Why did MASTERS fail so Quickly?

You may have seen on the news that Woolworths, the owners of Masters, is now closing

down the Hardware chain since it’s lost over $700m (yes SEVEN HUNDRED MILLION)

since starting it’s takeover of the world (!) 2011. I don’t know about you, but that’s a

super fast fall from grace, with 63 Stores that’s like a Titanic hitting the iceberg

for sure!!!

Some links to satisfy yourself : click here to read

and another interesting article click here

 

So what can you & I learn from this massive loss? Here are some take-aways:

1. Having Money Doesn’t Win The Game (it also doesn’t Give You Brains)

Woolworths have alot of money, and with their cashflow from the supermarket

chain I’m sure they could ride it out for a few more years.

But unfortunately having money doesn’t mean you win in every game.

Some doctors/dentists (pick a high earning white collar profession) for example,

making $500,000 p.a. think they can be Super Successful Property Developers

because they afford more they most mums and dads, and buy some more

expensive sites.

In a boom Market they are geniuses (ha), but when the market corrects they are

great interest payers to make banks rich. In any game you need experience,

education, knowledge and know how. It’s like you and me starting to operate

on a sick person with no training…good luck!

 

2. Don’t Feel The Need To Keep Up With The Big Boys.

When everyone is “high” on the hype that is out there, we sometimes look

around and want to “crack it big” like the likes of Mirvac , Stockland and

Australand just to name a few. You need to remember these guys didn’t

start BIG, they started as modest developers and grew organically over

DECADES. You should have seen their faces after the GFC. With the

size of their land holdings , & valuation drops of 10% – 15% plus, man they were

bleeding like anything — nothing was selling and interest still needed to be

paid. YES they may be making a Motza in the current market but it

hasn’t (and won’t ) always be that way. They are in the game for the long

haul and so should you.

I have often been encouraged to get good at my game and let other people

get good at their game. It’s like any sport, everyone has their different

levels and competing/comparing too much can sometimes be detrimental

to you winning!!!

Thanks for listening :O)

Til next time,

Nhan

 

PS: Watch Out For Our First Advanced PRoperty Conference for 2016,

to be launched this week — It’s going to be HOT HOT HOT :O)

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