When we got home, he showed me all the stats as to
why the price of oil was going to go up over the next few
years. Statistics I had never seen before, even though I al-
ready owned a substantial share block of an existing oil
company. With that information, I immediately began look-
ing for and found a new undervalued oil company that was
about to find some oil deposits. My broker was excited
about this new company, and I bought 15,000 shares for
65 cents per share.
In February 1997, this same friend and I drove by the
same gas station, and sure enough, the price per gallon
had gone up nearly 15 percent. Again, the "Chicken Little"
worried and complained. I smiled because in January 1997,
that little oil company hit oil and those 15,000 shares went
up to more than $3 per share since he had first given me
the tip. And the price of gas will continue to go up if what
my friend says is true.
Instead of analyzing, their little chicken closes their
mind. If most people understood how a "stop" worked in
stock-market investing, there would be more people in-
vesting to win instead of investing not to lose. A "stop" is
simply a computer command that sells your stock auto-
matically if the price begins to drop, helping to minimize
your losses and maximize some gains. It's a great tool for
those who are terrified of losing.
So whenever I hear people focusing on their "I don't
wants," rather than what they do want, I know the "noise"
in their head must be loud. Chicken Little has taken over
their brain and is yelling, "The sky is falling and toilets are
breaking." So they avoid their "don't wants," but they pay
a huge price. They may never get what they want in life.
Rich dad gave me a way of looking at Chicken Little.
"Just do what Colonel Sanders did." At the age of 66, he
lost his business and began to live on his Social Security
check. It wasn't enough. He went around the country sell-
ing his recipe for fried chicken. He was turned down 1,009
times before someone said "yes." And he went on to be-
come a multimillionaire at an age when most people are
quitting. "He was a brave and tenacious man," rich dad
said of Harlan Sanders.
So when you're in doubt and feeling a little afraid, just
do what Col. Sanders did to his little chicken. He fried it.
Reason No. 3. Laziness. Busy people are often the most
lazy. We have all heard stories of a businessman who
works hard to earn money. He works hard to be a good
provider for his wife and children. He spends long hours
at the office and brings work home on weekends. One day
he comes home to an empty house. His wife has left with
the kids. He knew he and his wife had problems,
_bi.it