This week’s Steve-ism is:
“The more things you leave to chance, the more chance there is that things will go wrong.”
Lots of well-intentioned but naïve investors purchase real estate without completing very much pre-purchase education or due diligence, and so ride their luck, hoping that expensive problems won’t emerge and that the market will move in the upward direction.
For instance, if you turn up at auction and buy a property without having done any research at all, then your purchase must be more risky than someone who has studied the area, engaged a property inspector, crunched the numbers, etc.
Investing, unlike gambling, shouldn’t be a matter of chance. It should be a matter of informed choice.
You might be lucky once or twice, but you can’t be consistently lucky over and over again. Sooner or later an expensive problem or property downturn will emerge, and when it does, property punters risk substantial financial losses.
On the other hand, sophisticated investors apply what I call my “Three S’s To Success” approach:
1. They’re skilled
2. They implement a strategy
3. They follow a system
Want to know more about my “Three S’s To Success”? Watch this video:
“The more things you leave to chance, the more chance there is that things will go wrong” reveals that the way you go about investing largely determines the risk associated with it.
Smart investors mitigate and manage their risk by leaving little to chance. Speculators on the other hand, ride their luck and hope for the best.
How much of your financial future are you leaving to chance, and how much to choice?
If you have a question, comment or query then post it below. Alternatively, you can browse what others are saying.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
Its old news now i imagine but i repeat it for those who are maybe just brand new.it certainly isnt for everyone but for some people with the right god given gift of creativity and insight then remember steves advice given many many years ago.he certainly taught numerous skills but this one sticks in my brain like no other. .LOOK FOR PROBLEMS. .SELL SOLUTIONS. .if you dont know what that means then ask the boss himself but believe me that whatever line of work or pursuit you find yourself in then this 1 pce of advice could change your life..
Thanks for making a post William and contributing to the conversation.
Buy problems and sell solutions is certainly on the list for a future Steve-ism.
Cheers,
Steve
Thank you Steve for the weekly posts. I am enjoying all the great information you provide in different ways.
Thanks Gladys. Your encouragement is always much appreciated.
– Steve
As always I love the words of wisdom, they keep me on track and moving forward.
Thanks, Steve
Thanks Steve – your Steve-isms are a great way to ensure continued focus throughout the week!
Informed and considered obviously through experience. Love how these posts enlighten but also bring you back on track. Thanks Steve
Thank you for this regular “sims”. Small bite size ensure what you teach is easily digested.
Really good advice
is there a template that maybe a newbie can follow in terms of number crunching
thank you Steve
We all look forward to being skilled investors who can profit whether the market goes up or down. But growing up is always tough and inhuman.
Thank you Steve for constantly giving us encouragement and concrete ways to make us feel less helpless and dazed in the process.