My Worst Investment Ever: Frank Paiano

Frank Paiano My Worst Investment Ever

An original by Dr. Andrew Stotz, My Worst Investment Ever features investors and financial titans from around the world to share their heartbreaking tales of investment misfortune. 

Listen and discover the best practices for risk management that will keep you in the game.

In This Episode

Frank Paiano is a retired professor from Southwestern Community College, where he was teaching his favorite course Introduction to Investments. He started as a computer programming teacher and mathematician but then moved his way into investments in finance after working at a brokerage firm as a programmer for a while.

He’d been a broker now for over 20 years. Aside from that, he is also an insurance agent. He plans on getting right back to teaching and helping young people to improve their financial lives.

You need to make a choice, and you need to invest. The world doesn’t end if you choose carefully and wisely. You are going to do well.
– Frank Paiano

My Worst Investment Ever

Losing a tremendous opportunity for not doing anything Frank’s worst investment was an investment he never made.

At that time, Frank was putting as much as he could into stocks through 403b, which is like a 401k, an employer-sponsored retirement plan.

One day, a duplex became available for a fairly reasonable price, just down the street from Frank. He thought it was a pretty great deal. And now, he was torn between focusing on investing through his 403b, which would suffer if he invested in the property.

In the end, he did not buy the property at $250,000. Eight years later, at the peak of the market in 2007, that same property sold for $765,000.

Lessons Learned

Make a choice, but do your research first
If you are not sure about what investment to choose, do your research; find someone you trust; get a good referral; or take a course. Learn how to value individual securities, how to research mutual funds, how to look for real estate, and make your choice.

Do not give up
You’ll probably mess up the first time but learn from it and do it again successfully the second time.

Andrew’s Takeaways

The concept of alternative outcomes
There are many possible alternative outcomes to an investment story. Always remember them when you look back from that investment you did not do.

Do not fixate on one thing
There are so many things happening around us. Just accept the fact that you’re missing something every single day.

Actionable advice
You need to get in the game. Do your research or find a competent advisor that you can trust.

No. 1 goal for the next 12 months
Frank is hoping to join a subscription service where he can travel to Mexico at very low fare so that he can have a vacation there every month.

For more insights, listen to the full podcast here:

About Andrew Stotz
Andrew Stotz, PhD, CFA is the CEO of A. Stotz Investment Research, a company that provides institutional and high net worth investors with ready-to-invest stock portfolios that aim to beat the benchmark through superior stock selection.

The original My Worst Investment Ever podcast shares stories of investment loss that can help listeners to avoid making the same mistakes.

Written by

Andrew Stotz

Last updated on

February 4th 2020, 2:10 pm

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