shaitand
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- Aug 15, 2019
- 11
- 17
@shaitand .... now write a similar post showing the good things he has done and things we could learn from this ..... balance ......
Fair enough, it just wasn't the discussion at the point I hopped on. Even with the nitpicks, he has reduced himself to a very low starting point which means he is showing a path to everyone. He is successively scaling up his seed into higher dollar returns which is good. He needs to grow capital.
I disagree with the lottery assessment. Everything carries risk, he is mitigating, managing, and calculating risk. The items he was trying to scavenge can be found where he was looking, are valued highly because they are used for high dollar operations not because they are uncommon. Expanding his time to search was more like a raffle where he is stuffing the ballot box with many many tickets.
The trinket sales and other small efforts were just a way to extend his survival time to let him keep stuffing the box until he won and in relative terms the reward was high enough to justify it. His actual margin was about 400% which is repeatable, the margin on the trinkets was a one off with a 400% return. That took him to a higher tier of capital growth with cars. The margin is 200-400% on his car deals. Noticing a pattern? He is scaling his capital growth.
Even the business itself would normally be another way to grow the capital, you build it up to be valued high and then sell it. A business more or less gets valued on a multiple of years revenue projection so you get someone who will pay future profits now and take the future revenue alongside dumping all the risk. Take the capital return and start a few of them and do the same thing again.
At that point it depends on your goal. Your capital seed is large enough for passive traditional investments with lower risk/lower reward. There is a little secret, when you start spreading across many investments you are reducing the impact of a failure but increasing the probability that a failure will occur. Mathematically, that is going to be very important to remember if you want to keep your money at this stage.
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