A lot of guys asked me "What's the idea behind business?"
The marketplace is a very intelligent place. It is so intelligent that the moment you participate, you have already alter the very condition that makes it favourably for your entry. Then how are we going to play this little game.
Business is complex. So to play at this level complexity only causes further headache. The idea is to simplify it. Lots of people like to play that Robert Kiyosaki's Cashflow Game. But, it gets them nowhere.
My Solution: Go to facebook and try to accumulate from $0 to 1 million on Texas HoldEm Poker.
It is not easy to accumulate $1m. I have only managed up to $450k+. So I must say $1m is a good target practice.
Once you learn how to accumulate cash. You would have learned about patience. You will realise that there is no such thing as luck. You will also learn that there will always be good luck for those of you who are extremely patient. You will also realise that every player has an equal chance of having a good hand and every dog will have his day on the table. You will learn to respect other players as your equals.
Business is also like that. Every player will have a good hand given enough patience. So exercise that patience.
At the same time, it also teaches minimising risk-taking. You can never always show-hand all the time. That way, you will lose even the shirt you are wearing. Luckily you can learn this lesson from a virtual game. Else, you will lose bigtime for real. Same thing happens in business. You should minimise your borrowings. If possible, never borrow to buy anything. I can undertstand the sexiness in the idea behind leverage. But, only stupid business guys leverage. You would have learn from the poker game that you can have a long long long series of very bad hands. You simply can't wager. So it is the same for business, there are good days and there are innumerable bad days. So if you leverage, you can't hold on to your cards and you have no choice but to give up. If that happens, you lose everything you have and not only you return to square one and more often than not, you are at square minus 5. So you really need to be super careful in taking risk.
Leverage sounds good but only on paper. So don't even take risk. Pay in full your asset purchase. It is painfully slow, it is painfully stupid, it is painfully hard to accumulate enough to game. But, the market will reward you with great opportunities when the market dives. And it will dive.
Great businesses must have good content and great asset appreciation.
Let's do a bible study: "When god closes all the doors, he will open a window." So do exercise some patience.
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