Todd Tresidder

And so that's why risk management is such a principally important concept.

What you see, the guys that played the way you were talking about, what you see them do is end up on the streets.

You see them go fly high and then go bust.

Right.

Like.

I'll give you a great Robert Kiyosaki is a famous example where he talks about how he had the Velcro wallet business went really big.

And then when the Velcro wallet business ran in trouble, they ended up living in another car.

Is it a true story?

I don't know.

But that's an example of the kind of stories you hear of people that just swing for the fences without any regard for risk management.

you're close you're close what it is is you you want to look at it through a set of filters see that i developed all this because of my hedge fund background right you want to develop a set of filters through every decision that is looking at the risk reward relationship right because what you don't want to do is take stupid risks that can bury you right so if you look at my history here like i sold all my real estate back in 2005 2006 right good timing

fine yeah well back then everybody told me i was an idiot right i mean i was literally openly lambasted and told i was stupid for doing it because i sold it outright and paid the taxes i did not reinvest it did not 1031 exchange it or anything and it was because the risk profile was too high on the downside and i just i just felt like it didn't make good math sense people were willing to pay me over twice what i was willing to pay for the same buildings why wouldn't i let them have it yep

I would never pay what they were willing to pay.

I had a lot of other anecdotal evidence, too much for the time we have on the podcast, but we could do it again if you want to talk.

The point is, that's an example of me pulling out of financial risk at a time when I felt it was too dangerous.

I got rid of financial leverage and I redeployed my time because my time was being sucked up and running my real estate business.

into building financial mentor, which is technology leverage, time leverage, and information and knowledge leverage.

They're very different leverages to apply for building wealth.

They don't have downside risks.

Whereas financial leverage, see one of the unique things of financial leverage is it cuts both ways equally.