I have decided to take a page out of Ray Dalio’s book Principles. I am actually taking the whole book. I have started documenting my investment and management decisions to see if my assumptions are correct over time. I am also going back to the previous conclusions that I have made that have resulted in success or failure to codify my principles. These are going to be released over time through my channels. 

1.0 Do Not Talk Yourself Into Doing Relationship Deals.

Relationship deals are opportunities you invest in to further the connection with the person asking you for capital. People are great at selling. It is always easy to get excited by someone’s personality and status and want to invest or co-invest with them for your gain. The promoter is showing the best version of themselves.

After the money is transferred, there is no reason for them to continue bringing you value outside of the ROI of the initial investment. If the initial investment isn’t meaningful- then stay away. You can never bank on future goodwill. You will develop authentic relationships doing good deals instead of reaching with “relationship deals.”