My First Million
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“I've lost more money than most people have ever made”
What It Means
Having significant wealth allows for making bigger mistakes in absolute dollar terms, even if they're small percentage-wise
Why It Matters
Provides perspective on risk tolerance and the psychological impact of wealth on decision-making
When It's True
When someone has achieved significant wealth and made large absolute dollar mistakes through investing
When It's Risky
Could encourage reckless behavior or minimize the real impact of poor financial decisions
How to Apply
Remind yourself that mistakes are part of investing when you have sufficient wealth
Keep losses in perspective relative to total net worth
Use as reminder that even successful investors make costly mistakes
Example Scenario
“Investor loses $500K on a bad stock pick but realizes this is only 5% of their portfolio, helping them maintain perspective and not make emotional decisions.”