My Worst Investment Ever Podcast

BIO: Peter Saddington is a software developer, a multi-founder, an author, and a VC. He founded a $2.5M BTC mining fund, a $10M IoT fund, and a$50M Web3 fund in 2022.STORY: Peter hired an engineer who had impeccable technical skills. Peter was so impressed by the guy that he decided to make him the CEO of his startup. Six months later, the guy fired Peter from his own company.LEARNING: It takes more than technical skills to be a leader. A leader needs to be a person that can be led and can lead others. “The number one most important skill, I believe, in any type of investment, is are you willing to ask every single question possible?”Peter Saddington Guest profilePeter Saddington is a software developer, a multi-founder, an author, and a VC. He founded a $2.5M BTC mining fund, a $10M IoT fund, and a$50M Web3 fund in 2022. He published three books - Scrum, Agile, and PersonalBranding. He writes “The Agile VC” newsletter, which covers Inside Startups, Venture Capital, and life!Worst investment everOver a decade ago, Peter built a great startup and bootstrapped it out of his garage. This was a passion project of his. At the time, the digital currencies were growing. Interestingly, there were all these silos of exchanges and no ability to create arbitrage opportunities between multiple exchanges. As an engineer, Peter thought this was an absolutely fantastic proposition of becoming a middleware solution provider so that traders and investors could trade across platforms and multiple exchanges and find opportunities for liquidity.Peter started building it. He put together a team and bootstrapped it with his own money. Eventually, over many validations, his community and user groups said this was amazing and should be scaled. Peter raised $4.8 million for this venture. Everything was great, and it seemed like there was no possibility that this thing could ever go off the rails. His global community of cryptocurrency and digital currency enthusiasts grew and had almost 78% daily active users.Peter had hired an engineer in whom he saw an amazing ability to take the company to great heights. Peter was so enamored by this engineer’s communication ability that he decided to mentor him. Peter was really impressed by his technical prowess. In his naivety, he believed this was the primary value that the engineer could bring to his company. Peter elevated the engineer to CEO. Big mistake! Six months later, the engineer fired Peter from his passion project.Lessons learnedWhen promoting an employee, you must understand the individual deeper than just what they bring to the table.When choosing a leader, they need to be a person that can be led and can lead others.Spend enough time with people before you promote them to truly understand their depth, morality, ethics, and, most importantly, integrity.Andrew’s takeawaysWhen hiring a prospective leader, analyze everything that person can bring to the table, not just the skills.Leaders need to be multifaceted and able to rise when things are tough.The key to asking questions is listening; the key to listening is taking notes.Actionable adviceAsk more questions. Reach for questions that avail emergent opportunities in emergent contexts and conversation. Be situationally aware enough to listen actively and ask pertinent and essential questions that give you context for informed decision-making.No.1 goal for the next 12 monthsPeter’s goal for the next 12 months is to launch a startup that intertwines his top passions; blockchain, cars, racing, and family.Parting words “Stay positive, and understand, as the stoics used to say, that the only thing that you ever have in your control is your own reasoned choice and how you’re going to respond to the situation at hand.”Peter Saddington [spp-transcript] Connect with Peter SaddingtonLinkedInTwitterInstagramYouTubePodcastBlogBookAndrew’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 Podcast

BIO: Neville Medhora has been starting businesses and side projects since high school and has learned a bunch about what works and what doesn’t work. He is an advisor to numerous software companies and teaches copywriting at his business, CopywritingCourse.com.STORY: Neville started day trading in college and would try to get inside scoops to find cheap stocks that would explode. None of the scoops he ever got worked. Neville only made 5% return on his investment after a year of trading.LEARNING: 99% of the inside scoop is unreliable secondhand information. Do your due diligence. It’s important to know when to sell. “I realized that hot stock tips are terrible; none of them ever panned out. It’s when I did my due diligence that my investment worked out really well.”Neville Medhora Guest profileNeville Medhora has been starting businesses and side projects since high school and has learned a bunch about what works and what DOESN’T work. He is an advisor to numerous software companies and teaches copywriting at his business, CopywritingCourse.com.You can find him at “Neville Medhora” across all socials.Worst investment everNeville was fortunate to have a little extra cash in college because he had started several businesses before. He started day trading stocks, and his plan was to pick a stock when it was cheap and then sell it when the price went up.Neville would try all sorts of things to find cheap stocks about to go up. He’d wake up in the morning to catch the bell ringing and start talking to people about stocks just to get the inside scoop, but none of his tactics worked.After a year of all the stress of trying to beat the market, Neville made just 5% gains on his investments.Lessons learnedIt’s important to know when to sell.The market is crazy and erratic and doesn’t obey timelines.Buying a good business is better than trying to beat the stock market.Andrew’s takeaways99% of the inside scoop is unreliable secondhand information.Always do your due diligence before you invest.Actionable adviceDon’t get caught up in buying something because it’s cheap. Instead, read the company statements and learn how to analyze a company.Neville’s recommendationsNeville recommends following him on social media, where you’ll find much of the stuff he teaches. He also recommends joining his newsletter to get helpful marketing tips every Friday.No.1 goal for the next 12 monthsNeville’s goal for the next 12 months is to make sure that he is set up well to retire at 50.Parting words “Be well and prosper. Don’t make stupid mistakes, but when you do, learn from them.”Neville Medhora [spp-transcript] Connect with Neville MedhoraLinkedInTwitterFacebookYouTubePodcastBookConnect with Jack FarleyLinkedInTwitterYouTubePodcastAndrew’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 Podcast

BIO: Jack Farley is the host of the Forward Guidance podcast. He is interested in all things liquidity, macro, and central banking.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. 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.”Jack Farley Guest profileJack Farley is the host of the Forward Guidance podcast. He is interested in all things liquidity, macro, and central banking. Jack graduated from Brown University with a degree in Economics and has done nearly 500 long-form interviews on investing and macroeconomics.Worst investment everJack had gotten quite bearish on the market in January and February 2020. So he bought a lot of put options on the markets and individual stocks, notably Tesla. All individual stocks crashed throughout early March 2020. Jack made so much more money than he ever thought was possible.He continued consuming this bearish macro content from CNBC, Bloomberg, and the Wall Street Journal. When the stock market rallied from March 23 to April 1, Jack was told it was just a bear market rally and believed it. But the market continued to grind higher, and Jack’s position kept falling until it reached zero.Lessons learnedKnow the difference between winning because you were smart and made the right decision and when you were lucky.It’s really tough to beat the market.The ultimate hack is to beat the stock market and then invest in the S&P 500 for the rest of your life.When you get a windfall, and you’re lucky enough to win the day, don’t assume it’s because you’re so smart because, most likely, you’re not.Andrew’s takeawaysSet up your wealth creation engine. That’s either your business or your salary.Don’t view the market as a place to create wealth; view it as a place to grow it.Actionable adviceDon’t play in markets where you don’t know what you’re doing.Jack’s recommendationsJack recommends listening to his podcast for a deep-dive conversation on finance. The talks are associated with what’s going on now.No.1 goal for the next 12 monthsJack’s goal for the next 12 months is to create kickass content for his podcast and grow the show.Parting words “I feel like a winner for having been on the show.”Jack Farley [spp-transcript] Connect with Jack FarleyLinkedInTwitterYouTubePodcastAndrew’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 Podcast

BIO: AcreTrader’s CEO, Carter Malloy, grew up in an Arkansas farming family and has had a lifelong passion for agriculture and investing. Before founding AcreTrader, he spent five years as part of the founding team of a successful global equity investment firm.STORY: Carter was super impressed by a healthcare software company whose stock was really expensive, and the valuation was crazy high. Carter decided to short the company’s stock. However, he lost most of his money because the stock almost doubled on him.LEARNING: Valuation is not a reason to invest. Don’t bet against really good management teams. “Valuation should inform your position size. However, look at it across a large spectrum of metrics and measurements to help you determine whether you have a thesis or not.”Carter Malloy Guest profileAcreTrader’s CEO, Carter Malloy, grew up in an Arkansas farming family and has had a lifelong passion for agriculture and investing. Before founding AcreTrader, he spent five years as part of the founding team of a successful global equity investment firm.Before joining in 2013, Carter was a Managing Director with Stephens Inc., a large private investment bank, where he was an equity research analyst.At AcreTrader, Carter has successfully raised over $60 million in Series B funding and grown from 20 employees to 120 employees across the company’s two business divisions, which include AcreTrader, the farmland investing platform, and Acres, a land research platform.Worst investment everAs an equity investor, Carter would generally chase okay businesses valued as great ones. One particular company, a healthcare software business, caught Carter’s attention. He had a thesis around the macro developments—both cyclical and secular headwinds—that this company faced. He realized there were these real pressures on that business that the rest of Wall Street and the investment world was seeing. The stock was really expensive, and the valuation was crazy high.Carter started digging into the company. He met with the company CEO, and this guy was unbelievably impressive. Carter dug deeper into the company culture and the people who worked there, concluding that this was a well-run business. Carter decided to invest in the company. However, he lost most of the principal because the stock almost halved on him.Lessons learnedValuation is an essential part of your research. It can support an investment decision but is not a reason to invest.Don’t bet against excellent management teams because they can absolutely—and often do—determine the outcome.Valuation should inform your position size.Andrew’s takeawaysValuation will be a tool if you don’t have any other fundamental things driving your investment decision.Actionable adviceDon’t invest in single securities. Instead, invest in ETFs.Carter’s recommendationsIf you want to be a good investor, understand what CFAs read and then take the Kaplan Schweser CFA Level One course.No.1 goal for the next 12 monthsCarter’s goal for the next 12 months is to spend more time with his children.Parting words “This has been fantastic. I sincerely appreciate you.”Carter Malloy [spp-transcript] Connect with Carter MalloyLinkedInTwitterFacebookInstagramYouTubeWebsiteAndrew’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 Podcast

In this episode of Investment Strategy Made Simple (ISMS), Andrew and Larry discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this fourth episode, they talk about mistake number 7: Do you confuse skill and luck? And mistake number 8: Do you avoid passive investing because you sense a loss of control?LEARNING: When gauging a fund manager’s performance, consider risk-adjusted performance. If you’re a passive investor and use a systematic strategy, you’re 100% in control. “You have to accept that you can only control what you can control; you can’t control the unpredictable things that happen.”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 fifth series, they talk about mistake number seven: Do you confuse skill and luck? And mistake number eight: Do you avoid passive investing because you sense a loss of control?Missed 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?Mistake number 7: Do you confuse skill and luck?According to Larry, investors don’t know statistics well enough to differentiate skill from luck. To understand if an outperformer is outperforming because of skill and not luck, look at risk-adjusted performance. So, for example, over the very long term, value stocks have outperformed growth stocks, and small stocks have outperformed large stocks. So somebody who outperforms simply because they owned lots of small and value stocks more than the market isn’t outperforming on a properly adjusted basis. Other factors than size and value, such as momentum, profitability, or quality, can also drive the return. Larry recommends Portfolio Visualizer, a tool that shows how much exposure an active fund has to those factors. It also reveals the alpha or the remaining performance that cannot be explained.The second thing you need to consider is whether the fund’s assets are growing. If they’ve grown, the odds are pretty good that that outperformance will disappear. The other thing you can look at is the metrics of the stocks they’re holding. If they’re invested in hot stocks and their values have gone up, that’s a sign not to chase the outperformance.If you want to outperform by picking managers, Larry advises choosing the largest pension plans because they hire great consultants. They also have the best databases and do thousands of interviews yearly, so you can be sure they’ve asked every question you can think of while doing their due diligence. But still, evidence shows their ability to predict future winners doesn’t exist.Mistake number 8: Do you avoid passive investing because you sense a loss of control?In active investing, individuals perform stock selection and/or market timing. Passive investing doesn’t involve any of that. It defines its universe and then buys and holds all the securities that meet that definition.With passive investing, the problem comes in when the markets are experiencing uncertainties like the Ukrainian war, the COVID-19 pandemic, etc. The investor wants to be in control but with an index fund, the markets are in control. So many people consider active management a way of giving them control. They’re either in control of buying individual stocks, choosing the fund manager, and when they go in and out of the market. The problem is all the evidence shows that control costs you money, and you’re more likely to make mistakes and end up underperforming.Larry also advises investors to understand that when you’re passive and use a systematic strategy, you’re 100% in control. But you have to accept that you can only control what you can; you can’t control the unpredictable things that happen. Make sure your portfolio design doesn’t take more risks than you have the ability, willingness, and need to take. You should also be hyper-diversified to withstand the shocks that happen to every asset class.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 Podcast

BIO: Gisela Hausmann graduated with a master’s degree in film & mass media from the University of Vienna. She’s one of a dying breed of adventurers – she digs in and researches topics of interest from the ground up, then tells things as she sees them.STORY: Gisela joins the podcast again, discussing her new book Winning @ Amazon. Today she shares advice on how employees can allocate their creativity in a way that’s appreciated. She also talks about why employees need to start thinking outside the box and focus on problem-solving and innovation instead of feeling sorry for themselves and staying stuck where they’re not appreciated.LEARNING: Encourage and appreciate your employees’ creativity. “Appreciated creativity creates more creativity.”Gisela Hausmann Guest profileGisela Hausmann graduated with a master’s degree in film & mass media from the University of Vienna, the oldest university in the German-speaking world.She is one of a dying breed of adventurers – she digs in and researches topics of interest from the ground up, then tells things as she sees them.An author of two dozen books, her work has been featured in regional, national, and international publications, including GeekWire, Inc, Success (print magazine), Entrepreneur, and Bloomberg’s podcast ‘Decrypted.’ She is also the winner of the 2016 Sparky Award “Best Subject Line.”Born to be an adventurer, she hiked in the Himalayas and the Gobi Desert, crossed Russia on the Trans-Siberian Railway twice, and meditated in the Dalai Lama’s private room at the Potala Palace in Lhasa, Tibet.Her motto is: “Don’t wait. The time will never be just right.” – Napoleon HillEncourage employee creativityGisela Hausmann first appeared on the podcast in episode 539, where she narrated how Amazon implemented suggestions she’d made in her book Inside Amazon: My Story. Gisela is back with a new book Winning @ Amazon. Today she shares advice on how employees can allocate their creativity in a way that’s appreciated. She also talks about why employees need to start thinking outside the box and focus on problem-solving and innovation instead of feeling sorry for themselves and staying stuck where they’re not appreciated.According to Gisela, companies consistently ignore the input from clever, hardworking, dedicated people and—seemingly—perceive them as “irrelevant little cogwheels in a big machine.” Senior management is often threatened by subordinates who seem more innovative than them, and it’s no wonder they ignore their creative suggestions. This has led to employees choosing to keep suggestions to themselves, and this is killing most organizations, especially the big ones.Gisela advises organizations that want to encourage employee creativity to make a written plan. Define how employees who come up with ideas implemented in the company will be rewarded. Ensure that your rewards are something better than an in-house product. It should be something special that makes the employee feel appreciated. Gisela insists on the written plan because if you don’t encourage creativity in black and white, it won’t happen.You create positive energy in your business by acknowledging that you need creative ideas from your people and encouraging them. When you create positive energy, everybody wants to stay with you, and they carry this energy into the rest of the world.Parting words “If your employees carry forward who you are, they will bring the people to you.”Gisela Hausmann [spp-transcript] Connect with Gisela HausmannLinkedInTwitterBooksAndrew’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 Podcast

BIO: Connor Steinbrook is the Founder of the EXP realty Wolfpack Revenue Share Organization, with more than 2,700 agents operating in all 50 states and 12 countries. The group closed almost 10,000 houses and 3.5 billion in sales in 2022.STORY: Connor came across a house in a high-priced area that was being sold for dirt cheap. It caught his attention, and he decided to buy it. It turns out the person who sold the house to Connor had killed the homeowner and stolen his identity.LEARNING: Always be careful when going into properties to meet strangers. Before you go to view a property, ask the right questions and do due diligence. “Just because you wouldn’t do something or you wouldn’t think that this could happen doesn’t mean that people think the way you do and that they’re not setting you up.”Connor Steinbrook Guest profileConnor Steinbrook is the Founder of the EXP realty Wolfpack Revenue Share Organization, which has more than 2,700 agents operating in all 50 states and 12 different countries. The group closed almost 10,000 houses and 3.5 billion in sales in 2022.Worst investment everWhen Connor started in real estate, he got a regular appointment to check a property out. The property was an old house that looked like a single-family house but was built in a duplex-type way. The property was in a high price point area, and the owner asked for a very low amount that didn’t make sense. The owner was not there, and after waiting for a while, Connor decided to go home. After about 15 minutes on the highway, the owner called him, and since the numbers looked so good, he decided to go back.Connor found the door open, and when he went in, he couldn’t believe his eyes. It was quite a rundown house. While doing a tour of the place, he had this strong intuition that there was something off about it. But he shook off the feeling and went ahead and bought the property.About six weeks later, Connor got a phone call from a detective of a famous murder detective show in Dallas. The detective informed Connor that a resident had found a dead body at one of his properties, and he needed him for questioning.It turns out the guy Connor had bought the rundown house from was not the actual owner. The guy had murdered the homeowner, buried him in the backyard, and stolen his identity to sell the house.Lessons learnedAlways be careful when going into properties to meet strangers.Andrew’s takeawaysThings happen when you’re least prepared and least expecting it.Actionable adviceBefore you go to view a property, ask the right questions and do due diligence. When you go for the viewing, take another person with you.Connor’s recommendationsConnor recommends several books for self-education and development:Think and Grow RichOutwitting the Devil: The Secrets to Freedom and SuccessAs A Man ThinkethThe Richest Man in BabylonNo.1 goal for the next 12 monthsConnor’s number one goal for the next 12 months is to get his EXP organization to 10,000 agents. He also wants to develop properties in North Dallas as a long-term investment plan. Connor also wants to get his new YouTube channel to 10,000 subscribers this year.Parting words “Believe in yourself and never stop trying. In the end, it will all work out for you.”Connor Steinbrook  Connect with Connor SteinbrookLinkedInFacebookInstagramYouTubeAndrew’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 Podcast

BIO: In 2013, Zachary Resnick began to make a living from playing poker cash games and investing in other poker players, providing a unique understanding of risk management that is largely shaped through leveraging volatility to outperform others in the high-risk, high-reward situations of poker.STORY: Zach invested in two founders with a brilliant idea and overlooked the fact that they were not A+ founders. He ended up riding the company down by more than 80%.LEARNING: Back people that completely blow you away. People are super important, especially at the earlier stage of the business that you invest in. “When investing in early-stage companies, the qualities of the founders are paramount and almost inarguably the most important thing for that company.”Zachary Resnick Guest profileIn 2013 Zachary Resnick began to make a living from playing cash games and investing in other poker players, providing a unique understanding of risk management that is largely shaped through leveraging volatility to outperform others in the high-risk, high-reward situations of poker.In 2016 he made his first personal investment in Bitcoin and, by 2017, was focused on investing and trading crypto full-time.In 2018 he founded Unbounded Capital, an early-stage venture capital firm focused on payment infrastructure.He is also the founder of FlyFlat - a luxury concierge service that specializes in last-minute, heavily discounted business and first-class air travel.Worst investment everZach’s company invested in these two founders, who loved the company’s media content on the blockchain world. The founders were building a solution that Zach believed was A+. It would be a 100x improvement to existing solutions. There was one problem, though; the founders were not A+ founders. This became the first startup Zach’s company rode down by more than 80% since he started the investment firm.Lessons learnedBack people that completely blow you away.People are super important, especially at the earlier stage of the business that you invest in.Know your investing style.Andrew’s takeawaysWhen investing in a startup, you’ve got to trust the founders, believe in the idea, have a ready market and ensure the startup has the muscle to execute the vision.Actionable adviceIf you’re in the startup investing business, especially in the early stage, meet with founders in-person before investing.Zachary’s recommendationsFor frequent, flexible travelers who fly business class and want to save money, Zach recommends checking out Fly Flat.To enhance deeper thinking, Zach recommends reading great books such as The Elephant in the Brain: Hidden Motives in Everyday Life and Thinking Fast and Slow.Zach recommends reading his first e-book, How A Scalable Blockchain Will Win, to learn more about how scalable and efficient blockchains will transform the internet and how data and payments operate worldwide.No.1 goal for the next 12 monthsZachary’s number one goal for the next 12 months is to have more spaciousness in his life so he can spend more quality time with his amazing partner. Zach is now focused on working smarter and a little less hard.Parting words “Thank you for having me today, Andrew. I’ve learned a lot today.”Zachary Resnick [spp-transcript] Connect with Zachary ResnickLinkedInTwitterInstagramYouTubeBlogPodcastBookAndrew’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 Podcast

BIO: After poor experiences with the financial industry early in his professional life, Chris Mamula educated himself in investing and tax planning.STORY: Because Chris trusted his parents, he also blindly trusted their financial advisor. It was only after he stumbled upon better financial advice that Chris realized he’d wasted well over $100,000 in fees and another $100,000 in taxes.LEARNING: Gain financial literacy and take responsibility for your financial situation. Don’t trust financial advisors blindly. “The less money you spend on your financial advice and financial products, the more money you’ll have to invest.”Chris Mamula Guest profileAfter poor experiences with the financial industry early in his professional life, Chris Mamula educated himself in investing and tax planning.He now draws on his experiences to write and speak about wealth building, investing, financial planning, financial independence and early retirement (FIRE), and lifestyle design at the blog “Can I Retire Yet?”.Chris is also the primary author of the book ChooseFI: Your Blueprint to Financial Independence.In addition, he works one-on-one with those looking to improve their finances and use them to create a better lifestyle as an advice-only financial planner with Abundo Wealth.Worst investment everChris was a college graduate with a master’s degree starting to learn how to make and spend money. Like many people, he was overwhelmed and intimidated by the technical parts of finance, investing, and tax planning. The advice Chris would hear everywhere was; if you need help, seek a recommendation from someone you trust. So he went to his parents, whom he trusted more than anyone else. Chris’s parents were generally decent with their money as far as stretching a paycheck, managing a budget, and taking care of their children’s needs.Chris didn’t realize that his parents used a financial advisor because they had no idea what they were doing. And because Chris trusted them so much, he started using the same advisor and blindly trusted everything he told him—no questions asked.After a decade of this, Chris finally stumbled into some better investment advice and found out all the mistakes he had made. He realized that over a decade, he had wasted well over $100,000 in fees and another $100,000 in taxes. Because he’d started it so early in life, it could easily be a million-dollar mistake when you compound it over time.Lessons learnedSo many conflicts with financial advice exist, so you can’t blindly trust anyone.When looking for an advisor, ask as many questions as possible. What does this person know well? Is there a conflict between your interest and theirs? Are you getting the best advice?Gain financial literacy and take responsibility for your financial situation.Andrew’s takeawaysInvesting is actually quite simple, but financial professionals often make it complicated.Never invest in anything that somebody calls you about.A piece of advice could work for someone but not necessarily for you.You have the right to ask for further clarification if you don’t understand the fees you’re being charged.Actionable adviceBe widely diversified and focus on the things you can control. You can’t control what market returns you’ll get or the sequence they’ll come in. But you absolutely can manage your own personal finances. So build your savings, put more money into the market, and draw down at low rates.Chris’s recommendationsChris recommends reading his book ChooseFI: Your Blueprint to Financial Independence. The book has taken many different stories and distilled them down into common principles that you can use to create your own adventure and story.He also recommends The Simple Path to Wealth: Your road map to financial independence and a rich, free life and any book by John Bogle to learn about tax efficiency, limiting your trading, locating your assets, being widely diversified, and more.No.1 goal for the next 12 monthsChris’s number one goal for the next 12 months is not to have a goal. He simply wants to decompress, refine his life, and return to a normal lifestyle. Chris wants to enjoy life over the next year.Parting words “It’s really not that hard. If you just take a little bit of time to educate yourself and find that confidence, you’re going to be very grateful in the long run.”Chris Mamula [spp-transcript] Connect with Chris MamulaLinkedInTwitterBlogWebsiteBookConnect with Michael HowellLinkedInTwitterWebsiteBookAndrew’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 Podcast

BIO: Michael Howell is CEO of CrossBorder Capital, a London-based FCA-registered, independent research and investment company he founded in 1996.STORY: Michael was once in a meeting with the governor of the Bank of Thailand, who told him they would cut interest rates the following week. Even though all possible data showed this would be a wrong move, Micahel believed him. The bank didn’t lower the rates; instead, it increased them.LEARNING: Don’t listen to what people say, particularly central bankers; watch what they do. When participating in macro investing, understand where you are on the liquidity cycle and where investors are positioned. “Don’t buy a market with a low PE because you think it’s cheap. It actually tells you a lot more about the liquidity background or about the investors’ positioning, which may be structural features of the markets.”Michael Howell Guest profileMichael Howell is CEO of CrossBorder Capital, a London-based FCA-registered, independent research and investment company that he founded in 1996. The firm provides asset allocation and capital markets advice to institutional investors and manages US$1 billion of assets.Worst investment everIn the mid-1990s, when Michael was working at ING Barings, there was evidence of some economies beginning to overheat. Michael had a lot of discussions with central bankers, and one of those meetings in early 1995 was with the governor of the Bank of Thailand. Michael remembers the governor saying that the bank would cut interest rates. Michael assumed that the governor wanted to inform people, so it’s not a shock that interest rates will be cut.In context, that was a crazy decision to make because Thailand was already overheating. The Chinese had previously overvalued the renminbi by about 30%, and the Japanese yen was beginning to strengthen significantly.The governor wasn’t honest because the Bank of Thailand raised interest rates instead of cutting them. This taught Michael never to listen to what central bankers are saying. Instead, he now looks at the numbers and the underlying backdrop.Lessons learnedWhen participating in macro investing, understand where you are on the liquidity cycle and where investors are positioned.Equity markets are best valued against inflation, not against bonds.From a global perspective, liquidity will likely be the primary driver of asset markets.Big currency appreciations destroy earnings, and currency devaluations boost earnings.PE multiples work very well at the individual stock level but certainly don’t work at the macro level.Andrew’s takeawaysDon’t listen to what people say, particularly central bankers; watch what they do.PE multiples are not a great measure when looking at the overall macro picture.No.1 goal for the next 12 monthsMichael’s number one goal for the next 12 months is to get more people to understand that liquidity is the key thing going forward.Parting words “Just watch the markets and understand what’s going on. Look at the data. Don’t read the central bankers’ lips; watch their hands.”Michael Howell [spp-transcript] Connect with Michael HowellLinkedInTwitterWebsiteBookAndrew’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 mentionedBenjamin Graham (September 2008) Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions)