My Worst Investment Ever Podcast

Scott Alldridge – Hot Coffee, Cold Reality: The $10,000 Drone Delivery Mistake

BIO: Scott Alldridge is CEO of IP Services and President of the IT Process Institute, a bestselling author of the VisibleOps series, and a Certified Chief Information Security Officer. STORY: Scott’s worst investment was a stake in a startup promising to deliver hot coffee by drone. Excited by the futuristic idea, he invested before the concept was proven—but the project quickly crashed when the FAA banned drone deliveries and a prototype failed spectacularly. LEARNING: Being first doesn’t always mean being right. Due diligence is non-negotiable.   > “You don’t have to jump in. Being the first with the most doesn’t matter if it’s a bad idea—you’ll lose money anyway.” > Scott Alldridge   GUEST PROFILE Scott Alldridge [https://www.linkedin.com/in/scott-alldridge-1a976/] is CEO of IP Services [https://ipservices.com/] and President of the IT Process Institute [https://itpi.org/], a bestselling author of the VisibleOps series [https://amzn.to/3LHEkJn], and a Certified Chief Information Security Officer. He holds an MBA in cybersecurity and has over 30 years of experience in IT and cybersecurity leadership. Scott empowers organizations to achieve resilience through process excellence, Zero Trust, and AI-driven security. WORST INVESTMENT EVER If you live in the Pacific Northwest, coffee isn’t just a drink; it’s a way of life. Seattle is home to Starbucks, and in Oregon, coffee culture runs deep. So when Scott was pitched an idea that combined coffee and technology—delivering hot coffee via drone—he couldn’t resist. The concept sounded revolutionary: push a button on your phone, and a drone drops off your piping-hot Americano right at your doorstep. It felt like the future—part Amazon innovation, part TED Talk dream. Excited, Scott invested for a 3% stake in the startup. The founders promised a caffeinated empire built on convenience and cutting-edge tech. But just three months later, the buzz wore off. The FAA issued a cease-and-desist order on all drone delivery experiments, particularly those involving liquids. And then came the final straw: the company’s prototype drone spilled an entire cup of hot coffee mid-flight, grounding both the drone and Scott’s hopes. The “coffee drone revolution” turned into a $10,000 lesson in wishful thinking. Delivering hot coffee by drone was never going to fly—literally. LESSONS LEARNED * Being first doesn’t always mean being right. * It’s tempting to jump into the next big idea, especially when it sounds exciting and visionary. However, early-stage innovation carries significant risk, especially when the concept hasn’t been tested or proven. * Enthusiasm can cloud judgment. Instead of investing based on a slick pitch deck or futuristic concept, it’s smarter to wait until an idea is validated, tested, and compliant with regulations. ANDREW’S TAKEAWAYS * Every idea looks brilliant until reality—and regulation—show up. * Even in large corporations, where top analysts and executives lead multi-million-dollar mergers, success isn’t guaranteed. Only about 20% of them added value within three to five years. * Business is hard, and due diligence is non-negotiable. ACTIONABLE ADVICE Always do your due diligence. Before investing in any idea—no matter how exciting—slow down and dig deep: * Validate the concept. Is there a working prototype, or just a fancy pitch? * Check the regulations, especially if the business operates in a grey area (like drones or cannabis). * Assess the risk. What happens if laws, markets, or consumer behaviour change? * Stay patient. If it’s truly a good idea, it will still be good when it’s proven. SCOTT’S RECOMMENDATIONS Scott recommends his Amazon bestseller, Visible Ops Cybersecurity: Practical Ways to Enhance Your Cybersecurity Posture [https://amzn.to/47ntZed], which breaks down complex IT security concepts into real-world strategies that leaders can actually apply. For executives who don’t speak “tech,” he’s also written The Visible Ops Executive Companion Guide [https://amzn.to/47ntZLf], a concise 105-page edition with zero “geek speak”—just actionable guidance. And coming soon: Visible Ops AI: Artificial Intelligence Governance with Practical Guidance, where Scott explores how businesses can safely and responsibly integrate AI while protecting data integrity. NO.1 GOAL FOR THE NEXT 12 MONTHS Scott’s goal for the next 12 months is to double down on two things: growth and impact. On the business side, his goal is to expand the top-line revenue of his IT services firm and bring in new client partnerships. But there’s also a bigger mission driving him—making the world a safer place through smarter, more disciplined cybersecurity practices. PARTING WORDS   > “Thank you for having me today. Let’s keep the world a cyber-safe place.” > Scott Alldridge   [spp-transcript]   CONNECT WITH SCOTT ALLDRIDGE * LinkedIn [https://www.linkedin.com/in/scott-alldridge-1a976/] * Instagram [https://www.instagram.com/scottalldridge1/] * Facebook [https://www.facebook.com/scott.alldridge.24/] * Website [https://scottalldridge.com/] * Book [https://amzn.to/3LHEkJn] ANDREW’S BOOKS * How to Start Building Your Wealth Investing in the Stock Market [https://amzn.to/3qrfHjX] * My Worst Investment Ever [https://amzn.to/2PDApAo] * 9 Valuation Mistakes and How to Avoid Them [https://amzn.to/3v6ip1Y] * Transform Your Business with Dr.Deming’s 14 Points [https://amzn.to/3emBO8M] ANDREW’S ONLINE PROGRAMS * Valuation Master Class [https://valuationmasterclass.com/] * The Become a Better Investor Community [https://astotz.kartra.com/page/become-a-better-investor-community] * How to Start Building Your Wealth Investing in the Stock Market [https://academy.astotz.com/courses/how-to-start-building-your-wealth-investing-in-the-stock-market] * Finance Made Ridiculously Simple [https://academy.astotz.com/courses/finance-made-ridiculously-simple] * FVMR Investing: Quantamental Investing Across the World [https://academy.astotz.com/courses/fvmr-investing-quantamental-investing-across-the-world] * Become a Great Presenter and Increase Your Influence [https://academy.astotz.com/courses/gp] * Transform Your Business with Dr. Deming’s 14 Points [https://academy.astotz.com/courses/transformyourbusiness] * Achieve Your Goals [https://academy.astotz.com/courses/achieve-your-goals] CONNECT WITH ANDREW STOTZ: * astotz.com [https://www.astotz.com/] * LinkedIn [https://www.linkedin.com/in/andrewstotz/] * Facebook [https://www.facebook.com/andrewstotzpage] * Instagram [https://www.instagram.com/andstotz/] * Threads [https://www.threads.net/@andstotz] * X [https://twitter.com/Andrew_Stotz] * YouTube [https://www.youtube.com/c/andrewstotzpage] * My Worst Investment Ever Podcast [https://itunes.apple.com/us/podcast/my-worst-investment-ever-podcast/id1416554991?mt=2]

Dr. Thomas Powell – The One Rule You Must Never Break as an Investor (Even for Friends)

BIO: Thomas J. Powell, founder of The Powell Perspective™, is a seasoned entrepreneur, investor, and advocate for founders, bringing clarity, strategy, and resilience to leaders building at scale. STORY: Thomas invested $3.6M in a friend’s cannabis company, where he ignored his own due diligence framework. Because he skipped key governance protections and didn’t document alignment or exit terms, the investment became frustrating, hard to control, and nearly impossible to fix—proving that breaking your own rules is the most expensive mistake. LEARNING: Never mix friendship and business. Make sure both you and the founder are solving the same problem.   > “They say good fences make good neighbors, good documents keep good friendships.” > Thomas Powell   GUEST PROFILE Imagine navigating the high-stakes world of capital, strategy, and legacy with a guide who has raised billions and structured ventures worldwide. Thomas J. Powell [https://www.linkedin.com/in/thomasjpowell/], founder of The Powell Perspective™ [https://thepowellperspective.com/], is a seasoned entrepreneur, investor, and advocate for founders, bringing clarity, strategy, and resilience to leaders building at scale. WORST INVESTMENT EVER You’ve probably heard the saying, “Never mix friendship and business.” Thomas learned that lesson the hard way. His story starts with good intentions. When his kids’ grandmother battled breast cancer, cannabis was the only thing that eased her treatment side effects. So when medical marijuana became legal in a few US states, investing in the cannabis industry felt like the right thing to do. But here’s where things went wrong. A close friend brought him the deal, and because of that personal connection, Thomas skipped many of the due diligence steps he usually followed through his family office. No detailed governance clauses. No proper reporting framework. No accountability structure. It wasn’t a small investment either—about $3.6 million. As time went on, the cracks began to show. The company missed financial reports, accounting systems were weak, and when COVID hit, things only got messier. To make matters worse, taking over the business wasn’t even an option since he didn’t have a cannabis license. The emotional toll of this situation was significant, as Thomas had to face the reality of his investment failing due to trusting a friend blindly. The worst part? Having to look a friend in the eye, knowing he’d broken his own investment rules. LESSONS LEARNED * Verify alignment: Make sure both you and the founder are solving the same problem, and that you share the same exit goals. Ask questions like, “If someone offered to buy this company for $25 million today, would you sell?” If your answers don’t match, you’re not aligned. * Watch the hubris: Just because you’re smart or successful doesn’t mean you can see around every corner. Understand the legal and regulatory landscape before investing, especially in industries like cannabis, where compliance is complex. * Enforce accountability: Set clear reporting expectations from day one and include consequences for missed deadlines. Thomas admits that if his deal had stricter enforcement clauses, it would’ve saved him time, money, and frustration later on. ANDREW’S TAKEAWAYS * Many startups underpay themselves. It might sound noble, but it actually distorts valuation and creates problems later. * Make sure founders are paying themselves a market-rate salary. That way, when the business is valued or acquired, there are no nasty surprises about hidden costs. * Define roles clearly. Being a founder is different from being an employee. A salary compensates for your work; ownership rewards your risk. Mixing the two confuses things. ACTIONABLE ADVICE Align the capital and exit terms from day one—and write them down, even on a napkin. You don’t need a 30-page legal contract to start. Even a handwritten summary that defines the key terms, goals, and triggers for selling or exiting can prevent misunderstandings later. Because once the ink dries, or worse, once the money’s wired, it’s too late to wish you’d had that conversation. THOMAS’S RECOMMENDATIONS Thomas recommends these books, principles, and resources for smarter investing. * Read The Richest Man in Babylon [https://amzn.to/4oizUrb] – A timeless classic that teaches simple, lasting lessons about money management and investing in what you understand. * Invest in problems you understand. Don’t chase hype. If you know how an industry works, you’ll see both the risks and opportunities clearly. * Take advice from people with a “bigger pile.” In other words, learn from those who’ve already achieved more than you in that field. Theory is cheap—experience is priceless. * Use structured tools. Thomas’s Founders Office [https://www.founders-office.com/] provides frameworks that evaluate pitch decks for both founders and investors, helping you spot weaknesses and strengths before committing capital. NO.1 GOAL FOR THE NEXT 12 MONTHS Thomas’s goal for the next 12 months is to expand his Founders Office [https://www.founders-office.com/] cohort program, connecting entrepreneurs and investors to create better capital alignment. He’s passionate about free enterprise and founder advocacy, believing that capitalism—done right—can lift people out of poverty and fuel innovation worldwide. Whether in the US, Europe, or Sub-Saharan Africa, his mission is the same: empower founders and investors to build lasting, ethical wealth together. PARTING WORDS   > “Learn from other people’s experiences. When you see someone make a mistake, don’t repeat it because we don’t learn from the wins, we learn from the failures.” > Thomas Powell   [spp-transcript]   CONNECT WITH DR. THOMAS POWELL * LinkedIn [https://www.linkedin.com/in/thomasjpowell/] * Instagram [https://www.instagram.com/dr.thomasjpowell/] * Website [https://thepowellperspective.com/] * Master Class [https://www.6secretsraisingcapital.com/masterclass] ANDREW’S BOOKS * How to Start Building Your Wealth Investing in the Stock Market [https://amzn.to/3qrfHjX] * My Worst Investment Ever [https://amzn.to/2PDApAo] * 9 Valuation Mistakes and How to Avoid Them [https://amzn.to/3v6ip1Y] * Transform Your Business with Dr.Deming’s 14 Points [https://amzn.to/3emBO8M] ANDREW’S ONLINE PROGRAMS * Valuation Master Class [https://valuationmasterclass.com/] * The Become a Better Investor Community [https://astotz.kartra.com/page/become-a-better-investor-community] * How to Start Building Your Wealth Investing in the Stock Market [https://academy.astotz.com/courses/how-to-start-building-your-wealth-investing-in-the-stock-market] * Finance Made Ridiculously Simple [https://academy.astotz.com/courses/finance-made-ridiculously-simple] * FVMR Investing: Quantamental Investing Across the World [https://academy.astotz.com/courses/fvmr-investing-quantamental-investing-across-the-world] * Become a Great Presenter and Increase Your Influence [https://academy.astotz.com/courses/gp] * Transform Your Business with Dr. Deming’s 14 Points [https://academy.astotz.com/courses/transformyourbusiness] * Achieve Your Goals [https://academy.astotz.com/courses/achieve-your-goals] CONNECT WITH ANDREW STOTZ: * astotz.com [https://www.astotz.com/] * LinkedIn [https://www.linkedin.com/in/andrewstotz/] * Facebook [https://www.facebook.com/andrewstotzpage] * Instagram [https://www.instagram.com/andstotz/] * Threads [https://www.threads.net/@andstotz] * X [https://twitter.com/Andrew_Stotz] * YouTube [https://www.youtube.com/c/andrewstotzpage] * My Worst Investment Ever Podcast [https://itunes.apple.com/us/podcast/my-worst-investment-ever-podcast/id1416554991?mt=2]

Dan Novaes – The Treasury Strategy That Cost $100 Million

BIO: As Co-Founder & CEO of Mode Mobile, Dan Novaes is leading the transformation of how people interact with technology. His “Earn As You Go” software empowers millions of consumers to turn daily habits into passive income. STORY: Dan decided to take the bold move of turning his treasury into a long-term crypto strategy. What started as $2 million in Bitcoin and Ethereum ballooned to $30 million, but the 2022 crash and business pressures forced him to liquidate at low prices—missing out on what could have been a $100 million windfall. LEARNING: Don’t chase aggressive expansion without a clear path to profitability. Stick to your core business. Separate your business from speculative bets.   > “Everyone has a plan until they get punched in the face. Take a moment of deep thinking every week when things are going well, think about everything that could go wrong, and then reassess your position.” > Dan Novaes   GUEST PROFILE As Co-Founder & CEO of Mode Mobile [https://invest.modemobile.com/regs], Dan Novaes [https://www.linkedin.com/in/danielnovaes/] is leading the transformation of how people interact with technology. His “Earn As You Go” software empowers millions of consumers to turn daily habits into passive income. Under his leadership, Mode achieved 32,481% revenue growth from 2019 to 2022 and ranked #1 in Software on Deloitte’s Technology Fast 500 in North America. WORST INVESTMENT EVER In today’s rapidly evolving and highly interconnected business world, companies are increasingly relying on external partnerships to drive growth and innovation. Dan’s story begins in the early days of crypto. His company had raised funds through Bitcoin and Ethereum when Bitcoin was valued at just a few thousand dollars and Ethereum at only a few hundred. This early success in the crypto market was a testament to the potential for significant growth that these investments could bring. Once the business had a comfortable runway, Dan made a bold move—he turned their treasury, which is the accumulated profits and cash reserves, into a long-term crypto strategy, much like what companies like MicroStrategy would later become known for. RIDING THE WAVE At first, the decision looked genius. That $1–2 million ballooned into $30 million. Dan was on CNBC, celebrating as Bitcoin crossed $10,000, and his company seemed unstoppable. They never had to fundraise again—until the 2022 crash. THE CRASH In 2022, Bitcoin’s price fell from $63,000 to $18,000, and pressure mounted. Compounding the pain, many of Dan’s advertising partners went bankrupt, leaving unpaid bills. This was a significant blow to the company’s financial stability. To survive, Dan’s company had to liquidate almost the entire treasury at depressed prices. Had Dan managed his growth and financials more cautiously, that crypto position could have grown to $100 million or more. Instead, he walked away with far less—and a bitter lesson. LESSONS LEARNED * Growth at all costs is dangerous. Chasing aggressive expansion without a clear path to profitability can leave your company vulnerable when market conditions shift. * Profit-taking matters. Riding the wave without ever securing gains turned paper wealth into a forced liquidation. * Stick to your core business. * Discipline is everything. Not letting market euphoria dictate strategy is critical to long-term survival. ANDREW’S TAKEAWAYS * Separate your business from speculative bets. Don’t gamble with your excess cash on foreign exchange trades. Instead, hedge your risks because trading currencies isn’t your core business. * Have cash discipline for survival through decades of ups and downs. * Guard your cash, respect your core business, and don’t confuse speculative opportunities with sustainable operations. ACTIONABLE ADVICE Take time every week for deep thinking. When things are going well, take a moment to ask: What could go wrong? By slowing down and imagining worst-case scenarios, you can prepare contingency plans before you get “punched in the face” by reality. This proactive approach to risk management will keep you prepared for any eventuality. DAN’S RECOMMENDATIONS Dan recommends building the habit of scheduled deep thinking. Carve out one or two hours weekly—whether it’s through running or quiet reflection. The practice isn’t just for investing; it sharpens decision-making across life and business. NO.1 GOAL FOR THE NEXT 12 MONTHS Dan’s goal for the next 12 months is to double revenue and triple EBITDA through acquiring and growing new businesses. It’s a bold target, but one grounded in the hard lessons of the past. This time, growth will come with more balance, more discipline, and a stronger focus on sustainability. PARTING WORDS   > “Thank you for having me. Feel free to reach out.” > Dan Novaes   [spp-transcript]   CONNECT WITH DAN NOVAES * LinkedIn [https://www.linkedin.com/in/danielnovaes/] * Website [https://invest.modemobile.com/regs] ANDREW’S BOOKS * How to Start Building Your Wealth Investing in the Stock Market [https://amzn.to/3qrfHjX] * My Worst Investment Ever [https://amzn.to/2PDApAo] * 9 Valuation Mistakes and How to Avoid Them [https://amzn.to/3v6ip1Y] * Transform Your Business with Dr.Deming’s 14 Points [https://amzn.to/3emBO8M] ANDREW’S ONLINE PROGRAMS * Valuation Master Class [https://valuationmasterclass.com/] * The Become a Better Investor Community [https://astotz.kartra.com/page/become-a-better-investor-community] * How to Start Building Your Wealth Investing in the Stock Market [https://academy.astotz.com/courses/how-to-start-building-your-wealth-investing-in-the-stock-market] * Finance Made Ridiculously Simple [https://academy.astotz.com/courses/finance-made-ridiculously-simple] * FVMR Investing: Quantamental Investing Across the World [https://academy.astotz.com/courses/fvmr-investing-quantamental-investing-across-the-world] * Become a Great Presenter and Increase Your Influence [https://academy.astotz.com/courses/gp] * Transform Your Business with Dr. Deming’s 14 Points [https://academy.astotz.com/courses/transformyourbusiness] * Achieve Your Goals [https://academy.astotz.com/courses/achieve-your-goals] CONNECT WITH ANDREW STOTZ: * astotz.com [https://www.astotz.com/] * LinkedIn [https://www.linkedin.com/in/andrewstotz/] * Facebook [https://www.facebook.com/andrewstotzpage] * Instagram [https://www.instagram.com/andstotz/] * Threads [https://www.threads.net/@andstotz] * X [https://twitter.com/Andrew_Stotz] * YouTube [https://www.youtube.com/c/andrewstotzpage] * My Worst Investment Ever Podcast [https://itunes.apple.com/us/podcast/my-worst-investment-ever-podcast/id1416554991?mt=2]

Dr. Gilbert Guzman – The $1M Lesson I Learned by Not Launching My Startup

BIO: Dr. Gilbert  A. Guzmán is a business strategist and systems thinker. He is the founder of IntraQ AI, a SaaS solution designed to eliminate knowledge gaps within the workplace, and the author of Atomic Impact: Systems for Transformative Productivity. STORY: In 2012, Gilbert  envisioned a portable charger vending system for airports, universities, and theaters—a “Redbox for power.” He over-engineered, over-researched, and waited for “perfect”—while another company launched the same concept. By the time he moved, they dominated airports with a first-mover advantage. LEARNING: Jump in and get things going. Don’t be afraid to fail. Iterate, and get your product to market.   > “Don’t be afraid to iterate. Maintain the course, and you’ll see your product through.” > Dr. Gilbert A. Guzmán   GUEST PROFILE Dr. Gilbert A. Guzmán [https://www.linkedin.com/in/gilguz/] is a business strategist and systems thinker. He is the founder of IntraQ AI [https://www.intraqai.com/landing], a SaaS solution designed to eliminate knowledge gaps within the workplace, and the author of Atomic Impact: Systems for Transformative Productivity [https://payhip.com/b/0OAhP], which you can get for free using the code: Stotz. With a doctorate in business and experience leading large teams, he helps organizations boost productivity through practical systems built for real-world constraints. His work bridges people, data, and technology for lasting operational success. WORST INVESTMENT EVER In 2012, Gilbert  envisioned a portable charger vending system for airports, universities, and theaters—a “Redbox for power.” Users would rent charged batteries and return them to kiosks for reuse. Ironically, Gilbert is a very impatient man, but when it comes to business ideas, he takes his sweet time, sometimes too long. This is exactly what happened with the portable charger idea. Gilbert over-engineered, over-researched, and waited for “perfect”—while Fuel Rod launched the same concept. By the time he moved, they dominated airports with a first-mover advantage. He invented the wheel but didn’t roll it. LESSONS LEARNED * Jump in, do what you need to do, stay up late, work hard, do the research, and get things going. Ultimately, everything will come to fruition. * Manage your risks. * You can earn back cash, but you can’t earn back lost time. * In startups, a bad launch always beats no launch. Waiting for no flaws means 100% flaw: no product. * You can’t be a risk-averse leader. ANDREW’S TAKEAWAYS * MVPs beat masterpieces because if you’re not embarrassed by the first version of your product, you launched too late. * The market doesn’t care who invented a product—it cares who shipped it. ACTIONABLE ADVICE * Don’t be afraid to fail. Iterate, get your product to market, and find out if it makes sense and is relevant. * Don’t get scared of the big names, the Googles of the world, and think that they will crush you. * You don’t have to be horizontal. You can go vertical. You can find a niche and dedicate your time to it. GILBERT’S RECOMMENDATIONS Gilbert recommends his e-book Atomic Impact: Systems for Transformative Productivity [https://payhip.com/b/0OAhP] (remember to use code Stotz for a free copy). He also recommends visiting his website [https://atomicimpactbook.com/] for additional resources. Additionally, reading Edwards Deming’s Out of the Crisis [https://amzn.to/4mFqNiH] can help you apply systems thinking to your personal and work life, ultimately changing the way you view life, society, and work, and becoming a little more solution-oriented. NO.1 GOAL FOR THE NEXT 12 MONTHS Gilbert’s goal for the next 12 months is to further enhance the success of Atomic Impact [https://payhip.com/b/0OAhP] and IntraQ AI [https://www.intraqai.com/landing] by creating speaking engagements and workshops that will reinvigorate the concepts he has developed and transform the way people work. PARTING WORDS   > “I appreciate you having me on, Andrew. It’s been a pleasure. I look forward to the future. Go split some atoms.” > Gilbert   [spp-transcript]   CONNECT WITH DR. GILBERT GUZMAN * LinkedIn [https://www.linkedin.com/in/gilguz/] * Podcast [https://open.spotify.com/show/1ZwLNaGimfgjxLEHc3EQlH?si=d7808ad5b5cc447e] * YouTube [https://www.youtube.com/@Dr.Guzman] * Blog [https://atomicimpactbook.com/]  * Website [https://www.compoundingquality.net/] * Books [https://atomicimpactbook.com/] ANDREW’S BOOKS * How to Start Building Your Wealth Investing in the Stock Market [https://amzn.to/3qrfHjX] * My Worst Investment Ever [https://amzn.to/2PDApAo] * 9 Valuation Mistakes and How to Avoid Them [https://amzn.to/3v6ip1Y] * Transform Your Business with Dr.Deming’s 14 Points [https://amzn.to/3emBO8M] ANDREW’S ONLINE PROGRAMS * Valuation Master Class [https://valuationmasterclass.com/] * The Become a Better Investor Community [https://astotz.kartra.com/page/become-a-better-investor-community] * How to Start Building Your Wealth Investing in the Stock Market [https://academy.astotz.com/courses/how-to-start-building-your-wealth-investing-in-the-stock-market] * Finance Made Ridiculously Simple [https://academy.astotz.com/courses/finance-made-ridiculously-simple] * FVMR Investing: Quantamental Investing Across the World [https://academy.astotz.com/courses/fvmr-investing-quantamental-investing-across-the-world] * Become a Great Presenter and Increase Your Influence [https://academy.astotz.com/courses/gp] * Transform Your Business with Dr. Deming’s 14 Points [https://academy.astotz.com/courses/transformyourbusiness] * Achieve Your Goals [https://academy.astotz.com/courses/achieve-your-goals] CONNECT WITH ANDREW STOTZ: * astotz.com [https://www.astotz.com/] * LinkedIn [https://www.linkedin.com/in/andrewstotz/] * Facebook [https://www.facebook.com/andrewstotzpage] * Instagram [https://www.instagram.com/andstotz/] * Threads [https://www.threads.net/@andstotz] * X [https://twitter.com/Andrew_Stotz] * YouTube [https://www.youtube.com/c/andrewstotzpage] * My Worst Investment Ever Podcast [https://itunes.apple.com/us/podcast/my-worst-investment-ever-podcast/id1416554991?mt=2]

Enrich Your Future Conclusion: Larry’s Timeless Guide to Smarter Investing

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing [https://amzn.to/4ebG33x]. In this series, they conclude the lessons from the book. LEARNING: Investing isn’t about chasing the next hot stock—it’s about building a resilient, well-diversified portfolio you can live with in good times and bad.   > “Once you have enough, stop playing the game as if you don’t. Reduce risk, enjoy life, and make your money serve you—not the other way around.” > Larry Swedroe   In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing [https://amzn.to/4ebG33x]. The book is a collection of stories that Larry has developed over 30 years as the head of financial and economic research at Buckingham Wealth Partners [https://buckinghamwealthpartners.com/] to help investors. You can learn more about Larry’s Worst Investment Ever story on Ep645: Beware of Idiosyncratic Risks [https://myworstinvestmentever.com/ep645-larry-swedroe-beware-of-idiosyncratic-risks/]. Larry deeply understands the world of academic research and investing, especially risk. In this series, they conclude on the lessons from the book. ENRICH YOUR FUTURE: LARRY’S TIMELESS GUIDE TO SMARTER INVESTING If you’ve ever wondered how to cut through the noise of investment hype and build a portfolio that actually works for you, Larry’s Enrich Your Future is the blueprint you’ve been looking for. Here’s a distilled look at the wisdom from his book. START WITH CORE PRINCIPLES Larry insists there are only a handful of fundamental truths in investing—and if you master them, you’ll avoid most costly mistakes: * Markets are highly efficient – While not perfect, markets price assets so effectively that consistently beating them on a risk-adjusted basis is near impossible. So don’t engage in individual security selection or market timing. * All risk assets offer similar risk-adjusted returns – Whether it’s US stocks, Thai stocks, or corporate bonds, the relationship between risk and return holds steady over time. Invest in assets based upon your ability, willingness, and need to take risks. If you’re willing to take more risk and have the ability and maybe the need to, then you can load up on more risky, higher expected-returning assets. It doesn’t mean they’re better assets; rather, they have higher expected returns at the cost of higher risk. * Diversification is non-negotiable – Since all risk assets have similar risk-adjusted returns, it makes no sense to concentrate all of your risk in one basket. Concentrating your risk in a single asset class or geography is a recipe for trouble. BUILD A PORTFOLIO THAT FITS YOU Forget cookie-cutter solutions—Larry believes the “right” portfolio depends on three factors: 1. Ability to take risk – Your financial capacity to weather market downturns is influenced by factors like investment horizon and job stability. 2. Willingness to take risk – Your psychological comfort level with market volatility. 3. Need to take risk – Whether you require high returns to meet your financial goals. Larry’s rule? Let the lowest of these three determine your equity exposure. If you don’t need to take big risks, don’t. THINK GLOBAL, BUT STAY RATIONAL A total global market portfolio is an ideal starting point—currently about 65% US, 27% developed international, and 8% emerging markets. Adjust only slightly if you have a reasoned view, but avoid drastic tilts that imply you “know better” than the market. BEYOND STOCKS AND BONDS Larry is a big believer in alternative investments—if you can access them at reasonable costs. These include: * Private credit – Lending directly to companies, often with double-digit returns and lower volatility than equities. * Reinsurance – Returns tied to natural disaster risks, uncorrelated with stock markets. * Infrastructure funds – Assets like toll roads, dams, and utilities with stable cash flows. His own portfolio now includes a significant allocation to alternatives, reducing reliance on traditional stocks and bonds. FOCUS ON RISK SOURCES, NOT JUST LABELS Instead of obsessing over “asset classes,” Larry advises analysing the risks each investment brings—economic cycle risk, credit risk, inflation risk—and blending assets with low correlations to one another. INTEGRATE FACTORS, DON’T ISOLATE THEM While factor investing (such as value, small-cap, quality, and momentum) is powerful, buying single-factor funds separately can create costly and contradictory trades. Larry favours integrated factor funds that combine multiple factors into one systematic strategy, reducing costs and improving efficiency. MASTER YOUR BEHAVIOUR Even the best portfolio fails if you can’t stick with it. Larry warns that there is no one right portfolio. The right portfolio for you is the one you are most likely to stick with. That means: * Avoid assets you can’t hold for at least 10–15 years. * Expect long stretches of underperformance from every risk asset. * Continue to buy during downturns to maintain your target allocation. DON’T DIY UNLESS YOU’RE TRULY QUALIFIED Less than 1% of investors have the skill, time, and emotional discipline to manage their investments entirely on their own. Larry recommends working with a true fiduciary adviser—one who: * Is paid only by you (no commissions). * Invests in the same funds they recommend. * Backs every decision with empirical evidence. EDUCATION BEATS IGNORANCE EVERY TIME You don’t need to read all 18 of Larry’s books, but three or four will give you the foundational knowledge to make better decisions. Investing ignorance, he warns, is far costlier than the price of a good book. THE TAKEAWAY Enrich Your Future: The Keys to Successful Investing [https://amzn.to/4ebG33x] isn’t about chasing the next hot stock—it’s about building a resilient, well-diversified portfolio you can live with in good times and bad. Follow Larry’s principles, and you’ll not only protect your wealth but also position yourself for long-term financial peace of mind. As Larry himself says: > “Once you have enough, stop playing the game as if you don’t. Reduce risk, enjoy life, and make your money serve you—not the other way around.” DID YOU MISS OUT ON THE PREVIOUS CHAPTERS? CHECK THEM OUT: PART I: HOW MARKETS WORK: HOW SECURITY PRICES ARE DETERMINED AND WHY IT’S SO DIFFICULT TO OUTPERFORM * Enrich Your Future 01: The Determinants of the Risk and Return of Stocks and Bonds [https://myworstinvestmentever.com/enrich-your-future-01-the-determinants-of-the-risk-and-return-of-stocks-and-bonds/] * Enrich Your Future 02: How Markets Set Prices [https://myworstinvestmentever.com/enrich-your-future-02-how-markets-set-prices/] * Enrich Your Future 03: Persistence of Performance: Athletes Versus Investment Managers [https://myworstinvestmentever.com/enrich-your-future-03-persistence-of-performance-athletes-versus-investment-managers/] * Enrich Your Future 04: Why Is Persistent Outperformance So Hard to Find? [https://myworstinvestmentever.com/enrich-your-future-04-why-is-persistent-outperformance-so-hard-to-find/] * Enrich Your Future 05: Great Companies Do Not Make High-Return Investments [https://myworstinvestmentever.com/enrich-your-future-05-great-companies-do-not-make-high-return-investments/] * Enrich Your Future 06: Market Efficiency and the Case of Pete Rose [https://myworstinvestmentever.com/enrich-your-future-06-market-efficiency-and-the-case-of-pete-rose/] * Enrich Your Future 07: The Value of Security Analysis [https://myworstinvestmentever.com/enrich-your-future-07-the-value-of-security-analysis/] * Enrich Your Future 08: High Economic Growth Doesn’t Always Mean High Stock Market Return [https://myworstinvestmentever.com/enrich-your-future-08-high-economic-growth-doesnt-always-mean-high-stock-market-return/] * Enrich Your Future 09: The Fed Model and the Money Illusion [https://myworstinvestmentever.com/enrich-your-future-09-the-fed-model-and-the-money-illusion/] PART II: STRATEGIC PORTFOLIO DECISIONS * Enrich Your Future 10: You Won’t Beat the Market Even the Best Funds Don’t [https://myworstinvestmentever.com/enrich-your-future-10-you-wont-beat-the-market-even-the-best-funds-dont/] * Enrich Your Future 11: Long-Term Outperformance Is Not Always Evidence of Skill [https://myworstinvestmentever.com/enrich-your-future-11-long-term-outperformance-is-not-always-evidence-of-skill/] * Enrich Your Future 12: When Confronted With a Loser’s Game Do Not Play [https://myworstinvestmentever.com/enrich-your-future-12-when-confronted-with-a-losers-game-do-not-play/] * Enrich Your Future 13: Past Performance Is Not a Predictor of Future Performance [https://myworstinvestmentever.com/enrich-your-future-13-past-performance-is-not-a-predictor-of-future-performance/] * Enrich Your Future 14: Stocks Are Risky No Matter How Long the Horizon [https://myworstinvestmentever.com/enrich-your-future-14-stocks-are-risky-no-matter-how-long-the-horizon/] * Enrich Your Future 15: Individual Stocks Are Riskier Than You Believe [https://myworstinvestmentever.com/enrich-your-future-15-individual-stocks-are-riskier-than-you-believe/] * Enrich Your Future 16: The Estimated Return Is Not Inevitable [https://myworstinvestmentever.com/enrich-your-future-16-the-estimated-return-is-not-inevitable/] * Enrich Your Future 17: Take a Portfolio Approach to Your Investments [https://myworstinvestmentever.com/enrich-your-future-17-take-a-portfolio-approach-to-your-investments/] * Enrich Your Future 18: Build a Portfolio That Can Withstand the Black Swans [https://myworstinvestmentever.com/enrich-your-future-18-build-a-portfolio-that-can-withstand-the-black-swans/] * Enrich Your Future 19: The Gold Illusion: Why Investing in Gold May Not Be Safe [https://myworstinvestmentever.com/enrich-your-future-19-the-gold-illusion-why-investing-in-gold-may-not-be-safe/] * Enrich Your Future 20: Passive Investing Is the Key to Prudent Wealth Management [https://myworstinvestmentever.com/enrich-your-future-20-passive-investing-is-the-key-to-prudent-wealth-management/] PART III: BEHAVIORAL FINANCE: WE HAVE MET THE ENEMY AND HE IS US * Enrich Your Future 21: Think You Can Beat the Market? Think Again [https://myworstinvestmentever.com/enrich-your-future-21-think-you-can-beat-the-market-think-again/] * Enrich Your Future 22: Some Risks Are Not Worth Taking [https://myworstinvestmentever.com/enrich-your-future-22-some-risks-are-not-worth-taking/] * Enrich Your Future 23: Seeing Through the Frame: Making Better Investment Decisions [https://myworstinvestmentever.com/enrich-your-future-23-seeing-through-the-frame-making-better-investment-decisions/] * Enrich Your Future 24: Why Smart People Do Dumb Things [https://myworstinvestmentever.com/enrich-your-future-24-why-smart-people-do-dumb-things/] * Enrich Your Future 25: Stock Crashes Happen—Be Prepared [https://myworstinvestmentever.com/enrich-your-future-25-stock-crashes-happen-be-prepared/] * Enrich Your Future 26: Should You Invest Now or Spread It Out? [https://myworstinvestmentever.com/enrich-your-future-26-should-you-invest-now-or-spread-it-out/] * Enrich Your Future 27: Pascal’s Wager: Betting on Consequences Over Probabilities [https://myworstinvestmentever.com/enrich-your-future-27-pascals-wager-betting-on-consequences-over-probabilities/] * Enrich Your Future 28 & 29: How to Outsmart Your Investing Biases [https://myworstinvestmentever.com/enrich-your-future-28-29-how-to-outsmart-your-investing-biases/] * Enrich Your Future 30: The Hidden Cost of Chasing Dividend Stocks [https://myworstinvestmentever.com/enrich-your-future-30-the-hidden-cost-of-chasing-dividend-stocks/] * Enrich Your Future 31: Risk vs. Uncertainty: The Investor’s Blind Spot [https://myworstinvestmentever.com/enrich-your-future-31-risk-vs-uncertainty-the-investors-blind-spot/] Part IV: Playing the Winner’s Game in Life and Investing * Enrich Your Future 32: Trying to Beat the Market Is a Fool’s Errand [https://myworstinvestmentever.com/enrich-your-future-32-trying-to-beat-the-market-is-a-fools-errand/] * Enrich Your Future 33: The Market Doesn’t Care How Smart You Are [https://myworstinvestmentever.com/enrich-your-future-33-the-market-doesnt-care-how-smart-you-are/] * Enrich Your Future 34: Embrace the Bear: Why Market Crashes Are Your Silent Ally [https://myworstinvestmentever.com/enrich-your-future-34-embrace-the-bear-why-market-crashes-are-your-silent-ally/] * Enrich Your Future 35: Market Gurus Are Just Expensive Entertainers [https://myworstinvestmentever.com/enrich-your-future-35-market-gurus-are-just-expensive-entertainers/] * Enrich Your Future 36: The Madness of Crowded Trades [https://myworstinvestmentever.com/enrich-your-future-36-the-madness-of-crowded-trades/] * Enrich Your Future 37 & 38: The Calendar Is a Crook & Hot Funds Are a Trap [https://myworstinvestmentever.com/enrich-your-future-37-38-the-calendar-is-a-crook-hot-funds-are-a-trap/] * Enrich Your Future 39: More Wealth Does Not Give You More Happiness [https://myworstinvestmentever.com/enrich-your-future-39-more-wealth-does-not-give-you-more-happiness/] * Enrich Your Future 40: Why Passive Investing Gives You Back What Wall Street Steals [https://myworstinvestmentever.com/enrich-your-future-40-why-passive-investing-gives-you-back-what-wall-street-steals/] * Enrich Your Future 41 & 42: DIY Investing or Hire an Advisor? How to Avoid the Costliest Mistakes [https://myworstinvestmentever.com/enrich-your-future-41-42-diy-investing-or-hire-an-advisor-how-to-avoid-the-costliest-mistakes/] ABOUT LARRY SWEDROE Larry Swedroe [https://www.linkedin.com/in/larry-swedroe-18778267/] was head of financial and economic research at Buckingham Wealth Partners [https://buckinghamwealthpartners.com/]. Since joining the firm in 1996, Larry has spent his time, talent, and energy educating investors on the benefits of evidence-based investing with an enthusiasm few can match. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need [https://amzn.to/3HC9QnZ].” He has authored or co-authored 18 books. Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television on various outlets. Larry is a prolific writer, regularly contributing to multiple outlets, including AlphaArchitect [https://alphaarchitect.com/blog/], Advisor Perspectives [https://www.advisorperspectives.com/search?q=Larry+Swedroe], and Wealth Management [https://www.wealthmanagement.com/search/node/Larry%20Swedroe].   [spp-transcript]   CONNECT WITH LARRY SWEDROE * LinkedIn [https://www.linkedin.com/in/larry-swedroe-18778267/] * X [https://twitter.com/larryswedroe] * Website [https://buckinghamwealthpartners.com/] * Books [https://amzn.to/3JfpUgx] ANDREW’S BOOKS * How to Start Building Your Wealth Investing in the Stock Market [https://amzn.to/3qrfHjX] * My Worst Investment Ever [https://amzn.to/2PDApAo] * 9 Valuation Mistakes and How to Avoid Them [https://amzn.to/3v6ip1Y] * Transform Your Business with Dr.Deming’s 14 Points [https://amzn.to/3emBO8M] ANDREW’S ONLINE PROGRAMS * Valuation Master... [https://valuationmasterclass.com/]