The Exceptional Wealth Accumulation Ideas and Thinking Thread

wayneL said:

And a flipping pizza joint on the north side.

It used to piss me off to drive all the way from Wandina to (I can't remember the suburb, but across the road from Bunnings) to wait 45 minutes get a lousy pizza...

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well well well ,

the pizza,s are still lousy there .......... the suburb is wonthella

pizza joints galore now m8 .. even got wood fired ones


still no licensed brothels tho ................ see theres a million bucks right there !

The word is that everyone is shedding debt, cash is king, etc etc.

A contrary investor might say its a good time to borrow; borrow long and deep and buy hard?

Curiously I've just sold my house on acreage for more than I ever expected, more than I was even asking for it, essentially because in a flat market nobody was buying and I had to get inventive. My estate agent was too slack to negotiate or think laterally. After negotiating directly with interested buyers we eventually swapped the property for a higher value IP in a city and am now renting elsewhere as I look around for my next opportunity. Swapping meant we didn't have to negotiate lower property values, and the high value sale meant I could increase my credit limit.

I don't qualify as an exceptional investor by any means, but Tech has a point about looking around for opportunities that others miss.

There is endless opportunity if you know how to take on Leverage WITHOUT Excessive and often very quickly NO RISK.

It appears that this---the most important characteristic of all for exceptional investment either escapes most or isn't understood.

The PERCEPTION is indelibly tattooed into peoples psyche particularly those here who are on this and no doubt other boards searching for answers.---Exceptional Investment--exceptional Risk.

I would have thought there would have been some PRACTICAL APPLICATION of risk strategies in a discussion like this.

No discussion--no experience then!

Is this tech/a becoming fundamental/a?

The roads to wall street is lined with the bodies of people that were right too soon. The price you pay for the potential upside of fundamental positions is the opportunity cost you have to wear along the way.

That's not to say it's impossible, but it does mean you need to adjust position sizes accordingly.

tech/a said:

No discussion--no experience then!

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This whole thread sounds to me as though you want us to beg you to show us the way. You obviously think you know, but enjoy being the centre of attention so dont actually want to share your own thoughts. You were the thread starter, why not kick off the discussion you so crave?

tech/a said:

I would have thought there would have been some PRACTICAL APPLICATION of risk strategies in a discussion like this.

No discussion--no experience then!

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Not cessanarily Tech. I suspect most like to hold their cards close to their chest. Not everybody wants to be a guru.

doctorj said:

Is this tech/a becoming fundamental/a?

The roads to wall street is lined with the bodies of people that were right too soon. The price you pay for the potential upside of fundamental positions is the opportunity cost you have to wear along the way.

That's not to say it's impossible, but it does mean you need to adjust position sizes accordingly.

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Doc.
Exactly my point.Not placing yourself in a position of becoming a statistic.Surely there are people out there who have found how to do it---in their own way---and are posters here? (Stock Market or other wise.).

prawn_86 said:

This whole thread sounds to me as though you want us to beg you to show us the way. You obviously think you know, but enjoy being the centre of attention so dont actually want to share your own thoughts. You were the thread starter, why not kick off the discussion you so crave?

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No I'm looking for discussion.
I have eliminated risk in my own areas of interest but am more interested in seeing what others have done or are doing.
There are over 25,000 members I'd have thought there would be a few in on the topic.
If I was simply interested in seeing my own stuff I would have just posted it up.

wayneL said:

Not cessanarily Tech. I suspect most like to hold their cards close to their chest. Not everybody wants to be a guru.

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Typical.
My observation is from evidence presented.

While I feel its possible to have exceptional results from deminished or zero risk techniques I feel the real Exceptional Wealth Accumulation Strategies require a larger initial capital--- not however beyond Joe average.

There are certaintly things that hindsite has taught could have been done better---even if at the time they seemed pretty good---and were pretty good!

If others dont have any working examples how about what you have learnt and HOW you'd go about it differently---I'm really interested in risk mitigation for larger Plays--Trading or other areas. Sure I have my own.But interested in other ideas.
Hence the thread.

tech/a said:

If others dont have any working examples how about what you have learnt and HOW you'd go about it differently---I'm really interested in risk mitigation for larger Plays--Trading or other areas. Sure I have my own.But interested in other ideas.
Hence the thread.

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Options are one way... on both stocks and property. In fact options (not lease options) are common in the real estate development arena. I'm sure you know that though.

In property you can make a de facto option contract via conditions clauses.

Just a couple of ideas to throw out there.

tech/a said:

Doc.
Exactly my point.Not placing yourself in a position of becoming a statistic.Surely there are people out there who have found how to do it---in their own way---and are posters here? (Stock Market or other wise.).

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There are obviously plenty of people that have.

I think the people that succeed are the ones that generally know something different (whether that is through inside knowledge, expertise that are not common or sheer hardwork and research) rather than the folk that try their hand at elevator analysis - this goes up therefore this should go down.

YT is a clear example of people that put in the hard yards and reap the benefits from a part of the market that isn't well understood.

I know numerous others that have made significant sums of money by taking their expertise to a part of the world that lacks it.

The trouble is most that have a significant fundamental edge are not likely to share it.

Doc

I agree re people like Bill Gates (Microsoft),Larry Page,Sergie Brins(Google),Mark Zuckerburg(Facebook),Jack Dorsey(Twitter).

But ordinary people like these guys who became extra ordinary---in fact Legendary---can have extraordinary results in their investing---compared to the general populace.

Luck has a tremendous part to play BUT even MORE important is being able to place yourself squarely in the face of "Luck" in a capacity and quantity which could be life changing when luck or good judgement strike.---In my view.

I have been fortunate enough to be involved in 2 such events.
(1) In Trading
(2) In Property

I wish to bring 4 examples to the board as food for thought and discussion---not for self acclaim.

2 related to equities trading One past example and a possible "Now Strategy"
Which will in my view be available to all at all times.

2 related to Property Investment One in the past and one Now.
Which in my view will be available at various times it is now in my area.

I wish to post all of these at the one time so as not to be distracted in the presentation of each. It will take a while as I want the examples and the Risk Management discussion from my side to be extensive.

Will be back in a while--could be a week.---bit of work in it.

I WAIT with baited breath, as I'm SURE are many others.

Good morning
T/A

Luck has a tremendous part to play BUT even MORE important is being able to place yourself squarely in the face of "Luck" in a capacity and quantity which could be life changing when luck or good judgement strike.

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You are 100% correct with that statement !

Too many people sit back and cry, your just lucky when they could have done the same thinking, if they had of WORKED HARD AT BEING LUCKY and never lost sight of the end target and potential.

Which results in the old saying, "the harder I work, the luckier I am", is true today as it was years ago.

Luck, I really think luck in most cases of business is something others think of as an excuss for not doing what the so callled lucky person did.

Kind regards,
UB

Uncle Barry said:

Good morning
T/A


You are 100% correct with that statement !

Too many people sit back and cry, your just lucky when they could have done the same thinking, if they had of WORKED HARD AT BEING LUCKY and never lost sight of the end target and potential.

Which results in the old saying, "the harder I work, the luckier I am", is true today as it was years ago.

Luck, I really think luck in most cases of business is something others think of as an excuss for not doing what the so callled lucky person did.

Kind regards,
UB

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I agree with "the harder I work, the luckier I am", and also the creed
"the smarter I work the luckier I become"

Important additions to the discussion and the examples will be.

(1) Risk mitigation and possible elimination.
(2) Leverage
(3) Compounding
(4) Time

tech/a said:

Doc

I agree re people like Bill Gates (Microsoft),Larry Page,Sergie Brins(Google),Mark Zuckerburg(Facebook),Jack Dorsey(Twitter).

But ordinary people like these guys who became extra ordinary---in fact Legendary---can have extraordinary results in their investing---compared to the general populace.

Luck has a tremendous part to play BUT even MORE important is being able to place yourself squarely in the face of "Luck" in a capacity and quantity which could be life changing when luck or good judgement strike.---In my view.

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Bill Gates was in the right place at the right time with the right influence. He was born in the right year for software developers.

It is all about special circumstances.

It was the same for Bill Joy of Sun Microsystems.

For trading the biggest threat is social decay and the growing groups that are against capitalism.

Just change your name to Bill and you'll be right

tech/a said:

Important additions to the discussion and the examples will be.

(1) Risk mitigation and possible elimination.
(2) Leverage
(3) Compounding
(4) Time

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(1) Agree, but there are only so much risks you can eliminate. That's why I previously had argued (in a long time ago thread) on multiple trading systems run by other professionals as well as your own. Like I said, I may have complete control if I put all my eggs in my own basket (i.e. trading systme), but I cannot eliminate my own personal risks.

(2) A must, with money and with other people's time.

(3) Most people totally underestimate the importance of this to build wealth. Anyone who can trade 10 times a day and still only make 1% out of it would generate EXTRAORDINARY wealth in merely 5 years through compounding alone. (especially in a tax free environment) And of course, reality is quite different, but nonetheless, it shows the power of compounding.

(4) This is a big one and it comes down to your perception of being successful. If you can only generate and maintain such exceptional wealth by working 70 hours a week nonstop, would you be willing to accept less wealth by working only 4 hours per week instead?

Automation is a fantastic thing, and almost every part of a business, if structured properly and in the right industry, can be fully automated. (P.S: Read 4 Hours Work Week if anyone hasn't already)

Of course, I also agree with Van Tharp's comment on that if you wish to be successful in any business, you should spend thousand of hours and be an expert with it. (especially trading) But does it mean you need to go along without a life in order to keep up the wealth generation? No, I don't think so.

Another comment on time is that I don't believe in generating exceptional wealth within an unrealistic timeframe. (i.e. a month or two) Let the compounding works for you over time and don't get suck in those potential opportunities you see on the market and hope to take full advantage of leverage to give you that ONE BIG WIN. For example, how anyone would wish they brought 100 contracts worth of gold and roll it over from $200 range and sold it at $1000. Or how they wished they could have short sold oil futures when it collapsed from $140 to $40, or long them from $40 to $70. Don't get too "put off" by missing these opportunities because they wouldn't be the one that make you the wealth.

It's the slow, systematic accumulation of wealth that works over time.

It's Snake Pliskin said:

Bill Gates was in the right place at the right time with the right influence. He was born in the right year for software developers.

It is all about special circumstances.

It was the same for Bill Joy of Sun Microsystems.

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Yes a perfect example of missing the whole story to push just one point.

Lots of people are as smart as the Bills and done just as much work, even better work, But failed.

survivorship bias

And variance, but then humans are typically results-oriented.

While spending a little time on the topic last night I need to add another ingredient.


(1) Risk mitigation and possible elimination.
(2) Leverage
(3) Compounding
(4) Duplication
(5) Time