You're right. Property has too many spuirkers, too many who talk up property. With shares, one is humbled very fast, arrogance doesn't get you far.
Millionaire thru shares
- Thread starter vla
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You're right. Property has too many spuirkers, too many who talk up property. With shares, one is humbled very fast, arrogance doesn't get you far.
You mean, it's just those who make money from property, like the ones on this forum, that do the bragging?!
Anyway, let the search begin...I might check out these share forums...
GSJ
I tend to agree that the question lacks scale.
So what if somebody makes a million from shares. If they start with 10 million its pretty easy to make a million
.
Is the question really 'where people start from nothing' as they do with property and then end up with a million in equity?
I suspect that it is much more difficult to end up with a million in equity in shares, starting from zero, as it takes a much higher level of skill and knowledge to operate successfully in the share market whereas most people can succeed (most accidentally) with realestate.
Cheers
So what if somebody makes a million from shares. If they start with 10 million its pretty easy to make a million
.Is the question really 'where people start from nothing' as they do with property and then end up with a million in equity?
I suspect that it is much more difficult to end up with a million in equity in shares, starting from zero, as it takes a much higher level of skill and knowledge to operate successfully in the share market whereas most people can succeed (most accidentally) with realestate.
Cheers
Hiya,
Since I started using real money, my annualised return has been just a shade over 35% from trading shares. Given that I started with $6,002.50, by my calculations I should have a million by around 2024.
That, of course, assumes I'm consistent (and so is the market!)
But I took that 6k or so from the equity in my properties - so does it count?
I understand Scott Pape, amongst others, has created quite a lot of wealth primarily from shares. I am not sure that you'll get many answers along the lines you're after on a property forum though...?
Cheers
James.
Since I started using real money, my annualised return has been just a shade over 35% from trading shares. Given that I started with $6,002.50, by my calculations I should have a million by around 2024.
That, of course, assumes I'm consistent (and so is the market!
)But I took that 6k or so from the equity in my properties - so does it count?
I understand Scott Pape, amongst others, has created quite a lot of wealth primarily from shares. I am not sure that you'll get many answers along the lines you're after on a property forum though...?
Cheers
James.
I know an an old bloke who built up about a 4 million dollar share portfolio. But I wouldn't know how much that was directly built from shares. I'm not that nosey. He certainly wasn't keen on property though.
I know a younger bloke about 35 who would have made a million from shares. He has been geared into them for 15 years and doesn't buy any speckies whatso ever. He is highly geared into high yield, low PE shares. No resources, he didn't buy techs 6 years ago. He does earn a high wage though.
I know a young bloke about 40 who has made multi millions from shares and futures. Probably more from futures. He has transfered nearly all his wealth into property though as he went. Smart move I think. He has sold a lot of property lately! Maybe he has gone bad? Unlikely to be shares then, maybe futures? I have no idea though why he has sold some property, once again, I'm not that nosey.
I do know many more people who have become millionares from property rather than shares.
Six years ago at the end of the tech boom there was countless stories of people who had made multi millions from the tech boom and had got out before they had lost too much. You would have only needed a simple stop loss strategy. People were buying Sydney waterfront property with their profits. It was in all the papers at the time. People will be buying Sydney waterfront property from their resource boom gains too before it is over.
This is a bit of a loaded question on a property forum. I for one am keen on shares, but that is only because of the pathetic value that has been about in property for the last few years. I fully intend to make most of my wealth from property in my lifetime, and most of my share profits will probably end up in property. That's as long as it adds up, which it certainly doesn't at the moment.
See ya's.
At the moment??
VCR are one of the first companies I bought when they were still Micromedical. I almost did a round trip with them.
I bought at 35 cents, watched as they went all the way to $3.81 and watched as they came all the way back to 66 cents, when I sold a few months ago. A 10 bagger and I wanted more.
Actually, I was adhering to the 'Buy and Hold' strategy a little too zealously. I thought spec shares were only in the resource sector. I hadn't heard of stop losses at the time either.An expensive lesson, I had 10,000 or them. My worst share story.
I still believe they'll take off again as soon as they start producing but I'm out of them for now.
Something inspiring - we bought Minara last year, it's gone up 245% since then (after massive fluctuations!). If we had bought only that share, I'd say shares were fabulous!
We bought Babcock and Brown about 18 months ago - up about 100% - but the fluctuations are so stong within one day, you have to just leave it alone!Now, the losses on some are less than inspiring....
We have about 15 different shares that I trade myself, consisting of blue-chips, mid-and small-caps. Their fluctuations are enough to make you unwell
!! We're doing quite well with them over the year (more than our property) - but it's not for the faint hearted! I've seen drops in prices in just one day that make you want to go and hide! And we don't leverage on them - (if we had, I would have lost Minara and Babcock to the margin call 9 months ago ) But I would like to in the future when I have a better understanding of them....We do leverage our managed funds (or similar types of investments) however - very high LVR in fact and don't worry at all about them - we don't see nearly the fluctuations (or the growth
). But we can sleep at night with high LVR against our property and managed funds - and I can trade shares in the meantime and not have to panic when something changes 50% in one day!Don't dismiss that "for kids" book so easily. And either way, if you want to understand shares - just get in there and buy some! You'll see what I (and others) are talking about very quickly - you can get into shares for very little capital compared to property- what an easy way to start - go for it!!
Cheers,
Jen
Yep, good call Marty. But you know what I mean. A $3,500 'investment' (if you can call a spec share an investment) goes to $38,100 and back again to $6,600 still hurts. It was the 'not knowing when to sell' that was the problem.
Ok, mu worst would have to be Bill Express (BXP). I bought 2000 at 31 cents, then another 2000 at 26 cents and then sold all of them for 17 cents.
But you know what? The loss had been staring me in the face for months and as soon as I took the loss it was like a huge weight off my shoulders and it cleared my head... selling them was a sort of a cleansing.Since then I'm a lot more relaxed about shares and have learned a lot.
My best story to know is Rinker (RIN) I bought 2 months ago around the $13 range after they'd dipped to the low $12's. And then 2 weeks ago, a takeover offer. Now trading at around $18.60. And I have about quarter of my portfolio in them. I saw it as a good company that was out of favour because of some bad news and figured it would rebound over the next year or 2, not month or 2.
As Jen said, BNB have been a bumpy ride but good over all, although I bought at a higher price than her. Sims (SGM) has also been good as has AMP over the last 18 months or so. Healthscope (HSP) was good too and Paperlinx (PPX) too. Others are mediocre. I like buying companies that are good but out of favour as you can see. Most have bounced back.
Hmmm, typing this has made me realise something. My best shares have all been good companies that have temporarily fallen from grace and rebounded.
Uncle Warren would be proud of me. 
I remember back in 96 when the internet was young I got onto a share group online who all swapped research on a single share. They knew it back to front. Friends of Buderim was the name of the group and they were all following Buderim Ginger and knew everything there was to know about it. Someone knew that AMP had a big stake and had been selling down slowly - such a small company price couldn't cope with a big sell order so they did it slow over 12 months or so to ensure they got a decent price.
This person found out when AMP selling was nearly finished and we all decided to get onboard at $0.60 ish. I rang my broker to buy $20K worth - lot of money to me back then. He did everything but call me an idiot, sucked in by this dodgy internet caper etc etc. Shamefaced I bought something else - can't remember what.
BUD ran to well over a $1 in a matter of two or three weeks. Kicked myself for not buying.
I then heard about DAVNET who were into a whole new idea of cabling buildings for phone and internet. This was just prior to the tech bubble. I called my broker and he again laughed at me. I reminded him of his advice re BUD and he relented and bought me $20K worth of DVT at about $.20 per share.
Immediately fell to $0.18 cents and my broker laughed and laughed at me.
He called me a week later to say there was a bit of strength in it and we should sell at $0.22 cents and recover my cost. He told me that they had researched the company and it was a dog. So I sold. After all what would I know compared to one of the country's leading brokerage houses?
Share then headed upwards and I watched it run to well over $6 per share. My stake would have been worth $600K.
Tech bubble came and the rest is history. Some of the members of my internet group made well over $1M on that one share. They had the courage of their convictions.
Now I dare say I wouldn't have held my stake all the way to $6. No doubt I would have sold when the price doubled. I was inexperienced and knew nothing of charts and shares, trailing stops etc etc.
I learnt that a broker's advice might be OK for a blue chip buy and hold portfolio but in this info age they have no advantage over the rest of us when it comes to acting on info. I learnt that I should have trusted my instincts.
Valuable lessons I know. But I would rather have had the $600K and done without it Could have bought four IPs in Perth outright ......
This person found out when AMP selling was nearly finished and we all decided to get onboard at $0.60 ish. I rang my broker to buy $20K worth - lot of money to me back then. He did everything but call me an idiot, sucked in by this dodgy internet caper etc etc. Shamefaced I bought something else - can't remember what.
BUD ran to well over a $1 in a matter of two or three weeks. Kicked myself for not buying.
I then heard about DAVNET who were into a whole new idea of cabling buildings for phone and internet. This was just prior to the tech bubble. I called my broker and he again laughed at me. I reminded him of his advice re BUD and he relented and bought me $20K worth of DVT at about $.20 per share.
Immediately fell to $0.18 cents and my broker laughed and laughed at me.
He called me a week later to say there was a bit of strength in it and we should sell at $0.22 cents and recover my cost. He told me that they had researched the company and it was a dog. So I sold. After all what would I know compared to one of the country's leading brokerage houses?
Share then headed upwards and I watched it run to well over $6 per share. My stake would have been worth $600K.
Tech bubble came and the rest is history. Some of the members of my internet group made well over $1M on that one share. They had the courage of their convictions.
Now I dare say I wouldn't have held my stake all the way to $6. No doubt I would have sold when the price doubled. I was inexperienced and knew nothing of charts and shares, trailing stops etc etc.
I learnt that a broker's advice might be OK for a blue chip buy and hold portfolio but in this info age they have no advantage over the rest of us when it comes to acting on info. I learnt that I should have trusted my instincts.
Valuable lessons I know. But I would rather have had the $600K and done without it
Could have bought four IPs in Perth outright ......Nice examples Simon.
I think there are probably many who have made a quick million in shares (vs. property), or in hindsight could have made a quick million in shares, but didn't, or did, but then lost most of it because they didn't sell at the right time. Generally a bit different to wealth through property.
GSJ
I think there are probably many who have made a quick million in shares (vs. property), or in hindsight could have made a quick million in shares, but didn't, or did, but then lost most of it because they didn't sell at the right time. Generally a bit different to wealth through property.
GSJ
Hmmm thought i might put in my 2c - I have been investing primarily in shares for about 7 years or so (apart from my ppor which i am also currently selling) - but I just dont have too many of those quick gain stories.
I am a buy and hold investor - these days a substantial portion of my portfolio is in good old AFI and ARG, which I buy when it is trading at a decent discount to its' net assets (as well as taking up their $5,000 share purchase plans each year if appropriately priced). I think that has netted me about a 25% annual return over the 7 years - although I guess a lot of that could be from the booming share market than anything else, and the ability to further leverage and buy more via margin loan as prices have gone up.
Can't say i'm at the $1m yet .. maybe only halfway in terms of $ ... much closer in terms of timeframe to go with any luck. I started really small in terms of $ invested so the first few years were really slow going, however that snowball is getting bigger faster now! Will i get there primarily through stocks? - absolutely no doubt (although will i diversify into property as well? - umm given i'm on these forums lurkin around not much doubt there either)
Oh i guess there would be a few reasonable performers in there as well come to think of it .. pickin up csl for $12 when it was out of favour, and mbl a few years back too which has been handy .. but overall slow and steady is how my portfolio looks .. with virtually none of the wild swings people talk about - i think the most mine ever moves is maybe 2% in a day!
I am a buy and hold investor - these days a substantial portion of my portfolio is in good old AFI and ARG, which I buy when it is trading at a decent discount to its' net assets (as well as taking up their $5,000 share purchase plans each year if appropriately priced). I think that has netted me about a 25% annual return over the 7 years - although I guess a lot of that could be from the booming share market than anything else, and the ability to further leverage and buy more via margin loan as prices have gone up.
Can't say i'm at the $1m yet .. maybe only halfway in terms of $ ... much closer in terms of timeframe to go with any luck. I started really small in terms of $ invested so the first few years were really slow going, however that snowball is getting bigger faster now! Will i get there primarily through stocks? - absolutely no doubt
(although will i diversify into property as well? - umm given i'm on these forums lurkin around not much doubt there either)Oh i guess there would be a few reasonable performers in there as well come to think of it .. pickin up csl for $12 when it was out of favour, and mbl a few years back too which has been handy
.. but overall slow and steady is how my portfolio looks .. with virtually none of the wild swings people talk about - i think the most mine ever moves is maybe 2% in a day!
