Category Archives: Psychology of the Deal

Investment psychology

Don’t talk to the boss

I was reminded of an interesting phenomena this weekend at Steve Navra’s course. Many people on hearing a speaker want to deal with this subject matter expert, a.k.a “the boss”.

You don’t need to deal exclusively with the boss. If the boss is any good they have put great staff in place, who are better at the job. Get friendly with the staff, stay friendly with the boss. If you only deal with the boss and they get busy, the service declines.

I use this with lawyers all the time. I know the lawyer and the clerk or associate actually doing the work. Then I can get things done by talking to the most appropriate person. I need to do it more with my accountants.

Post Navra Rush

Nella and I just flew back from Steve Navra’s Optimising Investment Structures course. If you want to get financially independant, are pushed for time, and are less than a genius, then book into one of these before Steve decides he has enough Australian clients and goes off to revolutionise the USA. If you are based in Sydney, click quickly because he really doesn’t need more Sydney clients.

Steve and I have discussed his structures over the years. Being a maverick, I find it hard to follow someone elses strategy too closely. Nella thinks I suffer from Shiny New Idea Syndrome — every new idea is distracting and I lose focus (I ask you what does she know?).

I was content with my wealth creation results over the last 3 years – I have just about enough equity to go looking for another investment property. But my assets haven’t worked at optimal efficiency. Heck they have barely broken a sweat — you naughty, lazy assets. Imagine what I could have achieved with six-monthly reviews and a plan of action with milestones and targets? What about using an Optimised Investment Structure that used every dollar six ways. My wealth creation is now augmented with rigorous discipline courtesy of Navra Financial Services. Oh baby feel the burn.

This testimonial is from the heart. Nothing I have seen or done before has made this much sense. In the past I have kept an eye out for good deals, grabbed them when I could then paused to digest. Those pauses have lasted between one and six months. Then I’d wait until I could either afford another deal or another great deal showed up. This was somewhat ad hoc. The time has come for a machine-like approach to building assets.

Brains or Money 2

Sim’ is shaking up my thinking again. He focused on my A students working for C students quote.

‘A’ students are not renown for thinking outside the box. There is a bias within western education to look for the single right answer. This normally means that A students need someone to grade their work and tell them they are right. Rarely will an A student not care about what the teacher thinks. Entrepreneurs and business initiators tend to be egotistical, megalomaniacs with a unhealthy sense of self-importance (by A student standards).

Sim’ gets better results in subjects he enjoys. No ‘A’ student on the planet allows themselves to have such petty preferences impacting their averages. You either get A’s or nothing. Getting a ‘C’ is not an option. Think about it – you know the type. Smart, hard-working, keen.

Sim’ goes on to answer his own questions by discussing attitude. A students make great research assistants and if they can break out the habit of looking for the quickest right answer, they make good research fellows. Entrepreneurship is a bit harder. It demands a passion for uncertainty or excitement. Those personality types normally don’t graduate head of the class.

I’ll always advocate following a dream over sticking to something you’re good at.

Anthony Robbins Wealth Mastery (TM)

After posting about Steve Navra’s Optimising Investment Structures course earlier, I got home to find a brochure for Anthony Robbin’s Wealth Mastery.

I registered and attended Wealth Mastery in 1998 or 1999. I admire Tony Robbins very much, the man is extremely talented as a motivator, influencer and coach. There was also a good discount for me at the time. Coupled with a money back guarantee, I had nothing to lose by going.

Let me say, I loved it. But… during the first half of the seminar there wasn’t anything I didn’t already know. Sure, I wasn’t applying it all and found that fact very motivating. So I asked for a refund before the appropriate time. That gave me a lesson in self-confidence in asking for what I wanted.

“No, I don’t want to attend another event,” I said, “I’d like a refund. I am not getting what I want.”

“Yes, I do actually understand the content,” I said, “I have a B.Ec. and used to work for a money market trader. I’d like a refund. I am not getting what I want.”

When dealing with a skilled influencer, my only advice is to stick to your message and repeat it.

Many people who go, love Wealth Mastery. I loved it and didn’t finish it. But many people I talk to cannot immediately apply the principles. They spend time networking with other graduates until they reach a comfort level that lets them impliment some of the ideas. I know a few graduates who haven’t made an investment after a few years — they can’t find the right strategy.

This could easy become a post about unnecessary, expensive seminars. But I know graduates who made fortunes after attending. They basically found a strategy that worked for them and stuck to it.

That is the real lesson. Find a strategy that works and stick to it. Continue your education as you gain experience. Revise and refine the strategy as you reap the rewards.

The cost of the seminar is not indicative of it’s value. Spend what it takes to find your strategy.

But it does make Steve Navra’s course at $286 worth a look.

Steve Navra :: Optimising Investment Structures

Nella and I are attending Steve Navra’s Optimising Investment Structures course this weekend in Melbourne. A little bird told me this may be the last formal course Steve will run in Melbourne. Nella normally hates going to courses, preferring to put into practice the things she’s learned over the years. We could once have been called course junkies.

Despite that I think Steve’s weekends represent phenomenal value for money. In these days of $3,000 courses, it is inspiring to see a course cost less than our airfares from Sydney. This is basically because Steve is not in the Seminar Business. However our attendance is not determined by price at all.

We’ve been to a couple of Steve’s Q&A’s over the years. Steve makes a dollar work six times and shares the how he manages his own assets. Go check out the articles if you want an overview. However as each person is unique the detail comes from the time spent around a table hashing out examples. This process cannot be done online or in general articles – I’ve tried to explain the Steve Navra principles but once you get beyond the generalisations it quickly becomes specific to the investor. I believe a weekend thinking and discussing my financial strategy will be worth millions over the next 10 years.

Seriously consider what you are doing this month to create wealth in your life.

Following the pack

Nova 96.9, the Sydney radio station, are running a contest called Double Dilema. They give a tricky situation and ask you to SMS your choice, then tune in at 5pm and see if Sydney agrees with what you think. Random prizes are offered to induce participation.

Sydney’s Channel 7 Sunrise program also uses Yes/No phone polls. The peer pressure in this sort of group-think is incredible. I’ve found myself doubting my convictions in response to polls that don’t go my way. Do I really care what 74% of respondents think?

On the other hand, leading the pack is dangerous in the stock market (and potentially also in real estate markets). Anybody still think Telstra 2 was cheap? The trend is your friend.

My motto is “don’t be a schmuck!” The madding crowd have no clue — so don’t follow them. But keep aware that a stampeding mob can kill you if you stand in their way.

Brains or Money

Further to yesterday’s post on smarts being an obstacle to wealth. I remember reading

‘A’ students go on to work for ‘C’ students and ‘B’ students go on to work for the government.

I don’t remember where I read it, but it was during the late 1980’s. let me know if you have a reference so I can attribute it.

Sim’ Rhymes with Time

Sim’ is a very smart friend of mine. So smart in fact that I think he would already be filthy, stinking, rich if he weren’t so smart. It’ll take him a few years longer, coz he’s finally learned that making money can be simple. That should be a compliment, comment below if it came out wrong.

I believe really smart people have large handicaps to overcome in order to become wealthy. I believe that you are really smart if you are reading this. That’s why I don’t spoon feed you. Plus isn’t it fun to talk to smart people? So the take-home value of my post is keep it simple, smarty.

Anyway Sim’s finally got a blog where, among other things, he eloquently and persuasively makes a case for the correct pronounciation of his name. It is a parable for focus, intelligence and coherence. Overcoming the circumstances of his birth name, Sim’ created an image of what he wanted. People told him he needed to change the spelling to convey his meaning. But he knew what he meant, and enough others knew (at least the one’s who matter). Sim’ doesn’t need to change the world, merely his little corner of it. Happiness and empowerment flow from that.

FYI, yes, the rest of Sim’s blog is very interesting. I don’t think that parable was a stretch. Think about it and leave a comment.

Flu and Harry Potter

I thought I was doing very well, having ducked 4 flu’s around the office this winter. Pride goeth before the fall. So I’m feeling miserable with a box of tissues.

I’ve been reading Harry Potter and the Goblet of Fire (HP4) with my 9 year-old daughter, Gaby, then burning a little midnight oil reading Harry Potter and the Order of the Pheonix (HP5). Tonight Gaby tells me a huge spoiler for it. Damn! Raised voices and a little tantrum from Dad. That’s why I don’t blog on my superiour parenting skills I guess.

I blame the flu.

Navra Funds

I finally found time to meet with an advisor from Navra Financial Services. We discussed property and share investments as well as an investment in the Navra Blue Chip Australian Share Retail Fund. The financial plan is being prepared and will be ready in a couple of weeks. Very exciting stuff.

Hopefully we’ll buy another investment house soon if I can get my business affairs in order.

Steve Navra then showed me some results of his recent trades and I can admit I’m jealous. Luckily my own trading is greatly influenced by Steve’s ideas so I am only a little green.

One of my frustrations at the moment is being stretched thin. I wear the hats of husband, boss, father, investor, friend and club member. I feel like I am doing none of them well. One of the ways to improve my overall success is to delegate some of the jobs. So good investment results without large time commitment on my part is better than great results with huge time investment.

It’s a kind of strange life-balance equation.