10 Aug Take an interest before you ask about the interest.
When I was 7, I had an extraverted friend by the name of Danny O’Neil who came from a double-digit Catholic family that resembled a dodgy cricket team more than anything else.
Anyway, being from a large Irish Catholic family, Danny knew a lot about shifty techniques to acquiring extra food and other things he might want from the family home and on occasion other places.
It was on our journey to school one day that Danny asked me if I wanted some strawberries. Now, being a sucker for a fresh strawberry, I jumped at the chance faster than Cathy Freeman out of the blocks but what I didn’t know was that these strawberries came at a cost. The cost was potentially being caught and then punished.
Danny had hatched a plan where we were to jump Mrs. Bateman’s back fence and fleece her strawberry patch. He knew just the spot where he was pretty sure she would not see us from her lounge window. There I was caught in a quandary. I love big red juicy strawberries and couldn’t think of anything better in my tummy right now but if Mrs. Bateman caught us, we would be in big trouble and my father had a strap that I was very afraid of.
This brings me to my final video in the series of 3 where I talk about the considerations of an Armchair Developer. When we begin questioning an investment opportunity about “what is the interest rate being offered?” we are essentially asking about the size of the strawberries when the questions prior to that should be around how we go about attaining the strawberries and who takes the blame if we get caught.
As an Armchair Investor, you must know:
1. The experience of the developer
2. The security being offered
3. What is the structure of the investment and what documentation is offered?
In this 4-minute video, I explain them both and why you must take an interest before you
ask about the interest.Click below to watch:
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