August 21

Investing, Thinking & a Biz Catastrophe…


This is a bit random, but I thought it might help some here.

Due to all of the interesting events in 2020 a LOT of businesses have been hurt. Some more than others. But I’ve always been a massive advocate of HOW you think and HOW you react to events, is the key thing that separates the successful from the whiners. Whiners never win.

Put it this way, I’ve had some absolutely HORRENDOUS outcomes in one of my businesses this year. So bad it’s actually funny.

One biz lost over £150k per MONTH of revenue in the space of a Boris announcement in March! That’s £1.8m of revenue per year gone, £100k per month of profit evaporated and a biz valuation reduction of at least £3.6m in like 15 minutes!

Now I’ve seen people go mentally lala with far less biz impacts. But ultimately, as I said, it’s how you THINK that determines your bouncebackability. You simply have to accept reality as it’s pointless bitching about the government and demanding change! You can only control what you can control. So all we did as a team is accept our new reality and plan a route forwards.That’s literally all you can productively do. And I’m extremely grateful for the team and management team in that biz as they’ve dealt with these changes amazingly.

And it’s the same with investing. I cannot even remember the sheer volume of trades/investments which I was eyeing up where I didn’t buy and then that thing to go zooming away! I always miss out on something at least once a year. Tesla and ETH are the 2 biggies for me this year. Despite me constantly talking about how awesome they are and how high they are likely to go.

BUT IT DOESN’T MATTER!!!!! I’m going to miss out on WAY MORE opportunities. That’s just life. That’s trading/investment reality. So don’t beat yourself up! On the flip side, what I 100% KNOW is that every now and then, I’ll latch onto a trade/investment/biz that will go to the moon and one lunar ride always makes up for those missed opportunities. Even if it’s one per decade! You have to keep your eyes on the bigger picture!

The key thing here is that you MUST learn from your errors and adapt yourself accordingly so you don’t condemn yourself into a repeating spiral of pain from landing on the same landmines!

So to be more granular here with me missing out on Tesla and ETH, what have I learned?

1.) I was too greedy. When TSLA was at like $300 and ETH $99 I was MASSIVELY bullish on them long term. Hell just watch my YouTube videos back in the past lol. But the trader part of me was holding out for a slightly better entry point. Which is foolish as these were investments, NOT trades! I should have maintained my medium/long term mindset and just got in and forgot about them. Oh well. Next!

2.) I got distracted by other things I needed capital for at the time. I thought I could dip in and out of something else before they rocketed and thereby squeezing a few more percentage points out of that capital. Again, stems back to greed.

3.) I shouldn’t be as obsessed with opportunity cost as I am…it has lead to a few disasters in the past.

Anyway, random essay of a mind fart here but I hope it helps at least one person!

You may also like

Leave a Reply
{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}