fbpx
U

How to Identify Opportunities (And Make Your Own Luck)

September 2, 2011

Often times in life, we associate the successes of others with luck.  If someone lands the perfect job, finds their soul mate, or wins the jackpot, we automatically think that luck is on their side.  In the investment world, however, luck is not the only factor involved.  In today’s show, we share some great tips for creating your own luck by spotting opportunities that other investors overlook.

The Millionaire Next Door (a favorite here at The Money-Guy Show) outlines 7 facts about the millionaires in this country.  Two of those directly relate to today’s podcast:

  • They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
  • They are proficient in targeting market opportunities.

This means that the most financially successful individuals in America do not randomly invest their money.  They spend their time doing research and they have a mindset which allows them to spot great market opportunities.

Some key learning points:

  • Look for opportunity in adversity.  This means that when the world cries that the sky is falling, you look for opportunity.  One of our favorite Warren Buffet quotes is “You should be fearful when others are greedy, and greedy when others are fearful”.  Having that contrarian point of view can allow you to take advantage of undervalued assets when everyone else is attempting to flock to safety.  To be clear, we don’t believe in market timing.  But, we do believe in over-allocating in sectors that are undervalued and reallocating when holdings become overvalued.
  • Understand the fundamentals or analytical facts.  Knowing the fundamentals of an investment or company will give you the confidence to make moves when others are hesitant.  If you have the concrete facts, investing is more a strategy than a leap of faith.
  • Patience, patience, patience.  Do not try to force an opportunity.  Do your research, sit back, and wait for the opportunity to present itself.  You don’t have to make a move just to be moving.  In addition, don’t get cute with the numbers.  If you are always waiting for a price to go down a little more (then a little more), you may miss an opportunity altogether.  If you recognize a great deal, take advantage of it.
  • Allocate your resources well by keeping liquid funds.  You have to keep some money on the side so you can take advantage of opportunities when they come around.  After all, it does no good to find a deal if you can’t act on it.

Hopefully these tips will help you identify opportunities when investing in the future.  If you have been “lucky” enough to take advantage of some good opportunities in the past, feel free to share them below or on our Facebook page.

In addition, please go check us out on our brand new YouTube channel!  We will be regularly posting mini podcasts as well as “The Money-Minute”, our new platform for answering your financial questions.  If you want your question to be featured in a video, email it to [email protected]!

Most Recent Episodes

Financial Hacks and Habits of the Top 1% (By Age)

ho wouldn’t want to have a high enough income and net worth to be considered part of the top 1%? In this episode, we’ll tell you exactly how much you need to be considered part of the top 1% - and the habits and hacks those in the top 1% used to get there.   In this...

How to Win With Money in 2023!

Financial resolutions are always near the top of the list of Americans’ most popular New Year’s resolutions. Whether you want to save and invest more, pay off debt, or have other financial goals, we will give you the tools you need to win with money in 2023.   In this...

TikToks That INFURIATE Financial Advisors

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

5 Levels of Wealth AND How to Achieve Them! (2023 Edition)

We believe there are five distinct levels of wealth, but they aren’t solely dependent on income or net worth. We’ll walk you through each of the five levels - including how to know where you are at, how to advance to the next level, and signs you are doing it right.  ...

Average Net Worth By Age in 2023!

It’s time for one of our most anticipated shows of the year: our annual Net Worth By Age show! In this year’s edition, we’ll shared updated numbers and data for 2023 and discuss the most important things for you to focus on in each decade.   In this episode, you'll...

Win Financially During a Recession! (Everything You Need to Know)

The bear market we've experienced in 2022 has been longer than many in recent memory - and some are concerned that the economy may soon enter into a recession. Here's everything you need to know to stay on-track and win financially during a recession!   In this...

The Fed Just BROKE the Car Market! (What You Need to Know)

Car prices have been on a rollercoaster ride the last few years, and it looks like they might finally be coming down. In this episode, we’ll discuss what you need to know about the current car market, pitfalls of buying a car, and how to do it the right way.   In this...

Top 4 Money Mistakes People Make During the Holidays!

There’s a reason why financial resolutions are always near the top of the list in January - many Americans spend the holiday season making financial mistakes. In this episode, we’ll discuss the top money mistakes people make during the holidays and how to avoid them....

Financial Advisors Share What They WISH They Knew About Money Earlier!

Have you ever felt like if you just knew this one thing about money earlier your finances would be in a better spot? In this episode, we’ll share the five biggest things we wish we knew about money earlier!   In this episode, you'll learn: What we wish we knew earlier...