Acquiring More Money Requires Knowledge Skill and Risk

Money isn't always the price paid for something, especially if the goal is to make more money. In order to make money off any deal, three things are necessary: knowledge, skill and risk. Without at least one of these three things, you're unlikely to make much, if any money.

I have spent most of my life immersed in the world of horses. So, when I stood in a dealer's yard and looked at a pretty filly, I knew what I was looking at.

The ad in the paper read: Yearling Welsh Filly, Papers, $300. To someone in the know this was a too good to be true deal. I'd been looking at Welsh ponies for my daughter and knew even a cheap one was closer to $3,000. I decided to at least go look at this one though after talking to the dealer. She assured me she had registration papers for the filly. She also said the filly was so cheap because she was badly spoiled. This is not merely a reason for an expensive horse to be sold cheap it is a major reason. The price here is not money; it is danger or risk if you will.

Regardless of what you are trying to acquire you need to remember there is always a price. The price isn't always money though. Knowledge, skill, and/or risk may be a significant part of the price. Knowledge is one of the most valuable commodities there is when you are buying anything. In the case of the above mentioned filly all three factors applied.

Knowledge was important because, having done my homework before buying a pony for my daughter, I was aware of bloodlines, breeders and significant mares and stallions that were important to Welsh Ponies. When I looked at the filly I knew right away she was a Section B Welsh and a good one at that. When I looked at her registration papers I recognized that the breeders, bloodlines and horses listed were all top of the trees. Just looking at her grandparents told me that if she were at one of the Welsh farms she would have a three to five thousand dollar price tag.

Skill was a most important commodity in this deal because the filly had been completely ruined before she was even weaned. She needed a strong, knowledgeable trainer to overcome her bad habits and turn her into a good pony which leads to the third factor in her price.

Risk. The filly was dangerous. She would chase and attack people. She kicked, bit, reared and pawed, all potentially lethal behaviors in an animal that stood over 12 hands (a hand is four inches) and weighed five hundred pounds. And indeed the risk was great. In forty years of training hundreds of equines I can now say she was the most dangerous animal I ever worked with. So was she worth the price? I think so. At fifteen years she is an excellent riding and driving pony with a lot of ribbons and prizes to her credit. She is the gray mare gracing the cover of one of my books.

I don't just use the formula of Knowledge-Skill-Risk for horses. I use it for real estate, stocks and antiques as well. Does it always pay off? Of course not, but I will say I'm definitely ahead of the game. My knowledge of real estate allows me to buy property I am fairly sure will appreciate in value over a given amount of time. I usually look for something I think will double in value in five or ten years, a good return on money invested. I use the same formula for stocks. Antiques I mostly buy for my own personal use, but someday my heirs will have a nice little nest egg when they deal with the estate we leave behind.