When I was a serious cyclist back in college (seriously), I used to hear the following…’there are just TWO types of cyclists, those that have crashed and those that have not!’
While golfing at Pebble Beach last week, my caddie pointed out that Mr. Charles Schwab’s home was in foreclosure.
How is that possible?
Maybe just local folklore, but throughout the rest of the country thousands of people are just walking away from their homes. Back in November of 2006, we sent Lindsay out in the streets of New York looking for a Thanksgiving stock tip. What she got was a few lame stock ideas (Pfizer, Time Warner and a classic at the end of the show from some old dude) and a shitload of BUY REAL ESTATE!
In my post accompanying the show , I knew two things:
1. Stocks had further to run, and;
2. Avoid real estate
I have been an entrepreneur and angel investor since my teens and have had to walk away many times.
As ‘Social Leverage’ increases, the economy worsens and bandwith and laptops get cheaper, start-ups and angel investing will continue to explode. With the continued explosion will come huge increases in ‘walking away’. If you don’t believe me, read Fred’s post on the subject .
The best baseball hitter of all-time hit .400, so if you want to invest your hard earned capital or worse yet invest for others for a LIVING…you will have to walk away from something, eventually!