EDITORS LETTER
- No Ragrets
Maybe for a misspelt tattoo , but there ’ s no space for regret and self pity in the world of investment .
A case in point : I clearly remember chatting to a computer savvy friend in early 2013 who suggested I invest into this new crypto currency called Bitcoin . At the time it was trading at just over $ 200 ; he had bought a few bitcoins for himself and was championing this as the next big global financial disrupter .
I knew nothing about crypto currency at the time ( still not sure how it really works ) so I decided to do the wise thing and declined to invest in what I don ’ t understand . Needless to say , that “ wise ” choice turned out not to be so clever considering each Bitcoin is now valued at around $ 20k after reaching highs of $ 60k plus .
After he invested early in various crypto currencies , and despite the crazy fluctuations of late , my friend is now leading a very comfortable life , semi-retired in his forties , travelling the world and enjoying expensive hobbies . I am not .
Do I regret my decision not to invest back in 2013 - well of course , that ’ s natural . But I also try to catch myself and make a concerted effort not to dwell in negative thoughts and slight bouts of envy at a close friends ’ seemingly easy financial success . It is much more instructive for me ( and better for our friendship ) to focus on expensive lessons that I have learnt from the experience .
My lesson was that he took a risk back in 2013 because he understood the fundamentals of crypto currency and its potential to disrupt global finance . I did not make the effort to educate myself on the investment opportunity and stuck to my strategy of only investing in assets that I understand . While my decision cost me in terms of a lost opportunity , at the end of the day I didn ’ t lose any capital .
Feeling sorry for yourself over could haves and should haves is as useful as thinking about how you ’ d spend the imaginary lottery jackpot winnings . It ' s nothing more than a creative exercise that gets you no closer to your financial and investment goals .
It ’ s often said that you only regret the things you don ’ t do , and although that somewhat applies to my example above , it is only somewhat true , especially in the property market where almost all real estate investors carry a few financial scars from some bad decisions along the way . Don ’ t be too hard on yourself if you get it wrong occasionally - chalk it up to experience earned and lessons learned - there are always other opportunities out there .
Best regards
DAYNE STERN HEAD OF CONTENT
You are not old until you allow your regrets to replace your dreams - Yiddish proverb
SA Real Estate Investor Magazine JUNE 2022 7