Never Changing valuation Will Eventually Destroy You

Advisor they told us to do this so we did come on guys you know listen to yourselves if you don’t understand it don’t invest online house valuations in it isn’t that what Warren Buffett once said if I can understand it I’m not going to invest in it so don’t be caught in the whole activity that everyone else is doing it so we’ll do it too and you know they’re quoting returns that are too good to be true they often ah you know so it’s really important to understand that it’s you’ve got to take some responsibility and you can mitigate that risk by you know understanding what you’re about to embark on and build up that knowledge and hopefully this podcast is helping you do that, yeah when you said if it’s too good to be true it usually is one of the things.

that we do in our team when we because we back test the performance of the assets for you if it’s an abnormal outcome we dog harder yeah because we go all the reason why ten percent roughly is where’s at so if something comes back at ¬†over a long period of time I tell the guys double check it do it again year there’s a typo there’s something in the formula that nice and not always but if it sounds too good to be true it usually in because over a long period of time there have been consistent returns you get from your money and if it’s setting above-average returns it’s more speculation love it then than in vesting all right next one on the list money management one of my favorite topics terms of Paul money management if you can’t manage your cash flow if you.

can get your house in order then it’s not a good idea to invest in property because usually we’re going to involve debt as part of that conversation so coming back-to ABCD you know here we are in cashflow and borrowing so there are several parts of this you know we’re talking about borrowing risk we’re talking about liquidity risk we’re talking about all these things and you know inpatient risk and temptation risk around buying things that you really don’t need and then all of a sudden you get yourself into the cycle of bad debut versus good debt or what I like to refer as productive dick because.