October 30, 2013
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Moments after a baby giraffe is born, the mother nurtures it to stand, standing and walking is a matter of life and death. Nearly 50% of baby giraffes die in the first year to a predator. If the baby doesn’t stand only moments after it is born, the mother will kick it and send it rolling. She will continue to kick it and watch her baby struggle until it stands. This may seem like a cruel act, but it is vital to the young giraffe’s survival.
What does “failure” teach us?
Probably the most important thing in my life to which I could credit my success to is that I have instinctively learned to embrace failure. In hindsight, failure has always turned out to be a step in the right direction. When bad news comes, I have almost no reaction because I know that a bad situation creates an opportunity. Without going into the messy details, let me go over some of my most important failures. These have all turned out to be great lessons and opportunities to become a better person and wealth builder:
Lost $150,000 on a real estate deal…the result, I became a better real estate investor.
Last year I missed out on a $60,000 gain in less than a week because I didn’t allow my trade to play out to the original plan I had laid out. Instead I lost $13,000, this has helped me patiently stay the course and remain in a trade. As a result, 2013 is probably my best year in the stock market.
Blew up a business I loved due to a lack of integrity at the time (was barely 20). The result, I am extremely disciplined in being brutally honest when it comes to the good, the bad, and the ugly. Lost $15,000 because a friend called me with a hot stock tip…the result, I always do my own research and have become disciplined in taking my time with investments. I learned that anytime I feel rushed I lose money.
Thousands in the toilet to loans made to family and friends. Never has this worked out for me. Lesson learned, don’t mix money with the people you love; loans are a bad idea in this arena. Plus, I hate asking people for money.
Have been hit with plenty of unexpected bills, IRS, tenant issues, and real estate repairs. Always, always, I have ended up making some extra money elsewhere to more than offset those expenses.
Started a Newsletter that focuses on resource stocks in the worst resource bear market in over 15 years! Still working on that one, have learned to stay the course and stick with what you know is right. The biggest lesson is: Inevitability doesn’t predict imminence! My facts and research are right, but the market doesn’t care, at the current time.
Accurately called the 2008 crisis, but put most of my money in silver which collapsed 50%. Learned that nothing is more painful than being 100% right and still losing money! Luckily I got my Dad out of the stock market in ’07, sold most of my real estate, and bought some nice PUTS on mortgage companies. The opportunity of course was buying more silver for $10 an ounce and to always remember to limit my positions in any one investment.
I’ve went all in on a lot of guaranteed deals, which have cost me thousands. I have since learned to partner and work on my own deals and ignore everyone elses. I have built businesses that have literally turned $1,200 into over $3 Million!
Failed countless times in business, but having my back on the floor with the clients foot on my neck has always led to fresh ideas on how to deliver the results people are looking for! I love being in situations where nothing will work because I always find a way, and this scenario has become exciting to me since I am constantly putting myself in them. You think it’s easy to deliver an extra income idea to our Smart Money Newsletter on a monthly basis, not even close, this is extremely challenging since we are only presenting ideas that work!
Every one of the failures above have made me a better person. Many have led me to keeping or making more money. Remember, sometimes the best lessons in life just help you preserve what you have, but before you get defensive or know when to go on the offense, you have to go through some pain. Embrace your failures as learning opportunities that are a step in the right direction.
Have a prosperous week! We have two interviews below for you.
Two Important Interviews:
Rick Rule’s Strategies on How to Make Money (Casey Summit Interview Part 2)
Nolan Watson: How to Make Money in Mining