Millionaire thru shares

[GreatPig]

I remember a story in the newspaper from late last year about a guy who put a wad on FKP and made quite a few million - enough to buy a luxury boat from memory.

Can't find any references to the story online now though, but I did wonder at the time why a guy would suddenly put such a large amount on a stock like that.

GP

 

[RichardC]

OK guys, You win. I quit!

The original question was if anyone ever made a million out of shares and I have tried to show that it happens regularly. That ordinary guys with modest capital have done this during the resource boom.

I gave myself as an example of someone who is nearly there but last night Jamie made a highly offensive post accusing me of gloating and worse and if I use an anonymous HC poster no-one believes it.

Hi all,

Is "esmeralda" truthful?? This is the real question.

Let's pull the trade apart for a minute.

April 04, bought $45,000 worth of a penny dreadful stock. Why?
Any successful investment strategy that I know of has a stoploss point. How can you set a stoploss on a share that could go to 0 cents at any time??

The answer is simple, you can't. You have to be prepared to lose the entire investment.

To work around this problem, any trader/investor that has a form of risk control, would only risk a small proportion of their trading/investment stake on any one of these trades, say 5% at max?

If this was the case then esmeralda had close to $1,000,000 for trading before she implemented the trade.


The other options are
1/ She had no regard for risk and effectively bet her entire bankrole on a pennydreadful. Is this the preferred method to stockmarket riches??

2/ It was just a paper trade and not real.

If option 1/ was true, then she is very likely to lose the lot when *** relists.

bye

Bill, esmeralda only needed to invest 10k to achieve the mill in the original question. It was an open secret at the time that resources in general and uranium in particular were about to boom. Such an easy call I made it here myself (didn't buy PDN though). The archives would show it.

With a little guts and faith it is easy for a believer to make such an investment. Naturally you do some reading! I have done so myself. 20k in BSG two yrs ago (when that was a big chunk of my shares money) is now worth over 300k and I still hold those shares. But I'm gloating again

Any successful investment strategy that I know of has a stoploss point. How can you set a stoploss on a share that could go to 0 cents at any time??

The answer is simple, you can't. You have to be prepared to lose the entire investment.

This load of rubbish shows you res property investors don't have the backbone for speculative investment yet, IMHO, your high/neg gearing strategy is more risky than mine.

I will now join TFB in retirement so you can continue to talk among yourselves, just don't include me.

RichardC aka Thommo or Bill to my friends.

 

[Go Fast]

I remember a story in the newspaper from late last year about a guy who put a wad on FKP and made quite a few million - enough to buy a luxury boat from memory.

Can't find any references to the story online now though, but I did wonder at the time why a guy would suddenly put such a large amount on a stock like that.

That was Kevin Seymour. He certainly didn't need the FKP trade to buy the boat - He's one of the richest men in QLD and I think the rich list has him with $350m+. He used to have 8.5m UTB shares. Probably converted them across to TTS so they're probably worth about $150m now.

 

[alexlee]

Well, for a guy who has been such a supporter of resources for the last few years (and getting it right) AND with your appetite (and presumably skill) for calculated risk, RichardC, you must have made a mint in the last couple of years!

Can I assume you will be retiring to a Carribean island or Italy or Spain or just a 5 acre block somewhere in Oz next to the ocean? Or donate your millions to charity or whatever? Me, I'm just a resi IP investor slowly building my assets, still working a day job, probably taking more risk than I know. Ah well, I'll just have to struggle on and hope time erases all my mistakes.
Alex

 

[geoffw]

I gave myself as an example of someone who is nearly there but last night Jamie made a highly offensive post accusing me of gloating and worse

Thommo

Your presence has been a great asset to the forum. We need a contrary viewpoint to "buy and hold property" as an asset class. I, for one, have appreciated your viewpoint, and I am sure many others have too.

You did tell me that you were unhappy with me removing your response to Jamie today. I know that you did not quote the deleted post, but only replied to it, in a good way, before it was deleted.

I would hope that one contrary viewpoint (even if it did get more personal than we allow in the forum, and even if it was deleted before most forumites got to read it) does not make you take your ball to another playing field. It's a pity that a single thoughtless remark by a single person would cause you to leave. I hope that my action in deleting the response did not contribute to you leaving.

 

[Bill.L]

Hi all,

sigh,

Thommo, RichardC or whoever you wish to be called, do you think you made some assumptions when you posted this,

This load of rubbish shows you res property investors don't have the backbone for speculative investment yet, IMHO, your high/neg gearing strategy is more risky than mine.

when referring back to my post???

What makes you assume I am highly negatively geared???
What makes you assume I don't have the backbone for speculative investment???

What I was trying to point out was the extent of risk undertaken by esmeralda, or for that matter anyone else, in purchasing paper script in unproven companies.

Do you think that having a stoploss point on a speculative investment is a load of rubbish???Why???

Enjoy your retirement, and good luck with your investments for the future.

bye

 

[Monopoly]

You did tell me that you were unhappy with me removing your response to Jamie today. I know that you did not quote the deleted post, but only replied to it, in a good way, before it was deleted.

Yes, that's right Bill/Thommo/Richard aka ??? was good enough to wish Jamie a Happy New Year.

I read Jamie's post, and I don't think IT was offensive.

I read some of RichardC's comments, and albeit many have merit, the line which accuses property investors of lacking "backbone" for speculative investment was IMO far more insulting than any made by Jamie.

It would be a shame to see you drop off the forum Bill/Thommo/Richard (but if I was going to be 100% honest; I won't miss you, just as you wouldn't me...okay shoot me, but I have to tell it like it is right???) Anyhow, putting my feelings aside for the good of others......

Many of your posts contribute a volume of (shares) knowledge that is beyond that of many (hell, even mine!! ) but unfortunately, what you sometimes contribute in value is lost in a single sweep of arrogance often misinterpreted as "gloating".

Perhaps your NY resolution Bill/Thommo/Richard or whomever you wish to return as, would be to practice the art of TACT thereby when posting pearls of wisdom, the messages will be received with the intent you wished them delivered/conveyed. In a positive way???

Happy New Year to you all, and FWIW....come on guys, chill out!!

Cheers,
Jo

 

[willair]

OK guys, You win. I quit!
will now join TFB in retirement so you can continue to talk among yourselves, just don't include me.
RichardC aka Thommo or Bill to my friends.

Come on RichardC/Thommo not again must be something they
put in the water up your way,good luck for 2007 and don't run away
we all need people like you around ...willair.......

 

[Monopoly]

It's a pity that a single thoughtless remark by a single person would cause you to leave. I hope that my action in deleting the response did not contribute to you leaving.

Have you never made a thoughtless remark out of frustration, GeoffW?? Jamie deleted his post, and you did the right thing in deleting the response to same, thereby removing all traces of what could be perceived badly/negatively/offensive by others. I can't see why you would need to apologise for trying to clean up a small (but potentially nasty) blow out.

If Bill/Thommo/RichardC decides to pick up his bat and go play ball elsewhere that is HIS choice. Personally, I reckon "good riddens" as I'm sure he (and no doubt countless others) would if I did likewise. If he wants to go off and sulk about it, LET HIM. You played your part, you cleaned up the mess, now move on......no need to beg forgiveness; it doesn't do you justice. After all, you were doing what is expected of you as a moderator.

(But if you're really lucky, maybe Richard/Thommo/Bill will get ticked off enough at MY comments and will come back and bite at me, and thus return him to his rightful place amongst his fans!!! (okay Richard/Thommo/Bill you ol' geezer...do your stuff....BITE ME!!!)

But ya better make it quick, I have a party to go to at 6.00pm!!!

 

[Sleeper]

OK guys, You win. I quit!


RichardC aka Thommo or Bill to my friends.

Geez your a touchy bugger!

Believe it or not there are actually people around who invest in negative geared property, blue chip and speculative shares, and other investments in between.
And in proportions as a percentage of their total portfolio that are against all the 'rules' of the so called intelligent investors.

Lighten up. If your going to stir the soup expect some interesting come backs.

 

[bundy1964]

There are rules?

If there are I have broken most of them.

 

[GreatPig]

That was Kevin Seymour. He certainly didn't need the FKP trade to buy the boat - He's one of the richest men in QLD

Okay, I didn't remember that bit - if indeed the article mentioned it.

Might explain why he'd drop such a large amount on one stock like FKP though (I was also holding around that time, but could only afford a toy boat on my profits ).

Cheers,
GP

 

[GreatPig]

Do you think that having a stoploss point on a speculative investment is a load of rubbish???

Or did he perhaps mean that you can't have a stop/loss point on a speculative investment is a load of rubbish?

GP

 

[see_change]

Thommo

Personally I would be disappointed to see you disappear off the forum . I'd sit down , have a couple of beers , go fishing , have a rant about those ....heads ... and then come back . I know we've had our disagreements on the odd occasion ( only once I think ... ) , but I like to hear differing opinions and would miss yours .

Of all of the people I've met who do take a more speculative approach to the stock market , you are about the only person I've come across who's opinion I give any weight to.

See Change

 

[yadreamin]

I for one will miss your posts Richard C. You make me think and question many things that are said on the forum and to me thats a good thing.
Its good to have a opinion on property property property will not always be the best and smartest investment.
Hopefully after a quiet think you will join the forum again one day.
In the mean time enjoy and relax
cheers yadreamin

 

[topcropper]

I think property has definately produced more millionaires than shares, however, this is a nice story about one share investor.....

http://www.abc.net.au/pm/content/2004/s1066480.htm

A modest farmer, but he had invested in Wesfarmers for many years and no one knew how wealthy he was,

'When Alf Jenkins died at the age of 94, most people believed he was a man of modest means, but tucked away, he had hundreds of thousands of shares in the agribusiness company, Wesfarmers, and they were worth around $28 a piece.
The result? Those kindly neighbours, who'd befriended him and cared for him in his declining years, are now worth more than $11-million.'

Nice story.

See ya's.

 

[Trogdor]

One thing about this thread is the common theme that to make a substantial amount via RE you buy and hold for a long time, but to make substantial sums through shares you buy speculative shares that may go up 10-fold.

Even the previous article about wesfarmers was about some "luck" in holding one company.

Many people (myself included) have exposures for diversified "blue chip" shares (directly or via wholesale MFs or other means) which are leveraged, and in amounts similiar to one, or several properties. I expect that the timeframes to make money from this would be (very roughly) similiar to that of property - but its nice to know one is making money at more times (ie uncorrelated returns).

Making substantial money from "shares" isnt about luck (although of course it can be) - just as making money from RE isnt about luck. Its about leverage, length of holding, buying at sensible valuations, diversification, etc... (same principles).

 

[topcropper]

All very true Trog.

Wesfarmers has hardly been a high flyer in recent times, however what makes the above story even better, is that when that story was written, WES was $28. Now it's $37.80, and it has paid $4.65 in dividends 100% fully franked and capital returns since that story. Probably equivalent to $43 or so.

I hold WES.

See ya's.

 

[Brenda Irwin]

Making substantial money from "shares" isnt about luck (although of course it can be) - just as making money from RE isnt about luck. Its about leverage, length of holding, buying at sensible valuations, diversification, etc... (same principles).

So, like property and rent returns, you would looks for shares with a good regular dividend?

 

[The Y-man]

'When Alf Jenkins died at the age of 94, most people believed he was a man of modest means.......'
Nice story.

See ya's.

Nice story topcropper, but I guess the only lingering thought I had in my mind was "could he have spent more on himslef". It was nice for the neighbours to get some of the wealth, and maybe old Alf was quite content with the way he lived.

Cheers,

The Y-man