My Worst Investment Ever Podcast
Business:Investing
BIO: Paul Krake is a global strategist focusing on mega themes of climate, China, digitization, and demographics.
STORY: Paul quit a prestigious job where he had seasoned mentors to start a hedge fund. After a few years, he realized he wasn’t mature enough or emotionally prepared to run a business on his own.
LEARNING: Surround yourself with people who are more experienced than you are. Think about all the scenarios where an investment can go wrong.
“For every good idea out there, there are a million ways (that you can’t think about) for it to go wrong.”Paul Krake
Guest profile
Paul Krake is a global strategist focusing on mega themes of climate, China, digitization, and demographics. View from the Peak, Paul’s consultancy was formed in 2011 after an 18-year career in investment banking and as a macro hedge fund manager, where he covers global institutions on these mega themes. His latest venture is Climate Transformed, a global community of climate investors, entrepreneurs, and corporate leaders who are practically implementing the $100 trillion investment required for us to achieve decarbonization and sustainability.
Worst investment everPaul’s dad passed away in November 2004, and a couple of days after his funeral, Paul was sitting in his mom’s backyard at four in the morning. At that moment, he thought of the idea of starting a fund.
Paul went ahead with his idea and started a hedge fund even though the timing was wrong, and it was for all the wrong reasons to follow through with this idea. There was such a high degree of emotion involved in making this decision that he didn’t really think through it and consider all that he was giving up.
At the time, Paul had a prestigious job at Caxton Associates. He had the support of great mentors and trainers. He gave up all this to start his business.
After about three years of running the hedge fund, Paul realized he wasn’t emotionally prepared or mature enough to do what he was doing.
Lessons learnedBefore you make any investment:
Recommended resources: The secret to not getting stressed over not finding ways to de-stress is to use fewer resources.
No.1 goal for the next 12 monthsPaul’s number one goal for the next 12 months is to successfully roll out 30 in-person events in nine countries.
Parting words“I love this. I think it’s a great way to get people to seriously think about the benefits of failing.”Paul Krake
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Connect with Paul Krake
Igor Yelnik – Think About Non-Market Risks
Bogumil Baranowski – Be Careful With Businesses in Secular Decline
ISMS 17: Larry Swedroe – Do You Project Recent Trends Indefinitely Into the Future?
ISMS 16: Top 5 EM Country Interest Rates – Normal China Yield Curve
ISMS 15: Top 5 DM Country Interest Rates – Steep US Inversion
ISMS 14: Regional Interest Rates - Low in Asia, Egypt and Frontiers on Fire
ISMS 13: Global Interest Rates - Hikes Slow, Inversion Signals Recession
Peter Ricchiuti – Don’t Fall in Love With a Stock
Jason Hsu – The Market Can Be Crazy for Longer than You Have the Conviction
Shreekkanth Viswanathan – Qualitative Strengths of a Company Matter Too
Jeremy Kokemor – Tread Carefully When Investing in Metals and Mining
Paul Hodges – There’s No Substitute for Judgment
Amy Minkley – What Is Your Enough?
Benjamin Claremon – Know What Kind of Investor You Are
Edward McQuarrie – Never Ever Sell Naked Calls
ISMS 12: CPI Racing Across the Globe
ISMS 11: US Banking Crisis and Fed Rate Cut
ISMS 10: US CPI Could Decline to 4% By YE23; Unless QE Revs Up
Michelle Leder – Read the 10-K Before You Buy That Stock
ISMS 9: Saving Silicon Valley Bank Brings New Risks
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