The best deals are the ones you don’t take

There are a lot of deals that people will offer you in life; do not take 99% of them. Avoid not only the bad ones, but the okay ones and the good ones, too. Wait for those special, “1 out of 1000″ opportunities to come along — the deals you are almost guaranteed to win big.

Participating in a bad deal is much worse than missing out on a good one, because engaging in any deal comes at a high opportunity cost: a deal occupies your time and your resources; it reduces liquidity; if you are tied up in a subpar deal, you cannot participate in an A+ deal when it comes along. Therefore, on the topic of deal selection, lean towards saying “no” too much, and being wrong, versus saying “yes” too much, and getting stuck.

If this all sounds intimidating because you do not know what an A+ deal looks like, simply avoid the obviously bad ones and you will be taking a step in the right direction.