What Facebook and smart investors have in common
- Successful tech start-ups and successful investors have three things in common: they’re very good at Prediction, Preparation and Pivoting.
- You can’t predict when life will throw you financial curve balls, but you can get yourself into excellent position to handle them when they occur.
- With the three Ps in place, even job loss, death in the family or health setbacks won’t prevent you from achieving your long-term financial goals.
*** Take advantage of our free financial Second Opinion Service for friends, family and associates of our valued clients.
Remember Facemash? Probably not, but that was the precursor to Facebook, which Mark Zuckerberg founded from his Harvard dorm room. Facemash was a place to vote on whether or not a student in a photo was “hot.” Soon Facemash morphed into Facebook, a social media platform just for Harvard students. That’s where Zuckerberg thought things would go, but Facebook became so popular so quickly that it spread to hundreds of other universities. Then it became so popular on campuses that it eventually spread to the world. You know the rest of the story.
Several important things took place here. First was Zuckerberg’s prediction about the appeal of social media within the Harvard world. Then there were several pivots that Mark and his team made as Facebook evolved and grew exponentially. Mastering prediction, preparation and pivoting was essential to Facebook’s success, and the three Ps can also work for us.
For instance, you might ask me to predict what’s going to happen in the stock market. Well, I can’t do that, but I can tell you definitively that it’s going to go up and it’s going to go down in the near future. And you need to be prepared for both of those eventualities. You need to be ready to pivot when the right opportunities arise.
How the three Ps work for real people
Now we look at transitions in our lives—job loss, retirement, a birth or death in the family, a health situation. We know they’re eventually going to occur, but it’s hard to pinpoint exactly when. These events are givens rather than predictions. But there’s a lot of preparation that goes into anticipating these life events even though a lot of folks don’t like to prepare for the future. But you have to. Life throws you lots of curve balls, and all of a sudden something that we didn’t think was on our radar screen comes up and catches us off guard. When we’re not prepared, we make bad decisions and go through tough transitions that can take years to recover from.
But you can prepare for these eventualities by sitting down, taking a look at your financial situation and assessing how well you can handle different kinds of transitions that are likely to occur. These are predictions and givens many times. When they occur, you should be able to pivot to the strategies that enable you and your family to move forward.
If you feel you’re not ready for what the future has in store, we offer a Second Opinion Service. It is a complimentary, no obligation assessment of how well we think you are currently prepared for life’s financial eventualities. We urge you or your family/friends to take advantage of this service.
Until next time, enjoy. Gary
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