ng。 It's an inspiring story worthy of study； nonetheless； it's still a tragic military defeat。 They got their butts kicked。 A failure if you will。 They lost。 So how do Texans handle failure？ They still shout； 'Remember the Alamo！'〃
Mike and I heard this story a lot。 He always told us this story when f he was about to go into a big deal and he was nervous。 After he had done all his due diligence and now it was put up or shut up； he told us this story。 Every time he was afraid of making a mistake； or losing money； he told us this story。 It gave him strength； for it reminded him that he could always turn a financial loss into a financial win。 Rich dad I knew that failure would only make him stronger and smarter。 It's not that！ he wanted to lose； he just knew who he was and how he would take a loss。 He would take a loss and make it a win。 That's what made him a winner and others losers。 It gave him the courage to cross the line when others backed out。 〃That's why I like Texans so much。 They took a great failure and turned it into a tourist destination that makes them millions。〃
But probably his words that mean the most to me today are these： 〃Texans don't bury their failures。 They get inspired by them。 They take i their failures and turn them into rallying cries。 Failure inspires Texans to ' become winners。 But that formula is not just the formula for Texans。 It j is the formula for all winners。〃
Just as I also said that falling off my bike was part of learning to ride。 I remember falling off only made me more determined to learn to ride。 Not less。 I also said that I have never met a golfer who has never lost a ball。 To be a top professional golfer； losing a ball or a tournament only inspires golfers to be better； to practice harder； to study more。 That's what makes them better。 For winners； losing inspires them。 For losers； losing defeats them。
Quoting John D。 Rockefeller； 〃I always tried to turn every disaster ' into an opportunity。〃
And being Japanese…American； I can say this。 Many people say that Pearl Harbor was an American mistake。 I say it was a Japanese mistake。 From the movie Tora； Tora； Tom； a somber Japanese admiral says to his cheering subordinates； 〃I am afraid we have awakened a sleeping giant。〃 〃Remember Pearl Harbor〃 became a rallying cry。 It turned one of America's greatest losses into the reason to win。 This great defeat gave America strength； and America soon emerged as a world power。
Failure inspires winners。 And failure defeats losers。 It is the biggest secret of winners。 It's the secret that losers do not know。 The greatest secret of winners is that failure inspires winning； thus； they're not afraid of losing。 Repeating Fran Tarkenton's quote； 〃Winning means being unafraid to lose。〃 People like Fran Tarkenton are not afraid of losing because they know who they are。 They hate losing； so they know that losing will only inspire them to become better。 There is a big difference between hating losing and being afraid to lose。 Most people are so afraid of losing money that they lose。 They go broke over a duplex。 Financially they play life too safe and too small。 They buy big houses and big cars； but not big investments。 The main reason that over 90 percent of the American public struggles financially is because they play not to lose。 They don't play to win。
They go to their financial planners or accountants or stockbrokers and buy a balanced portfolio。 Most have lots of cash in CDs； low…yield bonds； mutual funds that can be traded within a mutual…fund family； and a few individual stocks。 It is a safe and sensible portfolio。 But it is not a winning portfolio。 It is a portfolio of someone playing not to lose。
Don't get me wrong。 It's probably a better portfolio than more than 70 percent of the population； and that's frightening。 Because a safe portfolio is a lot better than no portfolio。 It's a great portfolio for someone who loves safely。 But playing it safe and going 〃balanced〃 on your investment portfolio is not the way successful investors play the game。 If you have little money and you want to be rich； you must first be 〃focused；〃 not 〃balanced。〃 If you look at anyone successful； at the start they were not balanced。 Balanced people go nowhere。 They stay in one spot。 To make progress； you must first go unbalanced。 Just look at how you make progress walking。
Thomas Edison was not balanced。 He was focused。 Bill Gates was not balanced。 He was focused。 Donald Trump is focused。 George Soros is focused。 George Patton did not take his tanks wide。 He focused them and blew through the weak spots in the German line。 The French went wide with the Maginot Line； and you know what happened to them。
If you have any desire of being rich； you must focus。 Put a lot of your eggs in a few baskets。 Do not do what poor and middle class people do： put their few eggs in many baskets。
If you hate losing； play it safe。 If losing makes you weak； play it safe。 Go with balanced investments。 If you're over 25 years old and are terrified of taking risks； don't change。 Play it safe； but start early。 Start accumulating your nest egg early because it will take time。
But if you have dreams of freedom…of getting out of the rat race… the first question to ask yourself is； 〃How do I respond to failure？〃 If failure inspires you to win； maybe you should go for it…but only maybe。 If failure makes you weak or causes you to throw temper tantrums…like spoiled brats who call an attorney to file a lawsuit every time something does not go their way…then play it safe。 Keep your daytime job。 Or buy bonds or mutual funds。 But remember； there is risk in those financial instruments also； even though they are safer。
I say all this； mentioning Texas and Fran Tarkenton； because stacking the asset column is easy。 It's really a low…aptitude game。 It doesn't take much education。 Fifth…grade math will do。 But staking the asset column 'J is a high…attitude game。 It takes guts； patience and a great attitude toward failure。 Losers avoid failing。 And failure turns losers into winners。'' Just remember the Alamo。
Reason No。 2。 Overcoming cynicism。 〃The sky is falling。 The sky is falling。〃 Most of us know the story of 〃Chicken Little；〃 who ran around warning the barnyard of impending doom。 We all know people who are that way。 But we all have a 〃Chicken Little〃 inside each of us。
And as I stated earlier； the cynic is really a little chicken。 We all get a little chicken when fear and doubt cloud our thoughts。
All of us have doubts。 〃I'm not smart。〃 〃I'm not good enough。〃 〃So ' and so is better than me。〃 Or our doubts often paralyze us。 We play the。 ｜ 〃What if？〃 game。 〃What if the economy crashes right after I invest？〃 Or 〃What if I lose control and I can't pay the money back？〃 〃What if things don't go as I planned？〃 Or we have friends or loved ones who will remind us of our shortcomings regardless of whether we ask。 They often say； 〃What makes you think you can do that？〃 Or 〃If it's such a good idea； how come someone else hasn't done it？〃 Or 〃That will never work。 You don't know what you're talking about。〃 These words of doubt often get so loud that we fail to act。 A horrible feeling builds in our stomach。 Sometimes we can't sleep。 We fail to move forward。 So we stay with what is safe and opportunities pass us by。 We watch life passing by as we sit immobilized with a cold knot in our body。 We have all felt this at one time in our lives； some more than others。
Peter Lynch of Fidelity Magellan mutual fund fame refers to warnings about the sky falling as 〃noise；〃 and we all hear it。
〃Noise〃 is either created inside our heads or comes from outside。 Often from friends； family； co…workers and the media。 Lynch recalls the time during the 1950s when the threat of nuclear war was so prevalent in the news that people began building fallout shelters and storing food and water。 If they had invested that money wisely in the market； instead of building a fallout shelter； they'd probably be financially independent today。
When the riots broke out in Los Angeles a few years ago； gun sales went up all over the country。 A person dies from rare hamburger meat in Washington State and the Arizona Health Department orders restaurants to have all beef cooked well…done。 A drug company runs a national TV commercial showing people catching the flu。 The ad runs in February。 Colds go up as well as sales of their cold medicine。
Most people are poor because when it comes to investing； the world is filled with Chicken Littles running around yelling； 〃The sky is falling。 The sky is falling。〃 And Chicken Littles are effective because everyone of us is a little chicken。 It often takes great courage to not let rumors and talk of doom and gloom affect your doubts and fears。
In 1992； a friend named Richard came from Boston to visit my wife and me in Phoenix。 He was impressed with what we had done through stocks and real estate。 The prices of real estate in Phoenix were depressed。 We spent two days with him showing him what we thought were excellent opportunities for cash flow and capital appreciation。
My wife and I are not real estate agents。 We are strictly investors。 After identifying a unit in a resort community； we called an agent who sold it to him that afternoon。 The price was a mere 42；00