My Worst Investment Ever Podcast

BIO: Giuseppe Grammatico is a franchising advisor who has owned several Master Franchise licenses and has enjoyed a successful franchising career, guiding over 200 individuals through business ownership, many for the first time.STORY: Giuseppe hired a full-service marketing company that managed everything from his website to emails and social media posts. Giuseppe gave the company complete control of his business, and his voice got lost. He also got virtually zero return from hiring the company.LEARNING: Pick the medium that works for you and stick with it. Publicity doesn’t mean revenue. “Just do your thing, have a plan going forward, and it’ll pay dividends down the road.”Giuseppe Grammatico Guest profileGiuseppe Grammatico is a franchising advisor who has owned a number of Master Franchise licenses and has enjoyed a successful franchising career, guiding over 200 individuals through business ownership, many for the first time. In addition to two decades in franchising, he also has 20 years of sales, marketing, and management experience. Book a free call with Giuseppe here.Worst investment everGiuseppe was looking to take some things off his plate, so he hired a full-service marketing company that did everything from website management to emails and social media posts. Giuseppe’s voice got lost in this process. He had given someone else control of his brand and what he was doing. It all got diluted. Giuseppe felt like he’d been thrown in a box with just about every other company in the marketing company’s portfolio. He also got virtually zero return from hiring the company. In fact, it ended up causing more confusion for his business. It took Giuseppe a long time to regain control of his brand and voice.Lessons learnedPick the medium that works for you and stick with it. Then, create all your content around that medium. If it’s just videos, then so be it, or if you’re a writer, write books and blogs.Do your thing, have a plan going forward, and it’ll pay dividends.Andrew’s takeawaysPublicity doesn’t mean revenue.Actionable adviceWrite your 12 Frequently Asked Questions, record your answers for each question in a video, and release it on all platforms. Repurpose the video into a blog post, snippets, LinkedIn carousel, and more.Giuseppe’s recommendationsGiuseppe recommends reading Traction: Get a Grip on Your Business to learn how to keep everything balanced. Even if you don’t own a business, the book will teach you about the intricacies of managing your KPIs daily.No.1 goal for the next 12 monthsGiuseppe’s number one goal for the next 12 months is to work less and help more people than he did in 2023. He’s outsourced his marketing by having someone produce, edit, and share the content that he’s creating.Parting words “Go for it. Life’s too short to be miserable. Take a chance on yourself, but do your due diligence and talk to people that own a business.”Giuseppe Grammatico [spp-transcript] Connect with Giuseppe GrammaticoLinkedinTwitterFacebookInstagramWebsiteBookPodcastAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

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

BIO: Johan Norberg is an author, lecturer, and historian of ideas from Stockholm, Sweden. His books on economics, politics, and history have been translated into more than 30 languages.STORY: Johan talks about capitalism and why it’s important.LEARNING: We should never lose sight of the benefits of capitalism. Capitalism is about peace, trust, and voluntary exchange, not war. “No matter what your long-term objective is, it’s better to be wealthy using resources in an effective manner and being more productive.”Johan Norberg Guest profileJohan Norberg is an author, lecturer, and historian of ideas from Stockholm, Sweden. His books on economics, politics, and history have been translated into more than 30 languages.In today’s episode, Johan discusses capitalism and its importance. Johan recently published his latest book, The Capitalist Manifesto. Like the title, the book is brilliant! Elon Musk said: “This book is an excellent explanation of why capitalism is not just successful, but morally right, especially chapter 4.” Have we lost sight of the benefits of capitalism?Without free markets and free trade, we’d probably be nowhere because it was only with the advent of higher productivity, open global markets, and free enterprise. Remember that when you give people more freedom to seek out opportunities to innovate, develop new business models, and exchange their best with the best of others, you have the machinery to reduce poverty and hunger worldwide.We must never forget this process because once people reach a certain threshold, they take wealth, opportunities, and technologies for granted and forget where they came from. This happens to many countries worldwide, electing the populace who use wealth without realizing that it’s not a pile of cash that happens to lie around.If we were to stop producing and innovating and start consuming and redistributing the wealth already on the planet, all of it would be gone in around four years. So wealth has to be created every day by hard work.Can government and capitalism co-exist?For your business to make a profit, you must make all the other groups happy. You have to satisfy your customers by giving them something they value more than the money they hand you. You must also pay your workers, suppliers, and those who lent you money. Then, and only then, if you made all these groups happy, and there’s something left for you, which will be heavily taxed, can you make a profit. The bigger your profit, the more good you’ve done to society.However, some profit is made not by competing over having the best goods and services but by having good connections with politicians and governments. They get subsidies and tariff protection from governments picking taxpayers’ pockets and handing them to businesses. That’s the opposite of a free market and capitalism—cronyism. It’s a horrible thing that can only end by stopping politicians from entering the game of business, picking winners, and deciding who gets what.Unfortunately, the future has no lobbyists, business organizations, or trade unions to defend them, only the incumbents and the old alternatives who constantly tailor all the regulations and policies to their needs and demands. Johan says the natural history of business regulation is always that you have, at first, a combination of people who want to do good. They see problems and want to improve upon things, so they want to regulate and ensure that it’s in the interest of society.But these well-meaning do-gooders often ally with people genuinely interested in their business models and the trade unions. So, in combination, they come forth with new regulations, constantly tailor-made to support incumbents in what they are doing. Then, the do-gooders move on to the next field to the next sector because they’ve succeeded. But those with a particular economic interest in those regulations stay behind because this is their sector. They constantly adapt it more to their own situation and to keep the competitors out. And that’s incredibly dangerous.Johan’s take is that businesses have one objective: to make the world a better place by being successful. By doing so, businesses ensure that our resources, machinery, and labor are being used as efficiently as possible. He doesn’t believe that successful businesses have to give something back to society as some apology for being successful in making a profit because the fact that they made a profit proves that they’ve done something for the community.Capitalism is about peace, trust, and voluntary exchangeJohan says that capitalism is for peace. The only people who benefit from war are politicians and companies that make weapons of war. Capitalism is the first economic system where you only get rich by enriching others, where everybody’s free to walk away from any deal.Capitalism is the first instance where if you want the resources of others, then you’d better give them something that they value even more. That’s a peaceful exchange, by definition.Johan adds that the first rule of good business is not to kill your customers and suppliers. People want to trade peacefully, and they have their best ideas, suppliers, and markets in other places. Only the dictators and the rulers wish to wage war.Johan insists that the natural way to make society a better place, in the long run, is to ensure that our resources are used decently and not wasted or used as people’s pet projects. So, no matter what your long-term objective is, it’s better to be wealthy by effectively using resources and being more productive.Parting words “I think capitalism deserves a manifesto and some praise because it’s tough work. It’s difficult to create wealth and opportunities for people. So, if you actually create value for other people, know that you’re a hero. That’s what I’m trying to do.”Johan Norberg [spp-transcript] Connect with Johan NorbergLinkedinTwitterInstagramFacebookWebsiteBookAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Steve Faktor is a former Fortune-100 executive—turned entrepreneur, futurist author of Econovation, and podcaster. As Managing Director of IdeaFaktory Innovation, he helps tech, financial services, and consumer goods clients see and build the future.STORY: Steve joins the My Worst Investment Ever podcast again, this time sharing advice on how investors can see and build their investment futures.LEARNING: Try to understand the future by differentiating between noise and legitimate signals. Don’t let others impose on your story. Act in principle. “I would like to see more people acting in a principled way because even if you win, but you do it without principle, you will have lost because those same unprincipled methods will come back to haunt you.”Steve Faktor Guest profileSteve Faktor is a former Fortune-100 executive—turned entrepreneur, futurist author of Econovation, and podcaster. As Managing Director of IdeaFaktory Innovation, he helps tech, financial services, and consumer goods clients see and build the future.Steve is a LinkedIn Influencer with over 750,000 followers and has been featured in Forbes, Harvard Business Review, and The Wall Street Journal, among others. He’s a popular keynote speaker at major events and numerous corporations.The McFuture Podcast features Steve’s provocative predictions and prescriptions, as well as guests like Larry King, comedian Jim Jefferies, Governor Jesse Ventura, Nobel Economist Joseph Stiglitz, former ACLU President Nadine Strossen, Megachurch Pastor AR Bernard, and many more.Previously, Steve launched multiple $150m+ loyalty, payments, and e-commerce products & services as head of the American Express Chairman’s Innovation Fund, SVP at Citi Ventures, VP of Strategy & Innovation at MasterCard, and management consultant at Andersen.Steve joins the My Worst Investment Ever podcast again, sharing advice on how investors can see and build their investment futures. Listen to his previous episode: Take the Risk and Pursue Your Dreams.Understanding the future as a long-term investorIf you want to invest in three to ten-year opportunities, Steve says you need to know what the future will look like or at least have an idea of what that might be. However, as we try to understand the future, Steve says most of what we are reacting to is noise. You therefore, need to learn how to filter out what is signal and what is noise. Once you’ve identified which opportunities are legitimate signals and not noise, ask yourself where they could go. You’ll never know for sure. But again, that’s where you assign probabilities and say, this is likely to happen or more likely than something else. Now that you have an idea of where these things might go and what this future might look like, ask yourself how you’ll act in that future.Steve adds that there’s another equal danger to listening to noise, which is deafness. So there’s the hearing of everything that may not be relevant or important, and then there’s complete deafness. Steve says the vast majority of people are deaf. And so they’re not even hearing and understanding the signals or the noises. Such people are complete pawns in whatever the people who are active and responding to either signal or noise will determine.This kind of deafness is because some people there are institutionalized and believe that whatever system has worked for them is what is working. They don’t have an incentive to look any deeper. So they just putter along.Dealing with propagandaWhile propaganda is a negative characterization, and for good reason, Steve thinks personal narratives are important. The story that you tell yourself of how the world works and what matters to you is the story that will motivate you to do something. Now the question is, is it a good something or a bad something? Will it propel you forward to be a better person to help others to do things that are moral and unjust? Or will it push you to do harmful and destructive things, profiteering, or whatever else that may not be moral?So the question is, what is the story? What are the stories that we want to have versus the stories others want us to have? So, regarding propaganda, Steve believes that what matters is the imposition of other people’s stories into our lives and our response to them. Will you make their imposition part of your story, or do you have the ability to decide what your story should be? Steve says that’s tricky because we’re not equipped to deal with this level of propaganda individually.The victim-oppressor ideologySteve also talks about a terrifying ideological thing currently happening, especially in the education system. There are groups in education institutions about the victim-oppressor ideology. According to Steve, this ideology works by weaponizing empathy. It’s a brutal ideology, but its brutality is cloaked in justice and kindness. So, it’s the appearance of compassion and empathy. So people care about the victim but are prepared to stand behind or have the state impose the most incredible force to achieve the equity and kindness they think is just.Steve believes the only way to stop this ideology is to emphasize morality. We need a re-moralization because the former systems of morality have failed as they’ve outlived their useful life. Steve insists that empathy can be weaponized when it’s not paired with morality. But people are far more concerned with the appearance of goodness than the actuality and reality of virtue. And that is where the problem is. Combining the lack of morality, weaponized empathy, appearances, and the motivations on social media to present yourself a certain way becomes a deadly combination. And so what we desperately need is re-moralization.The thing that concerns Steve the most, he adds, is principles. Principles, just like morality, are unfortunately a luxury good. When you don’t have things, you aren’t too worried about being that moral. You’ll steal to get food for your child, for example. However, most people in the US have enough—not what they feel they should have—but are at a point where they can afford morality and principle. But they’re not buying either. Steve would like to see more people acting in a principled way because even if you win but it was without principle, you will have lost. Those same unprincipled methods will come back to haunt you.Parting words “What do you believe in? What do you think a moral person is? What do you think a principled person is? What do you think is right and wrong, and does it apply equally to the people you hate as to those that you love? That’s what I want people to think about because I think that’s the crisis of our time.”Steve Faktor Connect with Steve FaktorLinkedInTwitterYouTubeWebsitePodcastAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever PodcastFurther reading mentionedJohn Perkins, Confessions of an Economic Hit Man.

BIO: Eric Simonson is the Founder and CEO of Abundo, a financial planning firm that teaches and empowers people to take action and own their financial lives.STORY: In 2020, during the early days of COVID-19, Eric and his wife sold their home and bought a condo because they wanted to live downtown. They later sold the condo in 2023 and lost about 10% on that home purchase.LEARNING: Not all real estate investments are made equal. Focus on location and build quality. Don’t expect to flip new builds into a profit immediately. Don’t bet on a recovery of a big macro event. “Make sure you’re confident you’re gonna live in your new home long enough to recoup some of those initial buying costs.”Eric Simonson Guest profileEric Simonson is the Founder and CEO of Abundo, a financial planning firm that teaches and empowers people to take action and own their financial lives. After working as a traditional advisor for over a decade, Eric saw a need to help people who couldn’t work with a traditional financial advisor since most require having a certain amount of money to invest with them first. He left his corporate job and launched a different model, one where he was only paid for giving honest advice that benefited his clients, not him. He built Abundo around a Flat Fee and Advice-Only Financial Planning model, eliminating all conflicts of interest without overcharging for professional advice and using proven low-cost investments. His firm now guides over 450 clients in all areas of their financial lives.Worst investment everIn 2020, during the early days of COVID-19, Eric and his wife sold their home and bought a condo because they wanted to live downtown. They sold the condo in 2023 and lost about 10% on that home purchase.Lessons learnedThe condo market behaves differently than the single-family home market.Downtown markets behave differently than suburban markets.Not all real estate investments are made equal. Focus on location and build quality.Don’t expect to flip new builds into a profit immediately.Don’t bet on a recovery of a big macro event. It’s hard to guess what’s going to happen.Andrew’s takeawaysIt’s challenging to sell secondhand condos.Actionable adviceEnsure you’re confident you’ll live in your new home long enough to recoup some of those initial buying costs. Don’t spend more on a condo purchase than you’re comfortable spending. Understand the rules around the rentability—what happens if you want to get out of it? Can you rent it out?Eric’s recommendationsEric recommends checking out his company’s blog for fresh content and valuable resources.No.1 goal for the next 12 monthsEric’s number one goal for the next 12 months is to create the best culture and team he can make. If he does that, the team will work hard and serve clients well.Parting words “Thank you for having me, Andrew. I appreciate it.”Eric Simonson [spp-transcript] Connect with Eric SimonsonLinkedinTwitterInstagramWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Kimberly Flynn, CFA, is a founder and Managing Director of XA Investments, responsible for all product and business development activities.STORY: Kimberly put all her $2,000 savings into a single telecom-dedicated mutual fund at the peak of telecom valuations and saw it go down to 30 cents on the dollar.LEARNING: Don’t put all your savings into a single idea. Be diversified, especially when dealing with active manager selection. Know yourself and your risk tolerance. “You’ve got to feel comfortable making investment decisions, and if you’re not, get advice from somebody who can give you the right guidance.”Kimberly Flynn Guest profileKimberly Flynn, CFA, is a founder and Managing Director of XA Investments, where she is responsible for all product and business development activities. XA Investments has a proprietary closed-end platform and a consulting practice to assist clients with developing US and UK-registered closed-end funds. Previously, Kim was Senior Vice President and Head of Product Development for Nuveen Investments’ Global Structured Products Group.Kim received her MBA degree from Harvard University and her BBA in Finance and Business Economics, summa cum laude, from the University of Notre Dame in 1999. Kim earned the Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society of Chicago.Kim was recently selected to serve on the Notre Dame Wall Street leadership committee. She also serves as secretary of the Chicago Symphony Orchestra Women’s board executive committee and on the advisory board of Youth Guidance’s Becoming A Man program. She is an active member of the Harvard Club of New York City and the University Club of Chicago, where she serves on the Finance Committee.Worst investment everKimberly made a $2,000 investment into an Invesco telecom-dedicated mutual fund at the peak of telecom valuations. This was in 1999, and very quickly rode it down to 30 cents on the dollar. Kimberly was assured that the telecom sector would be hot based on the research she was doing at the time at Morgan Stanley. This was Kimberly’s first investment after graduating college.Lessons learnedBe diversified, especially when dealing with active manager selection.Know yourself and your risk tolerance.You’ve got to feel comfortable making investment decisions, and if you’re not, get advice from somebody who can give you the proper guidance.Andrew’s takeawaysSet a long-term plan and methodically contribute to it.Find your investment style and follow it.Actionable adviceTake 80% of the amount you plan to invest and put it into a diversified portfolio. Then, take 20% of it and buy a telecom or crypto fund because experimentation is sometimes helpful. If you lose 20% of your investment, you can recover.Kimberly’s recommendationsIf you’re working in the financial space, Kimberly recommends checking out resources on her website, XA Investments, to learn more about alternatives. She also recommends reading The Economist or The Financial Times to gain a global perspective.No.1 goal for the next 12 monthsKimberly’s number one goal for the next 12 months is to launch new products and take on new prospective consulting clients so she can grow her business.Parting words “Stay positive. Even if you make a mistake, you can always start again and take on a new challenge or a new investment opportunity.”Kimberly Flynn [spp-transcript] Connect with Kimberly FlynnLinkedinTwitterWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Peter Goldstein is a seasoned entrepreneur, capital markets expert, and investor with over 35 years of diverse international business experience.STORY: He and four others put a significant amount of money into opening up this facility in Long Beach, California, where cannabis was in great demand just when it was being legalized for recreational purposes. At the time, there were no clear regulations, making compliance with the ever-changing rules costly to the point where the business was not making any profits.LEARNING: Check your emotions at the door. Be cautious before you jump on a trend. Analyze and understand your risk. Get expert help if you don’t understand your investment. “Check your emotions at the door. Ego and greed don’t have interplay when making a sound investment.”Peter Goldstein Guest profilePeter Goldstein is a seasoned entrepreneur, capital markets expert, and investor with over 35 years of diverse international business experience. Throughout his career, he’s held pivotal roles, including CEO, chairman, investment banker, founder, board member, investor, and advisor to public, private, and emerging growth companies.He founded Exchange Listing, LLC, dedicated to facilitating growth companies’ listings on esteemed exchanges like NASDAQ and the NYSE.He also founded Emmis Capital, a specialized boutique fund investing in global small and microcap pre-IPO growth companies.Worst investment everPeter was living in California when cannabis was being legalized for recreational purposes. He and four others put a significant amount of money into opening up this facility in Long Beach, California, where cannabis was in great demand. They went through all of the necessities to get the license to comply and build the facility, not realizing the complexities and challenges that would result in the worst investment Peter has ever made.A few factors made Peter want to invest in a licensed facility that was going to manufacture and distribute recreational and medical cannabis products in the largest state in the US with the most history in the cannabis sector. One, there was a crowd and a popular trend for cannabis. Two, an emotional component of greed made him believe he could make an exponential return on his investment. Unfortunately, Peter didn’t think about the risk component, nor did he think about getting expert advice to guide him through understanding the industry and how to manage risk.Another thing that affected their business was that they were one of the first movers. And so, as they were learning, so were the regulators, and every time they learned something new or something changed, the business owners had to react to that. Also, there was not yet a proven market. There was a grey market, and there was certainly a black market. But there wasn’t a compliant market where it was understood what the accurate margins would be. Of course, there was significant demand. But after deducting all of the production costs, regulatory taxes, and distribution, the margins were slim to none.Lessons learnedCheck your emotions at the door. Ego and greed don’t have an interplay when making a sound investment.Be cautious before you jump on a trend. Don’t follow the crowd mindlessly just because everyone’s going in that direction.Analyze and understand your risk.Get expert help if you don’t understand your investment.Don’t believe your own thoughts about how unique your product or service is. Pressure tests ensure that what you think is received by the market is true.Andrew’s takeawaysIf you’re starting a business, know that you and your business will be a commodity. The only way to get out of that is by thinking about strategy, positioning, how you will enter this industry, what will be different about you, and having the discipline to follow that strategy.Actionable adviceDon’t believe the hype.Peter’s recommendationPeter recommends his new book, The Entrepreneur’s IPO: The Insider’s Roadmap to Taking Your Company Public, for any entrepreneur wanting to understand the IPO process. There are 12 chapters in the book. Each chapter features two industry professionals from NASDAQ, the New York Stock Exchange, the London Stock Exchange, etc., giving practical advice to fill a knowledge gap for entrepreneurs considering taking their companies public.No.1 goal for the next 12 monthsPeter’s number one goal for the next 12 months is to build a global community of entrepreneurs who want to learn and understand investing in micro and small-cap companies.Parting words “It’s been a pleasure. Good luck, everyone. Stay smart and stay safe.”Peter Goldstein [spp-transcript] Connect with Peter GoldsteinLinkedInTwitterAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Today, they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this fourteenth series, they discuss mistake number 26: Do You Fail to Compare Your Funds to Proper Benchmarks? And mistake 27: Do You Focus On Pretax Returns?LEARNING: Always run a regression analysis against an asset pricing model on portfoliovisualizer.com. Actively managed funds have higher tax expenses than ETFs and mutual funds. “If you want to see if an active manager is truly outperforming and their appropriate risk-adjusted benchmark, run a regression analysis against an asset pricing model on portfoliovisualizer.com.”Larry Swedroe In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Larry is the 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 two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this fourteenth series, they discuss mistake number 26: Do You Fail to Compare Your Funds to Proper Benchmarks? And mistake 27: Do You Focus On Pretax Returns?Did you miss out on previous mistakes? Check them out:ISMS 8: Larry Swedroe – Are You Overconfident in Your Skills?ISMS 17: Larry Swedroe – Do You Project Recent Trends Indefinitely Into the Future?ISMS 20: Larry Swedroe – Do You Extrapolate From Small Samples and Trust Your Intuition?ISMS 23: Larry Swedroe – Do You Allow Yourself to Be Influenced by Your Ego and Herd Mentality?ISMS 24: Larry Swedroe – Confusing Skill and Luck Can Stop You From Investing WiselyISMS 25: Larry Swedroe – Admit Your Mistakes and Don’t Listen to Fake ExpertsISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?ISMS 27: Larry Swedroe – Familiar Doesn’t Make It Safe and You’re Not Playing With the House’s MoneyISMS 29: Larry Swedroe – The Shiny Apple is Poisonous and Information is Not KnowledgeISMS 30: Larry Swedroe – Do You Believe Your Fortune Is in the Stars or Rely on Misleading Information?ISMS 34: Larry Swedroe – Consider All Hidden Costs Before You InvestISMS 35: Larry Swedroe – Great Companies Are Not Always High-Return InvestmentsISMS 36: Larry Swedroe – Two Heads Are Not Better Than One When InvestingMistake number 26: Do You Fail to Compare Your Funds to Proper Benchmarks?In Larry’s opinion, mutual funds lie about their performance or bend the facts to suit their needs. The SEC requires mutual funds to define their category, but it doesn’t tell them what is the proper benchmark. So, the mutual fund can choose a benchmark that is easier to beat than a more appropriate benchmark to make it look good. A classic example is that all small-cap funds almost always benchmark themselves against the Russell 2000, a small-cap index. However, the Russell 2000 is not a small-cap stock index. The Russell 1000 is the largest 1000 of the largest 3000. The Russell 2000 is the next smallest 2000 stock of the largest 3000.Small-cap funds should be compared to a small-cap index, and large-cap funds should be compared to a large-cap index. The same is true about value and growth funds. Mark Carhart’s classic study of the mutual fund industry determined that once you accounted for style factors (small cap versus large cap and value versus growth), the average actively managed fund underperformed its benchmark on a pretax basis by 1.8% per year. For the 5-, 10-, and 15-year periods ending in 2000, only 16%, 16%, and 17% of actively managed funds outperformed the Wilshire 5000.To avoid making this type of mistake, Larry says you should compare the performance of an actively managed fund against its appropriate passive benchmark. If you want to see if an active manager is outperforming and their risk-adjusted benchmark is suitable, run a regression analysis against an asset pricing model on portfoliovisualizer.com.Mistake number 27: Do You Focus On Pretax Returns?According to Larry, active managers, on average, are smart and generate gross alpha. The problem is that their costs far exceed their ability to generate alpha. One of the oldest studies found the average stock-picking fund added value with their picks by about 0.8%. But their expense ratio was about 0.8%. The trading costs were 0.7%. Also, the cost of holding cash adds up, so they underperform by over 1% yearly. So investors, even though they may have identified a manager with stock picking skills, will underperform appropriate benchmarks anyway. But the sad part is that taxes for the average taxable investor are often the most significant expense they face.Robert Jeffrey and Robert Arnott showed the impact of taxes on returns in their study of 71 actively managed funds for the 10 years 1982-91. They found that while 15 of the 71 funds beat a passively managed fund on a pretax basis, only five did so on an after-tax basis.Larry says that individual investors are beginning to awaken to the critical role that fund distributions play in after-tax performance. This has been one of the driving forces behind the rapid growth of ETFs index and other passively managed funds.About Larry SwedroeLarry Swedroe is head of financial and economic research at Buckingham Wealth Partners. Since joining the firm in 1996, Larry has spent his time, talent, and energy educating investors on the benefits of evidence-based investing with an enthusiasm few can match.Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has authored or co-authored 18 books.Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television on various outlets.Larry is a prolific writer, regularly contributing to multiple outlets, including AlphaArchitect, Advisor Perspectives, and Wealth Management. [spp-transcript] Connect with Larry SwedroeLinkedInTwitterWebsiteBooksAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever PodcastFurther reading mentionedLarry Swedroe and RC Balaban, Investment Mistakes Even Smart Investors Make and How to Avoid ThemPhilip E. Tetlock, Expert Political Judgment: How Good Is It? How Can We Know?Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral EconomicsLarry Swedroe, Think, Act, and Invest Like Warren Buffett: The Winning Strategy to Help You Achieve Your Financial and Life Goals

BIO: Dr. Jitipol Puksamatanan heads macro and wealth research at CGS-CIMB Securities (Thailand). He develops actionable investment ideas, independent economic analysis, and asset allocation strategies.STORY: Jitipol learned as much as he could about a stock he was interested in. He was very confident in this stock. So much so that even when the stock price fell, and he made a loss, he doubled his investment, believing the price would go up, but it never did. Jitipol lost all his savings in this investment.LEARNING: Investing is about knowing yourself and what you’re doing. Investing is not gambling; don’t expect overnight success. “Investing is not a timed sport with a predetermined end time. If you’re seeking financial freedom, invest in the long-term and let time be your friend.”Jitipol Puksamatanan Guest profileDr. Jitipol Puksamatanan heads macro and wealth research at CGS-CIMB Securities (Thailand). He develops actionable investment ideas, independent economic analysis, and asset allocation strategies.Over the course of two decades, Dr. Jitipol has worked with securities, banks, and asset management companies.Worst investment everJitipol learned as much as he could about a stock he was interested in. He knew the company’s CEO and the management team; he knew what they were doing and how they did business. Jitipol was very confident in this stock. So much so that even when the stock price fell, and he made a loss, he doubled his investment, believing the price would go up, but it never did. Jitipol lost all his savings in this investment.Lessons learnedInvesting is about knowing yourself and what you’re doing.Investing is not gambling; don’t expect overnight success.Andrew’s takeawaysTrying to win back your losses is a dangerous game. It’s better to take a break, leave it, and let your mind and emotions get back on track.Before investing after a loss, ask yourself the best investment for this money.Actionable adviceInvesting is not a timed sport with a predetermined end time. If you’re seeking financial freedom, invest in the long term and let time be your friend.Jitipol’s recommendationsJitipol recommends listening to investment podcasts for new ideas and to gain knowledge.No.1 goal for the next 12 monthsJitipol’s number one goal for the next 12 months is to expand his community and build deeper relationships.Parting words “Good luck, happy investing, and remember to make friends.”Jitipol Puksmatanan [spp-transcript] Connect with Jitipol PuksamatananLinkedInTwitterFacebookWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Anatoliy Labinskiy is an entrepreneur, eCommerce expert, and a holder of 4-time Two Comma Club awards. He is the founder of GSM Growth, an agency that helps e-commerce entrepreneurs achieve a new level of growth in their businesses.STORY: When Anatoliy and his partner decided to scale their e-commerce shoe business, they paid a supplier in China $250,000 upfront and let him handle everything. The supplier sent customers low-quality shoes and eventually stopped shipping products despite having large orders. The partners had to refund customers and lost all the money they’d paid the supplier.LEARNING: Double-check with your supplier how the product looks and works before scaling your sales. Think about how you’ll control your inventory once you scale your sales. Start slow. “When you start scaling your business, even when you start just seeing a couple of sales here and there, ask your supplier to send you pictures and videos of the product in the warehouse.”Anatoliy Labinskiy Guest profileAnatoliy Labinskiy is an entrepreneur, eCommerce expert, and a holder of 4-time Two Comma Club awards. He is the founder of GSM Growth, an agency that helps e-commerce entrepreneurs achieve a new level of growth in their businesses. He is also a co-founder of EcomScout.io, an AI-powered service that tracks all loss events in advertising campaigns, providing real-time data and insights for informed decision-making and optimized ad spending.In addition to his entrepreneurial pursuits, Anatoliy hosts the highly acclaimed Ecom Business Stream Podcast. The podcast showcases real-life stories from successful entrepreneurs, executives, investors, and thought leaders, offering a glimpse into their journeys to success in the business world.Recognized for his outstanding achievements, Anatoliy Labinskiy is a member of the Forbes Business Council. He also proudly holds a place among the Top 100 USA Entrepreneurs with Ukrainian Origins, underscoring his influence and impact in the dynamic realm of e-commerce.As an international speaker, Anatoliy shares his knowledge and expertise with audiences worldwide, further establishing himself as a leading figure in the e-commerce landscape.Worst investment everIn 2019, Anatoliy and his partner decided to scale their e-commerce business. At the time, they were selling leather shoes. They pumped in $250,000 to pay the supplier for inventory and to ship to customers instantly. They had worked with this supplier for a couple of months, so they let him handle everything. The partners had never seen the shoes they were selling in real life. They had only seen the pictures provided by the supplier.Then, customers started sending emails complaining about the quality of the shoes. They thought it was just the usual case of a few unhappy customers and didn’t take it seriously until one customer insisted on sending back the shoes she had received so that the partners could see what they were selling. The shoes were sent to Anatoliy’s partner, who was in Minnesota. When the shoes arrived and the partner opened the box, it was unbelievable. The shoes had the smell of some toxic material. The shoes were plastic and wrapped in a garbage bag. The partners couldn’t believe what they were seeing. They couldn’t believe they had paid $250,000 for such crap.They contacted the supplier, who assured them he would ship the correct product. Two weeks after this conversation, the partners started receiving customer emails complaining that they hadn’t received their orders. On checking the tracking numbers, they realized that they were fake.So many people asked for chargebacks, causing PayPal and Stripe to hold all payments the customers had made. Anatoliy and his partner had to dip into their pockets to refund the customers. They never got the money that was put on hold.Lessons learnedDouble-check how the product looks and works with your supplier before scaling your sales.Think about how you’ll control your inventory once you scale your sales.You need cash flow and remain liquid for your business to stay afloat.Andrew’s takeawaysStart slow.Anatoliy’s recommendationAnatoliy recommends checking out his website for tips and tricks on running your e-commerce store and resources for writing ad copy that converts.No.1 goal for the next 12 monthsAnatoliy’s number one goal for the next 12 months is to get better quality customers for his agency and make it bigger in terms of results.Parting words “Look at your failures as lessons, and they won’t be failures anymore.”Anatoliy Labinskiy [spp-transcript] Connect with Anatoliy LabinskiyLinkedInTwitterInstagramFacebookYouTubePodcastWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast