The Things to learn from the Facebook artist – Part 2

Choe actually made a mistake here: Back in 2005, when he took on the project with Facebook, he reportedly said he thought the whole idea of the company was “ridiculous and pointless.” He invested against his better judgment. And he happened to get lucky.

3.       Be prepared to lose your entire investment.

Most start-up companies don’t go public. For every dot.com millionaire, there are many more casualties of enterprises that failed. They include former employees whose compensation consisted mostly of stock in companies that went bust; independent contractors like Choe; and venture capitalists.

The stock that Choe received in exchange for his services turned out to be worth a lot of money. But what if Facebook hadn’t succeeded? In that case, he would have essentially painted the murals for nothing, or practically nothing.

4.       Don’t put all your eggs in one basket. 

Chances are, Facebook started out as a miniscule part of Choe’s investment portfolio. Once the company goes public, it will probably comprise most of his net worth. He should think about diversifying.

5.       If it sounds too good to be true, it probably is.

The Facebook story is making us collectively giddy and euphoric. That could lead us to be more susceptible than usual to scams and get-rich-quick plans. When considering new investments, don’t slack off on your due diligence.

6.       Do what you love. 

When he took on the Facebook assignment, Choe probably wasn’t thinking about getting rich. He was doing work that he enjoyed, which is always a good policy. That career strategy might not make you a millionaire. But one way or another, you’ll be richer for it.

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Posted by Usman Khalid on Feb 4 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.