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Hi all, just wondering what peoples opinions are of the low price/sales ratio type trading strategy detailed in the James O'Shaugnesy book "How to Retire Rich". Corny tilte but some interesting ideas I think.
How to Retire Rich
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Re: How to retire rich..
I never figured out why any of those "how to get rich" books even exist. They all fail miserably as none of them actually contain a true guide as to how to do things. They all come up with vague ideas but never to the point where you can actually benefit from them. The only reason these books are out there is to finally make the writer some money instead of paper wealth.
It should be clear by now that there are no magic formulas to make lots of money in the market. The conditions change daily and nobody on this planet can produce a strategy that works in all of those conditions. There is no point in reading those books, nor is there a point in visiting those seminars they advertise in the newspapes. You will only ever get rich by finding your own strategy that fits your way of life, your budget and your risk strategy. Making money is extremly hard work. No matter if you work as a plumber or as an investor. There is no such thing as getting rich overnight. It happens, but there is no general rule as to how it's done. I'd say it's 99% luck to invest into a cheap stock that turns into gold after you bought it. The other way is the Buffet way but that's not a get rich quick thing. He got rich the old fashioned way by working hard, doing a lot of research and trading his shares very professionally. It took him years and years to build his empire.
Have a look at all these people who are apparently rich because they own 10 or more properties. What do they really own? Are they really millionairs? Or do they just have a deposit and 100s of 1000s of $$$$ in depts? Take my bet that we will see hundreds and thousands of these guys going down the drain as the housing market turns south. There was a mother and daughter story once on a current affair. They had more than 50 properties and were considered millionairs. It's been strangely quiet as far as these kind of stories are concerned these days. No more TV stuff. They are all long gone because the banks stepped in as soon as interest rates went up.
It's quite a different story to actually be rich because you have a lot of money, or being rich because you "own" a lot of things that don't really belong to you.
I admire people like Warren Buffet who actually created something and got to the stage where money is no longer an issue. Go and buy his books. They are not quite as popluar because they don't show you how to get rich in 30 days. They show you how to REALLY make some money and they don't promise you the earth. YOU have to do some hard work first. Nobody will help you with it.
Money tends to move away from you. All you have to do is find your way to keep it at your side. Go and read some serious stuff. Once you learned the real trade, you can always have a look at those other funny ways.
I know it's not the answer you've been looking for. But it's the truth. Oh, well. The truth has never been popular anyway... ;-) I've learned it the hard way myself.
Happy trading
I never figured out why any of those "how to get rich" books even exist. They all fail miserably as none of them actually contain a true guide as to how to do things. They all come up with vague ideas but never to the point where you can actually benefit from them. The only reason these books are out there is to finally make the writer some money instead of paper wealth.
It should be clear by now that there are no magic formulas to make lots of money in the market. The conditions change daily and nobody on this planet can produce a strategy that works in all of those conditions. There is no point in reading those books, nor is there a point in visiting those seminars they advertise in the newspapes. You will only ever get rich by finding your own strategy that fits your way of life, your budget and your risk strategy. Making money is extremly hard work. No matter if you work as a plumber or as an investor. There is no such thing as getting rich overnight. It happens, but there is no general rule as to how it's done. I'd say it's 99% luck to invest into a cheap stock that turns into gold after you bought it. The other way is the Buffet way but that's not a get rich quick thing. He got rich the old fashioned way by working hard, doing a lot of research and trading his shares very professionally. It took him years and years to build his empire.
Have a look at all these people who are apparently rich because they own 10 or more properties. What do they really own? Are they really millionairs? Or do they just have a deposit and 100s of 1000s of $$$$ in depts? Take my bet that we will see hundreds and thousands of these guys going down the drain as the housing market turns south. There was a mother and daughter story once on a current affair. They had more than 50 properties and were considered millionairs. It's been strangely quiet as far as these kind of stories are concerned these days. No more TV stuff. They are all long gone because the banks stepped in as soon as interest rates went up.
It's quite a different story to actually be rich because you have a lot of money, or being rich because you "own" a lot of things that don't really belong to you.
I admire people like Warren Buffet who actually created something and got to the stage where money is no longer an issue. Go and buy his books. They are not quite as popluar because they don't show you how to get rich in 30 days. They show you how to REALLY make some money and they don't promise you the earth. YOU have to do some hard work first. Nobody will help you with it.
Money tends to move away from you. All you have to do is find your way to keep it at your side. Go and read some serious stuff. Once you learned the real trade, you can always have a look at those other funny ways.
I know it's not the answer you've been looking for. But it's the truth. Oh, well. The truth has never been popular anyway... ;-) I've learned it the hard way myself.
Happy trading
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Re: How to retire rich..
Your points are well noted but i was actually wondering if anyone had actually used the strategy's outlined in the book to any extent ie: buy a dollars worth of shares for less than a dollar and stocks that had good 52 week runs ,and if so were the results similar to the historical results given.
Your points are well noted but i was actually wondering if anyone had actually used the strategy's outlined in the book to any extent ie: buy a dollars worth of shares for less than a dollar and stocks that had good 52 week runs ,and if so were the results similar to the historical results given.
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Re: How to retire rich..
Hi Hoobadriver,
personally i like Robert Kiyosaki's books, many of them are very repititive, but majority of what ive learnt has been simulated, and started off from some of his basic and simple ideas he gives...
i think its a great starter to read, and that also any parent who is concern about there child's financial future should give it a quick read, and see it from a rich persons angle...
Cheers,
sis
Hi Hoobadriver,
personally i like Robert Kiyosaki's books, many of them are very repititive, but majority of what ive learnt has been simulated, and started off from some of his basic and simple ideas he gives...
i think its a great starter to read, and that also any parent who is concern about there child's financial future should give it a quick read, and see it from a rich persons angle...
Cheers,
sis
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Re: How to retire rich..
I have read the Kiyosaki saga's and it is quite good i thiink for changing peoples perspective on investing for retirement, and i have also played the cashflow 101 game , quite fun actually. As for the, How to Retire Rich book , this one is written by James O'Shaughnessy....has anybody read this one?
I have read the Kiyosaki saga's and it is quite good i thiink for changing peoples perspective on investing for retirement, and i have also played the cashflow 101 game , quite fun actually. As for the, How to Retire Rich book , this one is written by James O'Shaughnessy....has anybody read this one?
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Re: How to retire rich..
Especially those who just went out and spent the $600 they got from the government on a funky TV. I can't wait to see what happens once they start paying the $3000 baby bonus...
Happy trading
Stefan
Especially those who just went out and spent the $600 they got from the government on a funky TV. I can't wait to see what happens once they start paying the $3000 baby bonus...
Happy trading
Stefan
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Re: How to retire rich..
If you are so negative about the strategy than you won't get much out of it.
Try to take in as much as possible and implement it according to your situation.
I think any strategies or books are good strategies/books as long as you implement or read it with open mind.
If you are so negative about the strategy than you won't get much out of it.
Try to take in as much as possible and implement it according to your situation.
Re: How to retire rich..
I have a contrarian view when stocks go down too much too quickly. Burns Philp got down to about 5 cents not long ago, QBE Insurance collapsed with HIH a few years ago and now is over $12. Aristocat took a tumble last year and have improved over 300% .At the moment ERG at 27 cents has been oversold and NAB at $26 is definately a buy .Contrarian purchases don,t always work but I think they give you a upper hand with share trading . Mind you you do need to do a bit of homework as a penny dreadful sliding ,can continue sliding into oblivion .
I have a contrarian view when stocks go down too much too quickly. Burns Philp got down to about 5 cents not long ago, QBE Insurance collapsed with HIH a few years ago and now is over $12. Aristocat took a tumble last year and have improved over 300% .At the moment ERG at 27 cents has been oversold and NAB at $26 is definately a buy .Contrarian purchases don,t always work but I think they give you a upper hand with share trading . Mind you you do need to do a bit of homework as a penny dreadful sliding ,can continue sliding into oblivion .
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Re: How to retire rich..
kooka,
I agree. There is lots of potential in those buys. But you have to be up to speed with the stock you consider buying when it drops. I tend to do the same with the stocks I'm watching. If you follow them closely you will be able to spot those bargain levels. If you know what's behind a company, you won't have much trouble buying them when they represent value for money.
Happy trading
Stefan
kooka,
I agree. There is lots of potential in those buys. But you have to be up to speed with the stock you consider buying when it drops. I tend to do the same with the stocks I'm watching. If you follow them closely you will be able to spot those bargain levels. If you know what's behind a company, you won't have much trouble buying them when they represent value for money.
Happy trading
Stefan
So you could get rich selling books to poor people telling them how to get rich?
At the very last page say “And if all else fails write a book about getting rich, it worked for me”
It’s a bit like betting programs (Horses and the stock market) if they worked you wouldn’t share it around because by doing so would change the rules that made it work in the first place.
I’m not rich but one great saying goes along the lines of greed and fear moves the market and how true this is, so my tip is conquer your fears and don’t be too greedy.
TG
At the very last page say “And if all else fails write a book about getting rich, it worked for me”
It’s a bit like betting programs (Horses and the stock market) if they worked you wouldn’t share it around because by doing so would change the rules that made it work in the first place.
I’m not rich but one great saying goes along the lines of greed and fear moves the market and how true this is, so my tip is conquer your fears and don’t be too greedy.
TG
Re: How to retire rich..
Couldn,t agree more Top Gun , I learnt that the hard way in 1987. I am now more cautious , take a profit and leave some for the next person, rather than trying to milk every transaction to its maximum . That way you are not kicking yourself for not buying at the lowest price and also not kicking yourself for not selling at the ultimate price . You only end up with sore shins , and become the ultimate procrastinator , Regards KOOKA
Couldn,t agree more Top Gun , I learnt that the hard way in 1987. I am now more cautious , take a profit and leave some for the next person, rather than trying to milk every transaction to its maximum . That way you are not kicking yourself for not buying at the lowest price and also not kicking yourself for not selling at the ultimate price . You only end up with sore shins , and become the ultimate procrastinator , Regards KOOKA
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Re: How to retire rich..
I haven't read the book "How to retire Rich" - but have read the RK series and learnt from them.
Another book I'm keen on - takes less than an hour to read - "Who Moved my Cheese" and another one "Fish" - both for self thinking rather than money motivation - but looking at being a better person.
When I read the thread title, my reaction was "Nothing posted since August - has hoobadriver made it?!!!!!!"
Personally, I think retiring happy, contented and healthy, having achieved some lifes dreams is far more important. We place too much emphasis on riches, when we really only need enough to live comfortably.
On that note - I'm off to bed!!!!
Cheers all.
I haven't read the book "How to retire Rich" - but have read the RK series and learnt from them.
Another book I'm keen on - takes less than an hour to read - "Who Moved my Cheese" and another one "Fish" - both for self thinking rather than money motivation - but looking at being a better person.
When I read the thread title, my reaction was "Nothing posted since August - has hoobadriver made it?!!!!!!"
Personally, I think retiring happy, contented and healthy, having achieved some lifes dreams is far more important. We place too much emphasis on riches, when we really only need enough to live comfortably.
On that note - I'm off to bed!!!!
Cheers all.
RichKid
PlanYourTrade > TradeYourPlan
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Re: How to retire rich..
'Richest man in Babylon' has some simple points communicated in an easy manner. Things like living below your level of income and spending on needs first and then saving as much as possible without giving into wants until you can afford it. etc etc Doesn't tell you exactly how to do it though.
'Richest man in Babylon' has some simple points communicated in an easy manner. Things like living below your level of income and spending on needs first and then saving as much as possible without giving into wants until you can afford it. etc etc Doesn't tell you exactly how to do it though.
tech/a
No Ordinary Duck
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Re: How to retire rich..
Whats Rich?
When your in a position to retire,I dont think many would take that option.
Rather a cut back in things and an uptake in activities we no longer put on the backburner but move them to the front.
Im 51 and I look at my kids 21,18 look at my older friends and Mum and Dad
(Glad I can do that--- as seems my gene pool has longevity) and realise that my time on this planet is terribly short---no way am I looking back and saying I wish I had done that!
The BIGGEST obstical to creating REAL wealth is.
Having the Kahunas to take WHAT OTHERS percieve as RISK
Look around and youll see 1000s who saw the Tech boom and did nothing,Saw Property Booms (Ive seen 3 and taken part in 2)Saw/watch the continual Bull run of the stock market and do NOTHING.
Their the ones who constantly moan doom and gloom,the perenial contrarians.
Only too pleased to tell you how youll lose every single cent that you have accumulated doing exactly what they WISH they had done.
Have the Kahunas to take WHAT OTHERS percieve as RISK :bier:
Latest best book Ive read (I read 100s) "Dont Sign anything"
Whats Rich?
When your in a position to retire,I dont think many would take that option.
Rather a cut back in things and an uptake in activities we no longer put on the backburner but move them to the front.
Im 51 and I look at my kids 21,18 look at my older friends and Mum and Dad
(Glad I can do that--- as seems my gene pool has longevity) and realise that my time on this planet is terribly short---no way am I looking back and saying I wish I had done that!
The BIGGEST obstical to creating REAL wealth is.
Having the Kahunas to take WHAT OTHERS percieve as RISK
Look around and youll see 1000s who saw the Tech boom and did nothing,Saw Property Booms (Ive seen 3 and taken part in 2)Saw/watch the continual Bull run of the stock market and do NOTHING.
Their the ones who constantly moan doom and gloom,the perenial contrarians.
Only too pleased to tell you how youll lose every single cent that you have accumulated doing exactly what they WISH they had done.
Have the Kahunas to take WHAT OTHERS percieve as RISK :bier:
Latest best book Ive read (I read 100s) "Dont Sign anything"
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Re: How to retire rich..
Agree tech/A.
I'm 51 too - and similar position
Kids 25,23 & 21 - and one very ancient mum!! (90 next year) (My dad didn't make it to real old age)
Rich is just a perception indeed, and quality of life is the answer.
Here's to the Kahunas!!!
Agree tech/A.
I'm 51 too - and similar position
Kids 25,23 & 21 - and one very ancient mum!! (90 next year) (My dad didn't make it to real old age)
Rich is just a perception indeed, and quality of life is the answer.
Here's to the Kahunas!!!
Re: How to retire rich..
The secret to money is success... the secret to success is good character... If you have good character the pieces just fall together and you get money, girls, a nice house and whatever... Took me a year to figure this one out but But it requires alot of personal development that a lot of people don't want to go through... Get some self help books or something.
The secret to money is success... the secret to success is good character... If you have good character the pieces just fall together and you get money, girls, a nice house and whatever... Took me a year to figure this one out but But it requires alot of personal development that a lot of people don't want to go through... Get some self help books or something.
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Re: How to retire rich..
"Rich" is a relative term.
But I suppose that most people's goal would be to be able to generate enough income in retirement to maintain the lifestyle they had when they were working.
Some reach that goal earlier than others and some might never reach it at all.
Most build nett wealth through various strategies during their lives and imo, based on my experience, one of the best ways to contribute to nett wealth creation is superannuation - especially now that benefits will be tax free after you reach 60.
The earlier you start and the longer you keep making contributions the more amazed you will be in the long term at how quickly your super can build - especially if you also have employer and salary sacrifice contrinutions piling in.
Super isn't the be all, end all of wealth creation but it should result in a very nice bonus nest-egg at the pointy end of your life on top of any other investments and assets you built up over the years.
"Rich" is a relative term.
But I suppose that most people's goal would be to be able to generate enough income in retirement to maintain the lifestyle they had when they were working.
Some reach that goal earlier than others and some might never reach it at all.
Most build nett wealth through various strategies during their lives and imo, based on my experience, one of the best ways to contribute to nett wealth creation is superannuation - especially now that benefits will be tax free after you reach 60.
The earlier you start and the longer you keep making contributions the more amazed you will be in the long term at how quickly your super can build - especially if you also have employer and salary sacrifice contrinutions piling in.
Super isn't the be all, end all of wealth creation but it should result in a very nice bonus nest-egg at the pointy end of your life on top of any other investments and assets you built up over the years.
bigdog
Retired many years ago
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Re: How to retire rich..
Wilma,
How do I create a new Forum?
Wilma,
How do I create a new Forum?
