{"id":2605,"date":"2022-05-19T10:13:35","date_gmt":"2022-05-19T10:13:35","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/my-worst-investment-loss-exposed\/"},"modified":"2022-05-19T10:13:35","modified_gmt":"2022-05-19T10:13:35","slug":"my-worst-investment-loss-exposed","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/my-worst-investment-loss-exposed\/","title":{"rendered":"My Worst Investment Loss Exposed!"},"content":{"rendered":"

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\n\n\"key<\/picture><\/span><\/p>\n

Key takeaways<\/p>\n

Losing investments can be great teachers.<\/p>\n

Nobody starts out as a great investor. Property investing is a learned skill.<\/p>\n

Every investor makes mistakes – Losses are a natural and normal result of making investment decisions<\/p>\n

Sometimes your best investments are the ones you don\u2019t make.<\/p>\n

Don\u2019t invest in anything you don\u2019t fully understand.<\/p>\n<\/div>\n<\/div>\n

One of my early investments was a complete loss.<\/strong><\/p>\n

I know that doesn\u2019t make for ego pleasing conversation from someone who\u2019s meant to be an investment expert, but it\u2019s the truth.<\/p>\n

However, I\u2019m keen to tell you the story of how I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made which created this disastrous result.<\/p>\n

But first I want to explain the 2 main reasons why I\u2019m sharing this story.<\/p>\n

1. Losing investments can be great teachers<\/span><\/h2>\n

Sure you could learn from the investment mistakes you make, but why not learn from other people\u2019s investment errors so that you don\u2019t have to make the same mistakes yourself.<\/p>\n

\"LearnMost investors pay the market a huge learning fee in the way of mistakes.<\/p>\n

Studies show that around 50% of investors who buy an investment property<\/a> sell up in the first 5 years.<\/p>\n

Clearly, they\u2019ve done something wrong.<\/p>\n

And most investors who stay in the game don\u2019t make it past their first or second property, so clearly they\u2019re not doing things right.\n<\/p>\n

So why not learn how to avoid their common mistakes?<\/p>\n

2. Losses are a natural and normal result of making investment decisions<\/span><\/h2>\n

Don\u2019t be so hard on yourself when things don\u2019t go as planned because the key to long term success is what you do when this occurs and the lessons you learn from your mistakes, so you don\u2019t repeat them.<\/p>\n

The problem is, that many investors just seem to keep repeating the same bad investment behaviours.<\/p>\n

So here is the story of my big investment mistake where I lost 100% of my investment capital<\/span><\/h2>\n

Go ahead and laugh at my foolishness.<\/p>\n

Yes\u2026I should have known better.<\/p>\n

You see\u2026I already owned a few investment properties at the time, but I was in a hurry to get rich quick.<\/em><\/p>\n

Interestingly this story is good evidence that I wasn\u2019t born a great investor.<\/p>\n

Investing is a learned skill, and I hope the lessons contained in this story will help you avoid the mistakes I made.<\/p>\n

You see\u2026I was offered the opportunity to invest in a Gold Mine.<\/p>\n

In fact, one of my friends, Brian, had invested the vast sum of $5,000 (remember it was the 1970s and that was a lot of money<\/em><\/strong>) into a venture that was resurrecting an old disused gold mine in Wedderburn, near Ballarat in Victoria.<\/p>\n

Of course, my initial reaction was to tell him how silly he was. How he\u2019d lose his money.<\/p>\n

But Brian asked me to speak with the promoter, explaining that he tells a compelling story.<\/p>\n

So I did.<\/p>\n

I still remember it well\u2026I can picture it in my mind\u2019s eye.<\/p>\n

\"GoldOne Sunday morning a man called Terry came to our home and described how with the price of gold rising and using new technology it was now viable to reopen an old disused gold mine near Ballarat where the Gold Rush occurred in the 1800s.<\/p>\n

He had budgets and profit projections, diagrams and plans; but things changed completely when he took a shiny nugget of gold out of his pocket and placed it in my hand.<\/p>\n

I\u2019d never really seen gold before.<\/p>\n

I\u2019d never held a nugget of gold in my hand.<\/p>\n

He told a compelling story of how I could double my money quickly investing in his company \u2013 The Asian Pacific Mining Corporation (what an impressive name!) \u2013 and how I\u2019d receive dividends for years.<\/p>\n

My greed glands began working overtime as I swallowed his story \u2013 hook, line, and sinker.<\/p>\n

The end result was I invested $5,000 of my money and of course, I lost it all.<\/p>\n

Just to put things into perspective, in those days a family car (the Holden Kingswood) cost around $2,000, so $5,000 was a lot of money.<\/p>\n

What happened was that my money and that of all the other investors was squandered by Terry\u2019s into frivolous start-up costs meaning there was none left to invest in the mine.<\/p>\n

My investment decision was one big mistake from the beginning.<\/p>\n

Here are a few of the more obvious mistakes I made with this investment:<\/span><\/h2>\n