Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    



Future Investment

Reply to topic
Money Talk > Retirement Planning

Author Thread
kellen2811
Member


Cash: $ 5.20

Posts: 24
Joined: 06 Aug 2009

Future Investment  Reply with quote  

I just have a few questions for everyone kind of a open discussion.

How did you amass your wealth? 401k retirement, stock portfolio, luck?

How do you see the future of investment as a long term and short term?

Do you believe in the devaluation of the dollar? If so where do you see it headed? Also I would like to expand on this, it seems as if this will happen, if it does how long for recovery?

Kellen
Post Sun Aug 28, 2011 2:08 pm
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

I have a few thoughts I'd like to post in response to Kellen's question about the dollar:

There's a big concern about hyper-inflation among groups of some political and economic persuasions. The example of post-WWI Germany is often cited. My opinion is that this is not a very likely scenario today because now the whole world is engaged in competitive currency devaluation. In post-WWI Germany, the Germans intentionally inflated their currency because they had been saddled with enormous war-reparations burdens by the Allied victors. Their intent was to pay off those reparations with cheap money. The other countries were NOT inflating their currencies. Germany's little game got away from them.

Money (currency) is just a unit of measure; a tool of convenience; a way to exchange something for something else. It has no value in and of itself. Its value is only in what it can be exchanged for. And today, exchange is global. If one nation creates more units of exchange, what each unit of can be exchanged for from another country decreases. But since that has to first be converted into the other country's exchange units, if that other country is also creating more of their own units at the same rate as the first country, then the ratio remains constant. That's sort of what's going on today.

I think eventually money itself will disappear, but that's a topic for another time and another thread. Wink

~Tim~
Post Sun Aug 28, 2011 5:46 pm
 View user's profile Send private message
payment proof
Senior Member


Cash: $ 408.30

Posts: 2032
Joined: 16 Jan 2011

 Reply with quote  

I think inflation is always going to be present and the goal is to find investments that offer a higher percent of return than the percent inflation increases by.

For example, if your investment return is 5% and inflation is 2%, you net 3 %. Of course, that is before taxes.

See Proof. You can make free money online.
Post Wed Aug 31, 2011 1:47 am
 View user's profile Send private message Visit poster's website
mrppi
New Member


Cash: $ 1.40

Posts: 7
Joined: 18 Aug 2011
Location: UK
 Reply with quote  

As long as you consider the rate of inflation in every business venture or money making scheme it will all be relevant as the market runs in conjunction with it
Post Thu Sep 01, 2011 8:50 pm
 View user's profile Send private message
globaldoc2001
Senior Member


Cash: $ 75.25

Posts: 366
Joined: 30 Aug 2011

 Reply with quote  

It is so difficult to say, but yes, inflation is here to stay, and we cannot do anything about it. I think I can see a poorer state of situation in the near future, but a poorer state where we can easily go through and come out surviving.
Post Fri Sep 02, 2011 6:14 am
 View user's profile Send private message
ISS
New Poster


Cash: $ 0.40

Posts: 2
Joined: 16 Sep 2011
Location: North America
 Reply with quote  

I am still trying to amass wealth so I can wait to see some more answers on this one as well. Many people have businesses or inherited the money a lot of people are really good savers and only purchase when they are getting real good deals.
Post Fri Sep 16, 2011 3:22 pm
 View user's profile Send private message
RichS
Full Member


Cash: $ 19.10

Posts: 95
Joined: 02 Feb 2011
Location: Seattle
 Reply with quote  

You don't amass wealth, whatever that means, by working for someone else. There are a few exceptions but the true fortunes are made by those people who started a business IE: Bill Gates, Steven Jobs etc. Very Happy
Post Tue Sep 20, 2011 9:11 pm
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

quote:
Originally posted by RichS
but the true fortunes are made by those people who started a business IE: Bill Gates, Steven Jobs etc. Very Happy

And if you buy a little piece of the business ...

... as ANYONE can do ...

... by buying the company's stock ...

... then you just go along for the ride. Very Happy



Personal anecdote:

I remember the first time I ever heard of Berkshire Hathaway. At that time the shares were selling for about $6,000 per share ... that's the A shares. I was astounded and thought to myself: why would anyone ever pay that much for a single share of stock?

Today the A shares are over $104,000 per share, and they've been as high as almost $150,000. Now, if I had bought only one share back then, what would my return on that investment be? Shocked

~Tim~
Post Tue Sep 20, 2011 10:53 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 751.85

Posts: 3656
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
You don't amass wealth, whatever that means, by working for someone else.


Depends on your definition of wealth. True, no billions. But many people become multi-millionaires by working 'for the man". IMO, it is a dis-service to young people to suggest that they cannot become wealthy on wages - usually it is a more reliable path to wealth than starting a business. About 15% of business start-ups succeed, the shattered dreams of the other 85% are a mix of bk's, credit card debt, etc.
Post Wed Sep 21, 2011 12:04 am
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 751.85

Posts: 3656
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
Today the A shares are over $104,000 per share, and they've been as high as almost $150,000. Now, if I had bought only one share back then, what would my return on that investment be?


Coaster, I'm not sure of the start date for BRK.A, I used 1/1990. $6000 to $104,000 from 1990 to now = 9.6%/yr.

I checked the SP500 Index from 1/1990 to now, it's 8.79%/yr.
Post Wed Sep 21, 2011 1:35 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

quote:
Originally posted by oldguy
Coaster, I'm not sure of the start date for BRK.A, I used 1/1990. .

I don't remember. You know how things seem to be not as long ago as they really were. Morningstar's chart does only go back to 1990, so you may be right, though. So Buffett did outdo the S&P by a little bit, then, eh?

~Tim~
Post Wed Sep 21, 2011 6:17 am
 View user's profile Send private message
globaldoc2001
Senior Member


Cash: $ 75.25

Posts: 366
Joined: 30 Aug 2011

 Reply with quote  

This may sound a bit funny, but I actually had a friend who really bought shares of stocks when he was so much younger. He said it was for long term investment. True enough, it paid off.

Business Tax Filing
Debt Consolidation Companies
Post Wed Sep 21, 2011 8:44 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

The range on BRK.A from May 1, 1990 (First date of price data) to EOY is roughly $6200 - $7300, and my memory (such as that is) tells me the price was around $6400 when I noticed it. From there the chart shows a steady climb for the next nine years. So, I guess 1990 it was.

~Tim~
Post Wed Sep 21, 2011 3:34 pm
 View user's profile Send private message
globaldoc2001
Senior Member


Cash: $ 75.25

Posts: 366
Joined: 30 Aug 2011

 Reply with quote  

I still see the real estate to be the most lucrative and safest future investment. The population is growing, but the land area is not.

Business Tax Filing
Debt Consolidation Companies
Post Thu Sep 22, 2011 7:57 am
 View user's profile Send private message
MoneyMinded
Member


Cash: $ 2.40

Posts: 12
Joined: 27 Jul 2011
Location: Indonesia
 Reply with quote  

That reminds me of a friend of mine that bought netflix when they first went IPO and sold it at it's peak, he did very well to say the least.
Post Thu Sep 22, 2011 5:09 pm
 View user's profile Send private message

Goto page 1, 2  Next
Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      


Money Talk © 2003-2021