Hello friends! it’s Richard, founder of Short-Term Rental University and Airbnb super host. I want to talk about all the crazy dislocation that’s happening in all sorts of investment markets. This creates a tremendous opportunity if you can stay calm cool collected and take actions.
The stock markets at all-time highs and the crypto markets are getting killed down; 50% or more -altcoins even more down 60 70 %. Bonds? Well, yields are touching levels they haven’t touched in years. There’s so much dislocation opportunity, volatility, fears in the streets, in the crypto markets and I am sure the first thing you want to ask yourself is what to do?
Well, stay calm, stay rational, and read this book!
This book was written almost a hundred years ago it’s called Reminisces of a Stock Operator. It is fiction, very light reading and you will get through it really quickly. Even though we’re talking about new technology, Fang stocks, and cryptocurrencies, at the end of the day investing is about human psychology. It is about controlling your emotion and these things haven’t changed. This book talks about a stock speculator who learned all these lessons during the stock market crash, the ups and downs, went to buy or sell from a first-hand experience. He made a fortune, lost a fortune, made another fortune and there are so many lessons in there that can be applied to us as investors.
Forget about the technology
Forget about the new chipset
Forget about what GE is doing in Tesla
Forget about Bitcoin and Cryptocurrencies
At the end of the day: it’s supply and demand
What this book really tries to do is get you in touch with your head and your emotions and help you really make a strong investment. Here is a small passage:
“It was never my thinking that made the big money for me, it was always my sitting. Got that? My sitting tight. It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time and began buying or selling stocks when prices were at the very level which would show the greatest profit and their experience invariably matched mine. That is they made no real money out of it. Men who can both be right and sit tight are uncommon.”
I think that that’s the really interesting thing about the volatility that we’re seeing in the marketplace right now. If you have a firm conviction about:
- The importance of the technology or the revolutionary nature of blockchain
- How companies like Amazon and Tesla are going to fundamentally change consumer behavior
- How anything else may drive opportunities on a go-forward basis
Stick tight to that conviction as opposed to letting the market ups and downs dictate your buy and sell.
I first started reading this book in the 1990s when I became a floor trader in the Mercantile Exchange. I read it yet again when I took a position at the Blackstone Group where I managed a 1 billion dollar portfolio. I then read it again when I worked at Ramius Capital Group and I managed a four billion dollar portfolio.
This is the kind of book that you can reference time and time again, but what really helped me was to have conviction in my feelings. This book helped me buy the dips when everyone else is really panicking and worried about the factors in their life. To have that conviction that says “Supply and demand, this is way oversold, this is an opportunity!”
I’m not telling you to buy this dip, this works for me. You have to get in touch with your human psychology. Know yourself, control your emotions and make very challenging decisions during awkward periods of dislocation and volatility. Read the book and you will find that that’s when people make the most money.
I hope you found this helpful and we will include the link to the book below. If you haven’t subscribed to the YouTube channel, please do! Also, please leave comments below.
What books have helped you and your investments in your building your real estate empire and running your business and being an entrepreneur?
Again, the more we share and comment below the more books we’ll read the more educated we become!
Thank you very much and happy Hosting!
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