High Yielding Shares Again

[roe]

maybe its just me, but why splurge the profits on a depreciating asset?????

Got to spend money on stuff you like every so often else what is point of investing and having cash? and without people splashing the companies earning would be depressed and it would be bad for us stock holder

it can be super profitable observing what people spend money on and buy business that rake in from that perspective

 

[Mr. Fabulous]

maybe its just me, but why splurge the profits on a depreciating asset?????

Because most people invest to fund their preferred lifestyle.

 

[John_]

Because most people invest to fund their preferred lifestyle.

Exactly, funding a better lifestyle.

 

[Intrinsic_Value]

Hi I.V

What have been your high yield plays for the year?

ASX Index looks like its doing better than the US Index so far this year

posted it in an earlier post on this thread.

 

[Intrinsic_Value]

Got to spend money on stuff you like every so often else what is point of investing and having cash? and without people splashing the companies earning would be depressed and it would be bad for us stock holder

it can be super profitable observing what people spend money on and buy business that rake in from that perspective

there is spending money and then there is spending money.
Guess it relative to
(a) the returns generated
(b) most important, the amount of capital concerned.

I don't judge others between trading/investing (although I judge myself very critically and hence avoid trading). There is no single strategy that is 'the best'.

But once one gets their 'strategy', the next step is accumulation of capital from that strategy.

Until that capital reaches a size upon which one can afford 'leakage of a sizable degree', I question the need to spend on 'significant do-dahs'.

At what point in the capital cycle does one spend on a car?, on a boat? on a yaht? on a castle?
There is no definitive right and wrong to the above questions. But, in my opinion, there is an intelligent answer. And in my opinion the intelligent answer is when the capital accumulated allows the 'leakage' whilst still providing a sufficient future buffer.

In regards to the second part of your comment, I totally agree. This was highlighted in many Peter Lynch'es works. But this applies more to mass market.

 

[Intrinsic_Value]

Because most people invest to fund their preferred lifestyle.

So if I go to the casino with a $1000 of capital, I throw it all on number 36 on the roulette and it comes up with number 36, I make $350k (or what ever the odds are), and I go and by a farrarie (spelling?).

Does that make intelligent sense.

I well understand the principal that one invests to provide a return that can generate a better future lifestyle. There is no point in just accumulating (we cant take it to the next place?). But the essential question in my opinion is the division of that accumulated capital between
(a) money to be spent on doo-dahs (of whatever relative degree)
(b) retention of capital to build that capital

 

[John_]

Intrinsic Value - for starters i don't throw money on any position like the casino and second what exactly are you trying to say?

-----------

Most people that i know who invest are doing it to fund a better lifestyle.

My initial investment in the market already returned back into savings account, the so called trading money that is being used to trade and buy luxury items is free money gifted from the market.

I hope this clears it up Warren Buffett

 

[china]

IV and John.

Would either of you consider philanthropy? If you make 60k on a trade, would you consider giving 10k to a worthy cause or if you had more to give set up your own charitable foundation. Especially when giving away a little would not materially alter your lifestyle or hamper further capital growth. There must come a point in your net worth where this should be a feasible consideration.

This way you are not specifically splurging and may even get some bonus points in the next life if you believe in such.

For me my goal has always been 5 mil net worth.consisting of ownership of ppor and 100k passive income per annum. Should I not give away 10k each year if I have the good fortune to reach age 60?

 

[John_]

IV and John.

Would either of you consider philanthropy? If you make 60k on a trade, would you consider giving 10k to a worthy cause or if you had more to give set up your own charitable foundation. Especially when giving away a little would not materially alter your lifestyle or hamper further capital growth. There must come a point in your net worth where this should be a feasible consideration.

This way you are not specifically splurging and may even get some bonus points in the next life if you believe in such.

For me my goal has always been 5 mil net worth.consisting of ownership of ppor and 100k passive income per annum. Should I not give away 10k each year if I have the good fortune to reach age 60?

Hi China

I actually sponser an orphange giving them almost 10% of anything i make been doing this for about 5 years now. If thats the goal you have i hope you get to it and have a networth of 10mil with 200k passive you could donate 20k a year


Life is short help someone along the way and enjoy it while you are breathing.

 

[willair]

I hope this clears it up Warren Buffett

Big Warren is financing to the tune of $US-3-Billion from Berkshire Hathaway back pocket for Burger-King to buy out a Canadian high-end coffee-doughnut multi linked chain "Tim-Hortons",,making it the 3rd largest fast food business in the known world,plus the new linked business will set up headquarters in Canada because of lower tax system in that country,which will target the fastest growing coffee and breakfast markets nothing stays the same...,imho..

 

[roe]

So if I go to the casino with a $1000 of capital, I throw it all on number 36 on the roulette and it comes up with number 36, I make $350k (or what ever the odds are), and I go and by a farrarie (spelling?).

Trading isn't gambling if you have system that works and know what you are doing, it can generate very high return and those who discovered the secret keep it to themselves.... easy money

John_ maybe one of those

 

[redwing]

Big Warren is financing to the tune of $US-3-Billion from Berkshire Hathaway back pocket for Burger-King to buy out a Canadian high-end coffee-doughnut multi linked chain "Tim-Hortons",,making it the 3rd largest fast food business in the known world,plus the new linked business will set up headquarters in Canada because of lower tax system in that country,which will target the fastest growing coffee and breakfast markets nothing stays the same...,imho..

No flies on Warren

 

[Intrinsic_Value]

Trading isn't gambling if you have system that works and know what you are doing, it can generate very high return and those who discovered the secret keep it to themselves.... easy money

John_ maybe one of those

I might have written my comment poorly.

My intention was not to pass judgement on trading as a mechanism to wealth creation. Some do it very well.

I used the example of gambling on roulette merely to highlight a large 'win' from a small amount of capital.

My reasoning, surely its better to reinvest most of those winnings until ones capital is of a sufficiently large level, that expenditure on non-wealth creating items doesn't have much of an effect.

By the way what happened, just posted two days ago to Johns post and saw that John has been banned.

 

[Ausprop]

here's one... went for a beer with a mate the other day and he told me he netted 3 mill out of a trade. he's pretty unassuming so I had no idea he was even worth that, but he's a straight shooter. said that on the day he closed out he went straight down to buy a new Ferrari, was about to open the door of the floor model when the sales rep came out and went off at him for touching the car, so he told him to sod off (in different words) and saved himself a heap of depreciation.

 

[oc1]

I might have written my comment poorly.

My intention was not to pass judgement on trading as a mechanism to wealth creation. Some do it very well.

I used the example of gambling on roulette merely to highlight a large 'win' from a small amount of capital.

My reasoning, surely its better to reinvest most of those winnings until ones capital is of a sufficiently large level, that expenditure on non-wealth creating items doesn't have much of an effect.

By the way what happened, just posted two days ago to Johns post and saw that John has been banned.

Read through his posts, though most get deleted. A troll is a troll mate.

 

[roe]

I might have written my comment poorly.

My intention was not to pass judgement on trading as a mechanism to wealth creation. Some do it very well.

I used the example of gambling on roulette merely to highlight a large 'win' from a small amount of capital.

My reasoning, surely its better to reinvest most of those winnings until ones capital is of a sufficiently large level, that expenditure on non-wealth creating items doesn't have much of an effect.

By the way what happened, just posted two days ago to Johns post and saw that John has been banned.

Sorry misunderstood.... I been around long enough to know not to pass judgement on other or pick out their failing if I can help it.

I read a lot of human behaviour in finance so I am some way better equip to know why people do certain things with money and if you get into that space, they will out there defending with all their might

and not sure why people get banned, hope I dont get banned
probably browsing more from now on and no post just to be sure

 

[MTR]

Is now the time to start buying up??? As market is starting to dip?? Just curious anyone doing this???

MTR

 

[Television]

and not sure why people get banned, hope I dont get banned
probably browsing more from now on and no post just to be sure

That'd be a disservice to us all, roe.

Judging by your post history, you've got no chance of being banned. Keep the wisdom coming

 

[redwing]

Is now the time to start buying up??? As market is starting to dip?? Just curious anyone doing this???

MTR

Just thinking aloud, I wonder how the markets are affected (if at all) with Super money each quarter that needs to find a home

 

[The Falcon]

Is now the time to start buying up??? As market is starting to dip?? Just curious anyone doing this???

MTR

Although I DCA couldn't help pick up a sly additional tranche. Plenty of powder dry if we see 4xxx.