What sets you apart from the RE whales?

[sash]

Agree with the "douchebag" comment....afew ******s who earn this sort of money. Finance to hilt.....old story of Big Hat no cattle applies...

The proceed to look down on you ...till one of your mates of work tells them they you worth a couple of million.

Hey Deltaberry,

I don't know your story, so have no reason to doubt you. Though I am curious to know, why would you say that someone who earns 600K a year is a "douchebag" for thinking they've made it big. Sure it may not be BIG in comparison to someone who can sit back and do this without even getting out of bed in the mornings, but it's still pretty damn good in IMO.

 

[sash]

See my comments below.....

Great post.

I focus on 3 things
1. Mindset (keep intention focused on what I want and clarity on my goals) Agree!
2. Environment - getting around the right people. You can't fly with the eagles if you are scratching with the turkeys. I surround myself with millionaires on a daily basis. Hmmm....lots of people who claim they are millionaires ...trouble is some of them are so indebted they are not NET millionaires...becareful of the company you keep. Eagle might turn out to be Shyster.
3. Strategies - this I can outsource to others who are better than me. The above 2 cannot be outsourced.

Disagree....strategies is nt something you can outsource...it is routine stuff you can outsource....stay close your strategy and manage its execution.

 

[BayView]

Had a friend who just quit his $300k job at 25 to go and try make $50m+ in a few years (as usual the 'not thinking so big' people here would think I'm making stuff up again)...

The irony there is if he is 25 earning $300k he would be able to utilise his income and stay at his job and still make the $50mill with it.

Well, I know I would.

 

[Melbournian]

The irony there is if he is 25 earning $300k he would be able to utilise his income and stay at his job and still make the $50mill with it.

Well, I know I would.

Not if you're working till 2-3am in the morning everyday.
You're probably be too tired to do anything but sleep. These bankers earn a lot but also trade a lot of their personal time.

 

[BayView]

Not if you're working till 2-3am in the morning everyday.
You're probably be too tired to do anything but sleep. These bankers earn a lot but also trade a lot of their personal time.

He should try having young kids and get a good night's sleep. There's a challenge.

Researching to buy a property wouldn't need to take more than an hour of your day every day, no matter what your job. We are all busy, but it's a matter of committing to make the time I guess.

On $300k you could realistically keep racking up the cheapies with a 50% deposit at the rate of a lazy two per year, not even stretch the budget at all. It'd be a doddle.

In 5 years he'd have 10, without even trying too hard, then start using the considerable tax advantages and income to get serious.

 

[willair]

Fear (risk aversion)
Opportunities
Contacts/networks



Of course there is no right or wrong answer, as we all know wealth/success is as subjective as the journey itself. This is just a bit of brain food / fun!

Very simple i put it all down to being a misfit in todays world,and trying to see all sides to a story from every angle,or you can walk down any street in the world and see nothing,or can you can walk down the same street and see everything,just wathing the Sun come up each morning and know that i don't have to do anything and everything is ticking away day in day out is all i ever wanted..

 

[cu@thetop]

How do YOU differ from the big players (the RE whales)?

I am fatter then most if the whales- and they have more money then me.

On a side note- I watched the evolution of a now millionaire self made client. He got his money without screwing anyone over. He is now wealthy but I see that he is changing to a more self centred individual. Does wealth corrupt or change people for the "worse".

 

[Intrinsic_Value]

Got it, lack of reliable financiers!!!!

Ditch him and get someone who is professional and on the ball/money!

There are periods in time where the financier will politely show you the door.

If one wants the debt then look at an asset class where lenders ARE happy to lend. Its not always property.

At the moment i am getting finance for equity (share) purchases cheaper than i am for my residential property.

 

[Intrinsic_Value]

I was not being tongue in cheek. I learnt the best PE's with the highest growth prospects v price end up if you buy them have a high propensity of releasing information to the negative and pretty soon after the reason it was "value" is apparent. i.e. the thing you don't know but some do comes out.

My shitter insurer was Reinsurance Australia Ltd. Killed first by the Sydney hail stones, thats when I got in when they still had the ability to be an insurer etc and then the Paris Storms around Christmas 2000 finished them off... well after a few months languishing anyway. Nearly got out for a profit even after the storms when the directors said to the market basically >> in response to the recent share price slide we can only think it would be the impact from the paris storms....

People were buying in like crazy on this announcement and then they announced about two weeks later the impact from the paris storms. It meant they were downgraded to the point they could no longer be an insurer.

Anyway the best part about owning a reinsurer is even if you are a bit of a logic first feelings second kind of guy every time you see a plane crash in South America etc you can sit there and look devastated and when you tell the missus oh thats terrible they think you are being compassionate for all the worlds troubles...

Diversification my dear watson.

Plus a little hint, look at the overall state of the market.

Bear market: lots of opportunities: dont worry about the charts, everyone is running scared.

Neutral market: look at the sector, is it 'loved, hated, or just boring'. Just boring is the best.

Bull market: a negative chart:, unless the sector is hated or boring, better be careful.

Just a general observation, and obviously will be many individual exceptions.

Another general observation: it will be extremely rare than the success rate in choosing stocks will be 100%. For the good players they can create a decent performance from around a 40-50% success rate in picking stocks. why????

 

[tom32]

Another general observation: it will be extremely rare than the success rate in choosing stocks will be 100%. For the good players they can create a decent performance from around a 40-50% success rate in picking stocks. why????

Cheers for the advice.

On why you can win less than 50% of the time and still come out ahead, I think it is probably best said by Kenny Rogers;

If your gonna play the game, boy, ya gotta learn to play it right

You gotta know when to hold em, know when to fold em,
Know when to walk away and know when to run.




Just like in Poker you only have to win on a few hands as long as you know which hands to hold and which to fold. You still can come out well in front even not winning your share of hands.

Trouble is where Poker is probability and chance, hence not rigged where in Poker you have the same information as the other players (well not their hands clearly) you are all on an even footing.

On the stock market people know more than you know, and don't tell the market. Look at Leightons the other day? As if their would not have been people who knew that doosy was about to drop???

The sad thing is there are more cheaters at the stock market than at the poker table...

 

[Deltaberry]

Diversification my dear watson.

Plus a little hint, look at the overall state of the market.

Bear market: lots of opportunities: dont worry about the charts, everyone is running scared.

Neutral market: look at the sector, is it 'loved, hated, or just boring'. Just boring is the best.

Bull market: a negative chart:, unless the sector is hated or boring, better be careful.

Just a general observation, and obviously will be many individual exceptions.

Another general observation: it will be extremely rare than the success rate in choosing stocks will be 100%. For the good players they can create a decent performance from around a 40-50% success rate in picking stocks. why????

Your odds as a retail investor are close to negligible the moment you start. I'd imagine most punters here get in at 50th floors as I like to call it. While not everyone can get in at ground floor, you'd like to get in at 2nd floor.

 

[oracle]

Your odds as a retail investor are close to negligible the moment you start. I'd imagine most punters here get in at 50th floors as I like to call it. While not everyone can get in at ground floor, you'd like to get in at 2nd floor.

If that is the case and according to you the only way to make money is by being an institutional investor, how come majority of funds with millions/billions of dollars under management with access to information that retail investor never gets to see or gets to see when it's too late, fail to beat the index?

I think retail investor who put in the hard yards definitely can beat the index.

Cheers,
Oracle.

 

[Monopoly]

There are periods in time where the financier will politely show you the door.

Thankfully, the number of times I've turned to a financier have been few and far between, but regardless of it, If one wishes to show me the door, then I will graciously and with equal politeness accept his/her invitation to leave (and take my business elsewhere)!!

If one wants the debt then look at an asset class where lenders ARE happy to lend. Its not always property.

At the moment i am getting finance for equity (share) purchases cheaper than i am for my residential property.

Of course. Lending againist property will inevitably see the borrower come up against a brick wall (no pun intended) but that still doesn't mean you have to accept crap from any one lender!!

 

[Intrinsic_Value]

Cheers for the advice.

On why you can win less than 50% of the time and still come out ahead, I think it is probably best said by Kenny Rogers;

If your gonna play the game, boy, ya gotta learn to play it right

You gotta know when to hold em, know when to fold em,
Know when to walk away and know when to run.




Just like in Poker you only have to win on a few hands as long as you know which hands to hold and which to fold. You still can come out well in front even not winning your share of hands.

...

Yeah you will be fine

 

[Intrinsic_Value]

Your odds as a retail investor are close to negligible the moment you start. I'd imagine most punters here get in at 50th floors as I like to call it. While not everyone can get in at ground floor, you'd like to get in at 2nd floor.

Maybe not the second floor thats a bit ambitous, but i'm happy to hang around and wait until maybe a 10th floor is offered to me

 

[Intrinsic_Value]

If that is the case and according to you the only way to make money is by being an institutional investor, how come majority of funds with millions/billions of dollars under management with access to information that retail investor never gets to see or gets to see when it's too late, fail to beat the index?

I think retail investor who put in the hard yards definitely can beat the index.

Cheers,
Oracle.

In answer to the first part: because its not their money. They are selling a vision (a bit like some spruikers), reality and vision dont always mix.

In regards to your second paragraph: yes i agree 100%, i am doing it
(and from memory you are doing pretty well yourself)

 

[Piston Broke]

I'm an itty bitty fish in big pond with a nice little rock to hide under from which i can pull strings.

 

[InveSTAR]

Im not a whale yet.

 

[Deltaberry]

If that is the case and according to you the only way to make money is by being an institutional investor, how come majority of funds with millions/billions of dollars under management with access to information that retail investor never gets to see or gets to see when it's too late, fail to beat the index?

I think retail investor who put in the hard yards definitely can beat the index.

Cheers,
Oracle.

Because most major funds are required to hold certain stocks to balance their portfolio as they tailor for retail investors, and these stocks drag down their overall performance. Eg your superannuation fund would probably do that

The ones that make money and take big punts are the ones most here have never heard of. They have 5 people in the shop and manage say hundreds of m and this money probably come from 20-30 high net worth people/instos rather than 500,000 mum and dads' superannuation or insurance premiums, with limited investing restrictions or portfolio requirements

 

[willair]

They have 5 people in the shop and manage say hundreds of m and this money probably come from 20-30 high net worth people/instos rather than 500,000 mum and dads' superannuation or insurance premiums, with limited investing restrictions or portfolio requirements

Then it will be interesting to see what happens in the "FP"industry over the next 6 months when all that complain will be made to explain..
http://www.asic.gov.au/asic/asic.ns...ve profitable trading statements?opendocument