The KISS principle - my take on applying it to property investing

[TheMarket]

Hi China

As with many things on the forum at the moment , IMHO , you are missing the point .

That book contains simple commonsence advice which is timeless. Along the lines of

• The richest man in babalon
• How to win friends and influence people
• Who moved my cheese

That book has absolutely nothing to do with social media and has everything to do with the spending habits of Gen Y and why some will become wealthy and most won't .

Just because it was written in the 90's and the research might be outdated , it is actually fairly unique in this area that it does have research , and unlike most isn't just based on opinion. But that just my opinion .

Cliff

+1 Timeless advices and wisdom doesn't age with time ... but fashion do...

A part of all I earned is mine to keep it relevant in 1929, still relevant today and 100 years from now.

Nothing wrong with millionaire next door advice you to spend less than you earn and
education is important but don't send your kids to expensive private school if you cant afford it...

you see lot of fashion on the stock market, what's the next big thing...
new valuation method, new paradigm but the good old fashion of buy
business with strong balance sheet, good cash flow always delivered exceptional return and all the fabs and fashion disappear just as fast as they come on to the scene...

Before GFC bankers was touting business with little debt and strong cash flow as lazy balance sheet then came GFC the debt laden business went belly up these guys capture all market shares and came out twice as strong...

Debt laden properties investors with heavy negative gear properties will feel the same heat when the time comes when they may be out of a job or salary drop and asset price dropping.

Nothing lazy about running a robust business with little debt, strong cash flow and high rate of return..

I haven't seen the lazy balance sheet fashion since GFC ...but like all fashion they will be back at some point in time ....

 

[BayView]

This landmark book is about two decades old and I think it is due for an update. Originally published in 1996, we are talking about research that pre-dates widespread use of internet.

For example, it does not take into account recent developments such as social media billiionaires - Zuckerberg and friends nor the rise of other online billionaire moguls.

It does not talk about the adult spending habits of Gen Y - born in the late 80s and beyond.

Otherwise, a good historical snapshot of moderately wealthy people in the early 90s.

no matter what date in time, the investment vehicle, business or Internet invention that might make you Uber-rich, at the end of the day the basic rule is more money in than money out.

The whole point of Richest Man in Babylon - which you've missed - is that back then, as now; good financial knowledge and money management/habits never go out of fashion.

 

[china]

no matter what dat in time, the investment vehicle, business or Internet invention that might make you Uber-rich, at the end of the day the basic rule is more money in than money out.

The whole point of Richest Man in Babylon - which you've missed - is that back then, as now; good financial knowledge and money management/habits never go out of fashion.

It is much easier to control money out than to increase money in. And the methods to increase "money in" have changed over the decades. Generating massive passive income via the internet was not possible forty years ago.

 

[austini]

Hi China, As with many things on the forum at the moment , IMHO , you are missing the point . ... Cliff

ain't that the truth!

 

[BayView]

It is much easier to control money out than to increase money in. And the methods to increase "money in" have changed over the decades. Generating massive passive income via the internet was not possible forty years ago.

you need to re-read "Richest Man in Babylon" again...or have you not read it yet?

It's not about the vehicle to wealth, or volumes of wealth that can be generated, it's about the principles of accumulating money from what you already earn and then go from there.

 

[Aaron_C]

It is much easier to control money out than to increase money in. And the methods to increase "money in" have changed over the decades. Generating massive passive income via the internet was not possible forty years ago.

I don't know china. After today's auction results in Melbourne, I think I've made far more money in more easily than controlling it out. Bought my Richmond site for $2,600 per sqm. Today a neighbouring site sold for $5,000 per sqm. Same thing happened in other suburbs I own property in.

 

[china]

I don't know china. After today's auction results in Melbourne, I think I've made far more money in more easily than controlling it out. Bought my Richmond site for $2,600 per sqm. Today a neighbouring site sold for $5,000 per sqm. Same thing happened in other suburbs I own property in.

Well done Aaron.