Last week on my favorite morning show, the Elvis Duran Show, Shark Tank star Barbara Corcoran stopped by the studio. I'm a huge fan of Shark Tank which shows that the American Dream is alive and well. People come up with such innovative ideas and the show is able to take them to another level thanks to the platform and of course the sharks. Here are a few of my favorite quotes from her visit.
Surprisingly Bob Pittman, CEO of iHeartMedia, was also in studio and he shared the advice that he recently gave to his son.
A failure and a success is exactly the same thing. It's a stepping stone. The only difference in the two is when you step on the success, you keep going in the same direction. If you step on a failure, you change direction. Other than that they're the same thing. Life is filled with stepping stones. It's a journey. You're always moving.
Here are Barbara's thoughts on college vs building a business:
It's not about what you get from school. You can't study entrepreneurship... it's about being on the street and getting street smart. Thinking on your feet and recovering and bouncing back and coming up with a creative idea. You don't get that in school. It's a program.
She also admits that many deals on the show didn't work out and she shouldn't have invested in.
You have to pay to play on Shark Tank. You have to be a player. And you also get into a certain mindset, why not. Why don't I give this kid a chance.
I think this last quote can also be applied to investing. You have to put your money into the stock market to capture the upside. Recent studies have shown that only 33% of millennials are invested in stocks and that seems especially low given their long time horizon. Not all your investments will be winners, but you have to do your research and then make smart decisions on where to allocate your portfolio.
On Shark Tank, many times, they are aren't just buying the company or product idea, but they are deciding whether or not to invest in the person standing in front of them. This is important to remember even when investing in stocks. Who is running the company? Do they have a track record of success? Where did they come from? Are they in a position to succeed? These are crucial questions to answer before investing in an individual security. Unlike the sharks, you don't have money to just roll the dice with.