A few weeks ago, I was listening to The Steve Harvey Radio Show. He told a story about something that happened to him many years before he became rich and famous.
At one point, when he was an up-and-coming comedian getting paid here and there, he succeeded in saving about $33,000. He entrusted his business manager to manage this money.
One day, he went to the bank to withdraw some funds. To his surprise, his account was at zero.
When he arrived at his business manager’s office to find out what was going on with the account, all of the furniture was gone – and so was his business manager. Steve never heard from him again.
Losing his life savings at that time was devastating.
Fast-forward 30 years. Now ask yourself: how stupid was that business manager?
You see, today Steve Harvey earns tens of millions per year. As his business manager, you get 10%. That’s one million a year.
So in essence, Steve’s former business manager sacrificed $1,000,000 a year for $33,000. Why? Because he failed to think long-term.
See, investing in Steve Harvey 30 years ago would have been like investing in a young, exciting company with great potential. Taking the $33,000 and running is akin to buying shares of this young, exciting company at $7 and then selling at $14…only to watch it go to $325, like Netflix.
Remember…investing in stocks, or in anything else, is all about the long term. That’s what we Wealthy Joes must focus on.
If you are new to investing, or know someone who would like to start investing but doesn’t know where to begin, please check out my book, The Stock Market is for Everyone. It’s available as both an e-book ($4.99) and a paperback ($9.99). Like these posts, it is quick and easy to read. And if you read the book and still have questions, you can reach out to me.
Until next time!