The Midas touch
Tom and his brother Greg had the Midas touch! No matter where they invested, success was soon to follow. Their claim to fame started in the late 80s when they built a pharmaceutical manufacturing company. By manufacturing other company’s drugs they found a way to avoid expensive research costs, yet reap huge profits. After a merger in 1991, Tom and Greg took all their sweat equity and walked away with nearly $100 million. I asked Tom about his philosophies and keys to being a successful investor. Here is what he shared with me:
1. Don’t expect the market or an opportunity to give you a second chance. You have to seize moment and take risks. Not careless risks, but rather calculated ones that have a high chance for a payoff.
2. Take action on your gut or years of learned experience. Your gut will rarely lead you wrong.
3. Understand the upside (best case scenario) and more importantly the downside (worst case scenario) before investing a dime. Plan for the worst and hope for the best.
4. Disregard advice that violates your common sense no matter how eminent the source.
5. Read the annual and semiannual reports. Study before you invest. If anything doesn’t make sense, sell it or don’t buy it.
6. Admit and correct mistakes—sooner rather than later.
7. Keep your own independent counsel of advisors.
8. Be skeptical, not cynical. Trust your own research.
Now coming from someone who’s been there, done that, made a fortune without sacrificing his principles, I’ll listen. Here is one class act who claims Jesus as his Savior and let’s his walk do the talking. He is one of the most generous guys I know!
God calls us to a life of commitment to Him. Our finances reveal our commitments in life. Where we spend, invest, and give our money reveals our priorities in life. As we grow in our faith, we should long to have our finances line up with God’s word. This means that we need to make a commitment to Him to make changes in our lives. Over the next year we will look at various ways to combine our faith and finances. Your journey begins today. Make a commitment to God that you will seek to learn His ways.
“Delight yourself in the LORD and he will give you the desires of your heart. Commit your way to the LORD; trust in him and he will do this: He will make your righteousness shine like the dawn, the justice of your cause like the noonday sun.” (Psalm 37:4-6)