My Worst Investment Ever Podcast

BIO: David Barnett is the author of 21 Stupid Things People Do When Trying To Buy a Business. Presently he works as a private transaction advisor with people buying or selling a business.STORY: We get a preview of his book as he takes us through the top 5 stupid mistakes people make when buying a business.LEARNING: David shares a host of lessons for people trying to buy a business. “If something looks like a really good deal and you don’t know about that industry, ask yourself why isn’t somebody else in this industry picking up this company.”David Barnett Guest profileDavid Barnett loves to say that it took him 10 years to un-learn what he was taught in business school. University had trained him to be a middle manager in big enterprises, and he was unprepared for the realities of small business.After a career in advertising sales, David started several businesses, including a commercial debt brokerage. Helping to finance small and medium-sized businesses led to the field of business brokerage. Over several years, he sold dozens of businesses for others while also managing his own portfolio of income properties and starting his career as a local private investor.David regularly consults with professionals and banks on business and asset values. Presently he works as a private transaction advisor with people around the world who are buying or selling a business. Find him at Davidcbarnett.com.Worst investment everIn this episode, we will jump straight to the top five stupid mistakes that people make when buying a business, as explained in David’s book 21 Stupid Things People Do When Trying To Buy a Business: Learn how to avoid these awful novice mistakes. Then we will look at some of the things that Andrew takes away from the interview.Lessons learned1. Failing to understand how businesses are valuedA lot of small business owners and potential buyers do not understand that it is not the business that is being bought or sold; it is the cash flow. So when purchasing a company, find out how much cash flow it is generating, then ask yourself as a buyer, what are you willing to pay for that cash flow, given your ability to run the business.Also, when looking at growth opportunities, while there could legitimately be an opportunity, do not pay the seller for it because you are the one that has to do the work to deliver the result, not the seller.2. Failing to account for the value of the buyer’s laborMost people will be very optimistic about a business’s cash flow, and they will not put a high enough price on their own time when they are examining the business.3. Failing to account for the value of capitalPeople always forget that they need a return on the cash they put in the deal. When you put money that you have saved up over years or decades into an acquisition, you need to get an adequate rate of return on that equity you have put in.4. Overcommitting projected free cash flow to debt serviceGo for a business with a much greater debt service coverage ratio because the last thing you want is a cash crunch that bleeds out your free money.5. Failing to adjust for operating capitalMany small business owners are experts at what they are doing, but they are not financial professionals. So they fail to generate optimized balance sheets.Andrew’s takeawaysCashflow growth depends on your effort, not the sellerWhen you buy a business, you buy two things; the existing cash flow and growth in that cash flow. So your job is to keep that cash flow growing.Focus on the net profitWhile other metrics can be helpful, net profit gets straight down to the bottom line.Three ways to make money from your businessThere are three ways to get money out of a business: pay yourself a salary or some type of compensation, embezzle, and dividends.Three important components of cash flowThere are three components of free cash flow; core profitability, investment in working capital, and Capex (capital expenditures, fixed assets).Actionable adviceIf you are selling your business, do a high degree of due diligence on whoever you will be working with to help you with the process. This is because there are a lot of really awful business brokers who are giving people bad advice. Look at the person’s history, what they’ve done, how long they’ve been in it, and talk to some of their past clients.If you want to invest in a particular business, you should know how it works and what it is like to be in it.No. 1 goal for the next 12 monthsDavid’s number one goal for the next 12 months is to get another 10,000 subscribers on his YouTube channel because his mission and what drives his business is to help people avoid dumb business deals. The biggest problem is ignorance, and David can solve that just by creating awareness and teaching people.Parting words “Business is risky, but it is still worth pursuing. Just do what you can to avoid the losses.”David Barnett [spp-transcript] Connect with David BarnettLinkedInTwitterBlogWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Marc Miller is the founder of Career Pivot, which helps those in the second half of life design careers that they can grow into for the next 30 years. He is also an author and podcast host.STORY: Marc was a relentless risk-taker until a bike accident, and the risk of contracting SARS-CoV-1 stopped him hot on his heels.LEARNING: Learn how to evaluate risk and ask for help if need be. Step back and think about what you really want to do with life. Andrew’s advice is to be grateful, like what you do, keep life simple, find clarity and let go. “For new things to begin, we often have to end old things.”Marc Miller Guest profileMarc Miller is the founder of Career Pivot, which helps those in the second half of ife design careers that they can grow into for the next 30 years. Marc authored the book Repurpose Your Career: A Practical Guide for the 2nd Half of Life, published in September 2019.Marc is a recovering engineer, a multipotentialite, and a professional career-changer as he has made six career pivots over the last 35 years.Marc is also the podcast host of the award-winning Repurpose Your Career Podcast.Worst investment everMarc has had a series of events in his life that forced him to take a step back, take a look at his life and make a couple of adjustments.The risky rideIn July of 2002, Marc was riding with his bicycle club and was on what he thought was a pretty nonrisky ride. He came down a hill, turned into a blind turn; going about 30 miles an hour, he slammed into a car head-on.Marc spent five days in the trauma center. He had a torn knee, a broken hip, a dislocated shoulder, a bunch of broken ribs, and a couple of other minor injuries. Fortunately, he had no internal injuries.Putting himself in harm’s way againMarc was back on a bike in 10 weeks, and in four months, he was flying to China, heading to Guangdong province, which was the epicenter of the SARS-CoV-1 outbreak. He stayed there for three days, oblivious to the severe disease.During his flight, Marc sat next to a woman who was heading to Hong Kong. He emailed her afterward and asked her about her trip. She informed him that she had got seriously ill. The world did not know till three months later that it was SARS-CoV-1.Questioning his decisionsMarc was fortunate not to get SARS-CoV-1; however, this and the bike accident got him questioning why he was making such risky decisions.Marc decided to start doing less risky stuff. He went to teach high school math. He left teaching after two years, highly successful but exhausted and depressed. Then he did a year of nonprofit work. Then he got sucked into another startup but later decided he had had enough.Stepping back from it allAfter quitting his last job, Marc decided that he had enough money to reshape his life and do something more meaningful and refreshing. He started making some very conscious decisions, and one of those decisions was to move to Mexico in 2018.Lessons learnedStep back and think about what you really want to do with lifeMarc had a lot of preconceived ideas of what he should do. After the events in his life, he decided to step back and ask himself what he truly wanted to do with his life. While doing so, he decided to stop buying stuff and simplify his life.Cut out things you do not need in your lifeIn these challenging times, step back and spring clean your life. Let go of all the crap you do not need. Also, leave relationships that no longer serve you.Andrew’s takeawaysBe gratefulWhen you are feeling down, go somewhere where people are literally losing their lives. This will give you some appreciation for your life.Like what you doHaving a skill does not necessarily mean that you are going to love using it. Try to do what you like.Keep it simpleLife is simple. If you find that it is not, stop, take a step back, take a moment, and work to simplify it.Find claritySearch for your moment of clarity and use that moment to transform yourself. That moment does not have to be an extreme event; you could have your moment of clarity right now.Let goOnce you have found your moment of clarity, let go of all those things that were burdening you before.Actionable adviceLearn how to evaluate risk. Always ask yourself, if you are going to do this, if you are going to make a change, what’s the real risk? Then get outside of your head and go ask for help to evaluate your risks.No. 1 goal for the next 12 monthsMarc’s number one goal for the next 12 months is to get the next Repurpose Your Career book out. He has done three editions and now wants to do an edition based on his experience and the current pandemic. Marc is also growing an online community of more people helping everybody else out. [spp-transcript] Connect with Marc MillerLinkedInTwitterPodcastWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Taylor Ryan is an American entrepreneur and a 6x startup founder with 13+ years of marketing and startup experience spread across 10 industries within large and small organizations.STORY: Taylor wanted to be financially independent straight from uni, but he graduated at the height of the economic crisis so that he couldn’t get a job. While networking, he met two guys who invited him to join their e-commerce startup in the food-tech niche. He joined them, and they created a fantastic platform but barely made any sales. Their mistake was creating a platform that no one needed.LEARNING: Talk to your ideal customer to find out if there is a need for your product. Make sure that you have monthly financial statements for your startup. “There’s a ton of people selling products that there is no market for and without speaking to customers.”Taylor Ryan Guest profileTaylor Ryan is an American entrepreneur living in Copenhagen, Denmark. He is a6x startup founder with 13+ years of marketing and startup experience spread across 10 industries within large and small organizations. His current projects include:ArchitectureQuote - Saas platform for architectsKlint - Creative digital marketing and growth hacking agencyorg - Online digital marketing courseio - Public speaker, workshops, and innovation consultingWorst investment everTaylor graduated in December of 2008 at the height of the economic recession. He had always been super ambitious, so he was ready to start making some money after school. Unfortunately, nobody was hiring, and despite all his best efforts, he kept getting doors slammed in his face.Going the business routeTaylor realized that he had to build his own business to get a chance at making real money. He bounced around for the better part of two or three years with guys that he admired from afar. Then he started working underneath them, but he did not like it much.Taylor found himself doing two to three networking events a week, and in one, he ran into some guys that were planning to start an e-commerce startup in the food-tech niche. The duo had this exciting concept of building an online platform that would allow anybody with a food allergy to find new and interesting food items that would enable them to enjoy all their favorite foods without getting an allergy.Joining the tag-teamTaylor thought that the concept was pretty okay and so he agreed to join the duo. In about eight months, they had built a complete platform with close to 1,500 products on sale. Then they made an app for iOS and Android to allow people to discover and order new items.The elusive financial independenceThe three partners believed that this venture would be their bridge to financial independence. Unfortunately, this would not be. Even though they had a superb idea, people did not buy into it for one reason; nobody wanted to pay extra for shipping for stuff they could buy at the supermarket and food markets.Taylor only got to learn this after talking to several people who had signed up on the platform but were yet to make a purchase.Lessons learnedDo your research before you hit the marketDo your market research in advance. Taylor advises entrepreneurs to talk with ideal customers and get a feel for whether they will like what you want to sell. He admits that he should have spent at least a month or a few weeks talking to 50 or 100 people that would buy from him in the future.You do not have to build everything from scratchWhen building a startup, you learn so much at breakneck speed. One important thing you learn is to be open to working with others instead of making it yourself. Hire the best to help you build your startup.Andrew’s takeawaysTop startup failuresOver time, Andrew has been able to classify some of the biggest mistakes startups make as attested to by his guests. These are:Bad hiring decisionsPoor management of time and peopleIneffective teamwork and collaborationWaiting too long to start sellingWeak accounting and financeLow product qualityHave monthly financial statementsMake sure that you have monthly financial statements. If you can do that every month, you will be able to eliminate almost 95% of any problems you will face in the world of accounting and finance.Actionable adviceYou have to be flexible as an entrepreneur because your product and your brand will evolve. Whatever you are building will pivot or take a completely different trajectory. So be open to such changes.No. 1 goal for the next 12 monthsTaylor’s number one goal for the next 12 months is to continue building scalable products and seeing them succeed.Parting words “You have YouTube and many other resources at your fingertips to find a knowledge base and wealth of information that can get you somewhere.”Taylor Ryan [spp-transcript] Connect with Taylor RyanLinkedInTwitterBlogWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Matt Franklin and a friend developed PostureNow to help people improve their posture. They presented it at Shark Tank and ended up making pretty good money from the device. Matt also runs his video production business, Bottle Rocket Labs, and has found a new obsession of learning about investing and preparing for retirement.STORY: When Matt was 28, he had a job while studying economics. Even though he was making good money, he blew it all. Matt regrets not buying a house then because today it would be worth so much.LEARNING: Buy a house when you are young, especially if you know you will stay put for at least four years. Take advantage of incentives given to home buyers in the US. Andrew’s advice is to invest in what is right for you. “Young people, buy that house and start the compounding effect today.”Matt Franklin Guest profileMatt Franklin and a friend developed a goofy little invention to help people improve their posture. Once they had sold more than $100,000 worth of that product, they found themselves in the Shark Tank. After that appearance, things blew up temporarily, and they made pretty good dough; the company PostureNow, still operates to this day.He also runs his video production business, Bottle Rocket Labs, and has found a new obsession of learning about investing and preparing for retirement. He shares what he is learning on his Rogue Retirement Lounge podcast.Worst investment everWhen Matt was in school majoring in economics, he also had a daytime job that paid a pretty good salary. Unfortunately, Matt spent all his money on pointless stuff. He even continued to take on more student loans and deferred paying them. He only finished paying his student loans in 2020.He should have been wiser and bought that houseLooking back, Matt admits that he wasted so much money when he was young, money that should have gone towards buying a house.Lessons learnedBuy a house as early in life as possibleIf you can stay put for at least four years, buy a house when you are still young. In four years, the value of that house will have gone up, and it will be worth a lot more should you choose to sell or rent it out.Question your beliefs and welcome opposing viewsQuestion your beliefs and interact more with people who oppose them so you can hear opposing viewpoints. Use your intellectual curiosity to find out what other opinions, other than yours, exist out there.Andrew’s takeawaysInvest in what is right for youInvestment is different for everyone. For some, buying a house may be the right thing, given their circumstances, while for others, renting makes better sense. Ultimately, do what is right for you.Incentives for buying a house in the USSeveral incentives make it easy and profitable to buy a house in the US:Fixed 30-year mortgagesLong-term low-interest ratesFixed mortgage payments beat inflation over timeA house is an insurable assetTax deductions related to mortgage paymentsThe value of a house will never crash to zero as compared to stocksYou can opt for a reverse mortgage to draw back on your equityActionable adviceIf you’re a young person, buy that house and start the compounding effect today.No. 1 goal for the next 12 monthsMatt’s number one goal for the next 12 months is to use his Rogue Retirement Lounge podcast to help 10 entrepreneurs shave 10 years off their work lives.Parting words “If you believe you cannot do it, or you believe you can do it, you’re both right.”Matt Franklin [spp-transcript] Connect with Matt FranklinLinkedInPodcastWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Austin Belcak is the founder of CultivatedCulture.com, where he helps people land jobs they love without traditional experience and without applying online.STORY: Austin made two mistakes. One was to take a terrible job without evaluating if it was indeed a good fit. Two, he spent so much time following jobseeking advice from family and friends who had no experience in the field he was interested in.LEARNING: Successful careers are built from networking and building relationships. Find creative ways to showcase your value when searching for a job. Seek advice from people already doing what you want to do. “Go find people who have already been down the path you want to follow and who are now working in the places that you want to work.”Austin Belcak Guest profileAustin Belcak is the founder of CultivatedCulture.com, where he helps people land jobs they love without traditional experience and without applying online.Austin’s job search system stems from his personal experience transitioning from a new grad with a biology degree, a 2.58 GPA, and a job in healthcare to landing interviews and offers at Microsoft, Google, and Twitter.His strategies have been featured in Forbes, Business Insider, Fast Co, and Inc., and he has helped thousands of job seekers land jobs at places like Microsoft, Google, Amazon, and many more--without applying online.He also hosts The Dream Job System Podcast, where he shares bite-sized, highly actionable career advice.Worst investment everWhen it was time for Austin to go to college, he did not know what he wanted to do. But he chose to be a doctor because it made his parents and their friends happy. So he went to college with the plan to become a doctor, but deep down, he knew that’s not what he wanted to be.In college, Austin spent his time doing all manner of things other than studying. Consequently, he graduated with a 2.58 GPA. Now he could not become a doctor.No desire for workAustin had no interest in joining the formal employment world. He never interviewed for a job and only took an internship because it fell on his laps. The company then offered Austin a job, and he took it no questions asked. He did not even negotiate his salary.Working the worst jobThe job Austin took was horrible. He was selling medical devices, and sometimes he would have to drive over two hours to deliver the devices to hospitals as early as 6 am. His boss was the worst, and he’d keep telling Austin that he was not good enough and had no future. This was quite demoralizing.On top of the bad working conditions, the salary Austin accepted was barely enough for rent, car insurance, groceries, and other expenses. So he ended up racking up about $15,000 in credit card debt in the first couple of months out of school, just trying to make ends meetThe start of his worst investment everAustin knew that he had to quit this job. His goal was to work in tech, but he had no experience. He went to the people we always go to for advice; parents, friends, and career counselors. They all told him the same thing; to tweak his resume and cover letter and apply for jobs online.Austin spent hours and hours of his time online searching for a job without any success. In the first month, he applied to about 100 companies, and not a single one got back to him.Going back to his advisorsAustin went back to the people he had asked for advice. He asked them what he could be doing wrong since they were all successful and he was doing what they told him to do, yet he was unsuccessful. They said to him that it was a numbers game and he just hadn’t applied to enough jobs, and he just needed to continue applying.This advice did not sit well with Austin, considering that these people all had different experiences. His parents, for instance, had not searched for jobs in decades, and his friends were all working on Wall Street, so they had no experience working in medical or tech fields.The feeling of betrayalAustin felt a little betrayed by his family, friends, and the people he was getting advice from because this advice clearly didn’t seem to work. He also felt betrayed because he invested so much money into college, and that did not seem to be delivering on the promise he’d always have an opportunity if he had a degree. Austin felt left out by the companies he wanted to work in. He started thinking he was the problem, that something was wrong with him.It was not until he had coffee one day with someone from his alumni that he realized things were not working because he sought advice from the wrong people. He now started seeking advice from people working at the places he wanted to work at.Lessons learnedNetworking and building relationships are the secrets to building successful careersIf you are looking to elevate your career, it comes down to networking and building relationships.Quit the ‘me’ mindsetWhen reaching out to people, instead of making a direct ask for them to refer you to recruiters, focus on the other person and what value you can offer them.Find creative ways to showcase your valueInstead of the usual style of sending a resume, send a direct illustration of what you can do to add value. This gives you higher chances of getting hired.Andrew’s takeawaysKnow what you are good at and offer itSome people are good at exploiting opportunities, while others are good at solving problems. Think about what it is that you are good at and why someone would want to hire you. Either you’re going to help them exploit an opportunity or do something more with it, or you are going to help them get out of trouble. So show recruiters how you can help them.Find alternatives to job marketplacesThe problem with applying online is that you must optimize your job search to the marketplace you are using. Step out of marketplaces and look for other ways to get jobs.Be very careful of traditional adviceWhile there is some value in traditional advice, it will often get you traditional results.Actionable adviceReach out to one person who is already doing what you want to do. These are the kind of people who are going to be the best mentors.No. 1 goal for the next 12 monthsAustin’s number one goal for the next 12 months is to find a little more balance. Now that he has a business and it is his only focus, Austin wants to use some of this time to find balance.Parting words “Feel free to connect with me on LinkedIn and definitely take the risk assessment.”Austin Belcak [spp-transcript] Connect with Austin BelcakLinkedInInstagramBlogPodcastWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Ibrahim Kocagoz is the Technical Director at SODEXO Thailand, responsible for Innovation, Smart City & Systems, and Sustainability.STORY: Ibrahim and his wife bought several apartments in Istanbul. The plan was to retire soon at a vineyard, making wine while receiving income from the apartments. However, the Turkish currency started devaluing, throwing off the value of the flats. Ibrahim could only charge half of what the apartments were worth when purchasing them.LEARNING: Do thorough research before investing in property. Real estate is high-risk; avoid investing in it if you can. Understand the currency risk concept before investing abroad. “Learn a lot about what you want to invest in and try to invest in more than one sector.”Ibrahim Kocagoz Guest profileIbrahim Kocagoz is the Technical Director at SODEXO Thailand, responsible for Innovation, Smart City & Systems, and Sustainability. Before joining SODEXO, Ibrahim worked as a Smart City Project Manager in Qatar for almost seven years. Ibrahim received a Bachelor’s Degree in Electronics Engineering from the University of Istanbul, Turkey, in 2004.Ibrahim has more than 15 years of experience in urban development, oil & gas fields, and industrial projects. He has excelled at engineering, construction, commissioning, research, development, and management, especially for systems integration, instrumentation & control systems, and sustainability.Worst investment everIbrahim and his wife talked about investments, and they settled for real estate. They believed that it was stable and it would gain in the future. So they bought several one-bedroom apartments in Instanbul.The plan was for the couple to, later on, move to the South of Turkey, buy a vineyard and produce wine while getting rent from the apartments.The currency issueSoon after they bought the apartments, the Turkish currency started devaluing, so the apartments’ value went down. Ibrahim, thus, had to lower his rent to get tenants. Selling the flats was not even an option because he could never sell them for a profit.The currency recovered after a few years, but Ibrahim could not increase rent, and so he lost 50% of their expected value in rent collection.Overlooking important investing factorsThere are two things that Ibrahim and his wife overlooked when they decided to invest in real estate. One, they assumed that Instanbul, being the largest and most popular city in Turkey, would be more profitable in terms of rents. However, the city of Izmir has better incomes.The second thing they overlooked was the performance of the currency. They did not do any research to see how the currency was changing and if it was stable or not.Lessons learnedDo thorough research before you invest in real estateReal estate is a high-risk investment because there is no guarantee that you will make a profit. It is, therefore, imperative that you do thorough research before you decide it is the right investment option for you.Diversify your investment portfolioDo not invest in just one sector; diversify your investments. At the very least, invest half of your money in different stocks and the other half in a sector that you understand fully. Doing this will help you reduce your risk.Andrew’s takeawaysInvesting from abroad means you’re making two investmentsMost people live and invest in their home country. And therefore, the concept of currency risk is not a big thing. But when you live outside of your country and want to invest back into your home country, you will make two investments.The first is you have to buy the currency of that country and then buy the underlying asset. Many people forget about this, but it’s important to think about currency risk because you could greatly gain on the underlying asset. Still, if the currency devalues, you lose that gain.Real estate is a high-risk investmentOn the surface of it, rental property seems like a good investment. But there are several problems with it. First, you can have a lot of supply but little demand making it hard to resell at a profit. Second, there could be a crisis, such as the Coronavirus pandemic, where many people are never going to get the gain that they thought they’d get on their properties.Property is illiquidYou cannot just wake up one day and say you do not want to own your property anymore and then just get out. It takes time to sell.Do not buy rentals during an inflationary periodWe should expect to experience inflation around the world. Most people may think this is the time to own property, especially rentals. However, this is not a good idea because it is hard to increase the rent. After all, salaries are not going up. Land and physical assets offer some protection against inflation.No. 1 goal for the next 12 monthsIbrahim’s number one goal for the next 12 months is to bring his smart city vision, sustainability, knowledge experiences to more countries, including Vietnam, Laos, and Myanmar. [spp-transcript] Connect with Ibrahim KocagozLinkedInTwitterYouTubeWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Jeff Nischwitz is known as a Snow Globe Shaker who’s on a mission to help people shift how they lead and thereby shift their leadership impact.STORY: Jeff’s parents sold their business and gave the money to their grandchildren for a college education. Jeff decided to invest his kids’ money as advised by a financial advisor who knew his dad. This was during the Dotcom boom, and at first, the investment grew from $10,000 to $75,000 per kid’s share. But within six months, the market crashed. The worst part was that his advisor never talked to him as the market started shifting. Being a thrill-seeker, Jeff decided to try another venture. This time around, he invested in a franchise that failed from the get-go. Jeff continued pumping money into the business even though things never improved. Jeff never quit until he was so deep into the mess.LEARNING: Don’t let your ego drive you to poor decisions. Focus on the long-term instead of big hits that only last a short time—work with an experienced financial advisor. “When things are chaotic around you, when you’re being shaken up externally, it’s even more important to shake internally.”Jeff Nischwitz Guest profileJeff Nischwitz is known as a Snow Globe Shaker who’s on a mission to help people shift how they lead and thereby shift their leadership impact. He’s an international speaker and personal transformation coach known for his unique perspectives, challenging traditional thinking, and delivering tangible shifts for leaders to grow their people, build their businesses and enhance their relationships.Jeff’s the Founder of The Nischwitz Group, a speaking, consulting, and coaching company, and the Co-Founder of Cardivera, a leadership development ecosystem that grows leaders and their impact. He also co-hosts the Leadership Junkies Podcast. Jeff has published four leadership and business books, including his most recent–Just One Step: Walking Backwards to the Present on the Camino Trail.Worst investment everBack in the mid-90s, Jeff’s parents sold their business and gave the company stock to their grandchildren. This money was intended for their college education when they came of age.Investing the moneyJeff was the administrator for his kids’ share. He went to a guy that he did not know well but who knew Jeff’s father. He suggested a stock for Jeff, and he put in all the money into that stock. The stock was going crazy. Jeff started with $10,000 a child, and the money went up to like $75,000.The Dotcom boomThe Dotcom boom hit in 2000, and now there was all this speculation on tech stocks. Jeff started thinking whether it was time to sell the stock as it was still on a high. He, however, waited on his guy to advise him. But he wasn’t getting any communication from him.As he was waiting for advice, the market started to tumble and ultimately crashed. Jeff lost most of the money. All this while, Jeff never heard from the financial advisor.Trying againThe same year, Jeff started a business that involved buying a franchise. The company started poorly right from the beginning. Jeff’s gambler’s mindset set in, and instead of pulling the plug, he kept pumping money into the business.It took Jeff forever to pull out and say enough, finally. By the time he pulled the plug, he had dug himself a bottomless hole.Lessons learnedBe careful of the treacherous thrill of the unknownJeff realized that he was a bit of a thrill-seeker. He loved the thrill of the unknown. This caused him to make financial decisions with a gambling mindset. Now he has learned how to be self-aware and catch himself when he is going in that direction.Focus on long-term wins instead of shorter big hitsAnother lesson that Jeff learned from his worst investment was that he had always been trying to go for the big hits. This was all about his ego. He would feel better about himself by getting the big wins, but this often put him in trouble.Andrew’s takeawaysReduce risk through the dollar-cost averagingThe dollar-cost averaging strategy puts in a small amount of money every month instead of your entire savings. Using this strategy allows you first to understand where the market is before investing a lump sum.Financial advisors should communicate regularly with their clientsIf you manage other people’s money, make sure that you have regular communication with your clients. The most optimum would be monthly, but quarterly is okay. Pick the time that suits you and suits your client, and ensure you have regular communication.Choose a financial advisor with experienceWhen picking a financial advisor, choose one with experience. A financial advisor who has been through many ups and downs may be better at communicating and handling your financial matters.Actionable adviceBe honest with yourself and get to know yourself. Look for behavior patterns that do not serve you. A great way to do that is to ask yourself what you wish were more of and what you want to you were less of. That’s the way you can start to learn about yourself and avoid those patterns that do not serve you.No. 1 goal for the next 12 monthsJeff’s number one goal for the next 12 months is to launch and cause to thrive two new programs he created out of COVID. One is a program called Growth, which is a peer-to-peer mentoring program. The other is Be a Man, which is for men only, and it’s about helping men understand all the cut-through and different messages they have gotten their whole life and what it means to be a man.Parting words “Great discomfort always precedes great outcomes. So get ready to get uncomfortable.”Jeff Nischwitz [spp-transcript] Connect with Jeff NischwitzLinkedInTwitterFacebookPodcastYouTubeWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Recently, I posed this question to some of my prior guests, “How would you advise a young person to reduce risk in their life?” The answers rolled in from 40 guests! I grouped the responses into five categories: Building valuable relationships, managing finances, personal growth, risk management, and having awareness. There are tremendous pearls of wisdom!Valuable relationships – Communication with loved ones, mentors, and friendsDon’t be afraid to ask for helpSeek out trusted friends, family members, and mentors and listen to them “Don’t be afraid to ask for help.”Corey Hoffstein “At each stage in your life, find mentors and friends you trust and who you feel are invested in you – listen to their advice.”Colin W. McLean “Get married, listen to your wife, stay married.”Michael Markels “Alongside your time and money, the most important asset allocation decision you will make is with the trust you invest in a select few people: your spouse and family, your friends, those you work with, and those you entrust to take care of whatever or whomever you cannot personally care for. (You’ll note your choice of fund managers and CEOs of stocks you buy only fits into that last category).”Tariq Dennison Managing finances – Focus on investing in your futureStart investing earlyGet a great education and training in your fieldUnderstand what you are investing inStudy everything you can find about moneySet a long-term investment strategy and stay the course, even when it’s scaryTraditional jobs are often bad investments these daysDiversify your life by developing skills and relationships in multiple areas “Start investing early to create wealth and always live within your means.”Nicolas Rabener “Pass CFA exams and be a CFA charterholder.”David Ying “Invest in what you truly understand.”Sopon Srisakunpath “Study money! If you want more of it, you must talk about it and think about it daily, which means, read books; all and any book with the word money in the title.”Jerremy Newsome “Hold when your investments drop a little; hold even when they go up as much as you wish. There’s more on the horizon for you, always.”Philipp Kristian Diekhöner “The worst income source you will ever have as an adult is a traditional job.”Bobby Casey “Find ways to put multiple irons in the fire, aka develop skills that are valuable among several industries, and develop relationships with colleagues in a variety of industries and professions. This is much like the diversification of assets in an investment portfolio. However, the flip side is reducing risk generally results in lower overall returns since the investments are not overweight in any single industry (or portfolio holding). So, one must be content with not experiencing exceptional returns in exchange for reducing risk in life and career choices.”Bill Winterberg Taking responsibility – Admit your mistakes and learn from themBe honest about your mistakes, learn from them, but most importantly, move on from themChase your dreams, so you never have to regret missed chancesIf you are struggling to be who you want to be, just reach out to others who have been through it “Get away from the mistake, learn from it and try to avoid it in the future.”Roongkiat Ratanabanchuen “Be honest about your mistakes and losses so you can learn from them.”Michael “Mike” R. McGaughy “Live with no regrets. The memory of not chasing your dream at all is worse than the pain of going for it and failing.”Lisa Ryan “Curiosity is a superpower; use it to be open to what you don’t know and never be closed to what you learn.”Michael Falk “If there is a mismatch between your long-term goals and your everyday actions, there are professionals out there who can help you.”Anonymous prior guest Personal growth – Unlock your creativity and trust the direction of your lifeYou are your main engine of wealth; invest in youDon’t get distracted by the current situation; look beyond itBe open to give and receiveGet off the daily rollercoaster, set your long-term strategy, and stick to itBe curious and be bold; life is shortStudy about the opportunities you face before actingAlways have a planDon’t believe what you read, test for yourself, then follow your own path “Invest in yourself; your mind and hands are the engines of your wealth.”Dr. Daniel Crosby “Look beyond the current scenario.”Mohd Sedek Bin Jantan “Give without expectation and receive without resistance.”Christopher “Chris” Salem “Let time do the work for you, do not entertain the daily emotional rollercoaster; instead, stay true to your long-term strategy.”Emil Voehlert “Be bold and live your dream, for life is short.”Michael “Mike” B. Garcia “Be curious and get out of your comfort zone.”Devyani Vaishampaya “Study well, then select the best opportunity, then manage properly and get perfect results.”Eslam Shaaban Radwan “Always have a plan.”Dan Passarelli “Test everything for yourself. Don’t believe everything you read. The path to greater results and a deeper and more meaningful life is the path less traveled.”Josiah Smelser Risk management – Anticipate what can go wrong and apply cost-benefit analysis in lifeMake decisions slowly, think about the future impact of your decisionCautiously embrace risk, but know that you cannot eliminate it, instead take calculated riskBuild resilience by taking small risks at an early ageReduce risk by taking the time to build your knowledge and understanding of itThe only certainty in life is uncertainty, keep calm and stay the courseSometimes the riskiest thing to do is to play it safe in lifeStrive to separate your beliefs from facts “Don’t rush. Pause, think, what’s the worst thing that could happen? What is the impact on my future life?”Bill Lewis “Embrace risk, but do it with caution; learn from your mistakes.”Lasse-Peter Pestel “The best way to reduce risk in life is to take many small chances and make as many mistakes as possible early on because nothing builds resilience more than past failures.”Azran Osman Rani “Risk is something you can’t eliminate, but you can manage it with knowledge.”Odilon Costa “Life is full of risk, so is a business, and being a finance professional, we should always try to take on calculated risk.”Ian Ng “You can’t eliminate risks in life, but you can manage them. Start by understanding them.”Pipat Luengnaruemitchai “Certainty is uncertainty; keep calm, don’t panic, and stay diversified.”Sornchai Suneta “Don’t assume that “risky” means taking the less-traveled path; sometimes, the riskiest thing to do is to play it safe and assume that you have control. Control is an illusion. Plan for the worst-case and figure out how to get comfortable with that – everything else is gravy.”Catherine Flax “As we know, there is no return without risk, so be abundantly vigilant to identify and analyze each risk unemotionally...separate your beliefs from facts. Good luck!”Jeyabalan Parasingam CPA, CFA “The best way that I can think of to reduce risk is to spend time beforehand getting to understand whatever it is you want to invest in, and by all means like I stress in my book, ‘Your Time Is Now’ – seek the advice of PROVEN experts!”Frank Moffatt Having awareness – Recognize the outcomes you create and stay unbiasedSleep on it before decidingWork to gain awareness of your biases and work to correct for themIdentify risk, estimate its characteristics, don’t hesitate to implement a rescue planThink deeply about what could go wrong before taking a significant step in your lifeAlways weigh both the pros and consRisk is when some or all of the things that you haven’t thought of actually happenBasic risk management is about thinking of possible outcomes and how to mitigate their effectsAdvanced risk management is about mitigating against the effects that you didn’t or couldn’t possibly have thought of “Think twice before you decide on major issues, if feasible; sleep a night in between.”Alexander Burstein “Train and increase awareness of your biases and correct for these in the face of transverse risks.”Eelco Fiole “To deal with life’s risk, identify the risk, determine the specific characteristic of when this risk is occurring and implement your rescue plan without hesitation.”Daniel “Dan” Gramza “The best way to deal with risk in life is to contemplate what can go wrong before you act.”Jotak Nandwana “Always remember there are two sides to every coin, i.e., weigh the pros and cons.”Peter John Emblin “Risk management is as much art as science – when done properly, it’s as much to do with scenario planning as with formulae. Risk is when some or all the things that you haven’t thought of actually happen. Basic risk management involves thinking of as many different outcomes as possible and mitigating their effects. Advanced risk management involves mitigating effects of all the things that you haven’t thought of and couldn’t possibly think of.”Paul Gambles Those are the golden nuggets my guests shared, which can help you build valuable relationships, manage finances, personal growth, risk management, and have awareness. To conclude this post, I want to share a quote to live by from Eleanor Roosevelt: “Learn from the mistakes of others. You can’t live long enough to make them all yourself.” Andrew’s booksHow to Start Building Your Wealth Investing in the Stock...

BIO: Shashank Randev has acquired a depth and breadth of experience from working in large companies, being the founding member for a SaaS startup (acquired by a Fortune 500 Company), to an early-stage fund investing in technology-enabled startups.STORY: Shashank was the lead investor of his angel network and was advocating for a startup looking for funding. They had an impressive conversational artificial intelligence assistant for retailers. Their one problem, though; they didn’t have proof of concept. Shashank was unable to convince the founders to work on proof of concept, so he pulled his support. A year later, the startup was acquired by a huge company. Had Shashank not pulled out, he would have made 7x of his investment in the acquisition.LEARNING: Identify your buyer even before you create your product. Have different perspectives when evaluating an early-stage startup. “You cannot possibly have one set of perspectives when looking at an early stage company because anything can happen; acquisition can happen at any time.”Shashank Randev Guest profileShashank Randev brings entrepreneurial and investment understanding with 15+ years of cross-functional expertise. He has acquired a depth and breadth of experience from working in large companies, being the founding member for a SaaS startup (acquired by a Fortune 500 Company), to an early-stage fund investing in technology-enabled startups.Shashank is Founder VC at 100X.VC (x)-India’s first venture fund to invest in early-stage startups using iSAFE Notes. Go to https://www.100x.vc/ and submit your pitch deck.He is also an Angel Investor and Advisor with a keen interest in B2B emerging technology startups. Additionally, he is a Member at PIOCCI (People of Indian Origin Chamber of Commerce and Industry).Previously, he was the Founding member and Vice President of VCCEdge, the SaaS data platform by VCCircle (acquired by News Corporation in 2015). He launched the SaaS platform, led revenue, product development, and growth initiatives for close to seven years at VCCEdge. He has also worked with NIIT Ltd. and Zensar Technologies Ltd.Shashank holds an undergraduate degree in Bachelor of Engineering from Nagpur University and an MBA from International Management Institute (IMI), New Delhi.Specialties: Scaling up Startups, Accelerators, Angel & Seed Investment, Venture Capital, Global Open Innovation, M&A, Cross-Border Transactions & Entrepreneurship.Worst investment everShashank was and still is very interested in conversation in commerce. In 2017, he met this company developing a conversational artificial intelligence (AI) assistant for retailers. The AI assistant could understand a customer’s needs through natural conversation, offer them relevant recommendations, and explain why that may be the best choice. This fascinating AI was a huge opportunity.The founders of the company had previously built another successful startup that a famous Indian company acquired. So they were second-time founders, which was a colossal tickmark for Shashank.Advocating for the founders to get fundedIn August 2018, Shashank decided to lead the investment through an angel network. As the leader of this transaction, Shashank’s job was to convince all the other angel investors in that network that they should join him in investing in the two founders.The missing proof of conceptThe two founders had a good minimum viable product, but they had not tested it. Shashank kept asking the founders to try implementing the product in a few companies to test it.But the founders wanted to focus on enhancing their algorithms instead of working on the proof of concept, which is what the network of angel investors wanted. At the end of 2018, after spending five months having multiple conversations, Shashank was not convinced that they would be able to sell their final product.Giving up on the foundersEventually, Shashank felt that he was wasting time trying to convince them to give him proof of concept. He also did not want to ruin the relationship he had with the angels in the network should the product fail. So he pulled the plug. Shashank decided not to lead the round, and eventually, that company did not get funded by the angel network.If only he had been a little patientCome September 2019, and a large Indian firm acquired the company. The company was so impressed by the hardcore tech product that they could not wait to acquire it.When Shashank learned about the acquisition, he regretted dismissing the founders. Had he been a little patient to get to the acquisition cycle, he would have easily made a 7x return of whatever capital he would have invested.Lessons learnedKeep an open mind when evaluating an early-stage companyYou cannot have only one set of perspectives when looking at an early-stage company. Anything can happen. An acquisition can happen at any time.Andrew’s takeawaysIdentify your buyer even before you create your productOne of the best ways to start up a company is to determine who your buyer is going to be, then mold your core business around that.Actionable adviceMake mistakes early on and move on. If you don’t, you are likely to make a costly mistake later on, which will cost you the venture capital fund. Also, be firm about your thought process when evaluating deals.No. 1 goal for the next 12 monthsShashank’s number one goal for the next 12 months is to ensure that they reach a portfolio size of 100 startups at 100X.VC because once they have done that, the company will be genuinely solving the seed-stage capital problem and increasing successes.Parting words “If you are aspiring to become an angel investor or an entrepreneur, don’t think too much. Just go ahead and try it out.”Shashank Randev [spp-transcript] Connect with Shashank RandevLinkedInTwitterBlogWebsiteAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Mark Morris is an expert at building developer relationships and helping housebuilders achieve discreet volume sales at speed.STORY: Mark bought an off-plan property for $200,000 with the hopes of selling it for a profit. Unfortunately, a project that was supposed to take 12 months took two years to complete. The US financial crisis hit just a few months after completion, and now Mark could not sell the property.LEARNING: Be careful when investing in an off-plan property because you are simply buying a dream. Most homes just take money away from the owner, making them liabilities instead of assets. Take advantage of the cooling-off period in your contract should you think you made a mistake. “I’m not against off-plan investments, but they are just riskier.”Roshan Cariappa Guest profileWhen you hear the name Mark Morris, I want you to think, “High cash flow portfolios.” He is an expert at building developer relationships and helping housebuilders achieve discreet volume sales at speed. Alongside an IT freelance career, he has been a property investor for the last 20 years, building a portfolio of buy-to-let apartments and houses across Greater Manchester. He has also created a solid income-generating portfolio in the midwest of the US.Worst investment everMark saved up quite a chunk of money around 2005, and when his friend, a real estate agent, invited him to see some property, he did not hesitate to go. The property was a development in a marina that was being sold off-plan.The 12-year planThe owner was selling the properties for $200,000, and the plan was to have the apartments ready in 12 months. So the catch was that Mark, should he buy the property, would sell it for about $260,000.Mark was itching to add properties to his portfolio, and so he quickly bought into the investment. He was still new in the property market and knew nothing about such investments, but this did not stop him from purchasing the property.The promised 12 months turned into 18 months and 18 months turned into two years. In 2007 the project was completed, and now Mark could sell his apartment.Here comes the US financial crisisWithin months of completion, the US financial crisis happened. Now Mark could not get anyone to buy the apartment for a profit. Mark decided to rent the apartment, but the rent he collected was too little to even pay for the mortgage. Mark still has this property to date, and it’s still not covering the mortgage.Lessons learnedUnderstand the investment you want before you make any paymentDo your research and your due diligence. Look at the fundamentals of whatever you want to invest in.Have a plan BDo not focus too much on the upside. Consider that your investment could go south and so always have a plan B.Choose long-term over short-term investmentsAlways be looking at the long term, not the short term, when it comes to investing.Andrew’s takeawaysMost houses are liabilities and not assetsMost people buy homes using bank loans, turning the house into a liability instead of an asset. This is because it is just taking money instead of giving cash flow to the owner.Buying off-plan is akin to buying the seller’s dreamWhen you are buying off-plan, you are buying a startup company; you are buying a dream. This places you at a considerable amount of risk to get to the final result because you invest in the person selling you the dream and in their business, not in property.Find out about any cooling-off periods in your contractCheck on any existing cooling-off periods related to your contract. This helps if you sign a contract, and later you feel you made a mistake, you are allowed to break the contract as long as it’s within the cooling-off period.Actionable adviceGet yourself educated, do your research and just commit to personal development. Make sure you understand the investment that you are getting yourself into. Do your due diligence before you put money into it.No. 1 goal for the next 12 monthsMark’s number one goal for the next 12 months is to create another high cash flow and income stream.Parting words “Do not be afraid to make mistakes. Take ownership of your mistakes but learn from them.”Mark Morris [spp-transcript] Connect with Mark MorrisLinkedInAndrew’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 ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast