I’ve always wanted to start my own business.
But I thought it was too risky.
How do I take the plunge to start something?
- What if I fail?
- What if people laugh at me?
- What if I lose a lot of money?
Instead, like most guys,
I pursued a career in investment banking and then pivoted to investment management.
Then COVID hit 2 ½ years ago.
While running, I was listening to the book, The Secret, by Rhonda Byrne
Part of the book hit me like a ton of bricks.
It said most people are afraid to ask for what they want.
So they end up never pursuing their dreams.
I stopped running.
I couldn’t believe it was that simple.
I was afraid of risk like everyone else.
A famous Henry Ford quote, “Whether you think you can, or
you think you can't – you're right,”
Basically, you have a decent chance of achieving your goals b/c
so many others are too scared to leave the comfort and security of their current lives.
So what does taking risk mean?
Making a big decision when faced with uncertainty.
When I managed $200 million at a hedge fund,
I was constantly betting and managing risk.
My research and analysis of my stocks and the economy gave me a deep understanding of the possibility of how the future might unfold.
Preparation helped me reduce the risk and reduce uncertainty.
Yet I wasn’t taking enough risk in my career.
“In most of our decisions, we are not betting against another person. Rather, we are betting against all the future versions of ourselves that we are not choosing. […] Whenever we make a choice, we are betting on a potential future. We are betting that the future version of us that results from the decisions we make will be better off.” - from Annie Duke's book “Thinking in Bets, Making Smarter Decisions When You Don't Have All the Facts"
After starting my firm 2 years ago,
I don’t feel like what I do is risky business.
If anything, it feels the opposite.
What I see is that a lot of people are getting screwed by their financial advisors.
I come in and fix these problems.
What I see is that other advisors
- Hid fees from their clients
- Ignore their clients
- Have no idea what it is like to risk capital and
- Have no idea what it is like to have skin in the game.
As any investor and founder knows, growth can only be achieved through the following:
- taking a chance and
- managing the journey.
Your Friendly Wealth Engagement Guide,
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This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.