Who is Warren Buffett? According to Wiki – he is an American business magnate, investor, and philanthropist. He is considered by some to be one of the most successful investors in the world.
A bit of my life story before I went back to sneakers and started Netmag. Like any young ambitious smart ass straight out of school, I thought I was able to do something 99% of the of people can’t do…and that is to the beat the stock market. Well guess what, I like most was just too naive to believe I could and like most of us learnt the long and hard way and that was losing money…a shit load of money at the time. The one wrong decision I made was going super heavy on the bullish gold price run, which I got completely fked…losing 2 years of hard earned profits in less than a month and that’s when I truly believed the stock market (aka. world’s largest casino) was not for me. That’s when I sold all my shares and started buying shoes. After 4 years and looking back, I was glad i did because I learned a shit load over these 4 years compared to sitting in front of a computer and clicking my life away.
One of the most important concept I learned to realize over the recent years of running your own business is that in order to be successful in the long run you have to be the top 1% in your industry. In other words, you have to to know more and be better at what you do than the rest of the 99% in the competing field. There are so many factors that determine the longevity and success of a business , but in the long run if you are not the the cream of the crop you’re chances of being and staying successful are much slimmer. Re-selling shoes is essentially the same thing as playing in the stock market, but just in a much simpler form. Just like the stock market there is a HUGE information asymmetry, which means some players know much more information (ie. insider info) than majority of the players out there and that gives those that know a fairly material advantage. One prime example is knowing ahead of time when a re-stock would happen and which stores would have the greatest quantity – that alone would give some an upper hand. The other aspect of re-selling is knowing the secondary market well enough and having a sense of what products would go up in price in the future or not. I had my share of bad decisions in buying and stocking up on certain pairs of shoes, but i think more than 70-80% of my calls were good ones that yielded positive returns.
I’m sure most of you are now wondering…how do I know which pairs would go up in value? To be honest there’s no fixed formula in doing it. However, if I were to break it down, it would be 50% experience, 25% skill and 25% luck. Experience really can’t be taught…you can only acquire it through time. If you look at the life cycle of an average sneakerhead, their time in the “game” is typically about 10 years. Most start around 16 and most usually leave the game around their late 20s when they realize they got REAL bills to pay in life. Very few people stay in the game for more than 15-20 years and for those that do, they obviously have much more experience than those that are just entering the game. The re-sell game is super competitive because there is simply no barriers to entry. So if you’re new to the game and you want to become a top re-seller, just keep in mind you still have some really experienced heads in the game that knows the market much better than you do. Even till today I’m still a learner, but eventually my goal is to be the top 1% in this market and hopefully everything I buy/invest in will yield positive returns.