Going all in?

[theferrariboy]

People talk about going all in and putting it all on the line but what if I'm not willing to do that?

When I started posting in October my Net Worth sat at around 350k... Now, it sits around $540k. I'm 25.

It has taken a lot for me to get this far and as much as people talk about putting it all on the line, I am absolutely not willing to put over half a million dollars on the line for any business really. In Jim Collins book Great by choice he talks about "firing bullets, then carefully calibrated cannonballs" meaning invest a bit in something and if it works, poor gasoline on it.

Does this make me a slowlaner for not being willing to put "everything on the line" on one idea? I would hope not.

 

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[wbrett1027]

Don't ever go all in... Comeon now, every entrepreneur saids that


Brett.

 

[Phones]

Lets say you start a venture with 10k, and suddenly you're profiting 50% of what you pour in in, every month, and it's scalable. You're 90% sure of it, and the other 10%, you could still pull most of your money out (lets say, inventory that could be sold etc).

Wouldn't you pour atleast 500k$ in?

Risk/rewards, you'd still have 40k$ left, that's more than probably 90% of the world citizens.

(congrats on being at that level at 25, really impressive. I'd measure my basic monthly expenses, around 1k$, at 6% rate, that's 200k. So you're retired, and have 340k left to "roll the dice" with-out fearing not having a roof over your head, that's massive, use it in your favour)

 

[sija1]

"So where you should invest your money? There's no single safe place to invest your money if you're looking for big returns. For a while, we thought we could safely put our money in stocks. But the Internet bubble in the early 2000's and the recession of 2008 crushed a lot of people's stock portfolios. We thought it was real estate, but housing prices dropped significantly after 2008. We thought it was gold, but even gold sometimes retreats.

That's why we invest in several places. You should never go all in with your investments, or you'll suffer what is called "Gambler's Ruin". The idea behind this is that if you keep gambling all your money against a casino that has infinite money, then you will end up losing all of your money. Even if you win in the beginning, you will lose all of your money over time, because it is a negative sum game. By this I mean that the casino always has a slightly lighter chance of winning, so you will lose money in the long run. Therefore, if the person played forever, then the chances of that person losing all of his money would be 100%."

This is from Allen Wong's book Lifehacked.

 

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[lrryjrry]

"So where you should invest your money? There's no single safe place to invest your money if you're looking for big returns. For a while, we thought we could safely put our money in stocks. But the Internet bubble in the early 2000's and the recession of 2008 crushed a lot of people's stock portfolios. We thought it was real estate, but housing prices dropped significantly after 2008. We thought it was gold, but even gold sometimes retreats.

That's why we invest in several places. You should never go all in with your investments, or you'll suffer what is called "Gambler's Ruin". The idea behind this is that if you keep gambling all your money against a casino that has infinite money, then you will end up losing all of your money. Even if you win in the beginning, you will lose all of your money over time, because it is a negative sum game. By this I mean that the casino always has a slightly lighter chance of winning, so you will lose money in the long run. Therefore, if the person played forever, then the chances of that person losing all of his money would be 100%."

This is from Allen Wong's book Lifehacked.

100% agree, you should diversify.

 

[MikeC]

IMO it's worth going all in when you believe it is.

When something is more important to you than your resources, and requires all the resources you currently have (and then some), you go all in.

 

[luniac]

The fastlane way of life is only thing worth going all in?

 

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[brickco]

I think you should go all in... with your effort.

Elon Musk isn't dipping into his personal bank account for the battery thing. At a certain point ideas and action need to support themselves. You will find that point, for most investors, is very early. It's rare that people with a large bankroll pour any significant portion of it into an idea, no matter how strongly they think it will succeed. In fact, in real estate, the common thing for developers is to put in as little money as possible.