The Exceptional Wealth Accumulation Ideas and Thinking Thread

[tasmart]

Quote: Originally Posted by MRC & Co I see 5 pages, without one (sorry, there are a few, but not many) idea for the future. Funny considering the name of the thread: The Exceptional Wealth Accumulation Ideas and Thinking Thread. Where are the ideas and thinking behind them? I don't see any.

[skyQuake]

Buy an OzLotto ticket

1:45 Mil odds to win first division.

$90 Mil prize.

RR 2:1

GOOD TRADE!

[Frank D]

There is a difference between large profits and exceptional wealth.

The only way for main street to achieve exceptional wealth is
through 'compounding' via accumulation and investing.

I’m not seeing 'compounding' returns mentioned in this
thread.

If you can compound your returns at least 15% over the next
30-40years, then you’ll achieve exceptional wealth. And that's the trick.


Most of the posts in this thread are the usual:- "I traded this once, or I
know someone who did this once, or I traded this with ‘NO Risk’…"

NO risk trading….. I’ve heard that before, but sadly it doesn’t exist.

And sadly, no one is probably going to pick Gold going from $250 to
$1000, but they might take chunks out of the trend along the way. And I'm
not seeing too many masters of the universe in ASF.

I’ve read these types of posts many times before, which in the
context of the thread of achieving exceptional wealth mean little.

Once again large profits and exceptional wealth are two totally
different concepts.

A portion of Large profits should be moved into an area that has been set aside to acheive compounding growth over the long term.

Large profits should be used to increase ones own standard of living
'now', but it still doesn't mean that exceptional wealth will be acheived.

Just my thougths

[Aussiest]

Quote: Originally Posted by ojm Hindsight gets it right every time.

[Timmy]

Quote: Originally Posted by nunthewiser anyways on a side note once in a country city there was a nightclub area with no food available in 5 kms........ an opportunity sticking out like dogs nuts ......... stayed like that for 5 years! ....... then some bogan put a humble establishment outside nightclubs and killed the so called pig same city taxi plates and car . 150k . weekly take on said car average 3k ........ tax advantages too many too mention .do the maths same city same bogan used to sit on his front porch all redeyed and watching the port loading iron ore and building sheds and storage for a lil midwest iron ore co .....he thought wow there doing something here so he went and checked it out . same bogan poured all cash available and more into said unknown lil listed co and waited .......... waited , waited , waited .watched co grow FUNDAMENTALLY and as an actual bizzness silly bugga had over 50% of his stock portfolio in said co that he had watched grow from a seed returned 20 bags on the oppies and 12 on the mother stock moral of story is ...OPEN YA EYES have a look , grow some nuts and give it a go dont have to spend a million to make one amen

[Mr J]

Quote: Originally Posted by skyQuake Buy an OzLotto ticket 1:45 Mil odds to win first division. $90 Mil prize. RR 2:1 GOOD TRADE!

[tasmart]

Quote: Originally Posted by Frank D There is a difference between large profits and exceptional wealth. The only way for main street to achieve exceptional wealth is through 'compounding' via accumulation and investing. I’m not seeing 'compounding' returns mentioned in this thread. If you can compound your returns at least 15% over the next 30-40years, then you’ll achieve exceptional wealth. And that's the trick. Once again large profits and exceptional wealth are two totally different concepts. A portion of Large profits should be moved into an area that has been set aside to acheive compounding growth over the long term.

[Frank D]

Quote: Originally Posted by tasmart This is the critical part in a long term strategy - and the big difference.... Since I started looking at this 10 years ago I have attained an average of 22% annual growth in income assets (despite the last two years being negative)...

[Mr J]

Quote: Originally Posted by Frank D It's time to add value stocks at cheaper prices (accumulation), which is a big difference to 'trading' stocks. Sometimes traders can't seperate the two, therefore they don't employ 'wealth creation' via compounding returns over the long term.

[Frank D]

Take a portion of your profits, say between 10-20% per year and put
aside into a compounding strategy.

For example, buying banking stocks or any stocks that have a decent
div yield which helps increase the return over the long term. You don’t
need the cash for the div, take the extra shares

Then apply long term charts and BUY into major pullbacks each year.
This will help increase the return in the long run, as it allows you to
purchase more. And keep repeating the process every year.

Just make sure you’re not buying the ‘tops’ of the market, which is
easy to do if you don’t understand the Primary trends of the market.

It will take about 13 years for the strategy to kick into gear, but you’ll be
on your way after that.

That’s just an example for a long term compounding strategy, by using
a portion of trading profits or savings and investing and accumulating for
the long term.

For main street, the trick is accumulation, & not trading.

[Frank D]

Quote: Originally Posted by Mr J Are you suggesting that a shorterm trader should be making longterm investments? Is his trading not a longterm investment itself, compounding returns?

[Mr J]

That is good advice for some, but it's not something I would consider for myself at this point in time. In theory it sounds good - use unused portions of capital for capture some nice longterm growth. In reality - and I'm only speaking for myself - those long-term profits will be insignificant to the gains of my short-term trading, and time spent on the long-term strategy would be better spent (for me) on more short-term trading.

I also find long-term positions extremely inefficient, as there's no reason to be holding a stock during a pullback. If I'm going to be selling those pullbacks, then it becomes a medium-term strategy. I could argue the same about that medium-term strategy since I'm already in the markets every day; and now I'm back to short-term trading.

Compounding isn't an issue, as I'll compound no matter what timeframe I trade.

Quote: For main street, the trick is accumulation, & not trading.

[Frank D]

The thread reads:- exceptional Wealth accumulation.

One of the only proven methods of wealth creation is via
compounding returns.

$12,000 invested annually @ 11% compounding by 30th year is over
$ 2 million

by the 30th year it’s 4.5 mill

by the 40th year it’s 7.8 mill

7.8mill returning 6% yield is over 450k per year for doing nothing, but
simply starting a compounding strategy when you had the chance.

The sooner you start the better.

Quote: Originally Posted by Mr J those long-term profits will be insignificant to the gains of my short-term trading, and time spent on the long-term strategy would be better spent (for me) on more short-term trading.

[David123]

Quote: Originally Posted by nunthewiser anyways on a side note once in a country city there was a nightclub area with no food available in 5 kms........ an opportunity sticking out like dogs nuts ......... stayed like that for 5 years! ....... then some bogan put a humble establishment outside nightclubs and killed the so called pig same city taxi plates and car . 150k . weekly take on said car average 3k ........ tax advantages too many too mention .do the maths same city same bogan used to sit on his front porch all redeyed and watching the port loading iron ore and building sheds and storage for a lil midwest iron ore co .....he thought wow there doing something here so he went and checked it out . same bogan poured all cash available and more into said unknown lil listed co and waited .......... waited , waited , waited .watched co grow FUNDAMENTALLY and as an actual bizzness silly bugga had over 50% of his stock portfolio in said co that he had watched grow from a seed returned 20 bags on the oppies and 12 on the mother stock moral of story is ...OPEN YA EYES have a look , grow some nuts and give it a go dont have to spend a million to make one amen

[Mr J]

Quote: Question Mr J:- How long have you been trading?

[MRC & Co]

What happens if main street bought Citi or Lehman?

What about finding a great money manager with tight risk controls (i.e. hedge fund)?

My take of the thread was to find exceptional trades to create wealth, not a longer-term plan. But now I see I may have missed the point of the topic.

P.S Nice work Nun ya bogan!

[brettc4]

As highlighted previously in this thread, there have been some spectacular rises in a number of different markets for a varitey of reasons. If you had the knowledge/foresight that these markets could grow to start a large state, you would be happy to invest while keeping Risk at a level you are happy with.

In the future, we will be moving from Technology Age, to the BioTechnology Age. This will provide a variety of opportunities for businesses, as well as investors in those businesses.

Some areas I think will boom in the future are:
- Nanotechnology (both in manufacturing, technology and health)
- Space Related businesses (Tourism, Mining)

The hard part is identifying which companies (some which may not exist yet) will be able to benefit, and when. We have already seen Virgin Branch into this area, Universitites doing lots of research around it, so it will happen, I just don't know when it will really take off.

[nunthewiser]

Quote: Originally Posted by MRC & Co What happens if main street bought Citi or Lehman? What about finding a great money manager with tight risk controls (i.e. hedge fund)? My take of the thread was to find exceptional trades to create wealth, not a longer-term plan. But now I see I may have missed the point of the topic. P.S Nice work Nun ya bogan!

[nunthewiser]

could always become a rock star if all else fails

[wayneL]

Quote: Originally Posted by nunthewiser its got nothing to do with boganism but must admit we are very special its all to do with ones outlook i spose . opportunities EVERYWHERE one looks if one keeps there eyes open currently here in geraldton , just off top of head needed ....... limousine service more short term accomodation more taxis seaweed recycling/cleanups(into fertilizer) quad bike hire jet ski hire watersports galore man and thats without thinking to hard have a look around where YOU live .....opportunities abound if one can see past what they dont know and dont say .yeah yeah thats already done here ........... nothing left .blah blah blah ....... make your own idea ......