You Should Never Send Your Money Into Battle Unprepared or Undefended (Kevin O’Leary)
You’ll see why learning from bad investments will make you a better investor.
Source — YouTube
Kevin O’Leary, also known as “Mr Wonderful,” has become famous for his harsh and mean demeanour on the popular US TV show Shark Tank.
Some question if this is his personality or simply an act for the show, but there’s no denying his straightforward approach has made him a successful businessman and investor.
O’Leary attributes most of his success to his mother, Georgette, a skilled investor.
After her death, the O’Leary family discovered that she had invested a third of her weekly paycheck in large-cap, dividend-paying stocks, yielding significant returns.
O’Leary credits his mother’s saving and investing strategy as a critical factor in his early success in business and investing.
One of the critical pieces of advice he often shares with individuals looking to invest their money is never to send your money into battle unprepared or undefended.
Kevin Oleary:
“I never send my money into battle unprepared and undefended.
I send it to conquer, take currency prisoner, and bring it back.
So much of life is a negotiation — so even if you’re not in business, you have opportunities to practice.”
O’Leary emphasises being strategic and cautious when it comes to investing.
You must thoroughly research and understand any investment’s risks and potential rewards before putting your money on the line.
It’s essential to have a clear understanding of your investment goals.
Here’s How You Lose $15 Million.
For all of his sound advice and jargon-free communication style, O’Leary has been in the media spotlight for all the wrong reasons.
His public relationship with Cryptocurrency Trading firm FTX paid him $15 million to be a paid spokesperson.
It’s now brought his integrity and investment advice into question.
Kevin O’Leary revealed that he had lost the entire $15 million to serve as a spokesperson for FTX, a now-defunct cryptocurrency exchange accused of fraud.
O’Leary and other celebrities, including Tom Brady and Larry David, have been sued by FTX investors who say the exchange’s ambassadors should have exercised more caution and done more due diligence before promoting the platform.
In an interview, O’Leary admitted to falling victim to “groupthink” and not properly assessing the risks associated with investing and promoting FTX.
Groupthink can have significant impacts on investors and investment decisions.
When a group of investors or investment professionals prioritise getting along and agreeing with each other over critical thinking and decision-making, it can lead to poor or flawed investment decisions.
When a group is prone to groupthink, individuals may focus more on maintaining group harmony than thoroughly analysing the potential risks and rewards of different investments.
Kevin O’Leary:
“Total deal (FTX) was just under $15 million, all in.
I put about $9.7 million into crypto. That’s what I’ve lost. It’s all at zero.
I don’t know because my account got scrapped two weeks ago.
All the data, all the coins, everything. Then I lost the money I invested in the equity as well. Those are zeros as well.
I lost $1 million of FTX equity which is now worthless to the bankruptcy protection process.
A further balance of over $4 million has been eaten up by taxation and agent fees.”
It Would Help if You Made More Good Investment Decisions Than Bad.
To succeed in business and investing, O’Leary believes it’s essential to be strategic and cautious in your decision-making and carefully assess the potential risks and rewards of different investments.
It’s obvious, but by following this advice and making more good investment decisions than bad, you can increase your chances of success and maximise your returns.
Kevin O’Leary:
“FTX was not a good investment, and I don’t make great investments all the time.
Luckily I make more good ones than bad ones, but that was a bad one.”
Final Thoughts
Most of Kevin O’Leary’s advice includes information about careful planning and risk assessment.
His advice is everything he didn’t do before jumping into bed with now bankrupt crypto exchange FTX.
Even world-class investors who manage billions in client funds get it wrong.
They make terrible investment decisions too.
Making mistakes is a natural part of the investment process; learning from them and using them as opportunities for growth and improvement is essential.
O’Leary has spoken publicly about some of his bad investment decisions and has emphasised the importance of acknowledging and learning from these mistakes to become a better investor.
Even though O’Leary has made a horrible and very public investment that’s turned sour, his advice is spot on.
You should ask yourself, is your money prepared and defended with good knowledge of what you’re investing in?