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.

Read the full case study on Lewis David Zagor by following this link.

Ask JB: Should I paper trade before investing my money?

Are practice stock trading simulators accurate? (self.investing_discussion)

submitted 20 days ago by 1x3x8x0

I'm trying to get a feel for the stock market having not previously invested. And it's been going suspiciously well, given the investments were riskier than people would be willing to take with real money, but to be up 30 euro in a matter of minutes seems unreal? Is there something I'm missing that would make them want it to be this enticing?

JB Says:

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).

Best way to invest $500 as a college student (self.investing_discussion)

submitted 28 days ago * by SmallBicep

Currently, i am using betterment for a build wealth growth account. I invested $500 into it and put in $20 a month for the robot advisor to invest 80% in stocks and 20% in bonds. Is this the best way to go for a beginning investor or what did you guys do? I am 19 year old student at Ohio State with no current job, However i will have a steady source of income since i just enlisted in the Army Reserves.

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!

Activist Investor Action Alert: ValueAct Capital Drops a 13D on Bioverativ $BIVV

http://www.barrons.com/articles/valueact-and-bioverativ-weigh-options-1489808530

Thoughts on this podcast? Disagree with me on some point? Something I missed? Leave a comment!

About the Author

Jeremy Scott Bailey is an investor, author, entrepreneur and host of the "What Works In Investing?" podcast now available on iTunes. He is founder and Chief Investment Officer of Burgeón Group, Inc. an investment advisory firm that provides portfolio management services to families and individuals.

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