Torcana Podcast 35: How to Overcome Big Risks & Fears When Investing

Host Colin Murphy is back in the podcast booth after a summer hiatus to talk about the fascinating topic of risk and how important it is to accept it and to have a healthy appetite and respect for it.

The risk or more accurately the fear of risk is the reason a lot of people don't invest in real estate or stop investing at the first sign of trouble. We often trip over ourselves when it comes to investing because of the way we subconsciously think about losses and gains. Our brains are hardwired by millions of years of evolution to be more afraid of losing than afraid of missing out on a gain.

It is an instinct that helped our ancestors protect today's food rather than risk it for more food tomorrow. When people were hunter-gatherers who lived on the edge of survival every single day, that was a very helpful instinct to have and for the majority of our existence as a species, it served us well and didn't disappear just because we had agricultural and industrial revolutions.

Getting back to the 21st Century, the technical term for how we subconsciously place far more importance on avoiding losses than accumulating gains is called loss aversion and it affects a huge range of decisions we make all through our whole lives.

Example 1: Many people either hoard too much of their wealth or invest it in ultra low-risk products that generate little interest or protection against inflation.

Example 2: People to avoid selling a stock that is falling because they cannot accept the reality of a loss and paradoxically, the same fear causes people to sell a stock too quickly after it rises just to lock in some profits.

Using theses and other incredible real-life examples, including how casinos & big corporations exploit our fear of losing to their own advantage, Colin discusses how to move beyond these ancient instincts when making both small and big decisions.

Recommended Books

"Thinking, Fast and Slow" by Daniel Kahneman

Torcana Podcast 35: How to Overcome Big Risks & Fears When Investing

Torcana Podcast 36: Interview with my Business Partner David Shaw, Tampa Real Estate and Renovation Expert In today's special podcast Colin Murphy invites his long term business partner David Shaw to chat about his career, how he became involved in real estate and his views on what it takes to become a successful investor. A wide range of topics were covered in this show which included: - How Colin and David originally met each other in Ireland - How they started a new business at the start of the downturn in 2008 - The challenges they overcame when reinventing the business again in 2014 - How to scale a property flipping business - The importance of feedback from the ground - How to avoid getting screwed by contractors - How to handle the (inevitable) stress and mistakes in the real estate business - The key habits of successful investors - And much more! Further Information www.torcana.com colin.murphy@torcana.com david.shaw@torcana.com

Torcana Podcast 36: Interview with my Business Partner David Shaw, Tampa Real Estate and Renovation Expert

Hosted by Colin Murphy, the Torcana podcasts are for anybody who wants to learn more about building a rental property portfolio with strong cashflow and stable tenants.  

In plain English and with lots of real life examples, Colin & his guests talk about the lessons learned and mistakes made when buying, renovating, managing and selling millions of dollars worth of rental properties. They focus on the nuts and bolts of real estate investing and try to give actionable and practical tips with every episode. 

How do you analyse deals? 
What is the best way to invest out of state or overseas?
How can you find good managers and contractors? 
What are the major mistakes to avoid when renovating and renting?

Tune into our podcasts for your answers!

Torcana Podcast 36: Interview with my Business Partner David Shaw, Tampa Real Estate and Renovation Expert

Torcana Real Estate Investment with Colin Murphy

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