Our Favorite Failures: Learning Valuable Lessons
There is a story that Sara Blakely, the founder of Spanx and the first self-made female billionaire, has told several times that caught our attention. She said that at the end of the day, sitting around the dining room table, her father would ask her and her brother what they had failed at that day. The thinking behind this was that if they hadn’t failed at something, then they weren’t pushing their boundaries far enough and therefor missing out on opportunities to grow and progress in their lives.
It got us to thinking: we often see headlines on success, hear about the triumphs and are regaled with stories of what it’s like to bask in the glory of accomplishment but we don’t get to hear about what it takes to be “successful”. Building business, building a client base and building a successful investment portfolio requires discipline, curiosity, relentless pursuit of excellence and most of all, the tenacity to carry on during humbling moments being willing to learn from our mistakes.
In the spirit of progress and the pursuit of success, we thought we would share our top three favorite mistakes that we have made and now have grown from.
- Improperly-balanced portfolio. We’ve learned to adjust our portfolio from time-to-time to account for age, financial positions, risk factors, and other contingencies that vary from individual to individual. Hiring financial providers to assist with this task goes far in making sure that a portfolio is balanced and is accommodating all outstanding factors and reduce the risk of significant losses.
- Not enough diversity in a portfolio. The saying goes that you shouldn’t put all of your eggs in one basket. If a portfolio is too dependent on a single sector or industry is at risk for major losses. Sectors can face challenges with growth; a particular company could face internal conflict; both of these scenarios mean that if a majority of a portfolio is dependent on either one of these, it’s difficult to be successful with investing.
- Lack of patience and discipline. Successful investing is a marathon, not a sprint. Stocks and securities are fluid and the news is designed to create fear and hysteria. Educating yourself, having a financial advisor that you trust and keeping the big picture in mind will help cultivate the psychological components necessary to investing success.
What are your favorite failures? And what are the lessons that you gained out of them? We would love to hear in the comments.
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