- Mike Tyson.
- Buster Douglas.
- Tyson = heralded as the greatest ever.
- Buster Douglas barely squeezed into the title fight.
- Tyson 40:1 favorite.
Only one casino in Vegas offered bets for the fight.
What'd folks do?
- "Tyson won't lose this one."
- "This is a sure thing!"
- "Let's mortgage our house on this fight!"
That Saturday night, Douglas downs Tyson.
- Folks lose their homes.
- Folks lose their businesses.
- Folks set themselves financially back for decades.
Even if you think your business idea is a "sure thing", and you get the idea to pour your life savings into it, one variable could destroy you.
Nothing is a sure thing.
People + Foreclosures
It's simple to blame Wall Street; but, doing that just teaches everyone to blame others when we lose.
What lessons can we take away from the mortgage crisis?
- Nothing is a sure thing.
- Don't spend what you don't have.
- Only make a risky bet when you can afford it.
When you're investing, tack this:
- "If this one investment totally blows our face, will we stay in business?"
That keeps you from:
- making risky bets that can destroy you
Yes, you can't grow big without taking a big risk; but pouring everything into an unsure thing -- despite all the clear signs -- will ultimately destroy you.
The ideal model:
- Big risks = to grow.
- Conservative bets = to stay in business.
Do 'em both.
Big. Affordable. Bets.
Posted on October 29
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