What is the most common mistake that you see young investors make?
They do not assess risk well since they have so little experience. They do not realize they need to get in a lot of deals to make their risk profiles work. The higher the risk, the more deals they need to be in.
What is the best piece of business advice that you were ever given?
A famous investor, Richard Rainwater, once told me that he could tell smart investors by the amount of money they have made and kept because of investing. He said that doesn’t always work but it is seldom wrong. Expert advise givers are sometimes rich because they charge high fees, not because they really know how to invest.
What does it take for you to get excited about an investment?
Experienced management teams with a history of success, a barrier to entry and a few regulatory issues. And, like Warren Buffet, I need to be able to understand the business.
What was your first investment?
A lawnmower at age 11. I paid it off within a month and it gave great return for several years. (note: in retrospect, it met all my parameters of an exciting investment as mentioned above)
What do you enjoy about angel investing?
Seeing so many new ways to make or lose money, meeting a lot of wonderful people along the way and analyzing investments with my son, Scott.