage unraveled, the partnership became hard. Kim decided to sell the company to her husband but didn't take the time to understand the deal. Three years later, Kim learned that she owed the government $300,000 in taxes from the business she'd sold.LEARNING: When things are very stressful, it's a good idea to slow down instead of speeding up. Don't be forced into a decision without understanding all the elements. "If you don't understand what's going on, don't just quickly make a decision. Slow it down, get your information, and make sure you understand fully what's going on."Kim Ades Guest profileKim Ades is the Founder of Frame of Mind Coaching™ and Co-Founder of The Journal That Talks Back™. Recognized as a pioneer in the field of leadership coaching and thought mastery, Kim uses her unique philosophy and quirky coaching style to help leaders identify their blind spots and learn to direct their thinking to achieve extraordinary results. Author, speaker, entrepreneur, coach, and mom of five, Kim's claim to fame is teaching her powerful coaching process to leaders, executives, and entrepreneurs worldwide.Worst investment everWhen Kim started her first company, Upward Motion, she had two business partners. One was a good friend, and the other was her ex-husband. The company built simulation-based assessments to help people make better hiring decisions.As Kim's marriage was unraveling, maintaining the partnership became harder and harder. She ended up selling her business to her ex-husband. The problem is that Kim didn't know anything about selling businesses. She was pretty young and didn't know about taxes or tax law. Kim was in a state of upheaval and just wanted to get out and have peace in my life. So, Kim made a deal without really understanding it. All she knew was she was getting out of the mess with a lot of money. It was still hard for Kim because she was very attached to the business.About three years later, Kim was contacted by Revenue Canada, notifying her that she hadn't paid her tax bill and owed $300,000. Kim's hastily made decision had led her to this point.Lessons learnedWhen things are very stressful, it's a good idea to slow down instead of speeding up.Don't be forced into a decision without understanding all the elements.If you don't know what's happening, slow it down, get your information, and make sure you know entirely what's happening.Don't be pressured into something that is not the right fit for you.Andrew's takeawaysIf you can sit through the pressure, you will win.Actionable adviceIf you're feeling pressured to make a decision, first ask yourself why, what's the rush, and what's the belief you have that makes you feel like there's an urgency to making this decision. Find out where the pressure is coming from and the facts around it. When does this decision need to be made? Are you prepared to make the decision?Kim's recommendationsKim recommends journaling because it allows you to put your thoughts down and look at them and see if this thinking leads you to where you want to go. Kim believes journaling is beneficial to help guide you toward your destination.No.1 goal for the next 12 monthsKim's number one goal for the next 12 months is to create a journal-based coaching course for the coaching community.Parting words "Andrew, thank you for all the work that you do. I hope to meet some of your listeners face-to-face at some point."Kim Ades [spp-transcript] Connect with Kim AdesLinkedInInstagramFacebookTwitterYouTubeWebsitePodcastBookAndrew’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: Nick Hutchison is the author of Rise of the Reader: Strategies for Mastering Your Reading Habits and Applying What You Learn and the founder of BookThinkers. This growing 7-figure digital marketing agency serves mission-driven authors.STORY: Nick envisioned the first iteration of BookThinkers to be a grand mobile application. He got partners together, and they started working on the idea. Without much research or due diligence, the partners contracted an Argentinian company to build the app. Unfortunately, the company in Argentina went out of business under a year later.LEARNING: Failure is a great thing. Before you dive into a big idea, have a proof of concept and spend tens of thousands of dollars on it. Do more due diligence and understand the process before jumping into it. “I think that failure is a great thing. You should fail often and fast. Then make iterations and change.”Nick Hutchison Guest profileNick Hutchison is the author of Rise of the Reader: Strategies for Mastering Your Reading Habits and Applying What You Learn and founder of BookThinkers, a growing 7-figure digital marketing agency that serves mission-driven authors.At the age of 20, Nick discovered the world of personal development and quickly used the books he was reading to improve every aspect of his personal and professional life. Now, Nick has dedicated his life to helping millions of readers take action on the information they learn and rise to their potential.Nick’s podcast, BookThinkers: Life-Changing Books, features captivating interviews with world-class authors such as Grant Cardone, Lewis Howes, and Alex Hormozi. During these insightful discussions, Nick delves into the pages of their books, uncovering practical and transformative takeaways for his motivated audience.Worst investment everAs Nick was getting ready to graduate college, he knew he wanted to start a business and make a splash in entrepreneurship. Luckily, Nick had a safety net—a software sales rep full-time job that allowed him to make a lot of money right after graduating. So Nick had a bit of cash to spend on a side hustle idea he’d had for a while.The first iteration of BookThinkers was supposed to be a grand mobile application that readers could use to categorize their favorite takeaways from each book they read, follow each other, and see the trending books within the platform. It was supposed to be a much better version of what Good Reads is today.Nick connected with a couple of friends and started this business. The first order of business was how to build a mobile application. They found a firm in Argentina that would create the mobile application for them. They put all of their money that we’ve got into this mobile app.The company in Argentina went out of business under a year later. The tech built so far wasn’t working, so they couldn’t test it. Nick and his partners never found a product market fit and had no successful monetization after spending tens of thousands of dollars on the mobile app.Lessons learnedFailure is a great thing. Fail often and fast, then make iterations and changes.Have a proof of concept before you dive into a big idea and spend tons of money on it.Do more due diligence and understand the process before jumping into it.Andrew’s takeawaysIf you have to have a mobile app, the best way to do it is to create a tiny MVP that does one small thing and then release it to an audience.Actionable adviceSpeak to potential mentors or people who have severally done what you want to do and have also helped other people do it as well. Have them show you the roadmap.Nick’s recommendationsNick recommends reading $100M Offers: How To Make Offers So Good People Feel Stupid Saying No. In the book, the author Alex Hormozi talks about how 20% of your customers are willing to pay five times more if you could provide more value. He teaches how to have the same revenue but work with 1/5 of your clientele, serve them better, work slower, and offer more value.Nick also recommends pre-ordering his book Rise of the Reader: Strategies for Mastering Your Reading Habits and Applying What You Learn. The book has the power to help readers rise to their potential.No.1 goal for the next 12 monthsNick’s number one goal for the next 12 months is to make seven figures in revenue. He also plans to have a kid in the next 12 months.Parting words “The right book at the right time can change your life if you can apply it the right way. So, just remember that our life experiences aren’t as unique as we think they are. Billions of people have lived before us; millions of them have written books, and thousands of those books might be able to solve your problems.”Nick Hutchison [spp-transcript] Connect with Nick HutchisonLinkedInInstagramWebsitePodcastBookAndrew’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 this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Today, they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this tenth series, they discuss mistake number 18: Do you believe your fortune is in the stars? And mistake number 19: Do you rely on misleading information?LEARNING: Stop thinking about having your fortune in the stars. Avoid actively managed funds. Be cautious when evaluating claims about fund performance. “Stop thinking about having your fortune in the stars. Morningstar won’t help you.”Larry Swedroe In today’s episode, Andrew continues his discussion with Larry Swedroe, head of financial and economic research at Buckingham Wealth Partners. You can learn more about Larry’s Worst Investment Ever story on Ep645: Beware of Idiosyncratic Risks.Larry deeply understands the world of academic research and investing, especially risk. Today Andrew and Larry discuss a chapter of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this tenth series, they discuss mistake number 18: 18: Do you believe your fortune is in the stars? And mistake number 19: Do you rely on misleading information?Did you miss out on previous mistakes? Check them out:ISMS 8: Larry Swedroe – Are You Overconfident in Your Skills?ISMS 17: Larry Swedroe – Do You Project Recent Trends Indefinitely Into the Future?ISMS 20: Larry Swedroe – Do You Extrapolate From Small Samples and Trust Your Intuition?ISMS 23: Larry Swedroe – Do You Allow Yourself to Be Influenced by Your Ego and Herd Mentality?ISMS 24: Larry Swedroe – Confusing Skill and Luck Can Stop You From Investing WiselyISMS 25: Larry Swedroe – Admit Your Mistakes and Don’t Listen to Fake ExpertsISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?ISMS 27: Larry Swedroe – Familiar Doesn’t Make It Safe and You’re Not Playing With the House’s MoneyISMS 29: Larry Swedroe – The Shiny Apple is Poisonous and Information is Not KnowledgeMistake number 18: Do you believe your fortune is in the stars?According to Larry, people are still relying heavily on Morningstar ratings. When Morningstar increases its rating, cash tends to flow in, and money flows out when it lowers its rating. Morningstar’s ratings, similar to film critics’ ratings, are widely used by investors to determine fund performance and which funds to invest in.However, these ratings are not a reliable way to choose your investment. Even Morningstar eventually reported in a study that they found that the fund’s expense ratio was a better predictor than Morningstar’s ratings. According to Larry, that’s precisely what you would expect if markets are efficient, which means that good stock pickers can’t exploit the market.So, people who rely on Morningstar ratings are just fooling themselves. There’s no informational value in Morningstar’s rating system.Larry says that investors are best served by simply avoiding actively managed funds. Choose the asset classes you want to invest in, then do some research. Look for low-cost funds/instruments that give you the most exposure per unit of cost. Stop thinking about having your fortune in the stars. Morningstar won’t help you. Neither will an advisor who’s recommending actively managed funds.Mistake number 19: Do you rely on misleading information?In this chapter, Larry discusses the issue of misleading information in the investment industry, particularly concerning mutual fund returns, and highlights two biases that distort reported returns.According to Larry, survivorship bias is where poorly performing funds disappear over time through mergers with better-performing funds. However, the reported performance of the merged funds doesn’t reflect the poor returns of the disappearing funds. This bias leads to an overestimation of average fund returns, as demonstrated by an example from 1986 to 1996, where the disappearance of underperforming funds led to an apparent improvement in overall returns.Larry mentions a second bias, incubator funds. These are newly created funds that mutual fund families seed with their capital and keep away from public scrutiny. Fund companies often bring public only the fund with the best performance from a group of incubator funds, effectively hiding the underperforming ones. The SEC’s allowance for not reporting the pre-public performance of incubator funds leads to potential distortions in reported returns. Examples of abuse, such as allocating hot initial public offerings (IPOs) to small incubator funds to enhance their returns, further exacerbate this bias.Larry recommends prohibiting advertising returns before a fund is available to the public. This could help mitigate the potential for biased reporting. Additionally, he advises investors to be cautious when evaluating claims about fund performance and to ensure that reported data doesn’t contain the two biases he’s mentioned.About Larry SwedroeLarry Swedroe is head of financial and economic research at Buckingham Wealth Partners. Since joining the firm in 1996, Larry has spent his time, talent, and energy educating investors on the benefits of evidence-based investing with an enthusiasm few can match.Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has authored or co-authored 18 books.Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television on various outlets.Larry is a prolific writer, regularly contributing to multiple outlets, including AlphaArchitect, Advisor Perspectives, and Wealth Management. [spp-transcript] Connect with Larry SwedroeLinkedInTwitterWebsiteBooksAndrew’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.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever PodcastFurther reading mentionedLarry Swedroe and RC Balaban, Investment Mistakes Even Smart Investors Make and How to Avoid ThemPhilip E. Tetlock, Expert Political Judgment: How Good Is It? How Can We Know?Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral EconomicsLarry Swedroe, Think, Act, and Invest Like Warren Buffett: The Winning Strategy to Help You Achieve Your Financial and Life Goals

BIO: Laurie Barkman, the business transition sherpa, is the former CEO of a $100 million revenue company that was sold to a Fortune 50 company.STORY: Though Laurie has had a flourishing career in the startup world, she regrets not spending that time building her own business.LEARNING: Quit often, quit fast. Don’t hesitate, or stay in something that doesn’t bring you value. Pay attention to your instinct; don’t be afraid to act on it. “Gravitate towards your strengths and follow your passions if you’re clear about what they are.”Laurie Barkman Guest profileLaurie Barkman, the business transition sherpa, is the former CEO of a $100 million revenue company that was sold to a Fortune 50 company.Laurie guides business owners through the often overwhelming process of transition planning. As a mergers and acquisitions intermediary, she facilitates sell-side and buy-side transactions in the lower middle market.Laurie is the Amazon best-selling author of The Business Transition Handbook: How to Avoid Succession Pitfalls and Create Valuable Exit Options and hosts the award-winning podcast Succession Stories, rated in the top 2.5% of podcasts globally.Laurie earned an MBA from Carnegie Mellon University and a bachelor’s from Cornell University. She received a professional designation from The Alliance of Mergers & Acquisitions Advisors.Get a complimentary business assessment. See how an acquirer would evaluate your business, enabling you to focus today on what will be important down the road. Learn what changes could double the value of your business.Worst investment everWhen Laurie was studying for her MBA, she also took entrepreneurship courses and was the president of the entrepreneurship club. Laurie was excited about graduating and going into entrepreneurship. But, she didn’t have the big idea or tech skills. This was in the late 90s when it was all about tech startups. Laurie also lacked the risk profile. So, instead of starting a business or buying an existing one after her MBA, she joined a startup, which in and of itself was a good thing.Looking back at her career, most of the positions Laurie had helped her add value and grow professionally. But one or two roles made her realize that she should have invested her time in building her own business instead of going into employment.Lessons learnedTry to figure out what you’re good at, what you’re not, and what you enjoy and don’t before settling on a permanent career path.Gravitate towards your strengths and follow your passions if you’re clear about them.Andrew’s takeawaysQuit often, quit fast. Don’t hesitate, or stay in something that doesn’t bring you value.Pay attention to your instinct; don’t be afraid to act on it.Actionable adviceIt’s important to trust your instincts. If you’re feeling unsure about something, trust that little voice.Laurie’s recommendationsLaurie recommends her book, The Business Transition Handbook, for business owners with questions about business transition at any stage of their entrepreneurial journey. The book has a lot of content, resources, and ideas for how to help you build your business with the mindset of creating value. Every chapter is a succession pitfall to avoid and ends with an action summary and tips on your next steps. There’s great content, stories, and case studies for companies that have had some challenges and successes along the way.Laurie also recommends checking out her website for other resources, including two assessments you can take. One is a business assessment to understand your business’s strengths, opportunities, or risks. And if you share your financial information, you’ll also get a valuation of your business. The other assessment is for personal transition readiness to help you understand the emotional side of things.No.1 goal for the next 12 monthsLaurie’s number one goal for the next 12 months is to help a million business owners with business transitions. She’d like to take her book and make a course.Parting words “Keep on working on your transition; you’ll always remember the value it brought you.”Laurie Barkman [spp-transcript] Connect with Laurie BarkmanLinkedInFacebookTwitterInstagramYouTubeWebsitePodcastBookAndrew’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