My favorite programs are TV shows, particularly those in which people buy items for a low price, renovate them, and then resell them for a profit.
Flipping is always a great way to make money; this is what we see on TV, but no one tells you that you can buy something cheap and never make a profit from it, and worse, you will incur additional losses.
However, why do people continue to flip even when they know they risk losing if they make the wrong choice? It is simple: you cannot make a profit unless you take risks.
I saw a show where a guy buys a vintage car for a very low price; despite the fact that the car is in "not so bad" condition, he was surprised he got it for so little.
Then he took the car to his mechanics, who discovered several major issues with it. The guy who bought the car is a successful car flipper; he had already built an empire with that business, and to be honest, I am sure he had run into problems like this in the past.
His mechanic always blamed him for taking uncalculated risks without informing them, and they were always left to clean up his mess.
So, once again, his mechanics came to his rescue, and with a stroke of genius, they created some incredible repairs and rebuilt the vintage car.
The guy was pleased, and when they sold the car, they received the same amount of money as they had spent to purchase it initially.
On the surface, it may appear that the guy is only a figurehead in the business, with his mechanics actually solving the problems, but this is not the case.
We Need People To Win
We frequently forget how difficult it is to make financial decisions.
The one who is tasked with making money decisions in an organization is the most important person in the business.
It is more difficult to be the one giving instructions; leading is difficult because of the consequences of doing so incorrectly or making mistakes.
For example, this guy goes out, scans the cars, estimates the prices, bargains the prices, and decides whether or not to buy them, and the only thing his mechanic does is make sure they repair the cars; if they incur expenses, it is not their fault; if there are losses from fixing the cars and unexpected expenses, the guy must cover them.
But guess what this man who buys vintage cars does correctly?
He had the best mechanic in the game, who was a wizard with a screwdriver.
Rewards Blinds US To Risk
In life, we are always drawn to potential profit over risk, and when we lack the necessary checks and balances, we are doomed to fail. Some days ago, I made a post about a guy who lost $3.7 million in forex.
I believe what he lacked was the right management team, people capable of countering his outrageous investment decision and possessing the technical know-how to save him from any potential mess he might get himself into.
The guy who lost the money did not appear to have such a person or persons. This guy who buys these vintage cars has brilliant people who can handle the dirty work for him.
He is a wise man in his decisions, but he occasionally makes mistakes and is saved by the brilliant people he surrounds himself with, which means that the company continues to grow and profit handsomely from their flipping business.
Crypto
In crypto, for example, some people make insane decisions, and even when there are many blind spots they can not cover, they continue to make audacious decisions with no options for a soft landing.
While listening to random crypto people online is not always a good idea, there are some who appear to have more knowledge and experience.
Over the years on Hive, I have met people who are knowledgeable about the market, and simply following these people can help you learn a lot.
Profit Over Anything
Sometimes all we think about is profit, and we overlook the work that is required, the experience, the technical areas, and the unexpected circumstances.
It is difficult to profitably trade commodities and assets and win all the time
They can be a gamble at times, but they are not always. What we consider potential or rare gems may simply be painted metals with no real value, and vice versa.
We can easily get carried away with new discoveries and attempting to expand, and if we do not have the right people, we can easily make costly mistakes and face unexpected consequences.
It simply means that I believe people should not make decisions that, if not done correctly, can result in irreversible consequences no matter the certainty.
Having people, smart people, can save us a lot of bluff, which is why half of successful people's accomplishments are dependent on those whispering in their ears. How many such people do you currently have?
Interested in some more of my works
Is it Easy To Make Money?
Nigeria: A Unique Business Market & Industry
Virtual Bank Apps In Nigeria: An Experience Of Gamification
How To Find The Next "BIG" Meme Coin
Personal Finance: Achieving Intentional "Saving" Goals
Playing The Survival Game: Human Nature In Introspection
"Un-PAYING" The Debt You Owe
Interested in some more of my works
Is it Easy To Make Money?
Nigeria: A Unique Business Market & Industry
Virtual Bank Apps In Nigeria: An Experience Of Gamification
How To Find The Next "BIG" Meme Coin
Personal Finance: Achieving Intentional "Saving" Goals
Playing The Survival Game: Human Nature In Introspection
"Un-PAYING" The Debt You Owe
Posted Using INLEO
People tend to underestimate the effort that goes into things. There are a lot of things that successful people know that we don't and it takes time to build up that experience or knowledge to do so. There is always going to be some risk out there but that can be reduced slightly with the right knowledge.
You're right. There's always going to be risks one way or another and the right knowledge greatly reduces any potential consequences
Probably none at this point in time. Only have few people on the digital space that I listen to and make decisions based on their insights. Of course, it's not entirely based on the their insights, but it's a contributing factor. I think with taking risks, especially financially, it's a good rule of thumb to risk only what we can afford to lose. Better to keep going at a slower pace than run fast and crash and not have a way to get back up again.
Indeed. Well, when it comes to running fast and crashing, I guess that's how some people are. They want to go fast and hard without basically applying any form of breaks and that's how they actually crash so hard.
Sometimes, the experience may be worth it. As we build everything better and from scratch without crashing this time around. However, some never learn, and keep doing it in different shapes or forms.
I wouldn't want to have such an experience. Although I have lost a lot in my life, including losing relatives and family to death, I know that this is something beyond my control. It would hurt to lose things based on my foolishness, even when there were red flags
Too hard!
@tipu curate
Upvoted 👌 (Mana: 31/61) Liquid rewards.
Yeah, thanks a million
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Weren't we told in media about "overnight successes", because that sold, people loved to hear about that? It took some of those "overnight successes" to step up and tell the truth, that there isn't any such thing as overnight success, and a lot of work, time, and strategy goes into it.
I loved your example. The vintage car flipper took all the risks but also knew how to estimate the potential of a deal, even if he screwed up sometimes. The mechanic may have been great, but he took no risks, only did a job. Great at what he did, apparently, but decision and strategy lied at his boss.