It is important when you are learning something new that you believe in yourself enough that you can actually learn what is being taught and implement what you are learning.

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

I think that takes some degree of optimism in yourself. Maybe it is just a belief in yourself. It is said that Henry Ford admonished “If you believe you can or you believe you can’t. You’re right.”

One thing that I look for during a free consultation is a belief in one’s self and are you an optimist? I’m not looking for people who will replace their own good judgement for mine. I want someone who will make up their own minds and take responsibility for their actions but are willing to listen to sound principals and use them in their business when they find the ones that conform to their own beliefs.

Using the stock market lessons again, at the risk of someone thinking that is all I can teach. When Martha Stewart Omnimedia was at about $40 per share and she volunteered to go to jail, just in case she was found guilty in a trial where she was shouting that she was innocent. The morning after Lumber Liquidators was called out as having much higher amounts of formaldehyde than is allowed by law. The morning that Russia invaded Crimea and the DOW tanked. More recently, after two years of wild fires where people died and billions of dollars of losses and the local electric company, PG&E was found to be liable.

Martha Stewart Omnimedia went to less than a dollar. Lumber Liquidators went on a more than 2 year slide, they were forced to change their manufacturing practices and replace all of the bad material that had been installed. The Russia invasion caused a very sharp, deep and quick decline and recovery. PG&E, some investment houses think could go to zero. I don’t think it’ll go that far but is a definite short play. I have just as many news items that caused a stock or market segment to go up. They aren’t as easy to illustrate quickly as the declines.

In hindsight it is easy to see why they fell in price. Sometimes in the moment it is difficult to make a decision, second guessing can really destroy your investment philosophy.

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