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Yes many business owners fail on their first, second,third or even more businesses this is pretty typical..but when they find something that works it can pay off HUGE.
James Alutcher is a good example of someone that started a ton of businesses that were failures..but is successful today.
This is an AMA (Ask me anything ) with him on Reddit https://www.reddit.com/r/IAmA/commen...ompanies_17_of
He had been worth many millions and at one point was totally broke according to him..with barely $100 in his bank account. Now he appears to be doing quite well.
There is no doubt that if you hit on the right business you can hit it big. But again your entire premise here is the stock market appears to be too risky for you. As I said investing in a small business is much much more risky. Just because you can touch or control things more that does not make them less risky.
You are right, individual stocks do go bankrupt and are worthless. But the odds of that are much much lower than the odds that your coffee shop fails. Finally there are many safer ways to invest in the market than buying individual stocks. Mutual funds are the most popular and they are the most popular for a reason, you can spread out the risk while still realizing the gains.
As for real estate again it's not the safe haven you maintain. Home values go up, go down, and stay flat just as stocks do. When you factor in the taxes, maintenance, tennant etc it's just not that safe.
Last edited by DaveinMtAiry; 08-24-2015 at 02:58 PM..
At a time like this, I'm glad I'm invested in real estate. I've been trying to sell a rental that yields 3%, but I'm going to take it off the market. Can't beat the peace of mind.
There is no doubt that if you hit on the right business you can hit it big. But again your entire premise here is the stock market appears to be too risky for you. As I said investing in a small business is much much more risky. Just because you can touch or control things more that does not make them less risky.
You are right, individual stocks do go bankrupt and are worthless. But the odds of that are much much lower than the odds that your coffee shop fails. Finally there are many safer ways to invest in the market than buying individual stocks. Mutual funds are the most popular and they are the most popular for a reason, you can spread out the risk while still realizing the gains.
As for real estate again it's not the safe haven you maintain. Home values go up, go down, and stay flat just as stocks do. When you factor in the taxes, maintenance, tennant etc it's just not that safe.
True there are taxes, maintenance and other expenses which is why it's important to buy property that cash flows.
I'm not sure why taxes and maintenance make investing 'not safe' or risky? Sure if you don't factor these costs in prior to investing than you can lose money..but if you factor them in there isn't much risk.
Rents don't usually go down. True that property prices fluctuate ...but even if property value goes down it's likely rents will remain the same.
If you look at the crash there were a lot of houses in places like Phoenix or Vegas that went all the way down to $30,000 or less..but the market rents didn't go down too much.
Many people that are buy and hold and investing for cash flow just view appreciation as 'gravy' on top of their cash flow.
There is no doubt that if you hit on the right business you can hit it big. But again your entire premise here is the stock market appears to be too risky for you. As I said investing in a small business is much much more risky. Just because you can touch or control things more that does not make them less risky.
Have you ever operated a business? You are 100% wrong and I have already detailed why you are wrong in the past. Your respond of "well, with stocks you are using diversification across many blue chip companies" is completely off the mark.
You have absolutely no control over the appreciation of your stock price, that's totally based on what other traders in the secondary market are going to buy the stocks from you.
Your business is your business, you have 100% control over the direction, markets, products, etc. You also don't wake up and see massive losses in your business overnight and have to "buy/hold" for them to come back.
The risk of Stocks are extremely downplayed by people like you, while the risks of other investments in real estate, businesses, etc. are extremely OVER played by people like you....as all you are trying to push is a narrative.
The FACT is that you have 0% control over the returns on your Stock investments. 0%. When it comes to a business you own, it's all on YOU. Your management, your vision, your direction, your modifications, your adjustments, your networks, your resources, your capital levels, your knowledge levels....YOU.
Plus if nobody actually started a business, grew it and eventually went Public, you secondary market traders wouldn't have any paper to trade around
Your mutual fund manager doesn't call you at 3 AM to fix a toilet. You don't buy an index fund and later discover your house has hidden dry rot, termites, and have annoying tenants.
No, you buy an Index Fund and wake up and over three days see the market has dropped by almost 1,500 points. In other words, what took years to build up in terms of returns, you just lost in less than a week.
it isn't lost , it is a variable amount like working on commission is . i had great years and lean years but over all i made quite a bit of money being a commissioned sales engineer over my career .
that money may be down at the moment but may also double or triple over longer periods of years just as it always has done in the past . . in my own case with funds 20x over my investing life time .
can i even member where i was in 1987 balance wise when stocks plunged 26% in one day or in 2008 ? nope , couldn't even tell you at this point and who cares . .
What makes investing less risky is investing in things you understand. You "buy/hold forever" and "diversify like hell" Stock Market investors have no damn CLUE what you are doing. That's why you have to buy/hold forever using some type of magical/mythical powers to predict that just by buying and holding you will end up "ok" once the roller coaster stops.
A real Stock Market guru or investor, doesn't buy and hold forever. He knows how to value companies, he buys when they are at a discount, sells when they reach the height, and repeats that process over and over. That's how you make real money in the Stock Market. What the hell are you buying and holding forever for when the stock price range is likely to stay the same over the next 20 years? If a company has a stock price range of low point $25 and high point $40, do you really think it's a chance it will ever go higher than $40 going forward? If so, why? Wait a minute, you can't answer the question of WHY because you aren't really doing value investing, you are doing the lazy, uneducated, average Joe way of investing which is buy/hold and hope something works out lol.
it isn't lost , it is a variable amount like working on commission is . i had great years and lean years but over all i made quite a bit of money being a commissioned sales engineer over my career .
that mamoney may be down at the moment but may also double or triple over longer periods of years just as it always has done in the past . . in my own case with funds 20x over my investing life time .
Even your "boy" Low Expectations said that a Paper Loss is a Paper Loss, and to categorize it as anything else is insane. Your "boy" even said that , apparently you haven't been training him good enough in the private messages that you have with him to not say things that goes against what his master (MathJak) wants him to say lol.
Looks like The MathJak Team is crumbling faster than the Markets!
there is no question that is your net worth at any given time whether you sell or not . that is not what i am saying .
where things move daily is irrelevant . if your time frame is 20-40 years until retirement forget about the short term moves . at the end of the day you will likly be more than happy where your end up through all the short term crap
Even your "boy" Low Expectations said that a Paper Loss is a Paper Loss, and to categorize it as anything else is insane. Your "boy" even said that , apparently you haven't been training him good enough in the private messages that you have with him to not say things that goes against what his master (MathJak) wants him to say lol.
Looks like The MathJak Team is crumbling faster than the Markets!
i don't have any private conversations at all with him and in fact we bump heads as often as we agree
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