Mistakes can be Costly but sometimes you need to take a Blind Leap of Faith
Posted by siteadmin on Wednesday 30th March 2016.
We’ve all done it. It may have been spending too much on something that turned out to be over priced rubbish. Or, letting a screaming bargain pass us by only to be snapped up by someone else.
But the following examples of mistakes involving money might make you feel a little better about taking the wrong course of action (unless of course you were somehow involved).
Back in 1961 a Dick Rowe of Decca Records turned down the chance to sign a band from Liverpool called The Beatles. His rationale was that ‘guitar groups are going out of fashion.’ The rest as they say is history and in this case, it probably cost Decca Records hundreds of millions of pounds.
Do you remember those trips to hire the latest video films? In that case no doubt you’ll have heard of the video hire giant Blockbusters. They were a truly global business. Well back in 2000, the founder of a little DVD company called Netflix, which posted films out to its members approached the bosses of Blockbusters to see if they wanted to buy the company for $50 million.
Sounds an enormous amount of money doesn't it? But when you consider Blockbusters went bust in 2009 and Netflix, with its focus on online streaming is now worth $19.7 billion (Yep billion!) it was a bargain they missed out on and the decision led to their overall demise.
Last but not least, spare a thought (and possibly some change) for Ronald Wayne. Ronald was given 10 per cent of the shares in a start up tech business in the early 1970s. The company was called Apple. Yes that Apple. He sold his shares quickly for $800. But if he had kept hold of them, they would be now worth a tidy sum. He’s now living out his days in a trailer park in Nevada.
There’s one thing that all of the people and companies mentioned above have in common. They made a decision.
Obviously with the benefit of hindsight it was very much the wrong decision. But for me the worst decision someone can make about their financial future is to make NO decision.
Being indecisive and sitting on the fence can be painful. For one, you could get splinters which if left, could become infected. Secondly by taking no action you could be creating a BIG problem for your future later on in life.
I meet many people who have been putting off planning for their financial future. They may feel it’s too complicated (it isn't), that they lack expertise (that’s what I’m here for) or they've left it too late (even at 100 they probably haven’t).
Making a decision to take control of your financial future through planning is one of the best you’ll ever make. If you are hesitant, simply take the first step of arranging an initial exploratory meeting. That informal chat will be a blind leap of faith but what's for sure is that you'll definitely learn more.
I’m excited about this weekend. Rob Austin with whom I have peripheral partnership via his RAR Handy Motorsport Team is taking to the track in the first meeting of the new season of the British Touring Car Championship (BTCC) at Brands Hatch.
I was at the official Test at Donington Park last week where Rob was firmly on the pace. He was one of the fastest on track with consistent lap times throughout the four hour test.
So if you fancy coming along to get a feel for the sport as my guest this coming Friday Afternoon (1st April) for the Pre-race Hospitality where you'll meet the Team, Rob himself and have a grand tour of the working Pits, just drop me a line by reply and I'll send you the arrival details.
You'll also get to see why I see such synergies with financial planning.