Dr. Simon Ramo, a legendary American engineer wrote a book in 1970 about, of all things, tennis, titled Extraordinary Tennis for the Ordinary Player.
The engineer in him noticed that the game of tennis involves two games – one is played at the professional level and the other is played at the weekend warrior level.
Now, that’s not particularly brilliant, but the conclusion he reached from his observation is.
After extensive analysis, Ramo concluded that professional tennis players win points while amateur players lose points.
In other words, for professionals, most points are won by the pro hitting a spectacular winning shot that is just out of reach of their opponent (a “winner’s game”), while amateurs typically lose points by making an unforced error (a “loser’s game”).
Writing in a famous 1975 Financial Analysts Journal article, noted investment analyst Charles Ellis extended Ramo’s tennis concept to the investment business.
Ellis said investing had flipped from being a winner’s game to a loser’s game.
I think what he meant was that to succeed at investing you need to focus on making fewer avoidable errors as opposed to making spectacular winning investments.
Now making fewer avoidable errors is a worthy goal at any time, but it is critical in today’s more mature property markets.
So what has all this got to do with property?
The best way to explain this is that during property booms it’s easy to look smart. Rising values cover up many mistakes.
But the property markets around Australia are very fragmented and even those that performed strongly over the last year or two are unlikely to exhibit the same levels of growth in the future.
That reminds me of 2 of Warren Buffet’s famous sayings:
- “A rising tide lifts all ships” and…
- “When the tide is out you can see who is swimming naked.”
Yet some investors are doing very well.
While some investors are floundering, at the same time other, more strategic investors, those who understand the importance of correct timing, proper asset selection and smart financing using financial buffers, are heading towards financial independence through smart property investing.
These successful investors are not trying to get rich quick. Instead they focus on making fewer avoidable errors by using proven trusted property investment systems.
The 4 types of knowledge you need to seize control of your financial future:
To make the most of our current schizophrenic economic and property markets strategic property investors will need:
- Unbiased economic insights
- Education based on proven property investing principles and strategies
- Guidance from expert investors who have been there, done that
- Insider information so you can spot market trends that are “hidden” from the average investor
That is why it is critical to learn from experienced and successful property investors, from someone who has already achieved what you want to achieve and has retained their wealth in the long term.
I also see it as a great time to not just wait for the market to do its thing, but to actively “manufacture growth” by getting involved in property investment in South Africa and then holding on to your properties in the long term and enjoying the capital growth. And that’s precisely the topics we’ll be teaching at my monthly Property Investment Seminar – http://propertyseminars.co.za/ – book your seat now.
We give our investors the tools, knowledge and peace of mind to start a buy to let business and to make property investment the cornerstone of their pension fund for early and carefree retirement.”