Shares From $1m to $5.2 in 24 months

1. Run your own race
2. Define the finish line

 

Im interested to know in what companies..

There’s many that have done 500% since, but having the balls to put $5m in is a different story. APT, RAC, CXO, VUL, KGN the list goes on.

Reminds me of Alex waislitz. Guy started with $1m 20yrs ago, now has $1.5b

Investing in small
-ish cap $200m companies, taking a decent stake of 10-30% and helping drive the companies. Compounded growth of 34% per annum over that period.

 

Still on the journey but the below sums up my process well.



Use of my analytical skillset a big part. You have to cast your mind into the mindset of the people running the business. If you were in there running the company, what would you do - you use that thought process as a basis for time-travelling 3-5 years into the future and speculating on value inflection points. That raises a whole stack of questions from which you start formulating assumptions to use for working out potential value driver ( cashflow or some other value inflection point ).

Peer analysis is a very big part as it helps with the learning curve.

Once you do all this you almost know as much about the company as the people running it. That allows you to phone them up, ask questions, provide your own insights, provide constructive feedback ( the good management will thank you for it and act on it ). This process also helps you work out what are the real businesses with a vision ... and what are the lifestyle companies (buy that I mean giving the impression of doing stuff so they can raise capital to fund their salaries each year).

Speculation is an easier process for mining companies (they are all very similar conceptually), so start with them first then branch out into areas that are more complex.

Mining is simple - how much is in the ground, what does it sell for, what does it cost to get it out of the ground, how much will they sell each year, how long will it take to do the scoping and feasibility studies, how much shareholder dilution will there be. You can start by grabbing peer data on costs (CAPEX and OPEX).

The other very big part is patience and riding out high volatility in a stock price.

 

Do you have a goal number that see’s you at the finish line? Or do you think you will continue doing this for awhile?

I should say I always blindly stuck to the buy index or ETFs and stay away from individual stocks and play it safe. But thanks to yourself and a few other astute investors that Analyze these companies it’s helped create a lot more wealth.

I’d ideally like to get to around that $3m mark to be able to do what we need, and I can see providing ya select well this could come around very quickly.

 

Lol it's probably more like $1-4m if that makes you feel better. But either way it's not a huge amount. No-one on here is super rich with a net worth over $500 million. We are all just chimps having a go and trying to reach financial independence so we don't have to work

 

I'm at a stage where I'm seriously thinking of buying $500-1000k of one stock and gamble it for a 10 bagger. It seems like easy money compared to boring B&H property which takes decades

 

The thrill of the chase - I think after the success I have had I will always have a soft-spot for small caps, even though the rational me says dividend stocks.

Retirement is the ultimate goal. Initially it was equity to do a development.

Current mining holdings will remain a big part of my portfolio as over 10 years they have significant potential (dividend income potential).

If management keep doing what they are doing, a good chance RAC holding will be taken out of my hands by a big pharma. History and track record and potential of Bisantrene is the edge they have.

Aim is to keep most of my portfolio invested but at some point will eke out some funds for retirement.

 

The $7m was Signature Bank. He has always liked it and at around $118 we had some but after a maybe a year of $110-120 we went off to chase others. With everyone diving into Tech stocks money flowed out of it and it slowly dropped, at around under $90 he moved back in and bought up and then around 3 months later it got hot and overshot and he left at around $180+. Still running but not on sound terms anymore. He has done very well on his AMD, where it all started, picked the bottom of QANTAS and got Zip when it was near bottom last year. Also various tech and gaming stocks. Has more shares now, previously a lot of CFD's. He researches the people behind the companies, the products their market and tries to work out who is trying to "work" the system, short sellers driving down stocks, etc so he does not become collateral damage. He believed as do I, that right now is a one in maybe 70 year period of madness and normalcy will return. He has said at $5M he was happy then to just go to a managed fund and take his 3-8% each year, but obviously this has changed and I think he now really enjoys the challenge. We sat watching the Superbowl, me on the lounge and him behind me at his desk, watching the markets. That night over pizza he casually commented "made $2.2M today. He is now quite diversified so his mother and I sleep better, but no one who knows us, knows what has happened. Money changes people and relationships.

Saw him talking to a girl in the gym who blew him off. I felt like walking up to her after and saying. "that will be the single biggest mistake in your life".

Future plans are buying his cul-de-sac so he can control who his neighbours are and an apartment over looking the harbour and or a penthouse in Surfers. (his medical condition requires higher humidity - he feels it at levels we cannot).

We all drive the same cars, he avoids any sign of wealth (hence the girl issue - maybe that will change one day) and is very content with how things have turned out.

Next check in will probably be around June, I hope he can still stay up where he is, but up or down I will check back.

take care.

 

With the wealth that he's now accumulated, I would try to remain as incognito as possible. No need to look down and out but I would def not want to look laced. Do you want to attract someone who loves what you have or loves who you are?

 

Thanks for the details Terry, its cool to see someone actually doing it.

You read story's around the world of some kid becoming a millionare off 1 stock or finding 1000 bitcoins he forgot about etc but to hear of it being implemented on some of our common ASX shares is close to home.

I had to laugh at "buying his Cul-de-sac" haha You cant choose your neighbors... so just buy them all. What a boss move.

Do you know what his strategy is in regards to his trades? as in is he going into a particular stock with the intention of exiting after 40% or is he looking to make many smaller 5% swings and enter/exit often? and spread across a few stocks or does he go heavy in a couple

I imagine liquidity in a lot of small caps would be an issue when your buys/sells are in the millions so I'm interested to know.

Apologies for all the questions.

 

I like the cul-de-sac move too. We’ve got a couple of houses in our street I’d love to buy, demolish and rebuild. They’re spoiling it

Our accountant once told us you can’t always see who’s “rich”.

I think we probably all know some people who to all appearances are loaded, when in reality they’re just loaded with debt!

Good luck to him!

 

Yeah he is very specific. Each investment is weighed upon the specifics. Some like Signature were to be held until far market value returned. Others like AMD were medium, long term due to product, manufacture limitations, problems with competition and even stuff like our new work from home normal. (He has sold much of it down now as it is nearly 4 years into the growth phase and fast growth is now gone.) During that he was always re-evaluating, due to the above. Other like QANTAS he saw a medium rebound, and some others depend on further listings etc, so in some case if it rebounds or grows faster then predicted he sells out, but not until he believes it is hitting fair market value. He has so much data on so many companies (it is his job and he treats it as such) , that he can move quickly when things start to change. I have tried to do that sort of thing in my life, but if it is not immediately relevant I find it hard to plow on. Maybe when I was younger.

 

AMD hitting new highs. Hope you still have some. This AI boom might have some legs so who knows where it will end up.



Cheers,
Oracle