The Secret Ingredients That Will Make You Rich

Posted July 14, 2011 at 3:55 am

by Anthony Norvell
Author of The Million Dollar Secret That Lies Hidden Within Your Mind

These Secret Ingredients Will Cause People to Give You Money and Make You Rich:

1. Give something of value to the world. You want more of the material treasures of life, but are you willing to give something of value in return for them? In checking the lives of over ten thousand famous and rich men and women, I found that the value they received in money, recognition, fame, or power, was directly in proportion to what they gave the world.

Mental energy, time, service, personality, gifts, and creative talents, are all convertible into gold or other things of value. I discovered that the people who give things to the world that help the greatest number attract money easier then those who create for a small group.

The scientists, inventors, and creative minds, such as writers, dramatists, actors, and producers, seem to make the biggest fortunes, because they are bringing products, comforts, luxuries, entertainment and value to millions of people. Find what it is the world needs, and then set to work producing it for the greatest good of the greatest number of people and your fortune is assured.

2. Put integrity and quality into your services or products. The hidden ingredient used by many people is integrity and quality. This applies to whether you make bread of manufacture automobiles. If you want the world to proclaim you, give people these secret ingredients and they will make you rich.

But this also applies to other values than monetary ones; what makes a good friend? Someone you can depend on; his honesty and integrity, his character, stamp him and his actions. This ingredient can be used for winning love and holding it also. In fact, it applies to every creative act of your life.

3. Think of new things to improve and change people‘s lives, and they will make you rich. It was the newness of products like nylon, plastics, wire and tape recording, TV projection, transistor batteries, frozen foods, canning foods, and all the other modern discoveries and inventions, that made them so great. Look about you, in your own work or home, and see how you could improve or change the things about you, and make it easier for people to live, or to enjoy life more. The world will reward you with recognition and money.

4. Work to add to the comfort of people, to raise their standards of living, or to improve themselves, and you will win the support and recognition of others also. People are all anxious to raise their standards of life, and if you can think of some service, or some product to help people in being more comfortable, or having higher standards of living, your fortune is made.

5. If you can add to the world‘s knowledge or show people how they can use their knowledge to best advantage, people will respond to you and give you money. One of the greatest advances in modern knowledge was in the formation of home correspondence courses and this has led to a complete revolution in the fields of education. Now, at home, one may complete his high school education, take a course in mechanics, electronics, hotel management, and almost any other subject. Millions of people enroll in such courses, and million of dollars are spent for books and courses in these fields.

6. If you can show people how to be healthy and eat right, you have another sure means to a fortune. Gaylord Hauser has made a million through lecturing and writing books on these subjects. Elizabeth Arden has built a multi-million dollar business a year, catering to women who want to lose weight and be healthy and efficient. Then there are those who help inspire and uplift people and who cater to a deep-seated need for soul-inspiration, peace of mind and peace of soul. Such workers are humanitarian, and their efforts deserve support and recognition.

One of the best known in such inspirational work is Dr. Norman Vincent Peale, whose books and inspired radio and TV appearances have helped millions. Another, who has made a great name for himself in New York, and whose books are nationally distributed is Dr. Raymond Barker, who lectures at Town Hall in New York, as has overflow audiences every Sunday morning. In the new Philharmonic Hall of Lincoln Center in New York is Dr. Ervin Seale, who inspires those who hear him with his programs on right living, right thinking and spiritual philosophy. Both of these men may be heard on radio in New York City, where they speak to thousands weekly.

7. If you can build people‘s egos and make them feel a sense of self-importance, you will win a fortune. Dale Carnegie wrote a famous book entitled How to Win Friends & Influence People and founded an institution on public speaking and self-improvement that is still making a fortune long after his death.

Josephine Dillon, who trained Clark Gable and who discovered and made Ely Culbertson famous, was such a dynamic, inspired woman. She was able to make people project their talents to the world through her technique of training. Lee Strasberg, the noted drama coach, who is responsible for over fifty of our greatest Broadway stage and movie successes, is another such person who has a knack for bringing out the ego in another person. When the late Marilyn Monroe‘s will was read, it was found she left half a million dollars to this great teacher for helping and inspiring her.

By Anthony Norvell. This is an excerpt from The Million Dollar Secret That Lies Hidden Within Your Mind

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New Sir Richard Branson Interview

Posted July 5, 2011 at 12:35 pm

by Joe Polish

IFRAME Embed for Youtube

Virgin Unite is the non-profit foundation of the Virgin Group. They unite people to tackle tough social and environmental problems in entrepreneurial ways.

As the overheads of Virgin Unite are covered by Richard and the Virgin Group 100% of additional donations go to the front line where they are needed the most, for example, to support young entrepreneurs in South Africa, or homeless teenagers all over the world, or to stop young girls from suffering with fistula.

I support Virgin Unite, please get on board and do the same at virginunite.com. Still need to be inspired?  You can join Virgin Unite and Richard for their incredible leadership gatherings around the world.

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Three Things Millionaires Won’t Tell You

Posted June 27, 2011 at 3:55 am

Here’s 3 of the best pieces of advice (In our humble opinion), extracted from Smart Money’s 10 things Millionaires Won’t Tell You:

#3) “I didn’t Get Rich By Skimping on Lattes.”

So how do you join the millionaires’ club? You could buy stocks or real estate, play the slots in Vegas — or take the most common path: running your own business.

That’s how half of all millionaires made their money, according to the AmEx/Harrison survey. About a third had a professional practice or worked in the corporate world; only 3 percent inherited their wealth.

Regardless of how they built their nest egg, virtually all millionaires “make judicious use of debt,” says Russ Alan Prince, coauthor of “The Middle-Class Millionaire.” They’ll take out loans to build their business, avoid high-interest credit card debt and leverage their home equity to finance purchases if their cash flow doesn’t cut it.

By the way, we have a contact on the east coast who will take you by the hand (yup, he’ll personally attend to your personal situation) and show you how to qualify for up to $250,000 in interest-free business credit: There are no strings attached to this one.

It’s a full-service solutions provider that we’re using too. If you have a business Tax ID, and an above-average personal credit score, you can easily use this company to obtain unsecured 0% credit cards for things such as real estate, paying off higher-interest lines, or reinvesting in secure accounts appreciating against the dollar. This is a fantastic company, run by seasoned, ethical pros. You can find out about this provider inside our Wealth Vault.

Nor is their wealth tied up in their homes. Home equity represents just 11 percent of millionaires’ total assets, according to TNS. “People who are serious about building wealth always want to have a mortgage,” says Jim Bell, president of Bell Investment Advisors. His home is probably worth $1.5 million, he adds, but he owes $900,000 on it. “I’m in no hurry to pay it off,” he says. “It’s one of the few tax deductions I get.”

#5) “You Don’t Get Rich By Being Nice.”

John D. Rockefeller threatened rivals with bankruptcy if they didn’t sell out to his company, Standard Oil. Bill Gates was ruthless in building Microsoft into the world’s largest software firm (remember Netscape?).

Indeed, many millionaires privately admit they’re “bastards in business,” says Prince. “They aren’t nice guys.” Of course, the wealthy don’t exactly look in the mirror and see Gordon Gekko either. Most millionaires share the values of their moderate-income parents, says Lewis Schiff, a private wealth consultant and Prince’s coauthor: “Spending time with family really matters to them.” Just 12 percent say that what they want most to be remembered for is their legacy in business, according to the AmEx/Harrison study.

Millionaires are also seemingly undaunted by failure. Crane, for example, now runs a successful company that screens tenants for landlords. But his first business venture, a real estate partnership, went bankrupt, costing him $20,000 — more than his house was worth at the time. “It was the most depressing time in my life, but it was the best lesson I ever learned,” he says.

#9) “Turns Out Money CAN Buy Happiness”

It may not be comforting to folks who aren’t minting cash, but the rich really are different. “There’s no group in America that’s happier than the wealthy,” says Taylor, of the Harrison Group. Roughly 70 percent of millionaires say that money”created” more happiness for them, he notes.

Higher income also correlates with higher ratings in life satisfaction, according to a new study by economists at the Wharton School of Business. But it’s not necessarily the Bentley or Manolo Blahniks that lead to bliss. “It’s the freedom that money buys,” says Betsey Stevenson, coauthor of the Wharton study.

Concomitantly, rates of depression are lower among the wealthy, according to the Wharton study, and the rich tend to have better health than the rest of the population, says James Smith, senior labor economist at the Rand Corporation. (In fact, health and happiness are as closely correlated as wealth and happiness, Smith says.)

The wealthy even seem to smile and laugh more often, according to the Wharton study, to say nothing of getting treated with more respect and eating better food. “People experience their day very differently when they have a lot of money,” Stevenson says.

To get the other 7 things Millionaires don’t want you to know, click here…

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To watch a video about what the average millionaire is really like, click here…

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Nine Traits Of The Middle-Class Millionaire

Posted June 20, 2011 at 8:46 pm

from MyMoneyBlog

Russ Alan Prince, author of The Middle-Class Millionaire, has been trying to understand a new sub-class of Americans called the “working rich”. Prince defines them as those with net worths between $1 million and $10 million, but who still work for a living.

After conducting a survey of both middle-class millionaires and those just plain “middle class” (defined as having income of $50,000 to $80,000 and net worth under $1 million), he distilled these differences into 9 traits for Forbes.

Apparently, middle-class millionaires:

1.Work Longer. The average middle-class millionaire puts 70 hours a week into the job. They take 12 vacation days a year, seven fewer than the average middle-class worker.

2.Value Networking. More than 60% say knowing “many, many people” is very important in achieving financial success.

3.Take Risks. Over 90% of middle-class millionaires admit to having made a major career or business decision that had a bad outcome.

4. Avoid Vanilla Corporate Jobs. Over 80% own their own business or a have a stake in a partnership.

5. Do It For The Money. 74% say that choosing a career “for its potential financial rewards” is very important to achieving success.

6. Don’t See Themselves As Rich. Fully one-third of those worth $1 million to $10 million think of themselves as middle class (the other two-thirds consider themselves upper middle class). Meanwhile, 21% of middle-class people (making $50,000 to $80,000 annually) call themselves members of the upper middle class.

7. Put Family First Over Community. The values the mass affluent place the most importance on are ethics, responsibilities to loved ones, parenthood and children’s education.

8. Pay For Help. Half of them have hired personal or career coaches.

9. Put Family First In Vacation. Over 60% of middle-class millionaires say that spending time with family is an important component of a vacation. By contrast, only 28% of middle-class workers think so.

Overall, there are some interesting differences. But I personally don’t see these as a “how-to” template – There’s no way I’m consistently working 70 hours a week – the whole point of being smart with money for me is to work less. Also, I feel like some information is missing. Are working millionaires older than average? Being a working millionaire at 30 is a lot different than at 60.

[ Source: MyMoneyBlog ]

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17 Simple Ways to Health, Wealth and Wisdom.

Posted May 28, 2011 at 5:30 pm

by Dr. Richard Cawte

The 1st Pathway: Give yourself time!

Not long ago I was on the phone to a client who, like all my clients, had stopped watching the news for a week when he started working with me.  He called to tell me that he doesn’t watch television at all any more.  “I have so much time to do the things I want to do!” he said to me enthusiastically.  “It’s changed my life!”

It’s worth thinking about.  How much time do you spend watching TV each week?  Would it surprise you to know that the average is 28 hours every week?  That works out at four hours per day, or if you want to look at it another way: 20 years of your life watching TV from morning to night if you live to be 80! That’s the average.

It’s not surprising.  We’re all tired at the end of the day.  We get back home, put a meal in the microwave and plonk down in front of the telly.  It’s easy.  But it takes up a lot of our time when we could be doing something else and, as you’ll see in my special report on the effects of television, there are a lot of good reasons for limiting the time you spend in front of “the box”.

What was great about talking to this particular client was that he was so enthusiastic about his life now.  He was full of energy and he was enjoying his life more.  In fact, he sounded more like one of my kids than a 55 year old!

The 2nd Pathway: Do what you love doing if you want to be rich.

When we are young we take on anything, we’re willing to take risks and ready to live life to the full: we’re enthusiastic.  As we grow older we tend to lose that enthusiasm.  It seems to get buried under the mound of everyday routine chores and a fear of change.

How can you look forward to the day if you’re not enthusiastic about what you’re doing?  The answer is: you can’t.  Sure, you might get through life, putting yourself on hold, pressing the pause button on your dreams, and you might earn good money, but does that make you happy?

Just what exactly does being rich mean for you anyway?  Do you have a clear idea, because a lot of people say they want to be wealthy, but don’t really have much idea of what that means.  So, here’s what is says in the dictionary.

Wealth is an “abundance of possessions and material riches”, but it also involves a sense of “happiness, well being, community and common good.”

That’s pretty interesting, don’t you think?  Not many of us get taught that at school.  We tend to think being wealthy means flash cars, big yachts and huge houses: which is a part of it, but not all of it.  Defining what wealth means for you is one of the first steps along the path the health, wealth and wisdom.

The 3rd Pathway: Unlearning what you know.

You might be surprised at what you really think about being rich, because most of us get conditioned to think it is not a good thing.  Think of all the expressions you know about money: how many of them are positive?  Not many is my guess.  We talk about the “stinking” rich and the “filthy” rich.  We learn that it is easier for a camel to thread the eye of a needle than it is for a rich man to enter heaven.  We’re told that money doesn’t buy us happiness, that the best things in life are free, and even that (the love of) money is the root of evil…

The third path is to unlearn all these things we are taught about wealth, to remember that the original definition of wealth does include happiness, a sense of community and doing things for the common good: to know that wealth means your own well being, in other words your health, instead of just money.

The 4th Pathway: Focus on what you do want, not on what you don’t.

The way to get what you want is to focus on it.  A lot of people spend their time focusing on negatives.  The daily news is a good example of this: it always focuses our minds on the terrible things in the world instead of on the millions of good things happening every day.  That’s why I always ask my clients to stop watching the news for a week and then tell me how they feel.  They always feel better!

If you let yourself focus on the negatives, that’s what life will bring you, because life is like a mirror: it reflects back what you think.

When you choose to do something that you really enjoy, you can chat about with your friends on the phone, in the pub, or wherever it may be.  It is easy to focus on it, because it is a part of who you are and what you truly want for your self.  The fourth path is to make your hobby your work, so that your leisure time becomes your income stream!

You’ll find it brings you all kinds of rewards as well as the financial ones.

The 5th Pathway: Your words are the diet of your mind.

When you’re doing what you love, it frees up your imagination to create life as you want it to be.  When you’re doing something that makes you feel good, the words you use when you talk to friends about it will be words that make sense to you.

Words are the diet of your mind.  When you use words that make you feel good, you feed your mind and your body, so you nurture yourself.  It really is that simple.  You actually do “eat your words”!

It’s been proven that imagining something is just as powerful as actually doing it.  It impresses your subconscious mind.  The fifth pathway is to use your words like a pair of scissors to cut out the future life that right now only exists in your imagination.

The 6th Pathway: You get what you expect.

Imagining life as you want it to be, instead of focusing on what you don’t want, means that you start to expect good things and when you begin to expect good things they come knocking at your door!

You really do get what you expect in life, so start to expect the best – from yourself, from your kids, from your friends, and even from people you have never met.  It’s much more fun to be expecting good things instead of bad ones.

For instance, instead of saving for a rainy day, which means that you can be sure it will pour on you just when you don’t want it to, why not save for a sunny day?  You’ll be expecting the best that way, instead of expecting the worst, and so you’ll open up the way for better things to come to you.

The 7th Pathway: Your ships come in over a calm sea.

There are plenty of opportunities out there.  The deal of a decade doesn’t happen once every ten years, it happens as often as you want it to.  Life is not about opportunity, it’s about choices: the choices you make each and every day.  Are you choosing to welcome new opportunities or have you already decided that things never go your way, that someone else is always the lucky one?

One thing is for sure: if you are in a permanent state of high stress, worrying about money, fretting over how you’re going to pay the bills, you will find it harder to bring the wealth that you want into your life.  It’s a simple rule: it doesn’t matter how many ships there are out at sea or how full of goodies they are, none of them can get into the harbour if there’s a storm raging.

We all have plenty of ships out there in the seas of opportunity, but often we are so anxious, so worried, that we create too much turbulence for them to get to the dock.  To become a magnet that attracts what you want in life, you need to say farewell to worry and stress.  After all, when did you last see a worried magnet?

Read the remaining 10 pathways here…

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Time to Get Rich

Posted May 11, 2011 at 3:04 am

by Gary North

“If I had just known at age 18 what I know today!” That lament is among the most universal among people aged 50 or older. Is there any society in which itr cannot be heard?

I was reminded of this when I watched a video of half a dozen of coach John Wooden’s most talented basketball players. It was produced in 2010, just after his death at age 99. He had retired 35 years earlier, yet he was still remembered and admired.

The story was basically the same for each of those now middle aged – or older – men. Wooden had been a great teacher, not just a coach. They all said how much sense his principles of living had meant to them two or more decades later. But all of them said that they had not paid much attention at the time. I had heard the same thing before he died from other former players.

Here was a legendary coach who taught some of the finest athletes in America. He was a very smart man, and more to the point, a very wise man. His chart of the pyramid of success has been seen by millions of people. Yet he was unable to get the basics of his outlook across to young men who had come from all over the nation to play for him. (Oddly, the group in the video had all come from southern California.) You can see it here.

What does this tell us? That youth is wasted on the young – a lament of oldsters throughout history and across many borders.

It is not a matter of brains. It is a matter of character. From time to time, we do hear of young men who seem to understand as teenagers how little time men have, and how large the payoff is for hard work, high thrift, and dedication to the mastery of some field. These are the super-performers discussed in books like Malcolm Gladwell’s Outliers. They invest their crucial 10,000 hours before they reach age 21.

But it is not just character. It is something else. It is their understanding of time. They recognize that effort and assets invested early in life have a compounding effect. This makes an enormous difference at age 40 or 50, if a person finds the right niche in which to invest his time.

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3 Billionaire Habits for Non-Billionaires

Posted May 2, 2011 at 12:25 am

by Hans Wagner

If you are one of the 937 billionaires identified by Forbes in 2010, no need to read further. But if you have not reached that plateau quite yet, these three habits can keep you moving in the right direction.

While adopting the habits of billionaires may not necessarily make you one, it can give you the proper perspective on building wealth. Here are three wise sentiments that can get you to the next level.

1) Saving money is as important as making money. This may seem counterintuitive, but many billionaires got that way by living well below their means. Warren Buffett, #3 on the Forbes list, has lived frugally from the very beginning of his career.

He used his own savings as the source for his first investments, and he steadily built his wealth to become a millionaire by age 26. Buffett still lives in the home he bought in Omaha more than 50 years ago for $31,500. He drives his cars until they wear out, rather than dropping six figures on a new one every six months.

Carlos Slim, a native of Mexico and the world’s richest man, is worth more than $53 billion. He does not own a yacht or an airplane, and like Buffett, he has lived in the same home for more than 40 years.

 [Read more about Carlos Slim in 5 Astonishing Billionaire Portfolios.]

Ingvar Kamprad, the founder of privately- held Swedish furniture company Ikea, believes saving money fits with the lifestyle of his customers. When Kamprad flies, he flies coach. And when he travels locally, he either takes the bus or drives his 15-year old Volvo 240 GL.

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Building Up and Giving Back: The Story of John Paul DeJoria

Posted April 29, 2011 at 4:17 am

by C. Yoder

Every fledgling entrepreneur who worries about surviving in today’s tough marketplace should have the chance to speak with John Paul DeJoria. Now on Forbes’ list of multi-billionaires, he began his career selling door-to-door.

“I started with $700 in 1980. Inflation was 12.5%. Interest rates were 18-20%. Unemployment was 10.5%, and you had to stand in line around the block to get gasoline for your car,” said DeJoria, a serial entrepreneur who is chairman and chief executive officer of John Paul Mitchell Systems, Inc., the enormously successful beauty products company and famous hair care system.

“It was worse than it has been for the last 3 years,” DeJoria said. “Much worse.”

DeJoria, who has lectured on management at Yale, Stanford, UCLA and the FBI, has a list of tips for small business startups that begins with quality. And ends with the Golden Rule.

Tip number one: “Whatever service you provide or whatever product you want to sell, you must make sure it’s of the finest quality, because you don’t want to be in the order business,” DeJoria said. “You want to be in the reorder business.”

He adds, “We believed in what we did, we believed that if we told enough people about it, we would eventually succeed.”

DeJoria and his partner, the late stylist Paul Mitchell, founded the Beverly Hills, CA based firm to create products exclusively for hairstylists. DeJoria later developed the smash hit that has elevated tequila to the ultra-premium ranks of liquor. Along the way, he has embraced causes of public concern worldwide, from nutrition in Appalachia, to child victims of AIDS in Africa, to economic sustainability and a line of products based on natural ingredients, to removing land mines.

Forbes puts DeJoria’s wealth at $4.2 billion. But in the beginning, he slept in his car.

“There is no right economy to start a business. It’s anytime,” DeJoria said. “John Paul Mitchell Systems started in the worst economy since the great Depression. It was a struggle, but we believed what we had was the very best.”

The partners had no money, and therefore no advertising budget—just a conviction that their products were great. By persuading hairdressers to try them out, DeJoria was convinced they would, in turn, recommend them to customers. So the plan was…

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Super Rich: A Guide to Having it All

Posted January 16, 2011 at 3:23 am

by Stacy Curtin in Newsmakers

From music to fashion to flim, TV and other businesses, Russell Simmons — who is worth more than $100 million — seemingly has the “Midas Touch”. In his new book, Super Rich: A Guide to Having it All, he wants to show you how you too can achieve super richness.

Tech Ticker’s Aaron Task recently sat down with the “godfather” of hip-hop after a Jivamukti yoga seminar in midtown Manhattan to glean some of the key principles that have made him a successful entrepreneur and one of the “Top 25 Most Influential People of the Past 25 Years,” according to USA Today.

Simmons grew up in a middle-class neighborhood where he has noted, “the only entrepreneurs we knew were the numbers guys and the drug dealers.”

He has come a long way and some would even say he’s become the epitome of the American dream.

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6 Rules of Success From an Investment Legend

Posted September 29, 2010 at 3:22 pm

by Morgan Housel:

Before there was John Paulson or Eddie Lampert, there was Michael Steinhardt — one of the first, and most successful, hedge fund titans. From the late ’60s through the mid-’90s, Steinhardt’s hedge fund compounded money at 24% annually after fees. He’s a legend.

Blogger Barry Ritholtz dug up a list of Steinhardt’s six rules of success from an old speech he gave. Here they are, along with a few of my comments:

1. Make all your mistakes early in life: The more tough lessons you learn early on, the fewer (bigger) errors you make later. A common mistake of all young investors is to be too trusting with brokers, analysts, and newsletters who are trying to sell you something.

Let’s explain this photographically: You want to be Bill Gates here, not Ken Lay here.

In a recent interview, Steve Forbes asked Warren Buffett what made him so different. According to Buffett:

Well, I was lucky that I got started early. My dad happened to be in the investment business, so I would go down to his office on Saturdays. At age 7 or so I started reading these books that were around the place. I knew what I wanted to do early. That’s a huge advantage.

2. Always make your living doing something you enjoy: Devote your full intensity for success over the long-term.

One of the most incredible quotes I’ve come across is from an interview with Chatroulette’s eighteen-year-old founder Andrey Ternovskiy. Asked if he’d ever sell his blossoming company, Ternovskiy said, “I’d sell for the sake of becoming rich, and the first thing I’d do if I were rich, I’d buy something. I’d make an investment … [and] that investment would be buying Chatroulette.”

Hard to go wrong when you’re that passionate about your job.

3. Be intellectually competitive: Do constant research on subjects that make you money. Plow through the data so as to be able to sense a major change coming in the macro situation.

Says Peter Lynch: “I’ve always believed that searching for companies is like looking for grubs under rocks: if you turn over 10 rocks you’ll likely find one grub; if you turn over 20 rocks you’ll find two. During [some market stretches], I had to turn over thousands of rocks …”

4. Make good decisions even with incomplete information: Investors never have all the data they need before they put their money at risk. Investing is all about decision-making with imperfect information. You will never have all the info you need. What matters is what you do with the information you have. Do your homework and focus on the facts that matter most in any investing situation.

In 2007, value investor Mohnish Pabrai lost nearly all of his investment in Delta Financial after the company went bankrupt. Asked about the loss, he replied: “Investing is a game of probability. Sometimes when you make favorable bets, you still lose them.” Asked if he’d do it the same way if he could do it over again, he said bluntly, “It was a good bet.”

The lack of perfect information ensures that you’ll never find the perfect investment. Acting when the odds are in your favor is the best you can do — even if you end up losing.

5. Always trust your intuitionIntuition is more than just a hunch — it resembles a hidden supercomputer in the mind that you’re not even aware is there. It can help you do the right thing at the right time if you give it a chance. Over time, your own trading experience will help develop your intuition, so that major pitfalls can be avoided.

I’m not disagreeing, but it’s important to know the limits of your intuition. Here’s a strong rebuttal from an unrelated Barry Ritholtz article:

You’re a monkey. It all comes down to that. You are a slightly clever, pants-wearing primate. If you forget that you’re nothing more than a monkey who has been fashioned by eons on the plains, being chased by tigers, you shouldn’t invest. You have to be aware of how your own psychology effects [sic] what you do. This is why we as investors sell at the bottom, get panicked … Every good financial decision I’ve made comes from, “Wait a second, monkey boy, step back, don’t do that.” Once you realize how your own brain chemistry works against you, it gives you a chance to not panic at the bottom.

6. Don’t make small investments: You only have so much time and energy when you put your money in play. So, if you’re going to put money at risk, make sure the reward is high enough to justify it.

According to Charlie Munger: “If you take the whole history of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), and you take out the 20 best transactions, our record is a joke.” The capital gains alone from just three of Berkshire’s investments — Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), and American Express (NYSE: AXP) — come to nearly $20 billion, or 10% of the company’s current market cap. And that doesn’t include dividends.

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