It’s August, and we are about halfway through summer – there’s still another half left, so enjoy it please. The White House is in a sad state. I can’t seem to get away from the craziness that has engulfed our highest level of office. The recent ousting of Scaramucci provides a useful lesson on trying to recover from bad investment choices. Here’s the recap:
Trump made an investment in Scaramucci, because Trump believed that he would get a bigger return on utilizing Scaramucci over Sean Spicer as the administration’s Communications Director. In 10 days, Scaramucci proved that he was not a better bet, and ultimately displayed his inability to do the job well – his tirade with the New Yorker clearly had negative ramifications, as it should have.
So, you might be saying – where’s the investing lesson for me?
Well, you make investment choices every day. If you make a bad one you must act swiftly, no matter how crazy it looks. For example, you might invest in a company where someone on the management team does something terrible (think United). If that person does something that brings down the value of the company, signified most by a decrease in the share price, there may be long-term effects on your ability to make money.
Sometimes it’s best to cut your losses and look for a better investment opportunity with a management team that will act in the best interest of shareholders like you and me. Even Trump knows this, as evidenced by ousting Scaramucci. Since I can’t remove Trump from office, I hope he makes better decisions, for the sake of everyone.
Onward and upward
And, thanks to all of you for supporting me via Twitter and in-person as I spoke on the panel “Startup Death Valley: Fears of Financing” as part of the Fear Paradox Summit. If you missed it here are some important takeaways as you deal with your money:
- Be the CEO of your money – I’m going to keep saying this until you keep saying it.
- Learn how to have spectacular failures – You’ll learn a lot about what not to do when bigger money opportunities come your way.
- If you need to fund a business, make sure you aim to get revenue first – use some of your own savings to reach initial revenue targets.
- Don’t max out your credit cards for the business – instead, keep your day job first before destroying your credit and putting yourself in a whole.
- You have one life – make the most of it by maximizing every day.