Five Months Of Consistent Failure Leading To Magic

Five Months Of Consistent Failure Leading To Magic

In my last post – 2016 Performance Review – Five Full Years Beating Buffett and Crushing The Market I talked about many great things that happened in 2016.

Today’s post is the complete opposite…  It’s about the five months of consistent failure I’ve endured since October 2016 and the magic this is now leading to.

I planned for this post to come out shortly after the last one.  But until now, I didn’t have enough time to write it.  Or the better term is that I didn’t make enough time to write it until now.

I’ve been busy building the Rivera Holdings investor base.  Busy looking for deals.  Busy building my real estate career.  Busy making connections.  And busy trying to make money.

But those are excuses.

If I really wanted to I could have made time to write this post.  The main reason I didn’t is because it’s about failure.

Failure is hard on the psyche.  Failure isn’t fun.  Failure is hard to talk about.  And it’s certainly not fun to write about.

Even when you’re learning, improving, and growing as I did in 2016 and have continued doing in 2017, failure without much success – or perceived success – takes its toll.

I’m extremely hard on myself, have been ever since I was a kid, and likely always will be.  I’m always trying to improve, learn, and succeed in anything I do.  And no matter how much I do always think I can do more.

Because of this anytime I endure consistent failure, thoughts like the following begin to creep in and lead to even more doubt and frustration.

  • Should I keep going?
  • Why am I doing this?
  • Is this worth it?
  • When is this going to work out?
  • Will this ever work out?
  • When will I begin to succeed?
  • Will I ever succeed?
  • Should I do something else?

But because I’ve gone through this many times now I know this is the process I go through before figuring things out.

While writing How To Value Invest the following process occurred.

I spent a month or two in the “this is terrible” and “I’m terrible” phase while writing, editing, and getting the book ready for publishing.

The whole process from planning the book, to writing it, to publishing it took almost 10 months.  So this means I spent about 20% of the time while working it in the “This is terrible” and “I’m terrible” phases.

I don’t remember what got me out of that mindset other than continuing to work and grind every day and then publishing the book.

Earlier, I went through this same process before knowing what it was while beginning to learn about value investing.  And I’ve gone through this process multiple since then when starting businesses, raising capital, and with various other ventures.

I’m talking about all this because from October 2016 until now in Spring 2017 most of what I’ve done has failed.

But through failure comes progress…

We’ll talk about progress soon but let’s finish talking about how much I’ve failed in the last five months.

The Failed Acquisition

In November 2016 I posted that Rivera Holdings was going after its first acquisition target.  The owner and I agreed to an $8 million purchase price for the business and the land.  And we agreed on a 60 day exclusivity period.

The land, property, and equipment by themselves were worth between $6 and $7 million and I valued the business – including operations, land, and equipment – at between $10 and $15 million.

The business produced excess cash flow.  Had long-term competitive advantages.  And with some cost cuts and expansion, I projected cash flow to almost double within the first two years we owned it.

We had the chance to buy a cash flow producing business with long-term sustainable competitive advantages at a cheap price, with a huge margin of safety, and good potential upside.

So what happened?

The short answer is I failed…

Not because I didn’t put in the effort or time to query and pitch to investors.  But because I was a horrible sales person and didn’t have the right connections.

I sent emails, called, Skyped, and talked in person with more than 2,054 people during our 60-day exclusive letter of intent before informing the owner I wasn’t able to raise the capital to buy his business.

Out of the more than 2,054 people I was in contact with about acquiring the business I got no response from more than 90% of them.  Major failure.

The people who did respond to me were receptive and said I impressed them with my analysis and detailing of the business.  But I heard two things over and over about why they wouldn’t invest.

The first was that I lacked experience running a multi-million dollar business like this.

And the second was that because they didn’t know me on a deep personal level we didn’t have enough trust built up between us for them to trust me with millions of dollars of capital.

I had an estimated 98% failure rate talking with people about becoming Rivera Holdings investors so we could buy this business.

But what did all this failure lead to?

It helped me realize I needed to work on several things to get to the level I want to be on.

The first thing I needed to fix was being a horrible sales person.  Because by not closing this great opportunity I failed myself, my investors, and these potential clients.

The second thing was that I needed to gain experience owning and running a business.  This is one of the reasons I got into real estate. I’ll talk about the other reasons in a separate post.

And the third thing it helped me realize is that I needed to grow my network of connections.

This leads us to much more failure…

Much More Failure

After the acquisition failed, I stopped to think about what I needed to do going forward and where I needed to improve.

I talked about these above and then got to work again.

This now leads to major failures – yes multiple – every day.

A typical work day of mine now looks something like the following:

Call 10 to 20 people to talk with them about their home or property.  Either for Rivera Holdings to acquire for investment purposes, or for me to list for sale as a real estate agent.

On average I hear back from only one to two of these people.  Or about a 90% failure rate.

Email 20 to 30 people about the same as above.  Generally, I hear back from 1 to 3 of these people.  Or a 90%+ failure rate.

Go to any appointments I’ve set to either list a home for sale or look to buy it for Rivera Holdings.

Learn by listening to Audiobooks anytime I’m in my car… The only time of my day I’m not failing.

Send out information to potential investors every week on deals I’m looking at now or have looked at in the past.  There’s a 99%+ failure rate here.

Do preliminary due diligence on 5 to 10 assets I’m considering investing in.  This includes looking at single family real estate, multifamily real estate, public companies stock, private businesses, etc.  After doing this I generally only consider one of them a good investment.  Or a 90% failure rate.

After doing more due diligence I generally will put one to two offers in on properties per day.  Or consider doing further due diligence on a public or private business. This is after looking at more than 100 potential assets.

So on average for every 100 assets I look to invest in, after doing due diligence I will only consider investing in at most two of them.  Or a failure rate north of 98%.

As of this writing, I’ve had zero of the 30+ offers I’ve submitted accepted.  Or a failure rate of 100%.

And I have a wife and two young daughters so I get told “no” and am failing on a constant basis at home :).

After reassessing what I needed to do after the failed acquisition I now fail every day on a massive scale.  Something I haven’t done on this large of a scale since I began learning about value investing 10 years ago.

I now swim in failure.  But by doing this over the last five months or so something magical has begun happening.

The Magic Of Massive Failure

Image result for grant cardone on failure

For years I’ve known I needed to take more action every day.

That I’ve needed to call and email more people, meet more people in person, research more public and private businesses for investment, and recently to research more properties to invest in and talk to more people about helping them buy and sell their homes.

But this is hard because it involves a lot of failure and discomfort through things like cold calls or sending out mail or email advertisements.

After writing my article about positive obsession – 10 Tips To Becoming A World Class Investment Analyst – and then reading things like Be Obsessed Or Be Average and the 10X Rule both by Grant Cardone, I knew I needed to do even more to get to where I want to be.

Without failure there is no learning or improvement.  Without massive action you’ll never reach your goals because you’ll never be putting anything into practice and others who are doing more will leave you in their dust.

But by doing both of these things you’ll kick learning and improvement into overdrive.  And this will get you towards your goals and dreams faster.

And we all want to succeed faster.

So where has all this massive action and failure over the last five months gotten me?

I outlined some of the great things that happened since putting in massive amounts of effort every day in the 2016 Performance Review post.  And I repost these below:

  • Started Rivera Holdings LLC.
  • Began raising capital.
  • Grew personal connections by an exponential amount due to capital raising efforts.
  • Grew from 320 subscribers between Value Investing Journey and Press On Research to now 455 total subscribers between those two services and now also the Rivera Holdings Mailing List.
  • Read between 50 and 75 books in 2016.
  • Grew from 720 followers on Twitter as of the beginning of 2016 to 1,008 now.
  • Grew from 790 connections on LinkedIn as of the beginning of 2016 to 896 now.
  • As mentioned above we continued helping Mhicaella and her family in the Philippines survive and thrive.
  • For the first time in three years expanded my circle of competence in terms of industries.  I now understand and feel comfortable evaluating three new industries – marinas, hotels, and multifamily real estate.
  • Also expanded knowledge and experience into the private equity/investment arena as well.

But the above aren’t the only things that have begun happening since taking massive action and experiencing massive failure.  I’ve also…

  • Continued expanding my personal network and connections by an exponential amount.
  • Had lunch with, rode in cars with, talked in person with, and talked on the phone, through email, or through Skype with people who are worth more than $700 million combined in the last few months.  And who have access to more than $1 billion in capital.
  • Have even talked with a few about consulting with them on some projects.
  • Built up a huge deal flow.  After losing the original acquisition I had nothing else to attempt to acquire for a couple of months.  I’m now looking at and putting multiple offers in every day on assets.
  • Expanded my knowledge of sales and the sales process immensely.
  • Gotten Rivera Holdings on more than a dozen distribution lists for businesses, homes, investment properties, multi-family properties and more.  These give us access to deals before they hit public market sites like Loopnet.
  • Begun setting and going to more appointments with potential investors, home sellers, business partners, and business brokers.
  • And have hired two part-time independent contractors that I plan to hire full-time within the next month.

Not only am I doing all the above things, but because I’m acting in such a huge way I’m learning faster than I have at any time since first beginning to learn about investing almost a decade ago.

So is failure really failure if you’re learning, improving, and getting closer to your goals?  Or is not trying failing?

Case in point – the picture below is from a post I wrote on Facebook in February.

The picture on the left is truly failure…  While I have always read and learned as much as possible it doesn’t matter if you never put anything into action.

March was almost completely filled up.  And April will be even more productive than March.

So am I failing?  Or am I gaining the wisdom, knowledge, experience, and connections required get to where I want to take Rivera Holdings?

And if you aren’t even trying to achieve your goals and dreams, or you’re thinking about giving up… Read this –  If Charlie Munger Didn’t Quit When He Was Divorced, Broke, and Burying His 9-Year-Old Son, You Have No Excuse.

Let me know some of your personal failures and how this has or will lead to your success in the future in the comments below.

*Repost* Don’t Be A One-Legged Person In An Asskicking Contest – My Answer To Why Valuation Is Important

*Repost* Don’t Be A One-Legged Person In An Asskicking Contest – My Answer To Why Valuation Is Important

I’m moving my family across country and am unable to post anything new until settling down in the Tampa area.

For more information on how this will affect anything go here.

I hope you enjoy these older posts in the meantime.  And please feel free to contact me.  I’ll get back to you when I can.

To subscribe to the Value Investing Journey newsletter go here.

To subscribe to the Press On Research exclusive newsletter go here.

Thanks so much.

Jason

Last week I asked your thoughts on valuation.  If you think it’s important?  Why or why not?  I asked this because I’ve seen a lot of discussion on the topic in recent weeks.  This post is my answer to that question.

Asking if valuation is important to deep value investors like us is like asking if we follow the teachings of Ben Graham and Warren Buffett.  The answer of course is yes.  But why is valuation important?

Once we understand how to do valuation most of us never think about this question again. And it’s important to understand why.

To show why valuation is important let’s continue with an example from the earlier post.  Why The P/E Ratio Is Useless – And How To Calculate EV.

Why Valuation Is Important

Below is an example of two company’s made up for the example.

Company 1 Company 2
Market Cap 100 100
P/E Ratio 10 20
P/E stays the same under the below scenario.
Cash and Cash equivalents 0 40
Debt 40 0
EV = 140 60
EBIT = 10 10
FCF = 10 10
Company 2 is cheaper when considering EV
EV/EBIT = 14 6
EV/FCF = 14 6

P/E, EV/EBIT, and EV/FCF are all relative valuations.  Companies that have lower relative valuation multiples are cheaper than others.  And companies that are cheaper are better to buy.  Why is this?

To find out why lets invert both EV/EBIT and EV/FCF to find each companies earnings yield.  I explain earnings yield in the following section.

Earnings Yield Estimates Expected Rate Of Return

For those who don’t watch the short video above I’ll paraphrase. Earnings yield is the estimated return you should expect to earn in one year on an investment.

The higher this number is the better. This is because the higher this number is the more a company is undervalued.

Company 1 above has an earnings yield of only 7.1%. Not good enough. I look for earnings yields above 10%.

Company 2 above has an earnings yield of 16.7%. 2.35 times company ones earnings yield. And above the 10% I look for when considering an investment.

This means you should earn 2.35 times more if you invest in company two instead of company one. But this isn’t all…

By doing the work above with EV and earnings yield, not only do you see that company 2 will get you a higher return. But doing a bit more work allows you to see that company 2 is a less risky investment.

Company 2 is safer because it has no debt, while having a lot of cash. The saying that the more you risk the more you gain is a fallacy. This “advice” needs to die because it leads many investors into unnecessary danger.

But these aren’t the only concepts you need to consider when evaluating an opportunity.

EBay And Amazon Businesses

Many of you who’ve followed this blog for a while know that I also run an EBay and Amazon reselling business.  The example below is something I found and sold last year.

I use the concepts talked about in this article every day.  And you can use them whether you’re analyzing a stock.  Or buying something to sell in your business.

Let’s say we have two of the same Giorgio Armani jeans.  Same size, color, condition, everything.  And both are real Giorgio Armani jeans.

Each pair of jeans looks brand new but does not have the tags on them still.  These jeans sell for more than $100 brand new.  But for this example let’s use $100 because it’s an even number.

So both pairs of jeans are the same and sell brand new for the same amount.  But what if I said you could buy one of the pairs for $80 and the other pair for $2.  Which would you buy?

The one that’s selling for $2 of course.

But if you had an EBay and Amazon business how would this change things?  You would need to keep thinking…

One pair we bought for $80 and the other we bought for $2. We can resell both for $100. This means we have the potential to make $20 on one pair and $98 on the other.

The pair we bought for $80 and sold for $100 gives us a 20% return. Not bad. But the pair we bought for $2 gets us a return of 4900%. Or a 49 bagger in a short amount of time. We’ll get back to the time aspect later… This is a spectacular return. And is why valuation is so important.

All else remaining equal, the cheaper a company is the higher return you should expect in the long-term.

This is why it’s important to value businesses. Without doing valuation you can’t know if you’re getting a good deal. Or taking unnecessary risks with your capital.

In the above example is risking your $80 to make a $20 profit worth your time? Or would you rather buy the $2 pair of jeans and get a 4900% return on the same item while risking far less money on a safer investment?

But there’s still more…

You also need to think about the amount of time it will take for your investment thesis to play out. And consider what you can’t invest in while you invest in this opportunity.

This last concept is opportunity cost.

The Opportunity Cost of Investing

As investors we have to consider several choices every time we think about buying an investment.

  • Is the investment safe?
  • Am I getting a high enough return compared to the capital I’m risking?
  • Am I getting a high enough return for the amount of time I expect to hold this investment?
  • Do I already own another company that would be a better investment?
  • If I invest in this company now, am I comfortable holding it for the long-term? Another – possibly better- company may come along and I need to be comfortable losing out on that opportunity.

These are just a few of the many things you need to consider when investing. But for now I want to concentrate on the last bullet point.  It’s the concept called opportunity cost.

DEFINITION of ‘Opportunity Cost’

1. The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

2. The difference in return between a chosen investment and one that is necessarily passed up. Say you invest in a stock and it returns a paltry 2% over the year. In placing your money in the stock, you gave up the opportunity of another investment – say, a risk-free government bond yielding 6%. In this situation, your opportunity costs are 4% (6% – 2%).

Below is a video from Study.com giving a real world example of opportunity cost.

The example of choosing between two jobs is too simple.  But it’s a good starting point.

The thoughts I would’ve added to help me decide which is a better job would be: Which job would I be happier at?  Which one has more room for advancement?  How many hours do I have to work at each?  Etc.

When considering an investment you need to consider more than just valuation.

For example: Which one is safer?  Which one is offering a higher return?  Which one do I have more capital tied up in and for how long?  Which company has higher profits and cash flow compared to valuation?  Am I willing to pay up for a better company?  And much more.

This is how you begin to analyze the opportunity cost of an investment.  And get closer to a decision.

But without valuation you’re only considering part of the equation.  And without valuation you’ll have to rely on gut instinct and emotion.  Two things that will kill you when making investment decisions.

Don’t Be A One-Legged Person In An Asskicking Contest

Yes I know when picking businesses and stocks to invest in not everything is equal like in the examples above.  But this is why you need many tools in your mental toolbox while evaluating things.

And if you don’t consider valuation, opportunity cost, and the other concepts in this article, you’re missing some of the best mental investment tools.  Or as Charlie Munger says:

If you don’t have the proper mental tools then you go through a long life like a one-legged man in an asskicking contest.”

To learn more about mental models.  And start adding tools to your mental tool box so you don’t go through life like a one-legged person in an asskicking contest, go to the earlier post. Car Wash Psychology, Mental Models, and The Power of Habit.

What do you think about valuation?  And did I miss anything in my explanation?  Let me know in the comments below.

***

Don’t forget, if you want to receive two free gifts that will help you evaluate companies faster.  Get all future blog posts. Get future case study information first.  And be entered to win a hard copy of: The Snowball – Warren Buffett and the Business of Life and a $50 AMEX gift card. Sign up for the Value Investing Journey newsletter here.

*Repost* Searching For Case Studies – Turning $2 Million Into $2 Trillion

*Repost* Searching For Case Studies – Turning $2 Million Into $2 Trillion

I’m moving my family across country and am unable to post anything new until settling down in the Tampa area.

For more information on how this will affect anything go here.

I hope you enjoy these older posts in the meantime.  And please feel free to contact me.  I’ll get back to you when I can.

To subscribe to the Value Investing Journey newsletter go here.

To subscribe to the Press On Research exclusive newsletter go here.

Thanks so much.

Jason

I’ve been sick this past week which is why I haven’t posted anything.

But as I’ve recovered I’ve started to look for case study candidates again and have kept hitting walls.  Every company I look at is either crap.  Way overvalued.  Or is something small I may analyze for Press On Research.

Learning happens when we’re challenged.  Not when things are easy.  And I’m having a hard time finding something to evaluate that’s challenging.  So I need your help again.

If you have any companies you want me to research and do case studies about please let me know.  Because the more we’re all involved the more we’ll learn.

Analyzing companies over and over is the best way to learn how to evaluate them for investment.  The more we do here the faster we’ll all learn.  So please let me know of any companies in the comments below.

Until then I’m posting an excellent case study done by Charlie Munger.  It’s a brilliant thought experiment on Turning $2 Million into $2 Trillion via Mungerisms.

Let me know your thoughts about this in the comments below as well.

Searching For Case Studies – Turning $2 Million Into $2 Trillion

Searching For Case Studies – Turning $2 Million Into $2 Trillion

I’ve been sick this past week which is why I haven’t posted anything.

But as I’ve recovered I’ve started to look for case study candidates again and have kept hitting walls.  Every company I look at is either crap.  Way overvalued.  Or is something small I may analyze for Press On Research.

Learning happens when we’re challenged.  Not when things are easy.  And I’m having a hard time finding something to evaluate that’s challenging.  So I need your help again.

If you have any companies you want me to research and do case studies about please let me know.  Because the more we’re all involved the more we’ll learn.

Analyzing companies over and over is the best way to learn how to evaluate them for investment.  The more we do here the faster we’ll all learn.  So please let me know of any companies in the comments below.

Until then I’m posting an excellent case study done by Charlie Munger.  It’s a brilliant thought experiment on Turning $2 Million into $2 Trillion via Mungerisms.

Let me know your thoughts about this in the comments below as well.

*Repost* Warren Buffett And Charlie Munger Are Failures

*Repost* Warren Buffett And Charlie Munger Are Failures

I’m on vacation right now so I’m reposting some of the most popular articles from the blog until I get back on Monday August 3rd.

On Failure Part Two

I wrote a version of this post a few days after leaving my job almost a month ago and planned to keep it private.  But it helped me get over losing my job.  And helped me get over the anger, sadness, depression, fear, and other emotions I felt.  So I’ve decided to share it with everyone.

Rough times happen to everyone from time to time.  But destructive thoughts if left unchecked can lead to bad things.  I’m sharing this post in the hopes of helping someone else who may be going through their own rough times.

But I’m not the best resource to learn from on failure… Let us learn from a couple masters who both failed before making billions of dollars.  And helping millions of people around the world.

Warren Buffett and Charlie Munger Are Failures

Warren Buffett’s biggest failure is now his biggest triumph.  And he uses this “failure” to help millions of people throughout the world.

One of Charlie Munger’s first major investments failed.  But he used that “failure” to become rich and help the world too.

I have failed.  And I will now use this “failure” to help make the world a better place like Buffett and Munger did.

But before we talk about that we need to talk about three major failures.

Warren Buffett’s a Failure

File:Warren Buffett KU Visit.jpg

In the 1950’s and 60’s Warren Buffett started an investment partnership with $100,000 of his own money.  And money he raised from family and friends.

Over time he built the firm by buying portions of smaller companies whose prices were cheap.  He did this so well that soon after starting he was able to buy entire companies instead of just portions of them.

But he soon failed…

Berkshire Hathaway Is a Failure

The original Berkshire Hathaway was a textile company based in New England.  When Buffett took it over no matter what he did the company continued to lose money.  This was because new and cheaper foreign and non union Southern US companies made it impossible for Berkshire to compete on price.  This led to the company losing millions of dollars over the years after Buffett bought it.

As this continued for years Buffett came to realize he was fighting a losing battle.  And instead of continuing to pour money into Berkshire and letting the business fail.  He used this money to buy companies that would make money instead.

He started buying smaller insurance companies.  And used the excess funds from these insurance companies – insurance float – to buy even more profitable and undervalued companies.

In doing this he turned his original $100,000 investment funds into the $357 billion behemoth it is now.  Today Berkshire is one of the biggest companies in the world.  And it owns some of the most valuable companies and brands on Earth.

But by his own admission he wouldn’t have done as well without teaming up with another failure.

Charlie Munger Is a Failure

File:Charlie Munger.jpg

Charlie Munger was first a high profile lawyer.  And then a property developer in California before becoming a full time investor in his late 30’s.

His fund did well for years as he built up the companies assets.  And one of his first major investments was in a company called Blue Chip Stamps.

It was a stamp trading company that also produced a lot of float. For example, if you gained 100 stamps you could exchange the stamps for a prize like a vacuum cleaner.

When Munger bought Blue Chip it was growing and producing a lot of excess cash.  At its peak in 1970 Blue Chip generated $126 million in sales.

But Munger recognized a problem a few years after buying Blue Chip.  Sales began to decline fast.  And nothing Munger did stemmed the tide of falling sales

Instead of letting it fail he used the excess funds from Blue Chip – which was still profitable while sales fell – and used these funds to buy other companies.  He eventually bought Wesco which is an insurance/financial company.  And used the float from this business to buy ever bigger stakes in profitable and undervalued companies.

Sound familiar?

By this time Buffett and Munger had met, exchanged ideas on a regular basis, and were friends.  But they still didn’t work together.

Munger did such a great job running Blue Chip that Buffett bought Blue Chip and merged it into Berkshire Hathaway and then a change occurred.

The Change of Mindset

Buffett has said when this happened, Munger helped change the way Berkshire invested its growing cash machine.  Instead of concentrating on just cheap companies that weren’t great businesses.  They turned their focus to companies that were cheap or fairly valued.  But now concentrated on good to great businesses.

***

Side note on the book Mindset.

I first read the book Mindset after seeing Erik Spoelstra – multi time championship coach of the Miami Heat – recommend it.

It’s a phenomenal read.  And while I read this before the problems I had at my job.  The lessons I learned reading Mindset helped me cope with losing my job.

I cannot recommend Mindset enough not only for coping.  But also for teaching lesson on how to get into the proper “championship” mindset.

If these kinds of lessons interest you I also recommend The Obstacle Is The Way.

***

Due to this combination of minds.  The change in mindset.  And the power of compound interest, Berkshire exploded…

But we will get back to that later…

I Failed Too

After overcoming debilitating health issues that lasted for 10 years.  After teaching myself about investing.  Writing my own full length value investing education book.  And then being hired, I failed.

I thought my knowledge about how to analyze a company’s balance sheet and investment potential was all I needed… I was wrong.

I thought I had all the tools necessary to succeed but I didn’t.  Hard work can only get you so far…

Without the proper mindset, and in my case purpose, you will still fail no matter how hard you work.  And I don’t mean fail at your job.  I mean you will fail yourself.  Your principles.  And what you are striving to become and build.

Buffett and Munger’s Failures Are Now Helping The World

Buffett and Munger grew to become two of the wealthiest, most powerful, and respected people in the world.

Mr. Buffett who has been one of top three most wealthy people in the world for years has gained 98% of his $77 billion net worth after the age of 65.

And will give 99% of this fortune to the the Bill and Melinda Gates Foundation upon his death.

Charlie Munger is worth $1.3 billion.  And has already given hundreds of millions of dollars causes he supports.

Both men not only plan to give billions of dollars to causes they care about.  But the luxury of having all the money they do enables them to also give time to these causes as well.  This is far more important.

While I can’t speak for Mr. Buffett and Munger on their motivations.  I can speak for myself…

I wasn’t making an impact on anyone else’s lives other than my families.  And I failed myself and what I’m striving to build.  That changes now…

My Purpose is Helping Others

This is what I had to learn by leaving my prior company and coming back to this blog.

Together we can make not only the lives of our families betters.  But those of the rest of the world as well.

This is my purpose…

This blog will no longer be about improving my own knowledge.  It will be about teaching and improving others lives.

I have several projects that I will announce over the coming weeks.  All related to finance and geared towards helping and educating as many people as possible.

While I can’t reveal what they are yet since they aren’t finished.  I can tell you today that part of all sales from this blog will go towards helping, educating, and feeding kids and adults who need a hand up.

5% – to start – of all sales from this blog.  My book.  And all future unannounced projects will go to charities of my choosing in the Philippines.  And also to local charities in my area.

The percentage given will grow over time as me and my family become more secure financially.  And the scope of the charities will grow as well.  But this will be a great start.

Together we can make a difference in people’s lives.   Do great things.  And improve the world.

Mr. Buffett and Mr. Munger are going to help tens of millions of people with the money and time they’re contributing.

How many people can a blog and like minded people help?

Let’s find out in the coming years.

Are there any books, articles, sayings, or lessons that you’ve learned that have helped you when you’ve failed in the past?

If so please share with everyone below so we all can learn.

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