Be Strong

First, put yourself in a position of strength by working from a base of what you know best. You have acquired skills and knowledge that amount to human capital. Spend that capital wisely. Don’t let enthusiasm over making money or the enticement of a particular project lure you into an enterprise where you lack the requisite skills and knowledge. If you do, you risk losing capital and becoming distracted, thus lowering the probability of success in the endeavor where you have the greatest leverage.

Second, make sure your thinking is based on reality. Many investors’ financial decisions are weakened by wishful thinking (probably grandmother will leave me a bundle) or an unrealistic imagination. (Judging from my first year’s growth, in ...

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