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The road to wealth is paved with broken conventional rules.

January 15, 2010

I was preparing to teach a college seminar, ‘Psychological Aspects of Investment and Taxation,’  so I attended workshops on financial planning. Speakers talked about liquidity, keeping credit available, diversity of investments, security, insurance protection, and all the other conventional rules paving the road to wealth. A year after digesting all that material, it downed on me that the road to wealth of a nation is ‘paved’ by following these conventional economic rules, not the road to wealth of an individual. I started investing breaking all the rules. I tied down all my money in internet stocks (no liquidity, no diversity), I borrowed the maximum possible (no security), I bought only a few companies (no diversity), I studied CEO personalities instead of many economic indicators (unheard of). I became an expert in behavioral economics, a forgotten discipline that economists reject for a 100 years!

I became wealthy.

I wrote a book The psychology of Investing, breaking  all the rules.

No one is buying the book.

I teach a free seminar on how to use psychology to invest. Very few people show up.

You know something, people are their worse enemy when it comes to making  money – they just won’t break ‘sacred’ rules. I  bought Ford shares last year for $2, it’s now $12. I almost tripled the value of my Amazon shares in one year, CME, IBM, you name it. Apple went up from $80 to $212 in eleven months. What were you doing during the recession?  I know what my friends and relatives were doing. They were worrying about me. 🙂

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