Rick Warner – Be Careful When Investing in Banks

BIO: Rick Warner is a personal development coach, mentor, and highly respected real estate broker based in California. Rick’s story is one of triumph over adversity.STORY: Rick took his money from well-performing stocks and decided to time the market. After much waiting, he came across the First Republic Bank’s stock, whose share price had fallen from $300 to $30. He bought 700 shares at $29 each. The price kept falling. Rick bought 700 more shares at $13, hoping the price would turn around, but it didn’t. The bank was bought out, and the shares went to zero.LEARNING: Do a lot of research before investing. Banks are very volatile, so you must be careful when investing in them. “Availing myself to others, reading books, learning stuff, and listening to people like you has been my biggest game changer.”Rick Warner Guest profileRick Warner is a personal development coach, mentor, and highly respected real estate broker based in California. Rick’s story is one of triumph over adversity. At 20 years old, he found himself homeless and addicted to drugs. But with the help of a supportive community, he was able to turn his life around. Now, over 30 years later, Rick remains committed to personal growth and helping others achieve success. He has developed the Navigator program, a groundbreaking approach to personal productivity and purposeful living.Worst investment everRick had made some pretty good investments in stocks about three years ago. Then he felt things would go sideways, so he took all his money off the table. Rick’s plan was to wait and time when the market was right to reinvest. He waited and waited, but the market kept going up and stayed up, so Rick couldn’t get in until recently with the banking crisis.First Republic Bank’s stock, previously $300, had gone down to $30. He figured this was what he’d been waiting for. Rick bought 700 shares for $29 each, and by the end of that day, it had gone down to $21.The stock price kept falling; at some point, it was $13. Rick figured this was a big well-known bank with a good reputation and had done lots of business, so the stock price would eventually turn around. With this in mind, he decided to double down and bought another 700 shares. Three weeks later, the share price was $3. JP Morgan later bought the bank, and the shares went to zero.Lessons learnedDo a lot of research before investing.Andrew’s takeawaysWhen investing in banks, you invest in a highly speculative asset.Banks are very volatile, so you must be careful when investing in them.If you invest in something and it starts to go down, and you never thought it would, there’s nothing wrong with getting out. You can always get in again at another point.Actionable adviceAvail yourself to the people that have been around before you and be willing to ask them for help instead of doing everything yourself. Learn from other people’s mistakes instead of waiting to make the mistakes yourself.Rick’s recommendationRick recommends reading The Four Agreements, a simple guide on personal development. You can also look Rick up on his website if you want to just have a conversation or if you need mentorship.No.1 goal for the next 12 monthsRick’s number one goal for the next 12 months is to make his real estate business location independent so he can spend more time in his coaching and mentoring program.Parting words “Thank you so much for having me on the show, Andrew.”Rick Warner [spp-transcript] Connect with Rick WarnerLinkedInFacebookInstagramWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassThe Become a Better Investor CommunityHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleFVMR Investing: Quantamental Investing Across the WorldBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsAchieve Your GoalsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramThreadsTwitterYouTubeMy Worst Investment Ever Podcast