Do You Have to be Smart to be Rich

Discussion in 'Investor Psychology & Mindset' started by MTR, 30th Aug, 2015.

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  1. MTR

    MTR Well-Known Member

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    Wow, am curious, so this got you ahead of the crowd, ie amazing highly paid job?
     
  2. MTR

    MTR Well-Known Member

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    sounds like my brother
     
  3. mrdobalina

    mrdobalina Well-Known Member

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    there's more to life than working
    I think if I had different guidance when I was growing up, I would have made different choices. Would probably be running a hedge fund or similar now and be much much wealthier. However, I wouldn't have the beautiful family I have now... So I would choose what I have now any day of the week.
     
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  4. Sackie

    Sackie Well-Known Member

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    Agree with you mate re family. I honestly think the greatest kind of wealth is the health and love of ones family. Nothing comes close. I know plenty of people who are super wealthy financially but in a miserable family situation. Whats the point. Cant take it to the grave with you.

    Well done mate.
     
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  5. MTR

    MTR Well-Known Member

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    'What is it they say "the best things in life are for free", something like that.

    But please can I buy one of those little porsche' this year, I think I deserve it, that's what I keep telling myself:p
     
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  6. Shady

    Shady Well-Known Member

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    I have many clients that have huge property portfolios and most are no smarter than the next guy/gal (and less than in a couple of instances).
    A couple I know who are now retired but were in what most would call dead end government jobs all their lives, bought their first property 40 years ago and didn't stop buying and have never sold. Their portfolio is in the tens of millions of dollars now.
    They are lovely lovely salt of the earth people who still live in a house they bought almost 30 years ago in one of Western Sydney's dodgiest suburbs. If you passed them in the street you would think they are dole bludgers and look like they dont have 2 cents between them.
     
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  7. MTR

    MTR Well-Known Member

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    Comes back to what I said from the beginning, you don't have to be the sharpest tool in the shed

    All successful investors I have met have something in common, they are driven, persistent - by this I mean they don't give up, obstacles thrown in their way does not deter them from reaching their end goal.

    If you look at the current low ball investors have to deal with - APRA, its a big one, those who don't give up and are persistent with solving this issue will reach their goals, this is just one example, its how investors deal with the low balls that really matters IMO. From my experience there will always obstacles, but if you can overcome/resolve these you have a very good chance of becoming rich, if this is your goal.

    MTR:)
     
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  8. Omnidragon

    Omnidragon Well-Known Member

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    Being smart helps a lot in any thing. But most things start with having a go. You miss all the shots you don't take, no matter how smart you are.
     
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  9. Sonamic

    Sonamic Well-Known Member

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    I think the APRA changes will stop a lot of new "sheep" investors coming in as it will be "too hard". And that is the point I suppose. It is harder no doubt, but there are ways. In the long run it just means less Forclosure Sales for us to swoop on. :p But will save many newbs from heartache when Rates finally do go up a couple of percent and affordability of life becomes the greatest sacrifice. That's where the "smart" comes in to have a plan for that course of events. Prevention is the best cure. Take that as you will.
     
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  10. Brian84

    Brian84 Well-Known Member

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    I like that quote. You miss all the shots you don't take.
     
  11. sanj

    sanj Well-Known Member Premium Member

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    Excellent comment. Was just discussing this qith a group of friends on the weekend. One is 25 and over the years has always been interested in property and also had a number of business ideas. He has never tried any of them as he has a decent paying full time job, a degree etc and like a lot of indians comes from a pretty risk averse family.

    I told him at his age, living with parents so no expenses etc and with not all that much to lose he wont have a better time to give it a go.

    Plus hes got some close friends and cousins who have a fair bit of business experience who would be happy to help him. Just goes to show how daunting the fear of failure/the unknown can be for some.
     
  12. JDP1

    JDP1 Well-Known Member

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    true- but the opposite is also true. Being smart, or wise, generally means you know what shot to take.Cannot take every shot- time, money, etcc are all limited.
     
  13. Brian84

    Brian84 Well-Known Member

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    When I first started my business is was nervous and scared but I had a couple of quotes I used to run through my head so I didn't back out.

    - with risk comes reward
    - throwing yourself in the deep end is the best way to learn how to swim
    - when opportunity knocks, open the door.

    Best decision I made.
     
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  14. MTR

    MTR Well-Known Member

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    Regardless of your strategy, I am now thinking the smart investors have probably already taken some money off the table because clearly markets are now turning, and servicing debt is going to be far more difficult than it was 3 years ago.

    There is nothing wrong with taking money off the table to improve servicing loans, reduce debt, reduce risk and to move forward at a faster pace. Once prices start to fall back and this is what has happened and is happening now/today then it is probably too late.

    MTR:)
     
    Last edited: 2nd Nov, 2015
  15. Perthguy

    Perthguy Well-Known Member

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    Great story on this topic @MTR. I saw this young entrepreneur interviewed on the news last week. Awesome story! She didn't come across as particularly "smart" but her companies are valued at $231 million, so she definitely has something that sets her apart.

    The short version is that she found a gap in the market and decided to do something about it. In the tv story, they interviewed the founder of Boost Juice, Janine Allis (I think?). Anyway, whoever it was explained basically there are 2 types of people: complainers and solvers. When a complainer finds a problem they whinge and blame. When a solver finds a problem they set out to do something about it.

    What motviates a 19 year old to drop out of uni and start a company? Melanie admits that part of it was naivety. But mostly I think confidence and a belief she could make it work. She really backed herself and it paid off big time. I think having a good idea was important to make this work but people have good ideas all the time and they don't amount to anything. Part of this was taking a risk. Dropping out of uni at 19 and starting a company is risky. It paid off though. I guess if it didn't, we would have never heard about it.

    This is the part of the story that I like:

    'And I just had this belief that in the future it wasn't going to be as complex to do design work.'
    In 2007, Ms Perkins came up with the idea to create easy-to-use graphic design software which allows schools and students to make their own yearbooks.
    She had no business or marketing experience but Ms Perkins says her inexperience gave her confidence that it wouldn't be too difficult to start a company from scratch.
    'My boyfriend became my co-founder and we started in my mum's living room,' she said.
    'Our naivety in some ways helped us… If I knew at the time all the things I didn't know it would have been intimating.'​

    It's an amazing story and well worth the read. Inspirational! :)

    http://www.news.com.au/finance/busi...rt-up-wunderkind/story-fnda1bsz-1227590939136

    http://www.dailymail.co.uk/news/art...ves-secret-success-NOT-having-experience.html

    https://www.linkedin.com/pulse/5-incredible-entrepreneurship-tips-from-melanie-perkins-brasher
     
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  16. MTR

    MTR Well-Known Member

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    Perkins is also on the show Shark Tank I think?
    great story.
     
  17. Soul

    Soul Well-Known Member

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    well said mate
     

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