What is a successful investor?

[Dazz]

I understand what you are saying handyandy...and I think we are saying the same thing. Happy but deluded is still happy - so apparently that's OK. Deluded nonetheless.

In society however, people, intelligent people at least, judge / compare and improve accordingly. Every intelligent person does this hundreds of time every day. IMO this is a good thing, and the root cause of our evolvement and development. It's why we live together in large groups. I don't know too many successful hermits who never interact and never read about others accomplishments in newspapers, listen to the radio or watch TV.

Sitting in a humpy out in the desert being happy is not successful. Within your own context is meaningless.

Being deluded into thinking everything is just honky-dory when in fact it is very mediocre, if not pathetic, is not a sign of bliss. I guess I just don't buy into this whole theory of "whatever works for you is just great".

Lots of posters post about it on here and it is never challenged. It's too much effort to contradict for no benefit, so I just say nothing. Doesn't mean I agree with anything they are saying. But then - so what.

You could of banged on all day about the chap in your example handyandy, about how mediocre what he had achieved was, but then what's the point ?? He thinks he's a hero and you'll just make a pork chop out of yourself and an enemy for life if you say anything other than well done.

Mediocrity being praised as excellence out of self-deprecation, and excellence being ignored out of jealousy....it's the fashionable, popular and politically correct way to behave nowadays.

 

[topcropper]

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

Ha ha, good one.

Similar situations in a lot of ways, like I was one hell of a good share investor in Nov 2007.

Or I'm a pretty good investor when talking to some of my mates at the pub, but when I'm on here talking with Dazz and handyandy I'm somewhat humbled, ha ha.


See ya's.

 

[HiEquity]

Mediocrity being praised as excellence out of self-deprecation,

Hi Dazz

This is a tough one with kids. My view is there is a legitimate and IME practical use for regular praise when they are very young. But as they grow up I imagine a bit of art would be required to transition to reserving the praise for when it is really deserved and knowing when a metaphorical boot up the backside may yield better results.

and excellence being ignored out of jealousy....

This I don't understand. I guess I'm not sure it's necessarily jealousy. I'm sure for some it is but for most it would be like telling a mechanic they could be a brain surgeon if they wanted to. The path from one to the other is a long one, with many twists and turns required. It looks so complicated to those who aren't brain surgeons that most just say "I couldn't possibly..." and leave themselves unchallenged.

However, the brain surgeons know the path isn't easy and a fair few fall by the wayside but if they can do it anyone can!

According to something I read in the newspaper the other day, 15,000 people earn more than $700k per year in Australia. You could take the view that this is such a small proportion of the population it is unrealistic to aim that high. Or you could take the view that "if 15,000 people can do it in Australia alone...". Most would take the former view as it is the easier path and they know they won't be disappointed.

To me the key to that is fear of failure. The fear of failure is so prevalent in our society it paralyses not just individuals but corporations and governments as well. It also partly explains why it is such a faux pas to call someone a failure, even if they are. However, as you no doubt know, overcoming that fear can be one of the most rewarding achievements in life, partly because it is unfortunately so rare these days.


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Back to the topic - I reckon there is no such thing as a successful investor. I've never heard anyone who I reckon has done well out of investing refer to themselves in such a manner. Only plenty of spruikers. Success in this game is always just over the next hill, past the next deal, once the cashflow gets a bit bigger etc. A really successful investor is never content and can still see the potential if only... (insert XXXX).

Nothing wrong with that. Investing is a lifestyle and a drug - if you're any good at it you won't want to stop, although slowing down a bit and not betting the farm each time is no doubt quite acceptable after awhile...

 

[kathryn d]

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 ?

Jaycee,
You put too much value on a high income.I can outspend a high income just like the next person, but as I have "materially delayed gratification" myself for so long now (33 years in the work force), it is a way of life for me.

My co workers are very envious of me. The thought of living 8 months in Australia..and 4 months in Canada , to many is a dream come true.
(Australia is very much liked here)The thougt of us housesitting to "pay " for our travel accommodations, is considered to be resourceful. It is not a well used concept here....housesitting.

Personally, I couldn't care less if someone else thinks if I'm successful.I already know I am. Some people are just never satisfied.

The 15K you refer to,for us is our budget. It doesn't include our flights, as they will be tax deductible (80 %) If we had an emergency, we would just use our "other money", and delay buying another property that year

 

[jaycee]

So I prefer more money than you, where did I say that makes you unsuccesful in my eyes, I think I actually implied the opposite...Your goal is set high enough to count, I'd like to get there too

So, you aren't retiring on $15k pa... as you said.
you are retiring with much more but shuld only spend about $15k pa

gotcha now, I'm a bit slow.

Do you think you would normally in a normal year need to dip into this "other money" ?

 

[kathryn d]

Jaycee,
I don't know if we will need to dip into this "other money".
This will be our first time being retired, starting in Sept 2010.
I have tracked our spending for the past year and we average $1000 month for personal living.This does not include Xmas presents or car repairs, but this easily fall into the other $3000 pa.

 

[BayView]

Anyone who is truly successful would not be concerned about the definitions of others.

I don't agree with this.

People strive to become wealthy; to have big boats and a number of great houses around the world, luxury cars etc....why?

I would think that every one of these people are trying to prove themselves and gain satisfaction in getting to a high position (of materialism) in life, tomlive a nice existence and enjoy niced things that our modern life can provide.

Usually the material success comes as a result of being an expert in one field or another.

For an example, you could argue that doctors (and I know a number of them) become experts in their field simply because of passion to help people.

This may be true, but do you ever see doctors who are very successful living in a rented 2 bed apartment in somewhere like Doveton, and driving a clapped out Ford Escort? Not very often. As soon as they can, they are upgrading to better digs and ride.

Yes, there are the cases of the doc in the jungle giving freely of time and no pay to help the masses, but this is rare I would say. It would be intereswting to know if they do this their entire life.

It's pretty much human nature to want to improve, to be accepted by society, to live a nice life and "show off" how well you've done. We all do it in various ways.

Otherwise the concept of awards wouldn't exist. Mind you, we could live just fine without the bloody "industry" award tv specials from the USA that are so sickening and tacky...I'm not sure which ones are worse; the movie/tv ones or the music ones. Does anyone really watch them?.....sorry I digress.

No; they (the docs) display their wealth and success quite obviously in most cases because in all of us there is this need/want/desire to be seen as a successful person by the standards of the society we live in.

Someone who lives out in the boondocks in a humpy and collects the dole is not successful. They may say they are because they say they are "happy". I reckon they are talking BS.

They have run away from life for whatever reason in my opinion. Getting back to nature maybe? You can do that when you go camping, and still live in a mansion the rest of the time.

 

[Dazz]

Agree with everything you've said Marc.

 

[cu@thetop]

For an example, you could argue that doctors (and I know a number of them) become experts in their field simply because of passion to help people.

This may be true, but do you ever see doctors who are very successful living in a rented 2 bed apartment in somewhere like Doveton, and driving a clapped out Ford Escort? Not very often. As soon as they can, they are upgrading to better digs and ride.

Yes, there are the cases of the doc in the jungle giving freely of time and no pay to help the masses, but this is rare I would say. It would be intereswting to know if they do this their entire life.

Fred Hollows?

 

[BayView]

Fred Hollows?

You need to read the post more closely.

As I said;

"not very often".

My guess would be that 99% of them (and all experts in their chosen field making large sums from it) would be the ones who live well and enjoy the trappings of wealth.

Funnily enough; I did think of him as I was posting, and I know a few doctors and nurses who my wife worked with who from time to time get on a plane and go to the never-regions to do free work for the poor. A number of them went to Indo and Sri Lanka when the Tsunami hit.

But they always come back to Mt.Eliza, Frankston South, Hampton, Sandringham and other similar postcodes.

I think you'll find with Fred that he went to the jungle after he made his money and had set up the Fred Hollows Foundation? It would be hard to do it as he did if he was straight out of Med School and broke.

 

[steveadl]

Someone who lives out in the boondocks in a humpy and collects the dole is not successful. They may say they are because they say they are "happy". I reckon they are talking BS.

They have run away from life for whatever reason in my opinion. Getting back to nature maybe? You can do that when you go camping, and still live in a mansion the rest of the time.

So true - and as you referred to, you can be noble and charitable whilst still being wealthy. The two aren't mutually exclusive as some people like to convince themselves.