WWII 051: Lewis David Zagor the $18,000,000 Man, Paper Trading versus Real Money, Investing in College,
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Main Topic: Lewis David Zagor the $18,000,000 Man
Here is yet another story of the folks I call the “stealthy wealthy”. These are people who amass small fortunes in secret and others only find out after the death of the stealthy wealthy. They often live completely normal lives, living in average size homes, driving ordinary cards, and often continue to work, often at their own business. A significant number of millionaires hide their wealth from their friends and family, just like Ronald Read, Jack Gsantner, and the millionaire recluse twins.
Today’s episode is about Lewis David Zagor, the eighteen million dollar man who left behind an apartment filled with expensive goods, and a pile of cash, stocks, and mutual fund holdings. These are some of my favorite episodes to record because they show that even ordinary people can amass small fortunes by getting just a few things right.
Ask JB: Should I paper trade before investing my money?
submitted 20 days ago by 1x3x8x0
o The reason paper trading / simulated trading does absolutely no good is that you are not exposed to the emotional impact of seeing real money invested in something that goes up or down every day.
o If you talk to just about anyone about paper trading, they will all be surprised at how well they are doing, just like in any fantasy.
o Instead of simulating anything, here’s a challenge for you. Attempt to calculate how much a stock of your choice is worth. What would you pay for it if you walked into that company’s board room with an offer to buy the entire thing. In the process of answering that question (which may take a while as there is a significant learning curve to climb), you will have learned volumes about what really drives wealth creation in the stock market (i.e. the underlying businesses, not the stock price).
submitted 28 days ago * by SmallBicep
JB Says: Let’s dissect this question a little bit.
o You are 19 and in college. How are you paying your tuition, living expenses and books, etc.? Are your expenses going to go up over the next few years?
o You have no job, but just enlisted in the Army Reserves. First, thank you for serving. I also served in the Army National Guard as an officer and it changed my life for the better. In the guard, you will have to buy things like uniforms, boots, other military related items, not everything is going to be issued to you.
You have no job lined up yet. What makes you think you will never need the $500? You do not fit the profile of someone I believe is in financial shape to invest. Here’s what I suggest for that profile (episode 6):· Stable income - FAIL
· Living beneath your means
· Generating investible cash
· No credit card debt
· No loan shark debt
· No major upcoming expenses such as college tuition, medical costs etc. - FAIL
· Have health insurance, car insurance, home insurance etc.
· At least 12 months in emergency cash sitting in a bank account. FAIL (maybe)
· 401(k) fully funded at least to the match, and preferably up to the max
· Figured out how to save money by buying staples in bulk (i.e. Tobias book)
· Prepared for a long-term commitment to what you buy
Do you have a burning question on investing you would like answered? Click the button below to send it to me and I will answer it on the podcast!