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This is what I learned from a deadbeat

When it comes to investing, these guys have had their fair share of failures.

Self-made millionaires Michael "Rooster" McConaughey and Wayne "Butch" Gilliam, veterans of the oil-and-gas pipeline industry, know what it's like to lose and lose big.

Gilliam and McConaughey are no strangers to making mistakes, but they have found a way of tempering their losses.

"It's kind of like the stock market," Gilliam said. "That's why you diversify. You don't put all your eggs in one basket … some things's gonna go good, some are gonna be in the middle and some are gonna excel. And hopefully at the end of the day, when you add it all up, you know, you're ahead of the game."

Not every investment is going to pan out, so McConaughey suggested lending a smaller sum of money to entrepreneurs that you think are inexperienced and give them the opportunity to prove that they can be business savvy.

"Loan him a little bit. And lot of times, if you give him a little bit and it is a failure and they don't wanna pay you back, they'll hide from ya. And I like the ones that hide from me. I mean, I'd rather loan them a little bit and never see the son of a [expletive] again."

Watch "West Texas Investors Club" on CNBC Tuesday at 10 p.m. ET.