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You Will Fail, Just Fail Wisely

In business, sometimes the way up, is down. You have to go through some hiccups, challenges, and short term failures in order to win. According to a Forbes magazine study, asking 400 billionaires questions, they found one of the few things they had in common was brilliance in mathematics. They were great with numbers, which is not a surprise. Wealth building is a lot to do with numbers. Numbers bring order, and this is especially true when it comes to finances. Warren Buffett once said: The first rule of investing is dont lose money; the second rule is dont forget Rule No. 1. Mr. Buffet is not just being sarcastic, he is sharing a truth that can easily go past your head. It is a universal principal that says: it is more difficult to build something, the more steeply it depreciates. This leads on to another principle which says that: wealth grows over time. Doing things early, investing now rather than later, practicing the habits that bring profit will cause you to see greater results. Procrastination can only lead to one thing: poverty. Every wise investor is great at risk management. The professionals know that truly wise investors are not greater, they are just patient enough to wait longer for substantial results.

Most investors that millions and even billions from investing, put their money into a business and expect returns in the long term. Then, they simply wait till they see those results, no matter how dark things are looking. Risk management will teach you that how much you lose when you are wrong, is more important than how much you gain when you are right. I am talking simple maths those who were challenged in school could understood, yet powerful when applied to business. Forbes say know the numbers. But even more importantly, I would say know the key, universal principles that govern those numbers.

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