CHECKING FOR EXAGGERATION IN POTENTIAL INVESTMENTS

Written By Gary Spirer Published April 22nd, 2011

There’s a balance between abundance and exorbitance you do not have to overspend to achieve leverage through better appearances. Seek the best quality you can afford. Often less is more.

This brings up another issues regarding how appearances can deceive

Unfortunately, as Buddhists and Hindus have declared, much of life is Maya or illusion. So often you can deceive yourself when your desires and wants overwhelm you. You lose sight of who you are or what your real callings is. You run after images. This often makes you a sucker for superficial appearances and intimidating know-it-all posturing by others.

Unfortunately I have found many times that people and companies exaggerate who and what they are. So many times I have seen people and companies try to impress me with their offices, cars, expensive lunches, name-dropping. Many times, beneath the exaggeration, a truer picture begins to emerge. How good is your questioning of the real details that matter. Much of whom people and companies are is revealed in their cash flow balance sheet and income statements.

But as we have seen with Crazy Eddies’ and Enron, there are ways to cook the books. We often are intoxicated by well publicized success stories. Conmen know how to set the state. They seem to have found the secret sauce. They find the vulnerabilities of what makes for human folly. What is the best defense against the seemingly infinite variations of human deceit. One statistics tell us that only a certain number of people are monetarily successful. Only 4% of new businesses over 10 years succeed. So when reviewing a business, an organization or a person, the odds of true financial success are slim.

Secondly, people’s actions are very revealing

One of my cardinal rules is whatever you see up front only gets worse over time. If a person contradicts themselves, acts shady, overly demanding, can’t stop spending, exaggeration, lacks, empathy, brags, fudges the facts, is crude, is cold, is hard to reach, seems always busy with busy work, can’t stop selling or negotiating, drops names, fails to meet deadlines, makes excuses, blames others, is very arrogant, is abrasive, is hard to pin down, cheats in golf, sports, on his wife, girlfriend, boyfriend.

You get the idea. Companies and people act very similar. But these actions cut across all areas of life.

Now matter how vigilant you are, you will be duped again and again. The real issue – the critical issue – is playing the championship points: Love, work, spirit, health, overall attitude.

No decisions are more important than who we marry and what work we choose. Both of these decisions affect your life significantly. Even the non decisions of not getting married or not choosing carefully what your work is, can have incredible consequence for your life.
If human beings are created to procreate survive and thrive, then how they handle these life events is critical. If a person does not marry and/or cannot have children, how the person compensates and copes affects them positively or negatively.

Because these decisions are so key to your life, you are brought to the issue of Spirit

Achieving financial independence: finding a positive relationship, hopefully a great companion and even a soul mate, involves skill and talent. Genetics and environment combine to create many challenges – some of which we have little control. If we can access the power of Spirit in life, we have a source of power and leverage more rewarding than any on earth. A true person of Spirit will never be lonely or want.

When you are deceived and/or betrayed, thrown a wicked curve, the inner source of Spirit and a sense that your life has meaning will, more often than not, enable you to pick yourself up and give life another go.

Today more than ever, you will constantly find yourself facing the possibility of individual deceit. People will constantly try to appear much more successful, effective, and competent than you are. Such subterfuges are at the heart of all relationships and communications. You need to be a master detective. Look for revealing body language, appearance, and dialogue. Sometimes you will meet wonderful people. But more often assume you will meet the exaggerator. Know these types cannot come to terms with who they are. To them, to be “unsuccessful” and vulnerable is like a death sentence. The exaggerators are detached from their true reality and can cause great harm to you and other.

Keep questioning yourself. Often, your susceptibility lies within you. Ask yourself what want are you trying to fulfill. If this person or company did not exist, what would I do or not do. Where else could I fulfill my needs or wants, however tedious and troublesome such a thought might be? Keep watching the Big Picture and the Small details for revealing words or actions.

Presenting themselves is an expression of how they see their company

If the can’t clearly and compellingly project their company in advantageous and desirable and exciting mode to you when they’re trying to get your money, how are they going to do it to a customer?

I believe deceit has become even more prevalent. At some level, deceit seems to have this naughty boy/girl appeal until you are a victim of it. When you look to give a company money, the basic transaction is clear. The Company wants your money to deploy in their company – assuming it’s not agreed to go in the owners’ pockets. You want to invest at a level to get some defined returns and/or benefits. But with the speed of information the internet the movement of capital I believe we are not only a celebrity crazed, winner takes all narcissistic society but one that has become coldly transactional.

Companies the people that run them and personal interactions seem much more transactional versus relationships oriented

Companies often present whatever they think can get the money. The individuals in the company only feign real interest in you, the investors or even the long term view of their company. Loyalty, respect, desire for excellence are superficially mouthed. More focus is on getting the value of their stock up so they can live the ‘American Dream’ depicted in the media. So, yes, more than ever companies want instant gratification. They do not really have a durable competitive advantage, a clear vision, a well articulated USP, a well thought out plan or a way to get and keep customers.

Looking back, I was amazed at how the person reveals himself. I refuted what my intuition was telling me. Many experiences involved wishful thinking. I did not probe the facts and assumptions. Promoters sell their ventures with great conviction. Often, I find the concept’s potential exciting. At times, I failed to understand the product or service thoroughly and equally as important, who would implement the plan. I committed more than once, the business mistake of falling in love with the concept’s potential and failing to check thoroughly enough its validity and the character and talent of the people necessary to fulfill execute the overall business plan.

Whatever the person says, check it out!

If a person says that he/she sells x, call up x. Verify. The more you investigate, the less you will invest. That means the less you’ll lose, too. Verify the story. Everything the person or company says, you should weigh carefully. I somebody tells you they have contracts, ask for the contracts. See what it says. Contracts have outs, minimums that must be reached, and other specific terms or requirements that turn what seems a grand slam opportunity into only a possible single or a clear strike out.

Have you invested passively in a startup or a small business that had purported prospects that didn’t pan out? How much did you lose? $5,000? $50,000? A million? Millions? Why? Did you have to invest? Did you need the action? Did you close your eyes to reality—the hard probing questions—and become impatient or greedy? Often, the worst people to back are salespeople and engineers. They are not managers nor entrepreneurs. You want to believe them. The business can’t miss. They will attempt to convince you to forget the details necessary for business success.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.