Is Investing really an art?

Warren Buffet once said, “Never depend on a single income,make an investment to create a second source.”

Is Investing really an art? Good question.

Paul Moore is the managing director of three(3) commercial real estate funds at Wellings capital. He is the co-host of The Art of Investing and how to lose money.Likewise,he is a best-selling author of the book,The Perfect investment. He was with Omobola Stephen on her show and he was able to share his over two(2) decades experience on investment,real estate, spirituality,and business with her.. Here are the excerpt:

OS: Can you introduce yourself to my audience?

PM: I’ve been in business. I graduated as an MBA in the 1980’s and I went to Ford motor company and I have my own company and we sold that to a public firm twenty three(23) years ago and I’ve been a real estate investor, enterpreneur ever since. My problem all along has been…I’ve had this problem right here…between my ears and that I believe in this false dichotomy. I believe the lie that I had a spiritual life over here and that I pray and God answered prayers over here but I have a business over life over here and that is separate from my spiritual life and even if I knew that was wrong in my ear,I still acted that way. I didn’t know that God wanted to bring heaven to earth. God’s principle ,His ways,His rule and reign. His kingdom in heaven to earth through my business. I found that out more recently and I’ve been trying to act in regards to that in the last several years and I have some great stories about what God has done in my business but in other business as well.

OS: What’s the transition like from your stint at Ford motor company to becoming the managing director of three(3) commercial real estate funds at Wellings capital?

PM: When I worked in Ford,I really liked Ford and Detroit and I enjoyed my time there but I always was on the side trying to start some side business. I always has something in mind I wanted to do. And so,as a result of that,I started tickering around evenings and weekends and I finally…my friend has started a wonderful company and so I opened up an office with him and we were off to the races.after doing that for years,we sold that company and I started . I made a mistake of getting involved in everything that caught my eyes. If it was a shining object,I chased it.And so,I got involved in investing . When I got involved in investing,I wasn’t really Investing. I thought I was. It was actually speculations.

Investment,Omobola,is when your principle is generally safe and you’ve got a chance to make a return. Speculating is when your principle is not at all safe and you got a chance to make a return…

OS: What are some of the secrets that is employed by the super wealthy to attain and maintain their wealth over generations?

PM: A lot of super wealthy people invest in commercial real estate. Infact,almost all of them do. Residential real estates like houses in the neighborhood,they typically…they are valued based on comparable properties. They call them comms. That means the property is only as good as the neighborhood but in commercial real estate,the value is based on maths and the maths formula for commercial real estate is that the value equals the income divided by the rate of returns.

OS: Can we talk about your riches to rags and back story?

PM: This is one of my spiritual story in business. So,in 1997,I had over a million and half dollars in the bank and ten(10) years later,exactly in the fall of 2007, I had two and half million dollars in debt and I actually had all the debts against residential and commercial real estate deals including a five-acre piece of land that could be split into five(5) one acre lots at a beautiful lake. And I didn’t know how to split that and my partner,we were going down. Remember,into the great recession in 2008 but we didn’t know that,we didn’t know what was coming…

“Everyone wants a piece of land . It’s the only sure Investment .It can never depreciate like a car or a washing machine.”

Russel Sage.

OS: Your podcast is titled, “How to lose money.” Who wants that? Can we talk?

PM: Yeah! You know about twenty (20) years ago,I started going to different conferences as an entrepreneur and I notice that all the conferences,the people were telling all their success stories and everybody was amazed t their wonderful success and I thought to myself, this people are also discouraged because they are so far from that success they don’t think they could ever get there and they would stay in the lobby,on the brakes. “Ah! I’d never get there. That guy had all the breaks,he has all the connections. He had all this or she has all that. We would never make it.” And I thought, ” How sad they don’t tell about their struggles and they won’t talk about their struggles.” There was one conference I went to seven years in a row,people even ask them during the Q&A time, “What are you struggling with? And they won’t say anything and I don’t know why. And so,I thought,if I ever get to that place where I am on the stage,I’m going to talk about my pain and losses,and struggles along the way…

OS: Now,do you have any strategies that you can recommend to people to have more ROI’s?

PM: I think that it’s really important to know the difference between investing and speculating which I mentioned before and if you want to speculate, that’s just fine. But you need to realise that you are doing it,you need to realise the Warren Buffet way to wealth is quite different. He believes in a snowball effect where you invest carefully,you analyze carefully,you invest in cash flowing companies that produce an income and you continue to slowly build your wealth that way…

“The rich invest in time,the poor invest in money.”

-Warren Buffet.

OS: How can God use people to do miracle in the business sector. Do you have any experience to share?

PM: Yeah! Like I said,I have this false dichotomy in my head. But as Christian’s,we have the opportunity to bring heaven to earth and I have lots of stories about that.But, here’s a quick one, there was a guy named Mathew. He lived in Winscosin area. He believed that God wanted to do great things through him but he also lived no hunting. And so, the problem with compound bows- the kind of bows people used for hunting. They have been invented in the late 1960’s but they never worked perfectly. They were out of sync and the top and the bottom never fired perfectly because they had two(2) cams on them and so, one-day,God spoke to him and gave him a thought. He said, ” I have the best ideas in the world for everything,if people would just ask me.” Well,he said, “Okay,if you ‘ve got the best ideas in the world for everything,can you show me how to build a better compound bow?” And about two(2) weeks later,he was sleeping in the middle of the night,and he woke up there was was a piece of paper floating infront of his face suspended in the mid air and even had three(3) hole in it and there was a pencil drawing on it. A completely different kind of compound bow and he woke up and he began to copy this down and he began to draw and his wife said, “What are you doing?” And he said, “I think I’m having a vision.” Anyway,he went and he built the compound bow and he got a patent on it.Now,he has over twenty (20) patents…

OS: Is Investing really an art?

Well! I think is both a science and an art. Some of the greatest investors in the world, they analyze quite scientifically but there’s also an art to it. Like also…When stocks or when something is dropping very very quickly it’s very hard to have the courage to invest in it even when you know even if the number say you should and so the number is the science part.And the knowledge,and the courage,and the conviction to invest in something that looks really bad and every body is trying to get rid of the courage to buy right there is very difficult to muster up and that’s where the art comes in.

“90% of all millionaires become so through owning real estate.”

– Andrew Carnegie.

Paul Moore has got an incredible investment insights that is inexhaustible,should you be interested in listening to full interview kindly click E146: Talking business and investment with Paul Moore here

Better still,you can connect with Paul

http://www.wellingscapital.com

emmerson@wellingscapital.com.

You can get his best-seller here