A Gift to My Children (4)

Dedicate yourself to what you feel passionate about

When you start something new, you simply connot hope for success by dedicating yourself to something that you don't even care for.  It's because you'll never feel any passion. 'As a student, I loved to learn about different countries.  When I was on Wall Street, I realized that some people would actually pay money for my knowledge that the price fo copper would rise due to the revolution in Chile.  Whether or not I was rewrded, I was passionate about studying history and events that were taking place over the world.  I knew I was better versed than others on the global situation and this knowledge helped me profit in my investment.

To live a worthwhile life, it is better to do what you want even if you don't get rewarded.  This is the key to becoming successful.

Attention to details differentiates success from failure

Paying attention to the finest of details makes the difference between success and failure. However trivial it may seem, you must be able to research and check each and every piece of information.  Don't leave any stone unturned.  The reason whyy most people don't succeed is because their research is faulty and limited to the confines of what is immediately available.  There is only one way to obtain more knowledge than others, and that is through meticulous researching.  It requires a lot of work and diligence, but this effort will surely give you an avantage over others.

I do not undermine or underestimate any of the steps I am required to take when I invest. If I were to invest in a business, I look through each and every financial statement including the detailed notes.  I will also find a way to verify 'financial statements or future projections that are announced by the top executives.  And I will not invest unless I can positively say that I am more knowledgeable about the particular firm than 98% of Wall Street analysts.  Without this extra effort and work, there simply can be no success.

(to be continued...)

Read more...

A Gift to My Children (3)

Chapter 2
Focus on what you like

My dear daughter,

This is my message to you to help you succeed in your life and in investing.

Age is irrelevant if you want to start something

I was a 5 year old entrepreneur when I started my first business.  Perhaps a little young, you might think, but age is irrelevant when you want to start something.  My interest was in making money, and I would much rather spend my time picking up empty bottles at baseball games to make a little cash than playing baseball with some friends.  The first time I got a loan to start my own business I was 6 years old.  I bought a peanut parcher and was quite successful in my sale of peanuts and drinks at little league baseball games.  In 5 years I had paid off the loan and still had $100 in my bank account.  I realized I like investing better than entrepreneurship in college when I began my first investment using the scholarship funds I had, and then decided to become an investor.  If you find something that you really want to do, don't let age hold you back.  Be bold and simply do it.

Start with what you like

What should anyone do in order to be successful?  The answer to this question is really easy.  It is to do what you are passionate about.  I was successful in investing because this is what I enjoyed most.  But you don't have to be an investor just because your father is.  Open up your own restaurant if you like cooking.  Learn to dance if that is what you like.  The quickest way to success is to undertake what you like and give it your very best.

For me, it was fun to research and learn in detail what's happening in different parts of the world and it helped me be successful in investing.  If I had ended up trying to do something else, like a fashion designer, my life would have been quite disappointing.  Even now I have no clue about clothes and I never know what color or cut to wear together because I have absolutely no interest in clothes.  There's simply no way I would've achieved anything in that field.  That's why I say that it's best to start with something that interests you and you truly enjoy.

(to be continued....)

Read more...