What is a successful investor?
- Thread starter Monopoly
- Start date
Maybe but you can't borrow against the bank and invest in a term deposit...
Besides have we included the rental yield on a property. 6% average capital growth + 4% yield = 10% yield.
At 80% gearing, assuming interest rates of 7%, net cost of interest is 5.6% (as a percentage of asset). So return is actually 4.4% pa (10% return on asset less 5.6% cost), but this is return on asset (and 80% of asset is your debt). So actual return on equity is 22% pa.
Can't achieve 22% return pa on your cash in a term deposit.
Two types...
The successful man investor and the successful woman investor...of which each definition follows.....
The successful man investor is the investor whose passive investments out yield what a woman can spend, and, the successful woman investor is the investor who can find that man!
The successful man investor and the successful woman investor...of which each definition follows.....
The successful man investor is the investor whose passive investments out yield what a woman can spend, and, the successful woman investor is the investor who can find that man!
Success is all about perception. It's nice to observe fellow investors as they recognise elements of their own success!
Cheers
Julie Mac
Cheers
Julie Mac
Hi, interesting.
There is a semantic definition to the word. So I challenge all who say that success is subjective. And that it is up to the individual to define.
Suppose I want to be a bum & I set my goals to be one. I become a bum.
Am I a success?
KY
There is a semantic definition to the word. So I challenge all who say that success is subjective. And that it is up to the individual to define.
Suppose I want to be a bum & I set my goals to be one. I become a bum.
Am I a success?
KY
If your goal was to be a bum and you achieve that goal then yes, you've been a success.
Anyone who is truly successful would not be concerned about the definitions of others.
you acheived your goal of being a bum but what is succesful about having gotten yourself to the stage of becoming a bum ?
if you were worse off and got to the stage of bum without fear of returning to the lower level,I think you might be entitled to personally feel succesful.
but to lower your abilty to have a better standard of living to be a bum, I don't think so.
to me succes makes me think of acheiving something, not did nothing and ended up in the obvious place (even if you do justify it with "this is what I wanted").
if you were worse off and got to the stage of bum without fear of returning to the lower level,I think you might be entitled to personally feel succesful.
but to lower your abilty to have a better standard of living to be a bum, I don't think so.
to me succes makes me think of acheiving something, not did nothing and ended up in the obvious place (even if you do justify it with "this is what I wanted").
Sure Kathryn. Then, in light of the orignal quesiotn (the context of the discussion), the GOAL then comes into question.
If my goal was to make $100 in 30 years of investing and then I bragged about being succesful, as an onlooker I would think a) he was succesful in his set goal b) as an invetsor he must be pretty **** ! and I have trouble seeing a **** investor as a succesful one
Your goal is set high enough to count, I'd like to get there too, although with a higher income otherwise I'd just rely on the govt pension and blow all my pay now. Id like to be able to affor dprivate health cover and pay for my needs wen unexpected things pop up and somehow I dont think 15k pa would do it, what would I eat if I had an emergency ?
If my goal was to make $100 in 30 years of investing and then I bragged about being succesful, as an onlooker I would think a) he was succesful in his set goal b) as an invetsor he must be pretty **** ! and I have trouble seeing a **** investor as a succesful one
Your goal is set high enough to count, I'd like to get there too, although with a higher income otherwise I'd just rely on the govt pension and blow all my pay now. Id like to be able to affor dprivate health cover and pay for my needs wen unexpected things pop up and somehow I dont think 15k pa would do it, what would I eat if I had an emergency ?
What is a successful investor?
Someone who didn't lock their money up in The Pyramid Building Society at 18% two days before it crashed in the early 90s.
Someone who did have their money in the Pyramid Building Society at 17.5% (still have the pen to prove it) and paid the final progress payment to the Builder, and closed the account, two days before it crashed.
Success comes easily when I remember that how I feel is more important than what others think.
Cheers
Julie Mac
Cheers
Julie Mac
Exactly right. All of the intellect is done up front setting the appropriate goal.
If your one goal this year is to get out of bed and flumix onto the couch, well, if you achieve that goal it ain't that remarkable.
I've seen kids diligently save up and save up all year, only to blow the lot on some cheap Chinese electronic gadget advertsied in some glossy brochure.
The vehicle was great, it had petrol in it, and the driver was concentrating. It's just that they decided to drive into a big ditch. When they achieved their goal, the only thing that happened was the car crashed into the ditch....some people would pat them on the back and say well done, good on you.
I'd probably pull them aside and start teaching them to set better goals before they do it again.....assuming of course they don't chuck a wobbly like most people tend to do nowadays when others have something to say other than "great stuff".
Two types...
The successful man investor and the successful woman investor...of which each definition follows.....
The successful man investor is the investor whose passive investments out yield what a woman can spend, and, the successful woman investor is the investor who can find that man!
Pure gold. As you can see from my avatar, I'm not wearing a hat.
That's because I've taken my hat of to your wisdom.
Financial Dictionary
investor definition
A person who purchases income-producing assets. An investor as opposed to a speculator usually considers safety of principal to be of primary importance. In addition, investors frequently purchase assets with the expectation of holding them for a longer period of time than speculators.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Guess that means a "successful" financial investor is someone that does this.
Cheers
Mick
But surely within their own context they are/were successful - they have their electronic wizardry, their high octane wheels etc.
The same with an investor. They set their goals (be it that others may judge those goals to be less than their own) and then go about achieving their goals. In their own eyes they are now successful investors.
Irrespective of how others view there success they remain successful.
Not so interesting conversation I had with some dude at the kitchen supply shop yesterday. Started talking as he mentioned something which led me to believe he did some developing. (which interests me)
Turned out that he had done one duplex development in partnership with his son development cost $800k and 3 years later his value is only $1mil (in my eyes he made nothing on his development). Apart from that he had PPOR and one other IP, all -ve geared.
Anyway in talking to him (more listening to what he had to say) he though he was the most successful investor/property developer since sliced bread. Bragged about having $50k passive income (he forgot about the servicing of the loan) and was unable to even see the slightest issues with his strategy.
In my estimation he was a very mediocre 'investor' and unlikely to do any further investing hardly a success story but in his eyes as I mentioned the biggest thing since sliced bread.
Cheers
